103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB0025

 

Introduced 1/12/2023, by Rep. La Shawn K. Ford

 

SYNOPSIS AS INTRODUCED:
 
410 ILCS 705/1-10
410 ILCS 705/30-5
410 ILCS 705/30-30
410 ILCS 705/40-25
410 ILCS 705/55-20
410 ILCS 705/60-10

    Amends the Cannabis Regulation and Tax Act. Raises specified square footage requirements for craft growers. Removes language allowing the Department of Agriculture to authorize a decrease of flowering stage cultivation space used for cultivating specified plants. Raises the maximum number of craft grower licenses for specified craft growers to 3 (rather than one), 6 (rather than 2), and 10 (rather than 3). Removes language prohibiting craft growers from being located within 1,500 feet of each other. Prohibits cannabis product advertising from describing or referencing a cannabis product as "craft" unless the cannabis product is produced by a craft grower. Provides that the Cannabis Cultivation Privilege Tax shall not be assessed against or collected from specified craft growers until 2 years after the date the craft grower was awarded a license. Makes other changes.


LRB103 03524 CPF 48530 b

 

 

A BILL FOR

 

HB0025LRB103 03524 CPF 48530 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Cannabis Regulation and Tax Act is amended
5by changing Sections 1-10, 30-5, 30-30, 40-25, 55-20, and
660-10 as follows:
 
7    (410 ILCS 705/1-10)
8    Sec. 1-10. Definitions. In this Act:
9    "Adult Use Cultivation Center License" means a license
10issued by the Department of Agriculture that permits a person
11to act as a cultivation center under this Act and any
12administrative rule made in furtherance of this Act.
13    "Adult Use Dispensing Organization License" means a
14license issued by the Department of Financial and Professional
15Regulation that permits a person to act as a dispensing
16organization under this Act and any administrative rule made
17in furtherance of this Act.
18    "Advertise" means to engage in promotional activities
19including, but not limited to: newspaper, radio, Internet and
20electronic media, and television advertising; the distribution
21of fliers and circulars; billboard advertising; and the
22display of window and interior signs. "Advertise" does not
23mean exterior signage displaying only the name of the licensed

 

 

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1cannabis business establishment.
2    "Application points" means the number of points a
3Dispensary Applicant receives on an application for a
4Conditional Adult Use Dispensing Organization License.
5    "BLS Region" means a region in Illinois used by the United
6States Bureau of Labor Statistics to gather and categorize
7certain employment and wage data. The 17 such regions in
8Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
9Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
10Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
11Rockford, St. Louis, Springfield, Northwest Illinois
12nonmetropolitan area, West Central Illinois nonmetropolitan
13area, East Central Illinois nonmetropolitan area, and South
14Illinois nonmetropolitan area.
15    "By lot" means a randomized method of choosing between 2
16or more Eligible Tied Applicants or 2 or more Qualifying
17Applicants.
18    "Cannabis" means marijuana, hashish, and other substances
19that are identified as including any parts of the plant
20Cannabis sativa and including derivatives or subspecies, such
21as indica, of all strains of cannabis, whether growing or not;
22the seeds thereof, the resin extracted from any part of the
23plant; and any compound, manufacture, salt, derivative,
24mixture, or preparation of the plant, its seeds, or resin,
25including tetrahydrocannabinol (THC) and all other naturally
26produced cannabinol derivatives, whether produced directly or

 

 

