Sen. Kimberly A. Lightford
Filed: 5/9/2024
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1 | AMENDMENT TO SENATE BILL 776 | ||||||
2 | AMENDMENT NO. ______. Amend Senate Bill 776 by replacing | ||||||
3 | everything after the enacting clause with the following: | ||||||
4 | "Article 1. | ||||||
5 | Short title; Definitions | ||||||
6 | Section 1-1. Short title. This Act may be cited as the Hemp | ||||||
7 | Cannabinoid Products Act. References to "this Act" in Articles | ||||||
8 | 1 through 40 of this Act mean Articles 1 through 40 of this | ||||||
9 | Act. | ||||||
10 | Section 1-5. Definitions. In this Act: | ||||||
11 | "Accreditation body" means an impartial nonprofit | ||||||
12 | organization that operates in conformance with the | ||||||
13 | International Organization for Standardization | ||||||
14 | (ISO)/International Electrotechnical Commission (IEC) | ||||||
15 | standard 17011 and is a signatory to the International |
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1 | Laboratory Accreditation Cooperation (ILAC) Mutual Recognition | ||||||
2 | Arrangement (MRA) for Testing. | ||||||
3 | "Batch" means a specific quantity of a specific | ||||||
4 | cannabinoid product that is manufactured during the same batch | ||||||
5 | cycle. | ||||||
6 | "Batch cycle" means a specific quantity of a specific | ||||||
7 | cannabinoid product that is manufactured using the same | ||||||
8 | methods, equipment, and ingredients that is uniform and | ||||||
9 | intended to meet specifications for identity, strength, | ||||||
10 | purity, and composition and that is manufactured, packaged, | ||||||
11 | and labeled according to a batch cycle production record | ||||||
12 | executed and documented during the same cycle of manufacture. | ||||||
13 | "Broad spectrum" means a hemp extract or hemp extract | ||||||
14 | derived product containing multiple hemp-derived cannabinoids, | ||||||
15 | terpenes, and other naturally occurring compounds, processed | ||||||
16 | with the intentional removal of delta-9 Tetrahydrocannabinol. | ||||||
17 | "Department" means the Department of Agriculture. | ||||||
18 | "Director" means the Director of Agriculture. | ||||||
19 | "Full spectrum" means a hemp concentrate or hemp | ||||||
20 | concentrate product cannabinoid product containing multiple | ||||||
21 | hemp-derived cannabinoids, terpenes, and other naturally | ||||||
22 | occurring compounds processed without intentional complete | ||||||
23 | removal of any compound and without the addition of isolated | ||||||
24 | cannabinoids. | ||||||
25 | "Hemp business establishment" means a hemp cultivator, | ||||||
26 | hemp processor, hemp distributor, hemp infuser, or any other |
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1 | business licensed by the Department of Agriculture under this | ||||||
2 | Act. | ||||||
3 | "Hemp cannabinoid" means the chemical constituents of | ||||||
4 | industrial hemp plants that are naturally occurring and | ||||||
5 | derived from hemp plants with less than 0.3% delta-9 THC as | ||||||
6 | tested on a dry weight basis. | ||||||
7 | "Hemp cannabinoid product" means a finished product for | ||||||
8 | sale to consumer within the State that contains cannabinoids | ||||||
9 | derived from industrial hemp, is intended for human | ||||||
10 | consumption, and meets the packaging, labeling, and testing | ||||||
11 | requirements of this Act. | ||||||
12 | "Hemp concentrate" means the extracts and resins of a hemp | ||||||
13 | plant or hemp plant parts, including the extracts or resins of | ||||||
14 | a hemp plant or hemp plant parts that are refined to increase | ||||||
15 | or decrease the presence of targeted cannabinoids intended to | ||||||
16 | cause an intoxicating effect or having a total milligram by | ||||||
17 | volume over 0.5 milligrams per serving or 2 milligrams per | ||||||
18 | packaging of delta-9-tetrahydrocannabinol or | ||||||
19 | delta-8-tetrahydrocannabinol, including any other substance | ||||||
20 | containing THC. | ||||||
21 | "Hemp concentrate derived products" means a product | ||||||
22 | intended for human consumption that is derived from hemp | ||||||
23 | concentrate and meets the labeling and potency requirements | ||||||
24 | set forth in this Act. | ||||||
25 | "Hemp concentrate infuser" means the establishment that | ||||||
26 | takes intermediate hemp products, hemp extract, or hemp |
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1 | concentrate and infuses it with products intended for human | ||||||
2 | consumption that meets the labeling and potency limits set | ||||||
3 | forth in this Act. | ||||||
4 | "Hemp concentrate infuser agent" means a principal | ||||||
5 | officer, employee, or agent of a hemp concentrate infuser who | ||||||
6 | is 21 years of age or older. | ||||||
7 | "Hemp concentrate infuser agent identification card" means | ||||||
8 | a document issued by the Department of Agriculture that | ||||||
9 | identifies a person as a hemp concentrate infuser agent. | ||||||
10 | "Hemp concentrate retailer" means the establishment where | ||||||
11 | hemp cannabinoid products, hemp extract derived products, or | ||||||
12 | hemp concentrate derived products may be sold to consumers. | ||||||
13 | "Hemp concentrate retail agent" means a principal officer, | ||||||
14 | employee, or agent of a hemp concentrate retailer who is 21 | ||||||
15 | years of age or older. | ||||||
16 | "Hemp concentrate retail agent identification card" means | ||||||
17 | a document issued by the Department of Agriculture that | ||||||
18 | identifies a person as a hemp concentrate retail agent. | ||||||
19 | "Hemp extract" means a substance or compound intended for | ||||||
20 | ingestion or inhalations that is derived from or contains hemp | ||||||
21 | and that does not contain other controlled substances or | ||||||
22 | resins of a hemp plant or hemp plant parts that are refined to | ||||||
23 | increase or decrease the presence of targeted cannabinoids. | ||||||
24 | "Hemp distributor" means a business that transports | ||||||
25 | intermediate hemp product, hemp extract, hemp concentrate, or | ||||||
26 | raw hemp to hemp infusers, processors, testing facilities, or |
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1 | retail locations licensed by the Department of Financial and | ||||||
2 | Professional Regulation or Department of Agriculture. | ||||||
3 | "Hemp distributor agent" means a principal officer, | ||||||
4 | employee, or agent of a hemp distributor who is 21 years of age | ||||||
5 | or older. | ||||||
6 | "Hemp distributor agent identification card" means a | ||||||
7 | document issued by the Department of Agriculture that | ||||||
8 | identifies a person as a hemp distributor agent. | ||||||
9 | "Hemp extract derived products" means a product intended | ||||||
10 | for human consumptions that is derived from hemp extract and | ||||||
11 | meets the labeling and potency limits set forth in this Act and | ||||||
12 | does not contain more than 0.5 milligrams per serving or 2 | ||||||
13 | milligrams per package of delta-8 or delta-9 THC derived from | ||||||
14 | any naturally occurring cannabinoids found in hemp. | ||||||
15 | "Hemp extract infuser" means the establishment that takes | ||||||
16 | intermediate hemp products or hemp extract and infuses it with | ||||||
17 | products intended for human consumption that meets the | ||||||
18 | labeling and potency limits set forth in this Act for a hemp | ||||||
19 | extract product. | ||||||
20 | "Hemp processor" means the establishment that removes the | ||||||
21 | hemp extract from the hemp plant or refines or isomerizes the | ||||||
22 | hemp extract into hemp concentrate for use in an intermediate | ||||||
23 | hemp product. | ||||||
24 | "Hemp processor agent" means a principal officer, | ||||||
25 | employee, or agent of a hemp processor who is 21 years of age | ||||||
26 | or older. |
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1 | "Hemp processor agent identification card" means a | ||||||
2 | document issued by the Department of Agriculture that | ||||||
3 | identifies a person as a hemp processor agent. | ||||||
4 | "Hemp retailer" means the establishment where hemp | ||||||
5 | cannabinoid products or hemp extract derived products may be | ||||||
6 | sold to consumers. | ||||||
7 | "Imported hemp" means industrial hemp that incorporates | ||||||
8 | raw hemp or intermediate hemp products not produced in | ||||||
9 | Illinois. | ||||||
10 | "Intermediate hemp product" means a product that is made | ||||||
11 | from hemp concentrate that can only be sold to hemp business | ||||||
12 | establishments to be used as ingredients for other | ||||||
13 | intermediate hemp products or hemp concentrate derived | ||||||
14 | products for human consumption. | ||||||
15 | "Scope of accreditation" means a document issued by an | ||||||
16 | accreditation body that attests to the laboratory's competence | ||||||
17 | to carry out specific testing and analysis. | ||||||
18 | "Social Equity Applicant" has the meaning given to that | ||||||
19 | term in Section 1-10 of the Cannabis Regulation and Tax Act. | ||||||
20 | "Testing laboratory" means an independent, third-party | ||||||
21 | laboratory contracted by a licensee to test hemp cannabinoid | ||||||
22 | products. | ||||||
23 | "Tetrahydrocannabinol" or "THC" means any naturally | ||||||
24 | occurring or synthetic tetrahydrocannabinol, including its | ||||||
25 | salts, isomers, and salts of isomers whenever the existence of | ||||||
26 | such salts, isomers, and salts of isomers is possible within |
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1 | the specific chemical designation and any preparation, | ||||||
2 | mixture, or substance containing, or mixed or infused with, | ||||||
3 | any detectable amount of tetrahydrocannabinol or | ||||||
4 | tetrahydrocannabolic acid, including, but not limited to, | ||||||
5 | delta-8-tetrahydrocannabinol, delta-9-tetrahydrocannabinol, | ||||||
6 | delta-10-tetrahydrocannabinol, tetrahydrocannabolic acid, | ||||||
7 | tetrahydrocannabipherol, or hexahydrocannabinol, however | ||||||
8 | derived, or any other substance determined to have similar | ||||||
9 | intoxicating effects on the mind or body by the Department. | ||||||
10 | For the purposes of this definition, "isomer" means the | ||||||
11 | optical, position, and geometric isomers. | ||||||
12 | Article 5. | ||||||
13 | General Provisions | ||||||
14 | Section 5-5. Prohibitions. | ||||||
15 | (a) No person shall process, manufacture, label, | ||||||
16 | distribute for sale, sell, offer for sale, market, or | ||||||
17 | advertise any hemp cannabinoid product within this State | ||||||
18 | without obtaining a license under this Act. | ||||||
19 | (b) No licensee shall distribute for sale, offer for sale, | ||||||
20 | market, or advertise intermediate hemp products or hemp | ||||||
21 | concentrate to a person or entity that is not a licensed hemp | ||||||
22 | business establishment. | ||||||
23 | (c) No hemp retailer shall distribute for sale, offer for | ||||||
24 | sale, market, or advertise hemp concentrate products. |
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1 | (d) No licensee shall process, manufacture, distribute for | ||||||
2 | sale, sell, offer for sale, market, or advertise any hemp | ||||||
3 | cannabinoid product unless the product complies with the | ||||||
4 | labeling, packaging, minimum testing, and other requirements | ||||||
5 | of this Act and any administrative rules adopted by the | ||||||
6 | Department. | ||||||
7 | (e) A product that has a THC concentration greater than | ||||||
8 | the limits set forth for hemp cannabinoid products as defined | ||||||
9 | in this Act shall be regulated as cannabis as defined in the | ||||||
10 | Cannabis Regulation and Tax Act, whether or not the product is | ||||||
11 | made with or derived from hemp, industrial hemp, or derived | ||||||
12 | from natural or synthetic sources. | ||||||
13 | (f) No product intended for consumption by any means that | ||||||
14 | is derived from hemp or marketed as hemp shall be distributed | ||||||
15 | for sale, offered for sale, or sold to a consumer within this | ||||||
16 | State unless it meets the minimum requirements of this Act. | ||||||
17 | Article 10. | ||||||
18 | Hemp Retailers | ||||||
19 | Section 10-5. Authority. | ||||||
20 | (a) The Department shall administer and enforce the | ||||||
21 | provisions of this Act relating to the licensure and oversight | ||||||
22 | of licensure of a hemp retailer unless otherwise provided in | ||||||
23 | this Act. | ||||||
24 | (b) No person shall operate a hemp retailer organization |
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1 | for the purpose of serving purchasers of hemp extract derived | ||||||
2 | products without a license issued under this Article by the | ||||||
3 | Department. | ||||||
4 | (c) Subject to this Act, the Department may exercise the | ||||||
5 | following powers and duties: | ||||||
6 | (1) Prescribe forms to be issued for the | ||||||
7 | administration and enforcement of this Article. | ||||||
8 | (2) Examine, inspect, and investigate the premises, | ||||||
9 | operations, and records of hemp retail organization | ||||||
10 | applicants and licensees. | ||||||
11 | (3) Conduct investigations of possible violations of | ||||||
12 | this Act pertaining to the hemp retail organization. | ||||||
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 | Section 10-10. Application for hemp retailers. An | ||||||
20 | applicant seeking issuance of a license as a hemp retailer | ||||||
21 | shall submit an application on forms provided by the | ||||||
22 | Department. An applicant must meet the following requirements: | ||||||
23 | (1) payment of a nonrefundable application fee of $100 | ||||||
24 | for each license for which the applicant is applying, | ||||||
25 | which shall be deposited into the Cannabis Regulation |
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1 | Fund; | ||||||
2 | (2) certification that the applicant will comply with | ||||||
3 | the requirements contained in this Act; | ||||||
4 | (3) the legal name of the proposed hemp retailer; | ||||||
5 | (4) a statement that the hemp retailer agrees to | ||||||
6 | respond to the Department's supplemental requests for | ||||||
7 | information; | ||||||
8 | (5) a resume for each principal officer, including | ||||||
9 | whether that person has an academic degree, certification, | ||||||
10 | or relevant experience with a hemp business establishment | ||||||
11 | or in a related industry; | ||||||
12 | (6) a copy of the proposed operating bylaws; | ||||||
13 | (7) a copy of the proposed business plan that complies | ||||||
14 | with the requirements in this Act; | ||||||
15 | (8) a proposed floor plan, including a square footage | ||||||
16 | estimate; | ||||||
17 | (9) the name, address, social security number, and | ||||||
18 | date of birth of each principal officer and board member | ||||||
19 | of the retailer; each principal officer and board member | ||||||
20 | shall be at least 21 years of age; | ||||||
21 | (10) the address, telephone number, and email address | ||||||
22 | of the applicant's principal place of business, if | ||||||
23 | applicable. A post office box is not permitted; | ||||||
24 | (11) written summaries of any information regarding | ||||||
25 | instances in which a business or nonprofit organization | ||||||
26 | that a prospective board member previously managed or |
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1 | served on was fined or censured or any instances in which a | ||||||
2 | business or nonprofit organization that a prospective | ||||||
3 | board member previously managed or served on had its | ||||||
4 | registration suspended or revoked in any administrative or | ||||||
5 | judicial proceeding; | ||||||
