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1 | | AN ACT concerning regulation.
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2 | | Be it enacted by the People of the State of Illinois, |
3 | | represented in the General Assembly:
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4 | | ARTICLE 1. |
5 | | SHORT TITLE; FINDINGS; DEFINITIONS |
6 | | Section 1-1. Short title. This Act may be cited as the |
7 | | Cannabis Regulation and Tax Act. |
8 | | Section 1-5. Findings. |
9 | | (a) In the interest of allowing law enforcement to focus on |
10 | | violent and property crimes, generating revenue for education, |
11 | | substance abuse prevention and treatment, freeing public |
12 | | resources to invest in communities and other public purposes, |
13 | | and individual freedom, the General Assembly finds and declares |
14 | | that the use of cannabis should be legal for persons 21 years |
15 | | of age or older and should be taxed in a manner similar to |
16 | | alcohol. |
17 | | (b) In the interest of the health and public safety of the |
18 | | residents of Illinois, the General Assembly further finds and |
19 | | declares that cannabis should be regulated in a manner similar |
20 | | to alcohol so that: |
21 | | (1) persons will have to show proof of age before |
22 | | purchasing cannabis; |
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1 | | (2) selling, distributing, or transferring cannabis to |
2 | | minors and other persons under 21 years of age shall remain |
3 | | illegal; |
4 | | (3) driving under the influence of cannabis shall |
5 | | remain illegal; |
6 | | (4) legitimate, taxpaying business people, and not |
7 | | criminal actors, will conduct sales of cannabis; |
8 | | (5) cannabis sold in this State will be tested, |
9 | | labeled, and subject to additional regulation to ensure |
10 | | that purchasers are informed and protected; and |
11 | | (6) purchasers will be informed of any known health |
12 | | risks associated with the use of cannabis, as concluded by |
13 | | evidence-based, peer reviewed research. |
14 | | (c) The General Assembly further finds and declares that it |
15 | | is necessary to ensure consistency and fairness in the |
16 | | application of this Act throughout the State and that, |
17 | | therefore, the matters addressed by this Act are, except as |
18 | | specified in this Act, matters of statewide concern. |
19 | | (d) The General Assembly further finds and declares that |
20 | | this Act shall not diminish the State's duties and commitment |
21 | | to seriously ill patients registered under the Compassionate |
22 | | Use of Medical Cannabis Pilot Program Act, nor alter the |
23 | | protections granted to them. |
24 | | (e) The General Assembly supports and encourages labor |
25 | | neutrality in the cannabis industry and further finds and |
26 | | declares that employee workplace safety shall not be diminished |
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1 | | and employer workplace policies shall be interpreted broadly to |
2 | | protect employee safety. |
3 | | Section 1-10. Definitions. In this Act: |
4 | | "Adult Use Cultivation Center License" means a license |
5 | | issued by the Department of Agriculture that permits a person |
6 | | to act as a cultivation center under this Act and any |
7 | | administrative rule made in furtherance of this Act. |
8 | | "Adult Use Dispensing Organization License" means a |
9 | | license issued by the Department of Financial and Professional |
10 | | Regulation that permits a person to act as a dispensing |
11 | | organization under this Act and any administrative rule made in |
12 | | furtherance of this Act. |
13 | | "Advertise" means to engage in promotional activities |
14 | | including, but not limited to: newspaper, radio, Internet and |
15 | | electronic media, and television advertising; the distribution |
16 | | of fliers and circulars; and the display of window and interior |
17 | | signs. |
18 | | "BLS Region" means a region in Illinois used by the United |
19 | | States Bureau of Labor Statistics to gather and categorize |
20 | | certain employment and wage data. The 17 such regions in |
21 | | Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion, |
22 | | Champaign-Urbana, Chicago-Naperville-Elgin, Danville, |
23 | | Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria, |
24 | | Rockford, St. Louis, Springfield, Northwest Illinois |
25 | | nonmetropolitan area, West Central Illinois nonmetropolitan |
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1 | | area, East Central Illinois nonmetropolitan area, and South |
2 | | Illinois nonmetropolitan area. |
3 | | "Cannabis" means marijuana, hashish, and other substances |
4 | | that are identified as including any parts of the plant |
5 | | Cannabis sativa and including derivatives or subspecies, such |
6 | | as indica, of all strains of cannabis, whether growing or not; |
7 | | the seeds thereof, the resin extracted from any part of the |
8 | | plant; and any compound, manufacture, salt, derivative, |
9 | | mixture, or preparation of the plant, its seeds, or resin, |
10 | | including tetrahydrocannabinol (THC) and all other naturally |
11 | | produced cannabinol derivatives, whether produced directly or |
12 | | indirectly by extraction; however, "cannabis" does not include |
13 | | the mature stalks of the plant, fiber produced from the stalks, |
14 | | oil or cake made from the seeds of the plant, any other |
15 | | compound, manufacture, salt, derivative, mixture, or |
16 | | preparation of the mature stalks (except the resin extracted |
17 | | from it), fiber, oil or cake, or the sterilized seed of the |
18 | | plant that is incapable of germination. "Cannabis" does not |
19 | | include industrial hemp as defined and authorized under the |
20 | | Industrial Hemp Act. "Cannabis" also means concentrate and |
21 | | cannabis-infused products. |
22 | | "Cannabis business establishment" means a cultivation |
23 | | center, craft grower, processing organization, dispensing |
24 | | organization, or transporting organization. |
25 | | "Cannabis concentrate" means a product derived from |
26 | | cannabis that is produced by extracting cannabinoids from the |
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1 | | plant through the use of propylene glycol, glycerin, butter, |
2 | | olive oil or other typical cooking fats; water, ice, or dry |
3 | | ice; or butane, propane, CO 2 , ethanol, or isopropanol. The use |
4 | | of any other solvent is expressly prohibited unless and until |
5 | | it is approved by the Department of Agriculture. |
6 | | "Cannabis container" means a sealed, traceable, container, |
7 | | or package used for the purpose of containment of cannabis or |
8 | | cannabis-infused product during transportation. |
9 | | "Cannabis flower" means marijuana, hashish, and other |
10 | | substances that are identified as including any parts of the |
11 | | plant Cannabis sativa and including derivatives or subspecies, |
12 | | such as indica, of all strains of cannabis; including raw kief, |
13 | | leaves, and buds, but not resin that has been extracted from |
14 | | any part of such plant; nor any compound, manufacture, salt, |
15 | | derivative, mixture, or preparation of such plant, its seeds, |
16 | | or resin. |
17 | | "Cannabis-infused product" means a beverage, food, oil, |
18 | | ointment, tincture, topical formulation, or another product |
19 | | containing cannabis that is not intended to be smoked. |
20 | | "Cannabis plant monitoring system" or "plant monitoring |
21 | | system" means a system that includes, but is not limited to, |
22 | | testing and data collection established and maintained by the |
23 | | cultivation center, craft grower, or processing organization |
24 | | and that is available to the Department of Revenue, the |
25 | | Department of Agriculture, the Department of Financial and |
26 | | Professional Regulation, and the Department of State Police for |
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1 | | the purposes of documenting each cannabis plant and monitoring |
2 | | plant development throughout the life cycle of a cannabis plant |
3 | | cultivated for the intended use by a customer from seed |
4 | | planting to final packaging. |
5 | | "Cannabis testing facility" means an entity registered by |
6 | | the Department of Agriculture to test cannabis for potency and |
7 | | contaminants. |
8 | | "Clone" means a plant section from a female cannabis plant |
9 | | not yet rootbound, growing in a water solution or other |
10 | | propagation matrix, that is capable of developing into a new |
11 | | plant. |
12 | | "Community College Cannabis Vocational Training Pilot |
13 | | Program faculty participant" means a person who is 21 years of |
14 | | age or older, licensed by the Department of Agriculture, and is |
15 | | employed or contracted by an Illinois community college to |
16 | | provide student instruction using cannabis plants at an |
17 | | Illinois Community College. |
18 | | "Community College Cannabis Vocational Training Pilot |
19 | | Program faculty participant Agent Identification Card" means a |
20 | | document issued by the Department of Agriculture that |
21 | | identifies a person as Community College Cannabis Vocational |
22 | | Training Pilot Program faculty participant. |
23 | | "Conditional Adult Use Dispensing Organization License" |
24 | | means a license awarded to top-scoring applicants for an Adult |
25 | | Use Dispensing Organization License that reserves the right to |
26 | | an adult use dispensing organization license if the applicant |
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1 | | meets certain conditions described in this Act, but does not |
2 | | entitle the recipient to begin purchasing or selling cannabis |
3 | | or cannabis-infused products. |
4 | | "Conditional Adult Use Cultivation Center License" means a |
5 | | license awarded to top-scoring applicants for an Adult Use |
6 | | Cultivation Center License that reserves the right to an Adult |
7 | | Use Cultivation Center License if the applicant meets certain |
8 | | conditions as determined by the Department of Agriculture by |
9 | | rule, but does not entitle the recipient to begin growing, |
10 | | processing, or selling cannabis or cannabis-infused products. |
11 | | "Craft grower" means a facility operated by an organization |
12 | | or business that is licensed by the Department of Agriculture |
13 | | to cultivate, dry, cure, and package cannabis and perform other |
14 | | necessary activities to make cannabis available for sale at a |
15 | | dispensing organization or use at a processing organization. A |
16 | | craft grower may contain up to 5,000 square feet of canopy |
17 | | space on its premises for plants in the flowering state. The |
18 | | Department of Agriculture may authorize an increase or decrease |
19 | | of flowering stage cultivation space in increments of 3,000 |
20 | | square feet by rule based on market need, craft grower |
21 | | capacity, and the licensee's history of compliance or |
22 | | noncompliance, with a maximum space of 14,000 square feet for |
23 | | cultivating plants in the flowering stage, which must be |
24 | | cultivated in all stages of growth in an enclosed and secure |
25 | | area. A craft grower may share premises with a processing |
26 | | organization or a dispensing organization, or both, provided |
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1 | | each licensee stores currency and cannabis or cannabis-infused |
2 | | products in a separate secured vault to which the other |
3 | | licensee does not have access or all licensees sharing a vault |
4 | | share more than 50% of the same ownership. |
5 | | "Craft grower agent" means a principal officer, board |
6 | | member, employee, or other agent of a craft grower who is 21 |
7 | | years of age or older. |
8 | | "Craft Grower Agent Identification Card" means a document |
9 | | issued by the Department of Agriculture that identifies a |
10 | | person as a craft grower agent. |
11 | | "Cultivation center" means a facility operated by an |
12 | | organization or business that is licensed by the Department of |
13 | | Agriculture to cultivate, process, transport (unless otherwise |
14 | | limited by this Act), and perform other necessary activities to |
15 | | provide cannabis and cannabis-infused products to cannabis |
16 | | business establishments. |
17 | | "Cultivation center agent" means a principal officer, |
18 | | board member, employee, or other agent of a cultivation center |
19 | | who is 21 years of age or older. |
20 | | "Cultivation Center Agent Identification Card" means a |
21 | | document issued by the Department of Agriculture that |
22 | | identifies a person as a cultivation center agent. |
23 | | "Currency" means currency and coin of the United States. |
24 | | "Dispensary" means a facility operated by a dispensing |
25 | | organization at which activities licensed by this Act may |
26 | | occur. |
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1 | | "Dispensing organization" means a facility operated by an |
2 | | organization or business that is licensed by the Department of |
3 | | Financial and Professional Regulation to acquire cannabis from |
4 | | a cultivation center, craft grower, processing organization, |
5 | | or another dispensary for the purpose of selling or dispensing |
6 | | cannabis, cannabis-infused products, cannabis seeds, |
7 | | paraphernalia, or related supplies under this Act to purchasers |
8 | | or to qualified registered medical cannabis patients and |
9 | | caregivers. As used in this Act, dispensary organization shall |
10 | | include a registered medical cannabis organization as defined |
11 | | in the Compassionate Use of Medical Cannabis Pilot Program Act |
12 | | or its successor Act that has obtained an Early Approval Adult |
13 | | Use Dispensing Organization License. |
14 | | "Dispensing organization agent" means a principal officer, |
15 | | employee, or agent of a dispensing organization who is 21 years |
16 | | of age or older. |
17 | | "Dispensing organization agent identification card" means |
18 | | a document issued by the Department of Financial and |
19 | | Professional Regulation that identifies a person as a |
20 | | dispensing organization agent. |
21 | | "Disproportionately Impacted Area" means a census tract or |
22 | | comparable geographic area that satisfies the following |
23 | | criteria as determined by the Department of Commerce and |
24 | | Economic Opportunity, that: |
25 | | (1) meets at least one of the following criteria: |
26 | | (A) the area has a poverty rate of at least 20% |
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1 | | according to the latest federal decennial census; or |
2 | | (B) 75% or more of the children in the area |
3 | | participate in the federal free lunch program |
4 | | according to reported statistics from the State Board |
5 | | of Education; or |
6 | | (C) at least 20% of the households in the area |
7 | | receive assistance under the Supplemental Nutrition |
8 | | Assistance Program; or |
9 | | (D) the area has an average unemployment rate, as |
10 | | determined by the Illinois Department of Employment |
11 | | Security, that is more than 120% of the national |
12 | | unemployment average, as determined by the United |
13 | | States Department of Labor, for a period of at least 2 |
14 | | consecutive calendar years preceding the date of the |
15 | | application; and |
16 | | (2) has high rates of arrest, conviction, and |
17 | | incarceration related to the sale, possession, use, |
18 | | cultivation, manufacture, or transport of cannabis. |
19 | | "Early Approval Adult Use Cultivation Center License" |
20 | | means a license that permits a medical cannabis cultivation |
21 | | center licensed under the Compassionate Use of Medical Cannabis |
22 | | Pilot Program Act as of the effective date of this Act to begin |
23 | | cultivating, infusing, packaging, transporting (unless |
24 | | otherwise provided in this Act), and selling cannabis to |
25 | | cannabis business establishments for resale to purchasers as |
26 | | permitted by this Act as of January 1, 2020. |
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1 | | "Early Approval Adult Use Dispensing Organization License" |
2 | | means a license that permits a medical cannabis dispensing |
3 | | organization licensed under the Compassionate Use of Medical |
4 | | Cannabis Pilot Program Act as of the effective date of this Act |
5 | | to begin selling cannabis to purchasers as permitted by this |
6 | | Act as of January 1, 2020. |
7 | | "Early Approval Adult Use Dispensing Organization at a |
8 | | secondary site" means a license that permits a medical cannabis |
9 | | dispensing organization licensed under the Compassionate Use |
10 | | of Medical Cannabis Pilot Program Act as of the effective date |
11 | | of this Act to begin selling cannabis to purchasers as |
12 | | permitted by this Act on January 1, 2020 at a different |
13 | | dispensary location from its existing registered medical |
14 | | dispensary location. |
15 | | "Enclosed, locked facility" means a room, greenhouse, |
16 | | building, or other enclosed area equipped with locks or other |
17 | | security devices that permit access only by cannabis business |
18 | | establishment agents working for the licensed cannabis |
19 | | business establishment or acting pursuant to this Act to |
20 | | cultivate, process, store, or distribute cannabis. |
21 | | "Enclosed, locked space" means a closet, room, greenhouse, |
22 | | building or other enclosed area equipped with locks or other |
23 | | security devices that permit access only by authorized |
24 | | individuals under this Act. "Enclosed, locked space" may |
25 | | include: |
26 | | (1) a space within a residential building that (i) is |
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1 | | the primary residence of the individual cultivating 5 or |
2 | | fewer cannabis plants that are more than 5 inches tall and |
3 | | (ii) includes sleeping quarters and indoor plumbing. The |
4 | | space must only be accessible by a key or code that is |
5 | | different from any key or code that can be used to access |
6 | | the residential building from the exterior; or |
7 | | (2) a structure, such as a shed or greenhouse, that |
8 | | lies on the same plot of land as a residential building |
9 | | that (i) includes sleeping quarters and indoor plumbing and |
10 | | (ii) is used as a primary residence by the person |
11 | | cultivating 5 or fewer cannabis plants that are more than 5 |
12 | | inches tall, such as a shed or greenhouse. The structure |
13 | | must remain locked when it is unoccupied by people. |
14 | | "Financial institution" has the same meaning as "financial |
15 | | organization" as defined in Section 1501 of the Illinois Income |
16 | | Tax Act, and also includes the holding companies, subsidiaries, |
17 | | and affiliates of such financial organizations. |
18 | | "Flowering stage" means the stage of cultivation where and |
19 | | when a cannabis plant is cultivated to produce plant material |
20 | | for cannabis products. This includes mature plants as follows: |
21 | | (1) if greater than 2 stigmas are visible at each |
22 | | internode of the plant; or |
23 | | (2) if the cannabis plant is in an area that has been |
24 | | intentionally deprived of light for a period of time |
25 | | intended to produce flower buds and induce maturation, from |
26 | | the moment the light deprivation began through the |
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1 | | remainder of the marijuana plant growth cycle. |
2 | | "Individual" means a natural person. |
3 | | "Infuser organization" or "infuser" means a facility |
4 | | operated by an organization or business that is licensed by the |
5 | | Department of Agriculture to directly incorporate cannabis or |
6 | | cannabis concentrate into a product formulation to produce a |
7 | | cannabis-infused product. |
8 | | "Kief" means the resinous crystal-like trichomes that are |
9 | | found on cannabis and that are accumulated, resulting in a |
10 | | higher concentration of cannabinoids, untreated by heat or |
11 | | pressure, or extracted using a solvent. |
12 | | "Labor peace agreement" means an agreement between a |
13 | | cannabis business establishment and any labor organization |
14 | | recognized under the National Labor Relations Act, referred to |
15 | | in this Act as a bona fide labor organization, that prohibits |
16 | | labor organizations and members from engaging in picketing, |
17 | | work stoppages, boycotts, and any other economic interference |
18 | | with the cannabis business establishment. This agreement means |
19 | | that the cannabis business establishment has agreed not to |
20 | | disrupt efforts by the bona fide labor organization to |
21 | | communicate with, and attempt to organize and represent, the |
22 | | cannabis business establishment's employees. The agreement |
23 | | shall provide a bona fide labor organization access at |
24 | | reasonable times to areas in which the cannabis business |
25 | | establishment's employees work, for the purpose of meeting with |
26 | | employees to discuss their right to representation, employment |
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1 | | rights under State law, and terms and conditions of employment. |
2 | | This type of agreement shall not mandate a particular method of |
3 | | election or certification of the bona fide labor organization. |
4 | | "Limited access area" means a building, room, or other area |
5 | | under the control of a cannabis dispensing organization |
6 | | licensed under this Act and upon the licensed premises with |
7 | | access limited to purchasers, dispensing organization owners |
8 | | and other dispensing organization agents, or service |
9 | | professionals conducting business with the dispensing |
10 | | organization. |
11 | | "Member of an impacted family" means an individual who has |
12 | | a parent, legal guardian, child, spouse, or dependent, or was a |
13 | | dependent of an individual who, prior to the effective date of |
14 | | this Act, was arrested for, convicted of, or adjudicated |
15 | | delinquent for any offense that is eligible for expungement |
16 | | under this Act. |
17 | | "Mother plant" means a cannabis plant that is cultivated or |
18 | | maintained for the purpose of generating clones, and that will |
19 | | not be used to produce plant material for sale to an infuser or |
20 | | dispensing organization. |
21 | | "Ordinary public view" means within the sight line with |
22 | | normal visual range of a person, unassisted by visual aids, |
23 | | from a public street or sidewalk adjacent to real property, or |
24 | | from within an adjacent property. |
25 | | "Ownership and control" means ownership of at least 51% of |
26 | | the business, including corporate stock if a corporation, and |
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1 | | control over the management and day-to-day operations of the |
2 | | business and an interest in the capital, assets, and profits |
3 | | and losses of the business proportionate to percentage of |
4 | | ownership. |
5 | | "Person" means a natural individual, firm, partnership, |
6 | | association, joint stock company, joint venture, public or |
7 | | private corporation, limited liability company, or a receiver, |
8 | | executor, trustee, guardian, or other representative appointed |
9 | | by order of any court. |
10 | | "Possession limit" means the amount of cannabis under |
11 | | Section 10-10 that may be possessed at any one time by a person |
12 | | 21 years of age or older or who is a registered qualifying |
13 | | medical cannabis patient or caregiver under the Compassionate |
14 | | Use of Medical Cannabis Pilot Program Act. |
15 | | "Principal officer" includes a cannabis business |
16 | | establishment applicant or licensed cannabis business |
17 | | establishment's board member, owner with more than 1% interest |
18 | | of the total cannabis business establishment or more than 5% |
19 | | interest of the total cannabis business establishment of a |
20 | | publicly traded company, president, vice president, secretary, |
21 | | treasurer, partner, officer, member, manager member, or person |
22 | | with a profit sharing, financial interest, or revenue sharing |
23 | | arrangement. The definition includes a person with authority to |
24 | | control the cannabis business establishment, a person who |
25 | | assumes responsibility for the debts of the cannabis business |
26 | | establishment and who is further defined in this Act. |
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1 | | "Primary residence" means a dwelling where a person usually |
2 | | stays or stays more often than other locations. It may be |
3 | | determined by, without limitation, presence, tax filings; |
4 | | address on an Illinois driver's license, an Illinois |
5 | | Identification Card, or an Illinois Person with a Disability |
6 | | Identification Card; or voter registration. No person may have |
7 | | more than one primary residence. |
8 | | "Processing organization" or "processor" means a facility |
9 | | operated by an organization or business that is licensed by the |
10 | | Department of Agriculture to either extract constituent |
11 | | chemicals or compounds to produce cannabis concentrate or |
12 | | incorporate cannabis or cannabis concentrate into a product |
13 | | formulation to produce a cannabis product. |
14 | | "Processing organization agent" means a principal officer, |
15 | | board member, employee, or agent of a processing organization. |
16 | | "Processing organization agent identification card" means |
17 | | a document issued by the Department of Agriculture that |
18 | | identifies a person as a processing organization agent. |
19 | | "Purchaser" means a person 21 years of age or older who |
20 | | acquires cannabis for a valuable consideration. "Purchaser" |
21 | | does not include a cardholder under the Compassionate Use of |
22 | | Medical Cannabis Pilot Program Act. |
23 | | "Qualified Social Equity Applicant" means a Social Equity |
24 | | Applicant who has been awarded a conditional license under this |
25 | | Act to operate a cannabis business establishment. |
26 | | "Resided" means an individual's primary residence was |
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1 | | located within the relevant geographic area as established by 2 |
2 | | of the following: |
3 | | (1) a signed lease agreement that includes the |
4 | | applicant's name; |
5 | | (2) a property deed that includes the applicant's name; |
6 | | (3) school records; |
7 | | (4) a voter registration card; |
8 | | (5) an Illinois driver's license, an Illinois |
9 | | Identification Card, or an Illinois Person with a |
10 | | Disability Identification Card; |
11 | | (6) a paycheck stub; |
12 | | (7) a utility bill; or |
13 | | (8) any other proof of residency or other information |
14 | | necessary to establish residence as provided by rule. |
15 | | "Smoking" means the inhalation of smoke caused by the |
16 | | combustion of cannabis. |
17 | | "Social Equity Applicant" means an applicant that is an |
18 | | Illinois resident that meets one of the following criteria: |
19 | | (1) an applicant with at least 51% ownership and |
20 | | control by one or more individuals who have resided for at |
21 | | least 5 of the preceding 10 years in a Disproportionately |
22 | | Impacted Area; |
23 | | (2) an applicant with at least 51% ownership and |
24 | | control by one or more individuals who:
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25 | | (i) have been arrested for, convicted of, or |
26 | | adjudicated delinquent for any offense that is |
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1 | | eligible for expungement under this Act; or
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2 | | (ii) is a member of an impacted family; |
3 | | (3) for applicants with a minimum of 10 full-time |
4 | | employees, an applicant with at least 51% of current |
5 | | employees who: |
6 | | (i) currently reside in a Disproportionately |
7 | | Impacted Area; or |
8 | | (ii) have been arrested for, convicted of, or |
9 | | adjudicated delinquent for any offense that is |
10 | | eligible for expungement under this Act or member of an |
11 | | impacted family. |
12 | | Nothing in this Act shall be construed to preempt or limit |
13 | | the duties of any employer under the Job Opportunities for |
14 | | Qualified Applicants Act. Nothing in this Act shall permit an |
15 | | employer to require an employee to disclose sealed or expunged |
16 | | offenses, unless otherwise required by law. |
17 | | "Tincture" means a cannabis-infused solution, typically |
18 | | comprised of alcohol, glycerin, or vegetable oils, derived |
19 | | either directly from the cannabis plant or from a processed |
20 | | cannabis extract. A tincture is not an alcoholic liquor as |
21 | | defined in the Liquor Control Act of 1934. A tincture shall |
22 | | include a calibrated dropper or other similar device capable of |
23 | | accurately measuring servings. |
24 | | "Transporting organization" or "transporter" means an |
25 | | organization or business that is licensed by the Department of |
26 | | Agriculture to transport cannabis on behalf of a cannabis |
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1 | | business establishment or a community college licensed under |
2 | | the Community
College Cannabis Vocational Training Pilot |
3 | | Program.
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4 | | "Transporting organization agent" means a principal |
5 | | officer, board member, employee, or agent of a transporting |
6 | | organization. |
7 | | "Transporting organization agent identification card" |
8 | | means a document issued by the Department of Agriculture that |
9 | | identifies a person as a transporting organization agent. |
10 | | "Unit of local government" means any county, city, village, |
11 | | or incorporated town. |
12 | | "Vegetative stage" means the stage of cultivation in which |
13 | | a cannabis plant is propagated to produce additional cannabis |
14 | | plants or reach a sufficient size for production. This includes |
15 | | seedlings, clones, mothers, and other immature cannabis plants |
16 | | as follows: |
17 | | (1) if the cannabis plant is in an area that has not |
18 | | been intentionally deprived of light for a period of time |
19 | | intended to produce flower buds and induce maturation, it |
20 | | has no more than 2 stigmas visible at each internode of the |
21 | | cannabis plant; or |
22 | | (2) any cannabis plant that is cultivated solely for |
23 | | the purpose of propagating clones and is never used to |
24 | | produce cannabis. |
25 | | ARTICLE 5. |
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1 | | AUTHORITY |
2 | | Section 5-5. Sharing of authority. Notwithstanding any |
3 | | provision or law to the contrary, any authority granted to any |
4 | | State agency or State employees or appointees under the |
5 | | Compassionate Use of Medical Cannabis Pilot Program Act shall |
6 | | be shared by any State agency or State employees or appointees |
7 | | given authority to license, discipline, revoke, regulate, or |
8 | | make rules under this Act. |
9 | | Section 5-10. Department of Agriculture. The Department of |
10 | | Agriculture shall administer and enforce provisions of this Act |
11 | | relating to the oversight and registration of cultivation |
12 | | centers, craft growers, infuser organizations, and |
13 | | transporting organizations and agents, including the issuance |
14 | | of identification cards and establishing limits on potency or |
15 | | serving size for cannabis or cannabis products. The Department |
16 | | of Agriculture may suspend or revoke the license of, or impose |
17 | | other penalties upon cultivation centers, craft growers, |
18 | | infuser organizations, transporting organizations, and their |
19 | | principal officers, Agents-in-Charge, and agents for |
20 | | violations of this Act and any rules adopted under this Act. |
21 | | Section 5-15. Department of Financial and Professional |
22 | | Regulation. The Department of Financial and Professional |
23 | | Regulation shall enforce the provisions of this Act relating to |
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1 | | the oversight and registration of dispensing organizations and |
2 | | agents, including the issuance of identification cards for |
3 | | dispensing organization agents. The Department of Financial |
4 | | and Professional Regulation may suspend or revoke the license |
5 | | of, or impose other penalties upon, dispensing organizations |
6 | | for violations of this Act and any rules adopted under this |
7 | | Act. |
8 | | Section 5-20. Background checks. |
9 | | (a) Through the Department of State Police, the licensing |
10 | | or issuing Department shall conduct a criminal history record |
11 | | check of the prospective principal officers, board members, and |
12 | | agents of a cannabis business establishment applying for a |
13 | | license or identification card under this Act. |
14 | | Each cannabis business establishment prospective principal |
15 | | officer, board member, or agent shall submit his or her |
16 | | fingerprints to the Department of State Police in the form and |
17 | | manner prescribed by the Department of State Police. |
18 | | Such fingerprints shall be transmitted through a live scan |
19 | | fingerprint vendor licensed by the Department of Financial and |
20 | | Professional Regulation. These fingerprints shall be checked |
21 | | against the fingerprint records now and hereafter filed in the |
22 | | Department of State Police and Federal Bureau of Investigation |
23 | | criminal history records databases. The Department of State |
24 | | Police shall charge a fee for conducting the criminal history |
25 | | record check, which shall be deposited into the State Police |
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1 | | Services Fund and shall not exceed the actual cost of the State |
2 | | and national criminal history record check. The Department of |
3 | | State Police shall furnish, pursuant to positive |
4 | | identification, all Illinois conviction information and shall |
5 | | forward the national criminal history record information to: |
6 | | (i) the Department of Agriculture, with respect to a |
7 | | cultivation center, craft grower, infuser organization, or |
8 | | transporting organization; or |
9 | | (ii) the Department of Financial and Professional |
10 | | Regulation, with respect to a dispensing organization. |
11 | | (b) When applying for the initial license or identification |
12 | | card, the background checks for all prospective principal |
13 | | officers, board members, and agents shall be completed before |
14 | | submitting the application to the licensing or issuing agency. |
15 | | (c) All applications for licensure under this Act by |
16 | | applicants with criminal convictions shall be subject to |
17 | | Sections 2105-131, 2105-135, and 2105-205 of the Department of |
18 | | Professional Regulation Law of the Civil Administrative Code of |
19 | | Illinois. |
20 | | Section 5-25. Department of Public Health to make health |
21 | | warning recommendations. |
22 | | (a) The Department of Public Health shall make |
23 | | recommendations to the Department of Agriculture and the |
24 | | Department of Financial and Professional Regulation on |
25 | | appropriate health warnings for dispensaries and advertising, |
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1 | | which may apply to all cannabis products, including item-type |
2 | | specific labeling or warning requirements, regulate the |
3 | | facility where cannabis-infused products are made, regulate |
4 | | cannabis-infused products as provided in subsection (e) of |
5 | | Section 55-5, and facilitate the Adult Use Cannabis Health |
6 | | Advisory Committee. |
7 | | (b) An Adult Use Cannabis Health Advisory Committee is |
8 | | hereby created and shall meet at least twice annually. The |
9 | | Chairperson may schedule meetings more frequently upon his or |
10 | | her initiative or upon the request of a Committee member. |
11 | | Meetings may be held in person or by teleconference. The |
12 | | Committee shall discuss and monitor changes in drug use data in |
13 | | Illinois and the emerging science and medical information |
14 | | relevant to the health effects associated with cannabis use and |
15 | | may provide recommendations to the Department of Human Services |
16 | | about public health awareness campaigns and messages. The |
17 | | Committee shall include the following members appointed by the |
18 | | Governor and shall represent the geographic, ethnic, and racial |
19 | | diversity of the State: |
20 | | (1) The Director of Public Health, or his or her |
21 | | designee, who shall serve as the Chairperson. |
22 | | (2) The Secretary of Human Services, or his or her |
23 | | designee, who shall serve as the Co-Chairperson. |
24 | | (3) A representative of the poison control center. |
25 | | (4) A pharmacologist. |
26 | | (5) A pulmonologist. |
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1 | | (6) An emergency room physician. |
2 | | (7) An emergency medical technician, paramedic, or |
3 | | other first responder. |
4 | | (8) A nurse practicing in a school-based setting. |
5 | | (9) A psychologist. |
6 | | (10) A neonatologist. |
7 | | (11) An obstetrician-gynecologist. |
8 | | (12) A drug epidemiologist. |
9 | | (13) A medical toxicologist. |
10 | | (14) An addiction psychiatrist. |
11 | | (15) A pediatrician. |
12 | | (16) A representative of a statewide professional |
13 | | public health organization. |
14 | | (17) A representative of a statewide hospital/health |
15 | | system association. |
16 | | (18) An individual registered as a patient in the |
17 | | Compassionate Use of Medical Cannabis Pilot Program. |
18 | | (19) An individual registered as a caregiver in the |
19 | | Compassionate Use of Medical Cannabis Pilot Program. |
20 | | (20) A representative of an organization focusing on |
21 | | cannabis-related policy. |
22 | | (21) A representative of an organization focusing on |
23 | | the civil liberties of individuals who reside in Illinois. |
24 | | (22) A representative of the criminal defense or civil |
25 | | aid community of attorneys serving Disproportionately |
26 | | Impacted Areas. |
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1 | | (23) A representative of licensed cannabis business |
2 | | establishments. |
3 | | (24) A Social Equity Applicant. |
4 | | (c) The Committee shall provide a report by September 30, |
5 | | 2021, and every year thereafter, to the General Assembly. The |
6 | | Department of Public Health shall make the report available on |
7 | | its website. |
8 | | Section 5-30. Department of Human Services. The Department |
9 | | of Human Services shall identify evidence-based programs for |
10 | | preventive mental health, the prevention or treatment of |
11 | | alcohol abuse, tobacco use, illegal drug use (including |
12 | | prescription drugs), and cannabis use by pregnant women, and |
13 | | make policy recommendations, as appropriate, to the Adult Use |
14 | | Cannabis Health Advisory Committee. The Department of Human |
15 | | Services shall develop and disseminate educational materials |
16 | | for purchasers based on recommendations received from the |
17 | | Department of Public Health and the Adult Use Cannabis Health |
18 | | Advisory Committee. |
19 | | Section 5-45. Illinois Cannabis Regulation Oversight |
20 | | Officer. |
21 | | (a) The position of Illinois Cannabis Regulation Oversight |
22 | | Officer is created within the Department of Financial and |
23 | | Professional Regulation under the Secretary of Financial and |
24 | | Professional Regulation. The Illinois Cannabis Regulation |
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1 | | Oversight Officer shall be appointed by the Governor with the |
2 | | advice and consent of the Senate. The term of office of the |
3 | | Officer shall expire on the third Monday of January in |
4 | | odd-numbered years provided that he or she shall hold office |
5 | | until a successor is appointed and qualified. In case of |
6 | | vacancy in office during the recess of the Senate, the Governor |
7 | | shall make a temporary appointment until the next meeting of |
8 | | the Senate, when the Governor shall nominate some person to |
9 | | fill the office, and any person so nominated who is confirmed |
10 | | by the Senate shall hold office during the remainder of the |
11 | | term and until his or her successor is appointed and qualified. |
12 | | (b) The Illinois Cannabis Regulation Oversight Officer |
13 | | may: |
14 | | (1) maintain a staff; |
15 | | (2) make recommendations for policy, statute, and rule |
16 | | changes; |
17 | | (3) collect data both in Illinois and outside Illinois |
18 | | regarding the regulation of cannabis; |
19 | | (4) compile or assist in the compilation of any reports |
20 | | required by this Act; |
21 | | (5) ensure the coordination of efforts between various |
22 | | State agencies involved in regulating and taxing the sale |
23 | | of cannabis in Illinois; and |
24 | | (6) encourage, promote, suggest, and report best |
25 | | practices for ensuring diversity in the cannabis industry |
26 | | in Illinois. |
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1 | | (c) The Illinois Cannabis Regulation Oversight Officer |
2 | | shall not: |
3 | | (1) participate in the issuance of any business |
4 | | licensing or the making of awards; or |
5 | | (2) participate in any adjudicative decision-making |
6 | | process involving licensing or licensee discipline. |
7 | | (d) Any funding required for the Illinois Cannabis |
8 | | Regulation Oversight Officer, its staff, or its activities |
9 | | shall be drawn from the Cannabis Regulation Fund. |
10 | | (e) The Illinois Cannabis Regulation Oversight Officer |
11 | | shall commission and publish a disparity and availability study |
12 | | by March 1, 2021 that: (1) evaluates whether there exists |
13 | | discrimination in the State's cannabis industry; and (2) if so, |
14 | | evaluates the impact of such discrimination on the State and |
15 | | includes recommendations to the Department of Financial and |
16 | | Professional Regulation and the Department of Agriculture for |
17 | | reducing or eliminating any identified barriers to entry in the |
18 | | cannabis market. The Illinois Cannabis Regulation Oversight |
19 | | Officer shall forward a copy of its findings and |
20 | | recommendations to the Department of Financial and |
21 | | Professional Regulation, the Department of Agriculture, the |
22 | | Department of Commerce and Economic Opportunity, the General |
23 | | Assembly, and the Governor. |
24 | | (f) The Illinois Cannabis Regulation Oversight Officer may |
25 | | compile, collect, or otherwise gather data necessary for the |
26 | | administration of this Act and to carry out the Officer's duty |
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1 | | relating to the recommendation of policy changes. The Illinois |
2 | | Cannabis Regulation Oversight Officer may direct the |
3 | | Department of Agriculture, Department of Financial and |
4 | | Professional Regulation, Department of Public Health, |
5 | | Department of Human Services, and Department of Commerce and |
6 | | Economic Opportunity to assist in the compilation, collection, |
7 | | and data gathering authorized pursuant to this subsection. The |
8 | | Illinois Cannabis Regulation Oversight Officer shall compile |
9 | | all of the data into a single report and submit the report to |
10 | | the Governor and the General Assembly and publish the report on |
11 | | its website. |
12 | | ARTICLE 7. |
13 | | SOCIAL EQUITY IN THE CANNABIS INDUSTRY |
14 | | Section 7-1. Findings. |
15 | | (a) The General Assembly finds that the medical cannabis |
16 | | industry, established in 2014 through the Compassionate Use of |
17 | | Medical Cannabis Pilot Program Act, has shown that additional |
18 | | efforts are needed to reduce barriers to ownership. Through |
19 | | that program, 55 licenses for dispensing organizations and 20 |
20 | | licenses for cultivation centers have been issued. Those |
21 | | licenses are held by only a small number of businesses, the |
22 | | ownership of which does not sufficiently meet the General |
23 | | Assembly's interest in business ownership that reflects the |
24 | | population of the State of Illinois and that demonstrates the |
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1 | | need to reduce barriers to entry for individuals and |
2 | | communities most adversely impacted by the enforcement of |
3 | | cannabis-related laws. |
4 | | (b) In the interest of establishing a legal cannabis |
5 | | industry that is equitable and accessible to those most |
6 | | adversely impacted by the enforcement of drug-related laws in |
7 | | this State, including cannabis-related laws, the General |
8 | | Assembly finds and declares that a social equity program should |
9 | | be established. |
10 | | (c) The General Assembly also finds and declares that |
11 | | individuals who have been arrested or incarcerated due to drug |
12 | | laws suffer long-lasting negative consequences, including |
13 | | impacts to employment, business ownership, housing, health, |
14 | | and long-term financial well-being. |
15 | | (d) The General Assembly also finds and declares that |
16 | | family members, especially children, and communities of those |
17 | | who have been arrested or incarcerated due to drug laws, suffer |
18 | | from emotional, psychological, and financial harms as a result |
19 | | of such arrests or incarcerations. |
20 | | (e) Furthermore, the General Assembly finds and declares |
21 | | that certain communities have disproportionately suffered the |
22 | | harms of enforcement of cannabis-related laws. Those |
23 | | communities face greater difficulties accessing traditional |
24 | | banking systems and capital for establishing businesses. |
25 | | (f) The General Assembly also finds that individuals who |
26 | | have resided in areas of high poverty suffer negative |
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1 | | consequences, including barriers to entry in employment, |
2 | | business ownership, housing, health, and long-term financial |
3 | | well-being. |
4 | | (g) The General Assembly also finds and declares that |
5 | | promotion of business ownership by individuals who have resided |
6 | | in areas of high poverty and high enforcement of |
7 | | cannabis-related laws furthers an equitable cannabis industry. |
8 | | (h) Therefore, in the interest of remedying the harms |
9 | | resulting from the disproportionate enforcement of |
10 | | cannabis-related laws, the General Assembly finds and declares |
11 | | that a social equity program should offer, among other things, |
12 | | financial assistance and license application benefits to |
13 | | individuals most directly and adversely impacted by the |
14 | | enforcement of cannabis-related laws who are interested in |
15 | | starting cannabis business establishments.