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1indirectly by extraction; however, "cannabis" does not include
2the mature stalks of the plant, fiber produced from the
3stalks, oil or cake made from the seeds of the plant, any other
4compound, manufacture, salt, derivative, mixture, or
5preparation of the mature stalks (except the resin extracted
6from it), fiber, oil or cake, or the sterilized seed of the
7plant that is incapable of germination. "Cannabis" does not
8include industrial hemp as defined and authorized under the
9Industrial Hemp Act. "Cannabis" also means cannabis flower,
10concentrate, and cannabis-infused products.
11    "Cannabis business establishment" means a cultivation
12center, craft grower, processing organization, infuser
13organization, dispensing organization, or transporting
14organization.
15    "Cannabis concentrate" means a product derived from
16cannabis that is produced by extracting cannabinoids,
17including tetrahydrocannabinol (THC), from the plant through
18the use of propylene glycol, glycerin, butter, olive oil, or
19other typical cooking fats; water, ice, or dry ice; or butane,
20propane, CO2, ethanol, or isopropanol and with the intended
21use of smoking or making a cannabis-infused product. The use
22of any other solvent is expressly prohibited unless and until
23it is approved by the Department of Agriculture.
24    "Cannabis container" means a sealed or resealable,
25traceable, container, or package used for the purpose of
26containment of cannabis or cannabis-infused product during

 

 

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1transportation.
2    "Cannabis flower" means marijuana, hashish, and other
3substances that are identified as including any parts of the
4plant Cannabis sativa and including derivatives or subspecies,
5such as indica, of all strains of cannabis; including raw
6kief, leaves, and buds, but not resin that has been extracted
7from any part of such plant; nor any compound, manufacture,
8salt, derivative, mixture, or preparation of such plant, its
9seeds, or resin.
10    "Cannabis-infused product" means a beverage, food, oil,
11ointment, tincture, topical formulation, or another product
12containing cannabis or cannabis concentrate that is not
13intended to be smoked.
14    "Cannabis paraphernalia" means equipment, products, or
15materials intended to be used for planting, propagating,
16cultivating, growing, harvesting, manufacturing, producing,
17processing, preparing, testing, analyzing, packaging,
18repackaging, storing, containing, concealing, ingesting, or
19otherwise introducing cannabis into the human body.
20    "Cannabis plant monitoring system" or "plant monitoring
21system" means a system that includes, but is not limited to,
22testing and data collection established and maintained by the
23cultivation center, craft grower, or processing organization
24and that is available to the Department of Revenue, the
25Department of Agriculture, the Department of Financial and
26Professional Regulation, and the Illinois State Police for the

 

 

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1purposes of documenting each cannabis plant and monitoring
2plant development throughout the life cycle of a cannabis
3plant cultivated for the intended use by a customer from seed
4planting to final packaging.
5    "Cannabis testing facility" means an entity registered by
6the Department of Agriculture to test cannabis for potency and
7contaminants.
8    "Clone" means a plant section from a female cannabis plant
9not yet rootbound, growing in a water solution or other
10propagation matrix, that is capable of developing into a new
11plant.
12    "Community College Cannabis Vocational Training Pilot
13Program faculty participant" means a person who is 21 years of
14age or older, licensed by the Department of Agriculture, and
15is employed or contracted by an Illinois community college to
16provide student instruction using cannabis plants at an
17Illinois Community College.
18    "Community College Cannabis Vocational Training Pilot
19Program faculty participant Agent Identification Card" means a
20document issued by the Department of Agriculture that
21identifies a person as a Community College Cannabis Vocational
22Training Pilot Program faculty participant.
23    "Conditional Adult Use Dispensing Organization License"
24means a contingent license awarded to applicants for an Adult
25Use Dispensing Organization License that reserves the right to
26an Adult Use Dispensing Organization License if the applicant

 

 

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1meets certain conditions described in this Act, but does not
2entitle the recipient to begin purchasing or selling cannabis
3or cannabis-infused products.
4    "Conditional Adult Use Cultivation Center License" means a
5license awarded to top-scoring applicants for an Adult Use
6Cultivation Center License that reserves the right to an Adult
7Use Cultivation Center License if the applicant meets certain
8conditions as determined by the Department of Agriculture by
9rule, but does not entitle the recipient to begin growing,
10processing, or selling cannabis or cannabis-infused products.
11    "Craft grower" means a facility operated by an
12organization or business that is licensed by the Department of
13Agriculture to cultivate, dry, cure, and package cannabis and
14perform other necessary activities to make cannabis available
15for sale at a dispensing organization or use at a processing
16organization. A craft grower may contain up to 14,000 5,000
17square feet of canopy space on its premises for plants in the
18flowering state. The Department of Agriculture may authorize
19an increase or decrease of flowering stage cultivation space
20in increments of 14,000 3,000 square feet by rule based on
21market need, craft grower capacity, and the licensee's history
22of compliance or noncompliance, with a maximum space of 56,000
2314,000 square feet for cultivating plants in the flowering
24stage, which must be cultivated in all stages of growth in an
25enclosed and secure area. A craft grower may share premises
26with a processing organization or a dispensing organization,