6 | (12) procedures to ensure accurate recordkeeping; | ||||||
7 | (13) a description of the features that will provide | ||||||
8 | accessibility to purchasers as required by the Americans | ||||||
9 | with Disabilities Act; | ||||||
10 | (14) the dated signature of each principal officer; | ||||||
11 | and | ||||||
12 | (15) any other information deemed necessary by the | ||||||
13 | Department. | ||||||
14 | Section 10-15. Renewal of licenses. | ||||||
15 | (a) A hemp retailer license issued under Section 10-10 | ||||||
16 | shall expire 2 years after the date issued. | ||||||
17 | (b) A license holder shall submit a renewal application as | ||||||
18 | provided by the Department and pay the required renewal fee. | ||||||
19 | The Department shall require an agent, employee, contracting, | ||||||
20 | and subcontracting diversity report and an environmental | ||||||
21 | impact report with its renewal application. No license may be | ||||||
22 | renewed if it is currently under revocation or suspension for | ||||||
23 | violation of this Act, the Cannabis Regulation and Tax Act, or | ||||||
24 | the Industrial Hemp Act or any rules that adopted under this | ||||||
25 | Act, the Cannabis Regulation and Tax Act, or the Industrial |
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1 | Hemp Act or if the licensee, principal officer, board member, | ||||||
2 | person having a financial or voting interest of 5% or greater | ||||||
3 | in the licensee, or agent is delinquent in filing any required | ||||||
4 | tax returns or paying any amounts owed to the State. | ||||||
5 | (c) For a hemp retailer license, $100 shall be paid as a | ||||||
6 | renewal fee and shall be deposited into the Cannabis | ||||||
7 | Regulation Fund. | ||||||
8 | (d) If a hemp retailer fails to renew its license before | ||||||
9 | expiration, the hemp retailer shall cease operations until the | ||||||
10 | license is renewed. | ||||||
11 | (e) A hemp retailer that continues to operate without | ||||||
12 | renewal of its license is subject to penalty as provided in | ||||||
13 | this Article or any rules that may be adopted pursuant to this | ||||||
14 | Article. | ||||||
15 | (f) The Department shall not renew a license if the | ||||||
16 | applicant is delinquent in filing required tax returns or | ||||||
17 | paying amounts owed to the State. | ||||||
18 | Section 10-20 Denial of application. | ||||||
19 | (a) An application for a hemp retailer license must be | ||||||
20 | denied if any of the following conditions are met: | ||||||
21 | (1) The applicant failed to submit the materials | ||||||
22 | required by this Article. | ||||||
23 | (2) The applicant would not be in compliance with | ||||||
24 | local zoning rules or permit requirements. | ||||||
25 | (3) One or more of the prospective principal officers |
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1 | or board members causes a violation of this Act. | ||||||
2 | (4) One or more of the principal officers or board | ||||||
3 | members is under 21 years of age. | ||||||
4 | (5) The person has submitted an application for a | ||||||
5 | license under this Act or this Article that contains false | ||||||
6 | information. | ||||||
7 | (6) If the licensee, principal officer, board member, | ||||||
8 | agent, or person having a financial or voting interest of | ||||||
9 | 5% or greater in the licensee is delinquent in filing any | ||||||
10 | required tax returns or paying any amounts owed to the | ||||||
11 | State of Illinois. | ||||||
12 | Article 15. | ||||||
13 | Hemp Concentrate Retailers | ||||||
14 | Section 15-5. Definitions; issuance of licenses. | ||||||
15 | (a) In this Article: | ||||||
16 | "Department" means the Department of Financial and | ||||||
17 | Professional Regulation. | ||||||
18 | "Secretary" means the Secretary of Financial and | ||||||
19 | Professional Regulation | ||||||
20 | (b) The Department shall issue licenses for hemp | ||||||
21 | concentrate retailers through the process provided for in this | ||||||
22 | Article no later than July 1, 2026. | ||||||
23 | (c) The Department may not issue more than 500 licenses | ||||||
24 | for hemp concentrate retailers under this Article. |
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1 | (d) The Department shall make the application to be | ||||||
2 | licensed as a hemp concentrate retailer available on January | ||||||
3 | 7, 2026 and shall receive any initial applications under this | ||||||
4 | subsection no later than March 15, 2026. | ||||||
5 | (e) Upon completion of the disparity and availability | ||||||
6 | study published by the Illinois Cannabis Regulation Oversight | ||||||
7 | Officer under subsection (e) of Section 5-45 of the Cannabis | ||||||
8 | Regulation and Tax Act, the Department may modify or change | ||||||
9 | the licensing application process to reduce or eliminate | ||||||
10 | barriers and remedy discrimination identified in the study. | ||||||
11 | (f) Beginning January 7, 2027, the Department shall make | ||||||
12 | the applications available and on every January 7 thereafter | ||||||
13 | or, if that date falls on a weekend or holiday, the business | ||||||
14 | day immediately succeeding the weekend or holiday and shall | ||||||
15 | receive any application no later than March 15 or the | ||||||
16 | succeeding business day thereafter. | ||||||
17 | Section 15-10. Authority. | ||||||
18 | (a) The Department shall administer and enforce the | ||||||
19 | provisions of this Act relating to the licensure and oversight | ||||||
20 | of hemp concentrate retailer license holders and hemp | ||||||
21 | concentrate retail agents unless otherwise provided in this | ||||||
22 | Act. | ||||||
23 | (b) No person shall operate a hemp concentrate retail | ||||||
24 | organization for the purpose of serving purchasers of hemp | ||||||
25 | concentrate derived products or hemp extract derived products |
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1 | without a license issued under this Article by the Department. | ||||||
2 | No person shall be an officer, director, manager, or employee | ||||||
3 | of a hemp concentrate retail organization without having been | ||||||
4 | issued a hemp concentrate retail agent card by the Department. | ||||||
5 | (c) Subject to this Act, the Department may exercise the | ||||||
6 | following powers and duties: | ||||||
7 | (1) Prescribe forms to be issued for the | ||||||
8 | administration and enforcement of this Article. | ||||||
9 | (2) Examine, inspect, and investigate the premises, | ||||||
10 | operations, and records of hemp concentrate retail | ||||||
11 | organization applicants and licensees. | ||||||
12 | (3) Conduct investigations of possible violations of | ||||||
13 | this Act pertaining to hemp concentrate retail | ||||||
14 | organization or hemp concentrate retail agents. | ||||||
15 | (4) Conduct hearings on proceedings to refuse to issue | ||||||
16 | or renew licenses or to revoke, suspend, place on | ||||||
17 | probation, reprimand, or otherwise discipline a license | ||||||
18 | under this Article or take other nondisciplinary action. | ||||||
19 | (5) Adopt rules required for the administration of | ||||||
20 | this Article. | ||||||
21 | Section 15-15. Application for hemp concentrate retailers. | ||||||
22 | An applicant seeking issuance of a hemp concentrate retailer | ||||||
23 | shall submit an application on forms provided by the | ||||||
24 | Department. An applicant must meet the following requirements: | ||||||
25 | (1) payment of a nonrefundable application fee of |
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1 | $5,000 for each license for which the applicant is | ||||||
2 | applying, which shall be deposited into the Cannabis | ||||||
3 | Regulation Fund; | ||||||
4 | (2) certification that the applicant will comply with | ||||||
5 | the requirements contained in this Act; | ||||||
6 | (3) the legal name of the proposed hemp concentrate | ||||||
7 | retailer; | ||||||
8 | (4) a statement that the hemp concentrate retailer | ||||||
9 | agrees to respond to the Department's supplemental | ||||||
10 | requests for information; | ||||||
11 | (5) from each principal officer, a statement | ||||||
12 | indicating whether that person: | ||||||
13 | (A) has previously held or currently holds an | ||||||
14 | ownership interest in a cannabis business | ||||||
15 | establishment or a hemp business establishment in this | ||||||
16 | State; or | ||||||
17 | (B) has held an ownership interest in a cannabis | ||||||
18 | dispensing organization, hemp retailer organization, | ||||||
19 | or its equivalent in another state or territory of the | ||||||
20 | United States that had the cannabis dispensing | ||||||
21 | organization registration, hemp retailer organization, | ||||||
22 | or license suspended, revoked, placed on probationary | ||||||
23 | status, or subjected to other disciplinary action; | ||||||
24 | (6) disclosure of whether any principal officer has | ||||||
25 | ever filed for bankruptcy or defaulted on spousal support | ||||||
26 | or child support obligation; |
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1 | (7) a resume for each principal officer, including | ||||||
2 | whether that person has an academic degree, certification, | ||||||
3 | or relevant experience with a hemp business establishment | ||||||
4 | or in a related industry; | ||||||
5 | (8) a description of the training and education that | ||||||
6 | will be provided to hemp concentrate retailer agents; | ||||||
7 | (9) a copy of the proposed operating bylaws; | ||||||
8 | (10) a copy of the proposed business plan that | ||||||
9 | complies with the requirements in this Act, including, at | ||||||
10 | a minimum, the following: | ||||||
11 | (A) a description of services to be offered; and | ||||||
12 | (B) a description of the process of dispensing | ||||||
13 | hemp concentrate products; | ||||||
14 | (11) a copy of the proposed security plan that | ||||||
15 | complies with the requirements in this Act, including: | ||||||
16 | (A) the process or controls that will be | ||||||
17 | implemented to monitor the hemp concentrate retailer, | ||||||
18 | secure the premises, agents, and currency, and prevent | ||||||
19 | the diversion, theft, or loss of hemp concentrate | ||||||
20 | products; and | ||||||
21 | (B) the process to ensure that access to the | ||||||
22 | restricted access areas is restricted to, registered | ||||||
23 | agents, service professionals, hemp distributor | ||||||
24 | agents, Department inspectors, and security personnel; | ||||||
25 | (12) a proposed inventory control plan that complies | ||||||
26 | with this Section; |
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1 | (13) a proposed floor plan, including a square footage | ||||||
2 | estimate, and a description of proposed security devices, | ||||||
3 | including, without limitation, cameras, motion detectors, | ||||||
4 | servers, video storage capabilities, and alarm service | ||||||
5 | providers; | ||||||
6 | (14) the name, address, social security number, and | ||||||
7 | date of birth of each principal officer and board member | ||||||
8 | of the hemp concentrate retailer; each of those | ||||||
9 | individuals shall be at least 21 years of age; | ||||||
10 | (15) the address, telephone number, and email address | ||||||
11 | of the applicant's principal place of business, if | ||||||
12 | applicable. A post office box is not permitted; | ||||||
13 | (16) written summaries of any information regarding | ||||||
14 | instances in which a business or nonprofit organization | ||||||
15 | that a prospective board member previously managed or | ||||||
16 | served on was fined or censured or any instances in which a | ||||||
17 | business or nonprofit organization that a prospective | ||||||
18 | board member previously managed or served on had its | ||||||
19 | registration suspended or revoked in any administrative or | ||||||
20 | judicial proceeding; | ||||||
21 | (17) a plan for community engagement; | ||||||
22 | (18) procedures to ensure accurate recordkeeping and | ||||||
23 | security measures that are in accordance with this Article | ||||||
24 | and Department rules; | ||||||
25 | (19) the estimated volume of hemp concentrate products | ||||||
26 | it plans to store at the hemp concentrate retailer; |
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1 | (20) a description of the features that will provide | ||||||
2 | accessibility to purchasers, as required by the Americans | ||||||
3 | with Disabilities Act; | ||||||
4 | (21) a detailed description of air treatment systems | ||||||
5 | that will be installed to reduce odors; | ||||||
6 | (22) a reasonable assurance that the issuance of a | ||||||
7 | license will not have a detrimental impact on the | ||||||
8 | community in which the applicant wishes to locate; | ||||||
9 | (23) the dated signature of each principal officer; | ||||||
10 | (24) a description of the enclosed, locked facility | ||||||
11 | where hemp concentrate products will be stored by the hemp | ||||||
12 | concentrate retailer; | ||||||
13 | (25) signed statements from each hemp concentrate | ||||||
14 | retailer agent stating that he or she will not divert hemp | ||||||
15 | concentrate products; | ||||||
16 | (26) a diversity plan that includes a narrative of at | ||||||
17 | least 2,500 words that establishes a goal of diversity in | ||||||
18 | ownership, management, employment, and contracting to | ||||||
19 | ensure that diverse participants and groups are afforded | ||||||
20 | equality of opportunity; | ||||||
21 | (27) a contract with a private security contractor | ||||||
22 | that is licensed under Section 10-5 of the Private | ||||||
23 | Detective, Private Alarm, Private Security, Fingerprint | ||||||
24 | Vendor, and Locksmith Act of 2004 in order for the hemp | ||||||
25 | concentrate retailer to have adequate security at its | ||||||
26 | facility; and |
| |||||||
| |||||||
1 | (28) any other information deemed necessary by the | ||||||
2 | Illinois Cannabis Regulation Oversight Officer to conduct | ||||||
3 | the disparity and availability study referenced in | ||||||
4 | subsection (e) of Section 5-45 of the Cannabis Regulation | ||||||
5 | and Tax Act. | ||||||
6 | Section 15-20. Selection criteria for a hemp concentrate | ||||||
7 | license. | ||||||
8 | (a) An applicant for a hemp concentrate license must | ||||||
9 | submit all required information, including the information | ||||||
10 | required under Section 15-15, to the Department. Failure by an | ||||||
11 | applicant to submit all required information may result in the | ||||||
12 | application being disqualified. | ||||||
13 | (b) If the Department receives an application that fails | ||||||
14 | to provide the required elements contained in this Section, | ||||||
15 | the Department shall issue a deficiency notice to the | ||||||
16 | applicant. The applicant shall have 10 calendar days from the | ||||||
17 | date of the deficiency notice to resubmit the incomplete | ||||||
18 | information. Applications that are still incomplete after this | ||||||
19 | opportunity to cure will not be scored and will be | ||||||
20 | disqualified. | ||||||
21 | (c) The Department shall, by rule, develop a system to | ||||||
22 | score hemp concentrate license applications to | ||||||
23 | administratively rank applications based on the clarity, | ||||||
24 | organization, and quality of the applicant's responses to | ||||||
25 | required information. Applicants shall be awarded points based |
| |||||||
| |||||||
1 | on the following categories: | ||||||
2 | (1) Suitability of employee training plan. The plan | ||||||
3 | includes an employee training plan that demonstrates that | ||||||
4 | employees will understand the rules and laws to be | ||||||
5 | followed by hemp concentrate retail agents, have knowledge | ||||||
6 | of any security measures and operating procedures of the | ||||||
