102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5710

 

Introduced 3/1/2022, by Rep. Marcus C. Evans, Jr.

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Cannabis Regulation and Tax Act. Creates the Cannabis Equity and Oversight Commission. Provides that the Commission shall administer and enforce the provisions of the Act relating to the oversight, licensing, registration, and certification of dispensing organizations, cultivation centers, craft growers, infuser organizations, transporting organizations, laboratories, and agents, including, but not limited to, the issuance of identification cards and establishing limits on the potency or serving size of cannabis or cannabis products. Provides that the Commission may suspend or revoke the license of, or impose other penalties upon, dispensing organizations, cultivation centers, craft growers, infuser organizations, transporting organizations, laboratories, and their principal officers, agents-in-charge, and agents for violations of this Act or any rules adopted under this Act. Contains other provisions. Changes and inserts provisions of the Compassionate Use of Medical Cannabis Program Act into the Cannabis Regulation and Tax Act as its own Article. Repeals the Compassionate Use of Medical Cannabis Program Act. Makes conforming changes throughout various Acts. Effective July 1, 2022.


LRB102 26496 CPF 37026 b

 

 

A BILL FOR

 

HB5710LRB102 26496 CPF 37026 b

1    AN ACT concerning health.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by changing
5Section 6z-112 as follows:
 
6    (30 ILCS 105/6z-112)
7    Sec. 6z-112. The Cannabis Regulation Fund.
8    (a) There is created the Cannabis Regulation Fund in the
9State treasury, subject to appropriations unless otherwise
10provided in this Section. All moneys collected under the
11Cannabis Regulation and Tax Act shall be deposited into the
12Cannabis Regulation Fund, consisting of taxes, license fees,
13other fees, and any other amounts required to be deposited or
14transferred into the Fund.
15    (b) Whenever the Department of Revenue determines that a
16refund should be made under the Cannabis Regulation and Tax
17Act to a claimant, the Department of Revenue shall submit a
18voucher for payment to the State Comptroller, who shall cause
19the order to be drawn for the amount specified and to the
20person named in the notification from the Department of
21Revenue. This subsection (b) shall constitute an irrevocable
22and continuing appropriation of all amounts necessary for the
23payment of refunds out of the Fund as authorized under this

 

 

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1subsection (b).
2    (c) On or before the 25th day of each calendar month, the
3Department of Revenue shall prepare and certify to the State
4Comptroller the transfer and allocations of stated sums of
5money from the Cannabis Regulation Fund to other named funds
6in the State treasury. The amount subject to transfer shall be
7the amount of the taxes, license fees, other fees, and any
8other amounts paid into the Fund during the second preceding
9calendar month, minus the refunds made under subsection (b)
10during the second preceding calendar month by the Department.
11The transfers shall be certified as follows:
12        (1) The Department of Revenue shall first determine
13    the allocations which shall remain in the Cannabis
14    Regulation Fund, subject to appropriations, to pay for the
15    direct and indirect costs associated with the
16    implementation, administration, and enforcement of the
17    Cannabis Regulation and Tax Act by the Department of
18    Revenue, the Department of State Police, the Cannabis
19    Equity and Oversight Commission the Department of
20    Financial and Professional Regulation, the Department of
21    Agriculture, the Department of Public Health, the
22    Department of Commerce and Economic Opportunity, and the
23    Illinois Criminal Justice Information Authority.
24        (2) After the allocations have been made as provided
25    in paragraph (1) of this subsection (c), of the remainder
26    of the amount subject to transfer for the month as

 

 

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1    determined in this subsection (c), the Department shall
2    certify the transfer into the Cannabis Expungement Fund
3    1/12 of the fiscal year amount appropriated from the
4    Cannabis Expungement Fund for payment of costs incurred by
5    State courts, the Attorney General, State's Attorneys,
6    civil legal aid, as defined by Section 15 of the Public
7    Interest Attorney Assistance Act, and the Department of
8    State Police to facilitate petitions for expungement of
9    Minor Cannabis Offenses pursuant to Public Act 101-27, as
10    adjusted by any supplemental appropriation, plus
11    cumulative deficiencies in such transfers for prior
12    months.
13        (2.5) Beginning July 1, 2022, after allocations have
14    been made as provided in paragraphs (1) and (2), the
15    Department of Revenue shall certify to the State
16    Comptroller, and the State Treasurer shall transfer, an
17    amount that the Department of Revenue determines shall be
18    transferred according to the following:
19            (A) 10% shall be transferred to the Cannabis
20        Business Development Fund to be used for the purposes
21        of issuing loans and grants to Social Equity
22        Applicants and Ancillary Social Equity Businesses, as
23        defined under Section 1-10 of the Cannabis Regulation
24        and Tax Act. Expenditures for these purposes shall be
25        subject to appropriation.
26        (3) After the allocations have been made as provided

 

 

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1    in paragraphs (1), and (2), and (2.5) of this subsection
2    (c), the Department of Revenue shall certify to the State
3    Comptroller and the State Treasurer shall transfer the
4    amounts that the Department of Revenue determines shall be
5    transferred into the following named funds according to
6    the following:
7            (A) 2% shall be transferred to the Drug Treatment
8        Fund to be used by the Department of Human Services
9        for: (i) developing and administering a scientifically
10        and medically accurate public education campaign
11        educating youth and adults about the health and safety
12        risks of alcohol, tobacco, illegal drug use (including
13        prescription drugs), and cannabis, including use by
14        pregnant women; and (ii) data collection and analysis
15        of the public health impacts of legalizing the
16        recreational use of cannabis. Expenditures for these
17        purposes shall be subject to appropriations.
18            (B) 8% shall be transferred to the Local
19        Government Distributive Fund and allocated as provided
20        in Section 2 of the State Revenue Sharing Act. The
21        moneys shall be used to fund crime prevention
22        programs, training, and interdiction efforts,
23        including detection, enforcement, and prevention
24        efforts, relating to the illegal cannabis market and
25        driving under the influence of cannabis.
26            (C) 25% shall be transferred to the Criminal

 

 

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1        Justice Information Projects Fund to be used for the
2        purposes of the Restore, Reinvest, and Renew Program
3        to address economic development, violence prevention
4        services, re-entry services, youth development, and
5        civil legal aid, as defined by Section 15 of the Public
6        Interest Attorney Assistance Act. The Restore,
7        Reinvest, and Renew Program shall address these issues
8        through targeted investments and intervention programs
9        and promotion of an employment infrastructure and
10        capacity building related to the social determinants
11        of health in impacted community areas. Expenditures
12        for these purposes shall be subject to appropriations.
13            (D) 20% shall be transferred to the Department of
14        Human Services Community Services Fund, to be used to
15        address substance abuse and prevention and mental
16        health concerns, including treatment, education, and
17        prevention to address the negative impacts of
18        substance abuse and mental health issues, including
19        concentrated poverty, violence, and the historical
20        overuse of criminal justice responses in certain
21        communities, on the individual, family, and community,
22        including federal, State, and local governments,
23        health care institutions and providers, and
24        correctional facilities. Expenditures for these
25        purposes shall be subject to appropriations.
26            (E) 10% shall be transferred to the Budget

 

 

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1        Stabilization Fund.
2            (F) 35%, or any remaining balance, shall be
3        transferred to the General Revenue Fund.
4    As soon as may be practical, but no later than 10 days
5after receipt, by the State Comptroller of the transfer
6certification provided for in this subsection (c) to be given
7to the State Comptroller by the Department of Revenue, the
8State Comptroller shall direct and the State Treasurer shall
9transfer the respective amounts in accordance with the
10directions contained in such certification.
11    (d) On July 1, 2019 the Department of Revenue shall
12certify to the State Comptroller and the State Treasurer shall
13transfer $5,000,000 from the Compassionate Use of Medical
14Cannabis Fund to the Cannabis Regulation Fund.
15    (e) Notwithstanding any other law to the contrary and
16except as otherwise provided in this Section, this Fund is not
17subject to sweeps, administrative charge-backs, or any other
18fiscal or budgetary maneuver that would in any way transfer
19any amounts from this Fund into any other fund of the State.
20    (f) The Cannabis Regulation Fund shall retain a balance of
21$1,000,000 for the purposes of administrative costs.
22    (g) (Blank). In Fiscal Year 2024 the allocations in
23subsection (c) of this Section shall be reviewed and adjusted
24if the General Assembly finds there is a greater need for
25funding for a specific purpose in the State as it relates to
26Public Act 101-27.

 

 

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1    (h) If the Cannabis Cultivation Privilege Tax imposed
2under Article 60 of the Cannabis Regulation and Tax Act or the
3Cannabis Excise Tax imposed under Article 65 of the Cannabis
4Regulation and Tax Act is adjusted, the Cannabis Equity and
5Oversight Commission must submit its recommendations to the
6General Assembly for any changes to the allocations set under
7subsection (c) within 180 calendar days after the effective
8date of this amendatory Act of the 102 General Assembly, if the
9Cannabis Equity and Oversight Commission finds there is a
10greater need for funding for a specific purpose in the State as
11it relates to Public Act 101-27. The Cannabis Equity and
12Oversight Commission may conduct a market study to support its
13recommendations. The Commission's recommendations must be
14submitted to the General Assembly in writing and posted on the
15Commission's website.
16    (i) Within the next fiscal year after receiving the
17Cannabis Equity and Oversight Commission's recommendations
18under subsection (g), and not before, the General Assembly
19must vote to maintain or change the allocations set under
20subsection (c). The General Assembly may only adjust the
21allocations set under subsection (c) if the General Assembly
22finds that there is a greater need for funding for a specific
23purpose in the State as it relates to Public Act 101-27.
24(Source: P.A. 101-27, eff. 6-25-19; 102-558, eff. 8-20-21.)
 
25    Section 10. The Cannabis Regulation and Tax Act is amended

 

 

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1by changing Sections 1-10, 5-5, 5-10, 5-15, 5-20, 5-25, 5-30,
25-45, 7-10, 7-15, 7-20, 7-25, 7-30, 10-5, 10-10, 10-15, 10-20,
310-35, 10-40, 10-45, 10-50, 15-5, 15-15, 15-20, 15-25,
415-30.20, 15-35.10, 15-35.20, 15-55, 15-75, 15-80, 15-85,
515-90, 15-100, 15-110, 15-120, 15-125, 15-135, 15-140, 15-145,
615-150, 15-155, 15-160, 15-165, 15-170, 15-175, 20-1, 20-5,
720-15, 20-21, 20-30, 20-55, 25-1, 25-5, 25-10, 25-15, 25-25,
825-30, 25-35, 25-40, 30-3, 30-5, 30-10, 30-20, 30-30, 30-45,
930-55, 35-3, 35-5, 35-10, 35-25, 35-31, 35-45, 40-1, 40-5,
1040-10, 40-25, 40-45, 45-5, 45-10, 45-20, 50-5, 55-5, 55-10,
1155-15, 55-21, 55-30, 55-35, 55-40, 55-45, 55-50, 55-55, 55-60,
1255-65, 55-85, 65-5, and by adding Section 5-50 and Articles 70
13and 75 as follows:
 
14    (410 ILCS 705/1-10)
15    Sec. 1-10. Definitions. In this Act:
16    "Adult Use Cultivation Center License" means a license
17issued by the Commission Department of Agriculture that
18permits a person to act as a cultivation center under this Act
19and any administrative rule made in furtherance of this Act.
20    "Adult Use Dispensing Organization License" means a
21license issued by the Commission Department of Financial and
22Professional Regulation that permits a person to act as a
23dispensing organization under this Act and any administrative
24rule made in furtherance of this Act.
25    "Advertise" means to engage in promotional activities

 

 

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1including, but not limited to: newspaper, radio, Internet and
2electronic media, and television advertising; the distribution
3of fliers and circulars; billboard advertising; and the
4display of window and interior signs. "Advertise" does not
5mean exterior signage displaying only the name of the licensed
6cannabis business establishment.
7    "Ancillary social equity business" means a small business
8that provides goods or services in the medical and adult use
9cannabis industry and that meets the criteria of a social
10equity applicant, or other criteria that may be set forth by
11rule.
12    "Application points" means the number of points a
13Dispensary Applicant receives on an application for a
14Conditional Adult Use Dispensing Organization License.
15    "BLS Region" means a region in Illinois used by the United
16States Bureau of Labor Statistics to gather and categorize
17certain employment and wage data. The 17 such regions in
18Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
19Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
20Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
21Rockford, St. Louis, Springfield, Northwest Illinois
22nonmetropolitan area, West Central Illinois nonmetropolitan
23area, East Central Illinois nonmetropolitan area, and South
24Illinois nonmetropolitan area.
25    "By lot" means a randomized method of choosing between 2
26or more Eligible Tied Applicants or 2 or more Qualifying

 

 

HB5710- 10 -LRB102 26496 CPF 37026 b

1Applicants.
2    "Cannabis" means marijuana, hashish, and other substances
3that are identified as including any parts of the plant
4Cannabis sativa and including derivatives or subspecies, such
5as indica, of all strains of cannabis, whether growing or not;
6the seeds thereof, the resin extracted from any part of the
7plant; and any compound, manufacture, salt, derivative,
8mixture, or preparation of the plant, its seeds, or resin,
9including tetrahydrocannabinol (THC) and all other naturally
10produced cannabinol derivatives, whether produced directly or
11indirectly by extraction; however, "cannabis" does not include
12the mature stalks of the plant, fiber produced from the
13stalks, oil or cake made from the seeds of the plant, any other
14compound, manufacture, salt, derivative, mixture, or
15preparation of the mature stalks (except the resin extracted
16from it), fiber, oil or cake, or the sterilized seed of the
17plant that is incapable of germination. "Cannabis" does not
18include industrial hemp as defined and authorized under the
19Industrial Hemp Act. "Cannabis" also means cannabis flower,
20concentrate, and cannabis-infused products.
21    "Cannabis business establishment" means a cultivation
22center, craft grower, processing organization, infuser
23organization, dispensing organization, or transporting
24organization, or any other organization the Commission may
25determine is a cannabis business establishment.
26    "Cannabis concentrate" means a product derived from

 

 

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1cannabis that is produced by extracting cannabinoids,
2including tetrahydrocannabinol (THC), from the plant through
3the use of propylene glycol, glycerin, butter, olive oil, or
4other typical cooking fats; water, ice, or dry ice; or butane,
5propane, CO2, ethanol, or isopropanol and with the intended
6use of smoking or making a cannabis-infused product. The use
7of any other solvent is expressly prohibited unless and until
8it is approved by the Commission Department of Agriculture.
9    "Cannabis container" means a sealed or resealable,
10traceable, container, or package used for the purpose of
11containment of cannabis or cannabis-infused product during
12transportation.
13    "Cannabis flower" means marijuana, hashish, and other
14substances that are identified as including any parts of the
15plant Cannabis sativa and including derivatives or subspecies,
16such as indica, of all strains of cannabis; including raw
17kief, leaves, and buds, but not resin that has been extracted
18from any part of such plant; nor any compound, manufacture,
19salt, derivative, mixture, or preparation of such plant, its
20seeds, or resin.
21    "Cannabis-infused product" means a beverage, food, oil,
22ointment, tincture, topical formulation, or another product
23containing cannabis or cannabis concentrate that is not
24intended to be smoked.
25    "Cannabis paraphernalia" means equipment, products, or
26materials intended to be used for planting, propagating,

 

 

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1cultivating, growing, harvesting, manufacturing, producing,
2processing, preparing, testing, analyzing, packaging,
3repackaging, storing, containing, concealing, ingesting, or
4otherwise introducing cannabis into the human body.
5    "Cannabis plant monitoring system" or "plant monitoring
6system" means a system that includes, but is not limited to,
7testing and data collection established and maintained by the
8cultivation center, craft grower, or processing organization
9and that is available to the Commission and the Department of
10Revenue, the Department of Agriculture, the Department of
11Financial and Professional Regulation, and the Illinois State
12Police for the purposes of documenting each cannabis plant and
13monitoring plant development throughout the life cycle of a
14cannabis plant cultivated for the intended use by a customer
15from seed planting to final packaging.
16    "Cannabis testing facility" means an entity registered by
17the Commission Department of Agriculture to test cannabis for
18potency and contaminants.
19    "Clone" means a plant section from a female cannabis plant
20not yet rootbound, growing in a water solution or other
21propagation matrix, that is capable of developing into a new
22plant.
23    "Commission" means the Cannabis Equity and Oversight
24Commission created under Section 5-50.
25    "Commissioner" means a member of the Commission.
26    "Community College Cannabis Vocational Training Pilot

 

 

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1Program faculty participant" means a person who is 21 years of
2age or older, licensed by the Commission Department of
3Agriculture, and is employed or contracted by an Illinois
4community college to provide student instruction using
5cannabis plants at an Illinois Community College.
6    "Community College Cannabis Vocational Training Pilot
7Program faculty participant Agent Identification Card" means a
8document issued by the Commission Department of Agriculture
9that identifies a person as a Community College Cannabis
10Vocational Training Pilot Program faculty participant.
11    "Compassionate Use of Medical Cannabis Program" or
12"Program" means the program established under the
13Compassionate Use of Medical Cannabis Program Act, originally
14codified under Public Act 101-363, that has been combined with
15this Act for the purpose of streamlining the governance of the
16medical and adult use cannabis programs.
17    "Conditional Adult Use Dispensing Organization License"
18means a contingent license awarded to applicants for an Adult
19Use Dispensing Organization License that reserves the right to
20an Adult Use Dispensing Organization License if the applicant
21meets certain conditions described in this Act, but does not
22entitle the recipient to begin purchasing or selling cannabis
23or cannabis-infused products.
24    "Conditional Adult Use Cultivation Center License" means a
25license awarded to top-scoring applicants for an Adult Use
26Cultivation Center License that reserves the right to an Adult

 

 

HB5710- 14 -LRB102 26496 CPF 37026 b

1Use Cultivation Center License if the applicant meets certain
2conditions as determined by the Commission Department of
3Agriculture by rule, but does not entitle the recipient to
4begin growing, processing, or selling cannabis or
5cannabis-infused products.
6    "Craft grower" means a facility operated by an
7organization or business that is licensed by the Commission
8Department of Agriculture to cultivate, dry, cure, and package
9cannabis and perform other necessary activities to make
10cannabis available for sale at a dispensing organization or
11use at a processing organization. A craft grower may contain
12up to 5,000 square feet of canopy space on its premises for
13plants in the flowering state. The Commission Department of
14Agriculture may authorize an increase or decrease of flowering
15stage cultivation space in increments of 3,000 square feet by
16rule based on market need, craft grower capacity, and the
17licensee's history of compliance or noncompliance, with a
18maximum space of 14,000 square feet for cultivating plants in
19the flowering stage, which must be cultivated in all stages of
20growth in an enclosed and secure area. A craft grower may share
21premises with a processing organization or a dispensing
22organization, or both, provided each licensee stores currency
23and cannabis or cannabis-infused products in a separate
24secured vault to which the other licensee does not have access
25or all licensees sharing a vault share more than 50% of the
26same ownership.

 

 

HB5710- 15 -LRB102 26496 CPF 37026 b

1    "Craft grower agent" means a principal officer, board
2member, employee, or other agent of a craft grower who is 21
3years of age or older.
4    "Craft Grower Agent Identification Card" means a document
5issued by the Commission Department of Agriculture that
6identifies a person as a craft grower agent.
7    "Cultivation center" means a facility operated by an
8organization or business that is licensed by the Commission
9Department of Agriculture to cultivate, process, transport
10(unless otherwise limited by this Act), and perform other
11necessary activities to provide cannabis and cannabis-infused
12products to cannabis business establishments.
13    "Cultivation center agent" means a principal officer,
14board member, employee, or other agent of a cultivation center
15who is 21 years of age or older.
16    "Cultivation Center Agent Identification Card" means a
17document issued by the Commission Department of Agriculture
18that identifies a person as a cultivation center agent.
19    "Currency" means currency and coin of the United States.
20    "Dispensary" means a facility operated by a dispensing
21organization at which activities licensed by this Act may
22occur.
23    "Dispensary Applicant" means the Proposed Dispensing
24Organization Name as stated on an application for a
25Conditional Adult Use Dispensing Organization License.
26    "Dispensing organization" means a facility operated by an

 

 

HB5710- 16 -LRB102 26496 CPF 37026 b

1organization or business that is licensed by the Commission
2Department of Financial and Professional Regulation to acquire
3cannabis from a cultivation center, craft grower, processing
4organization, or another dispensary for the purpose of selling
5or dispensing cannabis, cannabis-infused products, cannabis
6seeds, paraphernalia, or related supplies under this Act to
7purchasers or to qualified registered medical cannabis
8patients and caregivers. As used in this Act, "dispensing
9organization" includes a registered medical cannabis
10organization as defined in the Compassionate Use of Medical
11Cannabis Program Act or its successor Act that has obtained an
12Early Approval Adult Use Dispensing Organization License.
13    "Dispensing organization agent" means a principal officer,
14employee, or agent of a dispensing organization who is 21
15years of age or older.
16    "Dispensing organization agent identification card" means
17a document issued by the Commission Department of Financial
18and Professional Regulation that identifies a person as a
19dispensing organization agent.
20    "Disproportionately Impacted Area" means a census tract or
21comparable geographic area that satisfies the following
22criteria as determined by the Department of Commerce and
23Economic Opportunity, that:
24        (1) meets at least one of the following criteria:
25            (A) the area has a poverty rate of at least 20%
26        according to the latest federal decennial census; or

 

 

HB5710- 17 -LRB102 26496 CPF 37026 b

1            (B) 75% or more of the children in the area
2        participate in the federal free lunch program
3        according to reported statistics from the State Board
4        of Education; or
5            (C) at least 20% of the households in the area
6        receive assistance under the Supplemental Nutrition
7        Assistance Program; or
8            (D) the area has an average unemployment rate, as
9        determined by the Illinois Department of Employment
10        Security, that is more than 120% of the national
11        unemployment average, as determined by the United
12        States Department of Labor, for a period of at least 2
13        consecutive calendar years preceding the date of the
14        application; and
15        (2) has high rates of arrest, conviction, and
16    incarceration related to the sale, possession, use,
17    cultivation, manufacture, or transport of cannabis; and .
18        (3) meets any other criteria determined by the
19    Commission using data sources, by rule.
20    "Early Approval Adult Use Cultivation Center License"
21means a license that permits a medical cannabis cultivation
22center licensed under the Compassionate Use of Medical
23Cannabis Program Act as of the effective date of this Act to
24begin cultivating, infusing, packaging, transporting (unless
25otherwise provided in this Act), processing, and selling
26cannabis or cannabis-infused product to cannabis business

 

 

HB5710- 18 -LRB102 26496 CPF 37026 b

1establishments for resale to purchasers as permitted by this
2Act as of January 1, 2020.
3    "Early Approval Adult Use Dispensing Organization License"
4means a license that permits a medical cannabis dispensing
5organization licensed under the Compassionate Use of Medical
6Cannabis Program Act as of the effective date of this Act to
7begin selling cannabis or cannabis-infused product to
8purchasers as permitted by this Act as of January 1, 2020.
9    "Early Approval Adult Use Dispensing Organization at a
10secondary site" means a license that permits a medical
11cannabis dispensing organization licensed under the
12Compassionate Use of Medical Cannabis Program Act as of the
13effective date of this Act to begin selling cannabis or
14cannabis-infused product to purchasers as permitted by this
15Act on January 1, 2020 at a different dispensary location from
16its existing registered medical dispensary location.
17    "Eligible Tied Applicant" means a Tied Applicant that is
18eligible to participate in the process by which a remaining
19available license is distributed by lot pursuant to a Tied
20Applicant Lottery.
21    "Enclosed, locked facility" means a room, greenhouse,
22building, or other enclosed area equipped with locks or other
23security devices that permit access only by cannabis business
24establishment agents working for the licensed cannabis
25business establishment or acting pursuant to this Act to
26cultivate, process, store, or distribute cannabis.

 

 

HB5710- 19 -LRB102 26496 CPF 37026 b

1    "Enclosed, locked space" means a closet, room, greenhouse,
2building, or other enclosed area equipped with locks or other
3security devices that permit access only by authorized
4individuals under this Act. "Enclosed, locked space" may
5include:
6        (1) a space within a residential building that (i) is
7    the primary residence of the individual cultivating 5 or
8    fewer cannabis plants that are more than 5 inches tall and
9    (ii) includes sleeping quarters and indoor plumbing. The
10    space must only be accessible by a key or code that is
11    different from any key or code that can be used to access
12    the residential building from the exterior; or
13        (2) a structure, such as a shed or greenhouse, that
14    lies on the same plot of land as a residential building
15    that (i) includes sleeping quarters and indoor plumbing
16    and (ii) is used as a primary residence by the person
17    cultivating 5 or fewer cannabis plants that are more than
18    5 inches tall, such as a shed or greenhouse. The structure
19    must remain locked when it is unoccupied by people.
20    "Financial institution" has the same meaning as "financial
21organization" as defined in Section 1501 of the Illinois
22Income Tax Act, and also includes the holding companies,
23subsidiaries, and affiliates of such financial organizations.
24    "Flowering stage" means the stage of cultivation where and
25when a cannabis plant is cultivated to produce plant material
26for cannabis products. This includes mature plants as follows:

 

 

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1        (1) if greater than 2 stigmas are visible at each
2    internode of the plant; or
3        (2) if the cannabis plant is in an area that has been
4    intentionally deprived of light for a period of time
5    intended to produce flower buds and induce maturation,
6    from the moment the light deprivation began through the
7    remainder of the marijuana plant growth cycle.
8    "Individual" means a natural person.
9    "Infuser organization" or "infuser" means a facility
10operated by an organization or business that is licensed by
11the Commission Department of Agriculture to directly
12incorporate cannabis or cannabis concentrate into a product
13formulation to produce a cannabis-infused product.
14    "Kief" means the resinous crystal-like trichomes that are
15found on cannabis and that are accumulated, resulting in a
16higher concentration of cannabinoids, untreated by heat or
17pressure, or extracted using a solvent.
18    "Labor peace agreement" means an agreement between a
19cannabis business establishment and any labor organization
20recognized under the National Labor Relations Act, referred to
21in this Act as a bona fide labor organization, that prohibits
22labor organizations and members from engaging in picketing,
23work stoppages, boycotts, and any other economic interference
24with the cannabis business establishment. This agreement means
25that the cannabis business establishment has agreed not to
26disrupt efforts by the bona fide labor organization to

 

 

HB5710- 21 -LRB102 26496 CPF 37026 b

1communicate with, and attempt to organize and represent, the
2cannabis business establishment's employees. The agreement
3shall provide a bona fide labor organization access at
4reasonable times to areas in which the cannabis business
5establishment's employees work, for the purpose of meeting
6with employees to discuss their right to representation,
7employment rights under State law, and terms and conditions of
8employment. This type of agreement shall not mandate a
9particular method of election or certification of the bona
10fide labor organization.
11    "Limited access area" means a room or other area under the
12control of a cannabis dispensing organization licensed under
13this Act and upon the licensed premises where cannabis sales
14occur with access limited to purchasers, dispensing
15organization owners and other dispensing organization agents,
16or service professionals conducting business with the
17dispensing organization, or, if sales to registered qualifying
18patients, caregivers, provisional patients, and Opioid
19Alternative Pilot Program participants licensed pursuant to
20Article 70 the Compassionate Use of Medical Cannabis Program
21Act are also permitted at the dispensary, registered
22qualifying patients, caregivers, provisional patients, and
23Opioid Alternative Pilot Program participants.
24    "Loan" means a loan or debt support from a facility
25established through a financial intermediary agreement.
26    "Member of an impacted family" means an individual who has

 

 

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1a parent, legal guardian, child, spouse, or dependent, or was
2a dependent of an individual who, prior to the effective date
3of this Act, was arrested for, convicted of, or adjudicated
4delinquent for any offense that is eligible for expungement
5under this Act.
6    "Mother plant" means a cannabis plant that is cultivated
7or maintained for the purpose of generating clones, and that
8will not be used to produce plant material for sale to an
9infuser or dispensing organization.
10    "Ordinary public view" means within the sight line with
11normal visual range of a person, unassisted by visual aids,
12from a public street or sidewalk adjacent to real property, or
13from within an adjacent property.
14    "Ownership and control" means ownership of at least 51% of
15the business, including corporate stock if a corporation, and
16control over the management and day-to-day operations of the
17business and an interest in the capital, assets, and profits
18and losses of the business proportionate to percentage of
19ownership.
20    "Person" means a natural individual, firm, partnership,
21association, joint stock company, joint venture, public or
22private corporation, limited liability company, or a receiver,
23executor, trustee, guardian, or other representative appointed
24by order of any court.
25    "Possession limit" means the amount of cannabis under
26Section 10-10 that may be possessed at any one time by a person

 

 

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121 years of age or older or who is a registered qualifying
2medical cannabis patient or caregiver under Article 70 the
3Compassionate Use of Medical Cannabis Program Act.
4    "Principal officer" includes a cannabis business
5establishment applicant or licensed cannabis business
6establishment's board member, owner with more than 1% interest
7of the total cannabis business establishment or more than 5%
8interest of the total cannabis business establishment of a
9publicly traded company, president, vice president, secretary,
10treasurer, partner, officer, member, manager member, or person
11with a profit sharing, financial interest, or revenue sharing
12arrangement. The definition includes a person with authority
13to control the cannabis business establishment, a person who
14assumes responsibility for the debts of the cannabis business
15establishment and who is further defined in this Act.
16    "Primary residence" means a dwelling where a person
17usually stays or stays more often than other locations. It may
18be determined by, without limitation, presence, tax filings;
19address on an Illinois driver's license, an Illinois
20Identification Card, or an Illinois Person with a Disability
21Identification Card; or voter registration. No person may have
22more than one primary residence.
23    "Processing organization" or "processor" means a facility
24operated by an organization or business that is licensed by
25the Commission Department of Agriculture to either extract
26constituent chemicals or compounds to produce cannabis

 

 

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1concentrate or incorporate cannabis or cannabis concentrate
2into a product formulation to produce a cannabis product.
3    "Processing organization agent" means a principal officer,
4board member, employee, or agent of a processing organization.
5    "Processing organization agent identification card" means
6a document issued by the Commission Department of Agriculture
7that identifies a person as a processing organization agent.
8    "Purchaser" means a person 21 years of age or older who
9acquires cannabis for a valuable consideration. "Purchaser"
10does not include a cardholder under Article 70 the
11Compassionate Use of Medical Cannabis Program Act.
12    "Qualifying Applicant" means an applicant that submitted
13an application pursuant to Section 15-30 that received at
14least 85% of 250 application points available under Section
1515-30 as the applicant's final score and meets the definition
16of "Social Equity Applicant" as set forth under this Section.
17    "Qualifying Social Equity Justice Involved Applicant"
18means an applicant that submitted an application pursuant to
19Section 15-30 that received at least 85% of 250 application
20points available under Section 15-30 as the applicant's final
21score and meets the criteria of either paragraph (1) or (2) of
22the definition of "Social Equity Applicant" as set forth under
23this Section.
24    "Qualified Social Equity Applicant" means a Social Equity
25Applicant who has been awarded a conditional license under
26this Act to operate a cannabis business establishment.