 

 

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1or both, provided each licensee stores currency and cannabis
2or cannabis-infused products in a separate secured vault to
3which the other licensee does not have access or all licensees
4sharing a vault share more than 50% of the same ownership.
5    "Craft grower agent" means a principal officer, board
6member, employee, or other agent of a craft grower who is 21
7years of age or older.
8    "Craft Grower Agent Identification Card" means a document
9issued by the Department of Agriculture that identifies a
10person as a craft grower agent.
11    "Cultivation center" means a facility operated by an
12organization or business that is licensed by the Department of
13Agriculture to cultivate, process, transport (unless otherwise
14limited by this Act), and perform other necessary activities
15to provide cannabis and cannabis-infused products to cannabis
16business establishments.
17    "Cultivation center agent" means a principal officer,
18board member, employee, or other agent of a cultivation center
19who is 21 years of age or older.
20    "Cultivation Center Agent Identification Card" means a
21document issued by the Department of Agriculture that
22identifies a person as a cultivation center agent.
23    "Currency" means currency and coin of the United States.
24    "Dispensary" means a facility operated by a dispensing
25organization at which activities licensed by this Act may
26occur.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1when a cannabis plant is cultivated to produce plant material
2for cannabis products. This includes mature plants as follows:
3        (1) if greater than 2 stigmas are visible at each
4    internode of the plant; or
5        (2) if the cannabis plant is in an area that has been
6    intentionally deprived of light for a period of time
7    intended to produce flower buds and induce maturation,
8    from the moment the light deprivation began through the
9    remainder of the marijuana plant growth cycle.
10    "Individual" means a natural person.
11    "Infuser organization" or "infuser" means a facility
12operated by an organization or business that is licensed by
13the Department of Agriculture to directly incorporate cannabis
14or cannabis concentrate into a product formulation to produce
15a cannabis-infused product.
16    "Kief" means the resinous crystal-like trichomes that are
17found on cannabis and that are accumulated, resulting in a
18higher concentration of cannabinoids, untreated by heat or
19pressure, or extracted using a solvent.
20    "Labor peace agreement" means an agreement between a
21cannabis business establishment and any labor organization
22recognized under the National Labor Relations Act, referred to
23in this Act as a bona fide labor organization, that prohibits
24labor organizations and members from engaging in picketing,
25work stoppages, boycotts, and any other economic interference
26with the cannabis business establishment. This agreement means

 

 

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1that the cannabis business establishment has agreed not to
2disrupt efforts by the bona fide labor organization to
3communicate with, and attempt to organize and represent, the
4cannabis business establishment's employees. The agreement
5shall provide a bona fide labor organization access at
6reasonable times to areas in which the cannabis business
7establishment's employees work, for the purpose of meeting
8with employees to discuss their right to representation,
9employment rights under State law, and terms and conditions of
10employment. This type of agreement shall not mandate a
11particular method of election or certification of the bona
12fide labor organization.
13    "Limited access area" means a room or other area under the
14control of a cannabis dispensing organization licensed under
15this Act and upon the licensed premises where cannabis sales
16occur with access limited to purchasers, dispensing
17organization owners and other dispensing organization agents,
18or service professionals conducting business with the
19dispensing organization, or, if sales to registered qualifying
20patients, caregivers, provisional patients, and Opioid
21Alternative Pilot Program participants licensed pursuant to
22the Compassionate Use of Medical Cannabis Program Act are also
23permitted at the dispensary, registered qualifying patients,
24caregivers, provisional patients, and Opioid Alternative Pilot
25Program participants.
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 the Compassionate
3Use 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 Department of Agriculture to either extract constituent
26chemicals or compounds to produce cannabis concentrate or