7 | hemp concentrate retailer, and are able to advise | ||||||
8 | purchasers on how to safely consume hemp concentrate | ||||||
9 | derived products and use individual products offered by | ||||||
10 | the hemp concentrate retailers. | ||||||
11 | (2) Security and recordkeeping. | ||||||
12 | (A) The security plan accounts for the prevention | ||||||
13 | of the theft or diversion of hemp concentrate derived | ||||||
14 | product. The security plan demonstrates safety | ||||||
15 | procedures for hemp concentrate retail agents and | ||||||
16 | purchasers, and safe delivery and storage of hemp | ||||||
17 | concentrate derived products and currency. It | ||||||
18 | demonstrates compliance with all security requirements | ||||||
19 | in this Act and rules. | ||||||
20 | (B) A plan for recordkeeping, tracking, and | ||||||
21 | monitoring inventory, quality control, and other | ||||||
22 | policies and procedures that will promote standard | ||||||
23 | recordkeeping and discourage unlawful activity. This | ||||||
24 | plan includes the applicant's strategy to communicate | ||||||
25 | with the Department and the Illinois State Police on | ||||||
26 | the destruction and disposal of hemp concentrate |
| |||||||
| |||||||
1 | derived products. The plan must also demonstrate | ||||||
2 | compliance with this Act and rules. | ||||||
3 | (C) The security plan shall also detail which | ||||||
4 | private security contractor licensed under Section | ||||||
5 | 10-5 of the Private Detective, Private Alarm, Private | ||||||
6 | Security, Fingerprint Vendor, and Locksmith Act of | ||||||
7 | 2004 the dispensary will contract with in order to | ||||||
8 | provide adequate security at its facility. | ||||||
9 | (3) The applicant's business plan, finances, | ||||||
10 | operating, and floor plan. | ||||||
11 | (A) The business plan shall describe, at a | ||||||
12 | minimum, how the retailer will be managed on a | ||||||
13 | long-term basis. This shall include a description of | ||||||
14 | the retailer's point-of-sale system, purchases and | ||||||
15 | denials of sale, confidentiality, and products and | ||||||
16 | services to be offered. It must demonstrate compliance | ||||||
17 | with this Act and rules. | ||||||
18 | (B) The operating plan shall include, at a | ||||||
19 | minimum, best practices for day-to-day retailer | ||||||
20 | operation and staffing. The operating plan may also | ||||||
21 | include information about employment practices, | ||||||
22 | including information about the percentage of | ||||||
23 | full-time employees who will be provided a living | ||||||
24 | wage. | ||||||
25 | (C) The proposed floor plan is suitable for public | ||||||
26 | access, promotes safe sale of hemp concentrate derived |
| |||||||
| |||||||
1 | products, is compliant with the Americans with | ||||||
2 | Disabilities Act and the Environmental Barriers Act, | ||||||
3 | and facilitates safe product handling and storage. | ||||||
4 | (4) Knowledge and experience. | ||||||
5 | (A) The applicant's principal officers must | ||||||
6 | demonstrate experience and qualifications in business | ||||||
7 | management or experience with the hemp industry. This | ||||||
8 | includes ensuring optimal safety and accuracy in sale | ||||||
9 | of hemp cannabinoid products. | ||||||
10 | (B) The applicant's principal officers must | ||||||
11 | demonstrate knowledge of various hemp cannabinoids or | ||||||
12 | varieties and describe the types and quantities of | ||||||
13 | products planned to be sold. This includes | ||||||
14 | confirmation of whether the hemp concentrate retailer | ||||||
15 | plans to sell consumption paraphernalia or edibles. | ||||||
16 | (C) Knowledge and experience may be demonstrated | ||||||
17 | through experience in other comparable industries that | ||||||
18 | reflect on the applicant's ability to operate a hemp | ||||||
19 | business establishment. | ||||||
20 | (5) Labor and employment practices. The applicant may | ||||||
21 | describe plans to provide a safe, healthy, and | ||||||
22 | economically beneficial working environment for its | ||||||
23 | agents, including, but not limited to, codes of conduct, | ||||||
24 | health care benefits, educational benefits, retirement | ||||||
25 | benefits, living wage standards, and entering a labor | ||||||
26 | peace agreement with employees. |
| |||||||
| |||||||
1 | (6) Environmental plan. The applicant may demonstrate | ||||||
2 | an environmental plan of action to minimize the carbon | ||||||
3 | footprint, environmental impact, and resource needs for | ||||||
4 | the hemp concentrate retailer, which may include, without | ||||||
5 | limitation, recycling hemp cannabinoid product packaging. | ||||||
6 | (7) Illinois owner. The applicant is 51% or more owned | ||||||
7 | and controlled by an resident of this State who can prove | ||||||
8 | residency in each of the past 5 years with tax records or 2 | ||||||
9 | of the following: | ||||||
10 | (A) a signed lease agreement that includes the | ||||||
11 | applicant's name; | ||||||
12 | (B) a property deed that includes the applicant's | ||||||
13 | name; | ||||||
14 | (C) school records; | ||||||
15 | (D) a voter registration card; | ||||||
16 | (E) an Illinois driver's license, an Illinois | ||||||
17 | Identification Card, or an Illinois Person with a | ||||||
18 | Disability Identification Card; | ||||||
19 | (F) a paycheck stub; | ||||||
20 | (G) a utility bill; or | ||||||
21 | (H) any other proof of residency or other | ||||||
22 | information necessary to establish residence as | ||||||
23 | provided by rule. | ||||||
24 | (8) Status as veteran. The applicant is 51% or more | ||||||
25 | controlled and owned by an individual or individuals who | ||||||
26 | meet the qualifications of a veteran, as that term is |
| |||||||
| |||||||
1 | defined by Section 45-57 of the Illinois Procurement Code. | ||||||
2 | (9) A diversity plan (5% of the total points that may | ||||||
3 | be awarded). The plan includes a narrative of not more | ||||||
4 | than 2,500 words that establishes a goal of diversity in | ||||||
5 | ownership, management, employment, and contracting to | ||||||
6 | ensure that diverse participants and groups are afforded | ||||||
7 | equality of opportunity. | ||||||
8 | (d) The Department may verify information contained in | ||||||
9 | each application and accompanying documentation to assess the | ||||||
10 | applicant's veracity and fitness to operate a hemp concentrate | ||||||
11 | retail organization. | ||||||
12 | (e) The Department may, in its discretion, refuse to issue | ||||||
13 | an authorization to any applicant who: | ||||||
14 | (1) is unqualified to perform the duties required of | ||||||
15 | the applicant; | ||||||
16 | (2) fails to disclose or states falsely any | ||||||
17 | information called for in the application; | ||||||
18 | (3) has been found guilty of a violation of this Act, | ||||||
19 | who has had any disciplinary order entered against it by | ||||||
20 | the Department, who has entered into a disciplinary or | ||||||
21 | nondisciplinary agreement with the Department, or whose | ||||||
22 | medical cannabis dispensing organization, medical cannabis | ||||||
23 | cultivation organization, Early Approval Adult Use | ||||||
24 | Dispensing Organization License, Early Approval Adult Use | ||||||
25 | Dispensing Organization License at a secondary site, Early | ||||||
26 | Approval Cultivation Center License, Conditional Adult Use |
| |||||||
| |||||||
1 | Cannabis Dispensing Organization License, Adult Use | ||||||
2 | Cannabis Dispensing Organization License, or hemp retail | ||||||
3 | license was suspended, restricted, revoked, or denied for | ||||||
4 | just cause or the applicant's cannabis business | ||||||
5 | establishment license or hemp business establishment | ||||||
6 | license was suspended, restricted, revoked, or denied in | ||||||
7 | any other state; or | ||||||
8 | (4) has engaged in a pattern or practice of unfair or | ||||||
9 | illegal practices, methods, or activities in the conduct | ||||||
10 | of owning a cannabis business establishment, hemp business | ||||||
11 | establishment or other business. | ||||||
12 | (f) The Department shall deny the license if any principal | ||||||
13 | officer, board member, or person having a financial or voting | ||||||
14 | interest of 5% or greater in the licensee is delinquent in | ||||||
15 | filing any required tax returns or paying any amounts owed to | ||||||
16 | the State of Illinois. | ||||||
17 | (g) The Department shall verify an applicant's compliance | ||||||
18 | with the requirements of this Article and rules before issuing | ||||||
19 | a hemp concentrate retailer license. | ||||||
20 | (h) If an applicant is awarded a license, the information | ||||||
21 | and plans provided in the application shall become a condition | ||||||
22 | of the hemp concentrate retailer license except as otherwise | ||||||
23 | provided by this Act or rule. Hemp concentrate retailer | ||||||
24 | organizations shall have a duty to disclose any material | ||||||
25 | changes to the application. The Department shall review all | ||||||
26 | material changes disclosed by the hemp concentrate retailer |
| |||||||
| |||||||
1 | and may reevaluate its prior decision regarding the awarding | ||||||
2 | of a license, including, but not limited to, suspending or | ||||||
3 | permanently revoking a license. Failure to comply with the | ||||||
4 | conditions or requirements in the application may subject the | ||||||
5 | hemp concentrate retailer to discipline, up to and including | ||||||
6 | suspension or permanent revocation of its authorization or | ||||||
7 | license by the Department. | ||||||
8 | Section 15-25. Hemp concentrate retailer agent | ||||||
9 | identification card; agent training. | ||||||
10 | (a) The Department shall: | ||||||
11 | (1) verify the information contained in an application | ||||||
12 | or renewal for a hemp concentrate retailer agent | ||||||
13 | identification card submitted under this Article, and | ||||||
14 | approve or deny an application or renewal, within 30 days | ||||||
15 | of receiving a completed application or renewal | ||||||
16 | application and all supporting documentation required by | ||||||
17 | rule; | ||||||
18 | (2) issue a hemp concentrate retailer agent | ||||||
19 | identification card to a qualifying agent within 15 | ||||||
20 | business days of approving the application or renewal; | ||||||
21 | (3) enter the registry identification number of the | ||||||
22 | hemp concentrate retailer where the agent works; | ||||||
23 | (4) within one year from the effective date of this | ||||||
24 | Act, allow for an electronic application process and | ||||||
25 | provide a confirmation by electronic or other methods that |
| |||||||
| |||||||
1 | an application has been submitted; and | ||||||
2 | (5) collect a $100 nonrefundable fee from the | ||||||
3 | applicant to be deposited into the Cannabis Regulation | ||||||
4 | Fund. | ||||||
5 | (b) A hemp concentrate retailer agent must keep the | ||||||
6 | agent's hemp concentrate retailer agent identification card | ||||||
7 | visible at all times when in the hemp concentrate retailer. | ||||||
8 | (c) The hemp concentrate retailer agent identification | ||||||
9 | card shall contain the following: | ||||||
10 | (1) the name of the cardholder; | ||||||
11 | (2) the date of issuance and expiration date of the | ||||||
12 | hemp concentrate retailer agent 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 cardholder; and | ||||||
16 | (4) a photograph of the cardholder. | ||||||
17 | (d) The hemp concentrate retailer agent identification | ||||||
18 | card shall be immediately returned to the hemp concentrate | ||||||
19 | retailer upon termination of employment. | ||||||
20 | (e) The Department shall not issue a hemp concentrate | ||||||
21 | retailer agent identification card if the applicant is | ||||||
22 | delinquent in filing any required tax returns or paying any | ||||||
23 | amounts owed to the State of Illinois. | ||||||
24 | (f) Any card lost by a hemp concentrate retailer agent | ||||||
25 | shall be reported to the Illinois State Police and the | ||||||
26 | Department immediately upon discovery of the loss. |
| |||||||
| |||||||
1 | (g) An applicant shall be denied a hemp concentrate | ||||||
2 | retailer agent identification card renewal if the applicant | ||||||
3 | fails to complete the training provided for in this Section. | ||||||
4 | (h) Each owner, manager, employee, and agent of a hemp | ||||||
5 | concentrate retailer shall successfully complete hemp | ||||||
6 | concentrate retail sales training, including completing a | ||||||
7 | responsible vendor program, as follows: | ||||||
8 | (1) 90 days after employment at a licensed hemp | ||||||
9 | concentrate retailer or 90 days after the hemp concentrate | ||||||
10 | retailers receives a license, all owners, managers, | ||||||
11 | employees, and agents involved in the handling or sale of | ||||||
12 | hemp concentrate derived products shall attend and | ||||||
13 | successfully complete a responsible vendor program and | ||||||
14 | annually thereafter. | ||||||
15 | (2) Responsible vendor program training modules shall | ||||||
16 | include at least 2 hours of instruction time approved by | ||||||
17 | the Department, including: | ||||||
18 | (A) Health and safety concerns of hemp concentrate | ||||||
19 | derived products use, including the responsible use of | ||||||
20 | hemp concentrate derived products, its physical | ||||||
21 | effects, onset of physiological effects, recognizing | ||||||
22 | signs of impairment, and appropriate responses in the | ||||||
23 | event of overconsumption. | ||||||
24 | (B) Training on laws and regulations on driving | ||||||
25 | while under the influence and operating a watercraft | ||||||
26 | or snowmobile while under the influence. |
| |||||||
| |||||||
1 | (C) Sales to minors prohibition, including | ||||||
2 | covering all relevant Illinois laws and rules. | ||||||
3 | (D) Quantity limitations on sales to purchasers, | ||||||
4 | including covering all relevant Illinois laws and | ||||||
5 | rules. | ||||||
6 | (E) Acceptable forms of identification, including: | ||||||
7 | (i) how to check identification; and | ||||||
8 | (ii) common mistakes made in verification. | ||||||
9 | (F) Safe storage of hemp concentrate derived | ||||||
10 | products. | ||||||
11 | (G) Compliance with all inventory tracking system | ||||||
12 | regulations. | ||||||
13 | (H) Waste handling, management, and disposal. | ||||||
14 | (I) Health and safety standards. | ||||||
15 | (J) Maintenance of records. | ||||||
16 | (K) Security and surveillance requirements. | ||||||
17 | (L) Permitting inspections by State and local | ||||||
18 | licensing and enforcement authorities. | ||||||
19 | (M) Privacy issues. | ||||||
20 | (N) Packaging and labeling requirement for sales | ||||||
21 | to purchasers. | ||||||
22 | (O) Other areas as determined by rule. | ||||||
23 | (i) Upon the successful completion of the responsible | ||||||
24 | vendor program, the provider shall deliver proof of completion | ||||||
25 | either through mail or electronic communication to the hemp | ||||||
26 | concentrate retailer, which shall retain a copy of the |
| |||||||
| |||||||
1 | certificate. | ||||||
2 | (j) The license of a hemp concentrate retailer whose | ||||||
3 | owners, managers, employees, or agents fail to comply with | ||||||
4 | this Section may be suspended, permanently revoked, or may | ||||||
5 | face other disciplinary action. | ||||||
6 | (k) The regulation of hemp concentrate retail sale and | ||||||
7 | employee training is an exclusive function of the State, and | ||||||
8 | regulation by a unit of local government, including a home | ||||||
9 | rule unit, is prohibited. This subsection (k) is a denial and | ||||||