 

 

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1    "Resided" means an individual's primary residence was
2located within the relevant geographic area as established by
32 of the following:
4        (1) a signed lease agreement that includes the
5    applicant's name;
6        (2) a property deed that includes the applicant's
7    name;
8        (3) school records;
9        (4) a voter registration card;
10        (5) an Illinois driver's license, an Illinois
11    Identification Card, or an Illinois Person with a
12    Disability Identification Card;
13        (6) a paycheck stub;
14        (7) a utility bill;
15        (8) tax records; or
16        (9) any other proof of residency or other information
17    necessary to establish residence as provided by rule.
18    "Smoking" means the inhalation of smoke caused by the
19combustion of cannabis.
20    "Social Equity Applicant" means an applicant that is an
21Illinois resident that meets one of the following criteria:
22        (1) an applicant with at least 51% ownership and
23    control by one or more individuals who have resided for at
24    least 5 of the preceding 10 years in a Disproportionately
25    Impacted Area;
26        (2) an applicant with at least 51% ownership and

 

 

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1    control by one or more individuals who:
2            (i) have been arrested for, convicted of, or
3        adjudicated delinquent for any offense that is
4        eligible for expungement under this Act; or
5            (ii) is a member of an impacted family;
6        (3) for applicants with a minimum of 10 full-time
7    employees, an applicant with at least 51% of current
8    employees who:
9            (i) currently reside in a Disproportionately
10        Impacted Area; or
11            (ii) have been arrested for, convicted of, or
12        adjudicated delinquent for any offense that is
13        eligible for expungement under this Act or member of
14        an impacted family.
15    Nothing in this Act shall be construed to preempt or limit
16the duties of any employer under the Job Opportunities for
17Qualified Applicants Act. Nothing in this Act shall permit an
18employer to require an employee to disclose sealed or expunged
19offenses, unless otherwise required by law.
20    "Tied Applicant" means an application submitted by a
21Dispensary Applicant pursuant to Section 15-30 that received
22the same number of application points under Section 15-30 as
23the Dispensary Applicant's final score as one or more
24top-scoring applications in the same BLS Region and would have
25been awarded a license but for the one or more other
26top-scoring applications that received the same number of

 

 

HB5710- 27 -LRB102 26496 CPF 37026 b

1application points. Each application for which a Dispensary
2Applicant was required to pay a required application fee for
3the application period ending January 2, 2020 shall be
4considered an application of a separate Tied Applicant.
5    "Tied Applicant Lottery" means the process established
6under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
7Use Dispensing Organization Licenses pursuant to Sections
815-25 and 15-30 among Eligible Tied Applicants.
9    "Tincture" means a cannabis-infused solution, typically
10comprised of alcohol, glycerin, or vegetable oils, derived
11either directly from the cannabis plant or from a processed
12cannabis extract. A tincture is not an alcoholic liquor as
13defined in the Liquor Control Act of 1934. A tincture shall
14include a calibrated dropper or other similar device capable
15of accurately measuring servings.
16    "Transporting organization" or "transporter" means an
17organization or business that is licensed by the Commission
18Department of Agriculture to transport cannabis or
19cannabis-infused product on behalf of a cannabis business
20establishment or a community college licensed under the
21Community College Cannabis Vocational Training Pilot Program.
22    "Transporting organization agent" means a principal
23officer, board member, employee, or agent of a transporting
24organization.
25    "Transporting organization agent identification card"
26means a document issued by the Commission Department of

 

 

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1Agriculture that identifies a person as a transporting
2organization agent.
3    "Unit of local government" means any county, city,
4village, or incorporated town.
5    "Vegetative stage" means the stage of cultivation in which
6a cannabis plant is propagated to produce additional cannabis
7plants or reach a sufficient size for production. This
8includes seedlings, clones, mothers, and other immature
9cannabis plants as follows:
10        (1) if the cannabis plant is in an area that has not
11    been intentionally deprived of light for a period of time
12    intended to produce flower buds and induce maturation, it
13    has no more than 2 stigmas visible at each internode of the
14    cannabis plant; or
15        (2) any cannabis plant that is cultivated solely for
16    the purpose of propagating clones and is never used to
17    produce cannabis.
18(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
19102-98, eff. 7-15-21; 102-538, eff. 8-20-21; revised
2010-13-21.)
 
21    (410 ILCS 705/5-5)
22    Sec. 5-5. Sharing of authority. Notwithstanding any
23provision of law to the contrary, on and after July 1, 2022 the
24Commission may enter into intergovernmental cooperation
25agreements with State departments that have any authority

 

 

HB5710- 29 -LRB102 26496 CPF 37026 b

1granted under this Act to carry out the functions, duties, and
2responsibilities of the Commission. The State departments
3shall collaborate and coordinate with the Commission to
4facilitate an efficient reorganization of the oversight and
5enforcement of the cannabis industry any authority granted to
6any State agency or State employees or appointees under the
7Compassionate Use of Medical Cannabis Program Act shall be
8shared by any State agency or State employees or appointees
9given authority to license, discipline, revoke, regulate, or
10make rules under this Act.
11(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
12    (410 ILCS 705/5-10)
13    Sec. 5-10. Department of Agriculture; transfer of duties
14to the Cannabis Equity and Oversight Commission.
15    (a) The Department of Agriculture shall administer and
16enforce provisions of this Act relating to the oversight and
17registration of cultivation centers, craft growers, infuser
18organizations, and transporting organizations and agents,
19including the issuance of identification cards and
20establishing limits on potency or serving size for cannabis or
21cannabis products. The Department of Agriculture may suspend
22or revoke the license of, or impose other penalties upon
23cultivation centers, craft growers, infuser organizations,
24transporting organizations, and their principal officers,
25Agents-in-Charge, and agents for violations of this Act and

 

 

HB5710- 30 -LRB102 26496 CPF 37026 b

1any rules adopted under this Act.
2    (b) Notwithstanding subsection (a), all functions granted
3to the Department of Agriculture under subsection (a) are
4transferred to, and shall be carried out by, the Commission.
5The Commission has all authority previously granted to the
6Department of Agriculture to enforce this Act.
7(Source: P.A. 101-27, eff. 6-25-19.)
 
8    (410 ILCS 705/5-15)
9    Sec. 5-15. Department of Financial and Professional
10Regulation; transfer of duties to the Cannabis Equity and
11Oversight Commission.
12    (a) The Department of Financial and Professional
13Regulation shall enforce the provisions of this Act relating
14to the oversight and registration of dispensing organizations
15and agents, including the issuance of identification cards for
16dispensing organization agents. The Department of Financial
17and Professional Regulation may suspend or revoke the license
18of, or otherwise discipline dispensing organizations,
19principal officers, agents-in-charge, and agents for
20violations of this Act and any rules adopted under this Act.
21    (b) Notwithstanding subsection (a), all functions granted
22to the Department of Financial and Professional Regulation
23under subsection (a) are transferred to, and shall be carried
24out by, the Commission. The Commission has all authority
25previously granted to the Department of Financial and

 

 

HB5710- 31 -LRB102 26496 CPF 37026 b

1Professional Regulation to enforce this Act.
2(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
3    (410 ILCS 705/5-20)
4    Sec. 5-20. Background checks; Illinois State Police.
5    (a) Through the Illinois State Police, the Commission
6licensing or issuing Department shall conduct a criminal
7history record check of the prospective principal officers,
8board members, and agents of a cannabis business establishment
9applying for a license or identification card under this Act.
10    Each cannabis business establishment prospective principal
11officer, board member, or agent shall submit his or her
12fingerprints to the Illinois State Police in the form and
13manner prescribed by the Illinois State Police.
14    Unless otherwise provided in this Act, such fingerprints
15shall be transmitted through a live scan fingerprint vendor
16licensed by the Department of Financial and Professional
17Regulation. These fingerprints shall be checked against the
18fingerprint records now and hereafter filed in the Illinois
19State Police and Federal Bureau of Investigation criminal
20history records databases. The Illinois State Police shall
21charge a fee for conducting the criminal history record check,
22which shall be deposited into the State Police Services Fund
23and shall not exceed the actual cost of the State and national
24criminal history record check. The Illinois State Police shall
25furnish, pursuant to positive identification, all Illinois

 

 

HB5710- 32 -LRB102 26496 CPF 37026 b

1conviction information and shall forward the national criminal
2history record information to the Commission. :
3        (i) the Department of Agriculture, with respect to a
4    cultivation center, craft grower, infuser organization, or
5    transporting organization; or
6        (ii) the Department of Financial and Professional
7    Regulation, with respect to a dispensing organization.
8    (b) When applying for the initial license or
9identification card, the background checks for all prospective
10principal officers, board members, and agents shall be
11completed before submitting the application to the licensing
12or issuing agency.
13    (c) All applications for licensure under this Act by
14applicants with criminal convictions shall be subject to
15Sections 2105-131, 2105-135, and 2105-205 of the Department of
16Professional Regulation Law of the Civil Administrative Code
17of Illinois.
18    (d) Notwithstanding any other provision of law, all
19authority granted to the Illinois State Police, including, but
20not limited to, conducting random inspections and
21investigations, provided under Sections 15-135, 25-30, 30-30,
2235-25, 40-25, and 55-15 of this Act and Sections 105 and 130 of
23the Compassionate Use of Medical Cannabis Program Act are
24transferred to the Commission.
25(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
26102-538, eff. 8-20-21.)
 

 

 

HB5710- 33 -LRB102 26496 CPF 37026 b

1    (410 ILCS 705/5-25)
2    Sec. 5-25. Department of Public Health to make health
3warning recommendations.
4    (a) The Department of Public Health shall make
5recommendations to the Commission Department of Agriculture
6and the Department of Financial and Professional Regulation on
7appropriate health warnings for dispensaries and advertising,
8which may apply to all cannabis products, including item-type
9specific labeling or warning requirements, regulate the
10facility where cannabis-infused products are made, regulate
11cannabis-infused products as provided in subsection (e) of
12Section 55-5, and facilitate the Adult Use Cannabis Health
13Advisory Committee.
14    (b) An Adult Use Cannabis Health Advisory Committee is
15hereby created and shall meet at least twice annually. The
16Chairperson may schedule meetings more frequently upon his or
17her initiative or upon the request of a Committee member.
18Meetings may be held in person or by teleconference. The
19Committee shall discuss and monitor changes in drug use data
20in Illinois and the emerging science and medical information
21relevant to the health effects associated with cannabis use
22and may provide recommendations to the Department of Human
23Services and the Commission about public health awareness
24campaigns and messages. The Committee shall include the
25following members appointed by the Governor and shall

 

 

HB5710- 34 -LRB102 26496 CPF 37026 b

1represent the geographic, ethnic, and racial diversity of the
2State:
3        (1) The Director of Public Health, or his or her
4    designee, who shall serve as the Chairperson.
5        (2) The Secretary of Human Services, or his or her
6    designee, who shall serve as the Co-Chairperson.
7        (3) A representative of the poison control center.
8        (4) A pharmacologist.
9        (5) A pulmonologist.
10        (6) An emergency room physician.
11        (7) An emergency medical technician, paramedic, or
12    other first responder.
13        (8) A nurse practicing in a school-based setting.
14        (9) A psychologist.
15        (10) A neonatologist.
16        (11) An obstetrician-gynecologist.
17        (12) A drug epidemiologist.
18        (13) A medical toxicologist.
19        (14) An addiction psychiatrist.
20        (15) A pediatrician.
21        (16) A representative of a statewide professional
22    public health organization.
23        (17) A representative of a statewide hospital/health
24    system association.
25        (18) An individual registered as a patient in the
26    Compassionate Use of Medical Cannabis Program.

 

 

HB5710- 35 -LRB102 26496 CPF 37026 b

1        (19) An individual registered as a caregiver in the
2    Compassionate Use of Medical Cannabis Program.
3        (20) A representative of an organization focusing on
4    cannabis-related policy.
5        (21) A representative of an organization focusing on
6    the civil liberties of individuals who reside in Illinois.
7        (22) A representative of the criminal defense or civil
8    aid community of attorneys serving Disproportionately
9    Impacted Areas.
10        (23) A representative of licensed cannabis business
11    establishments.
12        (24) A Social Equity Applicant.
13        (25) A representative of a statewide community-based
14    substance use disorder treatment provider association.
15        (26) A representative of a statewide community-based
16    mental health treatment provider association.
17        (27) A representative of a community-based substance
18    use disorder treatment provider.
19        (28) A representative of a community-based mental
20    health treatment provider.
21        (29) A substance use disorder treatment patient
22    representative.
23        (30) A mental health treatment patient representative.
24    (c) The Committee shall provide a report by September 30,
252021, and every year thereafter, to the Commission and the
26General Assembly. The Department of Public Health shall make

 

 

HB5710- 36 -LRB102 26496 CPF 37026 b

1the report available on its website.
2(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
3    (410 ILCS 705/5-30)
4    Sec. 5-30. Department of Human Services. The Department of
5Human Services shall identify evidence-based programs for
6preventive mental health, the prevention or treatment of
7alcohol abuse, tobacco use, illegal drug use (including
8prescription drugs), and cannabis use by pregnant women, and
9make policy recommendations, as appropriate, to the Adult Use
10Cannabis Health Advisory Committee and the Commission. The
11Department of Human Services shall develop and disseminate
12educational materials for purchasers based on recommendations
13received from the Department of Public Health, the Commission,
14and the Adult Use Cannabis Health Advisory Committee.
15Beginning July 1, 2022, the Commission may also develop and
16disseminate educational materials.
17(Source: P.A. 101-27, eff. 6-25-19.)
 
18    (410 ILCS 705/5-45)
19    Sec. 5-45. Illinois Cannabis Regulation Oversight Officer.
20    (a) The position of Illinois Cannabis Regulation Oversight
21Officer is created within the Commission Department of
22Financial and Professional Regulation under the Secretary of
23Financial and Professional Regulation. The Cannabis Regulation
24Oversight Officer serves a coordinating role among State

 

 

HB5710- 37 -LRB102 26496 CPF 37026 b

1agencies regarding this Act and the Compassionate Use of
2Medical Cannabis Program Act. The Illinois Cannabis Regulation
3Oversight Officer shall be appointed by the Governor with the
4advice and consent of the Senate. The term of office of the
5Officer shall expire on the third Monday of January in
6odd-numbered years provided that he or she shall hold office
7until a successor is appointed and qualified. In case of
8vacancy in office during the recess of the Senate, the
9Governor shall make a temporary appointment until the next
10meeting of the Senate, when the Governor shall nominate some
11person to fill the office, and any person so nominated who is
12confirmed by the Senate shall hold office during the remainder
13of the term and until his or her successor is appointed and
14qualified.
15    (b) The Illinois Cannabis Regulation Oversight Officer has
16the authority to:
17        (1) maintain a staff;
18        (2) make recommendations for administrative and
19    statutory changes;
20        (3) collect data both in Illinois and outside Illinois
21    regarding the regulation of cannabis;
22        (4) compile or assist in the compilation of any
23    reports required by this Act;
24        (5) ensure the coordination of efforts between various
25    State agencies involved in regulating and taxing the sale
26    of cannabis in Illinois; and

 

 

HB5710- 38 -LRB102 26496 CPF 37026 b

1        (6) encourage, promote, suggest, and report best
2    practices for ensuring diversity in the cannabis industry
3    in Illinois.
4    (c) The Illinois Cannabis Regulation Oversight Officer and
5the Officer's staff shall not:
6        (1) participate in the issuance or award of any
7    cannabis business establishment license; or
8        (2) participate in discipline related to any cannabis
9    business establishment.
10    The Illinois Cannabis Regulation Officer is not prohibited
11from coordinating with and making recommendations to agencies
12regarding licensing and disciplinary policies and procedures.
13    (d) Any funding required for the Illinois Cannabis
14Regulation Oversight Officer, its staff, or its activities
15shall be drawn from the Cannabis Regulation Fund.
16    (e) The Illinois Cannabis Regulation Oversight Officer
17shall commission and publish one or more disparity and
18availability studies that: (1) evaluates whether there exists
19discrimination in the State's cannabis industry; and (2) if
20so, evaluates the impact of such discrimination on the State
21and includes recommendations to the Commission Department of
22Financial and Professional Regulation and the Department of
23Agriculture for reducing or eliminating any identified
24barriers to entry in the cannabis market. Such disparity and
25availability studies shall examine each license type issued
26pursuant to Sections 15-25, 15-30.1, or 15-35.20, subsection

 

 

HB5710- 39 -LRB102 26496 CPF 37026 b

1(a) of Section 30-5, or subsection (a) of Section 35-5, and
2shall be initiated within 180 days from the issuance of the
3first of each license authorized by those Sections. The
4results of each disparity and availability study shall be
5reported to the General Assembly and the Governor no later
6than 12 months after the commission of each study.
7    The Illinois Cannabis Regulation Oversight Officer shall
8forward a copy of its findings and recommendations to the
9Commission Department of Financial and Professional
10Regulation, the Department of Agriculture, the Department of
11Commerce and Economic Opportunity, the General Assembly, and
12the Governor.
13    (f) The Illinois Cannabis Regulation Oversight Officer may
14compile, collect, or otherwise gather data necessary for the
15administration of this Act and to carry out the Officer's duty
16relating to the recommendation of policy changes. The Illinois
17Cannabis Regulation Oversight Officer may direct the
18Commission Department of Agriculture, Department of Financial
19and Professional Regulation, Department of Public Health,
20Department of Human Services, and Department of Commerce and
21Economic Opportunity to assist in the compilation, collection,
22and data gathering authorized pursuant to this subsection. The
23Illinois Cannabis Regulation Oversight Officer shall compile
24all of the data into a single report and submit the report to
25the Governor and the General Assembly and publish the report
26on its website.

 

 

HB5710- 40 -LRB102 26496 CPF 37026 b

1    (g) The Illinois Cannabis Regulation Oversight Officer,
2the Illinois Cannabis Regulation Oversight Office, and all its
3personnel and functions shall transfer to the Commission on or
4as soon as practicable after July 1, 2022.
5    (h) Notwithstanding any other provision of law, the
6Cannabis Regulation Oversight Officer shall serve as the
7initial Executive Director of the Commission and shall have
8the authority to carry out the functions for the oversight and
9enforcement of this Act.
10(Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21.)
 
11    (410 ILCS 705/5-50 new)
12    Sec. 5-50. Cannabis Equity and Oversight Commission.
13    (a) There is hereby created the Cannabis Equity and
14Oversight Commission, consisting of 5 members to be appointed
15by the Governor with the advice and consent of the Senate, no
16more than 3 of whom shall be members of the same political
17party at the time of appointment. In case of a vacancy in the
18Commission office during the recess of the Senate, the
19Governor shall make a temporary appointment until the next
20meeting of the Senate, and the appointee shall hold his or her
21office during the remainder of the term and until the
22successor is qualified and appointed by the Governor. Each
23member of the Commission shall hold office for a term of 5
24years, beginning on the third Monday in January of the year in
25which the predecessor's term expires.

 

 

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1    Within 90 days, or as soon as practicable, after the
2effective date of this amendatory Act of the 102nd General
3Assembly, the Governor shall appoint 3 members of the
4Commission. One member shall be designated as the chairperson
5by a majority vote of the Commissioners. The Chairperson shall
6serve as the chief executive officer of the Commission for the
7purpose of ensuring that the Commission's policies are
8properly executed. Within 180 days after the effective date of
9this amendatory Act of the 102nd General Assembly, the
10Governor shall appoint the remaining 2 members of the
11Commission. At the expiration of the term of any Commissioner
12the Governor shall reappoint the Commissioner or appoint a
13successor of the Commissioner for a period of 5 years. The
14Governor may fill vacancies in the office of any Commissioner.
15    Each Commissioner shall serve until a successor is
16appointed and qualified, except that if the Senate refuses to
17consent to the appointment of any Commissioner, such office
18shall be deemed vacant, and within 2 weeks of the date the
19Senate refuses to consent to the reappointment of any
20Commissioner, such Commissioner shall vacate such office.
21    At least one Commissioner shall be an individual formerly
22incarcerated for drug-related offenses or is a member of an
23impacted family. At least 2 Commissioners shall reside in a
24Disproportionately Impacted Area. At least 2 Commissioners
25shall meet at least one of the following qualifications:
26        (1) A business owner in a regulated industry that is

 

 

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1    not regulated under this Act.
2        (2) A medical professional with a background in
3    substance use and abuse, mental health, or toxicology.
4        (3) A background in legal, policy, or social justice
5    issues.
6    A majority of the Commissioners shall constitute a quorum
7to transact business, but no vacancy shall impair the right of
8the remaining Commissioners to exercise all of the powers of
9the Commission. Every act of a majority of the Commissioners
10shall be deemed to be the act of the Commission. The Commission
11shall keep a record of all proceedings, transactions,
12communications, and official acts of the Commission and who
13shall serve as a custodian of all records and perform such
14other duties as the Commission may prescribe.
15    Each Commissioner and the Executive Director, and each
16person appointed by the Commission, shall, before entering
17upon the duties of their office, take and subscribe to the
18constitutional oath of office. The Executive Director and each
19inspector, clerk, and other employee shall devote his or her
20entire time to the duties of their office.
21    No person appointed as a Commissioner, Executive Director,
22inspector, or other employee may, directly, individually, or
23as a member of a partnership, or as a shareholder of a
24corporation, have any financial interest whatsoever in the
25manufacture, sale, or distribution of cannabis, nor receive
26any compensation or profit therefrom, nor have any interest

 

 

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1whatsoever in the purchase or sale made by the persons
2authorized to do so under this Act. No provision of this
3Section shall prevent any Commissioner, Executive Director,
4inspector, or other employee from purchasing and keeping in
5his or her possession for their use or use of members of their
6family or guest any cannabis product that may be purchased or
7kept by any person by virtue of this Act.
8    No Commissioner, Executive Director, or person appointed
9or employed by the Commission shall solicit or accept any
10gift, gratuity, emolument, or employment from any person
11subject to the provisions of this Act, or from any officer,
12agent, or employee thereof, nor solicit, request from, or
13recommend, directly or indirectly, to any such person. Every
14officer, agent, or employee thereof is hereby forbidden to
15offer to any Commissioner, Executive Director, or to any
16person appointed or employed by the Commission any gift,
17gratuity, emolument, or employment. If any Commissioner,
18Executive Director, or any person appointed or employed by the
19Commission shall violate any of the provisions of this
20Section, that person shall be removed from the office or
21employment they hold. A person who violates the provisions of
22this Section shall be guilty of a Class A misdemeanor.
23    The Chairperson of the Commission shall receive an annual
24salary of $165,000 or such greater amount as may be set by the
25Compensation Review Board. The other Commissioners shall
26receive an annual salary of $150,000 or such greater amount as

 

 

HB5710- 44 -LRB102 26496 CPF 37026 b

1may be set by the Compensation Review Board. The Executive
2Director of the Commission shall receive an annual salary of
3$175,000 or such greater amount as may be set by the
4Compensation Review Board. All clerks, inspectors, and
5employees of the Commission shall receive reasonable
6compensation in an amount fixed by the Commission, subject to
7the approval in writing of the Governor. The status and rights
8of a transferred employee, and the rights of the State of
9Illinois and its agencies, under the Personnel Code and
10applicable collective bargaining agreements or under any
11pension, retirement, or annuity plan are not affected (except
12as provided in Sections 14-110 and 18-127 of the Illinois
13Pension Code) by that transfer or by any other provision of
14this amendatory Act of the 102nd General Assembly.
15    The Commission shall administer and enforce the provisions
16of this Act relating to the oversight, licensing,
17registration, and certification of dispensing organizations,
18cultivation centers, craft growers, infuser organizations,
19transporting organizations, laboratories, and agents,
20including, but not limited to, the issuance of identification
21cards and establishing limits on the potency or serving size
22of cannabis or cannabis products. The Commission may suspend
23or revoke the license of, or impose other penalties upon,
24dispensing organizations, cultivation centers, craft growers,
25infuser organizations, transporting organizations,
26laboratories, and their principal officers, agents-in-charge,

 

 

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1and agents for violations of this Act or any rules adopted
2under this Act.
3    (b) To provide for the expeditious and timely
4implementation of the provisions of this amendatory Act of the
5102nd General Assembly, the Commission may adopt emergency
6rules in accordance with Section 5-45 by the of the Illinois
7Administrative Procedure Act. The adoption of emergency rules
8authorized by Section 5-45 and this Section is deemed to be
9necessary for the public interest, safety, and welfare.
10    This subsection is inactive one year after the effective
11date of this amendatory Act of the 102nd General Assembly.
12    (c) The Commission shall have following powers, functions,
13and duties:
14        (1) To administer and enforce provisions of this Act
15    relating to the oversight, licensing, and registration of
16    dispensing organizations, cultivation centers, craft
17    growers, infuser organizations, transporting
18    organizations, and laboratories as well as any other
19    activity related to cannabis.
20        (2) To suspend or revoke the license of or otherwise
21    discipline dispensing organizations, cultivation centers,
22    craft growers, infuser organizations, transporting
23    organizations, and laboratories.
24        (3) To administer the Community College Cannabis
25    Vocational Pilot Program under Article 25.
26        (4) To establish by rule any fee required, including,

 

 

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1    but not limited to, fees for cannabis business
2    establishments.
3        (5) To call upon other administrative departments of
4    the State, county and municipal governments, city police
5    departments, and prosecuting officers for such information
6    and assistance as the Commission deems necessary in the
7    performance of its duties.
8        (6) To establish market protections that protect
9    against unfair business practices, including, but not
10    limited to, price fixing, bid rigging, boycotts,
11    agreements to not compete, exclusive wholesale
12    arrangements for cannabis concentrate, cannabis flower,
13    cannabis infused products, and any product that is
14    licensed under this Act to ensure all license types have
15    equal access to the market without unfair competition.
16        (7) To establish market protections that protect
17    against unfair business practices and reduce or eliminate
18    any identified barriers to entry in the cannabis market
19    for cannabis business establishments owned by Social
20    Equity applicants and owners who qualify as Social Equity
21    applicants.
22        (8) To establish requirements for cannabis business
23    establishments and any other licenses, by rule, related to
24    public safety, including, but not limited to,
25    recordkeeping, security, destruction and disposal of
26    cannabis, storage, inventory, point of sale technology, or

 

 

HB5710- 47 -LRB102 26496 CPF 37026 b

1    operating procedures.
2        (9) To inspect, or cause to be inspected, randomly and
3    without prior notice any premises of cannabis business
4    establishments.
5        (10) To amend or expand the definition of a Social
6    Equity Applicant under this Act.
7        (11) To develop a noncompetitive application and
8    selection process for licensing cannabis business
9    establishments that may be similar to licensing under the
10    Illinois Liquor Control Act.
11        (12) To develop and disseminate educational materials
12    for purchasers based on recommendations received from the
13    Adult Use Cannabis Health Advisory Committee. The
14    Commission shall collaborate with the Department of Human
15    Services, the Department of Public Health, and the Adult
16    Use Cannabis Health Advisory Committee.
17        (13) To ensure that that a criminal history record
18    check of the prospective principal officers, board
19    members, and agents of a cannabis business establishment
20    applying for a license or agent identification card under
21    this Act is completed in cooperation with the Department
22    of Financial and Professional Regulation, the Department
23    of Agriculture, and the Illinois State Police.
24        (14) To provide technical assistance and financial
25    support, as well as any other actions the Commission may
26    deem necessary, to aid Social Equity Applicants, owners

 

 

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1    who qualify as Social Equity Applicants, and Ancillary
2    Social Equity Businesses.
3        (15) To develop and disseminate educational materials
4    for purchasers based on recommendations received from the
5    Adult Use Cannabis Health Advisory Committee.
6        (16) To coordinate and cooperate with the Department
7    of Public Health on completion of goals that include, but
8    are not limited to, the following:
9            (A) Establish and maintain a confidential registry
10        of qualifying patients authorized to engage in the
11        medical use of cannabis and their caregivers.
12            (B) Distribute educational materials about the
13        health benefits and risks associated with the use of
14        cannabis prescription medications.
15            (C)Adopt rules establishing food handling
16        requirements for cannabis infused products that are
17        prepared for human consumption.
18        (17) To submit an annual report to the General
19    Assembly and the Governor, by September 30 of each year,
20    that does not disclose any identifying information about
21    cultivation centers, craft growers, infuser organizations,
22    transportation organizations, or dispensing organizations
23    but does contain, at a minimum, all of the following
24    information for the previous fiscal year:
25            (A) The number of licenses issued to cannabis
26        business establishments organizations by county, or,

 

 

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1        in counties with greater than 3,000,000 residents, by
2        zip code.
3            (B) The total number of cannabis business
4        establishment organizations owners that are Social
5        Equity Applicants or minority persons, women, or
6        persons with disabilities as those terms are defined
7        under Section 2 of the Business Enterprise for
8        Minorities, Women, and Persons with Disabilities Act.
9            (C) The total number of revenues received from
10        cannabis business establishments, segregated from
11        revenues received from cannabis business
12        establishments under the Article 70, by county, and
13        separated by source of revenue.
14            (D) The total amount of revenue received from
15        dispensing organizations that share a premises or
16        majority ownership with a craft grower.
17            (E) The total amount of revenue received from
18        dispensing organizations that share a premises or
19        majority ownership with an infuser.
20            (F) The total amount of revenue received from
21        craft growers and infusers that share a premises or
22        majority ownership with a dispensing organization.
23            (G) The total amount of revenue received from
24        craft growers that share a premises or majority
25        ownership with an infuser, but do not share a premises
26        or ownership with a dispensary.