 

 

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1incorporate cannabis or cannabis concentrate into a product
2formulation 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 Department of Agriculture that
7identifies 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 the Compassionate Use of
11Medical 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

 

 

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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 Department of
18Agriculture to transport cannabis or cannabis-infused product
19on behalf of a cannabis business establishment or a community
20college licensed under the Community College Cannabis
21Vocational 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 Department of Agriculture that

 

 

HB0025- 20 -LRB103 03524 CPF 48530 b

1identifies a person as a transporting organization agent.
2    "Unit of local government" means any county, city,
3village, or incorporated town.
4    "Vegetative stage" means the stage of cultivation in which
5a cannabis plant is propagated to produce additional cannabis
6plants or reach a sufficient size for production. This
7includes seedlings, clones, mothers, and other immature
8cannabis plants as follows:
9        (1) if the cannabis plant is in an area that has not
10    been intentionally deprived of light for a period of time
11    intended to produce flower buds and induce maturation, it
12    has no more than 2 stigmas visible at each internode of the
13    cannabis plant; or
14        (2) any cannabis plant that is cultivated solely for
15    the purpose of propagating clones and is never used to
16    produce cannabis.
17(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
18102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
195-13-22.)
 
20    (410 ILCS 705/30-5)
21    Sec. 30-5. Issuance of licenses.
22    (a) The Department of Agriculture shall issue up to 40
23craft grower licenses by July 1, 2020. Any person or entity
24awarded a license pursuant to this subsection shall only hold
25up to 3 one craft grower licenses license and may not sell that

 

 

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1license until after December 21, 2021.
2    (b) By December 21, 2021, the Department of Agriculture
3shall issue up to 60 additional craft grower licenses. Any
4person or entity awarded a license pursuant to this subsection
5shall not hold more than 6 2 craft grower licenses. The person
6or entity awarded a license pursuant to this subsection or
7subsection (a) of this Section may sell its craft grower
8license subject to the restrictions of this Act or as
9determined by administrative rule. Prior to issuing such
10licenses, the Department may adopt rules through emergency
11rulemaking in accordance with subsection (kk) of Section 5-45
12of the Illinois Administrative Procedure Act, to modify or
13raise the number of craft grower licenses and modify or change
14the licensing application process. The General Assembly finds
15that the adoption of rules to regulate cannabis use is deemed
16an emergency and necessary for the public interest, safety,
17and welfare. In determining whether to exercise the authority
18granted by this subsection, the Department of Agriculture must
19consider the following factors:
20        (1) the percentage of cannabis sales occurring in
21    Illinois not in the regulated market using data from the
22    Substance Abuse and Mental Health Services Administration,
23    National Survey on Drug Use and Health, Illinois
24    Behavioral Risk Factor Surveillance System, and tourism
25    data from the Illinois Office of Tourism to ascertain
26    total cannabis consumption in Illinois compared to the

 

 

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1    amount of sales in licensed dispensing organizations;
2        (2) whether there is an adequate supply of cannabis
3    and cannabis-infused products to serve registered medical
4    cannabis patients;
5        (3) whether there is an adequate supply of cannabis
6    and cannabis-infused products to serve purchasers;
7        (4) whether there is an oversupply of cannabis in
8    Illinois leading to trafficking of cannabis to states
9    where the sale of cannabis is not permitted by law;
10        (5) population increases or shifts;
11        (6) the density of craft growers in any area of the
12    State;
13        (7) perceived security risks of increasing the number
14    or location of craft growers;
15        (8) the past safety record of craft growers;
16        (9) the Department of Agriculture's capacity to
17    appropriately regulate additional licensees;
18        (10) (blank); and
19        (11) any other criteria the Department of Agriculture
20    deems relevant.
21    (c) After January 1, 2022, the Department of Agriculture
22may by rule modify or raise the number of craft grower licenses
23and modify or change the licensing application process. At no
24time may the number of craft grower licenses exceed 150. Any
25person or entity awarded a license pursuant to this subsection
26shall not hold more than 10 3 craft grower licenses. A person