10 | limitation of home rule powers and functions under subsection | ||||||
11 | (h) of Section 6 of Article VII of the Illinois Constitution. | ||||||
12 | (l) Persons seeking Department approval to offer the | ||||||
13 | training required by paragraph (2) of subsection (h) may apply | ||||||
14 | for such approval between August 1 and August 15 of each | ||||||
15 | odd-numbered year in a manner prescribed by the Department. | ||||||
16 | (m) Persons seeking Department approval to offer the | ||||||
17 | training required by paragraph (2) of subsection (h) shall | ||||||
18 | submit a nonrefundable application fee of $2,000 to be | ||||||
19 | deposited into the Cannabis Regulation Fund or a fee as may be | ||||||
20 | set by rule. Any changes made to the training module shall be | ||||||
21 | approved by the Department. | ||||||
22 | (n) The Department shall not unreasonably deny approval of | ||||||
23 | a training module that meets all the requirements of paragraph | ||||||
24 | (2) of subsection (h). A denial of approval shall include a | ||||||
25 | detailed description of the reasons for the denial. | ||||||
26 | (o) Any person approved to provide the training required |
| |||||||
| |||||||
1 | by subsection (h) shall submit an application for reapproval | ||||||
2 | between August 1 and August 15 of each odd-numbered year and | ||||||
3 | include a nonrefundable application fee of $2,000 to be | ||||||
4 | deposited into the Cannabis Regulation Fund or a fee as may be | ||||||
5 | set by rule. | ||||||
6 | (p) All persons applying to become or renewing their | ||||||
7 | registrations to be agents, including agents-in-charge and | ||||||
8 | principal officers, shall disclose any disciplinary action | ||||||
9 | taken against them that may have occurred in Illinois, another | ||||||
10 | state, or another country in relation to their employment at a | ||||||
11 | cannabis business establishment, hemp business establishment, | ||||||
12 | or at any cannabis cultivation center, processor, infuser, | ||||||
13 | dispensary, hemp processor, hemp infuser, or other hemp | ||||||
14 | business establishment. | ||||||
15 | (q) An agent applicant may begin employment at a hemp | ||||||
16 | concentrate retailer while the agent applicant's hemp | ||||||
17 | concentrate retailer agent identification card application is | ||||||
18 | pending. Upon approval, the Department shall issue the agent's | ||||||
19 | hemp concentrate retailer agent identification card to the | ||||||
20 | agent. If denied, the hemp concentrate retailer and the agent | ||||||
21 | applicant shall be notified and the agent applicant must cease | ||||||
22 | all activity at the hemp concentrate retailer immediately. | ||||||
23 | Section 15-30. Renewal. | ||||||
24 | (a) A hemp concentrate retailer license shall expire on | ||||||
25 | March 31 of even-numbered years. |
| |||||||
| |||||||
1 | (b) A hemp concentrate retail agent identification card | ||||||
2 | shall expire one year from the date it is issued. | ||||||
3 | (c) Any license holder and hemp concentrate retail agent | ||||||
4 | shall submit a renewal application as provided by the | ||||||
5 | Department and pay the required renewal fee. The Department | ||||||
6 | shall require an agent, employee, contracting, and | ||||||
7 | subcontracting diversity report and an environmental impact | ||||||
8 | report with its renewal application. No license or agent | ||||||
9 | identification card shall be renewed if it is currently under | ||||||
10 | revocation or suspension for violation of this Article or any | ||||||
11 | rules that may be adopted under this Article or the licensee, | ||||||
12 | principal officer, board member, person having a financial or | ||||||
13 | voting interest of 5% or greater in the licensee, or agent is | ||||||
14 | delinquent in filing any required tax returns or paying any | ||||||
15 | amounts owed to the State of Illinois. | ||||||
16 | (d) Renewal fees. | ||||||
17 | (1) For a hemp concentrate retailer license, $30,000, | ||||||
18 | to be deposited into the Cannabis Regulation Fund. | ||||||
19 | (2) For a hemp concentrate retail agent identification | ||||||
20 | card, $100, to be deposited into the Cannabis Regulation | ||||||
21 | Fund. | ||||||
22 | (e) If a hemp concentrate retailer fails to renew its | ||||||
23 | license before expiration, the hemp concentrate retailer shall | ||||||
24 | cease operations until the license is renewed. | ||||||
25 | (f) If a hemp concentrate retail agent fails to renew the | ||||||
26 | agent's registration before its expiration, the agent shall |
| |||||||
| |||||||
1 | cease to perform duties authorized by this Article at a hemp | ||||||
2 | concentrate retailer until the agent's registration is | ||||||
3 | renewed. | ||||||
4 | (g) A hemp concentrate retailer that continues to operate | ||||||
5 | without renewal of its license or a hemp concentrate retail | ||||||
6 | agent that continues to perform duties authorized by this | ||||||
7 | Article at a hemp concentrate retailer that has failed to | ||||||
8 | renew its license is subject to penalty as provided in this | ||||||
9 | Article or any rules that may be adopted pursuant to this | ||||||
10 | Article. | ||||||
11 | (h) The Department shall not renew a license if the | ||||||
12 | applicant is delinquent in filing required tax returns or | ||||||
13 | paying amounts owed to the State of Illinois. The Department | ||||||
14 | shall not renew a hemp concentrate retail agent identification | ||||||
15 | card if the applicant is delinquent in filing any required tax | ||||||
16 | returns or paying any amounts owed to the State of Illinois. | ||||||
17 | Section 15-35. Disclosure of ownership and control. | ||||||
18 | (a) Each hemp concentrate retailer applicant and licensee | ||||||
19 | shall file and maintain a table of organization, ownership, | ||||||
20 | and control with the Department. The table of organization, | ||||||
21 | ownership, and control shall contain the information required | ||||||
22 | by this Section in sufficient detail to identify all owners, | ||||||
23 | directors, and principal officers and the title of each | ||||||
24 | principal officer or business entity that, through direct or | ||||||
25 | indirect means, manages, owns, or controls the applicant or |
| |||||||
| |||||||
1 | licensee. | ||||||
2 | (b) The table of organization, ownership, and control | ||||||
3 | shall identify the following information: | ||||||
4 | (1) The management structure, ownership, and control | ||||||
5 | of the applicant or license holder, including the name of | ||||||
6 | each principal officer or business entity, the office or | ||||||
7 | position held, and the percentage ownership interest, if | ||||||
8 | any. If the business entity has a parent company, the name | ||||||
9 | of each owner, board member, and officer of the parent | ||||||
10 | company and the percentage ownership interest in the | ||||||
11 | parent company and the retailer. | ||||||
12 | (2) If the applicant or licensee is a business entity | ||||||
13 | with publicly traded stock, the identification of | ||||||
14 | ownership shall be provided as required in subsection (c). | ||||||
15 | (c) If a business entity identified in subsection (b) is a | ||||||
16 | publicly traded company, the following information shall be | ||||||
17 | provided in the table of organization, ownership, and control: | ||||||
18 | (1) The name and percentage of ownership interest of | ||||||
19 | each individual or business entity with ownership of more | ||||||
20 | than 5% of the voting shares of the entity, to the extent | ||||||
21 | such information is known or contained in 13D or 13G | ||||||
22 | Securities and Exchange Commission filings. | ||||||
23 | (2) To the extent known, the names and percentage of | ||||||
24 | interest of ownership of persons who are relatives of one | ||||||
25 | another and who together exercise control over or own more | ||||||
26 | than 10% of the voting shares of the entity. |
| |||||||
| |||||||
1 | (d) A hemp concentrate retailer with a parent company or | ||||||
2 | companies, or partially owned or controlled by another entity, | ||||||
3 | must disclose to the Department the relationship and all | ||||||
4 | owners, board members, officers, or individuals with control | ||||||
5 | or management of those entities. A hemp concentrate shall not | ||||||
6 | shield its ownership or control from the Department. | ||||||
7 | (e) All principal officers must submit a complete online | ||||||
8 | application with the Department within 14 days of the hemp | ||||||
9 | concentrate retailer being licensed by the Department or | ||||||
10 | within 14 days of Department notice of approval as a new | ||||||
11 | principal officer. | ||||||
12 | (f) A principal officer may not allow the principal | ||||||
13 | officer's registration to expire. | ||||||
14 | (g) A hemp concentrate retailer separating with a | ||||||
15 | principal officer must do so under this Act. The principal | ||||||
16 | officer must communicate the separation to the Department | ||||||
17 | within 5 business days. | ||||||
18 | (h) A principal officer not in compliance with the | ||||||
19 | requirements of this Act shall be removed from the principal | ||||||
20 | officer's position with the hemp concentrate retailer or shall | ||||||
21 | otherwise terminate the principal officer's affiliation. | ||||||
22 | Failure to do so may subject the hemp concentrate retailer to | ||||||
23 | discipline, suspension, or revocation of its license by the | ||||||
24 | Department. | ||||||
25 | (i) It is the responsibility of the hemp concentrate | ||||||
26 | retailer and its principal officers to promptly notify the |
| |||||||
| |||||||
1 | Department of any change of the principal place of business | ||||||
2 | address, hours of operation, change in ownership or control, | ||||||
3 | or a change of the hemp concentrate retailer primary or | ||||||
4 | secondary contact information. Any changes must be made to the | ||||||
5 | Department in writing. | ||||||
6 | Section 15-40. Financial responsibility. Evidence of | ||||||
7 | financial responsibility is a requirement for the issuance, | ||||||
8 | maintenance, or reactivation of a license under this Article. | ||||||
9 | Evidence of financial responsibility shall be used to | ||||||
10 | guarantee that the hemp concentrate retailer timely and | ||||||
11 | successfully completes construction, operates in a manner that | ||||||
12 | provides an uninterrupted supply of hemp concentrate derived | ||||||
13 | products, faithfully pays registration renewal fees, keeps | ||||||
14 | accurate books and records, makes regularly required reports, | ||||||
15 | complies with State tax requirements, and conducts the hemp | ||||||
16 | concentrate retailer in conformity with this Act and rules. | ||||||
17 | Evidence of financial responsibility shall be provided by one | ||||||
18 | of the following: | ||||||
19 | (1) Establishing and maintaining an escrow or surety | ||||||
20 | account in a financial institution in the amount of | ||||||
21 | $50,000, with escrow terms, approved by the Department, | ||||||
22 | that it shall be payable to the Department as provided in | ||||||
23 | this Act and rules. The following applies to escrow or | ||||||
24 | surety accounts: | ||||||
25 | (A) A financial institution may not return money |
| |||||||
| |||||||
1 | in an escrow or surety account to the hemp concentrate | ||||||
2 | retailer that established the account or a | ||||||
3 | representative of the organization unless the | ||||||
4 | organization or representative presents a statement | ||||||
5 | issued by the Department indicating that the account | ||||||
6 | may be released. | ||||||
7 | (B) The escrow or surety account shall not be | ||||||
8 | canceled on less than 30 days' notice in writing to the | ||||||
9 | Department, unless otherwise approved by the | ||||||
10 | Department. If an escrow or surety account is canceled | ||||||
11 | and the registrant fails to secure a new account with | ||||||
12 | the required amount on or before the effective date of | ||||||
13 | cancellation, the registrant's registration may be | ||||||
14 | permanently revoked. The total and aggregate liability | ||||||
15 | of the surety on the bond is limited to the amount | ||||||
16 | specified in the escrow or surety account. | ||||||
17 | (2) Providing a surety bond in the amount of $50,000 | ||||||
18 | and naming the hemp concentrate retailer as principal of | ||||||
19 | the bond, with terms approved by the Department that the | ||||||
20 | bond defaults to the Department in the event of | ||||||
21 | circumstances outlined in this Act and rules. Bond terms | ||||||
22 | shall include: | ||||||
23 | (A) The business name and registration number on | ||||||
24 | the bond must correspond exactly with the business | ||||||
25 | name and registration number in the Department's | ||||||
26 | records. |
| |||||||
| |||||||
1 | (B) The bond must be written on a form approved by | ||||||
2 | the Department. | ||||||
3 | (C) A copy of the bond must be received by the | ||||||
4 | Department within 90 days after the effective date. | ||||||
5 | (D) The bond may not be canceled by a surety on | ||||||
6 | less than 30 days' notice in writing to the | ||||||
7 | Department. If a bond is canceled and the registrant | ||||||
8 | fails to file a new bond with the Department in the | ||||||
9 | required amount on or before the effective date of | ||||||
10 | cancellation, the registrant's registration may be | ||||||
11 | permanently revoked. The total and aggregate liability | ||||||
12 | of the surety on the bond is limited to the amount | ||||||
13 | specified in the bond. | ||||||
14 | Section 15-45. Changes to a hemp concentrate retailer. | ||||||
15 | (a) A license shall be issued to the specific hemp | ||||||
16 | concentrate retailer identified on the application and for the | ||||||
17 | specific location proposed. The license is valid only as | ||||||
18 | designated on the license and for the location for which it is | ||||||
19 | issued. | ||||||
20 | (b) A hemp concentrate retailer may only add principal | ||||||
21 | officers approved by the Department. | ||||||
22 | (c) A hemp concentrate retailer shall provide written | ||||||
23 | notice of the removal of a principal officer within 5 business | ||||||
24 | days after removal. The notice shall include the written | ||||||
25 | agreement of the principal officer being removed, unless |
| |||||||
| |||||||
1 | otherwise approved by the Department, and allocation of | ||||||
2 | ownership shares after removal in an updated ownership chart. | ||||||
3 | (d) A hemp concentrate retailer shall provide a written | ||||||
4 | request to the Department for the addition of principal | ||||||
5 | officers. A hemp concentrate retailer shall submit proposed | ||||||
6 | principal officer applications on forms approved by the | ||||||
7 | Department. | ||||||
8 | (e) Any proposed new principal officer shall be subject to | ||||||
9 | the requirements of this Act and any rules that may be adopted | ||||||
10 | pursuant to this Act. | ||||||
11 | (f) The Department may prohibit the addition of a | ||||||
12 | principal officer to a hemp concentrate retailer for failure | ||||||
13 | to comply with this Act and any rules that may be adopted | ||||||
14 | pursuant to this Act. | ||||||
15 | (g) A hemp concentrate retailer may not assign a license. | ||||||
16 | (h) A hemp concentrate retailer may not transfer a license | ||||||
17 | without prior Department approval. Such approval may be | ||||||
18 | withheld if the person to whom the license is being | ||||||
19 | transferred does not commit to the same or a similar community | ||||||
20 | engagement plan provided as part of the hemp concentrate | ||||||
21 | retailer's application and such transferee's license shall be | ||||||