 

 

HB5710- 50 -LRB102 26496 CPF 37026 b

1            (H) The total amount of revenue received from
2        infusers that share a premises or majority ownership
3        with a craft grower, but do not share a premises or
4        ownership with a dispensary.
5            (I) The total amount of revenue received from
6        craft growers that share a premises or majority
7        ownership with a dispensing organization, but do not
8        share a premises or ownership with an infuser.
9            (J) The total amount of revenue received from
10        infusers that share a premises or majority ownership
11        with a dispensing organization, but do not share a
12        premises or ownership with a craft grower.
13            (K) The total amount of revenue received from
14        transporters.
15            (L) The total amount of revenue received from
16        cannabis business establishment organizations that
17        share a premises or majority ownership with other
18        cannabis business establishments.
19            (M) An analysis of revenue generated from
20        taxation, licensing, and other fees for the State,
21        including recommendations to change the tax rate
22        applied.
23        (18) To conduct or commission an annual survey of the
24    cannabis industry, to be completed on or before January 1
25    of each year. Each cannabis business establishment
26    licensed under this Act shall report to the Commission, on

 

 

HB5710- 51 -LRB102 26496 CPF 37026 b

1    a form to be provided by the Commission, information that
2    will allow the Commission to assess the extent of
3    diversity in the medical and adult use cannabis industry
4    and methods for reducing or eliminating any identified
5    barriers to entry, including access to capital. Failure of
6    a cannabis business establishment to respond to the
7    request to complete the form, survey, or any other request
8    for information may be grounds for disciplinary action by
9    the Commission. The information to be collected shall be
10    designed, at a minimum, to identify the following:
11            (A) The number and percentage of licenses provided
12        to Social Equity Applicants and to businesses owned by
13        minorities, women, veterans, and persons with
14        disabilities.
15            (B) The total number and percentage of employees
16        in the cannabis industry who meet the criteria in
17        subparagraphs (i) or (ii) of paragraph (3) of the
18        definition of Social Equity Applicant or who are
19        minorities, women, veterans, or persons with
20        disabilities.
21            (C) The total number and percentage of contractors
22        and subcontractors in the cannabis industry that meet
23        the definition of a Social Equity Applicant, are
24        persons who are minorities, women, veterans, or
25        persons with disabilities, and are owned by persons
26        who are minorities, women, veterans, or persons with

 

 

HB5710- 52 -LRB102 26496 CPF 37026 b

1        disabilities, if known to the cannabis business
2        establishment.
3            (D) Recommendations for reducing or eliminating
4        any identified barriers to entry, including access to
5        capital, in the cannabis industry.
6    (d) The Commission shall establish by rule the information
7required in an initial application or renewal application for
8an agent identification card for dispensing organizations,
9cultivation centers, craft growers, infusers, transporters, or
10any other organization that may be submitted under this Act
11and the nonrefundable fee to accompany the initial application
12or renewal application. The Commission shall also perform the
13following:
14        (1) Verify the information contained in an initial
15    application or renewal application for an agent
16    identification card submitted under this Act and approve
17    or deny an application within 30 days after receiving a
18    completed initial application or renewal application and
19    all supporting documentation required by rule.
20        (2) Issue an agent identification card to a qualifying
21    agent within 15 business days after approving the initial
22    application or renewal application.
23        (3) Enter the license number of the cannabis business
24    establishment where the agent works.
25        (4) Allow for an electronic initial application and
26    renewal application process and provide a confirmation by

 

 

HB5710- 53 -LRB102 26496 CPF 37026 b

1    electronic or other methods that an application has been
2    submitted.
3    (e) An agent must always keep his or her identification
4card visible when on the property of the cannabis business
5establishment at which the agent is employed. The agent
6identification cards shall contain the following:
7        (1) The name of the cardholder.
8        (2) The date of issuance and expiration date of the
9    identification card.
10        (3) A random 10-digit alphanumeric identification
11    number containing at least 4 numbers and at least 4
12    letters that is unique to the cardholder.
13        (4) A photograph of the cardholder.
14    An agent identification card shall be immediately returned
15to the cannabis business establishment of the agent upon
16termination of the agent's employment.
17    Any agent identification card that is lost shall be
18reported to the Illinois State Police and the Commission
19immediately upon discovery of the loss.
20    The Commission shall not issue an agent identification
21card if the applicant is delinquent in filing any required tax
22return or paying any amount owed to the State of Illinois.
23    (f) The Commission shall require every cannabis business
24establishment to designate, at a minimum, one agent-in-charge
25for each licensed cannabis business establishment. The
26designated agent-in-charge must hold an agent identification

 

 

HB5710- 54 -LRB102 26496 CPF 37026 b

1card. Maintaining an agent-in-charge is a continuing
2requirement for the license, except as provided under
3subsection (g).
4    The agent-in-charge shall be a principal officer or a
5full-time agent of the cannabis business establishment and
6shall manage the cannabis business establishment.
7    The agent-in-charge is responsible for promptly notifying
8the Commission of any change of information required to be
9reported to the Commission.
10    The agent-in-charge is responsible for notifying the
11Commission of a change in the employment status of all
12cannabis business establishment agents within 5 business days
13after the change, including notice to the Commission if the
14termination of an agent was for diversion of product or theft
15of currency.
16    (g) If there is a separation of an agent-in-charge due to
17death, incapacity, termination, or any other reason, and if
18the cannabis business establishment does not have an active
19agent-in-charge, the cannabis business establishment shall
20immediately contact the Commission and request a temporary
21certificate of authority allowing the continuing operation of
22the cannabis business establishment. The request shall include
23the name of an interim agent-in-charge until a replacement is
24identified, or shall include the name of the replacement.
25    The Commission shall issue a temporary certificate of
26authority promptly after it approves the request. If a

 

 

HB5710- 55 -LRB102 26496 CPF 37026 b

1cannabis business establishment fails to promptly request a
2temporary certificate of authority after the separation of the
3agent-in-charge, its registration shall cease until the
4Commission approves the temporary certificate of authority or
5registers a new agent-in-charge.
6    No temporary certificate of authority shall be valid for
7more than 90 days. The succeeding agent-in-charge shall
8register with the Commission in compliance with this Article.
9    Once the permanent succeeding agent-in-charge is
10registered with the Commission, the temporary certificate of
11authority is void. No temporary certificate of authority shall
12be issued for the separation of an agent-in-charge due to
13disciplinary action by the Commission related to their conduct
14on behalf of the cannabis business establishment.
15    (h) The cannabis business establishment agent-in-charge
16registration shall expire one year from the date it is issued.
17The agent-in-charge's registration shall be renewed annually.
18The Commission shall review the compliance history of the
19cannabis business establishment when determining whether to
20grant the request to renew.
21    (i) Upon termination of an agent-in-charge's employment,
22the cannabis business establishment shall immediately reclaim
23the agent identification card. The cannabis business
24establishment shall promptly return the identification card to
25the Commission.
26    (j) The Commission may deny an application or renewal or

 

 

HB5710- 56 -LRB102 26496 CPF 37026 b

1discipline or revoke an agent-in-charge identification card
2for any of the following reasons:
3        (1) Submission of misleading, incorrect, false, or
4    fraudulent information in the application or renewal
5    application.
6        (2) Violation of the requirements of this Act or rules
7    adopted under this Act.
8        (3) Fraudulent use of the agent-in-charge
9    identification card.
10        (4) Selling, distributing, transferring in any manner,
11    or giving cannabis to any unauthorized person.
12        (5) Theft of cannabis, currency, or any other items
13    from a cannabis business establishment.
14        (6) Tampering with, falsifying, altering, modifying,
15    or duplicating an agent-in-charge identification card.
16        (7) Tampering with, falsifying, altering, or modifying
17    the surveillance video footage, point-of-sale system, or
18    the State's verification system.
19        (8) Failure to notify the Commission immediately upon
20    discovery that an agent-in-charge identification card has
21    been lost, stolen, or destroyed.
22        (9) Failure to notify the Commission within 5 business
23    days after a change in the information provided in the
24    application for an agent-in-charge identification card.
25        (10) Dispensing to purchasers in amounts above the
26    limits provided in this Act.

 

 

HB5710- 57 -LRB102 26496 CPF 37026 b

1        (11) Delinquency in filing any required tax returns or
2    paying any amount owed to the State of Illinois.
3    (k) Adult Use Dispensing Organization Licenses issued on
4or before July 1, 2022 shall expire on March 31 of
5even-numbered years. Adult Use Dispensing Organizations
6Licenses issued after July 1, 2022 shall expire annually.
7However, the Commission may determine by rule when an Adult
8Use Dispensing Organization Licenses will expire.
9    (l) Licenses for dispensing organizations, cultivation
10centers, craft growers, infuser organizations, and
11transporting organizations shall be renewed annually, with the
12licensed period running until one year after the date the
13cannabis business establishment license is issued. A cannabis
14business establishment shall receive written or electronic
15notice of the expiration of its current license at least 90
16days before its expiration.
17    (m) The Commission shall grant a renewal within 45 days
18after submission of a complete renewal application if the
19cannabis business establishment submits the following as
20required under this Act or rules adopted under this Act:
21        (1) A renewal application as provided by the
22    Commission.
23        (2) Nonrefundable renewal fees, or another amount as
24    the Commission may set by rule after July 1, 2022, to be
25    deposited into the Cannabis Regulation Fund.
26        (3) Verification on a form provided by the Commission

 

 

HB5710- 58 -LRB102 26496 CPF 37026 b

1    of submission of an environmental impact report.
2        (4) Verification on a form provided by the Commission
3    that the annual diversity report issued by the Cannabis
4    Regulation Oversight Officer or the Commission was
5    completed and submitted.
6    (n) The Commission shall not grant a license renewal in
7the following instances:
8        (1) If the license is currently under revocation or
9    suspension for violation of this Act or any rules adopted
10    under this Act, the licensee, principal officer, board
11    member, person has a financial or voting interest of 5% or
12    greater in the licensee, or an agent of the license holder
13    is delinquent in filing any required tax return or paying
14    any amount owed to the State of Illinois.
15        (2) If a cannabis business establishment fails to
16    renew its license before expiration, the cannabis business
17    establishment shall cease operation until the license is
18    renewed.
19    (o) Any cannabis business establishment that continues to
20operate and that fails to renew its license is subject to
21penalty as provided under Section 45-5 or any rules that may be
22adopted under this Act.
23    (p) All fees and fines collected from the renewal of a
24cannabis business establishment license shall be deposited
25into the Cannabis Regulation Fund.
 

 

 

HB5710- 59 -LRB102 26496 CPF 37026 b

1    (410 ILCS 705/7-10)
2    Sec. 7-10. Cannabis Business Development Fund.
3    (a) There is created in the State treasury a special fund,
4which shall be held separate and apart from all other State
5moneys, to be known as the Cannabis Business Development Fund.
6The Cannabis Business Development Fund shall be exclusively
7used for the following purposes:
8        (1) to provide low-interest rate loans to Qualified
9    Social Equity Applicants to pay for ordinary and necessary
10    expenses to start and operate a cannabis business
11    establishment permitted by this Act;
12        (2) to provide grants to Qualified Social Equity
13    Applicants to pay for ordinary and necessary expenses to
14    start and operate a cannabis business establishment
15    permitted by this Act;
16        (3) to compensate the Department of Commerce and
17    Economic Opportunity for any costs related to the
18    provision of low-interest loans and grants to Qualified
19    Social Equity Applicants;
20        (4) to pay for outreach that may be provided or
21    targeted to attract and support Social Equity Applicants
22    and Qualified Social Equity Applicants;
23        (5) (blank);
24        (6) to conduct any study or research concerning the
25    participation of minorities, women, veterans, or people
26    with disabilities in the cannabis industry, including,

 

 

HB5710- 60 -LRB102 26496 CPF 37026 b

1    without limitation, barriers to such individuals entering
2    the industry as equity owners of cannabis business
3    establishments;
4        (7) (blank); and
5        (8) to assist with job training and technical
6    assistance for residents in Disproportionately Impacted
7    Areas.
8    (b) All moneys collected under Sections 15-15 and 15-20
9for Early Approval Adult Use Dispensing Organization Licenses
10issued before January 1, 2021 and remunerations made as a
11result of transfers of permits awarded to Qualified Social
12Equity Applicants shall be deposited into the Cannabis
13Business Development Fund.
14    (c) As soon as practical after July 1, 2019, the
15Comptroller shall order and the Treasurer shall transfer
16$12,000,000 from the Compassionate Use of Medical Cannabis
17Fund to the Cannabis Business Development Fund. After July 1,
182022, the Comptroller shall order the transfer of the amount
19specified in subsection (2.5) of subsection (c) of Section
206z-112 of the State Finance Act, which will serve as a
21reoccurring revenue stream for the benefit of Social Equity
22Applicants, Social Equity Applicant owners, and Ancillary
23Social Equity Businesses.
24    (d) Notwithstanding any other law to the contrary, the
25Cannabis Business Development Fund is not subject to sweeps,
26administrative charge-backs, or any other fiscal or budgetary

 

 

HB5710- 61 -LRB102 26496 CPF 37026 b

1maneuver that would in any way transfer any amounts from the
2Cannabis Business Development Fund into any other fund of the
3State.
4(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
5    (410 ILCS 705/7-15)
6    Sec. 7-15. Loans and grants to Social Equity Applicants
7and Ancillary Social Equity Businesses.
8    (a) The Department of Commerce and Economic Opportunity
9shall establish grant and loan programs, subject to
10appropriations from the Cannabis Business Development Fund,
11for the purposes of providing financial assistance, loans,
12grants, and technical assistance to Social Equity Applicants.
13    (b) The Department of Commerce and Economic Opportunity
14has the power to:
15        (1) provide Cannabis Social Equity loans and grants
16    from appropriations from the Cannabis Business Development
17    Fund to assist Qualified Social Equity Applicants in
18    gaining entry to, and successfully operating in, the
19    State's regulated cannabis marketplace;
20        (2) enter into agreements that set forth terms and
21    conditions of the financial assistance, accept funds or
22    grants, and engage in cooperation with financial
23    intermediaries, private entities, and agencies of State or
24    local government to carry out the purposes of this
25    Section;

 

 

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1        (3) fix, determine, charge, and collect any premiums,
2    fees, charges, costs and expenses, including application
3    fees, commitment fees, program fees, financing charges, or
4    publication fees in connection with its activities under
5    this Section;
6        (4) coordinate assistance under these loan programs
7    with activities of the Illinois Department of Financial
8    and Professional Regulation, the Illinois Department of
9    Agriculture, the Commission, and other agencies as needed
10    to maximize the effectiveness and efficiency of this Act;
11        (5) provide staff, administration, and related support
12    required to administer this Section;
13        (6) take whatever actions are necessary or appropriate
14    to protect the State's interest in the event of
15    bankruptcy, default, foreclosure, or noncompliance with
16    the terms and conditions of financial assistance provided
17    under this Section, including the ability to recapture
18    funds if the recipient is found to be noncompliant with
19    the terms and conditions of the financial assistance
20    agreement;
21        (7) establish application, notification, contract, and
22    other forms, procedures, or rules deemed necessary and
23    appropriate;
24    and
25        (7.5) enter into financial intermediary agreements
26    that facilitate lending to Qualified Social Equity

 

 

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1    Applicants and Ancillary Social Equity Businesses, which
2    may provide for, but need not be limited to, participation
3    agreements in which the Department of Commerce and
4    Economic Opportunity purchases an undivided interest in a
5    loan, establishment of collateral support funds, financial
6    aid for loan loss reserve accounts, or similar forms of
7    support intended to leverage private investment; and
8        (8) utilize vendors or contract work to carry out the
9    purposes of this Act.
10    (c) Loans made under this Section:
11        (1) shall only be made if, in the Department's
12    judgment, the project furthers the goals set forth in this
13    Act; and
14        (2) shall be in such principal amount and form and
15    contain such terms and provisions with respect to
16    security, insurance, reporting, delinquency charges,
17    default remedies, and other matters as the Department
18    shall determine appropriate to protect the public interest
19    and to be consistent with the purposes of this Section.
20    The terms and provisions may be less than required for
21    similar loans not covered by this Section.
22    (d) Grants made under this Section shall be awarded on a
23competitive and annual basis under the Grant Accountability
24and Transparency Act. Grants made under this Section shall
25further and promote the goals of this Act, including promotion
26of Social Equity Applicants, job training and workforce

 

 

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1development, and technical assistance to Social Equity
2Applicants. The Department of Commerce and Economic
3Opportunity shall coordinate with the Commission and may enter
4into intergovernmental agreements for the purposes of
5establishing policies and administering the grant program.
6    (e) Beginning January 1, 2021 and each year thereafter,
7the Department shall collaborate with the Commission on data
8collection and reporting shall annually report to the Governor
9and the General Assembly on the outcomes and effectiveness of
10this Section that shall include the following:
11        (1) the number of persons or businesses receiving
12    financial assistance under this Section;
13        (2) the amount in financial assistance awarded in the
14    aggregate, in addition to the amount of loans made that
15    are outstanding and the amount of grants awarded;
16        (3) the location of the project engaged in by the
17    person or business; and
18        (4) if applicable, the number of new jobs and other
19    forms of economic output created as a result of the
20    financial assistance.
21    (f) The Department of Commerce and Economic Opportunity
22shall include engagement with individuals with limited English
23proficiency as part of its outreach provided or targeted to
24attract and support Social Equity Applicants.
25(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 

 

 

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1    (410 ILCS 705/7-20)
2    Sec. 7-20. Fee waivers.
3    (a) For Social Equity Applicants, the Commission
4Department of Financial and Professional Regulation and the
5Department of Agriculture shall waive 50% of any nonrefundable
6license application fees, any nonrefundable fees associated
7with purchasing a license to operate a cannabis business
8establishment, and any surety bond or other financial
9requirements, provided a Social Equity Applicant meets the
10following qualifications at the time the payment is due:
11        (1) the applicant, including all individuals and
12    entities with 10% or greater ownership and all parent
13    companies, subsidiaries, and affiliates, has less than a
14    total of $750,000 of income in the previous calendar year;
15    and
16        (2) the applicant, including all individuals and
17    entities with 10% or greater ownership and all parent
18    companies, subsidiaries, and affiliates, has no more than
19    2 other licenses for cannabis business establishments in
20    the State of Illinois.
21    (b) The Commission Department of Financial and
22Professional Regulation and the Department of Agriculture may
23require Social Equity Applicants to attest that they meet the
24requirements for a fee waiver as provided in subsection (a)
25and to provide evidence of annual total income in the previous
26calendar year.

 

 

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1    (c) If the Commission Department of Financial and
2Professional Regulation or the Department of Agriculture
3determines that an applicant who applied as a Social Equity
4Applicant is not eligible for such status, the applicant shall
5be provided an additional 10 days to provide alternative
6evidence that he or she qualifies as a Social Equity
7Applicant. Alternatively, the applicant may pay the remainder
8of the waived fee and be considered as a non-Social Equity
9Applicant. If the applicant cannot do either, then the
10Departments may keep the initial application fee and the
11application shall not be graded.
12(Source: P.A. 101-27, eff. 6-25-19.)
 
13    (410 ILCS 705/7-25)
14    Sec. 7-25. Transfer of license awarded to Qualified Social
15Equity Applicant.
16    (a) In the event a Qualified Social Equity Applicant seeks
17to transfer, sell, or grant a cannabis business establishment
18license within 5 years after it was issued to a person or
19entity that does not qualify as a Social Equity Applicant, the
20transfer agreement shall require the new license holder to pay
21the Cannabis Business Development Fund an amount equal to:
22        (1) any fees that were waived by any State agency
23    based on the applicant's status as a Social Equity
24    Applicant, if applicable;
25        (2) any outstanding amount owed by the Qualified

 

 

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1    Social Equity Applicant for a loan through the Cannabis
2    Business Development Fund, if applicable; and
3        (3) the full amount of any grants that the Qualified
4    Social Equity Applicant received from the Department of
5    Commerce and Economic Opportunity, if applicable.
6    (b) Transfers of cannabis business establishment licenses
7awarded to a Social Equity Applicant are subject to all other
8provisions of this Act, the Compassionate Use of Medical
9Cannabis Program Act, and rules regarding transfers.
10(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
11    (410 ILCS 705/7-30)
12    Sec. 7-30. Reporting. By January 1, 2021, and on January 1
13of every year thereafter, or upon request by the Illinois
14Cannabis Regulation Oversight Officer, each cannabis business
15establishment licensed under this Act and the Compassionate
16Use of Medical Cannabis Program Act shall report to the
17Illinois Cannabis Regulation Oversight Officer, on a form to
18be provided by the Illinois Cannabis Regulation Oversight
19Officer, information that will allow it to assess the extent
20of diversity in the medical and adult use cannabis industry
21and methods for reducing or eliminating any identified
22barriers to entry, including access to capital. Failure of a
23cannabis business establishment to respond to the request of
24the Cannabis Regulation Oversight Officer to complete the
25form, report, and any other request for information may be

 

 

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1grounds for disciplinary action by the Commission Department
2of Financial and Professional Regulation or the Department of
3Agriculture. The information to be collected shall be designed
4to 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
9    the cannabis industry who meet the criteria in (3)(i) or
10    (3)(ii) in the definition of Social Equity Applicant or
11    who 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
16    by minorities, women, veterans, or people with
17    disabilities, if known to the cannabis business
18    establishment; and
19        (4) recommendations on reducing or eliminating any
20    identified barriers to entry, including access to capital,
21    in the cannabis industry.
22(Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21.)
 
23    (410 ILCS 705/10-5)
24    Sec. 10-5. Personal use of cannabis; restrictions on
25cultivation; penalties.

 

 

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1    (a) Beginning January 1, 2020, notwithstanding any other
2provision of law, and except as otherwise provided in this
3Act, the following acts are not a violation of this Act and
4shall not be a criminal or civil offense under State law or the
5ordinances of any unit of local government of this State or be
6a basis for seizure or forfeiture of assets under State law for
7persons other than natural individuals under 21 years of age:
8        (1) possession, consumption, use, purchase, obtaining,
9    or transporting cannabis paraphernalia or an amount of
10    cannabis for personal use that does not exceed the
11    possession limit under Section 10-10 or otherwise in
12    accordance with the requirements of this Act;
13        (2) cultivation of cannabis for personal use in
14    accordance with the requirements of this Act; and
15        (3) controlling property if actions that are
16    authorized by this Act occur on the property in accordance
17    with this Act.
18    (a-1) Beginning January 1, 2020, notwithstanding any other
19provision of law, and except as otherwise provided in this
20Act, possessing, consuming, using, purchasing, obtaining, or
21transporting cannabis paraphernalia or an amount of cannabis
22purchased or produced in accordance with this Act that does
23not exceed the possession limit under subsection (a) of
24Section 10-10 shall not be a basis for seizure or forfeiture of
25assets under State law.
26    (b) Cultivating cannabis for personal use is subject to

 

 

HB5710- 70 -LRB102 26496 CPF 37026 b

1the following limitations:
2        (1) An Illinois resident 21 years of age or older who
3    is a registered qualifying patient under the Compassionate
4    Use of Medical Cannabis Program Act may cultivate cannabis
5    plants, with a limit of 5 plants that are more than 5
6    inches tall, per household without a cultivation center or
7    craft grower license. In this Section, "resident" means a
8    person who has been domiciled in the State of Illinois for
9    a period of 30 days before cultivation.
10        (2) Cannabis cultivation must take place in an
11    enclosed, locked space.
12        (3) Adult registered qualifying patients may purchase
13    cannabis seeds from a dispensary for the purpose of home
14    cultivation. Seeds may not be given or sold to any other
15    person.
16        (4) Cannabis plants shall not be stored or placed in a
17    location where they are subject to ordinary public view,
18    as defined in this Act. A registered qualifying patient
19    who cultivates cannabis under this Section shall take
20    reasonable precautions to ensure the plants are secure
21    from unauthorized access, including unauthorized access by
22    a person under 21 years of age.
23        (5) Cannabis cultivation may occur only on residential
24    property lawfully in possession of the cultivator or with
25    the consent of the person in lawful possession of the
26    property. An owner or lessor of residential property may

 

 

HB5710- 71 -LRB102 26496 CPF 37026 b

1    prohibit the cultivation of cannabis by a lessee.
2        (6) (Blank).
3        (7) A dwelling, residence, apartment, condominium
4    unit, enclosed, locked space, or piece of property not
5    divided into multiple dwelling units shall not contain
6    more than 5 plants at any one time.
7        (8) Cannabis plants may only be tended by registered
8    qualifying patients who reside at the residence, or their
9    authorized agent attending to the residence for brief
10    periods, such as when the qualifying patient is
11    temporarily away from the residence.
12        (9) A registered qualifying patient who cultivates
13    more than the allowable number of cannabis plants, or who
14    sells or gives away cannabis plants, cannabis, or
15    cannabis-infused products produced under this Section, is
16    liable for penalties as provided by law, including the
17    Cannabis Control Act, in addition to loss of home
18    cultivation privileges as established by rule.
19(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
20    (410 ILCS 705/10-10)
21    Sec. 10-10. Possession limit.
22    (a) Except if otherwise authorized by this Act, for a
23person who is 21 years of age or older and a resident of this
24State, the possession limit is as follows:
25        (1) 30 grams of cannabis flower;

 

 

HB5710- 72 -LRB102 26496 CPF 37026 b

1        (2) no more than 500 milligrams of THC contained in
2    cannabis-infused product;
3        (3) 5 grams of cannabis concentrate; and
4        (4) for registered qualifying patients, any cannabis
5    produced by cannabis plants grown under subsection (b) of
6    Section 10-5, provided any amount of cannabis produced in
7    excess of 30 grams of raw cannabis or its equivalent must
8    remain secured within the residence or residential
9    property in which it was grown.
10    (b) For a person who is 21 years of age or older and who is
11not a resident of this State, the possession limit is:
12        (1) 15 grams of cannabis flower;
13        (2) 2.5 grams of cannabis concentrate; and
14        (3) 250 milligrams of THC contained in a
15    cannabis-infused product.
16    (c) The possession limits found in subsections (a) and (b)
17of this Section are to be considered cumulative.
18    (d) No person shall knowingly obtain, seek to obtain, or
19possess an amount of cannabis from a dispensing organization
20or craft grower that would cause him or her to exceed the
21possession limit under this Section, including cannabis that
22is cultivated by a person under this Act or obtained under the
23Compassionate Use of Medical Cannabis Program Act.
24    (e) Cannabis and cannabis-derived substances regulated
25under the Industrial Hemp Act are not covered by this Act.
26(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 

 

 

HB5710- 73 -LRB102 26496 CPF 37026 b

1    (410 ILCS 705/10-15)
2    Sec. 10-15. Persons under 21 years of age.
3    (a) Nothing in this Act is intended to permit the transfer
4of cannabis, with or without remuneration, to a person under
521 years of age, or to allow a person under 21 years of age to
6purchase, possess, use, process, transport, grow, or consume
7cannabis except where authorized by the Compassionate Use of
8Medical Cannabis Program Act or by the Community College
9Cannabis Vocational Pilot Program.
10    (b) Notwithstanding any other provisions of law
11authorizing the possession of medical cannabis, nothing in
12this Act authorizes a person who is under 21 years of age to
13possess cannabis. A person under 21 years of age with cannabis
14in his or her possession is guilty of a civil law violation as
15outlined in paragraph (a) of Section 4 of the Cannabis Control
16Act.
17    (c) If the person under the age of 21 was in a motor
18vehicle at the time of the offense, the Secretary of State may
19suspend or revoke the driving privileges of any person for a
20violation of this Section under Section 6-206 of the Illinois
21Vehicle Code and the rules adopted under it.
22    (d) It is unlawful for any parent or guardian to knowingly
23permit his or her residence, any other private property under
24his or her control, or any vehicle, conveyance, or watercraft
25under his or her control to be used by an invitee of the

 

 

HB5710- 74 -LRB102 26496 CPF 37026 b

1parent's child or the guardian's ward, if the invitee is under
2the age of 21, in a manner that constitutes a violation of this
3Section. A parent or guardian is deemed to have knowingly
4permitted his or her residence, any other private property
5under his or her control, or any vehicle, conveyance, or
6watercraft under his or her control to be used in violation of
7this Section if he or she knowingly authorizes or permits
8consumption of cannabis by underage invitees. Any person who
9violates this subsection (d) is guilty of a Class A
10misdemeanor and the person's sentence shall include, but shall
11not be limited to, a fine of not less than $500. If a violation
12of this subsection (d) directly or indirectly results in great
13bodily harm or death to any person, the person violating this
14subsection is guilty of a Class 4 felony. In this subsection
15(d), where the residence or other property has an owner and a
16tenant or lessee, the trier of fact may infer that the
17residence or other property is occupied only by the tenant or
18lessee.
19(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
20    (410 ILCS 705/10-20)
21    Sec. 10-20. Identification; false identification; penalty.
22    (a) To protect personal privacy, the Commission Department
23of Financial and Professional Regulation shall not require a
24purchaser to provide a dispensing organization with personal
25information other than government-issued identification to

 

 

HB5710- 75 -LRB102 26496 CPF 37026 b

1determine the purchaser's age, and a dispensing organization
2shall not obtain and record personal information about a
3purchaser without the purchaser's consent. A dispensing
4organization shall use an electronic reader or electronic
5scanning device to scan a purchaser's government-issued
6identification, if applicable, to determine the purchaser's
7age and the validity of the identification. Any identifying or
8personal information of a purchaser obtained or received in
9accordance with this Section shall not be retained, used,
10shared or disclosed for any purpose except as authorized by
11this Act.
12    (b) A person who is under 21 years of age may not present
13or offer to a cannabis business establishment or the cannabis
14business establishment's principal or employee any written or
15oral evidence of age that is false, fraudulent, or not
16actually the person's own, for the purpose of:
17        (1) purchasing, attempting to purchase, or otherwise
18    obtaining or attempting to obtain cannabis or any cannabis
19    product; or
20        (2) gaining access to a cannabis business
21    establishment.
22    (c) A violation of this Section is a Class A misdemeanor
23consistent with Section 6-20 of the Liquor Control Act of
241934.
25    (d) The Secretary of State may suspend or revoke the
26driving privileges of any person for a violation of this

 

 

HB5710- 76 -LRB102 26496 CPF 37026 b

1Section under Section 6-206 of the Illinois Vehicle Code and
2the rules adopted under it.
3    (e) No agent or employee of the licensee shall be
4disciplined or discharged for selling or furnishing cannabis
5or cannabis products to a person under 21 years of age if the
6agent or employee demanded and was shown, before furnishing
7cannabis or cannabis products to a person under 21 years of
8age, adequate written evidence of age and identity of the
9person. This subsection (e) does not apply if the agent or
10employee accepted the written evidence knowing it to be false
11or fraudulent. Adequate written evidence of age and identity
12of the person is a document issued by a federal, State, county,
13or municipal government, or subdivision or agency thereof,
14including, but not limited to, a motor vehicle operator's
15license, a registration certificate issued under the Military
16Selective Service Act, or an identification card issued to a
17member of the Armed Forces. Proof that the licensee or his or
18her employee or agent was shown and reasonably relied upon
19such written evidence in any transaction forbidden by this
20Section is an affirmative defense in any criminal prosecution
21therefor or to any proceedings for the suspension or
22revocation of any license based thereon.
23(Source: P.A. 101-27, eff. 6-25-19.)
 