 

 

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1or entity awarded a license pursuant to this subsection or
2subsection (a) or subsection (b) of this Section may sell its
3craft grower license or licenses subject to the restrictions
4of this Act or as determined by administrative rule.
5    (d) Upon the completion of the disparity and availability
6study pertaining to craft growers by the Cannabis Regulation
7Oversight Officer pursuant to subsection (e) of Section 5-45,
8the Department may modify or change the licensing application
9process to reduce or eliminate barriers from and remedy
10evidence of discrimination identified in the disparity and
11availability study.
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 705/30-30)
15    Sec. 30-30. Craft grower requirements; prohibitions.
16    (a) The operating documents of a craft grower shall
17include procedures for the oversight of the craft grower, a
18cannabis plant monitoring system including a physical
19inventory recorded weekly, accurate recordkeeping, and a
20staffing plan.
21    (b) A craft grower shall implement a security plan
22reviewed by the Illinois State Police that includes, but is
23not limited to: facility access controls, perimeter intrusion
24detection systems, personnel identification systems, and a
2524-hour surveillance system to monitor the interior and

 

 

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1exterior of the craft grower facility and that is accessible
2to authorized law enforcement and the Department of
3Agriculture in real time.
4    (c) All cultivation of cannabis by a craft grower must
5take place in an enclosed, locked facility at the physical
6address provided to the Department of Agriculture during the
7licensing process. The craft grower location shall only be
8accessed by the agents working for the craft grower, the
9Department of Agriculture staff performing inspections, the
10Department of Public Health staff performing inspections,
11State and local law enforcement or other emergency personnel,
12contractors working on jobs unrelated to cannabis, such as
13installing or maintaining security devices or performing
14electrical wiring, transporting organization agents as
15provided in this Act, or participants in the incubator
16program, individuals in a mentoring or educational program
17approved by the State, or other individuals as provided by
18rule. However, if a craft grower shares a premises with an
19infuser or dispensing organization, agents from those other
20licensees may access the craft grower portion of the premises
21if that is the location of common bathrooms, lunchrooms,
22locker rooms, or other areas of the building where work or
23cultivation of cannabis is not performed. At no time may an
24infuser or dispensing organization agent perform work at a
25craft grower without being a registered agent of the craft
26grower.

 

 

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1    (d) A craft grower may not sell or distribute any cannabis
2to any person other than a cultivation center, a craft grower,
3an infuser organization, a dispensing organization, or as
4otherwise authorized by rule.
5    (e) A craft grower may not be located in an area zoned for
6residential use.
7    (f) A craft grower may not either directly or indirectly
8discriminate in price between different cannabis business
9establishments that are purchasing a like grade, strain,
10brand, and quality of cannabis or cannabis-infused product.
11Nothing in this subsection (f) prevents a craft grower from
12pricing cannabis differently based on differences in the cost
13of manufacturing or processing, the quantities sold, such as
14volume discounts, or the way the products are delivered.
15    (g) All cannabis harvested by a craft grower and intended
16for distribution to a dispensing organization must be entered
17into a data collection system, packaged and labeled under
18Section 55-21, and, if distribution is to a dispensing
19organization that does not share a premises with the
20dispensing organization receiving the cannabis, placed into a
21cannabis container for transport. All cannabis harvested by a
22craft grower and intended for distribution to a cultivation
23center, to an infuser organization, or to a craft grower with
24which it does not share a premises, must be packaged in a
25labeled cannabis container and entered into a data collection
26system before transport.