22 | conditional upon that commitment. | ||||||
23 | (i) With the addition or removal of principal officers, | ||||||
24 | the Department shall review the ownership structure to | ||||||
25 | determine whether the change in ownership has had the effect | ||||||
26 | of a transfer of the license. The hemp concentrate retailer |
| |||||||
| |||||||
1 | shall supply all ownership documents requested by the | ||||||
2 | Department. | ||||||
3 | (j) A hemp concentrate retailer may apply to the | ||||||
4 | Department to approve a sale of the hemp concentrate retailer. | ||||||
5 | A request to sell the hemp concentrate retailer must be on | ||||||
6 | application forms provided by the Department and must comply | ||||||
7 | with the following: | ||||||
8 | (1) New application materials shall comply with this | ||||||
9 | Act and any rules that may be adopted pursuant to this Act. | ||||||
10 | (2) Application materials shall include a change of | ||||||
11 | ownership fee of $5,000 to be deposited into the Cannabis | ||||||
12 | Regulation Fund. | ||||||
13 | (3) The application materials shall provide proof that | ||||||
14 | the transfer of ownership will not have the effect of | ||||||
15 | granting any of the owners or principal officers direct or | ||||||
16 | indirect ownership or control of more than 10 hemp | ||||||
17 | business establishments. | ||||||
18 | (4) Any new principal officer shall each complete the | ||||||
19 | proposed new principal officer application. | ||||||
20 | (5) If the Department approves the application | ||||||
21 | materials and proposed new principal officer applications, | ||||||
22 | it shall perform an inspection before approving the sale | ||||||
23 | and issuing the hemp concentrate retailer license. | ||||||
24 | (6) If a new license is approved, the Department shall | ||||||
25 | issue a new license number and certificate to the new hemp | ||||||
26 | concentrate retailer. |
| |||||||
| |||||||
1 | (k) The hemp concentrate retailer shall provide the | ||||||
2 | Department with the personal information for all new hemp | ||||||
3 | concentrate retail agents as required in this Article and all | ||||||
4 | new hemp concentrate retail agents shall be subject to the | ||||||
5 | requirements of this Article. A hemp concentrate retail agent | ||||||
6 | must obtain a hemp concentrate retail agent identification | ||||||
7 | card from the Department before beginning work at a hemp | ||||||
8 | concentrate retailer. | ||||||
9 | (l) Before remodeling, expansion, reduction, or other | ||||||
10 | physical, noncosmetic alteration of a hemp concentrate | ||||||
11 | retailer physical space, the hemp concentrate retailer must | ||||||
12 | notify the Department and confirm the alterations are in | ||||||
13 | compliance with this Act and any rules that may be adopted | ||||||
14 | pursuant to this Act. | ||||||
15 | Section 15-50. Administration. | ||||||
16 | (a) A hemp concentrate retailer shall establish, maintain, | ||||||
17 | and comply with written policies and procedures as submitted | ||||||
18 | in the business, financial, and operating plan as required in | ||||||
19 | this Article or by rules established by the Department, and | ||||||
20 | approved by the Department, for the security, storage, | ||||||
21 | inventory, and distribution of hemp concentrate derived | ||||||
22 | products. The policies and procedures shall include methods | ||||||
23 | for identifying, recording, and reporting diversion, theft, or | ||||||
24 | loss, and for correcting errors and inaccuracies in | ||||||
25 | inventories. At a minimum, hemp concentrate retailers shall |
| |||||||
| |||||||
1 | ensure the written policies and procedures provide for the | ||||||
2 | following: | ||||||
3 | (1) Mandatory and voluntary recalls of hemp | ||||||
4 | concentrate derived products. The policies shall be | ||||||
5 | adequate to deal with recalls due to any action initiated | ||||||
6 | at the request of the Department and any voluntary action | ||||||
7 | by the hemp concentrate retailer to remove defective or | ||||||
8 | potentially defective hemp concentrate derived products | ||||||
9 | from the market or any action undertaken to promote public | ||||||
10 | health and safety, including: | ||||||
11 | (A) a mechanism reasonably calculated to contact | ||||||
12 | purchasers who have, or likely have, obtained the | ||||||
13 | product from the hemp concentrate retailer, including | ||||||
14 | information on the policy for return of the recalled | ||||||
15 | product; | ||||||
16 | (B) a mechanism to identify and contact the hemp | ||||||
17 | concentrate infuser or hemp processor that | ||||||
18 | manufactured the hemp concentrate derived product; | ||||||
19 | (C) policies for communicating with the Department | ||||||
20 | and the Department of Public Health within 24 hours | ||||||
21 | after discovering defective or potentially defective | ||||||
22 | hemp concentrate derived products; and | ||||||
23 | (D) policies for destruction of any recalled hemp | ||||||
24 | concentrate derived product. | ||||||
25 | (2) Responses to local, State, or national | ||||||
26 | emergencies, including natural disasters, that affect the |
| |||||||
| |||||||
1 | security or operation of a hemp concentrate retailer. | ||||||
2 | (3) Segregation and destruction of outdated, damaged, | ||||||
3 | deteriorated, misbranded, or adulterated hemp concentrate | ||||||
4 | derived products. This procedure shall provide for written | ||||||
5 | documentation of the hemp concentrate derived products | ||||||
6 | disposition. | ||||||
7 | (4) Ensure the oldest stock of a hemp concentrate | ||||||
8 | derived product is distributed first. The procedure may | ||||||
9 | permit deviation from this requirement, if such deviation | ||||||
10 | is temporary and appropriate. | ||||||
11 | (5) Training of hemp concentrate retail agents in the | ||||||
12 | provisions of this Act and any rules adopted to | ||||||
13 | effectively operate the point-of-sale system and the | ||||||
14 | State's verification system, proper inventory handling and | ||||||
15 | tracking, specific uses of hemp concentrate derived | ||||||
16 | products, instruction regarding regulatory inspection | ||||||
17 | preparedness and law enforcement interaction, awareness of | ||||||
18 | the legal requirements for maintaining status as an agent, | ||||||
19 | and any other topics as specified by the hemp concentrate | ||||||
20 | retailer or the Department. The hemp concentrate retailer | ||||||
21 | shall maintain evidence of all training provided to each | ||||||
22 | agent in its files that is subject to inspection and audit | ||||||
23 | by the Department. The hemp concentrate retailer shall | ||||||
24 | ensure agents receive at least 8 hours of training subject | ||||||
25 | to the requirements in subsection (h) of Section 15-25 | ||||||
26 | annually, unless otherwise approved by the Department. |
| |||||||
| |||||||
1 | (6) Maintenance of business records consistent with | ||||||
2 | industry standards, including bylaws, consents, manual or | ||||||
3 | computerized records of assets and liabilities, audits, | ||||||
4 | monetary transactions, journals, ledgers, and supporting | ||||||
5 | documents, including agreements, checks, invoices, | ||||||
6 | receipts, and vouchers. Records shall be maintained in a | ||||||
7 | manner consistent with this Act and shall be retained for | ||||||
8 | 5 years. | ||||||
9 | (7) Inventory control, including: | ||||||
10 | (A) tracking purchases and denials of sale; and | ||||||
11 | (B) disposal of unusable or damaged hemp | ||||||
12 | concentrate derived products as required by this Act | ||||||
13 | and rules. | ||||||
14 | (8) Purchaser education and support, including: | ||||||
15 | (A) current educational information issued by the | ||||||
16 | Department of Public Health about the health risks | ||||||
17 | associated with the use or abuse of hemp concentrate | ||||||
18 | derived products; | ||||||
19 | (B) information about possible side effects; | ||||||
20 | (C) prohibition on smoking hemp concentrate | ||||||
21 | derived products in public places; and | ||||||
22 | (D) offering any other appropriate purchaser | ||||||
23 | education or support materials. | ||||||
24 | (b) A hemp concentrate retailer shall maintain copies of | ||||||
25 | the policies and procedures on the hemp concentrate retailer | ||||||
26 | premises and provide copies to the Department upon request. |
| |||||||
| |||||||
1 | The hemp concentrate retailer shall review the hemp | ||||||
2 | concentrate retailer policies and procedures at least once | ||||||
3 | every 12 months from the issue date of the license and update | ||||||
4 | as needed due to changes in industry standards or as requested | ||||||
5 | by the Department. | ||||||
6 | (c) A hemp concentrate retailer shall ensure that each | ||||||
7 | principal officer and each hemp concentrate retail agent has a | ||||||
8 | current hemp concentrate retailer agent identification card in | ||||||
9 | the agent's immediate possession when the agent is at the hemp | ||||||
10 | concentrate retailer. | ||||||
11 | (d) A hemp concentrate retailer shall provide prompt | ||||||
12 | written notice to the Department, including the date of the | ||||||
13 | event, when a hemp concentrate retail agent no longer is | ||||||
14 | employed by the hemp concentrate retailer. | ||||||
15 | (e) A hemp concentrate retailer and hemp concentrate | ||||||
16 | retailer agent shall promptly document and report any loss or | ||||||
17 | theft of hemp concentrate derived product from the hemp | ||||||
18 | concentrate retailer to the Illinois State Police and the | ||||||
19 | Department. | ||||||
20 | (f) A hemp concentrate retailer shall post the following | ||||||
21 | information and signage in a conspicuous location in an area | ||||||
22 | of the hemp concentrate retailer accessible to consumers: | ||||||
23 | (1) The hemp concentrate retailer's license. | ||||||
24 | (2) The hours of operation. | ||||||
25 | (3) A placard that states the following: "Hemp | ||||||
26 | concentrate derived products consumption can impair |
| |||||||
| |||||||
1 | cognition and driving, is for adult use only, may be habit | ||||||
2 | forming, and should not be used by pregnant or | ||||||
3 | breastfeeding women.". | ||||||
4 | (4) A hemp concentrate retailer that sells edible hemp | ||||||
5 | concentrate derived products must display a placard that | ||||||
6 | states the following: | ||||||
7 | (A) "Edible hemp concentrate derived products were | ||||||
8 | produced in a kitchen that may also process common | ||||||
9 | food allergens."; and | ||||||
10 | (B) "The effects of hemp concentrate derived | ||||||
11 | products can vary from person to person, and it can | ||||||
12 | take as long as two hours to feel the effects of some | ||||||
13 | hemp concentrate derived products. Carefully review | ||||||
14 | the portion size information and warnings contained on | ||||||
15 | the product packaging before consuming.". | ||||||
16 | All of the required signage in paragraphs (3) and (4) | ||||||
17 | shall be no smaller than 24 inches tall by 36 inches wide, with | ||||||
18 | typed letters no smaller than 2 inches. The signage shall be | ||||||
19 | clearly visible and readable by customers. The signage shall | ||||||
20 | be placed in the area where hemp concentrate derived products | ||||||
21 | are sold and may be translated into additional languages as | ||||||
22 | needed. The Department may require a hemp concentrate retailer | ||||||
23 | to display the required signage in a different language, other | ||||||
24 | than English, if the Secretary deems it necessary. | ||||||
25 | (g) A hemp concentrate retailer shall prominently post | ||||||
26 | notices inside the hemp concentrate retailer that state |
| |||||||
| |||||||
1 | activities that are strictly prohibited and punishable by law, | ||||||
2 | including, but not limited to: | ||||||
3 | (1) no minors permitted on the premises; and | ||||||
4 | (2) distribution to persons under the age of 21 is | ||||||
5 | prohibited. | ||||||
6 | Section 15-55. Operational requirements; prohibitions. | ||||||
7 | (a) A hemp concentrate retailer shall operate in | ||||||
8 | accordance with the representations made in its application | ||||||
9 | and license materials. It shall be in compliance with this Act | ||||||
10 | and rules. | ||||||
11 | (b) A hemp concentrate retailer must include the legal | ||||||
12 | name of the hemp concentrate retailer on the packaging of any | ||||||
13 | hemp concentrate derived product it sells. | ||||||
14 | (c) Hemp concentrate derived product must be obtained from | ||||||
15 | an Illinois-registered adult use craft grower that meets the | ||||||
16 | requirements of a Social Equity Applicant, adult use cannabis | ||||||
17 | infuser that meets the requirements of a Social Equity | ||||||
18 | Applicant, a hemp concentrate infuser, or hemp processor. | ||||||
19 | (d) A hemp concentrate retailer may not sell any product | ||||||
20 | containing alcohol except tinctures that are limited to | ||||||
21 | containers no larger than 100 milliliters. | ||||||
22 | (e) A hemp concentrate retailer shall inspect and count | ||||||
23 | product received from a State registered adult use craft | ||||||
24 | grower that meets the requirements of a Social Equity | ||||||
25 | Applicant, an adult use cannabis infuser that meets the |
| |||||||
| |||||||
1 | requirements of a Social Equity Applicant, an adult use | ||||||
2 | cannabis transporter that meets the requirements of a Social | ||||||
3 | Equity Applicant, a hemp concentrate infuser, hemp processor, | ||||||
4 | or hemp distributor before selling it. | ||||||
5 | (f) A hemp concentrate retailer may only accept hemp | ||||||
6 | concentrate derived product deliveries into a restricted | ||||||
7 | access area. Deliveries may not be accepted through the public | ||||||
8 | or limited access areas unless otherwise approved by the | ||||||
9 | Department. | ||||||
10 | (g) A hemp concentrate retailer shall maintain compliance | ||||||
11 | with State and local building, fire, and zoning requirements | ||||||
12 | or regulations. | ||||||
13 | (h) A hemp concentrate retailer shall submit a list to the | ||||||
14 | Department of the names of any service professional that will | ||||||
15 | work at the hemp concentrate retailer. The list shall include | ||||||
16 | a description of the type of business or service provided. | ||||||
17 | Changes to the service professional list shall be promptly | ||||||
18 | provided. No service professional shall work in the hemp | ||||||
19 | concentrate retailer until the name is provided to the | ||||||
20 | Department on the service professional list. | ||||||
21 | (i) A hemp concentrate retailer license allows the hemp | ||||||
22 | concentrate retailer to be operated only at a single location. | ||||||
23 | (j) A hemp concentrate retailer may operate between 6 a.m. | ||||||
24 | and 10 p.m. local time. | ||||||
25 | (k) A hemp concentrate retailer must keep all lighting | ||||||
26 | outside and inside the hemp concentrate retailer in good |
| |||||||
| |||||||
1 | working order and at a wattage sufficient for security | ||||||
2 | cameras. | ||||||
3 | (l) A hemp concentrate retailer must keep all air | ||||||
4 | treatment systems that will be installed to reduce odors in | ||||||
5 | good working order. | ||||||
6 | (m) A hemp concentrate retailer must contract with a | ||||||
7 | private security contractor that is licensed under Section | ||||||
8 | 10-5 of the Private Detective, Private Alarm, Private | ||||||
9 | Security, Fingerprint Vendor, and Locksmith Act of 2004 to | ||||||
10 | provide on-site security at all hours of the hemp concentrate | ||||||
11 | retailer. | ||||||
12 | (n) A hemp concentrate retailer shall ensure that any | ||||||