24    (410 ILCS 705/10-35)
25    Sec. 10-35. Limitations and penalties.

 

 

HB5710- 77 -LRB102 26496 CPF 37026 b

1    (a) This Act does not permit any person to engage in, and
2does not prevent the imposition of any civil, criminal, or
3other penalties for engaging in, any of the following conduct:
4        (1) undertaking any task under the influence of
5    cannabis when doing so would constitute negligence,
6    professional malpractice, or professional misconduct;
7        (2) possessing cannabis:
8            (A) in a school bus, unless permitted for a
9        qualifying patient or caregiver pursuant to the
10        Compassionate Use of Medical Cannabis Program Act;
11            (B) on the grounds of any preschool or primary or
12        secondary school, unless permitted for a qualifying
13        patient or caregiver pursuant to the Compassionate Use
14        of Medical Cannabis Program Act;
15            (C) in any correctional facility;
16            (D) in a vehicle not open to the public unless the
17        cannabis is in a reasonably secured, sealed or
18        resealable container and reasonably inaccessible while
19        the vehicle is moving; or
20            (E) in a private residence that is used at any time
21        to provide licensed child care or other similar social
22        service care on the premises;
23        (3) using cannabis:
24            (A) in a school bus, unless permitted for a
25        qualifying patient or caregiver pursuant to the
26        Compassionate Use of Medical Cannabis Program Act;

 

 

HB5710- 78 -LRB102 26496 CPF 37026 b

1            (B) on the grounds of any preschool or primary or
2        secondary school, unless permitted for a qualifying
3        patient or caregiver pursuant to the Compassionate Use
4        of Medical Cannabis Program Act;
5            (C) in any correctional facility;
6            (D) in any motor vehicle;
7            (E) in a private residence that is used at any time
8        to provide licensed child care or other similar social
9        service care on the premises;
10            (F) in any public place; or
11            (G) knowingly in close physical proximity to
12        anyone under 21 years of age who is not a registered
13        medical cannabis patient under the Compassionate Use
14        of Medical Cannabis Program Act;
15        (4) smoking cannabis in any place where smoking is
16    prohibited under the Smoke Free Illinois Act;
17        (5) operating, navigating, or being in actual physical
18    control of any motor vehicle, aircraft, watercraft, or
19    snowmobile while using or under the influence of cannabis
20    in violation of Section 11-501 or 11-502.1 of the Illinois
21    Vehicle Code, Section 5-16 of the Boat Registration and
22    Safety Act, or Section 5-7 of the Snowmobile Registration
23    and Safety Act;
24        (6) facilitating the use of cannabis by any person who
25    is not allowed to use cannabis under this Act or the
26    Compassionate Use of Medical Cannabis Program Act;

 

 

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1        (7) transferring cannabis to any person contrary to
2    this Act or the Compassionate Use of Medical Cannabis
3    Program Act;
4        (8) the use of cannabis by a law enforcement officer,
5    corrections officer, probation officer, or firefighter
6    while on duty; nothing in this Act prevents a public
7    employer of law enforcement officers, corrections
8    officers, probation officers, paramedics, or firefighters
9    from prohibiting or taking disciplinary action for the
10    consumption, possession, sales, purchase, or delivery of
11    cannabis or cannabis-infused substances while on or off
12    duty, unless provided for in the employer's policies.
13    However, an employer may not take adverse employment
14    action against an employee based solely on the lawful
15    possession or consumption of cannabis or cannabis-infused
16    substances by members of the employee's household. To the
17    extent that this Section conflicts with any applicable
18    collective bargaining agreement, the provisions of the
19    collective bargaining agreement shall prevail. Further,
20    nothing in this Act shall be construed to limit in any way
21    the right to collectively bargain over the subject matters
22    contained in this Act; or
23        (9) the use of cannabis by a person who has a school
24    bus permit or a Commercial Driver's License while on duty.
25    As used in this Section, "public place" means any place
26where a person could reasonably be expected to be observed by

 

 

HB5710- 80 -LRB102 26496 CPF 37026 b

1others. "Public place" includes all parts of buildings owned
2in whole or in part, or leased, by the State or a unit of local
3government. "Public place" includes all areas in a park,
4recreation area, wildlife area, or playground owned in whole
5or in part, leased, or managed by the State or a unit of local
6government. "Public place" does not include a private
7residence unless the private residence is used to provide
8licensed child care, foster care, or other similar social
9service care on the premises.
10    (b) Nothing in this Act shall be construed to prevent the
11arrest or prosecution of a person for reckless driving or
12driving under the influence of cannabis, operating a
13watercraft under the influence of cannabis, or operating a
14snowmobile under the influence of cannabis if probable cause
15exists.
16    (c) Nothing in this Act shall prevent a private business
17from restricting or prohibiting the use of cannabis on its
18property, including areas where motor vehicles are parked.
19    (d) Nothing in this Act shall require an individual or
20business entity to violate the provisions of federal law,
21including colleges or universities that must abide by the
22Drug-Free Schools and Communities Act Amendments of 1989, that
23require campuses to be drug free.
24(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
25102-98, eff. 7-15-21.)
 

 

 

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1    (410 ILCS 705/10-40)
2    Sec. 10-40. Restore, Reinvest, and Renew Program.
3    (a) The General Assembly finds that in order to address
4the disparities described below, aggressive approaches and
5targeted resources to support local design and control of
6community-based responses to these outcomes are required. To
7carry out this intent, the Restore, Reinvest, and Renew (R3)
8Program is created for the following purposes:
9        (1) to directly address the impact of economic
10    disinvestment, violence, and the historical overuse of
11    criminal justice responses to community and individual
12    needs by providing resources to support local design and
13    control of community-based responses to these impacts;
14        (2) to substantially reduce both the total amount of
15    gun violence and concentrated poverty in this State;
16        (3) to protect communities from gun violence through
17    targeted investments and intervention programs, including
18    economic growth and improving family violence prevention,
19    community trauma treatment rates, gun injury victim
20    services, and public health prevention activities;
21        (4) to promote employment infrastructure and capacity
22    building related to the social determinants of health in
23    the eligible community areas.
24    (b) In this Section, "Authority" means the Illinois
25Criminal Justice Information Authority in coordination with
26the Justice, Equity, and Opportunity Initiative of the

 

 

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1Lieutenant Governor's Office.
2    (c) Eligibility of R3 Areas. Within 180 days after the
3effective date of this Act, the Authority shall identify as
4eligible, areas in this State by way of historically
5recognized geographic boundaries, to be designated by the
6Restore, Reinvest, and Renew Program Board as R3 Areas and
7therefore eligible to apply for R3 funding. Local groups
8within R3 Areas will be eligible to apply for State funding
9through the Restore, Reinvest, and Renew Program Board.
10Qualifications for designation as an R3 Area are as follows:
11        (1) Based on an analysis of data, communities in this
12    State that are high need, underserved, disproportionately
13    impacted by historical economic disinvestment, and ravaged
14    by violence as indicated by the highest rates of gun
15    injury, unemployment, child poverty rates, and commitments
16    to and returns from the Illinois Department of
17    Corrections.
18        (2) The Authority shall send to the Legislative Audit
19    Commission and make publicly available its analysis and
20    identification of eligible R3 Areas and shall recalculate
21    the eligibility data every 4 years. On an annual basis,
22    the Authority shall analyze data and indicate if data
23    covering any R3 Area or portion of an Area has, for 4
24    consecutive years, substantially deviated from the average
25    of statewide data on which the original calculation was
26    made to determine the Areas, including disinvestment,

 

 

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1    violence, gun injury, unemployment, child poverty rates,
2    or commitments to or returns from the Illinois Department
3    of Corrections.
4    (d) The Restore, Reinvest, and Renew Program Board shall
5encourage collaborative partnerships within each R3 Area to
6minimize multiple partnerships per Area.
7    (e) The Restore, Reinvest, and Renew Program Board is
8created and shall reflect the diversity of the State of
9Illinois, including geographic, racial, and ethnic diversity.
10Using the data provided by the Authority, the Restore,
11Reinvest, and Renew Program Board shall be responsible for
12designating the R3 Area boundaries and for the selection and
13oversight of R3 Area grantees. The Restore, Reinvest, and
14Renew Program Board ex officio members shall, within 4 months
15after the effective date of this Act, convene the Board to
16appoint a full Restore, Reinvest, and Renew Program Board and
17oversee, provide guidance to, and develop an administrative
18structure for the R3 Program.
19            (1) The ex officio members are:
20                (A) The Lieutenant Governor, or his or her
21            designee, who shall serve as chair.
22                (B) The Attorney General, or his or her
23            designee.
24                (C) The Director of Commerce and Economic
25            Opportunity, or his or her designee.
26                (D) The Director of Public Health, or his or

 

 

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1            her designee.
2                (E) The Director of Corrections, or his or her
3            designee.
4                (F) The Director of Juvenile Justice, or his
5            or her designee.
6                (G) The Director of Children and Family
7            Services, or his or her designee.
8                (H) The Executive Director of the Illinois
9            Criminal Justice Information Authority, or his or
10            her designee.
11                (I) The Director of Employment Security, or
12            his or her designee.
13                (J) The Secretary of Human Services, or his or
14            her designee.
15                (K) A member of the Senate, designated by the
16            President of the Senate.
17                (L) A member of the House of Representatives,
18            designated by the Speaker of the House of
19            Representatives.
20                (M) A member of the Senate, designated by the
21            Minority Leader of the Senate.
22                (N) A member of the House of Representatives,
23            designated by the Minority Leader of the House of
24            Representatives.
25        (2) Within 90 days after the R3 Areas have been
26    designated by the Restore, Reinvest, and Renew Program

 

 

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1    Board, the following members shall be appointed to the
2    Board by the R3 board chair:
3            (A) Eight public officials of municipal geographic
4        jurisdictions in the State that include an R3 Area, or
5        their designees;
6            (B) Four community-based providers or community
7        development organization representatives who provide
8        services to treat violence and address the social
9        determinants of health, or promote community
10        investment, including, but not limited to, services
11        such as job placement and training, educational
12        services, workforce development programming, and
13        wealth building. The community-based organization
14        representatives shall work primarily in jurisdictions
15        that include an R3 Area and no more than 2
16        representatives shall work primarily in Cook County.
17        At least one of the community-based providers shall
18        have expertise in providing services to an immigrant
19        population;
20            (C) Two experts in the field of violence
21        reduction;
22            (D) One male who has previously been incarcerated
23        and is over the age of 24 at the time of appointment;
24            (E) One female who has previously been
25        incarcerated and is over the age of 24 at the time of
26        appointment;

 

 

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1            (F) Two individuals who have previously been
2        incarcerated and are between the ages of 17 and 24 at
3        the time of appointment; and
4            (G) Eight individuals who live or work in an R3
5        Area.
6        As used in this paragraph (2), "an individual who has
7    been previously incarcerated" means a person who has been
8    convicted of or pled guilty to one or more felonies, who
9    was sentenced to a term of imprisonment, and who has
10    completed his or her sentence. Board members shall serve
11    without compensation and may be reimbursed for reasonable
12    expenses incurred in the performance of their duties from
13    funds appropriated for that purpose. Once all its members
14    have been appointed as outlined in items (A) through (F)
15    of this paragraph (2), the Board may exercise any power,
16    perform any function, take any action, or do anything in
17    furtherance of its purposes and goals upon the appointment
18    of a quorum of its members. The Board terms of the non-ex
19    officio and General Assembly Board members shall end 4
20    years from the date of appointment. The R3 board chair may
21    remove an individual appointed to the Board who does not
22    regularly attend Board meetings, based on criteria
23    approved by the Board.
24    (f) Within 12 months after the effective date of this Act,
25the Board shall:
26        (1) develop a process to solicit applications from

 

 

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1    eligible R3 Areas;
2        (2) develop a standard template for both planning and
3    implementation activities to be submitted by R3 Areas to
4    the State;
5        (3) identify resources sufficient to support the full
6    administration and evaluation of the R3 Program, including
7    building and sustaining core program capacity at the
8    community and State levels;
9        (4) review R3 Area grant applications and proposed
10    agreements and approve the distribution of resources;
11        (5) develop a performance measurement system that
12    focuses on positive outcomes;
13        (6) develop a process to support ongoing monitoring
14    and evaluation of R3 programs; and
15        (7) deliver an annual report to the General Assembly
16    and to the Governor to be posted on the Governor's Office
17    and General Assembly websites and provide to the public an
18    annual report on its progress.
19    (g) R3 Area grants.
20        (1) Grant funds shall be awarded by the Illinois
21    Criminal Justice Information Authority, in coordination
22    with the R3 board, based on the likelihood that the plan
23    will achieve the outcomes outlined in subsection (a) and
24    consistent with the requirements of the Grant
25    Accountability and Transparency Act, but compliance with
26    the Grant Accountability and Transparency Act is not a

 

 

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1    necessary prerequisite for an organization to receive
2    funds. The R3 Program shall also facilitate the provision
3    of training and technical assistance for capacity building
4    within and among R3 Areas.
5        (2) R3 Program Board grants shall be used to address
6    economic development, violence prevention services,
7    re-entry services, youth development, and civil legal aid.
8        (3) The Restore, Reinvest, and Renew Program Board and
9    the R3 Area grantees shall, within a period of no more than
10    120 days from the completion of planning activities
11    described in this Section, finalize an agreement on the
12    plan for implementation. Implementation activities may:
13            (A) have a basis in evidence or best practice
14        research or have evaluations demonstrating the
15        capacity to address the purpose of the program in
16        subsection (a);
17            (B) collect data from the inception of planning
18        activities through implementation, with data
19        collection technical assistance when needed, including
20        cost data and data related to identified meaningful
21        short-term, mid-term, and long-term goals and metrics;
22            (C) report data to the Restore, Reinvest, and
23        Renew Program Board biannually; and
24            (D) report information as requested by the R3
25        Program Board.
26(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;

 

 

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1102-98, eff. 7-15-21.)
 
2    (410 ILCS 705/10-45)
3    Sec. 10-45. Cannabis Equity Commission.
4    (a) The Cannabis Equity Commission is created and shall
5reflect the diversity of the State of Illinois, including
6geographic, racial, and ethnic diversity. The Cannabis Equity
7Commission shall serve as an advisory board to the Cannabis
8Equity and Oversight Commission. be responsible for the
9following:
10        (1) Ensuring that equity goals in the Illinois
11    cannabis industry, as stated in Section 10-40, are met.
12        (2) Tracking and analyzing minorities in the
13    marketplace.
14        (3) Ensuring that revenue is being invested properly
15    into R3 areas under Section 10-40.
16        (4) Recommending changes to make the law more
17    equitable to communities harmed the most by the war on
18    drugs.
19        (5) Create standards to protect true social equity
20    applicants from predatory businesses.
21    (b) The Cannabis Equity Commission's ex officio members
22shall, within 4 months after the effective date of this
23amendatory Act of the 101st General Assembly, convene the
24Commission to appoint a full Cannabis Equity Commission and
25oversee, provide guidance to, and develop an administrative

 

 

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1structure for the Cannabis Equity Commission. The ex officio
2members are:
3        (1) The Governor, or his or her designee, who shall
4    serve as chair.
5        (2) The Attorney General, or his or her designee.
6        (3) The Director of Commerce and Economic Opportunity,
7    or his or her designee.
8        (4) The Director of Public Health, or his or her
9    designee.
10        (5) The Director of Corrections, or his or her
11    designee.
12        (6) The Director of Financial and Professional
13    Regulation, or his or her designee.
14        (7) The Director of Agriculture, or his or her
15    designee.
16        (8) The Executive Director of the Illinois Criminal
17    Justice Information Authority, or his or her designee.
18        (9) The Secretary of Human Services, or his or her
19    designee.
20        (10) A member of the Senate, designated by the
21    President of the Senate.
22        (11) A member of the House of Representatives,
23    designated by the Speaker of the House of Representatives.
24        (12) A member of the Senate, designated by the
25    Minority Leader of the Senate.
26        (13) A member of the House of Representatives,

 

 

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1    designated by the Minority Leader of the House of
2    Representatives.
3    (c) Within 90 days after the ex officio members convene,
4the following members shall be appointed to the Commission by
5the chair:
6        (1) Four community-based providers or community
7    development organization representatives who provide
8    services to treat violence and address the social
9    determinants of health, or promote community investment,
10    including, but not limited to, services such as job
11    placement and training, educational services, workforce
12    development programming, and wealth building. No more than
13    2 community-based organization representatives shall work
14    primarily in Cook County. At least one of the
15    community-based providers shall have expertise in
16    providing services to an immigrant population.
17        (2) Two experts in the field of violence reduction.
18        (3) One male who has previously been incarcerated and
19    is over the age of 24 at the time of appointment.
20        (4) One female who has previously been incarcerated
21    and is over the age of 24 at the time of appointment.
22        (5) Two individuals who have previously been
23    incarcerated and are between the ages of 17 and 24 at the
24    time of appointment.
25    As used in this subsection (c), "an individual who has
26been previously incarcerated" has the same meaning as defined

 

 

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1in paragraph (2) of subsection (e) of Section 10-40.
2(Source: P.A. 101-658, eff. 3-23-21.)
 
3    (410 ILCS 705/10-50)
4    Sec. 10-50. Employment; employer liability.
5    (a) Nothing in this Act shall prohibit an employer from
6adopting reasonable zero tolerance or drug free workplace
7policies, or employment policies concerning drug testing,
8smoking, consumption, storage, or use of cannabis in the
9workplace or while on call provided that the policy is applied
10in a nondiscriminatory manner.
11    (b) Nothing in this Act shall require an employer to
12permit an employee to be under the influence of or use cannabis
13in the employer's workplace or while performing the employee's
14job duties or while on call.
15    (c) Nothing in this Act shall limit or prevent an employer
16from disciplining an employee or terminating employment of an
17employee for violating an employer's employment policies or
18workplace drug policy.
19    (d) An employer may consider an employee to be impaired or
20under the influence of cannabis if the employer has a good
21faith belief that an employee manifests specific, articulable
22symptoms while working that decrease or lessen the employee's
23performance of the duties or tasks of the employee's job
24position, including symptoms of the employee's speech,
25physical dexterity, agility, coordination, demeanor,

 

 

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1irrational or unusual behavior, or negligence or carelessness
2in operating equipment or machinery; disregard for the safety
3of the employee or others, or involvement in any accident that
4results in serious damage to equipment or property; disruption
5of a production or manufacturing process; or carelessness that
6results in any injury to the employee or others. If an employer
7elects to discipline an employee on the basis that the
8employee is under the influence or impaired by cannabis, the
9employer must afford the employee a reasonable opportunity to
10contest the basis of the determination.
11    (e) Nothing in this Act shall be construed to create or
12imply a cause of action for any person against an employer for:
13        (1) actions taken pursuant to an employer's reasonable
14    workplace drug policy, including but not limited to
15    subjecting an employee or applicant to reasonable drug and
16    alcohol testing, reasonable and nondiscriminatory random
17    drug testing, and discipline, termination of employment,
18    or withdrawal of a job offer due to a failure of a drug
19    test;
20        (2) actions based on the employer's good faith belief
21    that an employee used or possessed cannabis in the
22    employer's workplace or while performing the employee's
23    job duties or while on call in violation of the employer's
24    employment policies;
25        (3) 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        (4) 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
10diminish protections afforded by any other law, including but
11not limited to the Compassionate Use of Medical Cannabis
12Program Act or the Opioid Alternative Pilot Program.
13    (g) Nothing in this Act shall be construed to interfere
14with any federal, State, or local restrictions on employment
15including, but not limited to, the United States Department of
16Transportation regulation 49 CFR 40.151(e) or impact an
17employer's ability to comply with federal or State law or
18cause it to lose a federal or State contract or funding.
19    (h) As used in this Section, "workplace" means the
20employer's premises, including any building, real property,
21and parking area under the control of the employer or area used
22by an employee while in the performance of the employee's job
23duties, and vehicles, whether leased, rented, or owned.
24"Workplace" may be further defined by the employer's written
25employment policy, provided that the policy is consistent with
26this Section.

 

 

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1    (i) For purposes of this Section, an employee is deemed
2"on call" when such employee is scheduled with at least 24
3hours' notice by his or her employer to be on standby or
4otherwise responsible for performing tasks related to his or
5her employment either at the employer's premises or other
6previously designated location by his or her employer or
7supervisor to perform a work-related task.
8(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
9    (410 ILCS 705/15-5)
10    Sec. 15-5. Authority.
11    (a) In this Article: ,
12    "Commission" means the Cannabis Equity and Oversight
13Commission.
14    "Department" means the Department of Financial and
15Professional Regulation.
16    (b) It is the duty of the Commission Department to
17administer and enforce the provisions of this Act relating to
18the licensure and oversight of dispensing organizations and
19dispensing organization agents unless otherwise provided in
20this Act.
21    (c) No person shall operate a dispensing organization for
22the purpose of serving purchasers of cannabis or cannabis
23products without a license issued under this Article by the
24Commission Department. No person shall be an officer,
25director, manager, or employee of a dispensing organization

 

 

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1without having been issued a dispensing organization agent
2card by the Commission Department.
3    (d) Subject to the provisions of this Act, the Commission
4Department may exercise the following powers and duties:
5        (1) Prescribe forms to be issued for the
6    administration and enforcement of this Article.
7        (2) Examine, inspect, and investigate the premises,
8    operations, and records of dispensing organization
9    applicants and licensees.
10        (3) Conduct investigations of possible violations of
11    this Act pertaining to dispensing organizations and
12    dispensing organization agents.
13        (4) Conduct hearings on proceedings to refuse to issue
14    or renew licenses or to revoke, suspend, place on
15    probation, reprimand, or otherwise discipline a license
16    under this Article or take other nondisciplinary action.
17        (5) Adopt rules required for the administration of
18    this Article.
19(Source: P.A. 101-27, eff. 6-25-19.)
 
20    (410 ILCS 705/15-15)
21    Sec. 15-15. Early Approval Adult Use Dispensing
22Organization License.
23    (a) Any medical cannabis dispensing organization holding a
24valid registration under the Compassionate Use of Medical
25Cannabis Program Act as of the effective date of this Act may,

 

 

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1within 60 days of the effective date of this Act, apply to the
2Commission Department for an Early Approval Adult Use
3Dispensing Organization License to serve purchasers at any
4medical cannabis dispensing location in operation on the
5effective date of this Act, pursuant to this Section.
6    (b) A medical cannabis dispensing organization seeking
7issuance of an Early Approval Adult Use Dispensing
8Organization License to serve purchasers at any medical
9cannabis dispensing location in operation as of the effective
10date of this Act shall submit an application on forms provided
11by the Commission Department. The application must be
12submitted by the same person or entity that holds the medical
13cannabis dispensing organization registration and include the
14following:
15        (1) Payment of a nonrefundable fee of $30,000 to be
16    deposited into the Cannabis Regulation Fund;
17        (2) Proof of registration as a medical cannabis
18    dispensing organization that is in good standing;
19        (3) Certification that the applicant will comply with
20    the requirements contained in the Compassionate Use of
21    Medical Cannabis Program Act except as provided in this
22    Act;
23        (4) The legal name of the dispensing organization;
24        (5) The physical address of the dispensing
25    organization;
26        (6) The name, address, social security number, and

 

 

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1    date of birth of each principal officer and board member
2    of the dispensing organization, each of whom must be at
3    least 21 years of age;
4        (7) A nonrefundable Cannabis Business Development Fee
5    equal to 3% of the dispensing organization's total sales
6    between June 1, 2018 to June 1, 2019, or $100,000,
7    whichever is less, to be deposited into the Cannabis
8    Business Development Fund; and
9        (8) Identification of one of the following Social
10    Equity Inclusion Plans to be completed by March 31, 2021:
11            (A) Make a contribution of 3% of total sales from
12        June 1, 2018 to June 1, 2019, or $100,000, whichever is
13        less, to the Cannabis Business Development Fund. This
14        is in addition to the fee required by item (7) of this
15        subsection (b);
16            (B) Make a grant of 3% of total sales from June 1,
17        2018 to June 1, 2019, or $100,000, whichever is less,
18        to a cannabis industry training or education program
19        at an Illinois community college as defined in the
20        Public Community College Act;
21            (C) Make a donation of $100,000 or more to a
22        program that provides job training services to persons
23        recently incarcerated or that operates in a
24        Disproportionately Impacted Area;
25            (D) Participate as a host in a cannabis business
26        establishment incubator program approved by the

 

 

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1        Department of Commerce and Economic Opportunity, and
2        in which an Early Approval Adult Use Dispensing
3        Organization License holder agrees to provide a loan
4        of at least $100,000 and mentorship to incubate, for
5        at least a year, a Social Equity Applicant intending
6        to seek a license or a licensee that qualifies as a
7        Social Equity Applicant. As used in this Section,
8        "incubate" means providing direct financial assistance
9        and training necessary to engage in licensed cannabis
10        industry activity similar to that of the host
11        licensee. The Early Approval Adult Use Dispensing
12        Organization License holder or the same entity holding
13        any other licenses issued pursuant to this Act shall
14        not take an ownership stake of greater than 10% in any
15        business receiving incubation services to comply with
16        this subsection. If an Early Approval Adult Use
17        Dispensing Organization License holder fails to find a
18        business to incubate to comply with this subsection
19        before its Early Approval Adult Use Dispensing
20        Organization License expires, it may opt to meet the
21        requirement of this subsection by completing another
22        item from this subsection; or
23            (E) Participate in a sponsorship program for at
24        least 2 years approved by the Department of Commerce
25        and Economic Opportunity in which an Early Approval
26        Adult Use Dispensing Organization License holder

 

 

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1        agrees to provide an interest-free loan of at least
2        $200,000 to a Social Equity Applicant. The sponsor
3        shall not take an ownership stake in any cannabis
4        business establishment receiving sponsorship services
5        to comply with this subsection.
6    (b-5) Beginning 90 days after the effective date of this
7amendatory Act of the 102nd General Assembly, an Early
8Approval Adult Use Dispensing Organization licensee whose
9license was issued pursuant to this Section may apply to
10relocate within the same geographic district where its
11existing associated medical cannabis dispensing organization
12dispensary licensed under the Compassionate Use of Medical
13Cannabis Act is authorized to operate. A request to relocate
14under this subsection is subject to approval by the Commission
15Department. An Early Approval Adult Use Dispensing
16Organization's application to relocate its license under this
17subsection shall be deemed approved 30 days following the
18submission of a complete application to relocate, unless
19sooner approved or denied in writing by the Commission
20Department. If an application to relocate is denied, the
21Commission Department shall provide, in writing, the specific
22reason for denial.
23    An Early Approval Adult Use Dispensing Organization may
24request to relocate under this subsection if:
25        (1) its existing location is within the boundaries of
26    a unit of local government that prohibits the sale of

 

 

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1    adult use cannabis; or
2        (2) the Early Approval Adult Use Dispensing
3    Organization has obtained the approval of the municipality
4    or, if outside the boundaries of a municipality in an
5    unincorporated area of the county, the approval of the
6    county where the existing license is located to move to
7    another location within that unit of local government.
8    At no time may an Early Approval Adult Use Dispensing
9Organization dispensary licensed under this Section operate in
10a separate facility from its associated medical cannabis
11dispensing organization dispensary licensed under the
12Compassionate Use of Medical Cannabis Act. The relocation of
13an Early Approval Adult Use Dispensing Organization License
14under this subsection shall be subject to Sections 55-25 and
1555-28 of this Act.
16    (c) The license fee required by paragraph (1) of
17subsection (b) of this Section shall be in addition to any
18license fee required for the renewal of a registered medical
19cannabis dispensing organization license.
20    (d) Applicants must submit all required information,
21including the requirements in subsection (b) of this Section,
22to the Commission Department. Failure by an applicant to
23submit all required information may result in the application
24being disqualified.
25    (e) If the Commission Department receives an application
26that fails to provide the required elements contained in

 

 

HB5710- 102 -LRB102 26496 CPF 37026 b

1subsection (b), the Commission Department shall issue a
2deficiency notice to the applicant. The applicant shall have
310 calendar days from the date of the deficiency notice to
4submit complete information. Applications that are still
5incomplete after this opportunity to cure may be disqualified.
6    (f) If an applicant meets all the requirements of
7subsection (b) of this Section, the Commission Department
8shall issue the Early Approval Adult Use Dispensing
9Organization License within 14 days of receiving a completed
10application unless:
11        (1) The licensee or a principal officer is delinquent
12    in filing any required tax returns or paying any amounts
13    owed to the State of Illinois;
14        (2) The Commission Secretary of Financial and
15    Professional Regulation determines there is reason, based
16    on documented compliance violations, the licensee is not
17    entitled to an Early Approval Adult Use Dispensing
18    Organization License; or
19        (3) Any principal officer fails to register and remain
20    in compliance with this Act or the Compassionate Use of
21    Medical Cannabis Program Act.
22    (g) A registered medical cannabis dispensing organization
23that obtains an Early Approval Adult Use Dispensing
24Organization License may begin selling cannabis,
25cannabis-infused products, paraphernalia, and related items to
26purchasers under the rules of this Act no sooner than January