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16 | | Section 7-10. Cannabis Business Development Fund. |
17 | | (a) There is created in the State treasury a special fund, |
18 | | which shall be held separate and apart from all other State |
19 | | moneys, to be known as the Cannabis Business Development Fund. |
20 | | The Cannabis Business Development Fund shall be exclusively |
21 | | used for the following purposes: |
22 | | (1) to provide low-interest rate loans to Social Equity |
23 | | Applicants to pay for ordinary and necessary expenses to |
24 | | start and operate a cannabis business establishment |
25 | | permitted by this Act; |
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1 | | (2) to provide grants to Qualified Social Equity |
2 | | Applicants to pay for ordinary and necessary expenses to |
3 | | start and operate a cannabis business establishment |
4 | | permitted by this Act; |
5 | | (3) to compensate the Department of Commerce and |
6 | | Economic Opportunity for any costs related to the provision |
7 | | of low-interest loans and grants to Qualified Social Equity |
8 | | Applicants; |
9 | | (4) to pay for outreach that may be provided or |
10 | | targeted to attract and support Social Equity Applicants; |
11 | | (5) (blank); |
12 | | (6) to conduct any study or research concerning the |
13 | | participation of minorities, women, veterans, or people |
14 | | with disabilities in the cannabis industry, including, |
15 | | without limitation, barriers to such individuals entering |
16 | | the industry as equity owners of cannabis business |
17 | | establishments; |
18 | | (7) (blank); and |
19 | | (8) to assist with job training and technical |
20 | | assistance for residents in Disproportionately Impacted |
21 | | Areas. |
22 | | (b) All moneys collected under Sections 15-15 and 15-20 for |
23 | | Early Approval Adult Use Dispensing Organization Licenses |
24 | | issued before January 1, 2021 and remunerations made as a |
25 | | result of transfers of permits awarded to Qualified Social |
26 | | Equity Applicants shall be deposited into the Cannabis Business |
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1 | | Development Fund. |
2 | | (c) As soon as practical after July 1, 2019, the |
3 | | Comptroller shall order and the Treasurer shall transfer |
4 | | $12,000,000 from the Compassionate Use of Medical Cannabis Fund |
5 | | to the Cannabis Business Development Fund. |
6 | | (d) Notwithstanding any other law to the contrary, the |
7 | | Cannabis Business Development Fund is not subject to sweeps, |
8 | | administrative charge-backs, or any other fiscal or budgetary |
9 | | maneuver that would in any way transfer any amounts from the |
10 | | Cannabis Business Development Fund into any other fund of the |
11 | | State. |
12 | | Section 7-15. Loans and grants to Social Equity Applicants. |
13 | | (a) The Department of Commerce and Economic Opportunity |
14 | | shall establish grant and loan programs, subject to |
15 | | appropriations from the Cannabis Business Development Fund, |
16 | | for the purposes of providing financial assistance, loans, |
17 | | grants, and technical assistance to Social Equity Applicants. |
18 | | (b) The Department of Commerce and Economic Opportunity has |
19 | | the power to: |
20 | | (1) provide Cannabis Social Equity loans and grants |
21 | | from appropriations from the Cannabis Business Development |
22 | | Fund to assist Social Equity Applicants in gaining entry |
23 | | to, and successfully operating in, the State's regulated |
24 | | cannabis marketplace; |
25 | | (2) enter into agreements that set forth terms and |
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1 | | conditions of the financial assistance, accept funds or |
2 | | grants, and engage in cooperation with private entities and |
3 | | agencies of State or local government to carry out the |
4 | | purposes of this Section; |
5 | | (3) fix, determine, charge, and collect any premiums, |
6 | | fees, charges, costs and expenses, including application |
7 | | fees, commitment fees, program fees, financing charges, or |
8 | | publication fees in connection with its activities under |
9 | | this Section; |
10 | | (4) coordinate assistance under these loan programs |
11 | | with activities of the Illinois Department of Financial and |
12 | | Professional Regulation, the Illinois Department of |
13 | | Agriculture, and other agencies as needed to maximize the |
14 | | effectiveness and efficiency of this Act; |
15 | | (5) provide staff, administration, and related support |
16 | | required to administer this Section; |
17 | | (6) take whatever actions are necessary or appropriate |
18 | | to protect the State's interest in the event of bankruptcy, |
19 | | default, foreclosure, or noncompliance with the terms and |
20 | | conditions of financial assistance provided under this |
21 | | Section, including the ability to recapture funds if the |
22 | | recipient is found to be noncompliant with the terms and |
23 | | conditions of the financial assistance agreement; |
24 | | (7) establish application, notification, contract, and |
25 | | other forms, procedures, or rules deemed necessary and |
26 | | appropriate; and |
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1 | | (8) utilize vendors or contract work to carry out the |
2 | | purposes of this Act. |
3 | | (c) Loans made under this Section: |
4 | | (1) shall only be made if, in the Department's |
5 | | judgment, the project furthers the goals set forth in this |
6 | | Act; and |
7 | | (2) shall be in such principal amount and form and |
8 | | contain such terms and provisions with respect to security, |
9 | | insurance, reporting, delinquency charges, default |
10 | | remedies, and other matters as the Department shall |
11 | | determine appropriate to protect the public interest and to |
12 | | be consistent with the purposes of this Section. The terms |
13 | | and provisions may be less than required for similar loans |
14 | | not covered by this Section. |
15 | | (d) Grants made under this Section shall be awarded on a |
16 | | competitive and annual basis under the Grant Accountability and |
17 | | Transparency Act. Grants made under this Section shall further |
18 | | and promote the goals of this Act, including promotion of |
19 | | Social Equity Applicants, job training and workforce |
20 | | development, and technical assistance to Social Equity |
21 | | Applicants. |
22 | | (e) Beginning January 1, 2021 and each year thereafter, the |
23 | | Department shall annually report to the Governor and the |
24 | | General Assembly on the outcomes and effectiveness of this |
25 | | Section that shall include the following: |
26 | | (1) the number of persons or businesses receiving |
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1 | | financial assistance under this Section; |
2 | | (2) the amount in financial assistance awarded in the |
3 | | aggregate, in addition to the amount of loans made that are |
4 | | outstanding and the amount of grants awarded; |
5 | | (3) the location of the project engaged in by the |
6 | | person or business; and |
7 | | (4) if applicable, the number of new jobs and other |
8 | | forms of economic output created as a result of the |
9 | | financial assistance. |
10 | | (f) The Department of Commerce and Economic Opportunity |
11 | | shall include engagement with individuals with limited English |
12 | | proficiency as part of its outreach provided or targeted to |
13 | | attract and support Social Equity Applicants. |
14 | | Section 7-20. Fee waivers. |
15 | | (a) For Social Equity Applicants, the Department of |
16 | | Financial and Professional Regulation and the Department of |
17 | | Agriculture shall waive 50% of any nonrefundable license |
18 | | application fees, any nonrefundable fees associated with |
19 | | purchasing a license to operate a cannabis business |
20 | | establishment, and any surety bond or other financial |
21 | | requirements, provided a Social Equity Applicant meets the |
22 | | following qualifications at the time the payment is due: |
23 | | (1) the applicant, including all individuals and |
24 | | entities with 10% or greater ownership and all parent |
25 | | companies, subsidiaries, and affiliates, has less than a |
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1 | | total of $750,000 of income in the previous calendar year; |
2 | | and |
3 | | (2) the applicant, including all individuals and |
4 | | entities with 10% or greater ownership and all parent |
5 | | companies, subsidiaries, and affiliates, has no more than 2 |
6 | | other licenses for cannabis business establishments in the |
7 | | State of Illinois. |
8 | | (b) The Department of Financial and Professional |
9 | | Regulation and the Department of Agriculture may require Social |
10 | | Equity Applicants to attest that they meet the requirements for |
11 | | a fee waiver as provided in subsection (a) and to provide |
12 | | evidence of annual total income in the previous calendar year. |
13 | | (c) If the Department of Financial and Professional |
14 | | Regulation or the Department of Agriculture determines that an |
15 | | applicant who applied as a Social Equity Applicant is not |
16 | | eligible for such status, the applicant shall be provided an |
17 | | additional 10 days to provide alternative evidence that he or |
18 | | she qualifies as a Social Equity Applicant. Alternatively, the |
19 | | applicant may pay the remainder of the waived fee and be |
20 | | considered as a non-Social Equity Applicant. If the applicant |
21 | | cannot do either, then the Departments may keep the initial |
22 | | application fee and the application shall not be graded. |
23 | | Section 7-25. Transfer of license awarded to Social Equity |
24 | | Applicant. |
25 | | (a) In the event a Social Equity Applicant seeks to |
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1 | | transfer, sell, or grant a cannabis business establishment |
2 | | license within 5 years after it was issued to a person or |
3 | | entity that does not qualify as a Social Equity Applicant, the |
4 | | transfer agreement shall require the new license holder to pay |
5 | | the Cannabis Business Development Fund an amount equal to: |
6 | | (1) any fees that were waived by any State agency based |
7 | | on the applicant's status as a Social Equity Applicant, if |
8 | | applicable; |
9 | | (2) any outstanding amount owed by the Qualified Social |
10 | | Equity Applicant for a loan through the Cannabis Business |
11 | | Development Fund, if applicable; and |
12 | | (3) the full amount of any grants that the Qualified |
13 | | Social Equity Applicant received from the Department of |
14 | | Commerce and Economic Opportunity, if applicable. |
15 | | (b) Transfers of cannabis business establishment licenses |
16 | | awarded to a Social Equity Applicant are subject to all other |
17 | | provisions of this Act, the Compassionate Use of Medical |
18 | | Cannabis Pilot Program Act, and rules regarding transfers. |
19 | | Section 7-30. Reporting. By January 1, 2021, and on January |
20 | | 1 of every year thereafter, or upon request by the Illinois |
21 | | Cannabis Regulation Oversight Officer, each cannabis business |
22 | | establishment licensed under this Act shall report to the |
23 | | Illinois Cannabis Regulation Oversight Officer, on a form to be |
24 | | provided by the Illinois Cannabis Regulation Oversight |
25 | | Officer, information that will allow it to assess the extent of |
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1 | | diversity in the medical and adult use cannabis industry and |
2 | | methods for reducing or eliminating any identified barriers to |
3 | | entry, including access to capital. The information to be |
4 | | collected shall be designed to identify the following: |
5 | | (1) the number and percentage of licenses provided to |
6 | | Social Equity Applicants and to businesses owned by |
7 | | minorities, women, veterans, and people with disabilities; |
8 | | (2) the total number and percentage of employees in the |
9 | | cannabis industry who meet the criteria in (3)(i) or |
10 | | (3)(ii) in the definition of Social Equity Applicant or who |
11 | | are minorities, women, veterans, or people with |
12 | | disabilities; |
13 | | (3) the total number and percentage of contractors and |
14 | | subcontractors in the cannabis industry that meet the |
15 | | definition of a Social Equity Applicant or who are owned by |
16 | | minorities, women, veterans, or people with disabilities, |
17 | | if known to the cannabis business establishment; and |
18 | | (4) recommendations on reducing or eliminating any |
19 | | identified barriers to entry, including access to capital, |
20 | | in the cannabis industry. |
21 | | ARTICLE 10. |
22 | | PERSONAL USE OF CANNABIS |
23 | | Section 10-5. Personal use of cannabis; restrictions on |
24 | | cultivation; penalties. |
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1 | | (a) Beginning January 1, 2020, notwithstanding any other |
2 | | provision of law, and except as otherwise provided in this Act, |
3 | | the following acts are not a violation of this Act and shall |
4 | | not be a criminal or civil offense under State law or the |
5 | | ordinances of any unit of local government of this State or be |
6 | | a basis for seizure or forfeiture of assets under State law for |
7 | | persons other than natural individuals under 21 years of age: |
8 | | (1) possession, consumption, use, purchase, obtaining, |
9 | | or transporting an amount of cannabis for personal use that |
10 | | does not exceed the possession limit under Section 10-10 or |
11 | | otherwise in accordance with the requirements of this Act; |
12 | | (2) cultivation of cannabis for personal use in |
13 | | accordance with the requirements of this Act; and |
14 | | (3) controlling property if actions that are |
15 | | authorized by this Act occur on the property in accordance |
16 | | with this Act. |
17 | | (a-1) Beginning January 1, 2020, notwithstanding any other |
18 | | provision of law, and except as otherwise provided in this Act, |
19 | | possessing, consuming, using, purchasing, obtaining, or |
20 | | transporting an amount of cannabis purchased or produced in |
21 | | accordance with this Act that does not exceed the possession |
22 | | limit under subsection (a) of Section 10-10 shall not be a |
23 | | basis for seizure or forfeiture of assets under State law. |
24 | | (b) Cultivating cannabis for personal use is subject to the |
25 | | following limitations: |
26 | | (1) An Illinois resident 21 years of age or older who |
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1 | | is a registered qualifying patient under the Compassionate |
2 | | Use of Medical Cannabis Pilot Program Act may cultivate |
3 | | cannabis plants, with a limit of 5 plants that are more |
4 | | than 5 inches tall, per household without a cultivation |
5 | | center or craft grower license. In this Section, "resident" |
6 | | means a person who has been domiciled in the State of |
7 | | Illinois for a period of 30 days before cultivation. |
8 | | (2) Cannabis cultivation must take place in an |
9 | | enclosed, locked space. |
10 | | (3) Adult registered qualifying patients may purchase |
11 | | cannabis seeds from a dispensary for the purpose of home |
12 | | cultivation. Seeds may not be given or sold to any other |
13 | | person. |
14 | | (4) Cannabis plants shall not be stored or placed in a |
15 | | location where they are subject to ordinary public view, as |
16 | | defined in this Act. A registered qualifying patient who |
17 | | cultivates cannabis under this Section shall take |
18 | | reasonable precautions to ensure the plants are secure from |
19 | | unauthorized access, including unauthorized access by a |
20 | | person under 21 years of age. |
21 | | (5) Cannabis cultivation may occur only on residential |
22 | | property lawfully in possession of the cultivator or with |
23 | | the consent of the person in lawful possession of the |
24 | | property. An owner or lessor of residential property may |
25 | | prohibit the cultivation of cannabis by a lessee. |
26 | | (6) (Blank). |
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1 | | (7) A dwelling, residence, apartment, condominium |
2 | | unit, enclosed, locked space, or piece of property not |
3 | | divided into multiple dwelling units shall not contain more |
4 | | than 5 plants at any one time. |
5 | | (8) Cannabis plants may only be tended by registered |
6 | | qualifying patients who reside at the residence, or their |
7 | | authorized agent attending to the residence for brief |
8 | | periods, such as when the qualifying patient is temporarily |
9 | | away from the residence. |
10 | | (9) A registered qualifying patient who cultivates |
11 | | more than the allowable number of cannabis plants, or who |
12 | | sells or gives away cannabis plants, cannabis, or |
13 | | cannabis-infused products produced under this Section, is |
14 | | liable for penalties as provided by law, including the |
15 | | Cannabis Control Act, in addition to loss of home |
16 | | cultivation privileges as established by rule. |
17 | | Section 10-10. Possession limit. |
18 | | (a) Except if otherwise authorized by this Act, for a |
19 | | person who is 21 years of age or older and a resident of this |
20 | | State, the possession limit is as follows: |
21 | | (1) 30 grams of cannabis flower; |
22 | | (2) no more than 500 milligrams of THC contained in |
23 | | cannabis-infused product; |
24 | | (3) 5 grams of cannabis concentrate; and |
25 | | (4) for registered qualifying patients, any cannabis |
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1 | | produced by cannabis plants grown under subsection (b) of |
2 | | Section 10-5, provided any amount of cannabis produced in |
3 | | excess of 30 grams of raw cannabis or its equivalent must |
4 | | remain secured within the residence or residential |
5 | | property in which it was grown. |
6 | | (b) For a person who is 21 years of age or older and who is |
7 | | not a resident of this State, the possession limit is: |
8 | | (1) 15 grams of cannabis flower; |
9 | | (2) 2.5 grams of cannabis concentrate; and |
10 | | (3) 250 milligrams of THC contained in a |
11 | | cannabis-infused product. |
12 | | (c) The possession limits found in subsections (a) and (b) |
13 | | of this Section are to be considered cumulative. |
14 | | (d) No person shall knowingly obtain, seek to obtain, or |
15 | | possess an amount of cannabis from a dispensing organization or |
16 | | craft grower that would cause him or her to exceed the |
17 | | possession limit under this Section, including cannabis that is |
18 | | cultivated by a person under this Act or obtained under the |
19 | | Compassionate Use of Medical Cannabis Pilot Program Act. |
20 | | Section 10-15. Persons under 21 years of age. |
21 | | (a) Nothing in this Act is intended to permit the transfer |
22 | | of cannabis, with or without remuneration, to a person under 21 |
23 | | years of age, or to allow a person under 21 years of age to |
24 | | purchase, possess, use, process, transport, grow, or consume |
25 | | cannabis except where authorized by the Compassionate Use of |
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1 | | Medical Cannabis Pilot Program Act or by the Community College |
2 | | Cannabis Vocational Pilot Program. |
3 | | (b) Notwithstanding any other provisions of law |
4 | | authorizing the possession of medical cannabis, nothing in this |
5 | | Act authorizes a person who is under 21 years of age to possess |
6 | | cannabis. A person under 21 years of age with cannabis in his |
7 | | or her possession is guilty of a civil law violation as |
8 | | outlined in paragraph (a) of Section 4 of the Cannabis Control |
9 | | Act. |
10 | | (c) If the person under the age of 21 was in a motor |
11 | | vehicle at the time of the offense, the Secretary of State may |
12 | | suspend or revoke the driving privileges of any person for a |
13 | | violation of this Section under Section 6-206 of the Illinois |
14 | | Vehicle Code and the rules adopted under it. |
15 | | (d) It is unlawful for any parent or guardian to knowingly |
16 | | permit his or her residence, any other private property under |
17 | | his or her control, or any vehicle, conveyance, or watercraft |
18 | | under his or her control to be used by an invitee of the |
19 | | parent's child or the guardian's ward, if the invitee is under |
20 | | the age of 21, in a manner that constitutes a violation of this |
21 | | Section. A parent or guardian is deemed to have knowingly |
22 | | permitted his or her residence, any other private property |
23 | | under his or her control, or any vehicle, conveyance, or |
24 | | watercraft under his or her control to be used in violation of |
25 | | this Section if he or she knowingly authorizes or permits |
26 | | consumption of cannabis by underage invitees. Any person who |
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1 | | violates this subsection (d) is guilty of a Class A misdemeanor |
2 | | and the person's sentence shall include, but shall not be |
3 | | limited to, a fine of not less than $500. If a violation of |
4 | | this subsection (d) directly or indirectly results in great |
5 | | bodily harm or death to any person, the person violating this |
6 | | subsection is guilty of a Class 4 felony. In this subsection |
7 | | (d), where the residence or other property has an owner and a |
8 | | tenant or lessee, the trier of fact may infer that the |
9 | | residence or other property is occupied only by the tenant or |
10 | | lessee. |
11 | | Section 10-20. Identification; false identification; |
12 | | penalty. |
13 | | (a) To protect personal privacy, the Department of |
14 | | Financial and Professional Regulation shall not require a |
15 | | purchaser to provide a dispensing organization with personal |
16 | | information other than government-issued identification to |
17 | | determine the purchaser's age, and a dispensing organization |
18 | | shall not obtain and record personal information about a |
19 | | purchaser without the purchaser's consent. A dispensing |
20 | | organization shall use an electronic reader or electronic |
21 | | scanning device to scan a purchaser's government-issued |
22 | | identification, if applicable, to determine the purchaser's |
23 | | age and the validity of the identification. Any identifying or |
24 | | personal information of a purchaser obtained or received in |
25 | | accordance with this Section shall not be retained, used, |
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1 | | shared or disclosed for any purpose except as authorized by |
2 | | this Act. |
3 | | (b) A person who is under 21 years of age may not present |
4 | | or offer to a cannabis business establishment or the cannabis |
5 | | business establishment's principal or employee any written or |
6 | | oral evidence of age that is false, fraudulent, or not actually |
7 | | the person's own, for the purpose of: |
8 | | (1) purchasing, attempting to purchase, or otherwise |
9 | | obtaining or attempting to obtain cannabis or any cannabis |
10 | | product; or |
11 | | (2) gaining access to a cannabis business |
12 | | establishment. |
13 | | (c) A violation of this Section is a Class A misdemeanor |
14 | | consistent with Section 6-20 of the Liquor Control Act of 1934. |
15 | | (d) The Secretary of State may suspend or revoke the |
16 | | driving privileges of any person for a violation of this |
17 | | Section under Section 6-206 of the Illinois Vehicle Code and |
18 | | the rules adopted under it. |
19 | | (e) No agent or employee of the licensee shall be |
20 | | disciplined or discharged for selling or furnishing cannabis or |
21 | | cannabis products to a person under 21 years of age if the |
22 | | agent or employee demanded and was shown, before furnishing |
23 | | cannabis or cannabis products to a person under 21 years of |
24 | | age, adequate written evidence of age and identity of the |
25 | | person. This subsection (e) does not apply if the agent or |
26 | | employee accepted the written evidence knowing it to be false |
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1 | | or fraudulent. Adequate written evidence of age and identity of |
2 | | the person is a document issued by a federal, State, county, or |
3 | | municipal government, or subdivision or agency thereof, |
4 | | including, but not limited to, a motor vehicle operator's |
5 | | license, a registration certificate issued under the Military |
6 | | Selective Service Act, or an identification card issued to a |
7 | | member of the Armed Forces. Proof that the licensee or his or |
8 | | her employee or agent was shown and reasonably relied upon such |
9 | | written evidence in any transaction forbidden by this Section |
10 | | is an affirmative defense in any criminal prosecution therefor |
11 | | or to any proceedings for the suspension or revocation of any |
12 | | license based thereon. |
13 | | Section 10-25. Immunities and presumptions related to the |
14 | | use of cannabis by purchasers. |
15 | | (a) A purchaser who is 21 years of age or older is not |
16 | | subject to arrest, prosecution, denial of any right or |
17 | | privilege, or other punishment including, but not limited to, |
18 | | any civil penalty or disciplinary action taken by an |
19 | | occupational or professional licensing board, based solely on |
20 | | the use of cannabis if (1) the purchaser possesses an amount of |
21 | | cannabis that does not exceed the possession limit under |
22 | | Section 10-10 and, if the purchaser is licensed, certified, or |
23 | | registered to practice any trade or profession under any Act |
24 | | and (2) the use of cannabis does not impair that person when he |
25 | | or she is engaged in the practice of the profession for which |
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1 | | he or she is licensed, certified, or registered. |
2 | | (b) A purchaser 21 years of age or older is not subject to |
3 | | arrest, prosecution, denial of any right or privilege, or other |
4 | | punishment, including, but not limited to, any civil penalty or |
5 | | disciplinary action taken by an occupational or professional |
6 | | licensing board, based solely for (i) selling cannabis |
7 | | paraphernalia if employed and licensed as a dispensing agent by |
8 | | a dispensing organization or (ii) being in the presence or |
9 | | vicinity of the use of cannabis as allowed under this Act. |
10 | | (c) Mere possession of, or application for, an agent |
11 | | identification card or license does not constitute probable |
12 | | cause or reasonable suspicion to believe that a crime has been |
13 | | committed, nor shall it be used as the sole basis to support |
14 | | the search of the person, property, or home of the person |
15 | | possessing or applying for the agent identification card. The |
16 | | possession of, or application for, an agent identification card |
17 | | does not preclude the existence of probable cause if probable |
18 | | cause exists based on other grounds. |
19 | | (d) No person employed by the State of Illinois shall be |
20 | | subject to criminal or civil penalties for taking any action in |
21 | | good faith in reliance on this Act when acting within the scope |
22 | | of his or her employment. Representation and indemnification |
23 | | shall be provided to State employees as set forth in Section 2 |
24 | | of the State Employee Indemnification Act. |
25 | | (e) No law enforcement or correctional agency, nor any |
26 | | person employed by a law enforcement or correctional agency, |
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1 | | shall be subject to criminal or civil liability, except for |
2 | | willful and wanton misconduct, as a result of taking any action |
3 | | within the scope of the official duties of the agency or person |
4 | | to prohibit or prevent the possession or use of cannabis by a |
5 | | person incarcerated at a correctional facility, jail, or |
6 | | municipal lockup facility, on parole or mandatory supervised |
7 | | release, or otherwise under the lawful jurisdiction of the |
8 | | agency or person. |
9 | | (f) For purposes of receiving medical care, including organ |
10 | | transplants, a person's use of cannabis under this Act does not |
11 | | constitute the use of an illicit substance or otherwise |
12 | | disqualify a person from medical care. |
13 | | Section 10-30. Discrimination prohibited. |
14 | | (a) Neither the presence of cannabinoid components or |
15 | | metabolites in a person's bodily fluids nor possession of |
16 | | cannabis-related paraphernalia, nor conduct related to the use |
17 | | of cannabis or the participation in cannabis-related |
18 | | activities lawful under this Act by a custodial or noncustodial |
19 | | parent, grandparent, legal guardian, foster parent, or other |
20 | | person charged with the well-being of a child, shall form the |
21 | | sole or primary basis or supporting basis for any action or |
22 | | proceeding by a child welfare agency or in a family or juvenile |
23 | | court, any adverse finding, adverse evidence, or restriction of |
24 | | any right or privilege in a proceeding related to adoption of a |
25 | | child, acting as a foster parent of a child, or a person's |
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1 | | fitness to adopt a child or act as a foster parent of a child, |
2 | | or serve as the basis of any adverse finding, adverse evidence, |
3 | | or restriction of any right of privilege in a proceeding |
4 | | related to guardianship, conservatorship, trusteeship, the |
5 | | execution of a will, or the management of an estate, unless the |
6 | | person's actions in relation to cannabis created an |
7 | | unreasonable danger to the safety of the minor or otherwise |
8 | | show the person to not be competent as established by clear and |
9 | | convincing evidence. This subsection applies only to conduct |
10 | | protected under this Act. |
11 | | (b) No landlord may be penalized or denied any benefit |
12 | | under State law for leasing to a person who uses cannabis under |
13 | | this Act. |
14 | | (c) Nothing in this Act may be construed to require any |
15 | | person or establishment in lawful possession of property to |
16 | | allow a guest, client, lessee, customer, or visitor to use |
17 | | cannabis on or in that property. |
18 | | Section 10-35. Limitations and penalties. |
19 | | (a) This Act does not permit any person to engage in, and |
20 | | does not prevent the imposition of any civil, criminal, or |
21 | | other penalties for engaging in, any of the following conduct: |
22 | | (1) undertaking any task under the influence of |
23 | | cannabis when doing so would constitute negligence, |
24 | | professional malpractice, or professional misconduct; |
25 | | (2) possessing cannabis: |
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1 | | (A) in a school bus, unless permitted for a |
2 | | qualifying patient or caregiver pursuant to the |
3 | | Compassionate Use of Medical Cannabis Pilot Program |
4 | | Act; |
5 | | (B) on the grounds of any preschool or primary or |
6 | | secondary school, unless permitted for a qualifying |
7 | | patient or caregiver pursuant to the Compassionate Use |
8 | | of Medical Cannabis Pilot Program Act; |
9 | | (C) in any correctional facility; |
10 | | (D) in a vehicle not open to the public unless the |
11 | | cannabis is in a reasonably secured, sealed container |
12 | | and reasonably inaccessible while the vehicle is |
13 | | moving; or |
14 | | (E) in a private residence that is used at any time |
15 | | to provide licensed child care or other similar social |
16 | | service care on the premises; |
17 | | (3) using cannabis: |
18 | | (A) in a school bus, unless permitted for a |
19 | | qualifying patient or caregiver pursuant to the |
20 | | Compassionate Use of Medical Cannabis Pilot Program |
21 | | Act; |
22 | | (B) on the grounds of any preschool or primary or |
23 | | secondary school, unless permitted for a qualifying |
24 | | patient or caregiver pursuant to the Compassionate Use |
25 | | of Medical Cannabis Pilot Program Act; |
26 | | (C) in any correctional facility; |
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1 | | (D) in any motor vehicle; |
2 | | (E) in a private residence that is used at any time |
3 | | to provide licensed child care or other similar social |
4 | | service care on the premises; |
5 | | (F) in any public place; or |
6 | | (G) knowingly in close physical proximity to |
7 | | anyone under 21 years of age who is not a registered |
8 | | medical cannabis patient under the Compassionate Use |
9 | | of Medical Cannabis Pilot Program Act; |
10 | | (4) smoking cannabis in any place where smoking is |
11 | | prohibited under the Smoke Free Illinois Act; |
12 | | (5) operating, navigating, or being in actual physical |
13 | | control of any motor vehicle, aircraft, or motorboat while |
14 | | using or under the influence of cannabis in violation of |
15 | | Section 11-501 or 11-502.1 of the Illinois Vehicle Code; |
16 | | (6) facilitating the use of cannabis by any person who |
17 | | is not allowed to use cannabis under this Act or the |
18 | | Compassionate Use of Medical Cannabis Pilot Program Act; |
19 | | (7) transferring cannabis to any person contrary to |
20 | | this Act or the Compassionate Use of Medical Cannabis Pilot |
21 | | Program Act; |
22 | | (8) the use of cannabis by a law enforcement officer, |
23 | | corrections officer, probation officer, or firefighter |
24 | | while on duty; or |
25 | | (9) the use of cannabis by a person who has a school |
26 | | bus permit or a Commercial Driver's License while on duty. |
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1 | | As used in this Section, "public place" means any place |
2 | | where a person could reasonably be expected to be observed by |
3 | | others. "Public place" includes all parts of buildings owned in |
4 | | whole or in part, or leased, by the State or a unit of local |
5 | | government. "Public place" does not include a private residence |
6 | | unless the private residence is used to provide licensed child |
7 | | care, foster care, or other similar social service care on the |
8 | | premises. |
9 | | (b) Nothing in this Act shall be construed to prevent the |
10 | | arrest or prosecution of a person for reckless driving or |
11 | | driving under the influence of cannabis if probable cause |
12 | | exists. |
13 | | (c) Nothing in this Act shall prevent a private business |
14 | | from restricting or prohibiting the use of cannabis on its |
15 | | property, including areas where motor vehicles are parked. |
16 | | (d) Nothing in this Act shall require an individual or |
17 | | business entity to violate the provisions of federal law, |
18 | | including colleges or universities that must abide by the |
19 | | Drug-Free Schools and Communities Act Amendments of 1989, that |
20 | | require campuses to be drug free. |
21 | | Section 10-40. Restore, Reinvest, and Renew Program. |
22 | | (a) The General Assembly finds that in order to address the |
23 | | disparities described below, aggressive approaches and |
24 | | targeted resources to support local design and control of |
25 | | community-based responses to these outcomes are required. To |
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1 | | carry out this intent, the Restore, Reinvest, and Renew (R3) |
2 | | Program is created for the following purposes: |
3 | | (1) to directly address the impact of economic |
4 | | disinvestment, violence, and the historical overuse of |
5 | | criminal justice responses to community and individual |
6 | | needs by providing resources to support local design and |
7 | | control of community-based responses to these impacts; |
8 | | (2) to substantially reduce both the total amount of |
9 | | gun violence and concentrated poverty in this State; |
10 | | (3) to protect communities from gun violence through |
11 | | targeted investments and intervention programs, including |
12 | | economic growth and improving family violence prevention, |
13 | | community trauma treatment rates, gun injury victim |
14 | | services, and public health prevention activities; |
15 | | (4) to promote employment infrastructure and capacity |
16 | | building related to the social determinants of health in |
17 | | the eligible community areas. |
18 | | (b) In this Section, "Authority" means the Illinois |
19 | | Criminal Justice Information Authority in coordination with |
20 | | the Justice, Equity, and Opportunity Initiative of the |
21 | | Lieutenant Governor's Office. |
22 | | (c) Eligibility of R3 Areas. Within 180 days after the
|
23 | | effective date of this Act, the Authority shall identify as
|
24 | | eligible, areas in this State by way of historically recognized
|
25 | | geographic boundaries, to be designated by the Restore, |
26 | | Reinvest, and Renew Program Board as R3 Areas and therefore |
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1 | | eligible
to apply for R3 funding. Local groups within R3 Areas |
2 | | will be
eligible to apply for State funding through the |
3 | | Restore, Reinvest, and Renew Program Board. Qualifications for |
4 | | designation as an R3 Area are as follows: |
5 | | (1) Based on an analysis of data, communities in this |
6 | | State that are high need, underserved, disproportionately |
7 | | impacted by historical economic disinvestment, and ravaged |
8 | | by violence as indicated by the highest rates of gun |
9 | | injury, unemployment, child poverty rates, and commitments |
10 | | to and returns from the Illinois Department of Corrections. |
11 | | (2) The Authority shall send to the Legislative Audit |
12 | | Commission and make publicly available its analysis and |
13 | | identification of eligible R3 Areas and shall recalculate |
14 | | he eligibility data every 4 years. On an annual basis, the |
15 | | Authority shall analyze data and indicate if data covering |
16 | | any R3 Area or portion of an Area has, for 4 consecutive |
17 | | years, substantially deviated from the average of |
18 | | statewide data on which the original calculation was made |
19 | | to determine the Areas, including disinvestment, violence, |
20 | | gun injury, unemployment, child poverty rates, or |
21 | | commitments to or returns from the Illinois Department of |
22 | | Corrections. |
23 | | (d) The Restore, Reinvest, and Renew Program Board shall |
24 | | encourage collaborative partnerships within each R3 Area to |
25 | | minimize multiple partnerships per Area. |
26 | | (e) The Restore, Reinvest, and Renew Program Board is |
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1 | | created and shall reflect the diversity of the State of |
2 | | Illinois, including geographic, racial, and ethnic diversity. |
3 | | Using the data provided by the Authority, the Restore, |
4 | | Reinvest, and Renew Program Board shall be responsible for |
5 | | designating the R3 Area boundaries and for the selection and |
6 | | oversight of R3 Area grantees. The Restore, Reinvest, and Renew |
7 | | Program Board ex officio members shall, within 4 months after |
8 | | the effective date of this Act, convene the Board to appoint a |
9 | | full Restore, Reinvest, and Renew Program Board and oversee, |
10 | | provide guidance to, and develop an administrative structure |
11 | | for the R3 Program. |
12 | | (1) The ex officio members are: |
13 | | (A) The Lieutenant Governor, or his or her |
14 | | designee, who shall serve as chair. |
15 | | (B) The Attorney General, or his or her |
16 | | designee. |
17 | | (C) The Director of Commerce and Economic |
18 | | Opportunity, or his or her designee. |
19 | | (D) The Director of Public Health, or his or |
20 | | her designee. |
21 | | (E) The Director of Corrections, or his or her |
22 | | designee. |
23 | | (F) The Executive Director of the Illinois |
24 | | Criminal Justice Information Authority, or his or |
25 | | her designee. |
26 | | (G) The Director of Employment Security, or |
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1 | | his or her designee. |
2 | | (H) The Secretary of Human Services, or his or |
3 | | her designee. |
4 | | (I) A member of the Senate, designated by the |
5 | | President of the Senate. |
6 | | (J) A member of the House of Representatives, |
7 | | designated by the Speaker of the House of |
8 | | Representatives. |
9 | | (K) A member of the Senate, designated by the |
10 | | Minority Leader of the Senate. |
11 | | (L) A member of the House of Representatives, |
12 | | designated by the Minority Leader of the House of |
13 | | Representatives. |
14 | | (2) Within 90 days after the R3 Areas have been |
15 | | designated by the Restore, Reinvest, and Renew Program |
16 | | Board, the following members shall be appointed to the |
17 | | Board by the R3 board chair: |
18 | | (A) public officials of municipal geographic |