 

 

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1    (h) Craft growers are subject to random inspections by the
2Department of Agriculture, local safety or health inspectors,
3the Illinois State Police, or as provided by rule.
4    (i) A craft grower agent shall notify local law
5enforcement, the Illinois State Police, and the Department of
6Agriculture within 24 hours of the discovery of any loss or
7theft. Notification shall be made by phone, in person, or
8written or electronic communication.
9    (j) A craft grower shall comply with all State and any
10applicable federal rules and regulations regarding the use of
11pesticides.
12    (k) A craft grower or craft grower agent shall not
13transport cannabis or cannabis-infused products to any other
14cannabis business establishment without a transport
15organization license unless:
16        (i) If the craft grower is located in a county with a
17    population of 3,000,000 or more, the cannabis business
18    establishment receiving the cannabis is within 2,000 feet
19    of the property line of the craft grower;
20        (ii) If the craft grower is located in a county with a
21    population of more than 700,000 but fewer than 3,000,000,
22    the cannabis business establishment receiving the cannabis
23    is within 2 miles of the craft grower; or
24        (iii) If the craft grower is located in a county with a
25    population of fewer than 700,000, the cannabis business
26    establishment receiving the cannabis is within 15 miles of

 

 

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1    the craft grower.
2    (l) A craft grower may enter into a contract with a
3transporting organization to transport cannabis to a
4cultivation center, a craft grower, an infuser organization, a
5dispensing organization, or a laboratory.
6    (m) No person or entity shall hold any legal, equitable,
7ownership, or beneficial interest, directly or indirectly, of
8more than 10 3 craft grower licenses. Further, no person or
9entity that is employed by, an agent of, or has a contract to
10receive payment from or participate in the management of a
11craft grower, is a principal officer of a craft grower, or
12entity controlled by or affiliated with a principal officer of
13a craft grower shall hold any legal, equitable, ownership, or
14beneficial interest, directly or indirectly, in a craft grower
15license that would result in the person or entity owning or
16controlling in combination with any craft grower, principal
17officer of a craft grower, or entity controlled or affiliated
18with a principal officer of a craft grower by which he, she, or
19it is employed, is an agent of, or participates in the
20management of more than 10 3 craft grower licenses.
21    (n) It is unlawful for any person having a craft grower
22license or any officer, associate, member, representative, or
23agent of the licensee to offer or deliver money, or anything
24else of value, directly or indirectly, to any person having an
25Early Approval Adult Use Dispensing Organization License, a
26Conditional Adult Use Dispensing Organization License, an

 

 

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1Adult Use Dispensing Organization License, or a medical
2cannabis dispensing organization license issued under the
3Compassionate Use of Medical Cannabis Program Act, or to any
4person connected with or in any way representing, or to any
5member of the family of, the person holding an Early Approval
6Adult Use Dispensing Organization License, a Conditional Adult
7Use Dispensing Organization License, an Adult Use Dispensing
8Organization License, or a medical cannabis dispensing
9organization license issued under the Compassionate Use of
10Medical Cannabis Program Act, or to any stockholders in any
11corporation engaged in the retail sale of cannabis, or to any
12officer, manager, agent, or representative of the Early
13Approval Adult Use Dispensing Organization License, a
14Conditional Adult Use Dispensing Organization License, an
15Adult Use Dispensing Organization License, or a medical
16cannabis dispensing organization license issued under the
17Compassionate Use of Medical Cannabis Program Act to obtain
18preferential placement within the dispensing organization,
19including, without limitation, on shelves and in display cases
20where purchasers can view products, or on the dispensing
21organization's website.
22    (o) A craft grower shall not be located within 1,500 feet
23of another craft grower or a cultivation center.
24    (p) A craft grower may process cannabis, cannabis
25concentrates, and cannabis-infused products.
26    (q) A craft grower must comply with any other requirements

 

 

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1or prohibitions set by administrative rule of the Department
2of Agriculture.
3(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
4102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
55-13-22.)
 