 

 

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11, 2020.
2    (h) A dispensing organization holding a medical cannabis
3dispensing organization license issued under the Compassionate
4Use of Medical Cannabis Program Act must maintain an adequate
5supply of cannabis and cannabis-infused products for purchase
6by qualifying patients, caregivers, provisional patients, and
7Opioid Alternative Pilot Program participants. For the
8purposes of this subsection, "adequate supply" means a monthly
9inventory level that is comparable in type and quantity to
10those medical cannabis products provided to patients and
11caregivers on an average monthly basis for the 6 months before
12the effective date of this Act.
13    (i) If there is a shortage of cannabis or cannabis-infused
14products, a dispensing organization holding both a dispensing
15organization license under the Compassionate Use of Medical
16Cannabis Program Act and this Act shall prioritize serving
17qualifying patients, caregivers, provisional patients, and
18Opioid Alternative Pilot Program participants before serving
19purchasers.
20    (j) Notwithstanding any law or rule to the contrary, a
21person that holds a medical cannabis dispensing organization
22license issued under the Compassionate Use of Medical Cannabis
23Program Act and an Early Approval Adult Use Dispensing
24Organization License may permit purchasers into a limited
25access area as that term is defined in administrative rules
26made under the authority in the Compassionate Use of Medical

 

 

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1Cannabis Program Act.
2    (k) An Early Approval Adult Use Dispensing Organization
3License is valid until March 31, 2021. A dispensing
4organization that obtains an Early Approval Adult Use
5Dispensing Organization License shall receive written or
6electronic notice 90 days before the expiration of the license
7that the license will expire, and that informs the license
8holder that it may apply to renew its Early Approval Adult Use
9Dispensing Organization License on forms provided by the
10Commission Department. The Commission Department shall renew
11the Early Approval Adult Use Dispensing Organization License
12within 60 days of the renewal application being deemed
13complete if:
14        (1) the dispensing organization submits an application
15    and the required nonrefundable renewal fee of $30,000, to
16    be deposited into the Cannabis Regulation Fund;
17        (2) the Commission Department has not suspended or
18    permanently revoked the Early Approval Adult Use
19    Dispensing Organization License or a medical cannabis
20    dispensing organization license on the same premises for
21    violations of this Act, the Compassionate Use of Medical
22    Cannabis Program Act, or rules adopted pursuant to those
23    Acts;
24        (3) the dispensing organization has completed a Social
25    Equity Inclusion Plan as provided by parts (A), (B), and
26    (C) of paragraph (8) of subsection (b) of this Section or

 

 

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1    has made substantial progress toward completing a Social
2    Equity Inclusion Plan as provided by parts (D) and (E) of
3    paragraph (8) of subsection (b) of this Section; and
4        (4) the dispensing organization is in compliance with
5    this Act and rules.
6    (l) The Early Approval Adult Use Dispensing Organization
7License renewed pursuant to subsection (k) of this Section
8shall expire March 31, 2022. The Early Approval Adult Use
9Dispensing Organization Licensee shall receive written or
10electronic notice 90 days before the expiration of the license
11that the license will expire, and that informs the license
12holder that it may apply for an Adult Use Dispensing
13Organization License on forms provided by the Commission
14Department. The Commission Department shall grant an Adult Use
15Dispensing Organization License within 60 days of an
16application being deemed complete if the applicant has met all
17of the criteria in Section 15-36.
18    (m) If a dispensing organization fails to submit an
19application for renewal of an Early Approval Adult Use
20Dispensing Organization License or for an Adult Use Dispensing
21Organization License before the expiration dates provided in
22subsections (k) and (l) of this Section, the dispensing
23organization shall cease serving purchasers and cease all
24operations until it receives a renewal or an Adult Use
25Dispensing Organization License, as the case may be.
26    (n) A dispensing organization agent who holds a valid

 

 

HB5710- 106 -LRB102 26496 CPF 37026 b

1dispensing organization agent identification card issued under
2the Compassionate Use of Medical Cannabis Program Act and is
3an officer, director, manager, or employee of the dispensing
4organization licensed under this Section may engage in all
5activities authorized by this Article to be performed by a
6dispensing organization agent.
7    (o) If the Commission Department suspends, permanently
8revokes, or otherwise disciplines the Early Approval Adult Use
9Dispensing Organization License of a dispensing organization
10that also holds a medical cannabis dispensing organization
11license issued under the Compassionate Use of Medical Cannabis
12Program Act, the Commission Department may consider the
13suspension, permanent revocation, or other discipline of the
14medical cannabis dispensing organization license.
15    (p) All fees collected pursuant to this Section shall be
16deposited into the Cannabis Regulation Fund, unless otherwise
17specified.
18(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
19102-98, eff. 7-15-21.)
 
20    (410 ILCS 705/15-20)
21    Sec. 15-20. Early Approval Adult Use Dispensing
22Organization License; secondary site.
23    (a) Any medical cannabis dispensing organization holding a
24valid registration under the Compassionate Use of Medical
25Cannabis Program Act as of the effective date of this Act may,

 

 

HB5710- 107 -LRB102 26496 CPF 37026 b

1within 60 days of the effective date of this Act, apply to the
2Commission Department for an Early Approval Adult Use
3Dispensing Organization License to operate a dispensing
4organization to serve purchasers at a secondary site not
5within 1,500 feet of another medical cannabis dispensing
6organization or adult use dispensing organization. The Early
7Approval Adult Use Dispensing Organization secondary site
8shall be within any BLS Region that shares territory with the
9dispensing organization district to which the medical cannabis
10dispensing organization is assigned under the administrative
11rules for dispensing organizations under the Compassionate Use
12of Medical Cannabis Program Act.
13    (a-5) If, within 360 days of the effective date of this
14Act, a dispensing organization is unable to find a location
15within the BLS Regions prescribed in subsection (a) of this
16Section in which to operate an Early Approval Adult Use
17Dispensing Organization at a secondary site because no
18jurisdiction within the prescribed area allows the operation
19of an Adult Use Cannabis Dispensing Organization, the
20Commission Department of Financial and Professional Regulation
21may waive the geographic restrictions of subsection (a) of
22this Section and specify another BLS Region into which the
23dispensary may be placed.
24    (b) (Blank).
25    (c) A medical cannabis dispensing organization seeking
26issuance of an Early Approval Adult Use Dispensing

 

 

HB5710- 108 -LRB102 26496 CPF 37026 b

1Organization License at a secondary site to serve purchasers
2at a secondary site as prescribed in subsection (a) of this
3Section shall submit an application on forms provided by the
4Commission Department. The application must meet or include
5the following qualifications:
6        (1) a payment of a nonrefundable application fee of
7    $30,000;
8        (2) proof of registration as a medical cannabis
9    dispensing organization that is in good standing;
10        (3) submission of the application by the same person
11    or entity that holds the medical cannabis dispensing
12    organization registration;
13        (4) the legal name of the medical cannabis dispensing
14    organization;
15        (5) the physical address of the medical cannabis
16    dispensing organization and the proposed physical address
17    of the secondary site;
18        (6) a copy of the current local zoning ordinance
19    Sections relevant to dispensary operations and
20    documentation of the approval, the conditional approval or
21    the status of a request for zoning approval from the local
22    zoning office that the proposed dispensary location is in
23    compliance with the local zoning rules;
24        (7) a plot plan of the dispensary drawn to scale. The
25    applicant shall submit general specifications of the
26    building exterior and interior layout;

 

 

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1        (8) a statement that the dispensing organization
2    agrees to respond to the Commission's Department's
3    supplemental requests for information;
4        (9) for the building or land to be used as the proposed
5    dispensary:
6            (A) if the property is not owned by the applicant,
7        a written statement from the property owner and
8        landlord, if any, certifying consent that the
9        applicant may operate a dispensary on the premises; or
10            (B) if the property is owned by the applicant,
11        confirmation of ownership;
12        (10) a copy of the proposed operating bylaws;
13        (11) a copy of the proposed business plan that
14    complies with the requirements in this Act, including, at
15    a minimum, the following:
16            (A) a description of services to be offered; and
17            (B) a description of the process of dispensing
18        cannabis;
19        (12) a copy of the proposed security plan that
20    complies with the requirements in this Article, including:
21            (A) a description of the delivery process by which
22        cannabis will be received from a transporting
23        organization, including receipt of manifests and
24        protocols that will be used to avoid diversion, theft,
25        or loss at the dispensary acceptance point; and
26            (B) the process or controls that will be

 

 

HB5710- 110 -LRB102 26496 CPF 37026 b

1        implemented to monitor the dispensary, secure the
2        premises, agents, patients, and currency, and prevent
3        the diversion, theft, or loss of cannabis; and
4            (C) the process to ensure that access to the
5        restricted access areas is restricted to, registered
6        agents, service professionals, transporting
7        organization agents, Commission Department inspectors,
8        and security personnel;
9        (13) a proposed inventory control plan that complies
10    with this Section;
11        (14) the name, address, social security number, and
12    date of birth of each principal officer and board member
13    of the dispensing organization; each of those individuals
14    shall be at least 21 years of age;
15        (15) a nonrefundable Cannabis Business Development Fee
16    equal to $200,000, to be deposited into the Cannabis
17    Business Development Fund; and
18        (16) a commitment to completing one of the following
19    Social Equity Inclusion Plans in subsection (d).
20    (d) Before receiving an Early Approval Adult Use
21Dispensing Organization License at a secondary site, a
22dispensing organization shall indicate the Social Equity
23Inclusion Plan that the applicant plans to achieve before the
24expiration of the Early Approval Adult Use Dispensing
25Organization License from the list below:
26        (1) make a contribution of 3% of total sales from June

 

 

HB5710- 111 -LRB102 26496 CPF 37026 b

1    1, 2018 to June 1, 2019, or $100,000, whichever is less, to
2    the Cannabis Business Development Fund. This is in
3    addition to the fee required by paragraph (16) of
4    subsection (c) of this Section;
5        (2) make a grant of 3% of total sales from June 1, 2018
6    to June 1, 2019, or $100,000, whichever is less, to a
7    cannabis industry training or education program at an
8    Illinois community college as defined in the Public
9    Community College Act;
10        (3) make a donation of $100,000 or more to a program
11    that provides job training services to persons recently
12    incarcerated or that operates in a Disproportionately
13    Impacted Area;
14        (4) participate as a host in a cannabis business
15    establishment incubator program approved by the Department
16    of Commerce and Economic Opportunity, and in which an
17    Early Approval Adult Use Dispensing Organization License
18    at a secondary site holder agrees to provide a loan of at
19    least $100,000 and mentorship to incubate, for at least a
20    year, a Social Equity Applicant intending to seek a
21    license or a licensee that qualifies as a Social Equity
22    Applicant. In this paragraph (4), "incubate" means
23    providing direct financial assistance and training
24    necessary to engage in licensed cannabis industry activity
25    similar to that of the host licensee. The Early Approval
26    Adult Use Dispensing Organization License holder or the

 

 

HB5710- 112 -LRB102 26496 CPF 37026 b

1    same entity holding any other licenses issued under this
2    Act shall not take an ownership stake of greater than 10%
3    in any business receiving incubation services to comply
4    with this subsection. If an Early Approval Adult Use
5    Dispensing Organization License at a secondary site holder
6    fails to find a business to incubate in order to comply
7    with this subsection before its Early Approval Adult Use
8    Dispensing Organization License at a secondary site
9    expires, it may opt to meet the requirement of this
10    subsection by completing another item from this subsection
11    before the expiration of its Early Approval Adult Use
12    Dispensing Organization License at a secondary site to
13    avoid a penalty; or
14        (5) participate in a sponsorship program for at least
15    2 years approved by the Department of Commerce and
16    Economic Opportunity in which an Early Approval Adult Use
17    Dispensing Organization License at a secondary site holder
18    agrees to provide an interest-free loan of at least
19    $200,000 to a Social Equity Applicant. The sponsor shall
20    not take an ownership stake of greater than 10% in any
21    business receiving sponsorship services to comply with
22    this subsection.
23    (e) The license fee required by paragraph (1) of
24subsection (c) of this Section is in addition to any license
25fee required for the renewal of a registered medical cannabis
26dispensing organization license.

 

 

HB5710- 113 -LRB102 26496 CPF 37026 b

1    (f) Applicants must submit all required information,
2including the requirements in subsection (c) of this Section,
3to the Commission Department. Failure by an applicant to
4submit all required information may result in the application
5being disqualified. Principal officers shall not be required
6to submit to the fingerprint and background check requirements
7of Section 5-20.
8    (g) If the Commission Department receives an application
9that fails to provide the required elements contained in
10subsection (c), the Commission Department shall issue a
11deficiency notice to the applicant. The applicant shall have
1210 calendar days from the date of the deficiency notice to
13submit complete information. Applications that are still
14incomplete after this opportunity to cure may be disqualified.
15    (h) Once all required information and documents have been
16submitted, the Commission Department will review the
17application. The Commission Department may request revisions
18and retains final approval over dispensary features. Once the
19application is complete and meets the Commission's
20Department's approval, the Commission Department shall
21conditionally approve the license. Final approval is
22contingent on the build-out and Commission Department
23inspection.
24    (i) Upon submission of the Early Approval Adult Use
25Dispensing Organization at a secondary site application, the
26applicant shall request an inspection and the Commission

 

 

HB5710- 114 -LRB102 26496 CPF 37026 b

1Department may inspect the Early Approval Adult Use Dispensing
2Organization's secondary site to confirm compliance with the
3application and this Act.
4    (j) The Commission Department shall only issue an Early
5Approval Adult Use Dispensing Organization License at a
6secondary site after the completion of a successful
7inspection.
8    (k) If an applicant passes the inspection under this
9Section, the Commission Department shall issue the Early
10Approval Adult Use Dispensing Organization License at a
11secondary site within 10 business days unless:
12        (1) The licensee, any principal officer or board
13    member of the licensee, or any person having a financial
14    or voting interest of 5% or greater in the licensee is
15    delinquent in filing any required tax returns or paying
16    any amounts owed to the State of Illinois; or
17        (2) The Commission Secretary of Financial and
18    Professional Regulation determines there is reason, based
19    on documented compliance violations, the licensee is not
20    entitled to an Early Approval Adult Use Dispensing
21    Organization License at its secondary site.
22    (l) Once the Commission Department has issued a license,
23the dispensing organization shall notify the Commission
24Department of the proposed opening date.
25    (m) A registered medical cannabis dispensing organization
26that obtains an Early Approval Adult Use Dispensing

 

 

HB5710- 115 -LRB102 26496 CPF 37026 b

1Organization License at a secondary site may begin selling
2cannabis, cannabis-infused products, paraphernalia, and
3related items to purchasers under the rules of this Act no
4sooner than January 1, 2020.
5    (n) If there is a shortage of cannabis or cannabis-infused
6products, a dispensing organization holding both a dispensing
7organization license under the Compassionate Use of Medical
8Cannabis Program Act and this Article shall prioritize serving
9qualifying patients and caregivers before serving purchasers.
10    (o) An Early Approval Adult Use Dispensing Organization
11License at a secondary site is valid until March 31, 2021. A
12dispensing organization that obtains an Early Approval Adult
13Use Dispensing Organization License at a secondary site shall
14receive written or electronic notice 90 days before the
15expiration of the license that the license will expire, and
16inform the license holder that it may renew its Early Approval
17Adult Use Dispensing Organization License at a secondary site.
18The Commission Department shall renew an Early Approval Adult
19Use Dispensing Organization License at a secondary site within
2060 days of submission of the renewal application being deemed
21complete if:
22        (1) the dispensing organization submits an application
23    and the required nonrefundable renewal fee of $30,000, to
24    be deposited into the Cannabis Regulation Fund;
25        (2) the Commission Department has not suspended or
26    permanently revoked the Early Approval Adult Use

 

 

HB5710- 116 -LRB102 26496 CPF 37026 b

1    Dispensing Organization License or a medical cannabis
2    dispensing organization license held by the same person or
3    entity for violating this Act or rules adopted under this
4    Act or the Compassionate Use of Medical Cannabis Program
5    Act or rules adopted under that Act; and
6        (3) the dispensing organization has completed a Social
7    Equity Inclusion Plan provided by paragraph (1), (2), or
8    (3) of subsection (d) of this Section or has made
9    substantial progress toward completing a Social Equity
10    Inclusion Plan provided by paragraph (4) or (5) of
11    subsection (d) of this Section.     
12    (p) The Early Approval Adult Use Dispensing Organization
13Licensee at a secondary site renewed pursuant to subsection
14(o) shall receive written or electronic notice 90 days before
15the expiration of the license that the license will expire,
16and that informs the license holder that it may apply for an
17Adult Use Dispensing Organization License on forms provided by
18the Commission Department. The Commission Department shall
19grant an Adult Use Dispensing Organization License within 60
20days of an application being deemed complete if the applicant
21has meet all of the criteria in Section 15-36.
22    (q) If a dispensing organization fails to submit an
23application for renewal of an Early Approval Adult Use
24Dispensing Organization License or for an Adult Use Dispensing
25Organization License before the expiration dates provided in
26subsections (o) and (p) of this Section, the dispensing

 

 

HB5710- 117 -LRB102 26496 CPF 37026 b

1organization shall cease serving purchasers until it receives
2a renewal or an Adult Use Dispensing Organization License.
3    (r) A dispensing organization agent who holds a valid
4dispensing organization agent identification card issued under
5the Compassionate Use of Medical Cannabis Program Act and is
6an officer, director, manager, or employee of the dispensing
7organization licensed under this Section may engage in all
8activities authorized by this Article to be performed by a
9dispensing organization agent.
10    (s) If the Commission Department suspends, permanently
11revokes, or otherwise disciplines the Early Approval Adult Use
12Dispensing Organization License of a dispensing organization
13that also holds a medical cannabis dispensing organization
14license issued under the Compassionate Use of Medical Cannabis
15Program Act, the Commission Department may consider the
16suspension, permanent revocation, or other discipline as
17grounds to take disciplinary action against the medical
18cannabis dispensing organization.
19    (t) All fees collected pursuant to this Section shall be
20deposited into the Cannabis Regulation Fund, unless otherwise
21specified.
22(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
23    (410 ILCS 705/15-30.20)
24    Sec. 15-30.20. Tied Applicant Lottery; additional
25requirements; timing.

 

 

HB5710- 118 -LRB102 26496 CPF 37026 b

1    (a) If awarding a license in a Tied Applicant Lottery
2would result in a Tied Applicant possessing more than 10 Early
3Approval Adult Use Dispensing Organization Licenses, Early
4Approval Adult Use Dispensing Organization Licenses at a
5secondary site, Conditional Adult Use Dispensing Organization
6Licenses, Adult Use Dispensing Organization Licenses, or any
7combination thereof, the Tied Applicant must choose which
8license to abandon pursuant to subsection (d) of Section 15-36
9and notify the Commission Department in writing within 5
10business days after the date that the Tied Applicant Lottery
11is conducted.
12    (b) The Commission Department shall publish the certified
13results of a Tied Applicant Lottery within 2 business days
14after the Tied Applicant Lottery is conducted.
15(Source: P.A. 102-98, eff. 7-15-21.)
 
16    (410 ILCS 705/15-35.10)
17    Sec. 15-35.10. Social Equity Justice Involved Lottery for
18Conditional Adult Use Dispensing Organization Licenses.
19    (a) In addition to any of the licenses issued under
20Section 15-15, Section 15-20, Section 15-25, Section 15-30.20,
21or Section 15-35, within 10 business days after the resulting
22final scores for all scored applications pursuant to Sections
2315-25 and 15-30 are released, the Commission Department shall
24issue up to 55 Conditional Adult Use Dispensing Organization
25Licenses by lot, pursuant to the application process adopted

 

 

HB5710- 119 -LRB102 26496 CPF 37026 b

1under this Section. In order to be eligible to be awarded a
2Conditional Adult Use Dispensing Organization License by lot,
3a Dispensary Applicant must be a Qualifying Social Equity
4Justice Involved Applicant.
5    The licenses issued under this Section shall be awarded in
6each BLS Region in the following amounts:
7        (1) Bloomington: 1.
8        (2) Cape Girardeau: 1.
9        (3) Carbondale-Marion: 1.
10        (4) Champaign-Urbana: 1.
11        (5) Chicago-Naperville-Elgin: 36.
12        (6) Danville: 1.
13        (7) Davenport-Moline-Rock Island: 1.
14        (8) Decatur: 1.
15        (9) Kankakee: 1.
16        (10) Peoria: 2.
17        (11) Rockford: 1.
18        (12) St. Louis: 3.
19        (13) Springfield: 1.
20        (14) Northwest Illinois nonmetropolitan: 1.
21        (15) West Central Illinois nonmetropolitan: 1.
22        (16) East Central Illinois nonmetropolitan: 1.
23        (17) South Illinois nonmetropolitan: 1.
24    (a-5) Prior to issuing licenses under subsection (a), the
25Commission Department may adopt rules through emergency
26rulemaking in accordance with subsection (kk) of Section 5-45

 

 

HB5710- 120 -LRB102 26496 CPF 37026 b

1of the Illinois Administrative Procedure Act. The General
2Assembly finds that the adoption of rules to regulate cannabis
3use is deemed an emergency and necessary for the public
4interest, safety, and welfare.
5    (b) The Commission Department shall distribute the
6available licenses established under this Section subject to
7the following:
8        (1) The drawing by lot for all available licenses
9    established under this Section shall occur on the same day
10    when practicable.
11        (2) Within each BLS Region, the first Qualifying
12    Social Equity Justice Involved Applicant drawn will have
13    the first right to an available license. The second
14    Qualifying Social Equity Justice Involved Applicant drawn
15    will have the second right to an available license. The
16    same pattern will continue for each subsequent applicant
17    drawn.
18        (3) The process for distributing available licenses
19    under this Section shall be recorded by the Commission
20    Department in a format selected by the Commission
21    Department.
22        (4) A Dispensary Applicant is prohibited from becoming
23    a Qualifying Social Equity Justice Involved Applicant if a
24    principal officer resigns after the resulting final scores
25    for all scored applications pursuant to Sections 15-25 and
26    15-30 are released.

 

 

HB5710- 121 -LRB102 26496 CPF 37026 b

1        (5) No Qualifying Social Equity Justice Involved
2    Applicant may be awarded more than 2 Conditional Adult Use
3    Dispensing Organization Licenses at the conclusion of a
4    lottery conducted under this Section.
5        (6) No individual may be listed as a principal officer
6    of more than 2 Conditional Adult Use Dispensing
7    Organization Licenses awarded under this Section.
8        (7) If, upon being selected for an available license
9    established under this Section, a Qualifying Social Equity
10    Justice Involved Applicant exceeds the limits under
11    paragraph (5) or (6), the Qualifying Social Equity Justice
12    Involved Applicant must choose which license to abandon
13    and notify the Commission Department in writing within 5
14    business days on forms prescribed by the Commission
15    Department. If the Qualifying Social Equity Justice
16    Involved Applicant does not notify the Commission
17    Department as required, the Commission Department shall
18    refuse to issue the Qualifying Social Equity Justice
19    Involved Applicant all available licenses established
20    under this Section obtained by lot in all BLS Regions.
21        (8) If, upon being selected for an available license
22    established under this Section, a Qualifying Social Equity
23    Justice Involved Applicant has a principal officer who is
24    a principal officer in more than 10 Early Approval Adult
25    Use Dispensing Organization Licenses, Conditional Adult
26    Use Dispensing Organization Licenses, Adult Use Dispensing

 

 

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1    Organization Licenses, or any combination thereof, the
2    licensees and the Qualifying Social Equity Justice
3    Involved Applicant listing that principal officer must
4    choose which license to abandon pursuant to subsection (d)
5    of Section 15-36 and notify the Commission Department in
6    writing within 5 business days on forms prescribed by the
7    Commission Department. If the Dispensary Applicant or
8    licensees do not notify the Commission Department as
9    required, the Commission Department shall refuse to issue
10    the Qualifying Social Equity Justice Involved Applicant
11    all available licenses established under this Section
12    obtained by lot in all BLS Regions.
13        (9) All available licenses that have been abandoned
14    under paragraph (7) or (8) shall be distributed to the
15    next Qualifying Social Equity Justice Involved Applicant
16    drawn by lot.
17    Any and all rights conferred or obtained under this
18subsection shall be limited to the provisions of this
19subsection.
20    (c) An applicant who receives a Conditional Adult Use
21Dispensing Organization License under this Section has 180
22days from the date of the award to identify a physical location
23for the dispensing organization's retail storefront. The
24applicant shall provide evidence that the location is not
25within 1,500 feet of an existing dispensing organization,
26unless the applicant is a Social Equity Applicant or Social

 

 

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1Equity Justice Involved Applicant located or seeking to locate
2within 1,500 feet of a dispensing organization licensed under
3Section 15-15 or Section 15-20. If an applicant is unable to
4find a suitable physical address in the opinion of the
5Commission Department within 180 days from the issuance of the
6Conditional Adult Use Dispensing Organization License, the
7Commission Department may extend the period for finding a
8physical address another 180 days if the Conditional Adult Use
9Dispensing Organization License holder demonstrates a concrete
10attempt to secure a location and a hardship. If the Commission
11Department denies the extension or the Conditional Adult Use
12Dispensing Organization License holder is unable to find a
13location or become operational within 360 days of being
14awarded a Conditional Adult Use Dispensing Organization
15License under this Section, the Commission Department shall
16rescind the Conditional Adult Use Dispensing Organization
17License and award it pursuant to subsection (b) and notify the
18new awardee at the email address provided in the awardee's
19application, provided the applicant receiving the Conditional
20Adult Use Dispensing Organization License: (i) confirms a
21continued interest in operating a dispensing organization;
22(ii) can provide evidence that the applicant continues to meet
23all requirements for holding a Conditional Adult Use
24Dispensing Organization License set forth in this Act; and
25(iii) has not otherwise become ineligible to be awarded a
26Conditional Adult Use Dispensing Organization License. If the

 

 

HB5710- 124 -LRB102 26496 CPF 37026 b

1new awardee is unable to accept the Conditional Adult Use
2Dispensing Organization License, the Commission Department
3shall award the Conditional Adult Use Dispensing Organization
4License pursuant to subsection (b). The new awardee shall be
5subject to the same required deadlines as provided in this
6subsection.
7    (d) If, within 180 days of being awarded a Conditional
8Adult Use Dispensing Organization License, a dispensing
9organization is unable to find a location within the BLS
10Region in which it was awarded a Conditional Adult Use
11Dispensing Organization License under this Section because no
12jurisdiction within the BLS Region allows for the operation of
13an Adult Use Dispensing Organization, the Commission
14Department may authorize the Conditional Adult Use Dispensing
15Organization License holder to transfer its Conditional Adult
16Use Dispensing Organization License to a BLS Region specified
17by the Commission Department.
18    (e) A dispensing organization that is awarded a
19Conditional Adult Use Dispensing Organization License under
20this Section shall not purchase, possess, sell, or dispense
21cannabis or cannabis-infused products until the dispensing
22organization has received an Adult Use Dispensing Organization
23License issued by the Commission Department pursuant to
24Section 15-36.
25    (f) The Commission Department shall conduct a background
26check of the prospective dispensing organization agents in

 

 

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1order to carry out this Article. The Illinois State Police
2shall charge the applicant a fee for conducting the criminal
3history record check, which shall be deposited into the State
4Police Services Fund and shall not exceed the actual cost of
5the record check. Each person applying as a dispensing
6organization agent shall submit a full set of fingerprints to
7the Illinois State Police for the purpose of obtaining a State
8and federal criminal records check. These fingerprints shall
9be checked against the fingerprint records now and hereafter,
10to the extent allowed by law, filed with the Illinois State
11Police and the Federal Bureau of Investigation criminal
12history records databases. The Illinois State Police shall
13furnish, following positive identification, all Illinois
14conviction information to the Commission Department.
15    (g) The Commission Department may verify information
16contained in each application and accompanying documentation
17to assess the applicant's veracity and fitness to operate a
18dispensing organization.
19    (h) The Commission Department may, in its discretion,
20refuse to issue an authorization to an applicant who meets any
21of the following criteria:
22        (1) An applicant who is unqualified to perform the
23    duties required of the applicant.
24        (2) An applicant who fails to disclose or states
25    falsely any information called for in the application.
26        (3) An applicant who has been found guilty of a

 

 

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1    violation of this Act, who has had any disciplinary order
2    entered against the applicant by the Commission
3    Department, who has entered into a disciplinary or
4    nondisciplinary agreement with the Commission Department,
5    whose medical cannabis dispensing organization, medical
6    cannabis cultivation organization, Early Approval Adult
7    Use Dispensing Organization License, Early Approval Adult
8    Use Dispensing Organization License at a secondary site,
9    Early Approval Cultivation Center License, Conditional
10    Adult Use Dispensing Organization License, or Adult Use
11    Dispensing Organization License was suspended, restricted,
12    revoked, or denied for just cause, or whose cannabis
13    business establishment license was suspended, restricted,
14    revoked, or denied in any other state.
15        (4) An applicant who has engaged in a pattern or
16    practice of unfair or illegal practices, methods, or
17    activities in the conduct of owning a cannabis business
18    establishment or other business.
19    (i) The Commission Department shall deny the license if
20any principal officer, board member, or person having a
21financial or voting interest of 5% or greater in the licensee
22is delinquent in filing any required tax return or paying any
23amount owed to the State of Illinois.
24    (j) The Commission Department shall verify an applicant's
25compliance with the requirements of this Article and rules
26adopted under this Article before issuing a Conditional Adult

 

 

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1Use Dispensing Organization License.
2    (k) If an applicant is awarded a Conditional Adult Use
3Dispensing Organization License under this Section, the
4information and plans provided in the application, including
5any plans submitted for bonus points, shall become a condition
6of the Conditional Adult Use Dispensing Organization License
7and any Adult Use Dispensing Organization License issued to
8the holder of the Conditional Adult Use Dispensing
9Organization License, except as otherwise provided by this Act
10or by rule. Dispensing organizations have a duty to disclose
11any material changes to the application. The Commission
12Department shall review all material changes disclosed by the
13dispensing organization and may reevaluate its prior decision
14regarding the awarding of a Conditional Adult Use Dispensing
15Organization License, including, but not limited to,
16suspending or permanently revoking a Conditional Adult Use
17Dispensing Organization License. Failure to comply with the
18conditions or requirements in the application may subject the
19dispensing organization to discipline up to and including
20suspension or permanent revocation of its authorization or
21Conditional Adult Use Dispensing Organization License by the
22Commission Department.
23    (l) If an applicant has not begun operating as a
24dispensing organization within one year after the issuance of
25the Conditional Adult Use Dispensing Organization License
26under this Section, the Commission Department may permanently

 

 

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1revoke the Conditional Adult Use Dispensing Organization
2License and award it to the next highest scoring applicant in
3the BLS Region if a suitable applicant indicates a continued
4interest in the Conditional Adult Use Dispensing Organization
5License or may begin a new selection process to award a
6Conditional Adult Use Dispensing Organization License.
7(Source: P.A. 102-98, eff. 7-15-21.)
 