19 | | jurisdictions in the State that include an R3 Area, or |
20 | | their designees; |
21 | | (B) 4 community-based providers or community |
22 | | development organization representatives who provide |
23 | | services to treat violence and address the social |
24 | | determinants of health, or promote community |
25 | | investment, including, but not limited to, services |
26 | | such as job placement and training, educational |
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1 | | services, workforce development programming, and |
2 | | wealth building. The community-based organization |
3 | | representatives shall work primarily in jurisdictions |
4 | | that include an R3 Area and no more than 2 |
5 | | representatives shall work primarily in Cook County. |
6 | | At least one of the community-based providers shall |
7 | | have expertise in providing services to an immigrant |
8 | | population; |
9 | | (C) Two experts in the field of violence reduction; |
10 | | (D) One male who has previously been incarcerated |
11 | | and is over the age of 24 at time of appointment; |
12 | | (E) One female who has previously been |
13 | | incarcerated and is over the age of 24 at time of |
14 | | appointment; |
15 | | (F) Two individuals who have previously been |
16 | | incarcerated and are between the ages of 17 and 24 at |
17 | | time of appointment. |
18 | | As used in this paragraph (2), "an individual who has |
19 | | been previously incarcerated" means a person who has been |
20 | | convicted of or pled guilty to one or more felonies, who |
21 | | was sentenced to a term of imprisonment, and who has |
22 | | completed his or her sentence. Board members shall serve |
23 | | without compensation and may be reimbursed for reasonable |
24 | | expenses incurred in the performance of their duties from |
25 | | funds appropriated for that purpose. Once all its members |
26 | | have been appointed as outlined in items (A) through (F) of |
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1 | | this paragraph (2), the Board may exercise any power, |
2 | | perform any function, take any action, or do anything in |
3 | | furtherance of its purposes and goals upon the appointment |
4 | | of a quorum of its members. The Board terms of the non-ex |
5 | | officio and General Assembly Board members shall end 4 |
6 | | years from the date of appointment. |
7 | | (f) Within 12 months after the effective date of this Act, |
8 | | the Board shall: |
9 | | (1) develop a process to solicit applications from |
10 | | eligible R3 Areas; |
11 | | (2) develop a standard template for both planning and |
12 | | implementation activities to be submitted by R3 Areas to |
13 | | the State; |
14 | | (3) identify resources sufficient to support the full |
15 | | administration and evaluation of the R3 Program, including |
16 | | building and sustaining core program capacity at the |
17 | | community and State levels; |
18 | | (4) review R3 Area grant applications and proposed |
19 | | agreements and approve the distribution of resources; |
20 | | (5) develop a performance measurement system that |
21 | | focuses on positive outcomes; |
22 | | (6) develop a process to support ongoing monitoring and |
23 | | evaluation of R3 programs; and |
24 | | (7) deliver an annual report to the General Assembly |
25 | | and to the Governor to be posted on the Governor's Office |
26 | | and General Assembly websites and provide to the public an |
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1 | | annual report on its progress. |
2 | | (g) R3 Area grants. |
3 | | (1) Grant funds shall be awarded by the Illinois |
4 | | Criminal Justice Information Authority, in coordination |
5 | | with the R3 board, based on the likelihood that the plan |
6 | | will achieve the outcomes outlined in subsection (a) and |
7 | | consistent with the requirements of the Grant |
8 | | Accountability and Transparency Act. The R3 Program shall |
9 | | also facilitate the provision of training and technical |
10 | | assistance for capacity building within and among R3 Areas. |
11 | | (2) R3 Program Board grants shall be used to address |
12 | | economic development, violence prevention services, |
13 | | re-entry services, youth development, and civil legal aid. |
14 | | (3) The Restore, Reinvest, and Renew Program Board and |
15 | | the R3 Area grantees shall, within a period of no more than |
16 | | 120 days from the completion of planning activities |
17 | | described in this Section, finalize an agreement on the |
18 | | plan for implementation. Implementation activities may: |
19 | | (A) have a basis in evidence or best practice |
20 | | research or have evaluations demonstrating the |
21 | | capacity to address the purpose of the program in |
22 | | subsection (a); |
23 | | (B) collect data from the inception of planning |
24 | | activities through implementation, with data |
25 | | collection technical assistance when needed, including |
26 | | cost data and data related to identified meaningful |
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1 | | short-term, mid-term, and long-term goals and metrics; |
2 | | (C) report data to the Restore, Reinvest, and Renew |
3 | | Program Board biannually; and |
4 | | (D) report information as requested by the R3 |
5 | | Program Board. |
6 | | Section 10-50. Employment; employer liability. |
7 | | (a) Nothing in this Act shall prohibit an employer from |
8 | | adopting reasonable zero tolerance or drug free workplace |
9 | | policies, or employment policies concerning drug testing, |
10 | | smoking, consumption, storage, or use of cannabis in the |
11 | | workplace or while on call provided that the policy is applied |
12 | | in a nondiscriminatory manner. |
13 | | (b) Nothing in this Act shall require an employer to permit |
14 | | an employee to be under the influence of or use cannabis in the |
15 | | employer's workplace or while performing the employee's job |
16 | | duties or while on call. |
17 | | (c) Nothing in this Act shall limit or prevent an employer |
18 | | from disciplining an employee or terminating employment of an |
19 | | employee for violating an employer's employment policies or |
20 | | workplace drug policy. |
21 | | (d) An employer may consider an employee to be impaired or |
22 | | under the influence of cannabis if the employer has a good |
23 | | faith belief that an employee manifests specific, articulable |
24 | | symptoms while working that decrease or lessen the employee's |
25 | | performance of the duties or tasks of the employee's job |
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1 | | position, including symptoms of the employee's speech, |
2 | | physical dexterity, agility, coordination, demeanor, |
3 | | irrational or unusual behavior, or negligence or carelessness |
4 | | in operating equipment or machinery; disregard for the safety |
5 | | of the employee or others, or involvement in any accident that |
6 | | results in serious damage to equipment or property; disruption |
7 | | of a production or manufacturing process; or carelessness that |
8 | | results in any injury to the employee or others. If an employer |
9 | | elects to discipline an employee on the basis that the employee |
10 | | is under the influence or impaired by cannabis, the employer |
11 | | must afford the employee a reasonable opportunity to contest |
12 | | the basis of the determination. |
13 | | (e) Nothing in this Act shall be construed to create or |
14 | | imply a cause of action for any person against an employer for: |
15 | | (1) actions, including but not limited to subjecting an |
16 | | employee or applicant to reasonable drug and alcohol |
17 | | testing under the employer's workplace drug policy, |
18 | | including an employee's refusal to be tested or to |
19 | | cooperate in testing procedures or disciplining or |
20 | | termination of employment, based on the employer's good |
21 | | faith belief that an employee used or possessed cannabis in |
22 | | the employer's workplace or while performing the |
23 | | employee's job duties or while on call in violation of the |
24 | | employer's employment policies; |
25 | | (2) actions, including discipline or termination of |
26 | | employment, based on the employer's good faith belief that |
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1 | | an employee was impaired as a result of the use of |
2 | | cannabis, or under the influence of cannabis, while at the |
3 | | employer's workplace or while performing the employee's |
4 | | job duties or while on call in violation of the employer's |
5 | | workplace drug policy; or |
6 | | (3) injury, loss, or liability to a third party if the |
7 | | employer neither knew nor had reason to know that the |
8 | | employee was impaired. |
9 | | (f) Nothing in this Act shall be construed to enhance or |
10 | | diminish protections afforded by any other law, including but |
11 | | not limited to the Compassionate Use of Medical Cannabis Pilot |
12 | | Program Act or the Opioid Alternative Pilot Program. |
13 | | (g) Nothing in this Act shall be construed to interfere |
14 | | with any federal, State, or local restrictions on employment |
15 | | including, but not limited to, the United States Department of |
16 | | Transportation regulation 49 CFR 40.151(e) or impact an |
17 | | employer's ability to comply with federal or State law or cause |
18 | | it to lose a federal or State contract or funding. |
19 | | (h) As used in this Section, "workplace" means the |
20 | | employer's premises, including any building, real property, |
21 | | and parking area under the control of the employer or area used |
22 | | by an employee while in performance of the employee's job |
23 | | duties, and vehicles, whether leased, rented, or owned. |
24 | | "Workplace" may be further defined by the employer's written |
25 | | employment policy, provided that the policy is consistent with |
26 | | this Section. |
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1 | | (i) For purposes of this Section, an employee is deemed "on |
2 | | call" when such employee is scheduled with at least 24 hours' |
3 | | notice by his or her employer to be on standby or otherwise |
4 | | responsible for performing tasks related to his or her |
5 | | employment either at the employer's premises or other |
6 | | previously designated location by his or her employer or |
7 | | supervisor to perform a work-related task. |
8 | | ARTICLE 15. |
9 | | LICENSE AND REGULATION OF DISPENSING ORGANIZATIONS |
10 | | Section 15-5. Authority. |
11 | | (a) In this Article, "Department" means the Department of |
12 | | Financial and Professional Regulation. |
13 | | (b) It is the duty of the Department to administer and |
14 | | enforce the provisions of this Act relating to the licensure |
15 | | and oversight of dispensing organizations and dispensing |
16 | | organization agents unless otherwise provided in this Act. |
17 | | (c) No person shall operate a dispensing organization for |
18 | | the purpose of serving purchasers of cannabis or cannabis |
19 | | products without a license issued under this Article by the |
20 | | Department. No person shall be an officer, director, manager, |
21 | | or employee of a dispensing organization without having been |
22 | | issued a dispensing organization agent card by the Department. |
23 | | (d) Subject to the provisions of this Act, the Department |
24 | | may exercise the following powers and duties: |
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1 | | (1) Prescribe forms to be issued for the administration |
2 | | and enforcement of this Article. |
3 | | (2) Examine, inspect, and investigate the premises, |
4 | | operations, and records of dispensing organization |
5 | | applicants and licensees. |
6 | | (3) Conduct investigations of possible violations of |
7 | | this Act pertaining to dispensing organizations and |
8 | | dispensing organization agents. |
9 | | (4) Conduct hearings on proceedings to refuse to issue |
10 | | or renew licenses or to revoke, suspend, place on |
11 | | probation, reprimand, or otherwise discipline a license |
12 | | under this Article or take other nondisciplinary action. |
13 | | (5) Adopt rules required for the administration of this |
14 | | Article. |
15 | | Section 15-10. Medical cannabis dispensing organization |
16 | | exemption. This Article does not apply to medical cannabis |
17 | | dispensing organizations registered under the Compassionate |
18 | | Use of Medical Cannabis Pilot Program Act, except where |
19 | | otherwise specified. |
20 | | Section 15-15. Early Approval Adult Use Dispensing |
21 | | Organization License. |
22 | | (a) Any medical cannabis dispensing organization holding a |
23 | | valid registration under the Compassionate Use of Medical |
24 | | Cannabis Pilot Program Act as of the effective date of this Act |
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1 | | may, within 60 days of the effective date of this Act, apply to |
2 | | the Department for an Early Approval Adult Use Dispensing |
3 | | Organization License to serve purchasers at any medical |
4 | | cannabis dispensing location in operation on the effective date |
5 | | of this Act, pursuant to this Section. |
6 | | (b) A medical cannabis dispensing organization seeking |
7 | | issuance of an Early Approval Adult Use Dispensing Organization |
8 | | License to serve purchasers at any medical cannabis dispensing |
9 | | location in operation as of the effective date of this Act |
10 | | shall submit an application on forms provided by the |
11 | | Department. The application must be submitted by the same |
12 | | person or entity that holds the medical cannabis dispensing |
13 | | organization registration and include the following: |
14 | | (1) Payment of a nonrefundable fee of $30,000 to be |
15 | | deposited into the Cannabis Regulation Fund; |
16 | | (2) Proof of registration as a medical cannabis |
17 | | dispensing organization that is in good standing; |
18 | | (3) Certification that the applicant will comply with |
19 | | the requirements contained in the Compassionate Use of |
20 | | Medical Cannabis Pilot Program Act except as provided in |
21 | | this Act; |
22 | | (4) The legal name of the dispensing organization; |
23 | | (5) The physical address of the dispensing |
24 | | organization; |
25 | | (6) The name, address, social security number, and date |
26 | | of birth of each principal officer and board member of the |
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1 | | dispensing organization, each of whom must be at least 21 |
2 | | years of age; |
3 | | (7) A nonrefundable Cannabis Business Development Fee |
4 | | equal to 3% of the dispensing organization's total sales |
5 | | between June 1, 2018 to June 1, 2019, or $100,000, |
6 | | whichever is less, to be deposited into the Cannabis |
7 | | Business Development Fund; and |
8 | | (8) Identification of one of the following Social |
9 | | Equity Inclusion Plans to be completed by March 31, 2021: |
10 | | (A) Make a contribution of 3% of total sales from |
11 | | June 1, 2018 to June 1, 2019, or $100,000, whichever is |
12 | | less, to the Cannabis Business Development Fund. This |
13 | | is in addition to the fee required by item (7) of this |
14 | | subsection (b); |
15 | | (B) Make a grant of 3% of total sales from June 1, |
16 | | 2018 to June 1, 2019, or $100,000, whichever is less, |
17 | | to a cannabis industry training or education program at |
18 | | an Illinois community college as defined in the Public |
19 | | Community College Act; |
20 | | (C) Make a donation of $100,000 or more to a |
21 | | program that provides job training services to persons |
22 | | recently incarcerated or that operates in a |
23 | | Disproportionately Impacted Area; |
24 | | (D) Participate as a host in a cannabis business |
25 | | establishment incubator program approved by the |
26 | | Department of Commerce and Economic Opportunity, and |
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1 | | in which an Early Approval Adult Use Dispensing |
2 | | Organization License holder agrees to provide a loan of |
3 | | at least $100,000 and mentorship to incubate a licensee |
4 | | that qualifies as a Social Equity Applicant for at |
5 | | least a year. As used in this Section, "incubate" means |
6 | | providing direct financial assistance and training |
7 | | necessary to engage in licensed cannabis industry |
8 | | activity similar to that of the host licensee. The |
9 | | Early Approval Adult Use Dispensing Organization |
10 | | License holder or the same entity holding any other |
11 | | licenses issued pursuant to this Act shall not take an |
12 | | ownership stake of greater than 10% in any business |
13 | | receiving incubation services to comply with this |
14 | | subsection. If an Early Approval Adult Use Dispensing |
15 | | Organization License holder fails to find a business to |
16 | | incubate to comply with this subsection before its |
17 | | Early Approval Adult Use Dispensing Organization |
18 | | License expires, it may opt to meet the requirement of |
19 | | this subsection by completing another item from this |
20 | | subsection; or |
21 | | (E) Participate in a sponsorship program for at |
22 | | least 2 years approved by the Department of Commerce |
23 | | and Economic Opportunity in which an Early Approval |
24 | | Adult Use Dispensing Organization License holder |
25 | | agrees to provide an interest-free loan of at least |
26 | | $200,000 to a Social Equity Applicant. The sponsor |
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1 | | shall not take an ownership stake in any cannabis |
2 | | business establishment receiving sponsorship services |
3 | | to comply with this subsection. |
4 | | (c) The license fee required by paragraph (1) of subsection |
5 | | (b) of this Section shall be in addition to any license fee |
6 | | required for the renewal of a registered medical cannabis |
7 | | dispensing organization license. |
8 | | (d) Applicants must submit all required information, |
9 | | including the requirements in subsection (b) of this Section, |
10 | | to the Department. Failure by an applicant to submit all |
11 | | required information may result in the application being |
12 | | disqualified. |
13 | | (e) If the Department receives an application that fails to |
14 | | provide the required elements contained in subsection (b), the |
15 | | Department shall issue a deficiency notice to the applicant. |
16 | | The applicant shall have 10 calendar days from the date of the |
17 | | deficiency notice to submit complete information. Applications |
18 | | that are still incomplete after this opportunity to cure may be |
19 | | disqualified. |
20 | | (f) If an applicant meets all the requirements of |
21 | | subsection (b) of this Section, the Department shall issue the |
22 | | Early Approval Adult Use Dispensing Organization License |
23 | | within 14 days of receiving a completed application unless: |
24 | | (1) The licensee or a principal officer is delinquent |
25 | | in filing any required tax returns or paying any amounts |
26 | | owed to the State of Illinois; |
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1 | | (2) The Secretary of Financial and Professional |
2 | | Regulation determines there is reason, based on documented |
3 | | compliance violations, the licensee is not entitled to an |
4 | | Early Approval Adult Use Dispensing Organization License; |
5 | | or |
6 | | (3) Any principal officer fails to register and remain |
7 | | in compliance with this Act or the Compassionate Use of |
8 | | Medical Cannabis Pilot Program Act. |
9 | | (g) A registered medical cannabis dispensing organization |
10 | | that obtains an Early Approval Adult Use Dispensing |
11 | | Organization License may begin selling cannabis, |
12 | | cannabis-infused products, paraphernalia, and related items to |
13 | | purchasers under the rules of this Act no sooner than January |
14 | | 1, 2020. |
15 | | (h) A dispensing organization holding a medical cannabis |
16 | | dispensing organization license issued under the Compassionate |
17 | | Use of Medical Cannabis Pilot Program Act must maintain an |
18 | | adequate supply of cannabis and cannabis-infused products for |
19 | | purchase by qualifying patients, caregivers, provisional |
20 | | patients, and Opioid Alternative Pilot Program participants. |
21 | | For the purposes of this subsection, "adequate supply" means a |
22 | | monthly inventory level that is comparable in type and quantity |
23 | | to those medical cannabis products provided to patients and |
24 | | caregivers on an average monthly basis for the 6 months before |
25 | | the effective date of this Act. |
26 | | (i) If there is a shortage of cannabis or cannabis-infused |
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1 | | products, a dispensing organization holding both a dispensing |
2 | | organization license under the Compassionate Use of Medical |
3 | | Cannabis Pilot Program Act and this Act shall prioritize |
4 | | serving qualifying patients, caregivers, provisional patients, |
5 | | and Opioid Alternative Pilot Program participants before |
6 | | serving purchasers. |
7 | | (j) Notwithstanding any law or rule to the contrary, a |
8 | | person that holds a medical cannabis dispensing organization |
9 | | license issued under the Compassionate Use of Medical Cannabis |
10 | | Pilot Program Act and an Early Approval Adult Use Dispensing |
11 | | Organization License may permit purchasers into a limited |
12 | | access area as that term is defined in administrative rules |
13 | | made under the authority in the Compassionate Use of Medical |
14 | | Cannabis Pilot Program Act. |
15 | | (k) An Early Approval Adult Use Dispensing Organization |
16 | | License is valid until March 31, 2021. A dispensing |
17 | | organization that obtains an Early Approval Adult Use |
18 | | Dispensing Organization License shall receive written or |
19 | | electronic notice 90 days before the expiration of the license |
20 | | that the license will expire, and inform the license holder |
21 | | that it may renew its Early Approval Adult Use Dispensing |
22 | | Organization License. The Department shall renew the Early |
23 | | Approval Adult Use Dispensing Organization License within 60 |
24 | | days of the renewal application being deemed complete if: |
25 | | (1) the dispensing organization submits an application |
26 | | and the required nonrefundable renewal fee of $30,000, to |
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1 | | be deposited into the Cannabis Regulation Fund; |
2 | | (2) the Department has not suspended or revoked the |
3 | | Early Approval Adult Use Dispensing Organization License |
4 | | or a medical cannabis dispensing organization license on |
5 | | the same premises for violations of this Act, the |
6 | | Compassionate Use of Medical Cannabis Pilot Program Act, or |
7 | | rules adopted pursuant to those Acts; and |
8 | | (3) the dispensing organization has completed a Social |
9 | | Equity Inclusion Plan as required by paragraph (8) of |
10 | | subsection (b) of this Section. |
11 | | (l) The Early Approval Adult Use Dispensing Organization |
12 | | License renewed pursuant to subsection (k) of this Section |
13 | | shall expire March 31, 2022. The Early Approval Adult Use |
14 | | Dispensing Organization Licensee shall receive written or |
15 | | electronic notice 90 days before the expiration of the license |
16 | | that the license will expire, and inform the license holder |
17 | | that it may apply for an Adult Use Dispensing Organization |
18 | | License. The Department shall grant an Adult Use Dispensing |
19 | | Organization License within 60 days of an application being |
20 | | deemed complete if the applicant has met all of the criteria in |
21 | | Section 15-36. |
22 | | (m) If a dispensary fails to submit an application for an |
23 | | Adult Use Dispensing Organization License before the |
24 | | expiration of the Early Approval Adult Use Dispensing |
25 | | Organization License pursuant to subsection (k) of this |
26 | | Section, the dispensing organization shall cease serving |
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1 | | purchasers and cease all operations until it receives an Adult |
2 | | Use Dispensing Organization License. |
3 | | (n) A dispensing organization agent who holds a valid |
4 | | dispensing organization agent identification card issued under |
5 | | the Compassionate Use of Medical Cannabis Pilot Program Act and |
6 | | is an officer, director, manager, or employee of the dispensing |
7 | | organization licensed under this Section may engage in all |
8 | | activities authorized by this Article to be performed by a |
9 | | dispensing organization agent. |
10 | | (o) All fees collected pursuant to this Section shall be |
11 | | deposited into the Cannabis Regulation Fund, unless otherwise |
12 | | specified. |
13 | | Section 15-20. Early Approval Adult Use Dispensing |
14 | | Organization License; secondary site. |
15 | | (a) If the Department suspends or revokes the Early |
16 | | Approval Adult Use Dispensing Organization License of a |
17 | | dispensing organization that also holds a medical cannabis |
18 | | dispensing organization license issued under the Compassionate |
19 | | Use of Medical Cannabis Pilot Program Act, the Department may |
20 | | consider the suspension or revocation as grounds to take |
21 | | disciplinary action against the medical cannabis dispensing |
22 | | organization license. |
23 | | (a-5) If, within 360 days of the effective date of this |
24 | | Act, a dispensing organization is unable to find a location |
25 | | within the BLS Regions prescribed in subsection (a) of this |
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1 | | Section in which to operate an Early Approval Adult Use |
2 | | Dispensing Organization at a secondary site because no |
3 | | jurisdiction within the prescribed area allows the operation of |
4 | | an Adult Use Cannabis Dispensing Organization, the Department |
5 | | of Financial and Professional Regulation may waive the |
6 | | geographic restrictions of subsection (a) of this Section and |
7 | | specify another BLS Region into which the dispensary may be |
8 | | placed. |
9 | | (b) Any medical cannabis dispensing organization holding a |
10 | | valid registration under the Compassionate Use of Medical |
11 | | Cannabis Pilot Program Act as of the effective date of this Act |
12 | | may, within 60 days of the effective date of this Act, apply to |
13 | | the Department for an Early Approval Adult Use Dispensing |
14 | | Organization License to operate a dispensing organization to |
15 | | serve purchasers at a secondary site not within 1,500 feet of |
16 | | another medical cannabis dispensing organization or adult use |
17 | | dispensing organization. The Early Approval Adult Use |
18 | | Dispensing Organization secondary site shall be within any BLS |
19 | | region that shares territory with the dispensing organization |
20 | | district to which the medical cannabis dispensing organization |
21 | | is assigned under the administrative rules for dispensing |
22 | | organizations under the Compassionate Use of Medical Cannabis |
23 | | Pilot Program Act. |
24 | | (c) A medical cannabis dispensing organization seeking |
25 | | issuance of an Early Approval Adult Use Dispensing Organization |
26 | | License at a secondary site to serve purchasers at a secondary |
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1 | | site as prescribed in subsection (b) of this Section shall |
2 | | submit an application on forms provided by the Department. The |
3 | | application must meet or include the following qualifications: |
4 | | (1) a payment of a nonrefundable application fee of |
5 | | $30,000; |
6 | | (2) proof of registration as a medical cannabis |
7 | | dispensing organization that is in good standing; |
8 | | (3) submission of the application by the same person or |
9 | | entity that holds the medical cannabis dispensing |
10 | | organization registration; |
11 | | (4) the legal name of the medical cannabis dispensing |
12 | | organization; |
13 | | (5) the physical address of the medical cannabis |
14 | | dispensing organization and the proposed physical address |
15 | | of the secondary site; |
16 | | (6) a copy of the current local zoning ordinance |
17 | | Sections relevant to dispensary operations and |
18 | | documentation of the approval, the conditional approval or |
19 | | the status of a request for zoning approval from the local |
20 | | zoning office that the proposed dispensary location is in |
21 | | compliance with the local zoning rules; |
22 | | (7) a plot plan of the dispensary drawn to scale. The |
23 | | applicant shall submit general specifications of the |
24 | | building exterior and interior layout; |
25 | | (8) a statement that the dispensing organization |
26 | | agrees to respond to the Department's supplemental |
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1 | | requests for information; |
2 | | (9) for the building or land to be used as the proposed |
3 | | dispensary: |
4 | | (A) if the property is not owned by the applicant, |
5 | | a written statement from the property owner and |
6 | | landlord, if any, certifying consent that the |
7 | | applicant may operate a dispensary on the premises; or |
8 | | (B) if the property is owned by the applicant, |
9 | | confirmation of ownership; |
10 | | (10) a copy of the proposed operating bylaws; |
11 | | (11) a copy of the proposed business plan that complies |
12 | | with the requirements in this Act, including, at a minimum, |
13 | | the following: |
14 | | (A) a description of services to be offered; and |
15 | | (B) a description of the process of dispensing |
16 | | cannabis; |
17 | | (12) a copy of the proposed security plan that complies |
18 | | with the requirements in this Article, including: |
19 | | (A) a description of the delivery process by which |
20 | | cannabis will be received from a transporting |
21 | | organization, including receipt of manifests and |
22 | | protocols that will be used to avoid diversion, theft, |
23 | | or loss at the dispensary acceptance point; and |
24 | | (B) the process or controls that will be |
25 | | implemented to monitor the dispensary, secure the |
26 | | premises, agents, patients, and currency, and prevent |
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1 | | the diversion, theft, or loss of cannabis; and |
2 | | (C) the process to ensure that access to the |
3 | | restricted access areas is restricted to, registered |
4 | | agents, service professionals, transporting |
5 | | organization agents, Department inspectors, and |
6 | | security personnel; |
7 | | (13) a proposed inventory control plan that complies |
8 | | with this Section; |
9 | | (14) the name, address, social security number, and |
10 | | date of birth of each principal officer and board member of |
11 | | the dispensing organization; each of those individuals |
12 | | shall be at least 21 years of age; |
13 | | (15) a nonrefundable Cannabis Business Development Fee |
14 | | equal to $200,000, to be deposited into the Cannabis |
15 | | Business Development Fund; and |
16 | | (16) a commitment to completing one of the following |
17 | | Social Equity Inclusion Plans in subsection (d). |
18 | | (d) Before receiving an Early Approval Adult Use Dispensing |
19 | | Organization License at a secondary site, a dispensing |
20 | | organization shall indicate the Social Equity Inclusion Plan |
21 | | that the applicant plans to achieve before the expiration of |
22 | | the Early Approval Adult Use Dispensing Organization License |
23 | | from the list below: |
24 | | (1) make a contribution of 3% of total sales from June |
25 | | 1, 2018 to June 1, 2019, or $100,000, whichever is less, to |
26 | | the Cannabis Business Development Fund. This is in addition |
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1 | | to the fee required by paragraph (16) of subsection (c) of |
2 | | this Section; |
3 | | (2) make a grant of 3% of total sales from June 1, 2018 |
4 | | to June 1, 2019, or $100,000, whichever is less, to a |
5 | | cannabis industry training or education program at an |
6 | | Illinois community college as defined in the Public |
7 | | Community College Act; |
8 | | (3) make a donation of $100,000 or more to a program |
9 | | that provides job training services to persons recently |
10 | | incarcerated or that operates in a Disproportionately |
11 | | Impacted Area; |
12 | | (4) participate as a host in a cannabis business |
13 | | establishment incubator program approved by the Department |
14 | | of Commerce and Economic Opportunity, and in which an Early |
15 | | Approval Adult Use Dispensing Organization License at a |
16 | | secondary site holder agrees to provide a loan of at least |
17 | | $100,000 and mentorship to incubate a licensee that |
18 | | qualifies as a Social Equity Applicant for at least a year. |
19 | | In this paragraph (4), "incubate" means providing direct |
20 | | financial assistance and training necessary to engage in |
21 | | licensed cannabis industry activity similar to that of the |
22 | | host licensee. The Early Approval Adult Use Dispensing |
23 | | Organization License holder or the same entity holding any |
24 | | other licenses issued under this Act shall not take an |
25 | | ownership stake of greater than 10% in any business |
26 | | receiving incubation services to comply with this |
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1 | | subsection. If an Early Approval Adult Use Dispensing |
2 | | Organization License at a secondary site holder fails to |
3 | | find a business to incubate in order to comply with this |
4 | | subsection before its Early Approval Adult Use Dispensing |
5 | | Organization License at a secondary site expires, it may |
6 | | opt to meet the requirement of this subsection by |
7 | | completing another item from this subsection before the |
8 | | expiration of its Early Approval Adult Use Dispensing |
9 | | Organization License at a secondary site to avoid a |
10 | | penalty; or |
11 | | (5) participate in a sponsorship program for at least 2 |
12 | | years approved by the Department of Commerce and Economic |
13 | | Opportunity in which an Early Approval Adult Use Dispensing |
14 | | Organization License at a secondary site holder agrees to |
15 | | provide an interest-free loan of at least $200,000 to a |
16 | | Social Equity Applicant. The sponsor shall not take an |
17 | | ownership stake of greater than 10% in any business |
18 | | receiving sponsorship services to comply with this |
19 | | subsection. |
20 | | (e) The license fee required by paragraph (1) of subsection |
21 | | (c) of this Section is in addition to any license fee required |
22 | | for the renewal of a registered medical cannabis dispensing |
23 | | organization license. |
24 | | (f) Applicants must submit all required information, |
25 | | including the requirements in subsection (c) of this Section, |
26 | | to the Department. Failure by an applicant to submit all |
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1 | | required information may result in the application being |
2 | | disqualified. |
3 | | (g) If the Department receives an application that fails to |
4 | | provide the required elements contained in subsection (c), the |
5 | | Department shall issue a deficiency notice to the applicant. |
6 | | The applicant shall have 10 calendar days from the date of the |
7 | | deficiency notice to submit complete information. Applications |
8 | | that are still incomplete after this opportunity to cure may be |
9 | | disqualified. |
10 | | (h) Once all required information and documents have been |
11 | | submitted, the Department will review the application. The |
12 | | Department may request revisions and retains final approval |
13 | | over dispensary features. Once the application is complete and |
14 | | meets the Department's approval, the Department shall |
15 | | conditionally approve the license. Final approval is |
16 | | contingent on the build-out and Department inspection. |
17 | | (i) Upon submission of the Early Approval Adult Use |
18 | | Dispensing Organization at a secondary site application, the |
19 | | applicant shall request an inspection and the Department may |
20 | | inspect the Early Approval Adult Use Dispensing Organization's |
21 | | secondary site to confirm compliance with the application and |
22 | | this Act. |
23 | | (j) The Department shall only issue an Early Approval Adult |
24 | | Use Dispensing Organization License at a secondary site after |
25 | | the completion of a successful inspection. |
26 | | (k) If an applicant passes the inspection under this |
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1 | | Section, the Department shall issue the Early Approval Adult |
2 | | Use Dispensing Organization License at a secondary site within |
3 | | 10 business days unless: |
4 | | (1) The licensee; principal officer, board member, or |
5 | | person having a financial or voting interest of 5% or |
6 | | greater in the licensee; or agent is delinquent in filing |
7 | | any required tax returns or paying any amounts owed to the |
8 | | State of Illinois; or |
9 | | (2) The Secretary of Financial and Professional |
10 | | Regulation determines there is reason, based on documented |
11 | | compliance violations, the licensee is not entitled to an |
12 | | Early Approval Adult Use Dispensing Organization License |
13 | | at its secondary site. |
14 | | (l) Once the Department has issued a license, the |
15 | | dispensing organization shall notify the Department of the |
16 | | proposed opening date. |
17 | | (m) A registered medical cannabis dispensing organization |
18 | | that obtains an Early Approval Adult Use Dispensing |
19 | | Organization License at a secondary site may begin selling |
20 | | cannabis, cannabis-infused products, paraphernalia, and |
21 | | related items to purchasers under the rules of this Act no |
22 | | sooner than January 1, 2020. |
23 | | (n) If there is a shortage of cannabis or cannabis-infused |
24 | | products, a dispensing organization holding both a dispensing |
25 | | organization license under the Compassionate Use of Medical |
26 | | Cannabis Pilot Program Act and this Article shall prioritize |
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1 | | serving qualifying patients and caregivers before serving |
2 | | purchasers. |
3 | | (o) An Early Approval Adult Use Dispensing Organization |
4 | | License at a secondary site is valid until March 31, 2021. A |
5 | | dispensing organization that obtains an Early Approval Adult |
6 | | Use Dispensing Organization License at a secondary site shall |
7 | | receive written or electronic notice 90 days before the |
8 | | expiration of the license that the license will expire, and |
9 | | inform the license holder that it may renew its Early Approval |
10 | | Adult Use Dispensing Organization License at a secondary site. |
11 | | The Department shall renew an Early Approval Adult Use |
12 | | Dispensing Organization License at a secondary site within 60 |
13 | | days of submission of the renewal application being deemed |
14 | | complete if: |
15 | | (1) the dispensing organization submits an application |
16 | | and the required nonrefundable renewal fee of $30,000, to |
17 | | be deposited into the Cannabis Regulation Fund; |
18 | | (2) the Department has not suspended or revoked the |
19 | | Early Approval Adult Use Dispensing Organization License |
20 | | or a medical cannabis dispensing organization license held |
21 | | by the same person or entity for violating this Act or |
22 | | rules adopted under this Act or the Compassionate Use of |
23 | | Medical Cannabis Pilot Program Act or rules adopted under |
24 | | that Act; and |
25 | | (3) the dispensing organization has completed a Social |
26 | | Equity Inclusion Plan as required by paragraph (16) of |
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1 | | subsection (c) of this Section. |
2 | | (p) The Early Approval Adult Use Dispensing Organization |
3 | | Licensee at a secondary site renewed pursuant to subsection (o) |
4 | | shall receive written or electronic notice 90 days before the |
5 | | expiration of the license that the license will expire, and |
6 | | inform the license holder that it may apply for an Adult Use |
7 | | Dispensing Organization License. The Department shall grant an |
8 | | Adult Use Dispensing Organization License within 60 days of an |
9 | | application being deemed complete if the applicant has meet all |
10 | | of the criteria in Section 15-36. |
11 | | (q) If a dispensing organization fails to submit an |
12 | | application for renewal of an Early Approval Adult Use |
13 | | Dispensing Organization License or for an Adult Use Dispensing |
14 | | Organization License before the expiration dates provided in |
15 | | subsections (o) and (p) of this Section, the dispensing |