13 | building or equipment used by a hemp concentrate retailer for | ||||||
14 | the storage or sale of hemp concentrate derived products is | ||||||
15 | maintained in a clean and sanitary condition. | ||||||
16 | (o) The hemp concentrate retailer shall be free from | ||||||
17 | infestation by insects, rodents, or pests. | ||||||
18 | (p) A hemp concentrate retailer may not: | ||||||
19 | (1) produce or manufacture hemp concentrate derived | ||||||
20 | products; | ||||||
21 | (2) accept a hemp concentrate derived product from an | ||||||
22 | Illinois-registered adult use craft grower that meets the | ||||||
23 | requirements of a Social Equity Applicant, an adult use | ||||||
24 | cannabis infuser that meets the requirements of a Social | ||||||
25 | Equity Applicant, an adult use cannabis transporter that | ||||||
26 | meets the requirements of a Social Equity Applicant, a |
| |||||||
| |||||||
1 | hemp concentrate infuser, hemp processor, or hemp | ||||||
2 | distributor; | ||||||
3 | (3) enter into an exclusive agreement with any | ||||||
4 | Illinois-registered adult use craft grower that meets the | ||||||
5 | requirements of a Social Equity Applicant, an adult use | ||||||
6 | cannabis infuser that meets the requirements of a Social | ||||||
7 | Equity Applicant, a hemp concentrate infuser, or hemp | ||||||
8 | processor. Hemp concentrate retailer shall provide | ||||||
9 | consumers an assortment of products from various hemp | ||||||
10 | business establishment licensees and hemp business | ||||||
11 | establishment licensees such that the inventory available | ||||||
12 | for sale at any hemp concentrate retailer from any single | ||||||
13 | Illinois-registered adult use craft grower that meets the | ||||||
14 | requirements of a Social Equity Applicant, an adult use | ||||||
15 | cannabis infuser that meets the requirements of a Social | ||||||
16 | Equity Applicant, a hemp concentrate infuser, or hemp | ||||||
17 | processor entity shall not be more than 40% of the total | ||||||
18 | inventory available for sale. For the purpose of this | ||||||
19 | subsection, an Illinois-registered adult use craft grower | ||||||
20 | that meets the requirements of a Social Equity Applicant, | ||||||
21 | an adult use cannabis infuser that meets the requirements | ||||||
22 | of a Social Equity Applicant, a hemp concentrate infuser, | ||||||
23 | or hemp processor shall be considered part of the same | ||||||
24 | entity if the licensees share at least one principal | ||||||
25 | officer. The Department may request that a hemp | ||||||
26 | concentrate retailer diversify its products as needed or |
| |||||||
| |||||||
1 | otherwise discipline a hemp concentrate retailer for | ||||||
2 | violating this requirement; | ||||||
3 | (4) refuse to conduct business with an | ||||||
4 | Illinois-registered adult use craft grower that meets the | ||||||
5 | requirements of a Social Equity Applicant, an adult use | ||||||
6 | cannabis infuser that meets the requirements of a Social | ||||||
7 | Equity Applicant, an adult use cannabis transporter that | ||||||
8 | meets the requirements of a Social Equity Applicant, a | ||||||
9 | hemp concentrate infuser, hemp processor, or hemp | ||||||
10 | distributor that has the ability to properly deliver the | ||||||
11 | product and is permitted by the Department, on the same | ||||||
12 | terms as other Illinois-registered adult use craft grower | ||||||
13 | that meets the requirements of a Social Equity Applicant, | ||||||
14 | an adult use cannabis infuser that meets the requirements | ||||||
15 | of a Social Equity Applicant, an adult use cannabis | ||||||
16 | transporter that meets the requirements of a Social Equity | ||||||
17 | Applicant, a hemp concentrate infuser, hemp processor, or | ||||||
18 | hemp distributor with whom it is dealing; | ||||||
19 | (5) operate drive-through windows; | ||||||
20 | (6) allow for the sale of hemp concentrate derived | ||||||
21 | products in vending machines; | ||||||
22 | (7) transport hemp concentrate derived products to | ||||||
23 | residences or other locations where purchasers may be for | ||||||
24 | delivery; | ||||||
25 | (8) enter into agreements to allow persons who are | ||||||
26 | hemp concentrate retail agents to deliver hemp concentrate |
| |||||||
| |||||||
1 | derived products or to transport hemp concentrate derived | ||||||
2 | products to purchasers; | ||||||
3 | (9) operate a hemp concentrate retailer if its video | ||||||
4 | surveillance equipment is inoperative; | ||||||
5 | (10) operate a hemp concentrate retailer if the | ||||||
6 | point-of-sale equipment is inoperative; | ||||||
7 | (11) operate a hemp concentrate retailer if the | ||||||
8 | State's hemp concentrate derived products electronic | ||||||
9 | verification system is inoperative; | ||||||
10 | (12) have fewer than 2 people working at the hemp | ||||||
11 | concentrate retailer at any time while the hemp | ||||||
12 | concentrate retailer is open; | ||||||
13 | (13) be located within 1,500 feet of the property line | ||||||
14 | of a preexisting cannabis dispensing organization or a | ||||||
15 | hemp concentrate retailer unless the applicant is | ||||||
16 | Qualifying Applicant or Social Equity Justice Involved | ||||||
17 | Applicant under the Cannabis Regulation and Tax Act; | ||||||
18 | (14) sell hemp concentrate derived products in | ||||||
19 | combination or bundled with each other or any other items | ||||||
20 | for one price. Each item of hemp concentrate derived | ||||||
21 | product must be separately identified by quantity and | ||||||
22 | price on the receipt; | ||||||
23 | (15) sell cannabis, cannabis infused products, or | ||||||
24 | cannabis concentrate that is regulated under the Cannabis | ||||||
25 | Regulation and Tax Act; or | ||||||
26 | (16) violate any other requirements or prohibitions |
| |||||||
| |||||||
1 | set by Department rules. | ||||||
2 | (q) It is unlawful for any person having a hemp | ||||||
3 | concentrate retailer license or any officer, associate, | ||||||
4 | member, representative, or agent of such licensee to accept, | ||||||
5 | receive, or borrow money or anything else of value or accept or | ||||||
6 | receive credit, other than merchandising credit in the | ||||||
7 | ordinary course of business for a period not to exceed 30 days, | ||||||
8 | directly or indirectly from any Illinois-registered adult use | ||||||
9 | craft grower that meets the requirements of a Social Equity | ||||||
10 | Applicant, an adult use cannabis infuser that meets the | ||||||
11 | requirements of a Social Equity Applicant, an adult use | ||||||
12 | cannabis transporter that meets the requirements of a Social | ||||||
13 | Equity Applicant, a hemp concentrate infuser, hemp processor, | ||||||
14 | or hemp distributor in exchange for preferential placement on | ||||||
15 | the shelves, display cases, or website of a hemp concentrate | ||||||
16 | retailer or a Qualifying Applicant or Social Equity Justice | ||||||
17 | Involved Applicant dispensary under the Cannabis Regulation | ||||||
18 | and Tax Act. This includes anything received or borrowed or | ||||||
19 | from any stockholders, officers, agents, or persons connected | ||||||
20 | with an Illinois-registered adult use craft grower that meets | ||||||
21 | the requirements of a Social Equity Applicant, an adult use | ||||||
22 | cannabis infuser that meets the requirements of a Social | ||||||
23 | Equity Applicant, an adult use cannabis transporter that meets | ||||||
24 | the requirements of a Social Equity Applicant, a hemp | ||||||
25 | concentrate infuser, hemp processor, or hemp distributor. | ||||||
26 | (r) It is unlawful for any person having a hemp |
| |||||||
| |||||||
1 | concentrate retailer license to enter into any contract with | ||||||
2 | any person licensed to infuse, process, or transport hemp | ||||||
3 | concentrate derived products whereby such hemp concentrate | ||||||
4 | retailer agrees not to sell any hemp concentrate derived | ||||||
5 | product infused, processed, transported, manufactured, or | ||||||
6 | distributed by any other Illinois-registered adult use craft | ||||||
7 | grower that meets the requirements of a Social Equity | ||||||
8 | Applicant, an adult use cannabis infuser that meets the | ||||||
9 | requirements of a Social Equity Applicant, an adult use | ||||||
10 | cannabis transporter that meets the requirements of a Social | ||||||
11 | Equity Applicant, a hemp concentrate infuser, hemp processor, | ||||||
12 | or hemp distributor and any provision in any contract | ||||||
13 | violative of this Section shall render the whole of such | ||||||
14 | contract void and no action shall be brought thereon in any | ||||||
15 | court. | ||||||
16 | Section 15-60. Inventory control system. | ||||||
17 | (a) A hemp concentrate retailer agent-in-charge shall have | ||||||
18 | primary oversight of the hemp concentrate retailer hemp | ||||||
19 | concentrate derived product inventory verification system, and | ||||||
20 | its point-of-sale system. The inventory point-of-sale system | ||||||
21 | shall be real-time, web-based, and accessible by the | ||||||
22 | Department at any time. The point-of-sale system shall track, | ||||||
23 | at a minimum the date of sale, amount, price, and currency. | ||||||
24 | (b) A hemp concentrate retailer shall establish an account | ||||||
25 | with the State's verification system that documents the |
| |||||||
| |||||||
1 | following: | ||||||
2 | (1) Each sales transaction at the time of sale and | ||||||
3 | each day's beginning inventory, acquisitions, sales, | ||||||
4 | disposal, and ending inventory. | ||||||
5 | (2) Acquisition of hemp concentrate derived products | ||||||
6 | from an Illinois-registered adult use craft grower that | ||||||
7 | meets the requirements of a Social Equity Applicant, an | ||||||
8 | adult use cannabis infuser that meets the requirements of | ||||||
9 | a Social Equity Applicant, an adult use cannabis | ||||||
10 | transporter that meets the requirements of a Social Equity | ||||||
11 | Applicant, a hemp concentrate infuser, hemp processor, or | ||||||
12 | hemp distributor, including the following: | ||||||
13 | (A) A description of the products, including the | ||||||
14 | quantity, variety, and batch number of each product | ||||||
15 | received. | ||||||
16 | (B) The name and registry identification number of | ||||||
17 | the Illinois-registered adult use craft grower that | ||||||
18 | meets the requirements of a Social Equity Applicant, | ||||||
19 | an adult use cannabis infuser that meets the | ||||||
20 | requirements of a Social Equity Applicant, a hemp | ||||||
21 | concentrate infuser, or hemp processor providing the | ||||||
22 | hemp concentrate derived product. | ||||||
23 | (C) The name and registry identification number of | ||||||
24 | the Illinois-registered adult use craft grower that | ||||||
25 | meets the requirements of a Social Equity Applicant, | ||||||
26 | an adult use cannabis infuser that meets the |
| |||||||
| |||||||
1 | requirements of a Social Equity Applicant, an adult | ||||||
2 | use cannabis transporter that meets the requirements | ||||||
3 | of a Social Equity Applicant, a hemp concentrate | ||||||
4 | infuser, hemp processor, or hemp distributor agent | ||||||
5 | delivering the hemp concentrate derived product. | ||||||
6 | (D) The name and registry identification number of | ||||||
7 | the hemp concentrate retail agent receiving the hemp | ||||||
8 | concentrate derived products. | ||||||
9 | (E) The date of acquisition. | ||||||
10 | (3) The disposal of hemp concentrate derived product, | ||||||
11 | including the following: | ||||||
12 | (A) A description of the products, including the | ||||||
13 | quantity, variety, batch number, and reason for the | ||||||
14 | hemp concentrate derived product being disposed. | ||||||
15 | (B) The method of disposal. | ||||||
16 | (C) The date and time of disposal. | ||||||
17 | (c) Upon hemp concentrate derived product delivery, a hemp | ||||||
18 | concentrate retailer shall confirm the product's name, hemp | ||||||
19 | concentrate, weight, and identification number on the manifest | ||||||
20 | matches the information on the hemp concentrate derived | ||||||
21 | product label and package. The product name listed and the | ||||||
22 | weight listed in the State's verification system shall match | ||||||
23 | the product packaging. | ||||||
24 | (d) The agent-in-charge shall conduct daily inventory | ||||||
25 | reconciliation documenting and balancing hemp concentrate | ||||||
26 | derived product inventory by confirming the State's |
| |||||||
| |||||||
1 | verification system matches the hemp concentrate retailer's | ||||||
2 | point-of-sale system and the amount of physical product at the | ||||||
3 | hemp concentrate retailer as follows: | ||||||
4 | (1) A hemp concentrate retailer must receive | ||||||
5 | Department approval before completing an inventory | ||||||
6 | adjustment. It shall provide a detailed reason for the | ||||||
7 | adjustment. Inventory adjustment documentation shall be | ||||||
8 | kept at the dispensary for 2 years from the date | ||||||
9 | performed. | ||||||
10 | (2) If the hemp concentrate retailer identifies an | ||||||
11 | imbalance in the amount of hemp concentrate derived | ||||||
12 | product after the daily inventory reconciliation due to | ||||||
13 | mistake, the hemp concentrate retailer shall determine how | ||||||
14 | the imbalance occurred and immediately, upon discovery, | ||||||
15 | take and document corrective action. If the hemp | ||||||
16 | concentrate retailer cannot identify the reason for the | ||||||
17 | mistake within 2 calendar days after it first discovered | ||||||
18 | the mistake, it shall inform the Department immediately in | ||||||
19 | writing of the imbalance and the corrective action taken | ||||||
20 | to date. The hemp concentrate retailer shall work | ||||||
21 | diligently to determine the reason for the mistake. | ||||||
22 | (3) If the hemp concentrate retailer identifies an | ||||||
23 | imbalance in the amount of hemp concentrate derived | ||||||
24 | product after the daily inventory reconciliation or | ||||||
25 | through other means due to theft, criminal activity, or | ||||||
26 | suspected criminal activity, the hemp concentrate retailer |
| |||||||
| |||||||
1 | shall immediately determine how the reduction occurred and | ||||||
2 | take and document corrective action. Within 24 hours after | ||||||
3 | the first discovery of the reduction due to theft, | ||||||
4 | criminal activity, or suspected criminal activity, the | ||||||
5 | hemp concentrate retailer shall inform the Department and | ||||||
6 | the Illinois State Police in writing. | ||||||
7 | (4) The hemp concentrate retailer shall file an annual | ||||||
8 | compilation report with the Department, including a | ||||||
9 | financial statement that shall include, but not be limited | ||||||
10 | to, an income statement, balance sheet, profit and loss | ||||||
11 | statement, statement of cash flow, wholesale cost and | ||||||
12 | sales, and any other documentation requested by the | ||||||
13 | Department in writing. The financial statement shall | ||||||
14 | include any other information the Department deems | ||||||
15 | necessary in order to effectively administer this Act and | ||||||
16 | all rules, orders, and final decisions adopted under this | ||||||
17 | Act. Reports required by this paragraph shall be filed | ||||||
18 | with the Department within 60 days after the end of the | ||||||
19 | calendar year. The report shall include a letter authored | ||||||
20 | by a licensed certified public accountant that it has been | ||||||
21 | reviewed and is accurate based on the information | ||||||
22 | provided. The hemp concentrate retailer's, financial | ||||||
23 | statement, and accompanying documents are not required to | ||||||