8    (410 ILCS 705/15-35.20)
9    Sec. 15-35.20. Conditional Adult Use Dispensing
10Organization Licenses on or after January 1, 2022.
11    (a) In addition to any of the licenses issued under
12Section 15-15, Section 15-20, Section 15-25, Section 15-35, or
13Section 15-35.10, by January 1, 2022, the Commission
14Department may publish an application to issue additional
15Conditional Adult Use Dispensing Organization Licenses, and
16the Department shall collaborate with the Commission to
17complete the issuance of licenses under this Section, pursuant
18to the application process adopted under this Section. The
19Commission and the Department may adopt rules to issue any
20Conditional Adult Use Dispensing Organization Licenses under
21this Section. Such rules may:
22        (1) Modify or change the BLS Regions as they apply to
23    this Article or modify or raise the number of Adult
24    Conditional Use Dispensing Organization Licenses assigned
25    to each BLS Region based on the following factors:

 

 

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1            (A) Purchaser wait times.
2            (B) Travel time to the nearest dispensary for
3        potential purchasers.
4            (C) Percentage of cannabis sales occurring in
5        Illinois not in the regulated market using data from
6        the Substance Abuse and Mental Health Services
7        Administration, National Survey on Drug Use and
8        Health, Illinois Behavioral Risk Factor Surveillance
9        System, and tourism data from the Illinois Office of
10        Tourism to ascertain total cannabis consumption in
11        Illinois compared to the amount of sales in licensed
12        dispensing organizations.
13            (D) Whether there is an adequate supply of
14        cannabis and cannabis-infused products to serve
15        registered medical cannabis patients.
16            (E) Population increases or shifts.
17            (F) Density of dispensing organizations in a
18        region.
19            (G) The Commission's Department's capacity to
20        appropriately regulate additional licenses.
21            (H) The findings and recommendations from the
22        disparity and availability study commissioned by the
23        Illinois Cannabis Regulation Oversight Officer in
24        subsection (e) of Section 5-45 to reduce or eliminate
25        any identified barriers to entry in the cannabis
26        industry.

 

 

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1            (I) Any other criteria the Commission Department
2        deems relevant.
3        (2) Modify or change the licensing application process
4    to reduce or eliminate the barriers identified in the
5    disparity and availability study commissioned by the
6    Illinois Cannabis Regulation Oversight Officer and make
7    modifications to remedy evidence of discrimination.
8    (b) At no time shall the Commission Department issue more
9than 500 Adult Use Dispensing Organization Licenses.
10    (c) The Commission Department shall issue at least 50
11additional Conditional Adult Use Dispensing Organization
12Licenses on or before December 21, 2022.
13(Source: P.A. 102-98, eff. 7-15-21.)
 
14    (410 ILCS 705/15-55)
15    Sec. 15-55. Financial responsibility. Evidence of
16financial responsibility is a requirement for the issuance,
17maintenance, or reactivation of a license under this Article.
18Evidence of financial responsibility shall be used to
19guarantee that the dispensing organization timely and
20successfully completes dispensary construction, operates in a
21manner that provides an uninterrupted supply of cannabis,
22faithfully pays registration renewal fees, keeps accurate
23books and records, makes regularly required reports, complies
24with State tax requirements, and conducts the dispensing
25organization in conformity with this Act and rules. Evidence

 

 

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1of financial responsibility shall be provided by one of the
2following:
3        (1) Establishing and maintaining an escrow or surety
4    account in a financial institution in the amount of
5    $50,000, with escrow terms, approved by the Commission
6    Department, that it shall be payable to the Commission
7    Department in the event of circumstances outlined in this
8    Act and rules.
9            (A) A financial institution may not return money
10        in an escrow or surety account to the dispensing
11        organization that established the account or a
12        representative of the organization unless the
13        organization or representative presents a statement
14        issued by the Commission Department indicating that
15        the account may be released.
16            (B) The escrow or surety account shall not be
17        canceled on less than 30 days' notice in writing to the
18        Commission Department, unless otherwise approved by
19        the Commission Department. If an escrow or surety
20        account is canceled and the registrant fails to secure
21        a new account with the required amount on or before the
22        effective date of cancellation, the registrant's
23        registration may be permanently revoked. The total and
24        aggregate liability of the surety on the bond is
25        limited to the amount specified in the escrow or
26        surety account.

 

 

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1        (2) Providing a surety bond in the amount of $50,000,
2    naming the dispensing organization as principal of the
3    bond, with terms, approved by the Commission Department,
4    that the bond defaults to the Commission Department in the
5    event of circumstances outlined in this Act and rules.
6    Bond terms shall include:
7            (A) The business name and registration number on
8        the bond must correspond exactly with the business
9        name and registration number in the Commission's
10        Department's records.
11            (B) The bond must be written on a form approved by
12        the Commission Department.
13            (C) A copy of the bond must be received by the
14        Commission Department within 90 days after the
15        effective date.
16            (D) The bond shall not be canceled by a surety on
17        less than 30 days' notice in writing to the Commission
18        Department. If a bond is canceled and the registrant
19        fails to file a new bond with the Commission
20        Department in the required amount on or before the
21        effective date of cancellation, the registrant's
22        registration may be permanently revoked. The total and
23        aggregate liability of the surety on the bond is
24        limited to the amount specified in the bond.
25(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 

 

 

HB5710- 133 -LRB102 26496 CPF 37026 b

1    (410 ILCS 705/15-75)
2    Sec. 15-75. Inventory control system.    (a) A dispensing
3organization agent-in-charge shall have primary oversight of
4the dispensing organization's cannabis inventory verification
5system, and its point-of-sale system. The inventory
6point-of-sale system shall be real-time, web-based, and
7accessible by the Commission Department at any time. The
8point-of-sale system shall track, at a minimum the date of
9sale, amount, price, and currency.
10    (b) A dispensing organization shall establish an account
11with the State's verification system that documents:
12        (1) Each sales transaction at the time of sale and
13    each day's beginning inventory, acquisitions, sales,
14    disposal, and ending inventory.
15        (2) Acquisition of cannabis and cannabis-infused
16    products from a licensed adult use cultivation center,
17    craft grower, infuser, or transporter, including:
18            (i) A description of the products, including the
19        quantity, strain, variety, and batch number of each
20        product received;
21            (ii) The name and registry identification number
22        of the licensed adult use cultivation center, craft
23        grower, or infuser providing the cannabis and
24        cannabis-infused products;
25            (iii) The name and registry identification number
26        of the licensed adult use cultivation center, craft

 

 

HB5710- 134 -LRB102 26496 CPF 37026 b

1        grower, infuser, or transporting agent delivering the
2        cannabis;
3            (iv) The name and registry identification number
4        of the dispensing organization agent receiving the
5        cannabis; and
6            (v) The date of acquisition.
7        (3) The disposal of cannabis, including:
8            (i) A description of the products, including the
9        quantity, strain, variety, batch number, and reason
10        for the cannabis being disposed;
11            (ii) The method of disposal; and
12            (iii) The date and time of disposal.
13    (c) Upon cannabis delivery, a dispensing organization
14shall confirm the product's name, strain name, weight, and
15identification number on the manifest matches the information
16on the cannabis product label and package. The product name
17listed and the weight listed in the State's verification
18system shall match the product packaging.
19    (d) The agent-in-charge shall conduct daily inventory
20reconciliation documenting and balancing cannabis inventory by
21confirming the State's verification system matches the
22dispensing organization's point-of-sale system and the amount
23of physical product at the dispensary.
24        (1) A dispensing organization must receive Commission
25    Department approval before completing an inventory
26    adjustment. It shall provide a detailed reason for the

 

 

HB5710- 135 -LRB102 26496 CPF 37026 b

1    adjustment. Inventory adjustment documentation shall be
2    kept at the dispensary for 2 years from the date
3    performed.
4        (2) If the dispensing organization identifies an
5    imbalance in the amount of cannabis after the daily
6    inventory reconciliation due to mistake, the dispensing
7    organization shall determine how the imbalance occurred
8    and immediately upon discovery take and document
9    corrective action. If the dispensing organization cannot
10    identify the reason for the mistake within 2 calendar days
11    after first discovery, it shall inform the Commission
12    Department immediately in writing of the imbalance and the
13    corrective action taken to date. The dispensing
14    organization shall work diligently to determine the reason
15    for the mistake.
16        (3) If the dispensing organization identifies an
17    imbalance in the amount of cannabis after the daily
18    inventory reconciliation or through other means due to
19    theft, criminal activity, or suspected criminal activity,
20    the dispensing organization shall immediately determine
21    how the reduction occurred and take and document
22    corrective action. Within 24 hours after the first
23    discovery of the reduction due to theft, criminal
24    activity, or suspected criminal activity, the dispensing
25    organization shall inform the Commission Department and
26    the Illinois State Police in writing.

 

 

HB5710- 136 -LRB102 26496 CPF 37026 b

1        (4) The dispensing organization shall file an annual
2    compilation report with the Commission Department,
3    including a financial statement that shall include, but
4    not be limited to, an income statement, balance sheet,
5    profit and loss statement, statement of cash flow,
6    wholesale cost and sales, and any other documentation
7    requested by the Commission Department in writing. The
8    financial statement shall include any other information
9    the Commission Department deems necessary in order to
10    effectively administer this Act and all rules, orders, and
11    final decisions promulgated under this Act. Statements
12    required by this Section shall be filed with the
13    Commission Department within 60 days after the end of the
14    calendar year. The compilation report shall include a
15    letter authored by a licensed certified public accountant
16    that it has been reviewed and is accurate based on the
17    information provided. The dispensing organization,
18    financial statement, and accompanying documents are not
19    required to be audited unless specifically requested by
20    the Commission Department.
21    (e) A dispensing organization shall:
22        (1) Maintain the documentation required in this
23    Section in a secure locked location at the dispensing
24    organization for 5 years from the date on the document;
25        (2) Provide any documentation required to be
26    maintained in this Section to the Commission Department

 

 

HB5710- 137 -LRB102 26496 CPF 37026 b

1    for review upon request; and
2        (3) If maintaining a bank account, retain for a period
3    of 5 years a record of each deposit or withdrawal from the
4    account.
5    (f) If a dispensing organization chooses to have a return
6policy for cannabis and cannabis products, the dispensing
7organization shall seek prior approval from the Commission
8Department.
9    (g) The Commission may change the storage requirements for
10dispensing cannabis by rule.
11(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
12102-538, eff. 8-20-21.)
 
13    (410 ILCS 705/15-80)
14    Sec. 15-80. Storage requirements.     (a) Authorized
15on-premises storage. A dispensing organization must store
16inventory on its premises. All inventory stored on the
17premises must be secured in a restricted access area and
18tracked consistently with the inventory tracking rules.
19    (b) A dispensary shall be of suitable size and
20construction to facilitate cleaning, maintenance, and proper
21operations.
22    (c) A dispensary shall maintain adequate lighting,
23ventilation, temperature, humidity control, and equipment.
24    (d) Containers storing cannabis that have been tampered
25with, damaged, or opened shall be labeled with the date opened

 

 

HB5710- 138 -LRB102 26496 CPF 37026 b

1and quarantined from other cannabis products in the vault
2until they are disposed.
3    (e) Cannabis that was tampered with, expired, or damaged
4shall not be stored at the premises for more than 7 calendar
5days.
6    (f) Cannabis samples shall be in a sealed container.
7Samples shall be maintained in the restricted access area.
8    (g) The dispensary storage areas shall be maintained in
9accordance with the security requirements in this Act and
10rules.
11    (h) Cannabis must be stored at appropriate temperatures
12and under appropriate conditions to help ensure that its
13packaging, strength, quality, and purity are not adversely
14affected.
15    (i) The Commission may change the storage requirements for
16dispensing cannabis by rule.
17(Source: P.A. 101-27, eff. 6-25-19.)
 
18    (410 ILCS 705/15-85)
19    Sec. 15-85. Dispensing cannabis.     (a) Before a
20dispensing organization agent dispenses cannabis to a
21purchaser, the agent shall:
22        (1) Verify the age of the purchaser by checking a
23    government-issued identification card by use of an
24    electronic reader or electronic scanning device to scan a
25    purchaser's government-issued identification, if

 

 

HB5710- 139 -LRB102 26496 CPF 37026 b

1    applicable, to determine the purchaser's age and the
2    validity of the identification;
3        (2) Verify the validity of the government-issued
4    identification card by use of an electronic reader or
5    electronic scanning device to scan a purchaser's
6    government-issued identification, if applicable, to
7    determine the purchaser's age and the validity of the
8    identification;
9        (3) Offer any appropriate purchaser education or
10    support materials;
11        (4) Enter the following information into the State's
12    cannabis electronic verification system:
13            (i) The dispensing organization agent's
14        identification number, or if the agent's card
15        application is pending the Commission's Department's
16        approval, a temporary and unique identifier until the
17        agent's card application is approved or denied by the
18        Commission Department;
19            (ii) The dispensing organization's identification
20        number;
21            (iii) The amount, type (including strain, if
22        applicable) of cannabis or cannabis-infused product
23        dispensed;
24            (iv) The date and time the cannabis was dispensed.
25    (b) A dispensing organization shall refuse to sell
26cannabis or cannabis-infused products to any person unless the

 

 

HB5710- 140 -LRB102 26496 CPF 37026 b

1person produces a valid identification showing that the person
2is 21 years of age or older. A medical cannabis dispensing
3organization may sell cannabis or cannabis-infused products to
4a person who is under 21 years of age if the sale complies with
5the provisions of the Compassionate Use of Medical Cannabis
6Program Act and rules.
7    (c) For the purposes of this Section, valid identification
8must:
9        (1) Be valid and unexpired;
10        (2) Contain a photograph and the date of birth of the
11    person.
12    (d) The Commission may change the requirements for
13dispensing cannabis by rule.
14(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
15102-98, eff. 7-15-21.)
 
16    (410 ILCS 705/15-90)
17    Sec. 15-90. Destruction and disposal of cannabis.     (a)
18Cannabis and cannabis-infused products must be destroyed by
19rendering them unusable using methods approved by the
20Commission Department that comply with this Act and rules.
21    (b) Cannabis waste rendered unusable must be promptly
22disposed according to this Act and rules. Disposal of the
23cannabis waste rendered unusable may be delivered to a
24permitted solid waste facility for final disposition.
25Acceptable permitted solid waste facilities include, but are

 

 

HB5710- 141 -LRB102 26496 CPF 37026 b

1not limited to:
2        (1) Compostable mixed waste: Compost, anaerobic
3    digester, or other facility with approval of the
4    jurisdictional health department.
5        (2) Noncompostable mixed waste: Landfill, incinerator,
6    or other facility with approval of the jurisdictional
7    health department.
8    (c) All waste and unusable product shall be weighed,
9recorded, and entered into the inventory system before
10rendering it unusable. All waste and unusable cannabis
11concentrates and cannabis-infused products shall be recorded
12and entered into the inventory system before rendering it
13unusable. Verification of this event shall be performed by an
14agent-in-charge and conducted in an area with video
15surveillance.
16    (d) Electronic documentation of destruction and disposal
17shall be maintained for a period of at least 5 years.
18    (e) The Commission may change the requirements for the
19destruction and disposal of cannabis by rule.
20(Source: P.A. 101-27, eff. 6-25-19.)
 
21    (410 ILCS 705/15-100)
22    Sec. 15-100. Security.     (a) A dispensing organization
23shall implement security measures to deter and prevent entry
24into and theft of cannabis or currency.
25    (b) A dispensing organization shall submit any changes to

 

 

HB5710- 142 -LRB102 26496 CPF 37026 b

1the floor plan or security plan to the Commission Department
2for pre-approval. All cannabis shall be maintained and stored
3in a restricted access area during construction.
4    (c) The dispensing organization shall implement security
5measures to protect the premises, purchasers, and dispensing
6organization agents including, but not limited to the
7following:
8        (1) Establish a locked door or barrier between the
9    facility's entrance and the limited access area;
10        (2) Prevent individuals from remaining on the premises
11    if they are not engaging in activity permitted by this Act
12    or rules;
13        (3) Develop a policy that addresses the maximum
14    capacity and purchaser flow in the waiting rooms and
15    limited access areas;
16        (4) Dispose of cannabis in accordance with this Act
17    and rules;
18        (5) During hours of operation, store and dispense all
19    cannabis from the restricted access area. During
20    operational hours, cannabis shall be stored in an enclosed
21    locked room or cabinet and accessible only to specifically
22    authorized dispensing organization agents;
23        (6) When the dispensary is closed, store all cannabis
24    and currency in a reinforced vault room in the restricted
25    access area and in a manner as to prevent diversion,
26    theft, or loss;

 

 

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1        (7) Keep the reinforced vault room and any other
2    equipment or cannabis storage areas securely locked and
3    protected from unauthorized entry;
4        (8) Keep an electronic daily log of dispensing
5    organization agents with access to the reinforced vault
6    room and knowledge of the access code or combination;
7        (9) Keep all locks and security equipment in good
8    working order;
9        (10) Maintain an operational security and alarm system
10    at all times;
11        (11) Prohibit keys, if applicable, from being left in
12    the locks, or stored or placed in a location accessible to
13    persons other than specifically authorized personnel;
14        (12) Prohibit accessibility of security measures,
15    including combination numbers, passwords, or electronic or
16    biometric security systems to persons other than
17    specifically authorized dispensing organization agents;
18        (13) Ensure that the dispensary interior and exterior
19    premises are sufficiently lit to facilitate surveillance;
20        (14) Ensure that trees, bushes, and other foliage
21    outside of the dispensary premises do not allow for a
22    person or persons to conceal themselves from sight;
23        (15) Develop emergency policies and procedures for
24    securing all product and currency following any instance
25    of diversion, theft, or loss of cannabis, and conduct an
26    assessment to determine whether additional safeguards are

 

 

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1    necessary; and
2        (16) Develop sufficient additional safeguards in
3    response to any special security concerns, or as required
4    by the Commission Department.
5    (d) The Commission Department may request or approve
6alternative security provisions that it determines are an
7adequate substitute for a security requirement specified in
8this Article. Any additional protections may be considered by
9the Commission Department in evaluating overall security
10measures.
11    (e) A dispensing organization may share premises with a
12craft grower or an infuser organization, or both, provided
13each licensee stores currency and cannabis or cannabis-infused
14products in a separate secured vault to which the other
15licensee does not have access or all licensees sharing a vault
16share more than 50% of the same ownership.
17    (f) A dispensing organization shall provide additional
18security as needed and in a manner appropriate for the
19community where it operates.
20    (g) Restricted access areas.
21        (1) All restricted access areas must be identified by
22    the posting of a sign that is a minimum of 12 inches by 12
23    inches and that states "Do Not Enter - Restricted Access
24    Area - Authorized Personnel Only" in lettering no smaller
25    than one inch in height.
26        (2) All restricted access areas shall be clearly

 

 

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1    described in the floor plan of the premises, in the form
2    and manner determined by the Commission Department,
3    reflecting walls, partitions, counters, and all areas of
4    entry and exit. The floor plan shall show all storage,
5    disposal, and retail sales areas.
6        (3) All restricted access areas must be secure, with
7    locking devices that prevent access from the limited
8    access areas.
9    (h) Security and alarm.
10        (1) A dispensing organization shall have an adequate
11    security plan and security system to prevent and detect
12    diversion, theft, or loss of cannabis, currency, or
13    unauthorized intrusion using commercial grade equipment
14    installed by an Illinois licensed private alarm contractor
15    or private alarm contractor agency that shall, at a
16    minimum, include:
17            (i) A perimeter alarm on all entry points and
18        glass break protection on perimeter windows;
19            (ii) Security shatterproof tinted film on exterior
20        windows;
21            (iii) A failure notification system that provides
22        an audible, text, or visual notification of any
23        failure in the surveillance system, including, but not
24        limited to, panic buttons, alarms, and video
25        monitoring system. The failure notification system
26        shall provide an alert to designated dispensing

 

 

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1        organization agents within 5 minutes after the
2        failure, either by telephone or text message;
3            (iv) A duress alarm, panic button, and alarm, or
4        holdup alarm and after-hours intrusion detection alarm
5        that by design and purpose will directly or indirectly
6        notify, by the most efficient means, the Public Safety
7        Answering Point for the law enforcement agency having
8        primary jurisdiction;
9            (v) Security equipment to deter and prevent
10        unauthorized entrance into the dispensary, including
11        electronic door locks on the limited and restricted
12        access areas that include devices or a series of
13        devices to detect unauthorized intrusion that may
14        include a signal system interconnected with a radio
15        frequency method, cellular, private radio signals or
16        other mechanical or electronic device.
17        (2) All security system equipment and recordings shall
18    be maintained in good working order, in a secure location
19    so as to prevent theft, loss, destruction, or alterations.
20        (3) Access to surveillance monitoring recording
21equipment shall be limited to persons who are essential to
22surveillance operations, law enforcement authorities acting
23within their jurisdiction, security system service personnel,
24and the Commission Department. A current list of authorized
25dispensing organization agents and service personnel    
26that have access to the surveillance equipment must be

 

 

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1    available to the Commission Department upon request.
2        (4) All security equipment shall be inspected and
3    tested at regular intervals, not to exceed one month from
4    the previous inspection, and tested to ensure the systems
5    remain functional.
6        (5) The security system shall provide protection
7    against theft and diversion that is facilitated or hidden
8    by tampering with computers or electronic records.
9        (6) The dispensary shall ensure all access doors are
10    not solely controlled by an electronic access panel to
11    ensure that locks are not released during a power outage.
12    (i) To monitor the dispensary, the dispensing organization
13shall incorporate continuous electronic video monitoring
14including the following:
15        (1) All monitors must be 19 inches or greater;
16        (2) Unobstructed video surveillance of all enclosed
17    dispensary areas, unless prohibited by law, including all
18    points of entry and exit that shall be appropriate for the
19    normal lighting conditions of the area under surveillance.
20    The cameras shall be directed so all areas are captured,
21    including, but not limited to, safes, vaults, sales areas,
22    and areas where cannabis is stored, handled, dispensed, or
23    destroyed. Cameras shall be angled to allow for facial
24    recognition, the capture of clear and certain
25    identification of any person entering or exiting the
26    dispensary area and in lighting sufficient during all

 

 

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1    times of night or day;
2        (3) Unobstructed video surveillance of outside areas,
3    the storefront, and the parking lot, that shall be
4    appropriate for the normal lighting conditions of the area
5    under surveillance. Cameras shall be angled so as to allow
6    for the capture of facial recognition, clear and certain
7    identification of any person entering or exiting the
8    dispensary and the immediate surrounding area, and license
9    plates of vehicles in the parking lot;
10        (4) 24-hour recordings from all video cameras
11    available for immediate viewing by the Commission
12    Department upon request. Recordings shall not be destroyed
13    or altered and shall be retained for at least 90 days.
14    Recordings shall be retained as long as necessary if the
15    dispensing organization is aware of the loss or theft of
16    cannabis or a pending criminal, civil, or administrative
17    investigation or legal proceeding for which the recording
18    may contain relevant information;
19        (5) The ability to immediately produce a clear, color
20    still photo from the surveillance video, either live or
21    recorded;
22        (6) A date and time stamp embedded on all video
23    surveillance recordings. The date and time shall be
24    synchronized and set correctly and shall not significantly
25    obscure the picture;
26        (7) The ability to remain operational during a power

 

 

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1    outage and ensure all access doors are not solely
2    controlled by an electronic access panel to ensure that
3    locks are not released during a power outage;
4        (8) All video surveillance equipment shall allow for
5    the exporting of still images in an industry standard
6    image format, including .jpg, .bmp, and .gif. Exported
7    video shall have the ability to be archived in a
8    proprietary format that ensures authentication of the
9    video and guarantees that no alteration of the recorded
10    image has taken place. Exported video shall also have the
11    ability to be saved in an industry standard file format
12    that can be played on a standard computer operating
13    system. All recordings shall be erased or destroyed before
14    disposal;
15        (9) The video surveillance system shall be operational
16    during a power outage with a 4-hour minimum battery
17    backup;
18        (10) A video camera or cameras recording at each
19    point-of-sale location allowing for the identification of
20    the dispensing organization agent distributing the
21    cannabis and any purchaser. The camera or cameras shall
22    capture the sale, the individuals and the computer
23    monitors used for the sale;
24        (11) A failure notification system that provides an
25    audible and visual notification of any failure in the
26    electronic video monitoring system; and

 

 

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1        (12) All electronic video surveillance monitoring must
2    record at least the equivalent of 8 frames per second and
3    be available as recordings to the Commission Department
4    and the Illinois State Police 24 hours a day via a secure
5    web-based portal with reverse functionality.
6    (j) The requirements contained in this Act are minimum
7requirements for operating a dispensing organization. The
8Commission Department may change existing or establish
9additional requirements by rule.
10(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
11102-538, eff. 8-20-21.)
 
12    (410 ILCS 705/15-110)
13    Sec. 15-110. Recordkeeping.
14    (a) Dispensing organization records must be maintained
15electronically for 3 years and be available for inspection by
16the Commission Department upon request. Required written
17records include, but are not limited to, the following:
18        (1) Operating procedures;
19        (2) Inventory records, policies, and procedures;
20        (3) Security records;
21        (4) Audit records;
22        (5) Staff training plans and completion documentation;
23        (6) Staffing plan; and
24        (7) Business records, including but not limited to:
25            (i) Assets and liabilities;

 

 

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1            (ii) Monetary transactions;
2            (iii) Written or electronic accounts, including
3        bank statements, journals, ledgers, and supporting
4        documents, agreements, checks, invoices, receipts, and
5        vouchers; and
6            (iv) Any other financial accounts reasonably
7        related to the dispensary operations.
8    (b) Storage and transfer of records. If a dispensary
9closes due to insolvency, revocation, bankruptcy, or for any
10other reason, all records must be preserved at the expense of
11the dispensing organization for at least 3 years in a form and
12location in Illinois acceptable to the Commission Department.
13The dispensing organization shall keep the records longer if
14requested by the Commission Department. The dispensing
15organization shall notify the Commission Department of the
16location where the dispensary records are stored or
17transferred.
18    (c) The Commission may change the recordkeeping
19requirements by rule.
20(Source: P.A. 101-27, eff. 6-25-19.)
 
21    (410 ILCS 705/15-120)
22    Sec. 15-120. Closure of a dispensary.     (a) If a
23dispensing organization decides not to renew its license or
24decides to close its business, it shall promptly notify the
25Commission Department not less than 3 months before the

 

 

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1effective date of the closing date or as otherwise authorized
2by the Commission Department.
3    (b) The dispensing organization shall work with the
4Commission Department to develop a closure plan that
5addresses, at a minimum, the transfer of business records,
6transfer of cannabis products, and anything else the
7Commission Department finds necessary.
8    (c) The Commission may change the requirements for closure
9of a dispensary by rule.
10(Source: P.A. 101-27, eff. 6-25-19.)
 
11    (410 ILCS 705/15-125)
12    Sec. 15-125. Fees. After January 1, 2022, the Commission
13Department may by rule modify any fee established under this
14Article.
15(Source: P.A. 101-27, eff. 6-25-19.)
 
16    (410 ILCS 705/15-135)
17    Sec. 15-135. Investigations.     (a) Dispensing
18organizations are subject to random and unannounced dispensary
19inspections and cannabis testing by the Commission Department,
20the Illinois State Police, local law enforcement, or as
21provided by rule.
22    (b) The Commission Department and its authorized
23representatives may enter any place, including a vehicle, in
24which cannabis is held, stored, dispensed, sold, produced,

 

 

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1delivered, transported, manufactured, or disposed of and
2inspect, in a reasonable manner, the place and all pertinent
3equipment, containers and labeling, and all things including
4records, files, financial data, sales data, shipping data,
5pricing data, personnel data, research, papers, processes,
6controls, and facility, and inventory any stock of cannabis
7and obtain samples of any cannabis or cannabis-infused
8product, any labels or containers for cannabis, or
9paraphernalia.
10    (c) The Commission Department may conduct an investigation
11of an applicant, application, dispensing organization,
12principal officer, dispensary agent, third party vendor, or
13any other party associated with a dispensing organization for
14an alleged violation of this Act or rules or to determine
15qualifications to be granted a registration by the Commission
16Department.
17    (d) The Commission Department may require an applicant or
18holder of any license issued pursuant to this Article to
19produce documents, records, or any other material pertinent to
20the investigation of an application or alleged violations of
21this Act or rules. Failure to provide the required material
22may be grounds for denial or discipline.
23    (e) Every person charged with preparation, obtaining, or
24keeping records, logs, reports, or other documents in
25connection with this Act and rules and every person in charge,
26or having custody, of those documents shall, upon request by

 

 

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1the Commission Department, make the documents immediately
2available for inspection and copying by the Commission
3Department, the Commission's Department's authorized
4representative, or others authorized by law to review the
5documents.
6    The Commission may change the requirements for
7investigations by rule.
8(Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21;
9102-538, eff. 8-20-21; revised 10-12-21.)
 
10    (410 ILCS 705/15-140)
11    Sec. 15-140. Citations. The Commission Department may
12issue nondisciplinary citations for minor violations. Any such
13citation issued by the Commission Department may be
14accompanied by a fee. The fee shall not exceed $20,000 per
15violation. The citation shall be issued to the licensee and
16shall contain the licensee's name and address, the licensee's
17license number, a brief factual statement, the Sections of the
18law allegedly violated, and the fee, if any, imposed. The
19citation must clearly state that the licensee may choose, in
20lieu of accepting the citation, to request a hearing. If the
21licensee does not dispute the matter in the citation with the
22Commission Department within 30 days after the citation is
23served, then the citation shall become final and not subject
24to appeal. The penalty shall be a fee or other conditions as
25established by rule.