16 | | organization shall cease serving purchasers until it receives a |
17 | | renewal or an Adult Use Dispensing Organization License. |
18 | | (r) A dispensing organization agent who holds a valid |
19 | | dispensing organization agent identification card issued under |
20 | | the Compassionate Use of Medical Cannabis Pilot Program Act and |
21 | | is an officer, director, manager, or employee of the dispensing |
22 | | organization licensed under this Section may engage in all |
23 | | activities authorized by this Article to be performed by a |
24 | | dispensing organization agent. |
25 | | (s) If the Department suspends or revokes the Early |
26 | | Approval Adult Use Dispensing Organization License of a |
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1 | | dispensing organization that also holds a medical cannabis |
2 | | dispensing organization license issued under the Compassionate |
3 | | Use of Medical Cannabis Pilot Program Act, the Department may |
4 | | consider the suspension or revocation as grounds to take |
5 | | disciplinary action against the medical cannabis dispensing |
6 | | organization. |
7 | | (t) All fees or fines collected from an Early Approval |
8 | | Adult Use Dispensary Organization License at a secondary site |
9 | | holder as a result of a disciplinary action in the enforcement |
10 | | of this Act shall be deposited into the Cannabis Regulation |
11 | | Fund and be appropriated to the Department for the ordinary and |
12 | | contingent expenses of the Department in the administration and |
13 | | enforcement of this Section. |
14 | | Section 15-25. Awarding of Conditional Adult Use |
15 | | Dispensing Organization Licenses prior to January 1, 2021. |
16 | | (a) The Department shall issue up to 75 Conditional Adult |
17 | | Use Dispensing Organization Licenses before May 1, 2020. |
18 | | (b) The Department shall make the application for a |
19 | | Conditional Adult Use Dispensing Organization License |
20 | | available no later than October 1, 2019 and shall accept |
21 | | applications no later than January 1, 2020. |
22 | | (c) To ensure the geographic dispersion of Conditional |
23 | | Adult Use Dispensing Organization License holders, the |
24 | | following number of licenses shall be awarded in each BLS |
25 | | Region as determined by each region's percentage of the State's |
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1 | | population: |
2 | | (1) Bloomington: 1 |
3 | | (2) Cape Girardeau: 1 |
4 | | (3) Carbondale-Marion: 1 |
5 | | (4) Champaign-Urbana: 1 |
6 | | (5) Chicago-Naperville-Elgin: 47 |
7 | | (6) Danville: 1 |
8 | | (7) Davenport-Moline-Rock Island: 1 |
9 | | (8) Decatur: 1 |
10 | | (9) Kankakee: 1 |
11 | | (10) Peoria: 3 |
12 | | (11) Rockford: 2 |
13 | | (12) St. Louis: 4 |
14 | | (13) Springfield: 1 |
15 | | (14) Northwest Illinois nonmetropolitan: 3 |
16 | | (15) West Central Illinois nonmetropolitan: 3 |
17 | | (16) East Central Illinois nonmetropolitan: 2 |
18 | | (17) South Illinois nonmetropolitan: 2 |
19 | | (d) An applicant seeking issuance of a Conditional Adult |
20 | | Use Dispensing Organization License shall submit an |
21 | | application on forms provided by the Department. An applicant |
22 | | must meet the following requirements: |
23 | | (1) Payment of a nonrefundable application fee of |
24 | | $5,000 for each license for which the applicant is |
25 | | applying, which shall be deposited into the Cannabis |
26 | | Regulation Fund; |
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1 | | (2) Certification that the applicant will comply with |
2 | | the requirements contained in this Act; |
3 | | (3) The legal name of the proposed dispensing |
4 | | organization; |
5 | | (4) A statement that the dispensing organization |
6 | | agrees to respond to the Department's supplemental |
7 | | requests for information; |
8 | | (5) From each principal officer, a statement |
9 | | indicating whether that person: |
10 | | (A) has previously held or currently holds an |
11 | | ownership interest in a cannabis business |
12 | | establishment in Illinois; or |
13 | | (B) has held an ownership interest in a dispensing |
14 | | organization or its equivalent in another state or |
15 | | territory of the United States that had the dispensing |
16 | | organization registration or license suspended, |
17 | | revoked, placed on probationary status, or subjected |
18 | | to other disciplinary action; |
19 | | (6) Disclosure of whether any principal officer has |
20 | | ever filed for bankruptcy or defaulted on spousal support |
21 | | or child support obligation; |
22 | | (7) A resume for each principal officer, including |
23 | | whether that person has an academic degree, certification, |
24 | | or relevant experience with a cannabis business |
25 | | establishment or in a related industry; |
26 | | (8) A description of the training and education that |
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1 | | will be provided to dispensing organization agents; |
2 | | (9) A copy of the proposed operating bylaws; |
3 | | (10) A copy of the proposed business plan that complies |
4 | | with the requirements in this Act, including, at a minimum, |
5 | | the following: |
6 | | (A) A description of services to be offered; and |
7 | | (B) A description of the process of dispensing |
8 | | cannabis; |
9 | | (11) A copy of the proposed security plan that complies |
10 | | with the requirements in this Article, including: |
11 | | (A) The process or controls that will be |
12 | | implemented to monitor the dispensary, secure the |
13 | | premises, agents, and currency, and prevent the |
14 | | diversion, theft, or loss of cannabis; and |
15 | | (B) The process to ensure that access to the |
16 | | restricted access areas is restricted to, registered |
17 | | agents, service professionals, transporting |
18 | | organization agents, Department inspectors, and |
19 | | security personnel; |
20 | | (12) A proposed inventory control plan that complies |
21 | | with this Section; |
22 | | (13) A proposed floor plan, a square footage estimate, |
23 | | and a description of proposed security devices, including, |
24 | | without limitation, cameras, motion detectors, servers, |
25 | | video storage capabilities, and alarm service providers; |
26 | | (14) The name, address, social security number, and |
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1 | | date of birth of each principal officer and board member of |
2 | | the dispensing organization; each of those individuals |
3 | | shall be at least 21 years of age; |
4 | | (15) Evidence of the applicant's status as a Social |
5 | | Equity Applicant, if applicable, and whether a Social |
6 | | Equity Applicant plans to apply for a loan or grant issued |
7 | | by the Department of Commerce and Economic Opportunity; |
8 | | (16) The address, telephone number, and email address |
9 | | of the applicant's principal place of business, if |
10 | | applicable. A post office box is not permitted; |
11 | | (17) Written summaries of any information regarding |
12 | | instances in which a business or not-for-profit that a |
13 | | prospective board member previously managed or served on |
14 | | were fined or censured, or any instances in which a |
15 | | business or not-for-profit that a prospective board member |
16 | | previously managed or served on had its registration |
17 | | suspended or revoked in any administrative or judicial |
18 | | proceeding; |
19 | | (18) A plan for community engagement; |
20 | | (19) Procedures to ensure accurate recordkeeping and |
21 | | security measures that are in accordance with this Article |
22 | | and Department rules; |
23 | | (20) The estimated volume of cannabis it plans to store |
24 | | at the dispensary; |
25 | | (21) A description of the features that will provide |
26 | | accessibility to purchasers as required by the Americans |
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1 | | with Disabilities Act; |
2 | | (22) A detailed description of air treatment systems |
3 | | that will be installed to reduce odors; |
4 | | (23) A reasonable assurance that the issuance of a |
5 | | license will not have a detrimental impact on the community |
6 | | in which the applicant wishes to locate; |
7 | | (24) The dated signature of each principal officer; |
8 | | (25) A description of the enclosed, locked facility |
9 | | where cannabis will be stored by the dispensing |
10 | | organization; |
11 | | (26) Signed statements from each dispensing |
12 | | organization agent stating that he or she will not divert |
13 | | cannabis; |
14 | | (27) The number of licenses it is applying for in each |
15 | | BLS Region; |
16 | | (28) A diversity plan that includes a narrative of at |
17 | | least 2,500 words that establishes a goal of diversity in |
18 | | ownership, management, employment, and contracting to |
19 | | ensure that diverse participants and groups are afforded |
20 | | equality of opportunity; |
21 | | (29) A contract with a private security contractor that |
22 | | is licensed under Section 10-5 of the Private Detective, |
23 | | Private Alarm, Private Security, Fingerprint Vendor, and |
24 | | Locksmith Act of 2004 in order for the dispensary to have |
25 | | adequate security at its facility; and |
26 | | (30) Other information deemed necessary by the |
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1 | | Illinois Cannabis Regulation Oversight Officer to conduct |
2 | | the disparity and availability study referenced in |
3 | | subsection (e) of Section 5-45. |
4 | | (e) An applicant who receives a Conditional Adult Use |
5 | | Dispensing Organization License under this Section has 180 days |
6 | | from the date of award to identify a physical location for the |
7 | | dispensing organization retail storefront. Before a |
8 | | conditional licensee receives an authorization to build out the |
9 | | dispensing organization from the Department, the Department |
10 | | shall inspect the physical space selected by the conditional |
11 | | licensee. The Department shall verify the site is suitable for |
12 | | public access, the layout promotes the safe dispensing of |
13 | | cannabis, the location is sufficient in size, power allocation, |
14 | | lighting, parking, handicapped accessible parking spaces, |
15 | | accessible entry and exits as required by the Americans with |
16 | | Disabilities Act, product handling, and storage. The applicant |
17 | | shall also provide a statement of reasonable assurance that the |
18 | | issuance of a license will not have a detrimental impact on the |
19 | | community. The applicant shall also provide evidence that the |
20 | | location is not within 1,500 feet of an existing dispensing |
21 | | organization. If an applicant is unable to find a suitable |
22 | | physical address in the opinion of the Department within 180 |
23 | | days of the issuance of the Conditional Adult Use Dispensing |
24 | | Organization License, the Department may extend the period for |
25 | | finding a physical address another 180 days if the Conditional |
26 | | Adult Use Dispensing Organization License holder demonstrates |
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1 | | concrete attempts to secure a location and a hardship. If the |
2 | | Department denies the extension or the Conditional Adult Use |
3 | | Dispensing Organization License holder is unable to find a |
4 | | location or become operational within 360 days of being awarded |
5 | | a conditional license, the Department shall rescind the |
6 | | conditional license and award it to the next highest scoring |
7 | | applicant in the BLS Region for which the license was assigned, |
8 | | provided the applicant receiving the license: (i) confirms a |
9 | | continued interest in operating a dispensing organization; |
10 | | (ii) can provide evidence that the applicant continues to meet |
11 | | the financial requirements provided in subsection (c) of this |
12 | | Section; and (iii) has not otherwise become ineligible to be |
13 | | awarded a dispensing organization license. If the new awardee |
14 | | is unable to accept the Conditional Adult Use Dispensing |
15 | | Organization License, the Department shall award the |
16 | | Conditional Adult Use Dispensing Organization License to the |
17 | | next highest scoring applicant in the same manner. The new |
18 | | awardee shall be subject to the same required deadlines as |
19 | | provided in this subsection. |
20 | | (e-5) If, within 180 days of being awarded a Conditional |
21 | | Adult Use Dispensing Organization license, a dispensing |
22 | | organization is unable to find a location within the BLS Region |
23 | | in which it was awarded a Conditional Adult Use Dispensing |
24 | | Organization license because no jurisdiction within the BLS |
25 | | Region allows for the operation of an Adult Use Dispensing |
26 | | Organization, the Department of Financial and Professional |
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1 | | Regulation may authorize the Conditional Adult Use Dispensing |
2 | | Organization License holder to transfer its license to a BLS |
3 | | Region specified by the Department. |
4 | | (f) A dispensing organization that is awarded a Conditional |
5 | | Adult Use Dispensing Organization License pursuant to the |
6 | | criteria in Section 15-30 shall not purchase, possess, sell, or |
7 | | dispense cannabis or cannabis-infused products until the |
8 | | person has received an Adult Use Dispensing Organization |
9 | | License issued by the Department pursuant to Section 15-36 of |
10 | | this Act. The Department shall not issue an Adult Use |
11 | | Dispensing Organization License until: |
12 | | (1) the Department has inspected the dispensary site |
13 | | and proposed operations and verified that they are in |
14 | | compliance with this Act and local zoning laws; and |
15 | | (2) the Conditional Adult Use Dispensing Organization |
16 | | License holder has paid a registration fee of $60,000, or a |
17 | | prorated amount accounting for the difference of time |
18 | | between when the Adult Use Dispensing Organization License |
19 | | is issued and March 31 of the next even-numbered year. |
20 | | (g) The Department shall conduct a background check of the |
21 | | prospective organization agents in order to carry out this |
22 | | Article. The Department of State Police shall charge the |
23 | | applicant a fee for conducting the criminal history record |
24 | | check, which shall be deposited into the State Police Services |
25 | | Fund and shall not exceed the actual cost of the record check. |
26 | | Each person applying as a dispensing organization agent shall |
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1 | | submit a full set of fingerprints to the Department of State |
2 | | Police for the purpose of obtaining a State and federal |
3 | | criminal records check. These fingerprints shall be checked |
4 | | against the fingerprint records now and hereafter, to the |
5 | | extent allowed by law, filed in the Department of State Police |
6 | | and Federal Bureau of Identification criminal history records |
7 | | databases. The Department of State Police shall furnish, |
8 | | following positive identification, all Illinois conviction |
9 | | information to the Department. |
10 | | Section 15-30. Selection criteria for conditional licenses |
11 | | awarded under Section 15-25. |
12 | | (a) Applicants for a Conditional Adult Use Dispensing |
13 | | Organization License must submit all required information, |
14 | | including the information required in Section 15-25, to the |
15 | | Department. Failure by an applicant to submit all required |
16 | | information may result in the application being disqualified. |
17 | | (b) If the Department receives an application that fails to |
18 | | provide the required elements contained in this Section, the |
19 | | Department shall issue a deficiency notice to the applicant. |
20 | | The applicant shall have 10 calendar days from the date of the |
21 | | deficiency notice to resubmit the incomplete information. |
22 | | Applications that are still incomplete after this opportunity |
23 | | to cure will not be scored and will be disqualified. |
24 | | (c) The Department will award up to 250 points to complete |
25 | | applications based on the sufficiency of the applicant's |
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1 | | responses to required information. Applicants will be awarded |
2 | | points based on a determination that the application |
3 | | satisfactorily includes the following elements: |
4 | | (1) Suitability of Employee Training Plan (15 points). |
5 | | The plan includes an employee training plan that |
6 | | demonstrates that employees will understand the rules |
7 | | and laws to be followed by dispensary employees, have |
8 | | knowledge of any security measures and operating |
9 | | procedures of the dispensary, and are able to advise |
10 | | purchasers on how to safely consume cannabis and use |
11 | | individual products offered by the dispensary. |
12 | | (2) Security and Recordkeeping (65 points). |
13 | | (A) The security plan accounts for the prevention |
14 | | of the theft or diversion of cannabis. The security |
15 | | plan demonstrates safety procedures for dispensary |
16 | | agents and purchasers, and safe delivery and storage of |
17 | | cannabis and currency. It demonstrates compliance with |
18 | | all security requirements in this Act and rules. |
19 | | (B) A plan for recordkeeping, tracking, and |
20 | | monitoring inventory, quality control, and other |
21 | | policies and procedures that will promote standard |
22 | | recordkeeping and discourage unlawful activity. This |
23 | | plan includes the applicant's strategy to communicate |
24 | | with the Department and the Department of State Police |
25 | | on the destruction and disposal of cannabis. The plan |
26 | | must also demonstrate compliance with this Act and |
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1 | | rules. |
2 | | (C) The security plan shall also detail which |
3 | | private security contractor licensed under Section |
4 | | 10-5 of the Private Detective, Private Alarm, Private |
5 | | Security, Fingerprint Vendor, and Locksmith Act of |
6 | | 2004 the dispensary will contract with in order to |
7 | | provide adequate security at its facility. |
8 | | (3) Applicant's Business Plan, Financials, Operating |
9 | | and Floor Plan (65 points). |
10 | | (A) The business plan shall describe, at a minimum, |
11 | | how the dispensing organization will be managed on a |
12 | | long-term basis. This shall include a description of |
13 | | the dispensing organization's point-of-sale system, |
14 | | purchases and denials of sale, confidentiality, and |
15 | | products and services to be offered. It will |
16 | | demonstrate compliance with this Act and rules. |
17 | | (B) The operating plan shall include, at a minimum, |
18 | | best practices for day-to-day dispensary operation and |
19 | | staffing. The operating plan may also include |
20 | | information about employment practices, including |
21 | | information about the percentage of full-time |
22 | | employees who will be provided a living wage. |
23 | | (C) The proposed floor plan is suitable for public |
24 | | access, the layout promotes safe dispensing of |
25 | | cannabis, is compliant with the Americans with |
26 | | Disabilities Act and the Environmental Barriers Act, |
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1 | | and facilitates safe product handling and storage. |
2 | | (4) Knowledge and Experience (30 points). |
3 | | (A) The applicant's principal officers must |
4 | | demonstrate experience and qualifications in business |
5 | | management or experience with the cannabis industry. |
6 | | This includes ensuring optimal safety and accuracy in |
7 | | the dispensing and sale of cannabis. |
8 | | (B) The applicant's principal officers must |
9 | | demonstrate knowledge of various cannabis product |
10 | | strains or varieties and describe the types and |
11 | | quantities of products planned to be sold. This |
12 | | includes confirmation of whether the dispensing |
13 | | organization plans to sell cannabis paraphernalia or |
14 | | edibles. |
15 | | (C) Knowledge and experience may be demonstrated |
16 | | through experience in other comparable industries that |
17 | | reflect on applicant's ability to operate a cannabis |
18 | | business establishment. |
19 | | (5) Status as a Social Equity Applicant (50 points). |
20 | | The applicant meets the qualifications for a |
21 | | Social Equity Applicant as set forth in this Act. |
22 | | (6) Labor and employment practices (5 points): The |
23 | | applicant may describe plans to provide a safe, healthy, |
24 | | and economically beneficial working environment for its |
25 | | agents, including, but not limited to, codes of conduct, |
26 | | health care benefits, educational benefits, retirement |
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1 | | benefits, living wage standards, and entering a labor peace |
2 | | agreement with employees. |
3 | | (7) Environmental Plan (5 points): The applicant may |
4 | | demonstrate an environmental plan of action to minimize the |
5 | | carbon footprint, environmental impact, and resource needs |
6 | | for the dispensary, which may include, without limitation, |
7 | | recycling cannabis product packaging. |
8 | | (8) Illinois owner (5 points): The applicant is 51% or |
9 | | more owned and controlled by an Illinois resident, who can |
10 | | prove residency in each of the past 5 years with tax |
11 | | records. |
12 | | (9) Status as veteran (5 points): The applicant is 51% |
13 | | or more controlled and owned by an individual or |
14 | | individuals who meet the qualifications of a veteran as |
15 | | defined by Section 45-57 of the Illinois Procurement Code. |
16 | | (10) A diversity plan (5 points): that includes a |
17 | | narrative of not more than 2,500 words that establishes a |
18 | | goal of diversity in ownership, management, employment, |
19 | | and contracting to ensure that diverse participants and |
20 | | groups are afforded equality of opportunity. |
21 | | (d) The Department may also award up to 2 bonus points for |
22 | | a plan to engage with the community. The applicant may |
23 | | demonstrate a desire to engage with its community by |
24 | | participating in one or more of, but not limited to, the |
25 | | following actions: (i) establishment of an incubator program |
26 | | designed to increase participation in the cannabis industry by |
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1 | | persons who would qualify as Social Equity Applicants; (ii) |
2 | | providing financial assistance to substance abuse treatment |
3 | | centers; (iii) educating children and teens about the potential |
4 | | harms of cannabis use; or (iv) other measures demonstrating a |
5 | | commitment to the applicant's community. Bonus points will only |
6 | | be awarded if the Department receives applications that receive |
7 | | an equal score for a particular region. |
8 | | (e) The Department may verify information contained in each |
9 | | application and accompanying documentation to assess the |
10 | | applicant's veracity and fitness to operate a dispensing |
11 | | organization. |
12 | | (f) The Department may, in its discretion, refuse to issue |
13 | | an authorization to any applicant: |
14 | | (1) Who is unqualified to perform the duties required |
15 | | of the applicant; |
16 | | (2) Who fails to disclose or states falsely any |
17 | | information called for in the application; |
18 | | (3) Who has been found guilty of a violation of this |
19 | | Act, or whose medical cannabis dispensing organization, |
20 | | medical cannabis cultivation organization, or Early |
21 | | Approval Adult Use Dispensing Organization License, or |
22 | | Early Approval Adult Use Dispensing Organization License |
23 | | at a secondary site, or Early Approval Cultivation Center |
24 | | License was suspended, restricted, revoked, or denied for |
25 | | just cause, or the applicant's cannabis business |
26 | | establishment license was suspended, restricted, revoked, |
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1 | | or denied in any other state; or |
2 | | (4) Who has engaged in a pattern or practice of unfair |
3 | | or illegal practices, methods, or activities in the conduct |
4 | | of owning a cannabis business establishment or other |
5 | | business. |
6 | | (g) The Department shall deny the license if any principal |
7 | | officer, board member, or person having a financial or voting |
8 | | interest of 5% or greater in the licensee is delinquent in |
9 | | filing any required tax returns or paying any amounts owed to |
10 | | the State of Illinois. |
11 | | (h) The Department shall verify an applicant's compliance |
12 | | with the requirements of this Article and rules before issuing |
13 | | a dispensing organization license. |
14 | | (i) Should the applicant be awarded a license, the |
15 | | information and plans provided in the application, including |
16 | | any plans submitted for bonus points, shall become a condition |
17 | | of the Conditional Adult Use Dispensing Organization Licenses, |
18 | | except as otherwise provided by this Act or rule. Dispensing |
19 | | organizations have a duty to disclose any material changes to |
20 | | the application. The Department shall review all material |
21 | | changes disclosed by the dispensing organization, and may |
22 | | re-evaluate its prior decision regarding the awarding of a |
23 | | license, including, but not limited to, suspending or revoking |
24 | | a license. Failure to comply with the conditions or |
25 | | requirements in the application may subject the dispensing |
26 | | organization to discipline, up to and including suspension or |
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1 | | revocation of its authorization or license by the Department. |
2 | | (j) If an applicant has not begun operating as a dispensing |
3 | | organization within one year of the issuance of the Conditional |
4 | | Adult Use Dispensing Organization License, the Department may |
5 | | revoke the Conditional Adult Use Dispensing Organization |
6 | | License and award it to the next highest scoring applicant in |
7 | | the BLS Region if a suitable applicant indicates a continued |
8 | | interest in the license or begin a new selection process to |
9 | | award a Conditional Adult Use Dispensing Organization License. |
10 | | (k) The Department shall deny an application if granting |
11 | | that application would result in a single person or entity |
12 | | having a direct or indirect financial interest in more than 10 |
13 | | Early Approval Adult Use Dispensing Organization Licenses, |
14 | | Conditional Adult Use Dispensing Organization Licenses, or |
15 | | Adult Use Dispensing Organization Licenses. Any entity that is |
16 | | awarded a license that results in a single person or entity |
17 | | having a direct or indirect financial interest in more than 10 |
18 | | licenses shall forfeit the most recently issued license and |
19 | | suffer a penalty to be determined by the Department, unless the |
20 | | entity declines the license at the time it is awarded. |
21 | | Section 15-35. Conditional Adult Use Dispensing |
22 | | Organization License after January 1, 2021. |
23 | | (a) In addition to any of the licenses issued in Sections |
24 | | 15-15, Section 15-20, or Section 15-25 of this Act, by December |
25 | | 21, 2021, the Department shall issue up to 110 Conditional |
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1 | | Adult Use Dispensing Organization Licenses, pursuant to the |
2 | | application process adopted under this Section. Prior to |
3 | | issuing such licenses, the Department may adopt rules through |
4 | | emergency rulemaking in accordance with subsection (gg) of |
5 | | Section 5-45 of the Illinois Administrative Procedure Act. The |
6 | | General Assembly finds that the adoption of rules to regulate |
7 | | cannabis use is deemed an emergency and necessary for the |
8 | | public interest, safety, and welfare. Such rules may: |
9 | | (1) Modify or change the BLS Regions as they apply to |
10 | | this Article or modify or raise the number of Adult |
11 | | Conditional Use Dispensing Organization Licenses assigned |
12 | | to each region based on the following factors: |
13 | | (A) Purchaser wait times; |
14 | | (B) Travel time to the nearest dispensary for |
15 | | potential purchasers; |
16 | | (C) Percentage of cannabis sales occurring in |
17 | | Illinois not in the regulated market using data from |
18 | | the Substance Abuse and Mental Health Services |
19 | | Administration, National Survey on Drug Use and |
20 | | Health, Illinois Behavioral Risk Factor Surveillance |
21 | | System, and tourism data from the Illinois Office of |
22 | | Tourism to ascertain total cannabis consumption in |
23 | | Illinois compared to the amount of sales in licensed |
24 | | dispensing organizations; |
25 | | (D) Whether there is an adequate supply of cannabis |
26 | | and cannabis-infused products to serve registered |
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1 | | medical cannabis patients; |
2 | | (E) Population increases or shifts; |
3 | | (F) Density of dispensing organizations in a |
4 | | region; |
5 | | (G) The Department's capacity to appropriately |
6 | | regulate additional licenses; |
7 | | (H) The findings and recommendations from the |
8 | | disparity and availability study commissioned by the |
9 | | Illinois Cannabis Regulation Oversight Officer in |
10 | | subsection (e) of Section 5-45 to reduce or eliminate |
11 | | any identified barriers to entry in the cannabis |
12 | | industry; and |
13 | | (I) Any other criteria the Department deems |
14 | | relevant. |
15 | | (2) Modify or change the licensing application process |
16 | | to reduce or eliminate the barriers identified in the |
17 | | disparity and availability study commissioned by the |
18 | | Illinois Cannabis Regulation Oversight Officer and make |
19 | | modifications to remedy evidence of discrimination. |
20 | | (b) After January 1, 2022, the Department may by rule |
21 | | modify or raise the number of Adult Use Dispensing Organization |
22 | | Licenses assigned to each region, and modify or change the |
23 | | licensing application process to reduce or eliminate barriers |
24 | | based on the criteria in subsection (a). At no time shall the |
25 | | Department issue more than 500 Adult Use Dispensary |
26 | | Organization Licenses. |
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1 | | Section 15-36. Adult Use Dispensing Organization License. |
2 | | (a) A person is only eligible to receive an Adult Use |
3 | | Dispensing Organization if the person has been awarded a |
4 | | Conditional Adult Use Dispensing Organization License pursuant |
5 | | to this Act or has renewed its license pursuant to subsection |
6 | | (k) of Section 15-15 or subsection (p) of Section 15-20. |
7 | | (b) The Department shall not issue an Adult Use Dispensing |
8 | | Organization License until: |
9 | | (1) the Department has inspected the dispensary site |
10 | | and proposed operations and verified that they are in |
11 | | compliance with this Act and local zoning laws; |
12 | | (2) the Conditional Adult Use Dispensing Organization |
13 | | License holder has paid a registration fee of $60,000 or a |
14 | | prorated amount accounting for the difference of time |
15 | | between when the Adult Use Dispensing Organization License |
16 | | is issued and March 31 of the next even-numbered year; and |
17 | | (3) the Conditional Adult Use Dispensing Organization |
18 | | License holder has met all the requirements in the Act and |
19 | | rules. |
20 | | (c) No person or entity shall hold any legal, equitable, |
21 | | ownership, or beneficial interest, directly or indirectly, of |
22 | | more than 10 dispensing organizations licensed under this |
23 | | Article. Further, no person or entity that is: |
24 | | (1) employed by, is an agent of, or participates in the |
25 | | management of a dispensing organization or registered |
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1 | | medical cannabis dispensing organization; |
2 | | (2) a principal officer of a dispensing organization or |
3 | | registered medical cannabis dispensing organization; or |
4 | | (3) an entity controlled by or affiliated with a |
5 | | principal officer of a dispensing organization or |
6 | | registered medical cannabis dispensing organization; |
7 | | shall hold any legal, equitable, ownership, or beneficial |
8 | | interest, directly or indirectly, in a dispensing organization |
9 | | that would result in such person or entity owning or |
10 | | participating in the management of more than 10 dispensing |
11 | | organizations. For the purpose of this subsection, |
12 | | participating in management may include, without limitation, |
13 | | controlling decisions regarding staffing, pricing, purchasing, |
14 | | marketing, store design, hiring, and website design. |
15 | | (d) The Department shall deny an application if granting |
16 | | that application would result in a person or entity obtaining |
17 | | direct or indirect financial interest in more than 10 Early |
18 | | Approval Adult Use Dispensing Organization Licenses, |
19 | | Conditional Adult Use Dispensing Organization Licenses, Adult |
20 | | Use Dispensing Organization Licenses, or any combination |
21 | | thereof. If a person or entity is awarded a Conditional Adult |
22 | | Use Dispensing Organization License that would cause the person |
23 | | or entity to be in violation of this subsection, he, she, or it |
24 | | shall choose which license application it wants to abandon and |
25 | | such licenses shall become available to the next qualified |
26 | | applicant in the region in which the abandoned license was |
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1 | | awarded. |
2 | | Section 15-40. Dispensing organization agent |
3 | | identification card; agent training. |
4 | | (a) The Department shall: |
5 | | (1) Verify the information contained in an application |
6 | | or renewal for a dispensing organization agent |
7 | | identification card submitted under this Article, and |
8 | | approve or deny an application or renewal, within 30 days |
9 | | of receiving a completed application or renewal |
10 | | application and all supporting documentation required by |
11 | | rule; |
12 | | (2) Issue a dispensing organization agent |
13 | | identification card to a qualifying agent within 15 |
14 | | business days of approving the application or renewal; |
15 | | (3) Enter the registry identification number of the |
16 | | dispensing organization where the agent works; |
17 | | (4) Within one year from the effective date of this |
18 | | Act, allow for an electronic application process and |
19 | | provide a confirmation by electronic or other methods that |
20 | | an application has been submitted; and |
21 | | (5) Collect a $100 nonrefundable fee from the applicant |
22 | | to be deposited into the Cannabis Regulation Fund. |
23 | | (b) A dispensing agent must keep his or her identification |
24 | | card visible at all times when on the property of the |
25 | | dispensing organization. |
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1 | | (c) The dispensing organization agent identification cards |
2 | | shall contain the following: |
3 | | (1) The name of the cardholder; |
4 | | (2) The date of issuance and expiration date of the |
5 | | dispensing organization agent identification cards; |
6 | | (3) A random 10-digit alphanumeric identification |
7 | | number containing at least 4 numbers and at least 4 letters |
8 | | that is unique to the cardholder; and |
9 | | (4) A photograph of the cardholder. |
10 | | (d) The dispensing organization agent identification cards |
11 | | shall be immediately returned to the dispensing organization |
12 | | upon termination of employment. |
13 | | (e) The Department shall not issue an agent identification |
14 | | card if the applicant is delinquent in filing any required tax |
15 | | returns or paying any amounts owed to the State of Illinois. |
16 | | (f) Any card lost by a dispensing organization agent shall |
17 | | be reported to the Department of State Police and the |
18 | | Department immediately upon discovery of the loss. |
19 | | (g) An applicant shall be denied a dispensing organization |
20 | | agent identification card if he or she fails to complete the |
21 | | training provided for in this Section. |
22 | | (h) A dispensing organization agent shall only be required |
23 | | to hold one card for the same employer regardless of what type |
24 | | of dispensing organization license the employer holds. |
25 | | (i) Cannabis retail sales training requirements. |
26 | | (1) Within 90 days of September 1, 2019, or 90 days of |
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1 | | employment, whichever is later, all owners, managers, |
2 | | employees, and agents involved in the handling or sale of |
3 | | cannabis or cannabis-infused product employed by an adult |
4 | | use dispensing organization or medical cannabis dispensing |
5 | | organization as defined in Section 10 of the Compassionate |
6 | | Use of Medical Cannabis Pilot Program Act shall attend and |
7 | | successfully complete a Responsible Vendor Program. |
8 | | (2) Each owner, manager, employee, and agent of an |
9 | | adult use dispensing organization or medical cannabis |
10 | | dispensing organization shall successfully complete the |
11 | | program annually. |
12 | | (3) Responsible Vendor Program Training modules shall |
13 | | include at least 2 hours of instruction time approved by |
14 | | the Department including: |
15 | | (i) Health and safety concerns of cannabis use, |
16 | | including the responsible use of cannabis, its |
17 | | physical effects, onset of physiological effects, |
18 | | recognizing signs of impairment, and appropriate |
19 | | responses in the event of overconsumption. |
20 | | (ii) Training on laws and regulations on driving |
21 | | while under the influence. |
22 | | (iii) Sales to minors prohibition. Training shall |
23 | | cover all relevant Illinois laws and rules. |
24 | | (iv) Quantity limitations on sales to purchasers. |
25 | | Training shall cover all relevant Illinois laws and |
26 | | rules. |
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1 | | (v) Acceptable forms of identification. Training |
2 | | shall include: |
3 | | (I) How to check identification; and |
4 | | (II) Common mistakes made in verification; |
5 | | (vi) Safe storage of cannabis; |
6 | | (vii) Compliance with all inventory tracking |
7 | | system regulations; |
8 | | (viii) Waste handling, management, and disposal; |
9 | | (ix) Health and safety standards; |
10 | | (x) Maintenance of records; |
11 | | (xi) Security and surveillance requirements; |
12 | | (xii) Permitting inspections by State and local |
13 | | licensing and enforcement authorities; |
14 | | (xiii) Privacy issues; |
15 | | (xiv) Packaging and labeling requirement for sales |
16 | | to purchasers; and |
17 | | (xv) Other areas as determined by rule. |
18 | | (j)BLANK. |
19 | | (k) Upon the successful completion of the Responsible |
20 | | Vendor Program, the provider shall deliver proof of completion |
21 | | either through mail or electronic communication to the |
22 | | dispensing organization, which shall retain a copy of the |
23 | | certificate. |
24 | | (l) The license of a dispensing organization or medical |
25 | | cannabis dispensing organization whose owners, managers, |
26 | | employees, or agents fail to comply with this Section may be |
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1 | | suspended or revoked under Section 15-145 or may face other |
2 | | disciplinary action. |
3 | | (m) The regulation of dispensing organization and medical |
4 | | cannabis dispensing employer and employee training is an |
5 | | exclusive function of the State, and regulation by a unit of |
6 | | local government, including a home rule unit, is prohibited. |
7 | | This subsection (m) is a denial and limitation of home rule |
8 | | powers and functions under subsection (h) of Section 6 of |
9 | | Article VII of the Illinois Constitution. |
10 | | (n) Persons seeking Department approval to offer the |
11 | | training required by paragraph (3) of subsection (i) may apply |
12 | | for such approval between August 1 and August 15 of each |
13 | | odd-numbered year in a manner prescribed by the Department. |
14 | | (o) Persons seeking Department approval to offer the |
15 | | training required by paragraph (3) of subsection (i) shall |
16 | | submit a non-refundable application fee of $2,000 to be |
17 | | deposited into the Cannabis Regulation Fund or a fee as may be |
18 | | set by rule. Any changes made to the training module shall be |
19 | | approved by the Department.