24 | be audited unless specifically requested by the | ||||||
25 | Department. | ||||||
26 | (e) A hemp concentrate retailer shall: |
| |||||||
| |||||||
1 | (1) maintain the documentation required in this | ||||||
2 | Section in a secure locked location at the retailer for 5 | ||||||
3 | years from the date on the document; | ||||||
4 | (2) provide any documentation required to be | ||||||
5 | maintained in this Section to the Department for review | ||||||
6 | upon request; and | ||||||
7 | (3) if maintaining a bank account, retain for a period | ||||||
8 | of 5 years a record of each deposit or withdrawal from the | ||||||
9 | account. | ||||||
10 | (f) If a hemp concentrate retailer chooses to have a | ||||||
11 | return policy for hemp concentrate derived product, the hemp | ||||||
12 | concentrate retailer shall seek prior approval from the | ||||||
13 | Department. | ||||||
14 | Section 15-65. Storage requirements. | ||||||
15 | (a) A hemp concentrate retailer must store inventory on | ||||||
16 | its premises. All inventory stored on the premises must be | ||||||
17 | secured in a restricted access area and tracked consistently | ||||||
18 | with the inventory tracking rules. | ||||||
19 | (b) A hemp concentrate retailer shall be of suitable size | ||||||
20 | and construction to facilitate cleaning, maintenance, and | ||||||
21 | proper operations. | ||||||
22 | (c) A hemp concentrate retailer shall maintain adequate | ||||||
23 | lighting, ventilation, temperature, humidity control, and | ||||||
24 | equipment. | ||||||
25 | (d) Containers storing hemp concentrate derived products |
| |||||||
| |||||||
1 | that have been tampered with, damaged, or opened shall be | ||||||
2 | labeled with the date opened and quarantined from other hemp | ||||||
3 | concentrate derived products in the vault until they are | ||||||
4 | disposed. | ||||||
5 | (e) Hemp concentrate derived products that was tampered | ||||||
6 | with, expired, or damaged shall not be stored at the premises | ||||||
7 | for more than 7 calendar days. | ||||||
8 | (f) Hemp concentrate derived product samples shall be in a | ||||||
9 | sealed container. Samples shall be maintained in the | ||||||
10 | restricted access area. | ||||||
11 | (g) The hemp concentrate retailer storage areas shall be | ||||||
12 | maintained in accordance with the security requirements in | ||||||
13 | this Act and rules. | ||||||
14 | (h) Hemp concentrate derived products must be stored at | ||||||
15 | appropriate temperatures and under appropriate conditions to | ||||||
16 | help ensure that its packaging, strength, quality, and purity | ||||||
17 | are not adversely affected. | ||||||
18 | Section 15-70. Dispensing hemp concentrate derived | ||||||
19 | products. | ||||||
20 | (a) Before a hemp concentrate retail agent dispenses hemp | ||||||
21 | concentrate derived products to a purchaser, the agent shall | ||||||
22 | do all of the following: | ||||||
23 | (1) Verify the age of the purchaser by checking a | ||||||
24 | government-issued identification card by use of an | ||||||
25 | electronic reader or electronic scanning device to scan a |
| |||||||
| |||||||
1 | purchaser's government-issued identification, if | ||||||
2 | applicable, to determine the purchaser's age and the | ||||||
3 | validity of the identification. | ||||||
4 | (2) Verify the validity of the government-issued | ||||||
5 | identification card by use of an electronic reader or | ||||||
6 | electronic scanning device to scan a purchaser's | ||||||
7 | government-issued identification, if applicable, to | ||||||
8 | determine the purchaser's age and the validity of the | ||||||
9 | identification. | ||||||
10 | (3) Offer any appropriate purchaser education or | ||||||
11 | support materials. | ||||||
12 | (4) Enter the following information into the State's | ||||||
13 | hemp concentrate derived products electronic verification | ||||||
14 | system: | ||||||
15 | (A) the hemp concentrate retail agent's | ||||||
16 | identification number, or if the agent's card | ||||||
17 | application is pending the Department's approval, a | ||||||
18 | temporary and unique identifier until the agent's card | ||||||
19 | application is approved or denied by the Department; | ||||||
20 | (B) the hemp concentrate retailer identification | ||||||
21 | number; | ||||||
22 | (C) the amount and type of hemp concentrate | ||||||
23 | derived product sold; and | ||||||
24 | (D) the date and time the hemp concentrate derived | ||||||
25 | product was sold. | ||||||
26 | (b) A hemp concentrate retailer shall refuse to sell hemp |
| |||||||
| |||||||
1 | concentrate derived product to any person unless the person | ||||||
2 | produces a valid identification showing that the person is 21 | ||||||
3 | years of age or older. | ||||||
4 | (c) For the purposes of this Section, valid identification | ||||||
5 | must: | ||||||
6 | (1) be valid and unexpired; and | ||||||
7 | (2) contain a photograph and the date of birth of the | ||||||
8 | person. | ||||||
9 | Section 15-75. Destruction and disposal of hemp | ||||||
10 | concentrate derived products. | ||||||
11 | (a) Hemp concentrate derived products must be destroyed by | ||||||
12 | rendering them unusable using methods approved by the | ||||||
13 | Department that comply with this Act and rules. | ||||||
14 | (b) Hemp concentrate derived products waste rendered | ||||||
15 | unusable must be promptly disposed according to this Act and | ||||||
16 | rules. Disposal of the hemp concentrate derived products waste | ||||||
17 | rendered unusable may be delivered to a permitted solid waste | ||||||
18 | facility for final disposition. Acceptable permitted solid | ||||||
19 | waste facilities include, but are not limited to, the | ||||||
20 | following: | ||||||
21 | (1) Compostable mixed waste: Compost, anaerobic | ||||||
22 | digester, or other facility with approval of the | ||||||
23 | jurisdictional health department. | ||||||
24 | (2) Noncompostable mixed waste: landfill, incinerator, | ||||||
25 | or other facility with approval of the jurisdictional |
| |||||||
| |||||||
1 | health department. | ||||||
2 | (c) All waste and unusable product shall be weighed, | ||||||
3 | recorded, and entered into the inventory system before | ||||||
4 | rendering it unusable. All waste and unusable hemp concentrate | ||||||
5 | derived products shall be recorded and entered into the | ||||||
6 | inventory system before rendering it unusable. Verification of | ||||||
7 | this event shall be performed by an agent-in-charge and | ||||||
8 | conducted in an area with video surveillance. | ||||||
9 | (d) Electronic documentation of destruction and disposal | ||||||
10 | shall be maintained for a period of at least 5 years. | ||||||
11 | Section 15-80. Agent-in-charge. | ||||||
12 | (a) Every hemp concentrate retailer shall designate, at a | ||||||
13 | minimum, one agent-in-charge for each licensed hemp | ||||||
14 | concentrate retailer. The designated agent-in-charge must hold | ||||||
15 | a hemp concentrate retail agent identification card. | ||||||
16 | Maintaining an agent-in-charge is a continuing requirement for | ||||||
17 | the license, except as provided in subsection (f). | ||||||
18 | (b) The agent-in-charge shall be a principal officer or a | ||||||
19 | full-time agent of the hemp concentrate retailer and shall | ||||||
20 | manage the hemp concentrate retailer. Managing the hemp | ||||||
21 | concentrate retailer includes, but is not limited to, | ||||||
22 | responsibility for opening and closing the hemp concentrate | ||||||
23 | retailer, delivery acceptance, oversight of sales and hemp | ||||||
24 | concentrate retail agents, recordkeeping, inventory, hemp | ||||||
25 | concentrate retail agent training, and compliance with this |
| |||||||
| |||||||
1 | Act and rules. Participation in affairs also includes the | ||||||
2 | responsibility for maintaining all files subject to audit or | ||||||
3 | inspection by the Department at the hemp concentrate retailer. | ||||||
4 | (c) The agent-in-charge is responsible for promptly | ||||||
5 | notifying the Department of any change of information required | ||||||
6 | to be reported to the Department. | ||||||
7 | (d) In determining whether an agent-in-charge manages the | ||||||
8 | hemp concentrate retailer, the Department may consider the | ||||||
9 | responsibilities identified in this Section, the number of | ||||||
10 | hemp concentrate retail agents under the supervision of the | ||||||
11 | agent-in-charge, and the employment relationship between the | ||||||
12 | agent-in-charge and the hemp concentrate retailer, including | ||||||
13 | the existence of a contract for employment and any other | ||||||
14 | relevant fact or circumstance. | ||||||
15 | (e) The agent-in-charge is responsible for notifying the | ||||||
16 | Department of a change in the employment status of all hemp | ||||||
17 | concentrate retail agents within 5 business days after the | ||||||
18 | change, including notice to the Department if the termination | ||||||
19 | of an agent was for diversion of product or theft of currency. | ||||||
20 | (f) If an agent-in-charge is separated due to death, | ||||||
21 | incapacity, termination, or any other reason and if the hemp | ||||||
22 | concentrate retailer does not have an active agent-in-charge, | ||||||
23 | the hemp concentrate retailer shall immediately contact the | ||||||
24 | Department and request a temporary certificate of authority | ||||||
25 | allowing the continuing operation. The request shall include | ||||||
26 | the name of an interim agent-in-charge until a replacement is |
| |||||||
| |||||||
1 | identified, or shall include the name of the replacement. The | ||||||
2 | Department shall issue the temporary certificate of authority | ||||||
3 | promptly after it approves the request. If a hemp concentrate | ||||||
4 | retailer fails to promptly request a temporary certificate of | ||||||
5 | authority after the separation of the agent-in-charge, its | ||||||
6 | registration shall cease until the Department approves the | ||||||
7 | temporary certificate of authority or registers a new | ||||||
8 | agent-in-charge. No temporary certificate of authority shall | ||||||
9 | be valid for more than 90 days. The succeeding agent-in-charge | ||||||
10 | shall register with the Department in compliance with this | ||||||
11 | Article. Once the permanent succeeding agent-in-charge is | ||||||
12 | registered with the Department, the temporary certificate of | ||||||
13 | authority is void. No temporary certificate of authority shall | ||||||
14 | be issued for the separation of an agent-in-charge due to | ||||||
15 | disciplinary action by the Department related to the | ||||||
16 | agent-in-charge's conduct on behalf of the hemp concentrate | ||||||
17 | retailer. | ||||||
18 | (g) The hemp concentrate retail agent-in-charge | ||||||
19 | registration shall expire one year from the date it is issued. | ||||||
20 | The agent-in-charge's registration shall be renewed annually. | ||||||
21 | The Department shall review the hemp concentrate retailer's | ||||||
22 | compliance history when determining whether to grant the | ||||||
23 | request to renew. | ||||||
24 | (h) Upon termination of an agent-in-charge's employment, | ||||||
25 | the hemp concentrate retailer shall immediately reclaim the | ||||||
26 | hemp concentrate retail agent identification card. The hemp |
| |||||||
| |||||||
1 | concentrate retailer shall promptly return the identification | ||||||
2 | card to the Department. | ||||||
3 | (i) The Department may deny an application or renewal or | ||||||
4 | discipline or revoke an agent-in-charge's hemp concentrate | ||||||
5 | retail agent identification card for any of the following | ||||||
6 | reasons: | ||||||
7 | (1) Submission of misleading, incorrect, false, or | ||||||
8 | fraudulent information in the application or renewal | ||||||
9 | application. | ||||||
10 | (2) Violation of the requirements of this Act or | ||||||
11 | rules. | ||||||
12 | (3) Fraudulent use of the agent-in-charge's hemp | ||||||
13 | concentrate retail agent identification card. | ||||||
14 | (4) Selling, distributing, transferring in any manner, | ||||||
15 | or giving hemp concentrate derived products to any | ||||||
16 | unauthorized person. | ||||||
17 | (5) Theft of hemp concentrate derived products, | ||||||
18 | currency, or any other items from a hemp concentrate | ||||||
19 | retailer. | ||||||
20 | (6) Tampering with, falsifying, altering, modifying, | ||||||
21 | or duplicating an agent-in-charge's hemp concentrate | ||||||
22 | retail agent identification card. | ||||||
23 | (7) Tampering with, falsifying, altering, or modifying | ||||||
24 | the surveillance video footage, point-of-sale system, or | ||||||
25 | the State's verification system. | ||||||
26 | (8) Failure to notify the Department immediately upon |
| |||||||
| |||||||
1 | discovery that the agent-in-charge identification card has | ||||||
2 | been lost, stolen, or destroyed. | ||||||
3 | (9) Failure to notify the Department within 5 business | ||||||
4 | days after a change in the information provided in the | ||||||
5 | application for an agent-in-charge identification card. | ||||||
6 | (10) Conviction of a felony offense under Section | ||||||
7 | 2105-131, 2105-135, or 2105-205 of the Department of | ||||||
8 | Professional Regulation Law of the Civil Administrative | ||||||
9 | Code of Illinois or any incident listed in this Act or | ||||||
10 | rules following the issuance of an agent-in-charge's hemp | ||||||
11 | concentrate retail agent identification card. | ||||||
12 | (11) Selling to purchasers in amounts above the limits | ||||||
13 | provided in this Act. | ||||||
14 | (12) Delinquency in filing any required tax returns or | ||||||
15 | paying any amounts owed to the State of Illinois. | ||||||
16 | Section 15-85. Security. | ||||||
17 | (a) A hemp concentrate retailer shall implement security | ||||||
18 | measures to deter and prevent entry into and theft of hemp | ||||||
19 | concentrate derived products or currency. | ||||||
20 | (b) A hemp concentrate retailer shall submit any changes | ||||||
21 | to the floor plan or security plan to the Department for | ||||||
22 | preapproval. All hemp concentrate derived product shall be | ||||||
23 | maintained and stored in a restricted access area during | ||||||
24 | construction. | ||||||
25 | (c) The hemp concentrate retailer shall implement security |
| |||||||
| |||||||
1 | measures to protect the premises, purchasers, and hemp | ||||||
2 | concentrate retail agents including, but not limited to, the | ||||||
3 | following: | ||||||
4 | (1) Establish a locked door or barrier between the | ||||||
5 | facility's entrance and the limited access area. | ||||||
6 | (2) Prevent individuals from remaining on the premises | ||||||
7 | if they are not engaging in activity permitted by this Act | ||||||
8 | or rules. | ||||||
9 | (3) Develop a policy that addresses the maximum | ||||||
10 | capacity and purchaser flow in the waiting rooms and | ||||||
11 | limited access areas. | ||||||
12 | (4) Dispose of hemp concentrate derived products in | ||||||
13 | accordance with this Act and rules. | ||||||
14 | (5) During hours of operation, store and sell all hemp | ||||||
15 | concentrate derived product from the restricted access | ||||||
16 | area. During operational hours, hemp concentrate derived | ||||||
17 | product shall be stored in an enclosed locked room or | ||||||
18 | cabinet and accessible only to specifically authorized | ||||||
19 | hemp concentrate retail agents. | ||||||
20 | (6) When the hemp concentrate retailer is closed, | ||||||
21 | store all hemp concentrate derived product and currency in | ||||||
22 | a reinforced vault room in the restricted access area and | ||||||
23 | in a manner as to prevent diversion, theft, or loss. | ||||||