 

 

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1(Source: P.A. 101-27, eff. 6-25-19.)
 
2    (410 ILCS 705/15-145)
3    Sec. 15-145. Grounds for discipline.     (a) The
4Commission Department may deny issuance, refuse to renew or
5restore, or may reprimand, place on probation, suspend,
6revoke, or take other disciplinary or nondisciplinary action
7against any license or agent identification card or may impose
8a fine for any of the following:
9        (1) Material misstatement in furnishing information to
10    the Commission Department;
11        (2) Violations of this Act or rules;
12        (3) Obtaining an authorization or license by fraud or
13    misrepresentation;
14        (4) A pattern of conduct that demonstrates
15    incompetence or that the applicant has engaged in conduct
16    or actions that would constitute grounds for discipline
17    under this Act;
18        (5) Aiding or assisting another person in violating
19    any provision of this Act or rules;
20        (6) Failing to respond to a written request for
21    information by the Commission Department within 30 days;
22        (7) Engaging in unprofessional, dishonorable, or
23    unethical conduct of a character likely to deceive,
24    defraud, or harm the public;
25        (8) Adverse action by another United States

 

 

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1    jurisdiction or foreign nation;
2        (9) A finding by the Commission Department that the
3    licensee, after having his or her license placed on
4    suspended or probationary status, has violated the terms
5    of the suspension or probation;
6        (10) Conviction, entry of a plea of guilty, nolo
7    contendere, or the equivalent in a State or federal court
8    of a principal officer or agent-in-charge of a felony
9    offense in accordance with Sections 2105-131, 2105-135,
10    and 2105-205 of the Department of Professional Regulation
11    Law of the Civil Administrative Code of Illinois;
12        (11) Excessive use of or addiction to alcohol,
13    narcotics, stimulants, or any other chemical agent or
14    drug;
15        (12) A finding by the Commission Department of a
16    discrepancy in a Commission Department audit of cannabis;
17        (13) A finding by the Commission Department of a
18    discrepancy in a Commission Department audit of capital or
19    funds;
20        (14) A finding by the Commission Department of
21    acceptance of cannabis from a source other than an Adult
22    Use Cultivation Center, craft grower, infuser, or
23    transporting organization licensed by the Department of
24    Agriculture, or a dispensing organization licensed by the
25    Commission Department;
26        (15) An inability to operate using reasonable

 

 

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1    judgment, skill, or safety due to physical or mental
2    illness or other impairment or disability, including,
3    without limitation, deterioration through the aging
4    process or loss of motor skills or mental incompetence;
5        (16) Failing to report to the Commission Department
6    within the time frames established, or if not identified,
7    14 days, of any adverse action taken against the
8    dispensing organization or an agent by a licensing
9    jurisdiction in any state or any territory of the United
10    States or any foreign jurisdiction, any governmental
11    agency, any law enforcement agency or any court defined in
12    this Section;
13        (17) Any violation of the dispensing organization's
14    policies and procedures submitted to the Commission
15    Department annually as a condition for licensure;
16        (18) Failure to inform the Commission Department of
17    any change of address within 10 business days;
18        (19) Disclosing customer names, personal information,
19    or protected health information in violation of any State
20    or federal law;
21        (20) Operating a dispensary before obtaining a license
22    from the Commission Department;
23        (21) Performing duties authorized by this Act prior to
24    receiving a license to perform such duties;
25        (22) Dispensing cannabis when prohibited by this Act
26    or rules;

 

 

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1        (23) Any fact or condition that, if it had existed at
2    the time of the original application for the license,
3    would have warranted the denial of the license;
4        (24) Permitting a person without a valid agent
5    identification card to perform licensed activities under
6    this Act;
7        (25) Failure to assign an agent-in-charge as required
8    by this Article;
9        (26) Failure to provide the training required by
10    paragraph (3) of subsection (i) of Section 15-40 within
11    the provided timeframe;
12        (27) Personnel insufficient in number or unqualified
13    in training or experience to properly operate the
14    dispensary business;
15        (28) Any pattern of activity that causes a harmful
16    impact on the community; and
17        (29) Failing to prevent diversion, theft, or loss of
18    cannabis.
19    (b) All fines and fees imposed under this Section shall be
20paid within 60 days after the effective date of the order
21imposing the fine or as otherwise specified in the order.
22    (c) A circuit court order establishing that an
23agent-in-charge or principal officer holding an agent
24identification card is subject to involuntary admission as
25that term is defined in Section 1-119 or 1-119.1 of the Mental
26Health and Developmental Disabilities Code shall operate as a

 

 

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1suspension of that card.
2    (d) The Commission may change the requirements for grounds
3for discipline by rule.
4(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
5    (410 ILCS 705/15-150)
6    Sec. 15-150. Temporary suspension.
7    (a) The Commission Secretary of Financial and Professional
8Regulation may temporarily suspend a dispensing organization
9license or an agent registration without a hearing if the
10Commission Secretary finds that public safety or welfare
11requires emergency action. The Commission Secretary shall
12cause the temporary suspension by issuing a suspension notice
13in connection with the institution of proceedings for a
14hearing.
15    (b) If the Commission Secretary temporarily suspends a
16license or agent registration without a hearing, the licensee
17or agent is entitled to a hearing within 45 days after the
18suspension notice has been issued. The hearing shall be
19limited to the issues cited in the suspension notice, unless
20all parties agree otherwise.
21    (c) If the Commission Department does not hold a hearing
22with 45 days after the date the suspension notice was issued,
23then the suspended license or registration shall be
24automatically reinstated and the suspension vacated.
25    (d) The suspended licensee or agent may seek a continuance

 

 

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1of the hearing date, during which time the suspension remains
2in effect and the license or registration shall not be
3automatically reinstated.
4    (e) Subsequently discovered causes of action by the
5Commission Department after the issuance of the suspension
6notice may be filed as a separate notice of violation. The
7Commission Department is not precluded from filing a separate
8action against the suspended licensee or agent.
9    (f) The Commission may change the requirements for
10temporary suspension by rule.
11(Source: P.A. 101-27, eff. 6-25-19.)
 
12    (410 ILCS 705/15-155)
13    Sec. 15-155. Unlicensed practice; violation; civil
14penalty.     (a) In addition to any other penalty provided by
15law, any person who practices, offers to practice, attempts to
16practice, or holds oneself out to practice as a licensed
17dispensing organization owner, principal officer,
18agent-in-charge, or agent without being licensed under this
19Act shall, in addition to any other penalty provided by law,
20pay a civil penalty to the Commission Department of Financial
21and Professional Regulation in an amount not to exceed $10,000
22for each offense as determined by the Commission Department.
23The civil penalty shall be assessed by the Commission
24Department after a hearing is held in accordance with the
25provisions set forth in this Act regarding the provision of a

 

 

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1hearing for the discipline of a licensee.
2    (b) The Commission Department has the authority and power
3to investigate any and all unlicensed activity.
4    (c) The civil penalty shall be paid within 60 days after
5the effective date of the order imposing the civil penalty or
6in accordance with the order imposing the civil penalty. The
7order shall constitute a judgment and may be filed and
8execution had thereon in the same manner as any judgment from
9any court of this State.
10    (d) The Commission may change the requirements for
11temporary suspension by rule.
12(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
13    (410 ILCS 705/15-160)
14    Sec. 15-160. Notice; hearing.     (a) The Commission
15Department shall, before disciplining an applicant or
16licensee, at least 30 days before the date set for the hearing:
17(i) notify the accused in writing of the charges made and the
18time and place for the hearing on the charges; (ii) direct him
19or her to file a written answer to the charges under oath
20within 20 days after service; and (iii) inform the applicant
21or licensee that failure to answer will result in a default
22being entered against the applicant or licensee.
23    (b) At the time and place fixed in the notice, the hearing
24officer appointed by the Commission Secretary shall proceed to
25hear the charges, and the parties or their counsel shall be

 

 

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1accorded ample opportunity to present any pertinent
2statements, testimony, evidence, and arguments. The hearing
3officer may continue the hearing from time to time. In case the
4person, after receiving the notice, fails to file an answer,
5his or her license may, in the discretion of the Commission
6Secretary, having first received the recommendation of the
7hearing officer, be suspended, revoked, or placed on
8probationary status, or be subject to whatever disciplinary
9action the Commission Secretary considers proper, including a
10fine, without hearing, if that act or acts charged constitute
11sufficient grounds for that action under this Act.
12    (c) The written notice and any notice in the subsequent
13proceeding may be served by regular mail or email to the
14licensee's or applicant's address of record.
15    (d) The Commission may change the requirements for notice
16and hearing by rule.
17(Source: P.A. 101-27, eff. 6-25-19.)
 
18    (410 ILCS 705/15-165)
19    Sec. 15-165. Subpoenas; oaths.
20    (a) The Commission Department shall have the power to
21subpoena and bring before it any person and to take testimony
22either orally or by deposition, or both, with the same fees and
23mileage and in the same manner as prescribed by law in judicial
24proceedings in civil cases in courts in this State. The
25Commission Secretary or the hearing officer shall each have

 

 

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1the power to administer oaths to witnesses at any hearings
2that the Commission Department is authorized to conduct.
3    (b) The Commission may change the requirements for this
4Section by rule.
5(Source: P.A. 101-27, eff. 6-25-19.)
 
6    (410 ILCS 705/15-170)
7    Sec. 15-170. Hearing; motion for rehearing.     (a) The
8hearing officer shall hear evidence in support of the formal
9charges and evidence produced by the licensee. At the
10conclusion of the hearing, the hearing officer shall present
11to the Commission Secretary a written report of his or her
12findings of fact, conclusions of law, and recommendations.
13    (b) At the conclusion of the hearing, a copy of the hearing
14officer's report shall be served upon the applicant or
15licensee by the Commission Department, either personally or as
16provided in this Act for the service of a notice of hearing.
17Within 20 calendar days after service, the applicant or
18licensee may present to the Commission Department a motion in
19writing for rehearing, which shall specify the particular
20grounds for rehearing. The Commission Department may respond
21to the motion for rehearing within 20 calendar days after its
22service on the Commission Department. If no motion for
23rehearing is filed, then, upon the expiration of the time
24specified for filing such motion or upon denial of a motion for
25rehearing, the Commission Secretary may enter an order in

 

 

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1accordance with the recommendation of the hearing officer. If
2the applicant or licensee orders from the reporting service
3and pays for a transcript of the record within the time for
4filing a motion for rehearing, the 20-day period within which
5a motion may be filed shall commence upon the delivery of the
6transcript to the applicant or licensee.
7    (c) If the Commission Secretary disagrees in any regard
8with the report of the hearing officer, the Commission
9Secretary may issue an order contrary to the report.
10    (d) Whenever the Commission Secretary is not satisfied
11that substantial justice has been done, the Commission
12Secretary may order a rehearing by the same or another hearing
13officer.
14    (e) At any point in any investigation or disciplinary
15proceeding under in this Article, both parties may agree to a
16negotiated consent order. The consent order shall be final
17upon signature of the Commission Secretary.
18    (f) The Commission may change the requirements of this
19Section by rule.
20(Source: P.A. 101-27, eff. 6-25-19.)
 
21    (410 ILCS 705/15-175)
22    Sec. 15-175. Review under the Administrative Review Law.
23    (a) All final administrative decisions of the Commission
24Department hereunder shall be subject to judicial review under
25the provisions of the Administrative Review Law, and all

 

 

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1amendment and modifications thereof. The term "administrative
2decision" is defined as in Section 3-101 of the Code of Civil
3Procedure.
4    (b) Proceedings for judicial review shall be commenced in
5the circuit court of the county in which the party applying for
6review resides, but if the party is not a resident of Illinois,
7the venue shall be in Sangamon County.
8    (c) The Commission Department shall not be required to
9certify any record to the court, file any answer in court, or
10otherwise appear in any court in a judicial review proceeding,
11unless and until the Commission Department has received from
12the plaintiff payment of the costs of furnishing and
13certifying the record, which costs shall be determined by the
14Commission Department. Failure on the part of the plaintiff to
15file a receipt in court shall be grounds for dismissal of the
16action.
17(Source: P.A. 101-27, eff. 6-25-19.)
 
18    (410 ILCS 705/20-1)
19    Sec. 20-1. Definition. In this Article: ,
20    "Commission" means the Cannabis Equity and Oversight
21Commission.
22    "Department" means the Department of Agriculture.
23(Source: P.A. 101-27, eff. 6-25-19.)
 
24    (410 ILCS 705/20-5)

 

 

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1    Sec. 20-5. Issuance of licenses. On or after July 1, 2021,
2the Commission Department of Agriculture by rule may:
3        (1) Modify or change the number of cultivation center
4    licenses available, which shall at no time exceed 30
5    cultivation center licenses. In determining whether to
6    exercise the authority granted by this subsection, the
7    Commission Department of Agriculture must consider the
8    following factors:
9            (A) The percentage of cannabis sales occurring in
10        Illinois not in the regulated market using data from
11        the Substance Abuse and Mental Health Services
12        Administration, National Survey on Drug Use and
13        Health, Illinois Behavioral Risk Factor Surveillance
14        System, and tourism data from the Illinois Office of
15        Tourism to ascertain total cannabis consumption in
16        Illinois compared to the amount of sales in licensed
17        dispensing organizations;
18            (B) Whether there is an adequate supply of
19        cannabis and cannabis-infused products to serve
20        registered medical cannabis patients;
21            (C) Whether there is an adequate supply of
22        cannabis and cannabis-infused products to serve
23        purchasers;
24            (D) Whether there is an oversupply of cannabis in
25        Illinois leading to trafficking of cannabis to any
26        other state;

 

 

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1            (E) Population increases or shifts;
2            (F) Changes to federal law;
3            (G) Perceived security risks of increasing the
4        number or location of cultivation centers;
5            (H) The past security records of cultivation
6        centers;
7            (I) The Commission's Department of Agriculture's
8        capacity to appropriately regulate additional
9        licensees;
10            (J) The findings and recommendations from the
11        disparity and availability study commissioned by the
12        Illinois Cannabis Regulation Oversight Officer
13        referenced in subsection (e) of Section 5-45 or by the
14        Commission to reduce or eliminate any identified
15        barriers to entry in the cannabis industry; and
16            (K) Any other criteria the Commission Department
17        of Agriculture deems relevant.
18        (2) Modify or change the licensing application process
19    to reduce or eliminate the barriers identified in the
20    disparity and availability study commission by the
21    Illinois Cannabis Regulation Oversight Officer or by the
22    Commission and shall make modifications to remedy evidence
23    of discrimination.
24(Source: P.A. 101-27, eff. 6-25-19.)
 
25    (410 ILCS 705/20-15)

 

 

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1    Sec. 20-15. Conditional Adult Use Cultivation Center
2application.
3    (a) If the Commission Department of Agriculture makes
4available additional cultivation center licenses pursuant to
5Section 20-5, applicants for a Conditional Adult Use
6Cultivation Center License shall electronically submit the
7following in such form as the Commission Department of
8Agriculture may direct:
9        (1) the nonrefundable application fee set by rule by
10    the Commission Department of Agriculture, to be deposited
11    into the Cannabis Regulation Fund;
12        (2) the legal name of the cultivation center;
13        (3) the proposed physical address of the cultivation
14    center;
15        (4) the name, address, social security number, and
16    date of birth of each principal officer and board member
17    of the cultivation center; each principal officer and
18    board member shall be at least 21 years of age;
19        (5) the details of any administrative or judicial
20    proceeding in which any of the principal officers or board
21    members of the cultivation center (i) pled guilty, were
22    convicted, were fined, or had a registration or license
23    suspended or revoked, or (ii) managed or served on the
24    board of a business or non-profit organization that pled
25    guilty, was convicted, was fined, or had a registration or
26    license suspended or revoked;

 

 

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1        (6) proposed operating bylaws that include procedures
2    for the oversight of the cultivation center, including the
3    development and implementation of a plant monitoring
4    system, accurate recordkeeping, staffing plan, and
5    security plan approved by the Illinois State Police that
6    are in accordance with the rules issued by the Commission
7    Department of Agriculture under this Act. A physical
8    inventory shall be performed of all plants and cannabis on
9    a weekly basis by the cultivation center;
10        (7) verification from the Illinois State Police that
11    all background checks of the prospective principal
12    officers, board members, and agents of the cannabis
13    business establishment have been conducted;
14        (8) a copy of the current local zoning ordinance or
15    permit and verification that the proposed cultivation
16    center is in compliance with the local zoning rules and
17    distance limitations established by the local
18    jurisdiction;
19        (9) proposed employment practices, in which the
20    applicant must demonstrate a plan of action to inform,
21    hire, and educate minorities, women, veterans, and persons
22    with disabilities, engage in fair labor practices, and
23    provide worker protections;
24        (10) whether an applicant can demonstrate experience
25    in or business practices that promote economic empowerment
26    in Disproportionately Impacted Areas;

 

 

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1        (11) experience with the cultivation of agricultural
2    or horticultural products, operating an agriculturally
3    related business, or operating a horticultural business;
4        (12) a description of the enclosed, locked facility
5    where cannabis will be grown, harvested, manufactured,
6    processed, packaged, or otherwise prepared for
7    distribution to a dispensing organization;
8        (13) a survey of the enclosed, locked facility,
9    including the space used for cultivation;
10        (14) cultivation, processing, inventory, and packaging
11    plans;
12        (15) a description of the applicant's experience with
13    agricultural cultivation techniques and industry
14    standards;
15        (16) a list of any academic degrees, certifications,
16    or relevant experience of all prospective principal
17    officers, board members, and agents of the related
18    business;
19        (17) the identity of every person having a financial
20    or voting interest of 5% or greater in the cultivation
21    center operation with respect to which the license is
22    sought, whether a trust, corporation, partnership, limited
23    liability company, or sole proprietorship, including the
24    name and address of each person;
25        (18) a plan describing how the cultivation center will
26    address each of the following:

 

 

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1            (i) energy needs, including estimates of monthly
2        electricity and gas usage, to what extent it will
3        procure energy from a local utility or from on-site
4        generation, and if it has or will adopt a sustainable
5        energy use and energy conservation policy;
6            (ii) water needs, including estimated water draw
7        and if it has or will adopt a sustainable water use and
8        water conservation policy; and
9            (iii) waste management, including if it has or
10        will adopt a waste reduction policy;
11        (19) a diversity plan that includes a narrative of not
12    more than 2,500 words that establishes a goal of diversity
13    in ownership, management, employment, and contracting to
14    ensure that diverse participants and groups are afforded
15    equality of opportunity;
16        (20) any other information required by rule;
17        (21) a recycling plan:
18            (A) Purchaser packaging, including cartridges,
19        shall be accepted by the applicant and recycled.
20            (B) Any recyclable waste generated by the cannabis
21        cultivation facility shall be recycled per applicable
22        State and local laws, ordinances, and rules.
23            (C) Any cannabis waste, liquid waste, or hazardous
24        waste shall be disposed of in accordance with 8 Ill.
25        Adm. Code 1000.460, except, to the greatest extent
26        feasible, all cannabis plant waste will be rendered

 

 

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1        unusable by grinding and incorporating the cannabis
2        plant waste with compostable mixed waste to be
3        disposed of in accordance with 8 Ill. Adm. Code
4        1000.460(g)(1);
5        (22) commitment to comply with local waste provisions:
6    a cultivation facility must remain in compliance with
7    applicable State and federal environmental requirements,
8    including, but not limited to:
9            (A) storing, securing, and managing all
10        recyclables and waste, including organic waste
11        composed of or containing finished cannabis and
12        cannabis products, in accordance with applicable State
13        and local laws, ordinances, and rules; and
14            (B) disposing liquid waste containing cannabis or
15        byproducts of cannabis processing in compliance with
16        all applicable State and federal requirements,
17        including, but not limited to, the cannabis
18        cultivation facility's permits under Title X of the
19        Environmental Protection Act; and
20        (23) a commitment to a technology standard for
21    resource efficiency of the cultivation center facility.
22            (A) A cannabis cultivation facility commits to use
23        resources efficiently, including energy and water. For
24        the following, a cannabis cultivation facility commits
25        to meet or exceed the technology standard identified
26        in items (i), (ii), (iii), and (iv), which may be

 

 

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1        modified by rule:
2                (i) lighting systems, including light bulbs;
3                (ii) HVAC system;
4                (iii) water application system to the crop;
5            and
6                (iv) filtration system for removing
7            contaminants from wastewater.
8            (B) Lighting. The Lighting Power Densities (LPD)
9        for cultivation space commits to not exceed an average
10        of 36 watts per gross square foot of active and growing
11        space canopy, or all installed lighting technology
12        shall meet a photosynthetic photon efficacy (PPE) of
13        no less than 2.2 micromoles per joule fixture and
14        shall be featured on the DesignLights Consortium (DLC)
15        Horticultural Specification Qualified Products List
16        (QPL). In the event that DLC requirement for minimum
17        efficacy exceeds 2.2 micromoles per joule fixture,
18        that PPE shall become the new standard.
19            (C) HVAC.
20                (i) For cannabis grow operations with less
21            than 6,000 square feet of canopy, the licensee
22            commits that all HVAC units will be
23            high-efficiency ductless split HVAC units, or
24            other more energy efficient equipment.
25                (ii) For cannabis grow operations with 6,000
26            square feet of canopy or more, the licensee

 

 

HB5710- 174 -LRB102 26496 CPF 37026 b

1            commits that all HVAC units will be variable
2            refrigerant flow HVAC units, or other more energy
3            efficient equipment.
4            (D) Water application.
5                (i) The cannabis cultivation facility commits
6            to use automated watering systems, including, but
7            not limited to, drip irrigation and flood tables,
8            to irrigate cannabis crop.
9                (ii) The cannabis cultivation facility commits
10            to measure runoff from watering events and report
11            this volume in its water usage plan, and that on
12            average, watering events shall have no more than
13            20% of runoff of water.
14            (E) Filtration. The cultivator commits that HVAC
15        condensate, dehumidification water, excess runoff, and
16        other wastewater produced by the cannabis cultivation
17        facility shall be captured and filtered to the best of
18        the facility's ability to achieve the quality needed
19        to be reused in subsequent watering rounds.
20            (F) Reporting energy use and efficiency as
21        required by rule.
22    (b) Applicants must submit all required information,
23including the information required in Section 20-10, to the
24Commission Department of Agriculture. Failure by an applicant
25to submit all required information may result in the
26application being disqualified.

 

 

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1    (c) If the Commission Department of Agriculture receives
2an application with missing information, the Commission
3Department of Agriculture may issue a deficiency notice to the
4applicant. The applicant shall have 10 calendar days from the
5date of the deficiency notice to resubmit the incomplete
6information. Applications that are still incomplete after this
7opportunity to cure will not be scored and will be
8disqualified.
9    (e) A cultivation center that is awarded a Conditional
10Adult Use Cultivation Center License pursuant to the criteria
11in Section 20-20 shall not grow, purchase, possess, or sell
12cannabis or cannabis-infused products until the person has
13received an Adult Use Cultivation Center License issued by the
14Commission Department of Agriculture pursuant to Section 20-21
15of this Act.
16(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
17102-538, eff. 8-20-21.)
 
18    (410 ILCS 705/20-21)
19    Sec. 20-21. Adult Use Cultivation Center License.
20    (a) A person or entity is only eligible to receive an Adult
21Use Cultivation Center License if the person or entity has
22first been awarded a Conditional Adult Use Cultivation Center
23License pursuant to this Act or the person or entity has
24renewed its Early Approval Cultivation Center License pursuant
25to subsection (c) of Section 20-10.

 

 

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1    (b) The Commission Department of Agriculture shall not
2issue an Adult Use Cultivation Center License until:
3        (1) the Commission Department of Agriculture has
4    inspected the cultivation center site and proposed
5    operations and verified that they are in compliance with
6    this Act and local zoning laws;
7        (2) the Conditional Adult Use Cultivation Center
8    License holder has paid a registration fee in an amount
9    set by rule of $100,000 or a prorated amount accounting
10    for the difference of time between when the Adult Use
11    Cultivation Center License is issued and March 31 of the
12    next even-numbered year; and
13        (3) The Conditional Adult Use Cultivation Center
14    License holder has met all the requirements in the Act and
15    rules.
16(Source: P.A. 101-27, eff. 6-25-19.)
 
17    (410 ILCS 705/20-30)
18    Sec. 20-30. Cultivation center requirements; prohibitions.
19    (a) The operating documents of a cultivation center shall
20include procedures for the oversight of the cultivation
21center, a cannabis plant monitoring system including a
22physical inventory recorded weekly, accurate recordkeeping,
23and a staffing plan.
24    (b) A cultivation center shall implement a security plan
25reviewed by the Illinois State Police that includes, but is

 

 

HB5710- 177 -LRB102 26496 CPF 37026 b

1not limited to: facility access controls, perimeter intrusion
2detection systems, personnel identification systems, 24-hour
3surveillance system to monitor the interior and exterior of
4the cultivation center facility and accessibility to
5authorized law enforcement and the Commission , the Department
6of Public Health where processing takes place, and the
7Department of Agriculture in real time.
8    (c) All cultivation of cannabis by a cultivation center
9must take place in an enclosed, locked facility at the
10physical address provided to the Commission Department of
11Agriculture during the licensing process. The cultivation
12center location shall only be accessed by the agents working
13for the cultivation center, the Commission Department of
14Agriculture staff performing inspections, the Department of
15Public Health staff performing inspections, local and State
16law enforcement or other emergency personnel, contractors
17working on jobs unrelated to cannabis, such as installing or
18maintaining security devices or performing electrical wiring,
19transporting organization agents as provided in this Act,
20individuals in a mentoring or educational program approved by
21the State, or other individuals as provided by rule.
22    (d) A cultivation center may not sell or distribute any
23cannabis or cannabis-infused products to any person other than
24a dispensing organization, craft grower, infuser organization,
25transporter, or as otherwise authorized by rule.
26    (e) A cultivation center may not either directly or

 

 

HB5710- 178 -LRB102 26496 CPF 37026 b

1indirectly discriminate in price between different dispensing
2organizations, craft growers, or infuser organizations that
3are purchasing a like grade, strain, brand, and quality of
4cannabis or cannabis-infused product. Nothing in this
5subsection (e) prevents a cultivation center from pricing
6cannabis differently based on differences in the cost of
7manufacturing or processing, the quantities sold, such as
8volume discounts, or the way the products are delivered.
9    (f) All cannabis harvested by a cultivation center and
10intended for distribution to a dispensing organization must be
11entered into a data collection system, packaged and labeled
12under Section 55-21, and placed into a cannabis container for
13transport. All cannabis harvested by a cultivation center and
14intended for distribution to a craft grower or infuser
15organization must be packaged in a labeled cannabis container
16and entered into a data collection system before transport.
17    (g) Cultivation centers are subject to random inspections
18by the Commission Department of Agriculture, the Department of
19Public Health, local safety or health inspectors, the Illinois
20State Police, or as provided by rule.
21    (h) A cultivation center agent shall notify local law
22enforcement, the Illinois State Police, and the Commission
23Department of Agriculture within 24 hours of the discovery of
24any loss or theft. Notification shall be made by phone or in
25person, or by written or electronic communication.
26    (i) A cultivation center shall comply with all State and

 

 

HB5710- 179 -LRB102 26496 CPF 37026 b

1any applicable federal rules and regulations regarding the use
2of pesticides on cannabis plants.
3    (j) No person or entity shall hold any legal, equitable,
4ownership, or beneficial interest, directly or indirectly, of
5more than 3 cultivation centers licensed under this Article.
6Further, no person or entity that is employed by, an agent of,
7has a contract to receive payment in any form from a
8cultivation center, is a principal officer of a cultivation
9center, or entity controlled by or affiliated with a principal
10officer of a cultivation shall hold any legal, equitable,
11ownership, or beneficial interest, directly or indirectly, in
12a cultivation that would result in the person or entity owning
13or controlling in combination with any cultivation center,
14principal officer of a cultivation center, or entity
15controlled or affiliated with a principal officer of a
16cultivation center by which he, she, or it is employed, is an
17agent of, or participates in the management of, more than 3
18cultivation center licenses.
19    (k) A cultivation center may not contain more than 210,000
20square feet of canopy space for plants in the flowering stage
21for cultivation of adult use cannabis as provided in this Act.
22    (l) A cultivation center may process cannabis, cannabis
23concentrates, and cannabis-infused products.
24    (m) Beginning July 1, 2020, a cultivation center shall not
25transport cannabis or cannabis-infused products to a craft
26grower, dispensing organization, infuser organization, or

 

 

HB5710- 180 -LRB102 26496 CPF 37026 b

1laboratory licensed under this Act, unless it has obtained a
2transporting organization license.
3    (n) It is unlawful for any person having a cultivation
4center license or any officer, associate, member,
5representative, or agent of such licensee to offer or deliver
6money, or anything else of value, directly or indirectly to
7any person having an Early Approval Adult Use Dispensing
8Organization License, a Conditional Adult Use Dispensing
9Organization License, an Adult Use Dispensing Organization
10License, or a medical cannabis dispensing organization license
11issued under the Compassionate Use of Medical Cannabis Program
12Act, or to any person connected with or in any way
13representing, or to any member of the family of, such person
14holding an Early Approval Adult Use Dispensing Organization
15License, a Conditional Adult Use Dispensing Organization
16License, an Adult Use Dispensing Organization License, or a
17medical cannabis dispensing organization license issued under
18the Compassionate Use of Medical Cannabis Program Act, or to
19any stockholders in any corporation engaged in the retail sale
20of cannabis, or to any officer, manager, agent, or
21representative of the Early Approval Adult Use Dispensing
22Organization License, a Conditional Adult Use Dispensing
23Organization License, an Adult Use Dispensing Organization
24License, or a medical cannabis dispensing organization license
25issued under the Compassionate Use of Medical Cannabis Program
26Act to obtain preferential placement within the dispensing

 

 

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1organization, including, without limitation, on shelves and in
2display cases where purchasers can view products, or on the
3dispensing organization's website.
4    (o) A cultivation center must comply with any other
5requirements or prohibitions set by administrative rule of the
6Commission Department of Agriculture.
7(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
8102-98, eff. 7-15-21; 102-538, eff. 8-20-21; revised 11-9-21.)
 