|
20 | | (p) The Department shall not unreasonably deny approval of |
21 | | a training module that meets all the requirements of paragraph |
22 | | (3) of subsection (i). A denial of approval shall include a |
23 | | detailed description of the reasons for the denial. |
24 | | (q) Any person approved to provide the training required by |
25 | | paragraph (3) of subsection (i) shall submit an application for |
26 | | re-approval between August 1 and August 15 of each odd-numbered |
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1 | | year and include a non-refundable application fee of $2,000 to |
2 | | be deposited into the Cannabis Regulation Fund or a fee as may |
3 | | be set by rule. |
4 | | Section 15-45. Renewal. |
5 | | (a) Adult Use Dispensing Organization Licenses shall |
6 | | expire on March 31 of even-numbered years. |
7 | | (b) Agent identification cards shall expire one year from |
8 | | the date they are issued. |
9 | | (c) Licensees and dispensing agents shall submit a renewal |
10 | | application as provided by the Department and pay the required |
11 | | renewal fee. The Department shall require an agent, employee, |
12 | | contracting, and subcontracting diversity report and an |
13 | | environmental impact report with its renewal application. No |
14 | | license or agent identification card shall be renewed if it is |
15 | | currently under revocation or suspension for violation of this |
16 | | Article or any rules that may be adopted under this Article or |
17 | | the licensee, principal officer, board member, person having a |
18 | | financial or voting interest of 5% or greater in the licensee, |
19 | | or agent is delinquent in filing any required tax returns or |
20 | | paying any amounts owed to the State of Illinois. |
21 | | (d) Renewal fees are: |
22 | | (1) For a dispensing organization, $60,000, to be |
23 | | deposited into the Cannabis Regulation Fund. |
24 | | (2) For an agent identification card, $100, to be |
25 | | deposited into the Cannabis Regulation Fund. |
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1 | | (e) If a dispensing organization fails to renew its license |
2 | | before expiration, the dispensing organization shall cease |
3 | | operations until the license is renewed. |
4 | | (f) If a dispensing organization agent fails to renew his |
5 | | or her registration before its expiration, he or she shall |
6 | | cease to perform duties authorized by this Article at a |
7 | | dispensing organization until his or her registration is |
8 | | renewed. |
9 | | (g) Any dispensing organization that continues to operate |
10 | | or dispensing agent that continues to perform duties authorized |
11 | | by this Article at a dispensing organization that fails to |
12 | | renew its license is subject to penalty as provided in this |
13 | | Article, or any rules that may be adopted pursuant to this |
14 | | Article. |
15 | | (h) The Department shall not renew a license if the |
16 | | applicant is delinquent in filing any required tax returns or |
17 | | paying any amounts owed to the State of Illinois. The |
18 | | Department shall not renew a dispensing agent identification |
19 | | card if the applicant is delinquent in filing any required tax |
20 | | returns or paying any amounts owed to the State of Illinois. |
21 | | Section 15-50. Disclosure of ownership and control. |
22 | | (a) Each dispensing organization applicant and licensee |
23 | | shall file and maintain a Table of Organization, Ownership and |
24 | | Control with the Department. The Table of Organization, |
25 | | Ownership and Control shall contain the information required by |
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1 | | this Section in sufficient detail to identify all owners, |
2 | | directors, and principal officers, and the title of each |
3 | | principal officer or business entity that, through direct or |
4 | | indirect means, manages, owns, or controls the applicant or |
5 | | licensee. |
6 | | (b) The Table of Organization, Ownership and Control shall |
7 | | identify the following information: |
8 | | (1) The management structure, ownership, and control |
9 | | of the applicant or license holder including the name of |
10 | | each principal officer or business entity, the office or |
11 | | position held, and the percentage ownership interest, if |
12 | | any. If the business entity has a parent company, the name |
13 | | of each owner, board member, and officer of the parent |
14 | | company and his or her percentage ownership interest in the |
15 | | parent company and the dispensing organization. |
16 | | (2) If the applicant or licensee is a business entity |
17 | | with publicly traded stock, the identification of |
18 | | ownership shall be provided as required in subsection (c). |
19 | | (c) If a business entity identified in subsection (b) is a |
20 | | publicly traded company, the following information shall be |
21 | | provided in the Table of Organization, Ownership and Control: |
22 | | (1) The name and percentage of ownership interest of |
23 | | each individual or business entity with ownership of more |
24 | | than 5% of the voting shares of the entity, to the extent |
25 | | such information is known or contained in 13D or 13G |
26 | | Securities and Exchange Commission filings. |
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1 | | (2) To the extent known, the names and percentage of |
2 | | interest of ownership of persons who are relatives of one |
3 | | another and who together exercise control over or own more |
4 | | than 10% of the voting shares of the entity. |
5 | | (d) A dispensing organization with a parent company or |
6 | | companies, or partially owned or controlled by another entity |
7 | | must disclose to the Department the relationship and all |
8 | | owners, board members, officers, or individuals with control or |
9 | | management of those entities. A dispensing organization shall |
10 | | not shield its ownership or control from the Department. |
11 | | (e) All principal officers must submit a complete online |
12 | | application with the Department within 14 days of the |
13 | | dispensing organization being licensed by the Department or |
14 | | within 14 days of Department notice of approval as a new |
15 | | principal officer. |
16 | | (f) A principal officer may not allow his or her |
17 | | registration to expire. |
18 | | (g) A dispensing organization separating with a principal |
19 | | officer must do so under this Act. The principal officer must |
20 | | communicate the separation to the Department within 5 business |
21 | | days. |
22 | | (h) A principal officer not in compliance with the |
23 | | requirements of this Act shall be removed from his or her |
24 | | position with the dispensing organization or shall otherwise |
25 | | terminate his or her affiliation. Failure to do so may subject |
26 | | the dispensing organization to discipline, suspension, or |
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1 | | revocation of its license by the Department. |
2 | | (i) It is the responsibility of the dispensing organization |
3 | | and its principal officers to promptly notify the Department of |
4 | | any change of the principal place of business address, hours of |
5 | | operation, change in ownership or control, or a change of the |
6 | | dispensing organization's primary or secondary contact |
7 | | information. Any changes must be made to the Department in |
8 | | writing. |
9 | | Section 15-55. Financial responsibility. Evidence of |
10 | | financial responsibility is a requirement for the issuance, |
11 | | maintenance, or reactivation of a license under this Article. |
12 | | Evidence of financial responsibility shall be used to guarantee |
13 | | that the dispensing organization timely and successfully |
14 | | completes dispensary construction, operates in a manner that |
15 | | provides an uninterrupted supply of cannabis, faithfully pays |
16 | | registration renewal fees, keeps accurate books and records, |
17 | | makes regularly required reports, complies with State tax |
18 | | requirements, and conducts the dispensing organization in |
19 | | conformity with this Act and rules. Evidence of financial |
20 | | responsibility shall be provided by one of the following: |
21 | | (1) Establishing and maintaining an escrow or surety |
22 | | account in a financial institution in the amount of |
23 | | $50,000, with escrow terms, approved by the Department, |
24 | | that it shall be payable to the Department in the event of |
25 | | circumstances outlined in this Act and rules. |
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1 | | (A) A financial institution may not return money in |
2 | | an escrow or surety account to the dispensing |
3 | | organization that established the account or a |
4 | | representative of the organization unless the |
5 | | organization or representative presents a statement |
6 | | issued by the Department indicating that the account |
7 | | may be released. |
8 | | (B) The escrow or surety account shall not be |
9 | | canceled on less than 30 days' notice in writing to the |
10 | | Department, unless otherwise approved by the |
11 | | Department. If an escrow or surety account is canceled |
12 | | and the registrant fails to secure a new account with |
13 | | the required amount on or before the effective date of |
14 | | cancellation, the registrant's registration may be |
15 | | revoked. The total and aggregate liability of the |
16 | | surety on the bond is limited to the amount specified |
17 | | in the escrow or surety account. |
18 | | (2) Providing a surety bond in the amount of $50,000, |
19 | | naming the dispensing organization as principal of the |
20 | | bond, with terms, approved by the Department, that the bond |
21 | | defaults to the Department in the event of circumstances |
22 | | outlined in this Act and rules. Bond terms shall include: |
23 | | (A) The business name and registration number on |
24 | | the bond must correspond exactly with the business name |
25 | | and registration number in the Department's records. |
26 | | (B) The bond must be written on a form approved by |
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1 | | the Department. |
2 | | (C) A copy of the bond must be received by the |
3 | | Department within 90 days after the effective date. |
4 | | (D) The bond shall not be canceled by a surety on |
5 | | less than 30 days' notice in writing to the Department. |
6 | | If a bond is canceled and the registrant fails to file |
7 | | a new bond with the Department in the required amount |
8 | | on or before the effective date of cancellation, the |
9 | | registrant's registration may be revoked. The total |
10 | | and aggregate liability of the surety on the bond is |
11 | | limited to the amount specified in the bond. |
12 | | Section 15-60. Changes to a dispensing organization. |
13 | | (a) A license shall be issued to the specific dispensing |
14 | | organization identified on the application and for the specific |
15 | | location proposed. The license is valid only as designated on |
16 | | the license and for the location for which it is issued. |
17 | | (b) A dispensing organization may only add principal |
18 | | officers after being approved by the Department. |
19 | | (c) A dispensing organization shall provide written notice |
20 | | of the removal of a principal officer within 5 business days |
21 | | after removal. The notice shall include the written agreement |
22 | | of the principal officer being removed, unless otherwise |
23 | | approved by the Department, and allocation of ownership shares |
24 | | after removal in an updated ownership chart. |
25 | | (d) A dispensing organization shall provide a written |
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1 | | request to the Department for the addition of principal |
2 | | officers. A dispensing organization shall submit proposed |
3 | | principal officer applications on forms approved by the |
4 | | Department. |
5 | | (e) All proposed new principal officers shall be subject to |
6 | | the requirements of this Act, this Article, and any rules that |
7 | | may be adopted pursuant to this Act. |
8 | | (f) The Department may prohibit the addition of a principal |
9 | | officer to a dispensing organization for failure to comply with |
10 | | this Act, this Article, and any rules that may be adopted |
11 | | pursuant to this Act. |
12 | | (g) A dispensing organization may not assign a license. |
13 | | (h) A dispensing organization may not transfer a license |
14 | | without prior Department approval. Such approval may be |
15 | | withheld if the person to whom the license is being transferred |
16 | | does not commit to the same or a similar community engagement |
17 | | plan provided as part of the dispensing organization's |
18 | | application under paragraph (18) of subsection (d) of Section |
19 | | 15-25, and such transferee's license shall be conditional upon |
20 | | that commitment. |
21 | | (i) With the addition or removal of principal officers, the |
22 | | Department will review the ownership structure to determine |
23 | | whether the change in ownership has had the effect of a |
24 | | transfer of the license. The dispensing organization shall |
25 | | supply all ownership documents requested by the Department. |
26 | | (j) A dispensing organization may apply to the Department |
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1 | | to approve a sale of the dispensing organization. A request to |
2 | | sell the dispensing organization must be on application forms |
3 | | provided by the Department. A request for an approval to sell a |
4 | | dispensing organization must comply with the following: |
5 | | (1) New application materials shall comply with this |
6 | | Act and any rules that may be adopted pursuant to this Act; |
7 | | (2) Application materials shall include a change of |
8 | | ownership fee of $5,000 to be deposited into the Cannabis |
9 | | Regulation Fund; |
10 | | (3) The application materials shall provide proof that |
11 | | the transfer of ownership will not have the effect of |
12 | | granting any of the owners or principal officers direct or |
13 | | indirect ownership or control of more than 10 adult use |
14 | | dispensing organization licenses; |
15 | | (4) New principal officers shall each complete the |
16 | | proposed new principal officer application; |
17 | | (5) If the Department approves the application |
18 | | materials and proposed new principal officer applications, |
19 | | it will perform an inspection before approving the sale and |
20 | | issuing the dispensing organization license; |
21 | | (6) If a new license is approved, the Department will |
22 | | issue a new license number and certificate to the new |
23 | | dispensing organization. |
24 | | (k) The dispensing organization shall provide the |
25 | | Department with the personal information for all new dispensing |
26 | | organizations agents as required in this Article and all new |
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1 | | dispensing organization agents shall be subject to the |
2 | | requirements of this Article. A dispensing organization agent |
3 | | must obtain an agent identification card from the Department |
4 | | before beginning work at a dispensary. |
5 | | (l) Before remodeling, expansion, reduction, or other |
6 | | physical, noncosmetic alteration of a dispensary, the |
7 | | dispensing organization must notify the Department and confirm |
8 | | the alterations are in compliance with this Act and any rules |
9 | | that may be adopted pursuant to this Act. |
10 | | Section 15-65. Administration. |
11 | | (a) A dispensing organization shall establish, maintain, |
12 | | and comply with written policies and procedures as submitted in |
13 | | the Business, Financial and Operating plan as required in this |
14 | | Article or by rules established by the Department, and approved |
15 | | by the Department, for the security, storage, inventory, and |
16 | | distribution of cannabis. These policies and procedures shall |
17 | | include methods for identifying, recording, and reporting |
18 | | diversion, theft, or loss, and for correcting errors and |
19 | | inaccuracies in inventories. At a minimum, dispensing |
20 | | organizations shall ensure the written policies and procedures |
21 | | provide for the following: |
22 | | (1) Mandatory and voluntary recalls of cannabis |
23 | | products. The policies shall be adequate to deal with |
24 | | recalls due to any action initiated at the request of the |
25 | | Department and any voluntary action by the dispensing |
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1 | | organization to remove defective or potentially defective |
2 | | cannabis from the market or any action undertaken to |
3 | | promote public health and safety, including: |
4 | | (i) A mechanism reasonably calculated to contact |
5 | | purchasers who have, or likely have, obtained the |
6 | | product from the dispensary, including information on |
7 | | the policy for return of the recalled product; |
8 | | (ii) A mechanism to identify and contact the adult |
9 | | use cultivation center, craft grower, or infuser that |
10 | | manufactured the cannabis; |
11 | | (iii) Policies for communicating with the |
12 | | Department, the Department of Agriculture, and the |
13 | | Department of Public Health within 24 hours of |
14 | | discovering defective or potentially defective |
15 | | cannabis; and |
16 | | (iv) Policies for destruction of any recalled |
17 | | cannabis product; |
18 | | (2) Responses to local, State, or national |
19 | | emergencies, including natural disasters, that affect the |
20 | | security or operation of a dispensary; |
21 | | (3) Segregation and destruction of outdated, damaged, |
22 | | deteriorated, misbranded, or adulterated cannabis. This |
23 | | procedure shall provide for written documentation of the |
24 | | cannabis disposition; |
25 | | (4) Ensure the oldest stock of a cannabis product is |
26 | | distributed first. The procedure may permit deviation from |
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1 | | this requirement, if such deviation is temporary and |
2 | | appropriate; |
3 | | (5) Training of dispensing organization agents in the |
4 | | provisions of this Act and rules, to effectively operate |
5 | | the point-of-sale system and the State's verification |
6 | | system, proper inventory handling and tracking, specific |
7 | | uses of cannabis or cannabis-infused products, instruction |
8 | | regarding regulatory inspection preparedness and law |
9 | | enforcement interaction, awareness of the legal |
10 | | requirements for maintaining status as an agent, and other |
11 | | topics as specified by the dispensing organization or the |
12 | | Department. The dispensing organization shall maintain |
13 | | evidence of all training provided to each agent in its |
14 | | files that is subject to inspection and audit by the |
15 | | Department. The dispensing organization shall ensure |
16 | | agents receive a minimum of 8 hours of training subject to |
17 | | the requirements in subsection (i) of Section 15-40 |
18 | | annually, unless otherwise approved by the Department; |
19 | | (6) Maintenance of business records consistent with |
20 | | industry standards, including bylaws, consents, manual or |
21 | | computerized records of assets and liabilities, audits, |
22 | | monetary transactions, journals, ledgers, and supporting |
23 | | documents, including agreements, checks, invoices, |
24 | | receipts, and vouchers. Records shall be maintained in a |
25 | | manner consistent with this Act and shall be retained for 5 |
26 | | years; |
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1 | | (7) Inventory control, including: |
2 | | (i) Tracking purchases and denials of sale; |
3 | | (ii) Disposal of unusable or damaged cannabis as |
4 | | required by this Act and rules; and |
5 | | (8) Purchaser education and support, including: |
6 | | (i) Whether possession of cannabis is illegal |
7 | | under federal law; |
8 | | (ii) Current educational information issued by the |
9 | | Department of Public Health about the health risks |
10 | | associated with the use or abuse of cannabis; |
11 | | (iii) Information about possible side effects; |
12 | | (iv) Prohibition on smoking cannabis in public |
13 | | places; and |
14 | | (v) Offering any other appropriate purchaser |
15 | | education or support materials. |
16 | | (b) BLANK. |
17 | | (c) A dispensing organization shall maintain copies of the |
18 | | policies and procedures on the dispensary premises and provide |
19 | | copies to the Department upon request. The dispensing |
20 | | organization shall review the dispensing organization policies |
21 | | and procedures at least once every 12 months from the issue |
22 | | date of the license and update as needed due to changes in |
23 | | industry standards or as requested by the Department. |
24 | | (d) A dispensing organization shall ensure that each |
25 | | principal officer and each dispensing organization agent has a |
26 | | current agent identification card in the agent's immediate |
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1 | | possession when the agent is at the dispensary. |
2 | | (e) A dispensing organization shall provide prompt written |
3 | | notice to the Department, including the date of the event, when |
4 | | a dispensing organization agent no longer is employed by the |
5 | | dispensing organization. |
6 | | (f) A dispensing organization shall promptly document and |
7 | | report any loss or theft of cannabis from the dispensary to the |
8 | | Department of State Police and the Department. It is the duty |
9 | | of any dispensing organization agent who becomes aware of the |
10 | | loss or theft to report it as provided in this Article. |
11 | | (g) A dispensing organization shall post the following |
12 | | information in a conspicuous location in an area of the |
13 | | dispensary accessible to consumers: |
14 | | (1) The dispensing organization's license; |
15 | | (2) The hours of operation. |
16 | | (h) Signage that shall be posted inside the premises. |
17 | | (1) All dispensing organizations must display a |
18 | | placard that states the following: "Cannabis consumption |
19 | | can impair cognition and driving, is for adult use only, |
20 | | may be habit forming, and should not be used by pregnant or |
21 | | breastfeeding women.". |
22 | | (2) Any dispensing organization that sells edible |
23 | | cannabis-infused products must display a placard that |
24 | | states the following: |
25 | | (A) "Edible cannabis-infused products were |
26 | | produced in a kitchen that may also process common food |
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1 | | allergens."; and |
2 | | (B) "The effects of cannabis products can vary from |
3 | | person to person, and it can take as long as two hours |
4 | | to feel the effects of some cannabis-infused products. |
5 | | Carefully review the portion size information and |
6 | | warnings contained on the product packaging before |
7 | | consuming.". |
8 | | (3) All of the required signage in this subsection (h) |
9 | | shall be no smaller than 24 inches tall by 36 inches wide, |
10 | | with typed letters no smaller than 2 inches. The signage |
11 | | shall be clearly visible and readable by customers. The |
12 | | signage shall be placed in the area where cannabis and |
13 | | cannabis-infused products are sold and may be translated |
14 | | into additional languages as needed. The Department may |
15 | | require a dispensary to display the required signage in a |
16 | | different language, other than English, if the Secretary |
17 | | deems it necessary. |
18 | | (i) A dispensing organization shall prominently post |
19 | | notices inside the dispensing organization that state |
20 | | activities that are strictly prohibited and punishable by law, |
21 | | including, but not limited to: |
22 | | (1) No minors permitted on the premises unless the |
23 | | minor is a minor qualifying patient under the Compassionate |
24 | | Use of Medical Cannabis Pilot Program Act; |
25 | | (2) Distribution to persons under the age of 21 is |
26 | | prohibited; |
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1 | | (3) Transportation of cannabis or cannabis products |
2 | | across state lines is prohibited. |
3 | | Section 15-70. Operational requirements; prohibitions. |
4 | | (a) A dispensing organization shall operate in accordance |
5 | | with the representations made in its application and license |
6 | | materials. It shall be in compliance with this Act and rules. |
7 | | (b) A dispensing organization must include the legal name |
8 | | of the dispensary on the packaging of any cannabis product it |
9 | | sells. |
10 | | (c) All cannabis, cannabis-infused products, and cannabis |
11 | | seeds must be obtained from an Illinois registered adult use |
12 | | cultivation center, craft grower, infuser, or another |
13 | | dispensary. |
14 | | (d) Dispensing organizations are prohibited from selling |
15 | | any product containing alcohol except tinctures, which must be |
16 | | limited to containers that are no larger than 100 milliliters. |
17 | | (e) A dispensing organization shall inspect and count |
18 | | product received by the adult use cultivation center before |
19 | | dispensing it. |
20 | | (f) A dispensing organization may only accept cannabis |
21 | | deliveries into a restricted access area. Deliveries may not be |
22 | | accepted through the public or limited access areas unless |
23 | | otherwise approved by the Department. |
24 | | (g) A dispensing organization shall maintain compliance |
25 | | with State and local building, fire, and zoning requirements or |
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1 | | regulations. |
2 | | (h) A dispensing organization shall submit a list to the |
3 | | Department of the names of all service professionals that will |
4 | | work at the dispensary. The list shall include a description of |
5 | | the type of business or service provided. Changes to the |
6 | | service professional list shall be promptly provided. No |
7 | | service professional shall work in the dispensary until the |
8 | | name is provided to the Department on the service professional |
9 | | list. |
10 | | (i) A dispensing organization's license allows for a |
11 | | dispensary to be operated only at a single location. |
12 | | (j) A dispensary may operate between 6 a.m. and 10 p.m. |
13 | | local time. |
14 | | (k) A dispensing organization must keep all lighting |
15 | | outside and inside the dispensary in good working order and |
16 | | wattage sufficient for security cameras. |
17 | | (l) A dispensing organization shall ensure that any |
18 | | building or equipment used by a dispensing organization for the |
19 | | storage or sale of cannabis is maintained in a clean and |
20 | | sanitary condition. |
21 | | (m) The dispensary shall be free from infestation by |
22 | | insects, rodents, or pests. |
23 | | (n) A dispensing organization shall not: |
24 | | (1) Produce or manufacture cannabis; |
25 | | (2) Accept a cannabis product from an adult use |
26 | | cultivation center, craft grower, infuser, dispensing |
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1 | | organization, or transporting organization unless it is |
2 | | pre-packaged and labeled in accordance with this Act and |
3 | | any rules that may be adopted pursuant to this Act; |
4 | | (3) Obtain cannabis or cannabis-infused products from |
5 | | outside the State of Illinois; |
6 | | (4) Sell cannabis or cannabis-infused products to a |
7 | | purchaser unless the dispensary organization is licensed |
8 | | under the Compassionate Use of Medical Cannabis Pilot |
9 | | Program, and the individual is registered under the |
10 | | Compassionate Use of Medical Cannabis Pilot Program or the |
11 | | purchaser has been verified to be over the age of 21; |
12 | | (5) Enter into an exclusive agreement with any adult |
13 | | use cultivation center, craft grower, or infuser. |
14 | | Dispensaries shall provide consumers an assortment of |
15 | | products from various cannabis business establishment |
16 | | licensees such that the inventory available for sale at any |
17 | | dispensary from any single cultivation center, craft |
18 | | grower, processor, or infuser entity shall not be more than |
19 | | 40% of the total inventory available for sale. For the |
20 | | purpose of this subsection, a cultivation center, craft |
21 | | grower, processor, or infuser shall be considered part of |
22 | | the same entity if the licensees share at least one |
23 | | principal officer. The Department may request that a |
24 | | dispensary diversify its products as needed or otherwise |
25 | | discipline a dispensing organization for violating this |
26 | | requirement; |
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1 | | (6) Refuse to conduct business with an adult use |
2 | | cultivation center, craft grower, transporting |
3 | | organization, or infuser that has the ability to properly |
4 | | deliver the product and is permitted by the Department of |
5 | | Agriculture, on the same terms as other adult use |
6 | | cultivation centers, craft growers, infusers, or |
7 | | transporters with whom it is dealing; |
8 | | (7) Operate drive-through windows; |
9 | | (8) Allow for the dispensing of cannabis or |
10 | | cannabis-infused products in vending machines; |
11 | | (9) Transport cannabis to residences or other |
12 | | locations where purchasers may be for delivery; |
13 | | (10) Enter into agreements to allow persons who are not |
14 | | dispensing organization agents to deliver cannabis or to |
15 | | transport cannabis to purchasers. |
16 | | (11) Operate a dispensary if its video surveillance |
17 | | equipment is inoperative; |
18 | | (12) Operate a dispensary if the point-of-sale |
19 | | equipment is inoperative; |
20 | | (13) Operate a dispensary if the State's cannabis |
21 | | electronic verification system is inoperative; |
22 | | (14) Have fewer than 2 people working at the dispensary |
23 | | at any time while the dispensary is open; |
24 | | (15) Be located within 1,500 feet of the property line |
25 | | of a pre-existing dispensing organization; |
26 | | (16) Sell clones or any other live plant material; |
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1 | | (17) Sell cannabis, cannabis concentrate, or |
2 | | cannabis-infused products in combination or bundled with |
3 | | each other or any other items for one price, and each item |
4 | | of cannabis, concentrate, or cannabis-infused product must |
5 | | be separately identified by quantity and price on the |
6 | | receipt; |
7 | | (18) Violate any other requirements or prohibitions |
8 | | set by Department rules. |
9 | | (o) It is unlawful for any person having an Early Approval |
10 | | Adult Use Cannabis Dispensing Organization License, a |
11 | | Conditional Adult Use Cannabis Dispensing Organization, an |
12 | | Adult Use Dispensing Organization License, or a medical |
13 | | cannabis dispensing organization license issued under the |
14 | | Compassionate Use of Medical Cannabis Pilot Program or any |
15 | | officer, associate, member, representative, or agent of such
|
16 | | licensee to accept, receive, or borrow money or anything else
|
17 | | of value or accept or receive credit (other than merchandising
|
18 | | credit in the ordinary course of business for a period not to
|
19 | | exceed 30 days) directly or indirectly from any adult use
|
20 | | cultivation center, craft grower, infuser, or transporting
|
21 | | organization. This includes anything received or borrowed or |
22 | | from any stockholders, officers, agents, or persons connected |
23 | | with an adult
use cultivation center, craft grower, infuser, or
|
24 | | transporting organization. This also excludes any received or |
25 | | borrowed in exchange for
preferential placement by the |
26 | | dispensing organization, including preferential placement on |
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1 | | the dispensing organization's shelves, display cases, or |
2 | | website. |
3 | | (p) It is unlawful for any person having an Early Approval |
4 | | Adult Use Cannabis Dispensing Organization License, a |
5 | | Conditional Adult Use Cannabis Dispensing Organization, an |
6 | | Adult Use Dispensing Organization License, or a medical |
7 | | cannabis dispensing organization license issued under the |
8 | | Compassionate Use of Medical Cannabis Pilot Program to enter |
9 | | into any contract with any person licensed to cultivate, |
10 | | process, or transport cannabis whereby such dispensary |
11 | | organization agrees not to sell any cannabis cultivated, |
12 | | processed, transported, manufactured, or distributed by any |
13 | | other cultivator, transporter, or infuser, and any provision in |
14 | | any contract violative of this Section shall render the whole |
15 | | of such contract void and no action shall be brought thereon in |
16 | | any court. |
17 | | Section 15-75. Inventory control system. |
18 | | (a) A dispensing organization agent-in-charge shall have |
19 | | primary oversight of the dispensing organization's cannabis |
20 | | inventory verification system, and its point-of-sale system. |
21 | | The inventory point-of-sale system shall be real-time, |
22 | | web-based, and accessible by the Department at any time. The |
23 | | point-of-sale system shall track, at a minimum the date of |
24 | | sale, amount, price, and currency. |
25 | | (b) A dispensing organization shall establish an account |
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1 | | with the State's verification system that documents: |
2 | | (1) Each sales transaction at the time of sale and each |
3 | | day's beginning inventory, acquisitions, sales, disposal, |
4 | | and ending inventory. |
5 | | (2) Acquisition of cannabis and cannabis-infused |
6 | | products from a licensed adult use cultivation center, |
7 | | craft grower, infuser, or transporter, including: |
8 | | (i) A description of the products, including the |
9 | | quantity, strain, variety, and batch number of each |
10 | | product received; |
11 | | (ii) The name and registry identification number |
12 | | of the licensed adult use cultivation center, craft |
13 | | grower, or infuser providing the cannabis and |
14 | | cannabis-infused products; |
15 | | (iii) The name and registry identification number |
16 | | of the licensed adult use cultivation center, craft |
17 | | grower, infuser, or transportation agent delivering |
18 | | the cannabis; |
19 | | (iv) The name and registry identification number |
20 | | of the dispensing organization agent receiving the |
21 | | cannabis; and |
22 | | (v) The date of acquisition. |
23 | | (3) The disposal of cannabis, including: |
24 | | (i) A description of the products, including the |
25 | | quantity, strain, variety, batch number, and reason |
26 | | for the cannabis being disposed; |
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1 | | (ii) The method of disposal; and |
2 | | (iii) The date and time of disposal. |
3 | | (c) Upon cannabis delivery, a dispensing organization |
4 | | shall confirm the product's name, strain name, weight, and |
5 | | identification number on the manifest matches the information |
6 | | on the cannabis product label and package. The product name |
7 | | listed and the weight listed in the State's verification system |
8 | | shall match the product packaging. |
9 | | (d) The agent-in-charge shall conduct daily inventory |
10 | | reconciliation documenting and balancing cannabis inventory by |
11 | | confirming the State's verification system matches the |
12 | | dispensing organization's point-of-sale system and the amount |
13 | | of physical product at the dispensary. |
14 | | (1) A dispensing organization must receive Department |
15 | | approval before completing an inventory adjustment. It |
16 | | shall provide a detailed reason for the adjustment. |
17 | | Inventory adjustment documentation shall be kept at the |
18 | | dispensary for 2 years from the date performed. |
19 | | (2) If the dispensing organization identifies an |
20 | | imbalance in the amount of cannabis after the daily |
21 | | inventory reconciliation due to mistake, the dispensing |
22 | | organization shall determine how the imbalance occurred |
23 | | and immediately upon discovery take and document |
24 | | corrective action. If the dispensing organization cannot |
25 | | identify the reason for the mistake within 2 calendar days |
26 | | after first discovery, it shall inform the Department |
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1 | | immediately in writing of the imbalance and the corrective |
2 | | action taken to date. The dispensing organization shall |
3 | | work diligently to determine the reason for the mistake. |
4 | | (3) If the dispensing organization identifies an |
5 | | imbalance in the amount of cannabis after the daily |
6 | | inventory reconciliation or through other means due to |
7 | | theft, criminal activity, or suspected criminal activity, |
8 | | the dispensing organization shall immediately determine |
9 | | how the reduction occurred and take and document corrective |
10 | | action. Within 24 hours after the first discovery of the |
11 | | reduction due to theft, criminal activity, or suspected |
12 | | criminal activity, the dispensing organization shall |
13 | | inform the Department and the Department of State Police in |
14 | | writing. |
15 | | (4) The dispensing organization shall file an annual |
16 | | compilation report with the Department, including a |
17 | | financial statement that shall include, but not be limited |
18 | | to, an income statement, balance sheet, profit and loss |
19 | | statement, statement of cash flow, wholesale cost and |
20 | | sales, and any other documentation requested by the |
21 | | Department in writing. The financial statement shall |
22 | | include any other information the Department deems |
23 | | necessary in order to effectively administer this Act and |
24 | | all rules, orders, and final decisions promulgated under |
25 | | this Act. Statements required by this Section shall be |
26 | | filed with the Department within 60 days after the end of |
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1 | | the calendar year. The compilation report shall include a |
2 | | letter authored by a licensed certified public accountant |
3 | | that it has been reviewed and is accurate based on the |
4 | | information provided. The dispensing organization, |
5 | | financial statement, and accompanying documents are not |
6 | | required to be audited unless specifically requested by the |
7 | | Department. |
8 | | (e) A dispensing organization shall: |
9 | | (1) Maintain the documentation required in this |
10 | | Section in a secure locked location at the dispensing |
11 | | organization for 5 years from the date on the document; |
12 | | (2) Provide any documentation required to be |
13 | | maintained in this Section to the Department for review |
14 | | upon request; and |
15 | | (3) If maintaining a bank account, retain for a period |
16 | | of 5 years a record of each deposit or withdrawal from the |
17 | | account. |
18 | | (f) If a dispensing organization chooses to have a return |
19 | | policy for cannabis and cannabis products, the dispensing |
20 | | organization shall seek prior approval from the Department. |
21 | | Section 15-80. Storage requirements. |
22 | | (a) Authorized on-premises storage. A dispensing |
23 | | organization must store inventory on its premises. All |
24 | | inventory stored on the premises must be secured in a |
25 | | restricted access area and tracked consistently with the |
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1 | | inventory tracking rules. |
2 | | (b) A dispensary shall be of suitable size and construction |
3 | | to facilitate cleaning, maintenance, and proper operations. |
4 | | (c) A dispensary shall maintain adequate lighting, |
5 | | ventilation, temperature, humidity control, and equipment. |
6 | | (d) Containers storing cannabis that have been tampered |
7 | | with, damaged, or opened shall be labeled with the date opened |
8 | | and quarantined from other cannabis products in the vault until |
9 | | they are disposed. |
10 | | (e) Cannabis that was tampered with, expired, or damaged |
11 | | shall not be stored at the premises for more than 7 calendar |
12 | | days. |
13 | | (f) Cannabis samples shall be in a sealed container. |
14 | | Samples shall be maintained in the restricted access area. |
15 | | (g) The dispensary storage areas shall be maintained in |
16 | | accordance with the security requirements in this Act and |
17 | | rules. |
18 | | (h) Cannabis must be stored at appropriate temperatures and |
19 | | under appropriate conditions to help ensure that its packaging, |
20 | | strength, quality, and purity are not adversely affected. |
21 | | Section 15-85. Dispensing cannabis. |
22 | | (a) Before a dispensing organization agent dispenses |
23 | | cannabis to a purchaser, the agent shall: |
24 | | (1) Verify the age of the purchaser by checking a |
25 | | government-issued identification card by use of an |
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1 | | electronic reader or electronic scanning device to scan a |
2 | | purchaser's government-issued identification, if |
3 | | applicable, to determine the purchaser's age and the |
4 | | validity of the identification; |
5 | | (2) Verify the validity of the government-issued |
6 | | identification card; |
7 | | (3) Offer any appropriate purchaser education or |
8 | | support materials; |
9 | | (4) Enter the following information into the State's |
10 | | cannabis electronic verification system: |
11 | | (i) The dispensing organization agent's |
12 | | identification number; |
13 | | (ii) The dispensing organization's identification |
14 | | number; |
15 | | (iii) The amount, type (including strain, if |
16 | | applicable) of cannabis or cannabis-infused product |
17 | | dispensed; |
18 | | (iv) The date and time the cannabis was dispensed. |
19 | | (b) A dispensing organization shall refuse to sell cannabis |
20 | | or cannabis-infused products to any person unless the person |
21 | | produces a valid identification showing that the person is 21 |
22 | | years of age or older. A medical cannabis dispensing |
23 | | organization may sell cannabis or cannabis-infused products to |
24 | | a person who is under 21 years of age if the sale complies with |
25 | | the provisions of the Compassionate Use of Medical Cannabis |
26 | | Pilot Program Act and rules. |
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1 | | (c) For the purposes of this Section, valid identification |
2 | | must: |
3 | | (1) Be valid and unexpired; |
4 | | (2) Contain a photograph and the date of birth of the |
5 | | person. |
6 | | Section 15-90. Destruction and disposal of cannabis. |
7 | | (a) Cannabis and cannabis-infused products must be |
8 | | destroyed by rendering them unusable using methods approved by |
9 | | the Department that comply with this Act and rules. |
10 | | (b) Cannabis waste rendered unusable must be promptly |
11 | | disposed according to this Act and rules. Disposal of the |
12 | | cannabis waste rendered unusable may be delivered to a |