6    (410 ILCS 705/40-25)
7    Sec. 40-25. Transporting organization requirements;
8prohibitions.
9    (a) The operating documents of a transporting organization
10shall include procedures for the oversight of the transporter,
11an inventory monitoring system including a physical inventory
12recorded weekly, accurate recordkeeping, and a staffing plan.
13    (b) A transporting organization may not transport cannabis
14or cannabis-infused products to any person other than a
15cultivation center, a craft grower, an infuser organization, a
16dispensing organization, a testing facility, a transporting
17organization depot or other transporting organization transfer
18facility, or as otherwise authorized by rule.
19    (c) All cannabis transported by a transporting
20organization must be entered into a data collection system and
21placed into a cannabis container for transport.
22    (d) Transporters are subject to random inspections by the
23Department of Agriculture, the Department of Public Health,
24the Illinois State Police, or as provided by rule.
25    (e) A transporting organization agent shall notify local

 

 

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1law enforcement, the Illinois State Police, and the Department
2of Agriculture within 24 hours of the discovery of any loss or
3theft. Notification shall be made by phone, in person, or by
4written or electronic communication.
5    (f) No person under the age of 21 years shall be in a
6commercial vehicle or trailer transporting cannabis goods.
7    (g) No person or individual who is not a transporting
8organization agent shall be in a vehicle while transporting
9cannabis goods.
10    (h) Transporters may not use commercial motor vehicles
11with a weight rating of over 10,001 pounds.
12    (i) It is unlawful for any person to offer or deliver
13money, or anything else of value, directly or indirectly, to
14any of the following persons to obtain preferential placement
15within the dispensing organization, including, without
16limitation, on shelves and in display cases where purchasers
17can view products, or on the dispensing organization's
18website:
19        (1) a person having a transporting organization
20    license, or any officer, associate, member,
21    representative, or agent of the licensee;
22        (2) a person having an Early Applicant Adult Use
23    Dispensing Organization License, an Adult Use Dispensing
24    Organization License, or a medical cannabis dispensing
25    organization license issued under the Compassionate Use of
26    Medical Cannabis Program Act;

 

 

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1        (3) a person connected with or in any way
2    representing, or a member of the family of, a person
3    holding an Early Applicant Adult Use Dispensing
4    Organization License, an Adult Use Dispensing Organization
5    License, or a medical cannabis dispensing organization
6    license issued under the Compassionate Use of Medical
7    Cannabis Program Act; or
8        (4) a stockholder, officer, manager, agent, or
9    representative of a corporation engaged in the retail sale
10    of cannabis, an Early Applicant Adult Use Dispensing
11    Organization License, an Adult Use Dispensing Organization
12    License, or a medical cannabis dispensing organization
13    license issued under the Compassionate Use of Medical
14    Cannabis Program Act.
15    (j) A transporting organization agent must keep his or her
16identification card visible at all times when on the property
17of a cannabis business establishment and during the
18transporting of cannabis when acting under his or her duties
19as a transportation organization agent. During these times,
20the transporting organization agent must also provide the
21identification card upon request of any law enforcement
22officer engaged in his or her official duties.
23    (k) A copy of the transporting organization's registration
24and a manifest for the delivery shall be present in any vehicle
25transporting cannabis.
26    (l) Cannabis shall be transported so it is not visible or

 

 

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1recognizable from outside the vehicle.
2    (m) A vehicle transporting cannabis must not bear any
3markings to indicate the vehicle contains cannabis or bear the
4name or logo of the cannabis business establishment.
5    (n) Cannabis must be transported in an enclosed, locked
6storage compartment that is secured or affixed to the vehicle.
7    (o) The Department of Agriculture may, by rule, impose any
8other requirements or prohibitions on the transportation of
9cannabis.
10(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
11102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
125-13-22.)
 