9    (410 ILCS 705/20-55)
10    Sec. 20-55. Disclosure of ownership and control.
11    (a) Each Adult Use Cultivation Center applicant and
12license holder shall file and maintain a Table of
13Organization, Ownership, and Control with the Commission
14Department. The Table of Organization, Ownership, and Control
15shall contain the information required by this Section in
16sufficient detail to identify all owners, directors, and
17principal officers, and the title of each principal officer or
18business entity that, through direct or indirect means,
19manages, owns, or controls the applicant or license holder.
20    (b) The Table of Organization, Ownership, and Control
21shall identify the following information:
22        (1) The management structure, ownership, and control
23    of the applicant or license holder including the name of
24    each principal officer or business entity, the office or
25    position held, and the percentage ownership interest, if

 

 

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1    any. If the business entity has a parent company, the name
2    of each owner, board member, and officer of the parent
3    company and his or her percentage ownership interest in
4    the parent company and the Adult Use Cultivation Center.
5        (2) If the applicant or licensee is a business entity
6    with publicly traded stock, the identification of
7    ownership shall be provided as required in subsection (c).
8    (c) If a business entity identified in subsection (b) is a
9publicly traded company, the following information shall be
10provided in the Table of Organization, Ownership, and Control:
11        (1) The name and percentage of ownership interest of
12    each individual or business entity with ownership of more
13    than 5% of the voting shares of the entity, to the extent
14    such information is known or contained in 13D or 13G
15    Securities and Exchange Commission filings.
16        (2) To the extent known, the names and percentage of
17    interest of ownership of persons who are relatives of one
18    another and who together exercise control over or own more
19    than 10% of the voting shares of the entity.
20    (d) An Adult Use Cultivation Center with a parent company
21or companies, or partially owned or controlled by another
22entity must disclose to the Commission Department the
23relationship and all owners, board members, officers, or
24individuals with control or management of those entities. An
25Adult Use Cultivation Center shall not shield its ownership or
26control from the Department.

 

 

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1    (e) All principal officers must submit a complete online
2application with the Commission Department within 14 days of
3the Adult Use Cultivation Center being licensed by the
4Commission Department or within 14 days of Commission
5Department notice of approval as a new principal officer.
6    (f) A principal officer may not allow his or her
7registration to expire.
8    (g) An Adult Use Cultivation Center separating with a
9principal officer must do so under this Act. The principal
10officer must communicate the separation to the Commission
11Department within 5 business days.
12    (h) A principal officer not in compliance with the
13requirements of this Act shall be removed from his or her
14position with the Adult Use Cultivation Center or shall
15otherwise terminate his or her affiliation. Failure to do so
16may subject the Adult Use Cultivation Center to discipline,
17suspension, or revocation of its license by the Commission
18Department.
19    (i) It is the responsibility of the Adult Use Cultivation
20Center and its principal officers to promptly notify the
21Commission Department of any change of the principal place of
22business address, hours of operation, change in ownership or
23control, or a change of the Adult Use Cultivation Center's
24primary or secondary contact information. Any changes must be
25made to the Commission Department in writing.
26(Source: P.A. 102-98, eff. 7-15-21.)
 

 

 

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1    (410 ILCS 705/25-1)
2    (Section scheduled to be repealed on July 1, 2026)
3    Sec. 25-1. Definitions. In this Article:
4    "Board" means the Illinois Community College Board.
5    "Career in Cannabis Certificate" or "Certificate" means
6the certification awarded to a community college student who
7completes a prescribed course of study in cannabis and
8cannabis business industry related classes and curriculum at a
9community college awarded a Community College Cannabis
10Vocational Pilot Program license.
11    "Commission" means the Cannabis Equity and Oversight
12Commission.
13    "Community college" means a public community college
14organized under the Public Community College Act.
15    "Department" means the Department of Agriculture.
16    "Licensee" means a community college awarded a Community
17College Cannabis Vocational Pilot Program license under this
18Article.
19    "Program" means the Community College Cannabis Vocational
20Pilot Program.
21    "Program license" means a Community College Cannabis
22Vocational Pilot Program license issued to a community college
23under this Article.
24(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 

 

 

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1    (410 ILCS 705/25-5)
2    (Section scheduled to be repealed on July 1, 2026)
3    Sec. 25-5. Administration.
4    (a) The Commission Department shall establish and
5administer the Program in coordination with the Illinois
6Community College Board. The Commission Department may issue
7Program licenses to applicants that meet the requirements
8outlined in this Article.
9    (b) Beginning with the 2021-2022 academic year, and
10subject to subsection (h) of Section 2-12 of the Public
11Community College Act, community colleges awarded Program
12licenses may offer qualifying students a Career in Cannabis
13Certificate, which includes, but is not limited to, courses
14that allow participating students to work with, study, and
15grow live cannabis plants so as to prepare students for a
16career in the legal cannabis industry, and to instruct
17participating students on the best business practices,
18professional responsibility, and legal compliance of the
19cannabis business industry.
20    (c) The Board may issue rules pertaining to the provisions
21in this Act.
22    (d) Notwithstanding any other provision of this Act,
23students shall be at least 18 years old in order to enroll in a
24licensee's Career in Cannabis Certificate's prescribed course
25of study.
26(Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21.)
 

 

 

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1    (410 ILCS 705/25-10)
2    (Section scheduled to be repealed on July 1, 2026)
3    Sec. 25-10. Issuance of Community College Cannabis
4Vocational Pilot Program licenses.
5    (a) The Commission Department shall issue rules regulating
6the selection criteria for applicants by January 1, 2020. The
7Commission Department shall make the application for a Program
8license available no later than February 1, 2020, and shall
9require that applicants submit the completed application no
10later than July 1, 2020. If the Commission Department issues
11fewer than 8 Program licenses by September 1, 2020, the
12Commission Department may accept applications at a future date
13as prescribed by rule.
14    (b) The Commission Department shall by rule develop a
15system to score Program licenses to administratively rank
16applications based on the clarity, organization, and quality
17of the applicant's responses to required information.
18Applicants shall be awarded points that are based on or that
19meet the following categories:
20        (1) Geographic diversity of the applicants;
21        (2) Experience and credentials of the applicant's
22    faculty;
23        (3) At least 5 Program license awardees must have a
24    student population that is more than 50% low-income in
25    each of the past 4 years;

 

 

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1        (4) Security plan, including a requirement that all
2    cannabis plants be in an enclosed, locked facility;
3        (5) Curriculum plan, including processing and testing
4    curriculum for the Career in Cannabis Certificate;
5        (6) Career advising and placement plan for
6    participating students; and
7        (7) Any other criteria the Commission Department may
8    set by rule.
9(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
10    (410 ILCS 705/25-15)
11    (Section scheduled to be repealed on July 1, 2026)
12    Sec. 25-15. Community College Cannabis Vocational Pilot
13Program requirements and prohibitions.
14    (a) Licensees shall not have more than 50 flowering
15cannabis plants at any one time.
16    (b) The agent-in-charge shall keep a vault log of the
17licensee's enclosed, locked facility or facilities, including
18but not limited to, the person entering the site location, the
19time of entrance, the time of exit, and any other information
20the Commission Department may set by rule.
21    (c) Cannabis shall not be removed from the licensee's
22facility, except for the limited purpose of shipping a sample
23to a laboratory registered under this Act.
24    (d) The licensee shall limit keys, access cards, or an
25access code to the licensee's enclosed, locked facility, or

 

 

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1facilities, to cannabis curriculum faculty and college
2security personnel with a bona fide need to access the
3facility for emergency purposes.
4    (e) A transporting organization may transport cannabis
5produced pursuant to this Article to a laboratory registered
6under this Act. All other cannabis produced by the licensee
7that was not shipped to a registered laboratory shall be
8destroyed within 5 weeks of being harvested.
9    (f) Licensees shall subscribe to the Commission Department
10of Agriculture's cannabis plant monitoring system.
11    (g) Licensees shall maintain a weekly inventory system.
12    (h) No student participating in the cannabis curriculum
13necessary to obtain a Certificate may be in the licensee's
14facility unless a faculty agent-in-charge is also physically
15present in the facility.
16    (i) Licensees shall conduct post-certificate follow up
17surveys and record participating students' job placements
18within the cannabis business industry within a year of the
19student's completion.
20    (j) The Illinois Community College Board shall report
21annually to the Commission Department on the race, ethnicity,
22and gender of all students participating in the cannabis
23curriculum necessary to obtain a Certificate, and of those
24students who obtain a Certificate.
25(Source: P.A. 101-27, eff. 6-25-19.)
 

 

 

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1    (410 ILCS 705/25-25)
2    (Section scheduled to be repealed on July 1, 2026)
3    Sec. 25-25. Enforcement.
4    (a) The Commission Department has the authority to suspend
5or revoke any faculty agent-in-charge or agent identification
6card for any violation found under this Article.
7    (b) The Commission Department has the authority to suspend
8or revoke any Program license for any violation found under
9this Article.
10    (c) The Board shall revoke the authority to offer the
11Certificate of any community college that has had its license
12revoked by the Commission Department.
13(Source: P.A. 101-27, eff. 6-25-19.)
 
14    (410 ILCS 705/25-30)
15    (Section scheduled to be repealed on July 1, 2026)
16    Sec. 25-30. Inspection rights.
17    (a) A licensee's enclosed, locked facilities are subject
18to random inspections by the Commission Department, the
19Illinois State Police, or as provided by rule.
20    (b) Nothing in this Section shall be construed to give the
21Commission Department, the Illinois State Police, or any other
22entity identified by rule under subsection (a) a right of
23inspection or access to any location on the licensee's
24premises beyond the facilities licensed under this Article.
25(Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21;

 

 

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1102-538, eff. 8-20-21; revised 10-21-21.)
 
2    (410 ILCS 705/25-35)
3    (Section scheduled to be repealed on July 1, 2026)
4    Sec. 25-35. Community College Cannabis Vocational Training
5Pilot Program faculty participant agent identification card.
6    (a) The Commission Department shall:
7        (1) establish by rule the information required in an
8    initial application or renewal application for an agent
9    identification card submitted under this Article and the
10    nonrefundable fee to accompany the initial application or
11    renewal application;
12        (2) verify the information contained in an initial
13    application or renewal application for an agent
14    identification card submitted under this Article, and
15    approve or deny an application within 30 days of receiving
16    a completed initial application or renewal application and
17    all supporting documentation required by rule;
18        (3) issue an agent identification card to a qualifying
19    agent within 15 business days of approving the initial
20    application or renewal application;
21        (4) enter the license number of the community college
22    where the agent works; and
23        (5) allow for an electronic initial application and
24    renewal application process, and provide a confirmation by
25    electronic or other methods that an application has been

 

 

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1    submitted. The Commission Each Department may by rule
2    require prospective agents to file their applications by
3    electronic means and to provide notices to the agents by
4    electronic means.
5    (b) An agent must keep his or her identification card
6visible at all times when in the enclosed, locked facility, or
7facilities for which he or she is an agent.
8    (c) The agent identification cards shall contain the
9following:
10        (1) the name of the cardholder;
11        (2) the date of issuance and expiration date of the
12    identification card;
13        (3) a random 10-digit alphanumeric identification
14    number containing at least 4 numbers and at least 4
15    letters that is unique to the holder;
16        (4) a photograph of the cardholder; and
17        (5) the legal name of the community college employing
18    the agent.
19    (d) An agent identification card shall be immediately
20returned to the community college of the agent upon
21termination of his or her employment.
22    (e) Any agent identification card lost shall be reported
23to the Illinois State Police and the Commission Department of
24Agriculture immediately upon discovery of the loss.
25    (f) An agent applicant may begin employment at a Community
26College Cannabis Vocational Training Pilot Program while the

 

 

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1agent applicant's identification card application is pending.
2Upon approval, the Commission Department shall issue the
3agent's identification card to the agent. If denied, the
4Community College Cannabis Vocational Training Pilot Program
5and the agent applicant shall be notified and the agent
6applicant must cease all activity at the Community College
7Cannabis Vocational Training Pilot Program immediately.
8(Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21;
9102-538, eff. 8-20-21; revised 10-21-21.)
 
10    (410 ILCS 705/25-40)
11    (Section scheduled to be repealed on July 1, 2026)
12    Sec. 25-40. Study. By December 31, 2025, the Commission
13Illinois Cannabis Regulation Oversight Officer, in
14coordination with the Board, must issue a report to the
15Governor and the General Assembly which includes, but is not
16limited to, the following:
17        (1) Number of security incidents or infractions at
18    each licensee and any action taken or not taken;
19        (2) Statistics, based on race, ethnicity, gender, and
20    participating community college of:
21            (A) students enrolled in career in cannabis
22        classes;
23            (B) successful completion rates by community
24        college students for the Certificate;
25            (C) postgraduate job placement of students who

 

 

HB5710- 193 -LRB102 26496 CPF 37026 b

1        obtained a Certificate, including both cannabis
2        business establishment jobs and non-cannabis business
3        establishment jobs; and
4        (3) Any other relevant information.
5(Source: P.A. 101-27, eff. 6-25-19.)
 
6    (410 ILCS 705/30-3)
7    Sec. 30-3. Definition. In this Article, "Commission" means
8the Cannabis Equity and Oversight Commission.
9    "Department" means the Department of Agriculture.
10(Source: P.A. 101-27, eff. 6-25-19.)
 
11    (410 ILCS 705/30-5)
12    Sec. 30-5. Issuance of licenses.
13    (a) The Commission Department of Agriculture shall issue
14up to 40 craft grower licenses by July 1, 2020. Any person or
15entity awarded a license pursuant to this subsection shall
16only hold one craft grower license and may not sell that
17license until after December 21, 2021.
18    (b) By December 21, 2021, the Commission Department of
19Agriculture shall issue up to 60 additional craft grower
20licenses. Any person or entity awarded a license pursuant to
21this subsection shall not hold more than 2 craft grower
22licenses. The person or entity awarded a license pursuant to
23this subsection or subsection (a) of this Section may sell its
24craft grower license subject to the restrictions of this Act

 

 

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1or as determined by administrative rule. Prior to issuing such
2licenses, the Commission Department may adopt rules through
3emergency rulemaking in accordance with subsection (kk) of
4Section 5-45 of the Illinois Administrative Procedure Act, to
5modify or raise the number of craft grower licenses and modify
6or change the licensing application process. The General
7Assembly finds that the adoption of rules to regulate cannabis
8use is deemed an emergency and necessary for the public
9interest, safety, and welfare. In determining whether to
10exercise the authority granted by this subsection, the
11Commission Department of Agriculture must consider the
12following factors:
13        (1) the percentage of cannabis sales occurring in
14    Illinois not in the regulated market using data from the
15    Substance Abuse and Mental Health Services Administration,
16    National Survey on Drug Use and Health, Illinois
17    Behavioral Risk Factor Surveillance System, and tourism
18    data from the Illinois Office of Tourism to ascertain
19    total cannabis consumption in Illinois compared to the
20    amount of sales in licensed dispensing organizations;
21        (2) whether there is an adequate supply of cannabis
22    and cannabis-infused products to serve registered medical
23    cannabis patients;
24        (3) whether there is an adequate supply of cannabis
25    and cannabis-infused products to serve purchasers;
26        (4) whether there is an oversupply of cannabis in

 

 

HB5710- 195 -LRB102 26496 CPF 37026 b

1    Illinois leading to trafficking of cannabis to states
2    where the sale of cannabis is not permitted by law;
3        (5) population increases or shifts;
4        (6) the density of craft growers in any area of the
5    State;
6        (7) perceived security risks of increasing the number
7    or location of craft growers;
8        (8) the past safety record of craft growers;
9        (9) the Commission's Department of Agriculture's
10    capacity to appropriately regulate additional licensees;
11        (10) (blank); and
12        (11) any other criteria the Commission Department of
13    Agriculture deems relevant.
14    (c) After January 1, 2022, the Commission Department of
15Agriculture may by rule modify or raise the number of craft
16grower licenses and modify or change the licensing application
17process. At no time may the number of craft grower licenses
18exceed 150. Any person or entity awarded a license pursuant to
19this subsection shall not hold more than 3 craft grower
20licenses. A person or entity awarded a license pursuant to
21this subsection or subsection (a) or subsection (b) of this
22Section may sell its craft grower license or licenses subject
23to the restrictions of this Act or as determined by
24administrative rule.
25    (d) Upon the completion of the disparity and availability
26study pertaining to craft growers the Commission by the

 

 

HB5710- 196 -LRB102 26496 CPF 37026 b

1Cannabis Regulation Oversight Officer pursuant to subsection
2(e) of Section 5-45, the Department may modify or change the
3licensing application process to reduce or eliminate barriers
4from and remedy evidence of discrimination identified in the
5disparity and availability study.
6    (e) Notwithstanding any other provision of law, the
7Commission shall have authority over licenses in this Section
8that may be in various phases in the licensing process or are
9eligible, pending, in the conditional phase, awarded, pending
10adjudication by a judicial process, or have otherwise not been
11awarded on and after July 1, 2022.
12(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
13102-98, eff. 7-15-21.)
 
14    (410 ILCS 705/30-10)
15    Sec. 30-10. Application.
16    (a) When applying for a license, the applicant shall
17electronically submit the following in such form as the
18Commission Department of Agriculture may direct:
19        (1) the nonrefundable application fee as set by rule
20    by the Commission of $5,000 to be deposited into the
21    Cannabis Regulation Fund, or another amount as the
22    Department of Agriculture may set by rule after January 1,
23    2021;
24        (2) the legal name of the craft grower;
25        (3) the proposed physical address of the craft grower;

 

 

HB5710- 197 -LRB102 26496 CPF 37026 b

1        (4) the name, address, social security number, and
2    date of birth of each principal officer and board member
3    of the craft grower; each principal officer and board
4    member shall be at least 21 years of age;
5        (5) the details of any administrative or judicial
6    proceeding in which any of the principal officers or board
7    members of the craft grower (i) pled guilty, were
8    convicted, were fined, or had a registration or license
9    suspended or revoked or (ii) managed or served on the
10    board of a business or non-profit organization that pled
11    guilty, was convicted, was fined, or had a registration or
12    license suspended or revoked;
13        (6) proposed operating bylaws that include procedures
14    for the oversight of the craft grower, including the
15    development and implementation of a plant monitoring
16    system, accurate recordkeeping, staffing plan, and
17    security plan approved by the Illinois State Police that
18    are in accordance with the rules issued by the Commission
19    Department of Agriculture under this Act; a physical
20    inventory shall be performed of all plants and on a weekly
21    basis by the craft grower;
22        (7) verification from the Illinois State Police that
23    all background checks of the prospective principal
24    officers, board members, and agents of the cannabis
25    business establishment have been conducted;
26        (8) a copy of the current local zoning ordinance or

 

 

HB5710- 198 -LRB102 26496 CPF 37026 b

1    permit and verification that the proposed craft grower is
2    in compliance with the local zoning rules and distance
3    limitations established by the local jurisdiction;
4        (9) proposed employment practices, in which the
5    applicant must demonstrate a plan of action to inform,
6    hire, and educate minorities, women, veterans, and persons
7    with disabilities, engage in fair labor practices, and
8    provide worker protections;
9        (10) whether an applicant can demonstrate experience
10    in or business practices that promote economic empowerment
11    in Disproportionately Impacted Areas;
12        (11) experience with the cultivation of agricultural
13    or horticultural products, operating an agriculturally
14    related business, or operating a horticultural business;
15        (12) a description of the enclosed, locked facility
16    where cannabis will be grown, harvested, manufactured,
17    packaged, or otherwise prepared for distribution to a
18    dispensing organization or other cannabis business
19    establishment;
20        (13) a survey of the enclosed, locked facility,
21    including the space used for cultivation;
22        (14) cultivation, processing, inventory, and packaging
23    plans;
24        (15) a description of the applicant's experience with
25    agricultural cultivation techniques and industry
26    standards;

 

 

HB5710- 199 -LRB102 26496 CPF 37026 b

1        (16) a list of any academic degrees, certifications,
2    or relevant experience of all prospective principal
3    officers, board members, and agents of the related
4    business;
5        (17) the identity of every person having a financial
6    or voting interest of 5% or greater in the craft grower
7    operation, whether a trust, corporation, partnership,
8    limited liability company, or sole proprietorship,
9    including the name and address of each person;
10        (18) a plan describing how the craft grower will
11    address each of the following:
12            (i) energy needs, including estimates of monthly
13        electricity and gas usage, to what extent it will
14        procure energy from a local utility or from on-site
15        generation, and if it has or will adopt a sustainable
16        energy use and energy conservation policy;
17            (ii) water needs, including estimated water draw
18        and if it has or will adopt a sustainable water use and
19        water conservation policy; and
20            (iii) waste management, including if it has or
21        will adopt a waste reduction policy;
22        (19) a recycling plan:
23            (A) Purchaser packaging, including cartridges,
24        shall be accepted by the applicant and recycled.
25            (B) Any recyclable waste generated by the craft
26        grower facility shall be recycled per applicable State

 

 

HB5710- 200 -LRB102 26496 CPF 37026 b

1        and local laws, ordinances, and rules.
2            (C) Any cannabis waste, liquid waste, or hazardous
3        waste shall be disposed of in accordance with 8 Ill.
4        Adm. Code 1000.460, except, to the greatest extent
5        feasible, all cannabis plant waste will be rendered
6        unusable by grinding and incorporating the cannabis
7        plant waste with compostable mixed waste to be
8        disposed of in accordance with 8 Ill. Adm. Code
9        1000.460(g)(1);
10        (20) a commitment to comply with local waste
11    provisions: a craft grower facility must remain in
12    compliance with applicable State and federal environmental
13    requirements, including, but not limited to:
14            (A) storing, securing, and managing all
15        recyclables and waste, including organic waste
16        composed of or containing finished cannabis and
17        cannabis products, in accordance with applicable State
18        and local laws, ordinances, and rules; and
19            (B) disposing liquid waste containing cannabis or
20        byproducts of cannabis processing in compliance with
21        all applicable State and federal requirements,
22        including, but not limited to, the cannabis
23        cultivation facility's permits under Title X of the
24        Environmental Protection Act;
25        (21) a commitment to a technology standard for
26    resource efficiency of the craft grower facility.

 

 

HB5710- 201 -LRB102 26496 CPF 37026 b

1            (A) A craft grower facility commits to use
2        resources efficiently, including energy and water. For
3        the following, a cannabis cultivation facility commits
4        to meet or exceed the technology standard identified
5        in paragraphs (i), (ii), (iii), and (iv), which may be
6        modified by rule:
7                (i) lighting systems, including light bulbs;
8                (ii) HVAC system;
9                (iii) water application system to the crop;
10            and
11                (iv) filtration system for removing
12            contaminants from wastewater.
13            (B) Lighting. The Lighting Power Densities (LPD)
14        for cultivation space commits to not exceed an average
15        of 36 watts per gross square foot of active and growing
16        space canopy, or all installed lighting technology
17        shall meet a photosynthetic photon efficacy (PPE) of
18        no less than 2.2 micromoles per joule fixture and
19        shall be featured on the DesignLights Consortium (DLC)
20        Horticultural Specification Qualified Products List
21        (QPL). In the event that DLC requirement for minimum
22        efficacy exceeds 2.2 micromoles per joule fixture,
23        that PPE shall become the new standard.
24            (C) HVAC.
25                (i) For cannabis grow operations with less
26            than 6,000 square feet of canopy, the licensee

 

 

HB5710- 202 -LRB102 26496 CPF 37026 b

1            commits that all HVAC units will be
2            high-efficiency ductless split HVAC units, or
3            other more energy efficient equipment.
4                (ii) For cannabis grow operations with 6,000
5            square feet of canopy or more, the licensee
6            commits that all HVAC units will be variable
7            refrigerant flow HVAC units, or other more energy
8            efficient equipment.
9            (D) Water application.
10                (i) The craft grower facility commits to use
11            automated watering systems, including, but not
12            limited to, drip irrigation and flood tables, to
13            irrigate cannabis crop.
14                (ii) The craft grower facility commits to
15            measure runoff from watering events and report
16            this volume in its water usage plan, and that on
17            average, watering events shall have no more than
18            20% of runoff of water.
19            (E) Filtration. The craft grower commits that HVAC
20        condensate, dehumidification water, excess runoff, and
21        other wastewater produced by the craft grower facility
22        shall be captured and filtered to the best of the
23        facility's ability to achieve the quality needed to be
24        reused in subsequent watering rounds.
25            (F) Reporting energy use and efficiency as
26        required by rule; and

 

 

HB5710- 203 -LRB102 26496 CPF 37026 b

1        (22) any other information required by rule.
2    (b) Applicants must submit all required information,
3including the information required in Section 30-15, to the
4Department of Agriculture. Failure by an applicant to submit
5all required information may result in the application being
6disqualified.
7    (c) (Blank). If the Department of Agriculture receives an
8application with missing information, the Department of
9Agriculture may issue a deficiency notice to the applicant.
10The applicant shall have 10 calendar days from the date of the
11deficiency notice to resubmit the incomplete information.
12Applications that are still incomplete after this opportunity
13to cure will not be scored and will be disqualified.
14(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
15102-538, eff. 8-20-21.)
 
16    (410 ILCS 705/30-20)
17    Sec. 30-20. Issuance of license to certain persons
18prohibited.
19    (a) No craft grower license issued by the Commission
20Department of Agriculture shall be issued to a person who is
21licensed by any licensing authority as a cultivation center,
22or to any partnership, corporation, limited liability company,
23or trust or any subsidiary, affiliate, or any other form of
24business enterprise having more than 10% legal, equitable, or
25beneficial interest, directly or indirectly, in a person

 

 

HB5710- 204 -LRB102 26496 CPF 37026 b

1licensed in this State as a cultivation center, or to any
2principal officer, agent, employee, or human being with any
3form of ownership or control over a cultivation center except
4for a person who owns no more than 5% of the outstanding shares
5of a cultivation center whose shares are publicly traded on an
6exchange within the meaning of the Securities Exchange Act of
71934.
8    (b) A person who is licensed in this State as a craft
9grower, or any partnership, corporation, limited liability
10company, or trust or any subsidiary, affiliate, or agent
11thereof, or any other form of business enterprise licensed in
12this State as a craft grower shall not have more than 10%
13legal, equitable, or beneficial interest, directly or
14indirectly, in a person licensed as a cultivation center, nor
15shall any partnership, corporation, limited liability company,
16or trust or any subsidiary, affiliate, or any other form of
17business enterprise having any legal, equitable, or beneficial
18interest, directly or indirectly, in a person licensed in this
19State as a craft grower or a craft grower agent be a principal
20officer, agent, employee, or human being with any form of
21ownership or control over a cultivation center except for a
22person who owns no more than 5% of the outstanding shares of a
23cultivation center whose shares are publicly traded on an
24exchange within the meaning of the Securities Exchange Act of
251934.
26(Source: P.A. 101-27, eff. 6-25-19.)
 

 

 

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1    (410 ILCS 705/30-30)
2    Sec. 30-30. Craft grower requirements; prohibitions.
3    (a) The operating documents of a craft grower shall
4include procedures for the oversight of the craft grower, a
5cannabis plant monitoring system including a physical
6inventory recorded weekly, accurate recordkeeping, and a
7staffing plan.
8    (b) A craft grower shall implement a security plan
9reviewed by the Illinois State Police that includes, but is
10not limited to: facility access controls, perimeter intrusion
11detection systems, personnel identification systems, and a
1224-hour surveillance system to monitor the interior and
13exterior of the craft grower facility and that is accessible
14to authorized law enforcement and the Commission Department of
15Agriculture in real time.
16    (c) All cultivation of cannabis by a craft grower must
17take place in an enclosed, locked facility at the physical
18address provided to the Commission Department of Agriculture
19during the licensing process. The craft grower location shall
20only be accessed by the agents working for the craft grower,
21the Commission Department of Agriculture staff performing
22inspections, the Department of Public Health staff performing
23inspections, State and local law enforcement or other
24emergency personnel, contractors working on jobs unrelated to
25cannabis, such as installing or maintaining security devices

 

 

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1or performing electrical wiring, transporting organization
2agents as provided in this Act, or participants in the
3incubator program, individuals in a mentoring or educational
4program approved by the State, or other individuals as
5provided by rule. However, if a craft grower shares a premises
6with an infuser or dispensing organization, agents from those
7other licensees may access the craft grower portion of the
8premises if that is the location of common bathrooms,
9lunchrooms, locker rooms, or other areas of the building where
10work or cultivation of cannabis is not performed. At no time
11may an infuser or dispensing organization agent perform work
12at a craft grower without being a registered agent of the craft
13grower.
14    (d) A craft grower may not sell or distribute any cannabis
15to any person other than a cultivation center, a craft grower,
16an infuser organization, a dispensing organization, or as
17otherwise authorized by rule.
18    (e) A craft grower may not be located in an area zoned for
19residential use.
20    (f) A craft grower may not either directly or indirectly
21discriminate in price between different cannabis business
22establishments that are purchasing a like grade, strain,
23brand, and quality of cannabis or cannabis-infused product.
24Nothing in this subsection (f) prevents a craft grower from
25pricing cannabis differently based on differences in the cost
26of manufacturing or processing, the quantities sold, such as

 

 

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1volume discounts, or the way the products are delivered.
2    (g) All cannabis harvested by a craft grower and intended
3for distribution to a dispensing organization must be entered
4into a data collection system, packaged and labeled under
5Section 55-21, and, if distribution is to a dispensing
6organization that does not share a premises with the
7dispensing organization receiving the cannabis, placed into a
8cannabis container for transport. All cannabis harvested by a
9craft grower and intended for distribution to a cultivation
10center, to an infuser organization, or to a craft grower with
11which it does not share a premises, must be packaged in a
12labeled cannabis container and entered into a data collection
13system before transport.
14    (h) Craft growers are subject to random inspections by the
15Commission Department of Agriculture, local safety or health
16inspectors, the Illinois State Police, or as provided by rule.
17    (i) A craft grower agent shall notify local law
18enforcement, the Illinois State Police, and the Commission
19Department of Agriculture within 24 hours of the discovery of
20any loss or theft. Notification shall be made by phone, in
21person, or written or electronic communication.
22    (j) A craft grower