13 | | permitted solid waste facility for final disposition. |
14 | | Acceptable permitted solid waste facilities include, but are |
15 | | not limited to: |
16 | | (1) Compostable mixed waste: Compost, anaerobic |
17 | | digester, or other facility with approval of the |
18 | | jurisdictional health department. |
19 | | (2) Noncompostable mixed waste: Landfill, incinerator, |
20 | | or other facility with approval of the jurisdictional |
21 | | health department. |
22 | | (c) All waste and unusable product shall be weighed, |
23 | | recorded, and entered into the inventory system before |
24 | | rendering it unusable. All waste and unusable cannabis |
25 | | concentrates and cannabis-infused products shall be recorded |
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1 | | and entered into the inventory system before rendering it |
2 | | unusable. Verification of this event shall be performed by an |
3 | | agent-in-charge and conducted in an area with video |
4 | | surveillance. |
5 | | (d) Electronic documentation of destruction and disposal |
6 | | shall be maintained for a period of at least 5 years. |
7 | | Section 15-95. Agent-in-charge. |
8 | | (a) Every dispensing organization shall designate, at a |
9 | | minimum, one agent-in-charge for each licensed dispensary. The |
10 | | designated agent-in-charge must hold a dispensing organization |
11 | | agent identification card. Maintaining an agent-in-charge is a |
12 | | continuing requirement for the license, except as provided in |
13 | | subsection (f). |
14 | | (b) The agent-in-charge shall be a principal officer or a |
15 | | full-time agent of the dispensing organization and shall manage |
16 | | the dispensary. Managing the dispensary includes, but is not |
17 | | limited to, responsibility for opening and closing the |
18 | | dispensary, delivery acceptance, oversight of sales and |
19 | | dispensing organization agents, recordkeeping, inventory, |
20 | | dispensing organization agent training, and compliance with |
21 | | this Act and rules. Participation in affairs also includes the |
22 | | responsibility for maintaining all files subject to audit or |
23 | | inspection by the Department at the dispensary. |
24 | | (c) The agent-in-charge is responsible for promptly |
25 | | notifying the Department of any change of information required |
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1 | | to be reported to the Department. |
2 | | (d) In determining whether an agent-in-charge manages the |
3 | | dispensary, the Department may consider the responsibilities |
4 | | identified in this Section, the number of dispensing |
5 | | organization agents under the supervision of the |
6 | | agent-in-charge, and the employment relationship between the |
7 | | agent-in-charge and the dispensing organization, including the |
8 | | existence of a contract for employment and any other relevant |
9 | | fact or circumstance. |
10 | | (e) The agent-in-charge is responsible for notifying the |
11 | | Department of a change in the employment status of all |
12 | | dispensing organization agents within 5 business days after the |
13 | | change, including notice to the Department if the termination |
14 | | of an agent was for diversion of product or theft of currency. |
15 | | (f) In the event of the separation of an agent-in-charge |
16 | | due to death, incapacity, termination, or any other reason and |
17 | | if the dispensary does not have an active agent-in-charge, the |
18 | | dispensing organization shall immediately contact the |
19 | | Department and request a temporary certificate of authority |
20 | | allowing the continuing operation. The request shall include |
21 | | the name of an interim agent-in-charge until a replacement is |
22 | | identified, or shall include the name of the replacement. The |
23 | | Department shall issue the temporary certificate of authority |
24 | | promptly after it approves the request. If a dispensing |
25 | | organization fails to promptly request a temporary certificate |
26 | | of authority after the separation of the agent-in-charge, its |
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1 | | registration shall cease until the Department approves the |
2 | | temporary certificate of authority or registers a new |
3 | | agent-in-charge. No temporary certificate of authority shall |
4 | | be valid for more than 90 days. The succeeding agent-in-charge |
5 | | shall register with the Department in compliance with this |
6 | | Article. Once the permanent succeeding agent-in-charge is |
7 | | registered with the Department, the temporary certificate of |
8 | | authority is void. No temporary certificate of authority shall |
9 | | be issued for the separation of an agent-in-charge due to |
10 | | disciplinary action by the Department related to his or her |
11 | | conduct on behalf of the dispensing organization. |
12 | | (g) The dispensing organization agent-in-charge |
13 | | registration shall expire one year from the date it is issued. |
14 | | The agent-in-charge's registration shall be renewed annually. |
15 | | The Department shall review the dispensing organization's |
16 | | compliance history when determining whether to grant the |
17 | | request to renew. |
18 | | (h) Upon termination of an agent-in-charge's employment, |
19 | | the dispensing organization shall immediately reclaim the |
20 | | dispensing agent identification card. The dispensing |
21 | | organization shall promptly return the identification card to |
22 | | the Department. |
23 | | (i) The Department may deny an application or renewal or |
24 | | discipline or revoke an agent-in-charge identification card |
25 | | for any of the following reasons: |
26 | | (1) Submission of misleading, incorrect, false, or |
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1 | | fraudulent information in the application or renewal |
2 | | application; |
3 | | (2) Violation of the requirements of this Act or rules; |
4 | | (3) Fraudulent use of the agent-in-charge |
5 | | identification card; |
6 | | (4) Selling, distributing, transferring in any manner, |
7 | | or giving cannabis to any unauthorized person; |
8 | | (5) Theft of cannabis, currency, or any other items |
9 | | from a dispensary. |
10 | | (6) Tampering with, falsifying, altering, modifying, |
11 | | or duplicating an agent-in-charge identification card; |
12 | | (7) Tampering with, falsifying, altering, or modifying |
13 | | the surveillance video footage, point-of-sale system, or |
14 | | the State's verification system; |
15 | | (8) Failure to notify the Department immediately upon |
16 | | discovery that the agent-in-charge identification card has |
17 | | been lost, stolen, or destroyed; |
18 | | (9) Failure to notify the Department within 5 business |
19 | | days after a change in the information provided in the |
20 | | application for an agent-in-charge identification card; |
21 | | (10) Conviction of a felony offense in accordance with |
22 | | Sections 2105-131, 2105-135, and 2105-205 of the |
23 | | Department of Professional Regulation Law of the Civil |
24 | | Administrative Code of Illinois or any incident listed in |
25 | | this Act or rules following the issuance of an |
26 | | agent-in-charge identification card; |
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1 | | (11) Dispensing to purchasers in amounts above the |
2 | | limits provided in this Act; or |
3 | | (12) Delinquency in filing any required tax returns or |
4 | | paying any amounts owed to the State of Illinois |
5 | | Section 15-100. Security. |
6 | | (a) A dispensing organization shall implement security |
7 | | measures to deter and prevent entry into and theft of cannabis |
8 | | or currency. |
9 | | (b) A dispensing organization shall submit any changes to |
10 | | the floor plan or security plan to the Department for |
11 | | pre-approval. All cannabis shall be maintained and stored in a |
12 | | restricted access area during construction. |
13 | | (c) The dispensing organization shall implement security |
14 | | measures to protect the premises, purchasers, and dispensing |
15 | | organization agents including, but not limited to the |
16 | | following: |
17 | | (1) Establish a locked door or barrier between the |
18 | | facility's entrance and the limited access area; |
19 | | (2) Prevent individuals from remaining on the premises |
20 | | if they are not engaging in activity permitted by this Act |
21 | | or rules; |
22 | | (3) Develop a policy that addresses the maximum |
23 | | capacity and purchaser flow in the waiting rooms and |
24 | | limited access areas; |
25 | | (4) Dispose of cannabis in accordance with this Act and |
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1 | | rules; |
2 | | (5) During hours of operation, store and dispense all |
3 | | cannabis from the restricted access area. During |
4 | | operational hours, cannabis shall be stored in an enclosed |
5 | | locked room or cabinet and accessible only to specifically |
6 | | authorized dispensing organization agents; |
7 | | (6) When the dispensary is closed, store all cannabis |
8 | | and currency in a reinforced vault room in the restricted |
9 | | access area and in a manner as to prevent diversion, theft, |
10 | | or loss; |
11 | | (7) Keep the reinforced vault room and any other |
12 | | equipment or cannabis storage areas securely locked and |
13 | | protected from unauthorized entry; |
14 | | (8) Keep an electronic daily log of dispensing |
15 | | organization agents with access to the reinforced vault |
16 | | room and knowledge of the access code or combination; |
17 | | (9) Keep all locks and security equipment in good |
18 | | working order; |
19 | | (10) Maintain an operational security and alarm system |
20 | | at all times; |
21 | | (11) Prohibit keys, if applicable, from being left in |
22 | | the locks, or stored or placed in a location accessible to |
23 | | persons other than specifically authorized personnel; |
24 | | (12) Prohibit accessibility of security measures, |
25 | | including combination numbers, passwords, or electronic or |
26 | | biometric security systems to persons other than |
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1 | | specifically authorized dispensing organization agents; |
2 | | (13) Ensure that the dispensary interior and exterior |
3 | | premises are sufficiently lit to facilitate surveillance; |
4 | | (14) Ensure that trees, bushes, and other foliage |
5 | | outside of the dispensary premises do not allow for a |
6 | | person or persons to conceal themselves from sight; |
7 | | (15) Develop emergency policies and procedures for |
8 | | securing all product and currency following any instance of |
9 | | diversion, theft, or loss of cannabis, and conduct an |
10 | | assessment to determine whether additional safeguards are |
11 | | necessary; and |
12 | | (16) Develop sufficient additional safeguards in |
13 | | response to any special security concerns, or as required |
14 | | by the Department. |
15 | | (d) The Department may request or approve alternative |
16 | | security provisions that it determines are an adequate |
17 | | substitute for a security requirement specified in this |
18 | | Article. Any additional protections may be considered by the |
19 | | Department in evaluating overall security measures. |
20 | | (e) A dispensary organization may share premises with a |
21 | | craft grower or an infuser organization, or both, provided each |
22 | | licensee stores currency and cannabis or cannabis-infused |
23 | | products in a separate secured vault to which the other |
24 | | licensee does not have access or all licensees sharing a vault |
25 | | share more than 50% of the same ownership. |
26 | | (f) A dispensing organization shall provide additional |
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1 | | security as needed and in a manner appropriate for the |
2 | | community where it operates. |
3 | | (g) Restricted access areas. |
4 | | (1) All restricted access areas must be identified by |
5 | | the posting of a sign that is a minimum of 12 inches by 12 |
6 | | inches and that states "Do Not Enter - Restricted Access |
7 | | Area - Authorized Personnel Only" in lettering no smaller |
8 | | than one inch in height. |
9 | | (2) All restricted access areas shall be clearly |
10 | | described in the floor plan of the premises, in the form |
11 | | and manner determined by the Department, reflecting walls, |
12 | | partitions, counters, and all areas of entry and exit. The |
13 | | floor plan shall show all storage, disposal, and retail |
14 | | sales areas. |
15 | | (3) All restricted access areas must be secure, with |
16 | | locking devices that prevent access from the limited access |
17 | | areas. |
18 | | (h) Security and alarm. |
19 | | (1) A dispensing organization shall have an adequate |
20 | | security plan and security system to prevent and detect |
21 | | diversion, theft, or loss of cannabis, currency, or |
22 | | unauthorized intrusion using commercial grade equipment |
23 | | installed by an Illinois licensed private alarm contractor |
24 | | or private alarm contractor agency that shall, at a |
25 | | minimum, include: |
26 | | (i) A perimeter alarm on all entry points and glass |
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1 | | break protection on perimeter windows; |
2 | | (ii) Security shatterproof tinted film on exterior |
3 | | windows; |
4 | | (iii) A failure notification system that provides |
5 | | an audible, text, or visual notification of any failure |
6 | | in the surveillance system, including, but not limited |
7 | | to, panic buttons, alarms, and video monitoring |
8 | | system. The failure notification system shall provide |
9 | | an alert to designated dispensing organization agents |
10 | | within 5 minutes after the failure, either by telephone |
11 | | or text message; |
12 | | (iv) A duress alarm, panic button, and alarm, or |
13 | | holdup alarm and after-hours intrusion detection alarm |
14 | | that by design and purpose will directly or indirectly |
15 | | notify, by the most efficient means, the Public Safety |
16 | | Answering Point for the law enforcement agency having |
17 | | primary jurisdiction; |
18 | | (v) Security equipment to deter and prevent |
19 | | unauthorized entrance into the dispensary, including |
20 | | electronic door locks on the limited and restricted |
21 | | access areas that include devices or a series of |
22 | | devices to detect unauthorized intrusion that may |
23 | | include a signal system interconnected with a radio |
24 | | frequency method, cellular, private radio signals or |
25 | | other mechanical or electronic device. |
26 | | (2) All security system equipment and recordings shall |
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1 | | be maintained in good working order, in a secure location |
2 | | so as to prevent theft, loss, destruction, or alterations. |
3 | | (3) Access to surveillance monitoring recording |
4 | | equipment shall be limited to persons who are essential to |
5 | | surveillance operations, law enforcement authorities |
6 | | acting within their jurisdiction, security system service |
7 | | personnel, and the Department. A current list of authorized |
8 | | dispensing organization agents and service personnel that |
9 | | have access to the surveillance equipment must be available |
10 | | to the Department upon request. |
11 | | (4) All security equipment shall be inspected and |
12 | | tested at regular intervals, not to exceed one month from |
13 | | the previous inspection, and tested to ensure the systems |
14 | | remain functional. |
15 | | (5) The security system shall provide protection |
16 | | against theft and diversion that is facilitated or hidden |
17 | | by tampering with computers or electronic records. |
18 | | (6) The dispensary shall ensure all access doors are |
19 | | not solely controlled by an electronic access panel to |
20 | | ensure that locks are not released during a power outage. |
21 | | (i) To monitor the dispensary, the dispensing organization |
22 | | shall incorporate continuous electronic video monitoring |
23 | | including the following: |
24 | | (1) All monitors must be 19 inches or greater; |
25 | | (2) Unobstructed video surveillance of all enclosed |
26 | | dispensary areas, unless prohibited by law, including all |
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1 | | points of entry and exit that shall be appropriate for the |
2 | | normal lighting conditions of the area under surveillance. |
3 | | The cameras shall be directed so all areas are captured, |
4 | | including, but not limited to, safes, vaults, sales areas, |
5 | | and areas where cannabis is stored, handled, dispensed, or |
6 | | destroyed. Cameras shall be angled to allow for facial |
7 | | recognition, the capture of clear and certain |
8 | | identification of any person entering or exiting the |
9 | | dispensary area and in lighting sufficient during all times |
10 | | of night or day; |
11 | | (3) Unobstructed video surveillance of outside areas, |
12 | | the storefront, and the parking lot, that shall be |
13 | | appropriate for the normal lighting conditions of the area |
14 | | under surveillance. Cameras shall be angled so as to allow |
15 | | for the capture of facial recognition, clear and certain |
16 | | identification of any person entering or exiting the |
17 | | dispensary and the immediate surrounding area, and license |
18 | | plates of vehicles in the parking lot; |
19 | | (4) 24-hour recordings from all video cameras |
20 | | available for immediate viewing by the Department upon |
21 | | request. Recordings shall not be destroyed or altered and |
22 | | shall be retained for at least 90 days. Recordings shall be |
23 | | retained as long as necessary if the dispensing |
24 | | organization is aware of the loss or theft of cannabis or a |
25 | | pending criminal, civil, or administrative investigation |
26 | | or legal proceeding for which the recording may contain |
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1 | | relevant information; |
2 | | (5) The ability to immediately produce a clear, color |
3 | | still photo from the surveillance video, either live or |
4 | | recorded; |
5 | | (6) A date and time stamp embedded on all video |
6 | | surveillance recordings. The date and time shall be |
7 | | synchronized and set correctly and shall not significantly |
8 | | obscure the picture; |
9 | | (7) The ability to remain operational during a power |
10 | | outage and ensure all access doors are not solely |
11 | | controlled by an electronic access panel to ensure that |
12 | | locks are not released during a power outage; |
13 | | (8) All video surveillance equipment shall allow for |
14 | | the exporting of still images in an industry standard image |
15 | | format, including .jpg, .bmp, and .gif. Exported video |
16 | | shall have the ability to be archived in a proprietary |
17 | | format that ensures authentication of the video and |
18 | | guarantees that no alteration of the recorded image has |
19 | | taken place. Exported video shall also have the ability to |
20 | | be saved in an industry standard file format that can be |
21 | | played on a standard computer operating system. All |
22 | | recordings shall be erased or destroyed before disposal; |
23 | | (9) The video surveillance system shall be operational |
24 | | during a power outage with a 4-hour minimum battery backup; |
25 | | (10) A video camera or cameras recording at each |
26 | | point-of-sale location allowing for the identification of |
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1 | | the dispensing organization agent distributing the |
2 | | cannabis and any purchaser. The camera or cameras shall |
3 | | capture the sale, the individuals and the computer monitors |
4 | | used for the sale; |
5 | | (11) A failure notification system that provides an |
6 | | audible and visual notification of any failure in the |
7 | | electronic video monitoring system; and |
8 | | (12) All electronic video surveillance monitoring must |
9 | | record at least the equivalent of 8 frames per second and |
10 | | be available as recordings to the Department and the |
11 | | Department of State Police 24 hours a day via a secure |
12 | | web-based portal with reverse functionality. |
13 | | (j) The requirements contained in this Act are minimum |
14 | | requirements for operating a dispensing organization. The |
15 | | Department may establish additional requirements by rule. |
16 | | Section 15-110. Recordkeeping. |
17 | | (a) Dispensing organization records must be maintained |
18 | | electronically for 3 years and be available for inspection by |
19 | | the Department upon request. Required written records include, |
20 | | but are not limited to, the following: |
21 | | (1) Operating procedures; |
22 | | (2) Inventory records, policies, and procedures; |
23 | | (3) Security records; |
24 | | (4) Audit records; |
25 | | (5) Staff training plans and completion documentation; |
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1 | | (6) Staffing plan; and |
2 | | (7) Business records, including but not limited to: |
3 | | (i) Assets and liabilities; |
4 | | (ii) Monetary transactions; |
5 | | (iii) Written or electronic accounts, including |
6 | | bank statements, journals, ledgers, and supporting |
7 | | documents, agreements, checks, invoices, receipts, and |
8 | | vouchers; and |
9 | | (iv) Any other financial accounts reasonably |
10 | | related to the dispensary operations. |
11 | | (b) Storage and transfer of records. If a dispensary closes |
12 | | due to insolvency, revocation, bankruptcy, or for any other |
13 | | reason, all records must be preserved at the expense of the |
14 | | dispensing organization for at least 3 years in a form and |
15 | | location in Illinois acceptable to the Department. The |
16 | | dispensing organization shall keep the records longer if |
17 | | requested by the Department. The dispensing organization shall |
18 | | notify the Department of the location where the dispensary |
19 | | records are stored or transferred. |
20 | | Section 15-120. Closure of a dispensary. |
21 | | (a) If a dispensing organization decides not to renew its |
22 | | license or decides to close its business, it shall promptly |
23 | | notify the Department not less than 3 months before the |
24 | | effective date of the closing date or as otherwise authorized |
25 | | by the Department. |
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1 | | (b) The dispensing organization shall work with the |
2 | | Department to develop a closure plan that addresses, at a |
3 | | minimum, the transfer of business records, transfer of cannabis |
4 | | products, and anything else the Department finds necessary. |
5 | | Section 15-125. Fees. After January 1, 2022, the Department |
6 | | may by rule modify any fee established under this Article. |
7 | | Section 15-135. Investigations. |
8 | | (a) Dispensing organizations are subject to random and |
9 | | unannounced dispensary inspections and cannabis testing by the |
10 | | Department, the Department of State Police, and local law |
11 | | enforcement. |
12 | | (b) The Department and its authorized representatives may |
13 | | enter any place, including a vehicle, in which cannabis is |
14 | | held, stored, dispensed, sold, produced, delivered, |
15 | | transported, manufactured, or disposed of and inspect, in a |
16 | | reasonable manner, the place and all pertinent equipment, |
17 | | containers and labeling, and all things including records, |
18 | | files, financial data, sales data, shipping data, pricing data, |
19 | | personnel data, research, papers, processes, controls, and |
20 | | facility, and inventory any stock of cannabis and obtain |
21 | | samples of any cannabis or cannabis-infused product, any labels |
22 | | or containers for cannabis, or paraphernalia. |
23 | | (c) The Department may conduct an investigation of an |
24 | | applicant, application, dispensing organization, principal |
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1 | | officer, dispensary agent, third party vendor, or any other |
2 | | party associated with a dispensing organization for an alleged |
3 | | violation of this Act or rules or to determine qualifications |
4 | | to be granted a registration by the Department. |
5 | | (d) The Department may require an applicant or holder of |
6 | | any license issued pursuant to this Article to produce |
7 | | documents, records, or any other material pertinent to the |
8 | | investigation of an application or alleged violations of this |
9 | | Act or rules. Failure to provide the required material may be |
10 | | grounds for denial or discipline. |
11 | | (e) Every person charged with preparation, obtaining, or |
12 | | keeping records, logs, reports, or other documents in |
13 | | connection with this Act and rules and every person in charge, |
14 | | or having custody, of those documents shall, upon request by |
15 | | the Department, make the documents immediately available for |
16 | | inspection and copying by the Department, the Department's |
17 | | authorized representative, or others authorized by law to |
18 | | review the documents. |
19 | | Section 15-140. Citations. The Department may issue |
20 | | nondisciplinary citations for minor violations. Any such |
21 | | citation issued by the Department may be accompanied by a fee. |
22 | | The fee shall not exceed $20,000 per violation. The citation |
23 | | shall be issued to the licensee and shall contain the |
24 | | licensee's name and address, the licensee's license number, a |
25 | | brief factual statement, the Sections of the law allegedly |
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1 | | violated, and the fee, if any, imposed. The citation must |
2 | | clearly state that the licensee may choose, in lieu of |
3 | | accepting the citation, to request a hearing. If the licensee |
4 | | does not dispute the matter in the citation with the Department |
5 | | within 30 days after the citation is served, then the citation |
6 | | shall become final and not subject to appeal. The penalty shall |
7 | | be a fee or other conditions as established by rule. |
8 | | Section 15-145. Grounds for discipline. |
9 | | (a) The Department may deny issuance, refuse to renew or |
10 | | restore, or may reprimand, place on probation, suspend, revoke, |
11 | | or take other disciplinary or nondisciplinary action against |
12 | | any license or agent identification card or may impose a fine |
13 | | for any of the following: |
14 | | (1) Material misstatement in furnishing information to |
15 | | the Department; |
16 | | (2) Violations of this Act or rules; |
17 | | (3) Obtaining an authorization or license by fraud or |
18 | | misrepresentation; |
19 | | (4) A pattern of conduct that demonstrates |
20 | | incompetence or that the applicant has engaged in conduct |
21 | | or actions that would constitute grounds for discipline |
22 | | under the Act; |
23 | | (5) Aiding or assisting another person in violating any |
24 | | provision of this Act or rules; |
25 | | (6) Failing to respond to a written request for |
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1 | | information by the Department within 30 days; |
2 | | (7) Engaging in unprofessional, dishonorable, or |
3 | | unethical conduct of a character likely to deceive, |
4 | | defraud, or harm the public; |
5 | | (8) Adverse action by another United States |
6 | | jurisdiction or foreign nation; |
7 | | (9) A finding by the Department that the licensee, |
8 | | after having his or her license placed on suspended or |
9 | | probationary status, has violated the terms of the |
10 | | suspension or probation; |
11 | | (10) Conviction, entry of a plea of guilty, nolo |
12 | | contendere, or the equivalent in a State or federal court |
13 | | of a principal officer or agent-in-charge of a felony |
14 | | offense in accordance with Sections 2105-131, 2105-135, |
15 | | and 2105-205 of the Department of Professional Regulation |
16 | | Law of the Civil Administrative Code of Illinois; |
17 | | (11) Excessive use or addiction to alcohol, narcotics, |
18 | | stimulants, or any other chemical agent or drug; |
19 | | (12) A finding by the Department of a discrepancy in a |
20 | | Department audit of cannabis; |
21 | | (13) A finding by the Department of a discrepancy in a |
22 | | Department audit of capital or funds; |
23 | | (14) A finding by the Department of acceptance of |
24 | | cannabis from a source other than an Adult Use Cultivation |
25 | | Center, craft grower, infuser, or transporting |
26 | | organization licensed by the Department of Agriculture, or |
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1 | | a dispensing organization licensed by the Department; |
2 | | (15) An inability to operate using reasonable |
3 | | judgment, skill, or safety due to physical or mental |
4 | | illness or other impairment or disability, including, |
5 | | without limitation, deterioration through the aging |
6 | | process or loss of motor skills or mental incompetence; |
7 | | (16) Failing to report to the Department within the |
8 | | time frames established, or if not identified, 14 days, of |
9 | | any adverse action taken against the dispensing |
10 | | organization or an agent by a licensing jurisdiction in any |
11 | | state or any territory of the United States or any foreign |
12 | | jurisdiction, any governmental agency, any law enforcement |
13 | | agency or any court defined in this Section; |
14 | | (17) Any violation of the dispensing organization's |
15 | | policies and procedures submitted to the Department |
16 | | annually as a condition for licensure; |
17 | | (18) Failure to inform the Department of any change of |
18 | | address within 10 business days; |
19 | | (19) Disclosing customer names, personal information, |
20 | | or protected health information in violation of any State |
21 | | or federal law; |
22 | | (20) Operating a dispensary before obtaining a license |
23 | | from the Department; |
24 | | (21) Performing duties authorized by this Act prior to |
25 | | receiving a license to perform such duties; |
26 | | (22) Dispensing cannabis when prohibited by this Act or |
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1 | | rules; |
2 | | (23) Any fact or condition that, if it had existed at |
3 | | the time of the original application for the license, would |
4 | | have warranted the denial of the license; |
5 | | (24) Permitting a person without a valid agent |
6 | | identification card to perform licensed activities under |
7 | | this Act; |
8 | | (25) Failure to assign an agent-in-charge as required |
9 | | by this Article; |
10 | | (26) Failure to provide the training required by |
11 | | paragraph (3) of subsection (i) of Section 15-40 within the |
12 | | provided timeframe |
13 | | (27) Personnel insufficient in number or unqualified |
14 | | in training or experience to properly operate the |
15 | | dispensary business; |
16 | | (28) Any pattern of activity that causes a harmful |
17 | | impact on the community; and |
18 | | (29) Failing to prevent diversion, theft, or loss of |
19 | | cannabis. |
20 | | (b) All fines and fees imposed under this Section shall be |
21 | | paid within 60 days after the effective date of the order |
22 | | imposing the fine or as otherwise specified in the order. |
23 | | (c) A circuit court order establishing that an |
24 | | agent-in-charge or principal officer holding an agent |
25 | | identification card is subject to involuntary admission as that |
26 | | term is defined in Section 1-119 or 1-119.1 of the Mental |
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1 | | Health and Developmental Disabilities Code shall operate as a |
2 | | suspension of that card. |
3 | | Section 15-150. Temporary suspension. |
4 | | (a) The Secretary of Financial and Professional Regulation |
5 | | may temporarily suspend a dispensing organization license or an |
6 | | agent registration without a hearing if the Secretary finds |
7 | | that public safety or welfare requires emergency action. The |
8 | | Secretary shall cause the temporary suspension by issuing a |
9 | | suspension notice in connection with the institution of |
10 | | proceedings for a hearing. |
11 | | (b) If the Secretary temporarily suspends a license or |
12 | | agent registration without a hearing, the licensee or agent is |
13 | | entitled to a hearing within 45 days after the suspension |
14 | | notice has been issued. The hearing shall be limited to the |
15 | | issues cited in the suspension notice, unless all parties agree |
16 | | otherwise. |
17 | | (c) If the Department does not hold a hearing with 45 days |
18 | | after the date the suspension notice was issued, then the |
19 | | suspended license or registration shall be automatically |
20 | | reinstated and the suspension vacated. |
21 | | (d) The suspended licensee or agent may seek a continuance |
22 | | of the hearing date, during which time the suspension remains |
23 | | in effect and the license or registration shall not be |
24 | | automatically reinstated. |
25 | | (e) Subsequently discovered causes of action by the |
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1 | | Department after the issuance of the suspension notice may be |
2 | | filed as a separate notice of violation. The Department is not |
3 | | precluded from filing a separate action against the suspended |
4 | | licensee or agent. |
5 | | Section 15-155. Consent to administrative supervision |
6 | | order. In appropriate cases, the Department may resolve a |
7 | | complaint against a licensee or agent through the issuance of a |
8 | | consent order for administrative supervision. A license or |
9 | | agent subject to a consent order shall be considered by the |
10 | | Department to hold a license or registration in good standing. |
11 | | Section 15-160. Notice; hearing. |
12 | | (a) The Department shall, before disciplining an applicant |
13 | | or licensee, at least 30 days before the date set for the |
14 | | hearing: (i) notify the accused in writing of the charges made |
15 | | and the time and place for the hearing on the charges; (ii) |
16 | | direct him or her to file a written answer to the charges under |
17 | | oath within 20 days after service; and (iii) inform the |
18 | | applicant or licensee that failure to answer will result in a |
19 | | default being entered against the applicant or licensee. |
20 | | (b) At the time and place fixed in the notice, the hearing |
21 | | officer appointed by the Secretary shall proceed to hear the |
22 | | charges, and the parties or their counsel shall be accorded |
23 | | ample opportunity to present any pertinent statements, |
24 | | testimony, evidence, and arguments. The hearing officer may |
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1 | | continue the hearing from time to time. In case the person, |
2 | | after receiving the notice, fails to file an answer, his or her |
3 | | license may, in the discretion of the Secretary, having first |
4 | | received the recommendation of the hearing officer, be |
5 | | suspended, revoked, or placed on probationary status, or be |
6 | | subject to whatever disciplinary action the Secretary |
7 | | considers proper, including a fine, without hearing, if that |
8 | | act or acts charged constitute sufficient grounds for that |
9 | | action under this Act. |
10 | | (c) The written notice and any notice in the subsequent |
11 | | proceeding may be served by regular mail or email to the |
12 | | licensee's or applicant's address of record. |
13 | | Section 15-165. Subpoenas; oaths. The Department shall |
14 | | have the power to subpoena and bring before it any person and |
15 | | to take testimony either orally or by deposition, or both, with |
16 | | the same fees and mileage and in the same manner as prescribed |
17 | | by law in judicial proceedings in civil cases in courts in this |
18 | | State. The Secretary or the hearing officer shall each have the |
19 | | power to administer oaths to witnesses at any hearings that the |
20 | | Department is authorized to conduct. |
21 | | Section 15-170. Hearing; motion for rehearing. |
22 | | (a) The hearing officer shall hear evidence in support of |
23 | | the formal charges and evidence produced by the licensee. At |
24 | | the conclusion of the hearing, the hearing officer shall |
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1 | | present to the Secretary a written report of his or her |
2 | | findings of fact, conclusions of law, and recommendations. |
3 | | (b) At the conclusion of the hearing, a copy of the hearing |
4 | | officer's report shall be served upon the applicant or licensee |
5 | | by the Department, either personally or as provided in this Act |
6 | | for the service of a notice of hearing. Within 20 calendar days |
7 | | after service, the applicant or licensee may present to the |
8 | | Department a motion in writing for rehearing, which shall |
9 | | specify the particular grounds for rehearing. The Department |
10 | | may respond to the motion for rehearing within 20 calendar days |
11 | | after its service on the Department. If no motion for rehearing |
12 | | is filed, then, upon the expiration of the time specified for |
13 | | filing such motion or upon denial of a motion for rehearing, |
14 | | the Secretary may enter an order in accordance with the |
15 | | recommendation of the hearing officer. If the applicant or |
16 | | licensee orders from the reporting service and pays for a |
17 | | transcript of the record within the time for filing a motion |
18 | | for rehearing, the 20-day period within which a motion may be |
19 | | filed shall commence upon the delivery of the transcript to the |
20 | | applicant or licensee. |
21 | | (c) If the Secretary disagrees in any regard with the |
22 | | report of the hearing officer, the Secretary may issue an order |
23 | | contrary to the report. |
24 | | (d) Whenever the Secretary is not satisfied that |
25 | | substantial justice has been done, the Secretary may order a |
26 | | rehearing by the same or another hearing officer. |
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1 | | (e) At any point in any investigation or disciplinary |
2 | | proceeding under in this Article, both parties may agree to a |
3 | | negotiated consent order. The consent order shall be final upon |
4 | | signature of the Secretary. |
5 | | Section 15-175. Review under the Administrative Review |
6 | | Law. |
7 | | (a) All final administrative decisions of the Department |
8 | | hereunder shall be subject to judicial review under the |
9 | | provisions of the Administrative Review Law, and all amendment |
10 | | and modifications thereof. The term "administrative decision" |
11 | | is defined as in Section 3-101 of the Code of Civil Procedure. |
12 | | (b) Proceedings for judicial review shall be commenced in |
13 | | the circuit court of the county in which the party applying for |
14 | | review resides, but if the party is not a resident of Illinois, |
15 | | the venue shall be in Sangamon County. |
16 | | (c) The Department shall not be required to certify any |
17 | | record to the court, file any answer in court, or otherwise |
18 | | appear in any court in a judicial review proceeding, unless and |
19 | | until the Department has received from the plaintiff payment of |
20 | | the costs of furnishing and certifying the record, which costs |
21 | | shall be determined by the Department. Failure on the part of |
22 | | the plaintiff to file a receipt in court shall be grounds for |
23 | | dismissal of the action. |
24 | | ARTICLE 20. |
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1 | | ADULT USE CULTIVATION CENTERS |
2 | | Section 20-1. Definition. In this Article, "Department" |
3 | | means the Department of Agriculture. |
4 | | Section 20-5. Issuance of licenses. On or after July 1, |
5 | | 2021, the Department of Agriculture by rule may: |
6 | | (1) Modify or change the number of cultivation center |
7 | | licenses available, which shall at no time exceed 30 |
8 | | cultivation center licenses. In determining whether to |
9 | | exercise the authority granted by this subsection, the |
10 | | Department of Agriculture must consider the following |
11 | | factors: |
12 | | (A) The percentage of cannabis sales occurring in |
13 | | Illinois not in the regulated market using data from |
14 | | the Substance Abuse and Mental Health Services |
15 | | Administration, National Survey on Drug Use and |
16 | | Health, Illinois Behavioral Risk Factor Surveillance |
17 | | System, and tourism data from the Illinois Office of |
18 | | Tourism to ascertain total cannabis consumption in |
19 | | Illinois compared to the amount of sales in licensed |
20 | | dispensing organizations; |
21 | | (B) Whether there is an adequate supply of cannabis |
22 | | and cannabis-infused products to serve registered |
23 | | medical cannabis patients; |
24 | | (C) Whether there is an adequate supply of cannabis |
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1 | | and cannabis-infused products to serve purchasers; |
2 | | (D) Whether there is an oversupply of cannabis in |
3 | | Illinois leading to trafficking of cannabis to any |
4 | | other state; |
5 | | (E) Population increases or shifts; |
6 | | (F) Changes to federal law; |
7 | | (G) Perceived security risks of increasing the |
8 | | number or location of cultivation centers; |
9 | | (H) The past security records of cultivation |
10 | | centers; |
11 | | (I) The Department of Agriculture's capacity to |
12 | | appropriately regulate additional licensees; |
13 | | (J) The findings and recommendations from the |
14 | | disparity and availability study commissioned by the |
15 | | Illinois Cannabis Regulation Oversight Officer |
16 | | referenced in subsection (e) of Section 5-45 to reduce |
17 | | or eliminate any identified barriers to entry in the |
18 | | cannabis industry; and |
19 | | (K) Any other criteria the Department of |
20 | | Agriculture deems relevant. |
21 | | (2) Modify or change the licensing application process |
22 | | to reduce or eliminate the barriers identified in the |
23 | | disparity and availability study commission by the |
24 | | Illinois Cannabis Regulation Oversight Officer and shall |
25 | | make modifications to remedy evidence of discrimination. |
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1 | | Section 20-10. Early Approval of Adult Use Cultivation |
2 | | Center License. |
3 | | (a) Any medical cannabis cultivation center registered and |
4 | | in good standing under the Compassionate Use of Medical |
5 | | Cannabis Pilot Program Act as of the effective date of this Act |
6 | | may, within 60 days of the effective date of this Act but no |
7 | | later than 180 days from the effective date of this Act, apply |
8 | | to the Department of Agriculture for an Early Approval Adult |
9 | | Use Cultivation Center License to produce cannabis and |
10 | | cannabis-infused products at its existing facilities as of the |
11 | | effective date of this Act. |
12 | | (b) A medical cannabis cultivation center seeking issuance |
13 | | of an Early Approval Adult Use Cultivation Center License shall |
14 | | submit an application on forms provided by the Department of |
15 | | Agriculture. The application must meet or include the following |