13    (410 ILCS 705/55-20)
14    Sec. 55-20. Advertising and promotions.
15    (a) No cannabis business establishment nor any other
16person or entity shall engage in advertising that contains any
17statement or illustration that:
18        (1) is false or misleading;
19        (2) promotes overconsumption of cannabis or cannabis
20    products;
21        (3) depicts the actual consumption of cannabis or
22    cannabis products;
23        (4) depicts a person under 21 years of age consuming
24    cannabis;
25        (5) makes any health, medicinal, or therapeutic claims

 

 

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1    about cannabis or cannabis-infused products;
2        (6) includes the image of a cannabis leaf or bud; or
3        (7) includes any image designed or likely to appeal to
4    minors, including cartoons, toys, animals, or children, or
5    any other likeness to images, characters, or phrases that
6    is designed in any manner to be appealing to or encourage
7    consumption by persons under 21 years of age; or .
8        (8) includes a description of, or reference to, a
9    cannabis product as "craft" unless the cannabis product or
10    the raw material used to create the cannabis product is
11    produced by a craft grower licensed under this Act.
12    (b) No cannabis business establishment nor any other
13person or entity shall place or maintain, or cause to be placed
14or maintained, an advertisement of cannabis or a
15cannabis-infused product in any form or through any medium:
16        (1) within 1,000 feet of the perimeter of school
17    grounds, a playground, a recreation center or facility, a
18    child care center, a public park or public library, or a
19    game arcade to which admission is not restricted to
20    persons 21 years of age or older;
21        (2) on or in a public transit vehicle or public
22    transit shelter;
23        (3) on or in publicly owned or publicly operated
24    property; or
25        (4) that contains information that:
26            (A) is false or misleading;

 

 

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1            (B) promotes excessive consumption;
2            (C) depicts a person under 21 years of age
3        consuming cannabis;
4            (D) includes the image of a cannabis leaf; or
5            (E) includes any image designed or likely to
6        appeal to minors, including cartoons, toys, animals,
7        or children, or any other likeness to images,
8        characters, or phrases that are popularly used to
9        advertise to children, or any imitation of candy
10        packaging or labeling, or that promotes consumption of
11        cannabis.
12    (c) Subsections (a) and (b) do not apply to an educational
13message.
14    (d) Sales promotions. No cannabis business establishment
15nor any other person or entity may encourage the sale of
16cannabis or cannabis products by giving away cannabis or
17cannabis products, by conducting games or competitions related
18to the consumption of cannabis or cannabis products, or by
19providing promotional materials or activities of a manner or
20type that would be appealing to children.
21(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
22    (410 ILCS 705/60-10)
23    Sec. 60-10. Tax imposed.
24    (a) Beginning September 1, 2019, a tax is imposed upon the
25privilege of cultivating cannabis at the rate of 7% of the

 

 

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1gross receipts from the first sale of cannabis by a
2cultivator. The sale of any product that contains any amount
3of cannabis or any derivative thereof is subject to the tax
4under this Section on the full selling price of the product.
5The Department may determine the selling price of the cannabis
6when the seller and purchaser are affiliated persons, when the
7sale and purchase of cannabis is not an arm's length
8transaction, or when cannabis is transferred by a craft grower
9to the craft grower's dispensing organization or infuser or
10processing organization and a value is not established for the
11cannabis. The value determined by the Department shall be
12commensurate with the actual price received for products of
13like quality, character, and use in the area. If there are no
14sales of cannabis of like quality, character, and use in the
15same area, then the Department shall establish a reasonable
16value based on sales of products of like quality, character,
17and use in other areas of the State, taking into consideration
18any other relevant factors.
19    (b) The Cannabis Cultivation Privilege Tax imposed under
20this Article is solely the responsibility of the cultivator
21who makes the first sale and is not the responsibility of a
22subsequent purchaser, a dispensing organization, or an
23infuser. Persons subject to the tax imposed under this Article
24may, however, reimburse themselves for their tax liability
25hereunder by separately stating reimbursement for their tax
26liability as an additional charge.

 

 

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1    (c) The tax imposed under this Article shall be in
2addition to all other occupation, privilege, or excise taxes
3imposed by the State of Illinois or by any unit of local
4government.
5    (d) The Cannabis Cultivation Privilege Tax imposed under
6this Article shall not be assessed against or collected from
7any craft grower awarded a license during the first group of
8licenses issued by the Department of Agriculture under Section
930-5 until 2 years after the date the craft grower was awarded
10the license.
11(Source: P.A. 101-27, eff. 6-25-19.)