16 | | qualifications: |
17 | | (1) Payment of a nonrefundable application fee of |
18 | | $100,000 to be deposited into the Cannabis Regulation Fund; |
19 | | (2) Proof of registration as a medical cannabis |
20 | | cultivation center that is in good standing; |
21 | | (3) Submission of the application by the same person or |
22 | | entity that holds the medical cannabis cultivation center |
23 | | registration; |
24 | | (4) Certification that the applicant will comply with |
25 | | the requirements of Section 20-30; |
26 | | (5) The legal name of the cultivation center; |
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1 | | (6) The physical address of the cultivation center; |
2 | | (7) The name, address, social security number, and date |
3 | | of birth of each principal officer and board member of the |
4 | | cultivation center; each of those individuals shall be at |
5 | | least 21 years of age; |
6 | | (8) A nonrefundable Cannabis Business Development Fee |
7 | | equal to 5% of the cultivation center's total sales between |
8 | | June 1, 2018 to June 1, 2019 or $750,000, whichever is |
9 | | less, but at not less than $250,000, to be deposited into |
10 | | the Cannabis Business Development Fund; and |
11 | | (9) A commitment to completing one of the following |
12 | | Social Equity Inclusion Plans provided for in this |
13 | | subsection (b) before the expiration of the Early Approval |
14 | | Adult Use Cultivation Center License: |
15 | | (A) A contribution of 5% of the cultivation |
16 | | center's total sales from June 1, 2018 to June 1, 2019, |
17 | | or $100,000, whichever is less, to one of the |
18 | | following: |
19 | | (i) the Cannabis Business Development Fund. |
20 | | This is in addition to the fee required by item (8) |
21 | | of this subsection (b); |
22 | | (ii) a cannabis industry training or education |
23 | | program at an Illinois community college as |
24 | | defined in the Public Community College Act; |
25 | | (iii) a program that provides job training |
26 | | services to persons recently incarcerated or that |
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1 | | operates in a Disproportionately Impacted Area. |
2 | | (B) Participate as a host in a cannabis business |
3 | | incubator program for at least one year approved by the |
4 | | Department of Commerce and Economic Opportunity, and |
5 | | in which an Early Approval Adult Use Cultivation Center |
6 | | License holder agrees to provide a loan of at least |
7 | | $100,000 and mentorship to incubate a licensee that |
8 | | qualifies as a Social Equity Applicant. As used in this |
9 | | Section, "incubate" means providing direct financial |
10 | | assistance and training necessary to engage in |
11 | | licensed cannabis industry activity similar to that of |
12 | | the host licensee. The Early Approval Adult Use |
13 | | Cultivation Center License holder or the same entity |
14 | | holding any other licenses issued pursuant to this Act |
15 | | shall not take an ownership stake of greater than 10% |
16 | | in any business receiving incubation services to |
17 | | comply with this subsection. If an Early Approval Adult |
18 | | Use Cultivation Center License holder fails to find a |
19 | | business to incubate to comply with this subsection |
20 | | before its Early Approval Adult Use Cultivation Center |
21 | | License expires, it may opt to meet the requirement of |
22 | | this subsection by completing another item from this |
23 | | subsection prior to the expiration of its Early |
24 | | Approval Adult Use Cultivation Center License to avoid |
25 | | a penalty. |
26 | | (c) An Early Approval Adult Use Cultivation Center License |
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1 | | is valid until March 31, 2021. A cultivation center that |
2 | | obtains an Early Approval Adult Use Cultivation Center License |
3 | | shall receive written or electronic notice 90 days before the |
4 | | expiration of the license that the license will expire, and |
5 | | inform the license holder that it may renew its Early Approval |
6 | | Adult Use Cultivation Center License. The Department of |
7 | | Agriculture shall grant a renewal of an Early Approval Adult |
8 | | Use Cultivation Center License within 60 days of submission of |
9 | | an application if: |
10 | | (1) the cultivation center submits an application and |
11 | | the required renewal fee of $100,000 for an Early Approval |
12 | | Adult Use Cultivation Center License; |
13 | | (2) the Department of Agriculture has not suspended the |
14 | | license of the cultivation center or suspended or revoked |
15 | | the license for violating this Act or rules adopted under |
16 | | this Act; and |
17 | | (3) the cultivation center has completed a Social |
18 | | Equity Inclusion Plan as required by item (9) of subsection |
19 | | (b) of this Section. |
20 | | (c-5) The Early Approval Adult Use Cultivation Center |
21 | | License renewed pursuant to subsection (c) of this Section |
22 | | shall expire March 31, 2022. The Early Approval Adult Use |
23 | | Cultivation Center Licensee shall receive written or |
24 | | electronic notice 90 days before the expiration of the license |
25 | | that the license will expire, and inform the license holder |
26 | | that it may apply for an Adult Use Cultivation Center License. |
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1 | | The Department of Agriculture shall grant an Adult Use |
2 | | Dispensing Organization License within 60 days of an |
3 | | application being deemed complete if the applicant meets all of |
4 | | the criteria in Section 20-21.
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5 | | (d) The license fee required by paragraph (1) of subsection |
6 | | (c) of this Section shall be in addition to any license fee |
7 | | required for the renewal of a registered medical cannabis |
8 | | cultivation center license that expires during the effective |
9 | | period of the Early Approval Adult Use Cultivation Center |
10 | | License. |
11 | | (e) Applicants must submit all required information, |
12 | | including the requirements in subsection (b) of this Section, |
13 | | to the Department of Agriculture. Failure by an applicant to |
14 | | submit all required information may result in the application |
15 | | being disqualified. |
16 | | (f) If the Department of Agriculture receives an |
17 | | application with missing information, the Department may issue |
18 | | a deficiency notice to the applicant. The applicant shall have |
19 | | 10 calendar days from the date of the deficiency notice to |
20 | | submit complete information. Applications that are still |
21 | | incomplete after this opportunity to cure may be disqualified. |
22 | | (g) If an applicant meets all the requirements of |
23 | | subsection (b) of this Section, the Department of Agriculture |
24 | | shall issue the Early Approval Adult Use Cultivation Center |
25 | | License within 14 days of receiving the application unless: |
26 | | (1) The licensee; principal officer, board member, or |
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1 | | person having a financial or voting interest of 5% or |
2 | | greater in the licensee; or agent is delinquent in filing |
3 | | any required tax returns or paying any amounts owed to the |
4 | | State of Illinois; |
5 | | (2) The Director of Agriculture determines there is |
6 | | reason, based on an inordinate number of documented |
7 | | compliance violations, the licensee is not entitled to an |
8 | | Early Approval Adult Use Cultivation Center License; or |
9 | | (3) The licensee fails to commit to the Social Equity |
10 | | Inclusion Plan. |
11 | | (h) A cultivation center may begin producing cannabis and |
12 | | cannabis-infused products once the Early Approval Adult Use |
13 | | Cultivation Center License is approved. A cultivation center |
14 | | that obtains an Early Approval Adult Use Cultivation Center |
15 | | License may begin selling cannabis and cannabis-infused |
16 | | products on December 1, 2019. |
17 | | (i) An Early Approval Adult Use Cultivation Center License |
18 | | holder must continue to produce and provide an adequate supply |
19 | | of cannabis and cannabis-infused products for purchase by |
20 | | qualifying patients and caregivers. For the purposes of this |
21 | | subsection, "adequate supply" means a monthly production level |
22 | | that is comparable in type and quantity to those medical |
23 | | cannabis products produced for patients and caregivers on an |
24 | | average monthly basis for the 6 months before the effective |
25 | | date of this Act. |
26 | | (j) If there is a shortage of cannabis or cannabis-infused |
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1 | | products, a license holder shall prioritize patients |
2 | | registered under the Compassionate Use of Medical Cannabis |
3 | | Pilot Program Act over adult use purchasers. |
4 | | (k) If an Early Approval Adult Use Cultivation Center |
5 | | licensee fails to submit an application for an Adult Use |
6 | | Cultivation Center License before the expiration of the Early |
7 | | Approval Adult Use Cultivation Center License pursuant to |
8 | | subsection (c-5) of this Section, the cultivation center shall |
9 | | cease adult use cultivation until it receives an Adult Use |
10 | | Cultivation Center License. |
11 | | (l) A cultivation center agent who holds a valid |
12 | | cultivation center agent identification card issued under the |
13 | | Compassionate Use of Medical Cannabis Pilot Program Act and is |
14 | | an officer, director, manager, or employee of the cultivation |
15 | | center licensed under this Section may engage in all activities |
16 | | authorized by this Article to be performed by a cultivation |
17 | | center agent. |
18 | | (m) If the Department of Agriculture suspends or revokes |
19 | | the Early Approval Adult Use Cultivation Center License of a |
20 | | cultivation center that also holds a medical cannabis |
21 | | cultivation center license issued under the Compassionate Use |
22 | | of Medical Cannabis Pilot Program Act, the Department of |
23 | | Agriculture may suspend or revoke the medical cannabis |
24 | | cultivation center license concurrently with the Early |
25 | | Approval Adult Use Cultivation Center License. |
26 | | (n) All fees or fines collected from an Early Approval |
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1 | | Adult Use Cultivation Center License holder as a result of a |
2 | | disciplinary action in the enforcement of this Act shall be |
3 | | deposited into the Cannabis Regulation Fund. |
4 | | Section 20-15. Conditional Adult Use Cultivation Center |
5 | | application. |
6 | | (a) If the Department of Agriculture makes available |
7 | | additional cultivation center licenses pursuant to Section |
8 | | 20-5, applicants for a Conditional Adult Use Cultivation Center |
9 | | License shall electronically submit the following in such form |
10 | | as the Department of Agriculture may direct: |
11 | | (1) the nonrefundable application fee set by rule by |
12 | | the Department of Agriculture, to be deposited into the |
13 | | Cannabis Regulation Fund; |
14 | | (2) the legal name of the cultivation center; |
15 | | (3) the proposed physical address of the cultivation |
16 | | center; |
17 | | (4) the name, address, social security number, and date |
18 | | of birth of each principal officer and board member of the |
19 | | cultivation center; each principal officer and board |
20 | | member shall be at least 21 years of age; |
21 | | (5) the details of any administrative or judicial |
22 | | proceeding in which any of the principal officers or board |
23 | | members of the cultivation center (i) pled guilty, were |
24 | | convicted, fined, or had a registration or license |
25 | | suspended or revoked, or (ii) managed or served on the |
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1 | | board of a business or non-profit organization that pled |
2 | | guilty, was convicted, fined, or had a registration or |
3 | | license suspended or revoked; |
4 | | (6) proposed operating bylaws that include procedures |
5 | | for the oversight of the cultivation center, including the |
6 | | development and implementation of a plant monitoring |
7 | | system, accurate recordkeeping, staffing plan, and |
8 | | security plan approved by the Department of State Police |
9 | | that are in accordance with the rules issued by the |
10 | | Department of Agriculture under this Act. A physical |
11 | | inventory shall be performed of all plants and cannabis on |
12 | | a weekly basis by the cultivation center; |
13 | | (7) verification from the Department of State Police |
14 | | that all background checks of the prospective principal |
15 | | officers, board members, and agents of the cannabis |
16 | | business establishment have been conducted; |
17 | | (8) a copy of the current local zoning ordinance or |
18 | | permit and verification that the proposed cultivation |
19 | | center is in compliance with the local zoning rules and |
20 | | distance limitations established by the local |
21 | | jurisdiction; |
22 | | (9) proposed employment practices, in which the |
23 | | applicant must demonstrate a plan of action to inform, |
24 | | hire, and educate minorities, women, veterans, and persons |
25 | | with disabilities, engage in fair labor practices, and |
26 | | provide worker protections; |
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1 | | (10) whether an applicant can demonstrate experience |
2 | | in or business practices that promote economic empowerment |
3 | | in Disproportionately Impacted Areas; |
4 | | (11) experience with the cultivation of agricultural |
5 | | or horticultural products, operating an agriculturally |
6 | | related business, or operating a horticultural business; |
7 | | (12) a description of the enclosed, locked facility |
8 | | where cannabis will be grown, harvested, manufactured, |
9 | | processed, packaged, or otherwise prepared for |
10 | | distribution to a dispensing organization; |
11 | | (13) a survey of the enclosed, locked facility, |
12 | | including the space used for cultivation; |
13 | | (14) cultivation, processing, inventory, and packaging |
14 | | plans; |
15 | | (15) a description of the applicant's experience with |
16 | | agricultural cultivation techniques and industry |
17 | | standards; |
18 | | (16) a list of any academic degrees, certifications, or |
19 | | relevant experience of all prospective principal officers, |
20 | | board members, and agents of the related business; |
21 | | (17) the identity of every person having a financial or |
22 | | voting interest of 5% or greater in the cultivation center |
23 | | operation with respect to which the license is sought, |
24 | | whether a trust, corporation, partnership, limited |
25 | | liability company, or sole proprietorship, including the |
26 | | name and address of each person; |
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1 | | (18) a plan describing how the cultivation center will |
2 | | address each of the following: |
3 | | (i) energy needs, including estimates of monthly |
4 | | electricity and gas usage, to what extent it will |
5 | | procure energy from a local utility or from on-site |
6 | | generation, and if it has or will adopt a sustainable |
7 | | energy use and energy conservation policy; |
8 | | (ii) water needs, including estimated water draw |
9 | | and if it has or will adopt a sustainable water use and |
10 | | water conservation policy; and |
11 | | (iii) waste management, including if it has or will |
12 | | adopt a waste reduction policy; |
13 | | (19) a diversity plan that includes a narrative of not |
14 | | more than 2,500 words that establishes a goal of diversity |
15 | | in ownership, management, employment, and contracting to |
16 | | ensure that diverse participants and groups are afforded |
17 | | equality of opportunity; |
18 | | (20) any other information required by rule; |
19 | | (21) a recycling plan: |
20 | | (A) Purchaser packaging, including cartridges, |
21 | | shall be accepted by the applicant and recycled. |
22 | | (B) Any recyclable waste generated by the cannabis |
23 | | cultivation facility shall be recycled per applicable |
24 | | State and local laws, ordinances, and rules. |
25 | | (C) Any cannabis waste, liquid waste, or hazardous |
26 | | waste shall be disposed of in accordance with 8 Ill. |
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1 | | Adm. Code 1000.460, except, to the greatest extent |
2 | | feasible, all cannabis plant waste will be rendered |
3 | | unusable by grinding and incorporating the cannabis |
4 | | plant waste with compostable mixed waste to be disposed |
5 | | of in accordance with 8 Ill Adm. Code 1000.460(g)(1); |
6 | | (22) commitment to comply with local waste provisions: |
7 | | a cultivation facility must remain in compliance with |
8 | | applicable State and federal environmental requirements, |
9 | | including, but not limited to: |
10 | | (A) storing, securing, and managing all |
11 | | recyclables and waste, including organic waste |
12 | | composed of or containing finished cannabis and |
13 | | cannabis products, in accordance with applicable State |
14 | | and local laws, ordinances, and rules; and |
15 | | (B) Disposing liquid waste containing cannabis or |
16 | | byproducts of cannabis processing in compliance with |
17 | | all applicable State and federal requirements, |
18 | | including, but not limited to, the cannabis |
19 | | cultivation facility's permits under Title X of the |
20 | | Environmental Protection Act; and |
21 | | (23) a commitment to a technology standard for resource |
22 | | efficiency of the cultivation center facility. |
23 | | (A) A cannabis cultivation facility commits to use |
24 | | resources efficiently, including energy and water. For |
25 | | the following, a cannabis cultivation facility commits |
26 | | to meet or exceed the technology standard identified in |
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1 | | items (i), (ii), (iii), and (iv), which may be modified |
2 | | by rule: |
3 | | (i) lighting systems, including light bulbs; |
4 | | (ii) HVAC system; |
5 | | (iii) water application system to the crop; |
6 | | and |
7 | | (iv) filtration system for removing |
8 | | contaminants from wastewater. |
9 | | (B) Lighting. The Lighting Power Densities (LPD) |
10 | | for cultivation space commits to not exceed an average |
11 | | of 36 watts per gross square foot of active and growing |
12 | | space canopy, or all installed lighting technology |
13 | | shall meet a photosynthetic photon efficacy (PPE) of no |
14 | | less than 2.2 micromoles per joule fixture and shall be |
15 | | featured on the DesignLights Consortium (DLC) |
16 | | Horticultural Specification Qualified Products List |
17 | | (QPL). In the event that DLC requirement for minimum |
18 | | efficacy exceeds 2.2 micromoles per joule fixture, |
19 | | that PPE shall become the new standard. |
20 | | (C) HVAC. |
21 | | (i) For cannabis grow operations with less |
22 | | than 6,000 square feet of canopy, the licensee |
23 | | commits that all HVAC units will be |
24 | | high-efficiency ductless split HVAC units, or |
25 | | other more energy efficient equipment. |
26 | | (ii) For cannabis grow operations with 6,000 |
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1 | | square feet of canopy or more, the licensee commits |
2 | | that all HVAC units will be variable refrigerant |
3 | | flow HVAC units, or other more energy efficient |
4 | | equipment. |
5 | | (D) Water application. |
6 | | (i) The cannabis cultivation facility commits |
7 | | to use automated watering systems, including, but |
8 | | not limited to, drip irrigation and flood tables, |
9 | | to irrigate cannabis crop. |
10 | | (ii) The cannabis cultivation facility commits |
11 | | to measure runoff from watering events and report |
12 | | this volume in its water usage plan, and that on |
13 | | average, watering events shall have no more than |
14 | | 20% of runoff of water. |
15 | | (E) Filtration. The cultivator commits that HVAC |
16 | | condensate, dehumidification water, excess runoff, and |
17 | | other wastewater produced by the cannabis cultivation |
18 | | facility shall be captured and filtered to the best of |
19 | | the facility's ability to achieve the quality needed to |
20 | | be reused in subsequent watering rounds. |
21 | | (F) Reporting energy use and efficiency as |
22 | | required by rule. |
23 | | (b) Applicants must submit all required information, |
24 | | including the information required in Section 20-10, to the |
25 | | Department of Agriculture. Failure by an applicant to submit |
26 | | all required information may result in the application being |
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1 | | disqualified. |
2 | | (c) If the Department of Agriculture receives an |
3 | | application with missing information, the Department of |
4 | | Agriculture may issue a deficiency notice to the applicant. The |
5 | | applicant shall have 10 calendar days from the date of the |
6 | | deficiency notice to resubmit the incomplete information. |
7 | | Applications that are still incomplete after this opportunity |
8 | | to cure will not be scored and will be disqualified. |
9 | | (e) A cultivation center that is awarded a Conditional |
10 | | Adult Use Cultivation Center License pursuant to the criteria |
11 | | in Section 20-20 shall not grow, purchase, possess, or sell |
12 | | cannabis or cannabis-infused products until the person has |
13 | | received an Adult Use Cultivation Center License issued by the |
14 | | Department of Agriculture pursuant to Section 20-21 of this |
15 | | Act. |
16 | | Section 20-20. Conditional Adult Use License scoring |
17 | | applications. |
18 | | (a) The Department of Agriculture shall by rule develop a |
19 | | system to score cultivation center applications to |
20 | | administratively rank applications based on the clarity, |
21 | | organization, and quality of the applicant's responses to |
22 | | required information. Applicants shall be awarded points based |
23 | | on the following categories: |
24 | | (1) Suitability of the proposed facility; |
25 | | (2) Suitability of employee training plan; |
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1 | | (3) Security and recordkeeping; |
2 | | (4) Cultivation plan; |
3 | | (5) Product safety and labeling plan; |
4 | | (6) Business plan; |
5 | | (7) The applicant's status as a Social Equity |
6 | | Applicant, which shall constitute no less than 20% of total |
7 | | available points; |
8 | | (8) Labor and employment practices, which shall |
9 | | constitute no less than 2% of total available points; |
10 | | (9) Environmental plan as described in paragraphs |
11 | | (18), (21), (22), and (23) of subsection (a) of Section |
12 | | 20-15; |
13 | | (10) The applicant is 51% or more owned and controlled |
14 | | by an individual or individuals who have been an Illinois |
15 | | resident for the past 5 years as proved by tax records; |
16 | | (11) The applicant is 51% or more controlled and owned |
17 | | by an individual or individuals who meet the qualifications |
18 | | of a veteran as defined by Section 45-57 of the Illinois |
19 | | Procurement Code; |
20 | | (12) a diversity plan that includes a narrative of not |
21 | | more than 2,500 words that establishes a goal of diversity |
22 | | in ownership, management, employment, and contracting to |
23 | | ensure that diverse participants and groups are afforded |
24 | | equality of opportunity; and |
25 | | (13) Any other criteria the Department of Agriculture |
26 | | may set by rule for points. |
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1 | | (b) The Department may also award bonus points for the |
2 | | applicant's plan to engage with the community. Bonus points |
3 | | will only be awarded if the Department receives applications |
4 | | that receive an equal score for a particular region. |
5 | | (c) Should the applicant be awarded a cultivation center |
6 | | license, the information and plans that an applicant provided |
7 | | in its application, including any plans submitted for the |
8 | | acquiring of bonus points, becomes a mandatory condition of the |
9 | | permit. Any variation from or failure to perform such plans may |
10 | | result in discipline, including the revocation or nonrenewal of |
11 | | a license. |
12 | | (d) Should the applicant be awarded a cultivation center |
13 | | license, it shall pay a fee of $100,000 prior to receiving the |
14 | | license, to be deposited into the Cannabis Regulation Fund. The |
15 | | Department of Agriculture may by rule adjust the fee in this |
16 | | Section after January 1, 2021. |
17 | | Section 20-21. Adult Use Cultivation Center License. |
18 | | (a) A person or entity is only eligible to receive an Adult |
19 | | Use Cultivation Center License if the person or entity has |
20 | | first been awarded a Conditional Adult Use Cultivation Center |
21 | | License pursuant to this Act or the person or entity has |
22 | | renewed its Early Approval Cultivation Center License pursuant |
23 | | to subsection (c) of Section 20-10. |
24 | | (b) The Department of Agriculture shall not issue an Adult |
25 | | Use Cultivation Center License until: |
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1 | | (1) the Department of Agriculture has inspected the |
2 | | cultivation center site and proposed operations and |
3 | | verified that they are in compliance with this Act and |
4 | | local zoning laws; |
5 | | (2) the Conditional Adult Use Cultivation Center |
6 | | License holder has paid a registration fee of $100,000 or a |
7 | | prorated amount accounting for the difference of time |
8 | | between when the Adult Use Cultivation Center License is |
9 | | issued and March 31 of the next even-numbered year; and |
10 | | (3) The Conditional Adult Use Cultivation Center |
11 | | License holder has met all the requirements in the Act and |
12 | | rules. |
13 | | Section 20-25. Denial of application. An application for a |
14 | | cultivation center license must be denied if any of the |
15 | | following conditions are met: |
16 | | (1) the applicant failed to submit the materials |
17 | | required by this Article; |
18 | | (2) the applicant would not be in compliance with local |
19 | | zoning rules; |
20 | | (3) one or more of the prospective principal officers |
21 | | or board members causes a violation of Section 20-30; |
22 | | (4) one or more of the principal officers or board |
23 | | members is under 21 years of age; |
24 | | (5) the person has submitted an application for a |
25 | | permit under this Act that contains false information; or |
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1 | | (6) the licensee, principal officer, board member, or |
2 | | person having a financial or voting interest of 5% or |
3 | | greater in the licensee, or the agent is delinquent in |
4 | | filing any required tax returns or paying any amounts owed |
5 | | to the State of Illinois. |
6 | | Section 20-30. Cultivation center requirements; |
7 | | prohibitions. |
8 | | (a) The operating documents of a cultivation center shall |
9 | | include procedures for the oversight of the cultivation center |
10 | | a cannabis plant monitoring system including a physical |
11 | | inventory recorded weekly, accurate recordkeeping, and a |
12 | | staffing plan. |
13 | | (b) A cultivation center shall implement a security plan |
14 | | reviewed by the Department of State Police that includes, but |
15 | | is not limited to: facility access controls, perimeter |
16 | | intrusion detection systems, personnel identification systems, |
17 | | 24-hour surveillance system to monitor the interior and |
18 | | exterior of the cultivation center facility and accessibility |
19 | | to authorized law enforcement, the Department of Public Health |
20 | | where processing takes place, and the Department of Agriculture |
21 | | in real time. |
22 | | (c) All cultivation of cannabis by a cultivation center |
23 | | must take place in an enclosed, locked facility at the physical |
24 | | address provided to the Department of Agriculture during the |
25 | | licensing process. The cultivation center location shall only |
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1 | | be accessed by the agents working for the cultivation center, |
2 | | the Department of Agriculture staff performing inspections, |
3 | | the Department of Public Health staff performing inspections, |
4 | | local and State law enforcement or other emergency personnel, |
5 | | contractors working on jobs unrelated to cannabis, such as |
6 | | installing or maintaining security devices or performing |
7 | | electrical wiring, transporting organization agents as |
8 | | provided in this Act, individuals in a mentoring or educational |
9 | | program approved by the State, or other individuals as provided |
10 | | by rule. |
11 | | (d) A cultivation center may not sell or distribute any |
12 | | cannabis or cannabis-infused products to any person other than |
13 | | a dispensing organization, craft grower, infusing |
14 | | organization, transporter, or as otherwise authorized by rule. |
15 | | (e) A cultivation center may not either directly or |
16 | | indirectly discriminate in price between different dispensing |
17 | | organizations, craft growers, or infuser organizations that |
18 | | are purchasing a like grade, strain, brand, and quality of |
19 | | cannabis or cannabis-infused product. Nothing in this |
20 | | subsection (e) prevents a cultivation centers from pricing |
21 | | cannabis differently based on differences in the cost of |
22 | | manufacturing or processing, the quantities sold, such as |
23 | | volume discounts, or the way the products are delivered. |
24 | | (f) All cannabis harvested by a cultivation center and |
25 | | intended for distribution to a dispensing organization must be |
26 | | entered into a data collection system, packaged and labeled |
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1 | | under Section 55-21, and placed into a cannabis container for |
2 | | transport. All cannabis harvested by a cultivation center and |
3 | | intended for distribution to a craft grower or infuser |
4 | | organization must be packaged in a labeled cannabis container |
5 | | and entered into a data collection system before transport. |
6 | | (g) Cultivation centers are subject to random inspections |
7 | | by the Department of Agriculture, the Department of Public |
8 | | Health, local safety or health inspectors, and the Department |
9 | | of State Police. |
10 | | (h) A cultivation center agent shall notify local law |
11 | | enforcement, the Department of State Police, and the Department |
12 | | of Agriculture within 24 hours of the discovery of any loss or |
13 | | theft. Notification shall be made by phone or in person, or by |
14 | | written or electronic communication. |
15 | | (i) A cultivation center shall comply with all State and |
16 | | any applicable federal rules and regulations regarding the use |
17 | | of pesticides on cannabis plants. |
18 | | (j) No person or entity shall hold any legal, equitable, |
19 | | ownership, or beneficial interest, directly or indirectly, of |
20 | | more than 3 cultivation centers licensed under this Article. |
21 | | Further, no person or entity that is employed by, an agent of, |
22 | | has a contract to receive payment in any form from a |
23 | | cultivation center, is a principal officer of a cultivation |
24 | | center, or entity controlled by or affiliated with a principal |
25 | | officer of a cultivation shall hold any legal, equitable, |
26 | | ownership, or beneficial interest, directly or indirectly, in a |
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1 | | cultivation that would result in the person or entity owning or |
2 | | controlling in combination with any cultivation center, |
3 | | principal officer of a cultivation center, or entity controlled |
4 | | or affiliated with a principal officer of a cultivation center |
5 | | by which he, she, or it is employed, is an agent of, or |
6 | | participates in the management of, more than 3 cultivation |
7 | | center licenses. |
8 | | (k) A cultivation center may not contain more than 210,000 |
9 | | square feet of canopy space for plants in the flowering stage |
10 | | for cultivation of adult use cannabis as provided in this Act. |
11 | | (l) A cultivation center may process cannabis, cannabis |
12 | | concentrates, and cannabis-infused products. |
13 | | (m) Beginning July 1, 2020, a cultivation center shall not |
14 | | transport cannabis to a craft grower, dispensing organization, |
15 | | infuser organization, or laboratory licensed under this Act, |
16 | | unless it has obtained a transporting organization license. |
17 | | (n) It is unlawful for any person having a cultivation |
18 | | center license or any officer, associate, member, |
19 | | representative, or agent of such licensee to offer or deliver |
20 | | money, or anything else of value, directly or indirectly to any |
21 | | person having an Early Approval Adult Use Dispensing |
22 | | Organization License, a Conditional Adult Use Dispensing |
23 | | Organization License, an Adult Use Dispensing Organization |
24 | | License, or a medical cannabis dispensing organization license |
25 | | issued under the Compassionate Use of Medical Cannabis Pilot |
26 | | Program Act, or to any person connected with or in any way |
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1 | | representing, or to any member of the family of, such person |
2 | | holding an Early Approval Adult Use Dispensing Organization |
3 | | License, a Conditional Adult Use Dispensing Organization |
4 | | License, an Adult Use Dispensing Organization License, or a |
5 | | medical cannabis dispensing organization license issued under |
6 | | the Compassionate Use of Medical Cannabis Pilot Program Act, or |
7 | | to any stockholders in any corporation engaged in the retail |
8 | | sale of cannabis, or to any officer, manager, agent, or |
9 | | representative of the Early Approval Adult Use Dispensing |
10 | | Organization License, a Conditional Adult Use Dispensing |
11 | | Organization License, an Adult Use Dispensing Organization |
12 | | License, or a medical cannabis dispensing organization license |
13 | | issued under the Compassionate Use of Medical Cannabis Pilot |
14 | | Program Act to obtain preferential placement within the |
15 | | dispensing organization, including, without limitation, on |
16 | | shelves and in display cases where purchasers can view |
17 | | products, or on the dispensing organization's website. |
18 | | (o) A cultivation center must comply with any other |
19 | | requirements or prohibitions set by administrative rule of the |
20 | | Department of Agriculture. |
21 | | Section 20-35. Cultivation center agent identification |
22 | | card. |
23 | | (a) The Department of Agriculture shall: |
24 | | (1) establish by rule the information required in an |
25 | | initial application or renewal application for an agent |
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1 | | identification card submitted under this Act and the |
2 | | nonrefundable fee to accompany the initial application or |
3 | | renewal application; |
4 | | (2) verify the information contained in an initial |
5 | | application or renewal application for an agent |
6 | | identification card submitted under this Act, and approve |
7 | | or deny an application within 30 days of receiving a |
8 | | completed initial application or renewal application and |
9 | | all supporting documentation required by rule; |
10 | | (3) issue an agent identification card to a qualifying |
11 | | agent within 15 business days of approving the initial |
12 | | application or renewal application; |
13 | | (4) enter the license number of the cultivation center |
14 | | where the agent works; and |
15 | | (5) allow for an electronic initial application and |
16 | | renewal application process, and provide a confirmation by |
17 | | electronic or other methods that an application has been |
18 | | submitted. The Department of Agriculture may by rule |
19 | | require prospective agents to file their applications by |
20 | | electronic means and provide notices to the agents by |
21 | | electronic means. |
22 | | (b) An agent must keep his or her identification card |
23 | | visible at all times when on the property of the cultivation |
24 | | center at which the agent is employed. |
25 | | (c) The agent identification cards shall contain the |
26 | | following: |
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1 | | (1) the name of the cardholder; |
2 | | (2) the date of issuance and expiration date of the |
3 | | identification card; |
4 | | (3) a random 10-digit alphanumeric identification |
5 | | number containing at least 4 numbers and at least 4 letters |
6 | | that is unique to the holder; |
7 | | (4) a photograph of the cardholder; and |
8 | | (5) the legal name of the cultivation center employing |
9 | | the agent. |
10 | | (d) An agent identification card shall be immediately |
11 | | returned to the cultivation center of the agent upon |
12 | | termination of his or her employment. |
13 | | (e) Any agent identification card lost by a cultivation |
14 | | center agent shall be reported to the Department of State |
15 | | Police and the Department of Agriculture immediately upon |
16 | | discovery of the loss. |
17 | | (f) The Department of Agriculture shall not issue an agent |
18 | | identification card if the applicant is delinquent in filing |
19 | | any required tax returns or paying any amounts owed to the |
20 | | State of Illinois. |
21 | | Section 20-40. Cultivation center background checks. |
22 | | (a) Through the Department of State Police, the Department |
23 | | of Agriculture shall conduct a background check of the |
24 | | prospective principal officers, board members, and agents of a |
25 | | cultivation center applying for a license or identification |
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1 | | card under this Act. The Department of State Police shall |
2 | | charge a fee set by rule for conducting the criminal history |
3 | | record check, which shall be deposited into the State Police |
4 | | Services Fund and shall not exceed the actual cost of the |
5 | | record check. In order to carry out this provision, each |
6 | | cultivation center prospective principal officer, board |
7 | | member, or agent shall submit a full set of fingerprints to the |
8 | | Department of State Police for the purpose of obtaining a State |
9 | | and federal criminal records check. These fingerprints shall be |
10 | | checked against the fingerprint records now and hereafter, to |
11 | | the extent allowed by law, filed in the Department of State |
12 | | Police and Federal Bureau of Investigation criminal history |
13 | | records databases. The Department of State Police shall |
14 | | furnish, following positive identification, all conviction |
15 | | information to the Department of Agriculture. |
16 | | (b) When applying for the initial license or identification |
17 | | card, the background checks for all prospective principal |
18 | | officers, board members, and agents shall be completed before |
19 | | submitting the application to the licensing or issuing agency. |
20 | | Section 20-45. Renewal of cultivation center licenses and |
21 | | agent identification cards. |
22 | | (a) Licenses and identification cards issued under this Act |
23 | | shall be renewed annually. A cultivation center shall receive |
24 | | written or electronic notice 90 days before the expiration of |
25 | | its current license that the license will expire. The |
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1 | | Department of Agriculture shall grant a renewal within 45 days |
2 | | of submission of a renewal application if: |
3 | | (1) the cultivation center submits a renewal |
4 | | application and the required nonrefundable renewal fee of |
5 | | $100,000, or another amount as the Department of |
6 | | Agriculture may set by rule after January 1, 2021, to be |
7 | | deposited into the Cannabis Regulation Fund. |
8 | | (2) the Department of Agriculture has not suspended the |
9 | | license of the cultivation center or suspended or revoked |
10 | | the license for violating this Act or rules adopted under |
11 | | this Act; |
12 | | (3) the cultivation center has continued to operate in |
13 | | accordance with all plans submitted as part of its |
14 | | application and approved by the Department of Agriculture |
15 | | or any amendments thereto that have been approved by the |
16 | | Department of Agriculture; |
17 | | (4) the cultivation center has submitted an agent, |
18 | | employee, contracting, and subcontracting diversity report |
19 | | as required by the Department; and |
20 | | (5) the cultivation center has submitted an |
21 | | environmental impact report. |
22 | | (b) If a cultivation center fails to renew its license |
23 | | before expiration, it shall cease operations until its license |
24 | | is renewed. |
25 | | (c) If a cultivation center agent fails to renew his or her |
26 | | identification card before its expiration, he or she shall |
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1 | | cease to work as an agent of the cultivation center until his |
2 | | or her identification card is renewed. |
3 | | (d) Any cultivation center that continues to operate, or |
4 | | any cultivation center agent who continues to work as an agent, |
5 | | after the applicable license or identification card has expired |
6 | | without renewal is subject to the penalties provided under |
7 | | Section 45-5. |
8 | | Section 20-50. Cultivator taxes; returns. |
9 | | (a) A tax is imposed upon the privilege of cultivating and |
10 | | processing adult use cannabis at the rate of 7% of the gross |
11 | | receipts from the sale of cannabis by a cultivator to a |
12 | | dispensing organization. The sale of any adult use product that |
13 | | contains any amount of cannabis or any derivative thereof is |
14 | | subject to the tax under this Section on the full selling price |
15 | | of the product. The proceeds from this tax shall be deposited |
16 | | into the Cannabis Regulation Fund. This tax shall be paid by |
17 | | the cultivator who makes the first sale and is not the |
18 | | responsibility of a dispensing organization, qualifying |
19 | | patient, or purchaser. |
20 | | (b)In the administration of and compliance with this |
21 | | Section, the Department of Revenue and persons who are subject |
22 | | to this Section: (i) have the same rights, remedies, |
23 | | privileges, immunities, powers, and duties, (ii) are subject to |
24 | | the same conditions, restrictions, limitations, penalties, and |
25 | | definitions of terms, and (iii) shall employ the same modes of |
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1 | | procedure as are set forth in the Cannabis Cultivation |
2 | | Privilege Tax Law and the Uniform Penalty and Interest Act as |
3 | | if those provisions were set forth in this Section. |
4 | | (c)The tax imposed under this Act shall be in addition to |
5 | | all other occupation or privilege taxes imposed by the State of |
6 | | Illinois or by any municipal corporation or political |
7 | | subdivision thereof.
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8 | | ARTICLE 25. |
9 | | COMMUNITY COLLEGE CANNABIS VOCATIONAL PILOT PROGRAM |
10 | | Section 25-1. Definitions In this Article: |
11 | | "Board" means the Illinois Community College Board. |
12 | | "Career in Cannabis Certificate" or "Certificate" means |
13 | | the certification awarded to a community college student who |
14 | | completes a prescribed course of study in cannabis and cannabis |
15 | | business industry related classes and curriculum at a community |
16 | | college awarded a Community College Cannabis Vocational Pilot |
17 | | Program license. |
18 | | "Community college" means a public community college |
19 | | organized under the Public Community College Act. |
20 | | "Department" means the Department of Agriculture. |
21 | | "Licensee" means a community college awarded a Community |
22 | | College Cannabis Vocational Pilot Program license under this |
23 | | Article. |
24 | | "Program" means the Community College Cannabis Vocational |
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1 | | Pilot Program. |
2 | | "Program license" means a Community College Cannabis |
3 | | Vocational Pilot Program license issued to a community college |
4 | | under this Article. |
5 | | Section 25-5. Administration. |
6 | | (a) The Department shall establish and administer the |
7 | | Program in coordination with the Illinois Community College |
8 | | Board. The Department may issue up to 8 Program licenses by |
9 | | September 1, 2020. |
10 | | (b) Beginning with the 2021-2022 academic year, and subject |
11 | | to subsection (h) of Section 2-12 of the Public Community |
12 | | College Act, community colleges awarded Program licenses may |
13 | | offer qualifying students a Career in Cannabis Certificate, |
14 | | which includes, but is not limited to, courses that allow |
15 | | participating students to work with, study, and grow live |
16 | | cannabis plants so as to prepare students for a career in the |
17 | | legal cannabis industry, and to instruct participating |
18 | | students on the best business practices, professional |
19 | | responsibility, and legal compliance of the cannabis business |
20 | | industry. |
21 | | (c) The Board may issue rules pertaining to the provisions |
22 | | in this Act. |
23 | | (d) Notwithstanding any other provision of this Act, |
24 | | students shall be at least 18 years old in order to enroll in a |
25 | | licensee's Career in Cannabis Certificate's prescribed course |
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1 | | of study. |
2 | | Section 25-10. Issuance of Community College Cannabis |
3 | | Vocational Pilot Program licenses. |
4 | | (a) The Department shall issue rules regulating the |
5 | | selection criteria for applicants by January 1, 2020. The |
6 | | Department shall make the application for a Program license |
7 | | available no later than February 1, 2020, and shall require |
8 | | that applicants submit the completed application no later than |
9 | | July 1, 2020. |
10 | | (b) The Department shall by rule develop a system to score |
11 | | Program licenses to administratively rank applications based |
12 | | on the clarity, organization, and quality of the applicant's |
13 | | responses to required information. Applicants shall be awarded |
14 | | points that are based on or that meet the following categories: |
15 | | (1) Geographic diversity of the applicants; |
16 | | (2) Experience and credentials of the applicant's |
17 | | faculty; |
18 | | (3) At least 5 Program license awardees must have a |
19 | | student population that is more than 50% low-income in each |
20 | | of the past 4 years; |
21 | | (4) Security plan, including a requirement that all |
22 | | cannabis plants be in an enclosed, locked facility; |
23 | | (5) Curriculum plan, including processing and testing |
24 | | curriculum for the Career in Cannabis Certificate; |
25 | | (6) Career advising and placement plan for |
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1 | | participating students; and |
2 | | (7) Any other criteria the Department may set by rule. |
3 | | Section 25-15. Community College Cannabis Vocational Pilot |
4 | | Program requirements and prohibitions. |
5 | | (a) Licensees shall not have more than 50 flowering |
6 | | cannabis plants at any one time. |
7 | | (b) The agent-in-charge shall keep a vault log of the |
8 | | licensee's enclosed, locked facility or facilities, including |
9 | | but not limited to, the person entering the site location, the |
10 | | time of entrance, the time of exit, and any other information |
11 | | the Department may set by rule. |
12 | | (c) Cannabis shall not be removed from the licensee's |
13 | | facility, except for the limited purpose of shipping a sample |
14 | | to a laboratory registered under this Act. |
15 | | (d) The licensee shall limit keys, access cards, or an |
16 | | access code to the licensee's enclosed, locked facility, or |
17 | | facilities, to cannabis curriculum faculty and college |
18 | | security personnel with a bona fide need to access the facility |
19 | | for emergency purposes. |
20 | | (e) A transporting organization may transport cannabis |
21 | | produced pursuant to this Article to a laboratory registered |
22 | | under this Act. All other cannabis produced by the licensee |
23 | | that was not shipped to a registered laboratory shall be |
24 | | destroyed within 5 weeks of being harvested. |
25 | | (f) Licensees shall subscribe to the Department of |
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1 | | Agriculture's cannabis plant monitoring system. |
2 | | (g) Licensees shall maintain a weekly inventory system. |
3 | | (h) No student participating in the cannabis curriculum |
4 | | necessary to obtain a Certificate may be in the licensee's |
5 | | facility unless a faculty agent-in-charge is also physically |
6 | | present in the facility. |
7 | | (i) Licensees shall conduct post-certificate follow up |
8 | | surveys and record participating students' job placements |
9 | | within the cannabis business industry within a year of the |
10 | | student's completion. |
11 | | (j) The Illinois Community College Board shall report |
12 | | annually to the Department on the race, ethnicity, and gender |
13 | | of all students participating in the cannabis curriculum |
14 | | necessary to obtain a Certificate, and of those students who |
15 | | obtain a Certificate. |
16 | | Section 25-20. Faculty. |
17 | | (a) All faculty members shall be required to maintain |
18 | | registration as an agent-in-charge and have a valid agent |
19 | | identification card prior to teaching or participating in the |
20 | | licensee's cannabis curriculum that involves instruction |
21 | | offered in the enclosed, locked facility or facilities. |
22 | | (b) All faculty receiving an agent-in-charge or agent |
23 | | identification card must successfully pass a background check |
24 | | required by Section 5-20 prior to participating in a licensee's |
25 | | cannabis curriculum that involves instruction offered in the |
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1 | | enclosed, locked facility. |
2 | | Section 25-25. Enforcement. |
3 | | (a) The Department has the authority to suspend or revoke |
4 | | any faculty agent-in-charge or agent identification card for |
5 | | any violation found under this Article. |
6 | | (b) The Department has the authority to suspend or revoke |
7 | | any Program license for any violation found under this Article. |
8 | | (c) The Board shall revoke the authority to offer the |
9 | | Certificate of any community college that has had its license |
10 | | revoked by the Department. |
11 | | Section 25-30. Inspection rights. |
12 | | (a) A licensee's enclosed, locked facilities are subject to |
13 | | random inspections by the Department and the Department of |
14 | | State Police. |
15 | | (b) Nothing in this Section shall be construed to give the |
16 | | Department or the Department of State Police a right of |
17 | | inspection or access to any location on the licensee's premises |
18 | | beyond the facilities licensed under this Article. |
19 | | Section 25-35. Community College Cannabis Vocational |
20 | | Training Pilot Program faculty participant agent |
21 | | identification card. |
22 | | (a) The Department shall: |
23 | | (1) establish by rule the information required in an |
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1 | | initial application or renewal application for an agent |
2 | | identification card submitted under this Article and the |
3 | | nonrefundable fee to accompany the initial application or |
4 | | renewal application; |
5 | | (2) verify the information contained in an initial |
6 | | application or renewal application for an agent |
7 | | identification card submitted under this Article, and |
8 | | approve or deny an application within 30 days of receiving |
9 | | a completed initial application or renewal application and |
10 | | all supporting documentation required by rule; |
11 | | (3) issue an agent identification card to a qualifying |
12 | | agent within 15 business days of approving the initial |
13 | | application or renewal application; |
14 | | (4) enter the license number of the community college |
15 | | where the agent works; and |
16 | | (5) allow for an electronic initial application and |
17 | | renewal application process, and provide a confirmation by |
18 | | electronic or other methods that an application has been |
19 | | submitted. Each Department may by rule require prospective |
20 | | agents to file their applications by electronic means and |
21 | | to provide notices to the agents by electronic means. |
22 | | (b) An agent must keep his or her identification card |
23 | | visible at all times when in the enclosed, locked facility, or |
24 | | facilities for which he or she is an agent. |
25 | | (c) The agent identification cards shall contain the |
26 | | following: |
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1 | | (1) the name of the cardholder; |
2 | | (2) the date of issuance and expiration date of the |
3 | | identification card; |
4 | | (3) a random 10-digit alphanumeric identification |
5 | | number containing at least 4 numbers and at least 4 letters |
6 | | that is unique to the holder; |
7 | | (4) a photograph of the cardholder; and |
8 | | (5) the legal name of the community college employing |
9 | | the agent. |
10 | | (d) An agent identification card shall be immediately |
11 | | returned to the community college of the agent upon termination |
12 | | of his or her employment. |
13 | | (e) Any agent identification card lost shall be reported to |
14 | | the Department of State Police and the Department of |
15 | | Agriculture immediately upon discovery of the loss. |
16 | | Section 25-40. Study. By December 31, 2025, the Illinois |
17 | | Cannabis Regulation Oversight Officer, in coordination with |
18 | | the Board, must issue a report to the Governor and the General |
19 | | Assembly which includes, but is not limited to, the following: |
20 | | (1) Number of security incidents or infractions at each |
21 | | licensee and any action taken or not taken; |
22 | | (2) Statistics, based on race, ethnicity, gender, and |
23 | | participating community college of: |
24 | | (A) students enrolled in career in cannabis |
25 | | classes; |
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1 | | (B) successful completion rates by community |
2 | | college students for the Certificate; |
3 | | (C) postgraduate job placement of students who |
4 | | obtained a Certificate, including both cannabis |
5 | | business establishment jobs and non-cannabis business |
6 | | establishment jobs; and |
7 | | (3) Any other relevant information. |
8 | | Section 25-45. Repeal. This Article is repealed on July 1, |
9 | | 2026. |
10 | | ARTICLE 30. |
11 | | CRAFT GROWERS |
12 | | Section 30-3. Definition. In this Article, "Department" |
13 | | means the Department of Agriculture. |
14 | | Section 30-5. Issuance of licenses. |
15 | | (a) The Department of Agriculture shall issue up to 40 |
16 | | craft grower licenses by July 1, 2020. Any person or entity |
17 | | awarded a license pursuant to this subsection shall only hold |
18 | | one craft grower license and may not sell that license until |
19 | | after December 21, 2021. |
20 | | (b) By December 21, 2021, the Department of Agriculture |
21 | | shall issue up to 60 additional craft grower licenses. Any |
22 | | person or entity awarded a license pursuant to this subsection |
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1 | | shall not hold more than 2 craft grower licenses. The person or |
2 | | entity awarded a license pursuant to this subsection or |
3 | | subsection (a) of this Section may sell its craft grower |
4 | | license subject to the restrictions of this Act or as |
5 | | determined by administrative rule. Prior to issuing such |
6 | | licenses, the Department may adopt rules through emergency |
7 | | rulemaking in accordance with subsection (gg) of Section 5-45 |
8 | | of the Illinois Administrative Procedure Act, to modify or |
9 | | raise the number of craft grower licenses assigned to each |
10 | | region and modify or change the licensing application process |
11 | | to reduce or eliminate barriers. The General Assembly finds |
12 | | that the adoption of rules to regulate cannabis use is deemed |
13 | | an emergency and necessary for the public interest, safety, and |
14 | | welfare. In determining whether to exercise the authority |
15 | | granted by this subsection, the Department of Agriculture must |
16 | | consider the following factors: |
17 | | (1) The percentage of cannabis sales occurring in |
18 | | Illinois not in the regulated market using data from the |
19 | | Substance Abuse and Mental Health Services Administration, |
20 | | National Survey on Drug Use and Health, Illinois Behavioral |
21 | | Risk Factor Surveillance System, and tourism data from the |
22 | | Illinois Office of Tourism to ascertain total cannabis |
23 | | consumption in Illinois compared to the amount of sales in |
24 | | licensed dispensing organizations; |
25 | | (2) Whether there is an adequate supply of cannabis and |
26 | | cannabis-infused products to serve registered medical |
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1 | | cannabis patients; |
2 | | (3) Whether there is an adequate supply of cannabis and |
3 | | cannabis-infused products to serve purchasers; |
4 | | (4) Whether there is an oversupply of cannabis in |
5 | | Illinois leading to trafficking of cannabis to states where |
6 | | the sale of cannabis is not permitted by law; |
7 | | (5) Population increases or shifts; |
8 | | (6) The density of craft growers in any area of the |
9 | | State; |
10 | | (7) Perceived security risks of increasing the number |
11 | | or location of craft growers; |
12 | | (8) The past safety record of craft growers; |
13 | | (9) The Department of Agriculture's capacity to |
14 | | appropriately regulate additional licensees; |
15 | | (10) The findings and recommendations from the |
16 | | disparity and availability study commissioned by the |
17 | | Illinois Cannabis Regulation Oversight Officer to reduce |
18 | | or eliminate any identified barriers to entry in the |
19 | | cannabis industry; and |
20 | | (11) Any other criteria the Department of Agriculture |
21 | | deems relevant. |
22 | | (c) After January 1, 2022, the Department of Agriculture |
23 | | may by rule modify or raise the number of craft grower licenses |
24 | | assigned to each region, and modify or change the licensing |
25 | | application process to reduce or eliminate barriers based on |
26 | | the criteria in subsection (b). At no time may the number of |
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1 | | craft grower licenses exceed 150. Any person or entity awarded |
2 | | a license pursuant to this subsection shall not hold more than |
3 | | 3 craft grower licenses. A person or entity awarded a license |
4 | | pursuant to this subsection or subsection (a) or subsection (b) |
5 | | of this Section may sell its craft grower license or licenses |
6 | | subject to the restrictions of this Act or as determined by |
7 | | administrative rule. |
8 | | Section 30-10. Application. |
9 | | (a) When applying for a license, the applicant shall |
10 | | electronically submit the following in such form as the |
11 | | Department of Agriculture may direct: |
12 | | (1) the nonrefundable application fee of $5,000 to be |
13 | | deposited into the Cannabis Regulation Fund, or another |
14 | | amount as the Department of Agriculture may set by rule |
15 | | after January 1, 2021; |
16 | | (2) the legal name of the craft grower; |
17 | | (3) the proposed physical address of the craft grower; |
18 | | (4) the name, address, social security number, and date |
19 | | of birth of each principal officer and board member of the |
20 | | craft grower; each principal officer and board member shall |
21 | | be at least 21 years of age; |
22 | | (5) the details of any administrative or judicial |
23 | | proceeding in which any of the principal officers or board |
24 | | members of the craft grower (i) pled guilty, were |
25 | | convicted, fined, or had a registration or license |
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1 | | suspended or revoked or (ii) managed or served on the board |
2 | | of a business or non-profit organization that pled guilty, |
3 | | was convicted, fined, or had a registration or license |
4 | | suspended or revoked; |
5 | | (6) proposed operating bylaws that include procedures |
6 | | for the oversight of the craft grower, including the |
7 | | development and implementation of a plant monitoring |
8 | | system, accurate recordkeeping, staffing plan, and |
9 | | security plan approved by the Department of State Police |
10 | | that are in accordance with the rules issued by the |
11 | | Department of Agriculture under this Act; a physical |
12 | | inventory shall be performed of all plants and on a weekly |
13 | | basis by the craft grower; |
14 | | (7) verification from the Department of State Police |
15 | | that all background checks of the prospective principal |
16 | | officers, board members, and agents of the cannabis |
17 | | business establishment have been conducted; |
18 | | (8) a copy of the current local zoning ordinance or |
19 | | permit and verification that the proposed craft grower is |
20 | | in compliance with the local zoning rules and distance |
21 | | limitations established by the local jurisdiction; |
22 | | (9) proposed employment practices, in which the |
23 | | applicant must demonstrate a plan of action to inform, |
24 | | hire, and educate minorities, women, veterans, and persons |
25 | | with disabilities, engage in fair labor practices, and |
26 | | provide worker protections; |
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1 | | (10) whether an applicant can demonstrate experience |
2 | | in or business practices that promote economic empowerment |
3 | | in Disproportionately Impacted Areas; |
4 | | (11) experience with the cultivation of agricultural |
5 | | or horticultural products, operating an agriculturally |
6 | | related business, or operating a horticultural business; |
7 | | (12) a description of the enclosed, locked facility |
8 | | where cannabis will be grown, harvested, manufactured, |
9 | | packaged, or otherwise prepared for distribution to a |
10 | | dispensing organization or other cannabis business |
11 | | establishment; |
12 | | (13) a survey of the enclosed, locked facility, |
13 | | including the space used for cultivation; |
14 | | (14) cultivation, processing, inventory, and packaging |
15 | | plans; |
16 | | (15) a description of the applicant's experience with |
17 | | agricultural cultivation techniques and industry |
18 | | standards; |
19 | | (16) a list of any academic degrees, certifications, or |
20 | | relevant experience of all prospective principal officers, |
21 | | board members, and agents of the related business; |
22 | | (17) the identity of every person having a financial or |
23 | | voting interest of 5% or greater in the craft grower |
24 | | operation, whether a trust, corporation, partnership, |
25 | | limited liability company, or sole proprietorship, |
26 | | including the name and address of each person; |
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1 | | (18) a plan describing how the craft grower will |
2 | | address each of the following: |
3 | | (i) energy needs, including estimates of monthly |
4 | | electricity and gas usage, to what extent it will |
5 | | procure energy from a local utility or from on-site |
6 | | generation, and if it has or will adopt a sustainable |
7 | | energy use and energy conservation policy; |
8 | | (ii) water needs, including estimated water draw |
9 | | and if it has or will adopt a sustainable water use and |
10 | | water conservation policy; and |
11 | | (iii) waste management, including if it has or will |
12 | | adopt a waste reduction policy; |
13 | | (19) a recycling plan: |
14 | | (A) Purchaser packaging, including cartridges, |
15 | | shall be accepted by the applicant and recycled. |
16 | | (B) Any recyclable waste generated by the craft |
17 | | grower facility shall be recycled per applicable State |
18 | | and local laws, ordinances, and rules. |
19 | | (C) Any cannabis waste, liquid waste, or hazardous |
20 | | waste shall be disposed of in accordance with 8 Ill. |
21 | | Adm. Code 1000.460, except, to the greatest extent |
22 | | feasible, all cannabis plant waste will be rendered |
23 | | unusable by grinding and incorporating the cannabis |
24 | | plant waste with compostable mixed waste to be disposed |
25 | | of in accordance with 8 Ill Adm. Code 1000.460(g)(1). |
26 | | (20) a commitment to comply with local waste |
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1 | | provisions: a craft grower facility must remain in |
2 | | compliance with applicable State and federal environmental |
3 | | requirements, including, but not limited to: |
4 | | (A) storing, securing, and managing all |
5 | | recyclables and waste, including organic waste |
6 | | composed of or containing finished cannabis and |
7 | | cannabis products, in accordance with applicable State |
8 | | and local laws, ordinances, and rules; and |
9 | | (B) Disposing liquid waste containing cannabis or |
10 | | byproducts of cannabis processing in compliance with |
11 | | all applicable State and federal requirements, |
12 | | including, but not limited to, the cannabis |
13 | | cultivation facility's permits under Title X of the |
14 | | Environmental Protection Act. |
15 | | (21) a commitment to a technology standard for resource |
16 | | efficiency of the craft grower facility. |
17 | | (A) A craft grower facility commits to use |
18 | | resources efficiently, including energy and water. For |
19 | | the following, a cannabis cultivation facility commits |
20 | | to meet or exceed the technology standard identified in |
21 | | paragraphs (i), (ii), (iii), and (iv), which may be |
22 | | modified by rule: |
23 | | (i) lighting systems, including light bulbs; |
24 | | (ii) HVAC system; |
25 | | (iii) water application system to the crop; |
26 | | and |
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1 | | (iv) filtration system for removing |
2 | | contaminants from wastewater. |
3 | | (B) Lighting. The Lighting Power Densities (LPD) |
4 | | for cultivation space commits to not exceed an average |
5 | | of 36 watts per gross square foot of active and growing |
6 | | space canopy, or all installed lighting technology |
7 | | shall meet a photosynthetic photon efficacy (PPE) of no |
8 | | less than 2.2 micromoles per joule fixture and shall be |
9 | | featured on the DesignLights Consortium (DLC) |
10 | | Horticultural Specification Qualified Products List |
11 | | (QPL). In the event that DLC requirement for minimum |
12 | | efficacy exceeds 2.2 micromoles per joule fixture, |
13 | | that PPE shall become the new standard. |
14 | | (C) HVAC. |
15 | | (i) For cannabis grow operations with less |
16 | | than 6,000 square feet of canopy, the licensee |
17 | | commits that all HVAC units will be |
18 | | high-efficiency ductless split HVAC units, or |
19 | | other more energy efficient equipment. |
20 | | (ii) For cannabis grow operations with 6,000 |
21 | | square feet of canopy or more, the licensee commits |
22 | | that all HVAC units will be variable refrigerant |
23 | | flow HVAC units, or other more energy efficient |
24 | | equipment. |
25 | | (D) Water application. |
26 | | (i) The craft grower facility commits to use |
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1 | | automated watering systems, including, but not |
2 | | limited to, drip irrigation and flood tables, to |
3 | | irrigate cannabis crop. |
4 | | (ii) The craft grower facility commits to |
5 | | measure runoff from watering events and report |
6 | | this volume in its water usage plan, and that on |
7 | | average, watering events shall have no more than |
8 | | 20% of runoff of water. |
9 | | (E) Filtration. The craft grower commits that HVAC |
10 | | condensate, dehumidification water, excess runoff, and |
11 | | other wastewater produced by the craft grower facility |
12 | | shall be captured and filtered to the best of the |
13 | | facility's ability to achieve the quality needed to be |
14 | | reused in subsequent watering rounds. |
15 | | (F) Reporting energy use and efficiency as |
16 | | required by rule; and |
17 | | (22) any other information required by rule. |
18 | | (b) Applicants must submit all required information, |
19 | | including the information required in Section 30-15, to the |
20 | | Department of Agriculture. Failure by an applicant to submit |
21 | | all required information may result in the application being |
22 | | disqualified. |
23 | | (c) If the Department of Agriculture receives an |
24 | | application with missing information, the Department of |
25 | | Agriculture may issue a deficiency notice to the applicant. The |
26 | | applicant shall have 10 calendar days from the date of the |
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1 | | deficiency notice to resubmit the incomplete information. |
2 | | Applications that are still incomplete after this opportunity |
3 | | to cure will not be scored and will be disqualified. |
4 | | Section 30-15. Scoring applications. |
5 | | (a) The Department of Agriculture shall by rule develop a |
6 | | system to score craft grower applications to administratively |
7 | | rank applications based on the clarity, organization, and |
8 | | quality of the applicant's responses to required information. |
9 | | Applicants shall be awarded points based on the following |
10 | | categories: |
11 | | (1) Suitability of the proposed facility; |
12 | | (2) Suitability of the employee training plan; |
13 | | (3) Security and recordkeeping; |
14 | | (4) Cultivation plan; |
15 | | (5) Product safety and labeling plan; |
16 | | (6) Business plan; |
17 | | (7) The applicant's status as a Social Equity |
18 | | Applicant, which shall constitute no less than 20% of total |
19 | | available points; |
20 | | (8) Labor and employment practices, which shall |
21 | | constitute no less than 2% of total available points; |
22 | | (9) Environmental plan as described in paragraphs |
23 | | (18), (19), (20), and (21) of subsection (a) of Section |
24 | | 30-10; |
25 | | (10) The applicant is 51% or more owned and controlled |
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1 | | by an individual or individuals who have been an Illinois |
2 | | resident for the past 5 years as proved by tax records; |
3 | | (11) The applicant is 51% or more controlled and owned |
4 | | by an individual or individuals who meet the qualifications |
5 | | of a veteran as defined in Section 45-57 of the Illinois |
6 | | Procurement Code; |
7 | | (12) A diversity plan that includes a narrative of not |
8 | | more than 2,500 words that establishes a goal of diversity |
9 | | in ownership, management, employment, and contracting to |
10 | | ensure that diverse participants and groups are afforded |
11 | | equality of opportunity; and |
12 | | (13) Any other criteria the Department of Agriculture |
13 | | may set by rule for points. |
14 | | (b) The Department may also award up to 2 bonus points for |
15 | | the applicant's plan to engage with the community. The |
16 | | applicant may demonstrate a desire to engage with its community |
17 | | by participating in one or more of, but not limited to, the |
18 | | following actions: (i) establishment of an incubator program |
19 | | designed to increase participation in the cannabis industry by |
20 | | persons who would qualify as Social Equity Applicants; (ii) |
21 | | providing financial assistance to substance abuse treatment |
22 | | centers; (iii) educating children and teens about the potential |
23 | | harms of cannabis use; or (iv) other measures demonstrating a |
24 | | commitment to the applicant's community. Bonus points will only |
25 | | be awarded if the Department receives applications that receive |
26 | | an equal score for a particular region. |
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1 | | (c) Should the applicant be awarded a craft grower license, |
2 | | the information and plans that an applicant provided in its |
3 | | application, including any plans submitted for the acquiring of |
4 | | bonus points, shall be a mandatory condition of the license. |
5 | | Any variation from or failure to perform such plans may result |
6 | | in discipline, including the revocation or nonrenewal of a |
7 | | license.
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8 | | (d) Should the applicant be awarded a craft grower license, |
9 | | the applicant shall pay a prorated fee of $40,000 prior to |
10 | | receiving the license, to be deposited into the Cannabis |
11 | | Regulation Fund. The Department of Agriculture may by rule |
12 | | adjust the fee in this Section after January 1, 2021.
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13 | | Section 30-20. Issuance of license to certain persons |
14 | | prohibited. |
15 | | (a) No craft grower license issued by the Department of |
16 | | Agriculture shall be issued to a person who is licensed by any |
17 | | licensing authority as a cultivation center, or to any |
18 | | partnership, corporation, limited liability company, or trust |
19 | | or any subsidiary, affiliate, or any other form of business |
20 | | enterprise having more than 10% legal, equitable, or beneficial |
21 | | interest, directly or indirectly, in a person licensed in this |
22 | | State as a cultivation center, or to any principal officer, |
23 | | agent, employee, or human being with any form of ownership or |
24 | | control over a cultivation center except for a person who owns |
25 | | no more than 5% of the outstanding shares of a cultivation |
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1 | | center whose shares are publicly traded on an exchange within |
2 | | the meaning of the Securities Exchange Act of 1934. |
3 | | (b) A person who is licensed in this State as a craft |
4 | | grower, or any partnership, corporation, limited liability |
5 | | company, or trust or any subsidiary, affiliate, or agent |
6 | | thereof, or any other form of business enterprise licensed in |
7 | | this State as a craft grower shall not have more than 10% |
8 | | legal, equitable, or beneficial interest, directly or |
9 | | indirectly, in a person licensed as a cultivation center, nor |
10 | | shall any partnership, corporation, limited liability company, |
11 | | or trust or any subsidiary, affiliate, or any other form of |
12 | | business enterprise having any legal, equitable, or beneficial |
13 | | interest, directly or indirectly, in a person licensed in this |
14 | | State as a craft grower or a craft grower agent be a principal |
15 | | officer, agent, employee, or human being with any form of |
16 | | ownership or control over a cultivation center except for a |
17 | | person who owns no more than 5% of the outstanding shares of a |
18 | | cultivation center whose shares are publicly traded on an |
19< |