24 | (7) Keep the reinforced vault room and any other | ||||||
25 | equipment or hemp concentrate derived product storage | ||||||
26 | areas securely locked and protected from unauthorized |
| |||||||
| |||||||
1 | entry. | ||||||
2 | (8) Keep an electronic daily log of hemp concentrate | ||||||
3 | retail agents with access to the reinforced vault room and | ||||||
4 | knowledge of the access code or combination. | ||||||
5 | (9) Keep all locks and security equipment in good | ||||||
6 | working order. | ||||||
7 | (10) Maintain an operational security and alarm system | ||||||
8 | at all times. | ||||||
9 | (11) Prohibit keys, if applicable, from being left in | ||||||
10 | the locks, or stored or placed in a location accessible to | ||||||
11 | persons other than specifically authorized personnel. | ||||||
12 | (12) Prohibit accessibility of security measures, | ||||||
13 | including combination numbers, passwords, or electronic or | ||||||
14 | biometric security systems to persons other than | ||||||
15 | specifically authorized hemp concentrate retail agents. | ||||||
16 | (13) Ensure that the hemp concentrate retailer | ||||||
17 | interior and exterior premises are sufficiently lit to | ||||||
18 | facilitate surveillance. | ||||||
19 | (14) Ensure that trees, bushes, and other foliage | ||||||
20 | outside of the hemp concentrate retailer premises do not | ||||||
21 | allow for a person or persons to conceal themselves from | ||||||
22 | sight. | ||||||
23 | (15) Develop emergency policies and procedures form | ||||||
24 | securing all product and currency following any instance | ||||||
25 | of diversion, theft, or loss of hemp concentrate derived | ||||||
26 | products, and conduct an assessment to determine whether |
| |||||||
| |||||||
1 | additional safeguards are necessary. | ||||||
2 | (16) Develop sufficient additional safeguards in | ||||||
3 | response to any special security concerns, or as required | ||||||
4 | by the Department. | ||||||
5 | (d) The Department may request or approve alternative | ||||||
6 | security provisions that it determines are an adequate | ||||||
7 | substitute for a security requirement specified in this | ||||||
8 | Article. Any additional protections may be considered by the | ||||||
9 | Department in evaluating overall security measures. | ||||||
10 | (e) A hemp concentrate retailer shall provide additional | ||||||
11 | security as needed and in a manner appropriate for the | ||||||
12 | community where it operates. | ||||||
13 | (f) Restricted access areas must meet the following | ||||||
14 | criteria: | ||||||
15 | (1) All restricted access areas must be identified by | ||||||
16 | the posting of a sign that is a minimum of 12 inches by 12 | ||||||
17 | inches and that states "Do Not Enter - Restricted Access | ||||||
18 | Area - Authorized Personnel Only" in lettering no smaller | ||||||
19 | than one inch in height. | ||||||
20 | (2) All restricted access areas shall be clearly | ||||||
21 | described in the floor plan of the premises, in the form | ||||||
22 | and manner determined by the Department, reflecting walls, | ||||||
23 | partitions, counters, and all areas of entry and exit. The | ||||||
24 | floor plan shall show all storage, disposal, and retail | ||||||
25 | sales areas. | ||||||
26 | (3) All restricted access areas must be secure, with |
| |||||||
| |||||||
1 | locking devices that prevent access from the limited | ||||||
2 | access areas. | ||||||
3 | (g) A hemp concentrate retailer shall have an adequate | ||||||
4 | security plan and security system to prevent and detect | ||||||
5 | diversion, theft, or loss of hemp concentrate derived | ||||||
6 | products, currency, or unauthorized intrusion using commercial | ||||||
7 | grade equipment installed by a State-licensed private alarm | ||||||
8 | contractor or private alarm contractor agency that shall, at a | ||||||
9 | minimum, include the following: | ||||||
10 | (1) A perimeter alarm on all entry points and glass | ||||||
11 | break protection on perimeter windows. | ||||||
12 | (2) Security shatterproof tinted film on exterior | ||||||
13 | windows. | ||||||
14 | (3) A failure notification system that provides an | ||||||
15 | audible, text, or visual notification of any failure in | ||||||
16 | the surveillance system, including, but not limited to, | ||||||
17 | panic buttons, alarms, and video monitoring system. The | ||||||
18 | failure notification system shall provide an alert to | ||||||
19 | designated hemp concentrate retail agents within 5 minutes | ||||||
20 | after the failure, either by telephone or text message. | ||||||
21 | (4) A duress alarm, panic button, and alarm, or holdup | ||||||
22 | alarm and after-hours intrusion detection alarm that by | ||||||
23 | design and purpose will directly or indirectly notify, by | ||||||
24 | the most efficient means, the public safety answering | ||||||
25 | point for the law enforcement agency having primary | ||||||
26 | jurisdiction. |
| |||||||
| |||||||
1 | (5) Security equipment to deter and prevent | ||||||
2 | unauthorized entrance into the hemp concentrate retailer, | ||||||
3 | including electronic door locks on the limited and | ||||||
4 | restricted access areas that include devices or a series | ||||||
5 | of devices to detect unauthorized intrusion, which may | ||||||
6 | include a signal system interconnected with a radio | ||||||
7 | frequency method, cellular, private radio signals or other | ||||||
8 | mechanical or electronic device. | ||||||
9 | Security system equipment and recordings shall be | ||||||
10 | maintained in good working order and in a secure location so as | ||||||
11 | to prevent theft, loss, destruction, or alterations. | ||||||
12 | Access to surveillance monitoring recording equipment | ||||||
13 | shall be limited to persons who are essential to surveillance | ||||||
14 | operations, law enforcement authorities acting within their | ||||||
15 | jurisdiction, security system service personnel, and the | ||||||
16 | Department. A current list of authorized hemp concentrate | ||||||
17 | retail agents and service personnel that have access to the | ||||||
18 | surveillance equipment must be available to the Department | ||||||
19 | upon request. | ||||||
20 | Any security equipment shall be inspected and tested at | ||||||
21 | regular intervals, not to exceed one month from the previous | ||||||
22 | inspection, and tested to ensure the systems remain | ||||||
23 | functional. | ||||||
24 | The security system shall provide protection against theft | ||||||
25 | and diversion that is facilitated or hidden by tampering with | ||||||
26 | computers or electronic records. |
| |||||||
| |||||||
1 | The hemp concentrate retailer shall ensure all access | ||||||
2 | doors are not solely controlled by an electronic access panel | ||||||
3 | to ensure that locks are not released during a power outage. | ||||||
4 | (h) To monitor the hemp concentrate retailer, the hemp | ||||||
5 | concentrate retailer shall incorporate continuous electronic | ||||||
6 | video monitoring, that shall include the following: | ||||||
7 | (1) All monitors must be 19 inches or greater. | ||||||
8 | (2) Unobstructed video surveillance of all enclosed | ||||||
9 | hemp concentrate retailer areas, unless prohibited by law, | ||||||
10 | including all points of entry and exit that shall be | ||||||
11 | appropriate for the normal lighting conditions of the area | ||||||
12 | under surveillance. The cameras shall be directed so all | ||||||
13 | areas are captured, including, but not limited to, safes, | ||||||
14 | vaults, sales areas, and areas where hemp concentrate | ||||||
15 | retailer is stored, handled, sold, or destroyed. Cameras | ||||||
16 | shall be angled to allow for facial recognition, the | ||||||
17 | capture of clear and certain identification of any person | ||||||
18 | entering or exiting the hemp concentrate retail area and | ||||||
19 | in lighting sufficient during all times of night or day. | ||||||
20 | (3) Unobstructed video surveillance of outside areas, | ||||||
21 | the storefront, and the parking lot, that shall be | ||||||
22 | appropriate for the normal lighting conditions of the area | ||||||
23 | under surveillance. Cameras shall be angled so as to allow | ||||||
24 | for the capture of facial recognition, clear and certain | ||||||
25 | identification of any person entering or exiting the hemp | ||||||
26 | concentrate retailer and the immediate surrounding area, |
| |||||||
| |||||||
1 | and license plates of vehicles in the parking lot. | ||||||
2 | (4) 24-hour recordings from all video cameras | ||||||
3 | available for immediate viewing by the Department upon | ||||||
4 | request. Recordings shall not be destroyed or altered and | ||||||
5 | shall be retained for at least 90 days. Recordings shall | ||||||
6 | be retained as long as necessary if the retailer is aware | ||||||
7 | of the loss or theft of hemp concentrate derived product | ||||||
8 | or a pending criminal, civil, or administrative | ||||||
9 | investigation or legal proceeding for which the recording | ||||||
10 | may contain relevant information. | ||||||
11 | (5) The ability to immediately produce a clear, color | ||||||
12 | still photo from the surveillance video, either live or | ||||||
13 | recorded. | ||||||
14 | (6) A date and time stamp embedded on all video | ||||||
15 | surveillance recordings. The date and time shall be | ||||||
16 | synchronized and set correctly and shall not significantly | ||||||
17 | obscure the picture. | ||||||
18 | (7) The ability to remain operational during a power | ||||||
19 | outage and ensure all access doors are not solely | ||||||
20 | controlled by an electronic access panel to ensure that | ||||||
21 | locks are not released during a power outage. | ||||||
22 | (8) All video surveillance equipment shall allow for | ||||||
23 | the exporting of still images in an industry standard | ||||||
24 | image format, including .jpg, .bmp, and .gif. Exported | ||||||
25 | video shall have the ability to be archived in a | ||||||
26 | proprietary format that ensures authentication of the |
| |||||||
| |||||||
1 | video and guarantees that no alteration of the recorded | ||||||
2 | image has taken place. Exported video shall also have the | ||||||
3 | ability to be saved in an industry standard file format | ||||||
4 | that can be played on a standard computer operating | ||||||
5 | system. All recordings shall be erased or destroyed before | ||||||
6 | disposal. | ||||||
7 | (9) The video surveillance system shall be operational | ||||||
8 | during a power outage with a 4-hour minimum battery | ||||||
9 | backup. | ||||||
10 | (10) A video camera or cameras recording at each | ||||||
11 | point-of-sale location allowing for the identification of | ||||||
12 | the hemp concentrate retail agent distributing the hemp | ||||||
13 | concentrate derived products and any purchaser. The camera | ||||||
14 | or cameras shall capture the sale, the individuals, and | ||||||
15 | the computer monitors used for the sale. | ||||||
16 | (11) A failure notification system that provides an | ||||||
17 | audible and visual notification of any failure in the | ||||||
18 | electronic video monitoring system. | ||||||
19 | (12) All electronic video surveillance monitoring must | ||||||
20 | record at least the equivalent of 8 frames per second and | ||||||
21 | be available as recordings to the Department and the | ||||||
22 | Illinois State Police 24 hours a day via a secure | ||||||
23 | web-based portal with reverse functionality. | ||||||
24 | (i) The requirements contained in this Article shall be | ||||||
25 | the minimum requirements for operating a hemp concentrate | ||||||
26 | retailer. The Department may establish additional requirements |
| |||||||
| |||||||
1 | by rule. | ||||||
2 | Section 15-90. Recordkeeping. | ||||||
3 | (a) Hemp concentrate retailer records must be maintained | ||||||
4 | electronically for 3 years and be available for inspection by | ||||||
5 | the Department upon request. Required written records include, | ||||||
6 | but are not limited to, the following: | ||||||
7 | (1) Operating procedures. | ||||||
8 | (2) Inventory records, policies, and procedures. | ||||||
9 | (3) Security records. | ||||||
10 | (4) Audit records. | ||||||
11 | (5) Staff training plans and completion documentation. | ||||||
12 | (6) Staffing plan. | ||||||
13 | (7) Business records, including, but not limited to: | ||||||
14 | (A) assets and liabilities; | ||||||
15 | (B) monetary transactions; | ||||||
16 | (C) written or electronic accounts, including bank | ||||||
17 | statements, journals, ledgers, and supporting | ||||||
18 | documents, agreements, checks, invoices, receipts, and | ||||||
19 | vouchers; and | ||||||
20 | (D) any other financial accounts reasonably | ||||||
21 | related to the hemp concentrate retailer operations. | ||||||
22 | (b) If a hemp concentrate retailer closes due to | ||||||
23 | insolvency, revocation, bankruptcy, or for any other reason, | ||||||
24 | all records must be preserved at the expense of the hemp | ||||||
25 | concentrate retailer for at least 3 years in a form and |
| |||||||
| |||||||
1 | location in this State in a format and location that is | ||||||
2 | acceptable to the Department. The hemp concentrate retailer | ||||||
3 | shall keep the records longer if requested by the Department. | ||||||
4 | The hemp concentrate retailer shall notify the Department of | ||||||
5 | the location where the hemp concentrate retailer records are | ||||||
6 | stored or transferred. | ||||||
7 | Section 15-95. Closure of a dispensary. | ||||||
8 | (a) If a hemp concentrate retailer decides not to renew | ||||||
9 | its license or decides to close its business, the hemp | ||||||
10 | concentrate retailer shall promptly notify the Department not | ||||||
11 | less than 3 months before the effective date of the closing | ||||||
12 | date or as otherwise authorized by the Department. | ||||||
13 | (b) The hemp concentrate retailer shall work with the | ||||||
14 | Department to develop a closure plan that addresses, at a | ||||||
15 | minimum, the transfer of business records, transfer of hemp | ||||||
16 | concentrate derived products, and anything else the Department | ||||||
17 | finds necessary. | ||||||
18 | Section 15-100. Investigations. | ||||||
19 | (a) A hemp concentrate retailer is subject to random and | ||||||
20 | unannounced hemp concentrate retailer inspections and hemp | ||||||
21 | concentrate derived products testing by the Department, the | ||||||
22 | Illinois State Police, local law enforcement, or as provided | ||||||
23 | by rule. | ||||||
24 | (b) The Department and its authorized representatives may |
| |||||||
| |||||||
1 | (i) enter any place, including a vehicle, in which hemp | ||||||
2 | concentrate derived product is held, stored, sold, produced, | ||||||
3 | delivered, transported, manufactured, or disposed of, (ii) | ||||||
4 | inspect, in a reasonable manner, the place and all pertinent | ||||||
5 | equipment, containers, and labeling and other pertinent | ||||||
6 | things, including records, files, financial data, sales data, | ||||||
7 | shipping data, pricing data, personnel data, research, papers, | ||||||
8 | processes, controls, facilities, and (iii) inventory any stock | ||||||
9 | of hemp concentrate derived product and obtain samples of any | ||||||
10 | hemp concentrate derived product, any labels or containers for | ||||||
11 | hemp concentrate derived product, or paraphernalia. | ||||||
12 | (c) The Department may conduct an investigation of an | ||||||
13 | applicant, application, hemp concentrate retailer, principal | ||||||
14 | officer, hemp concentrate retail agent, third party vendor, or | ||||||
15 | any other party associated with a hemp concentrate retailer | ||||||
16 | for an alleged violation of this Act or rules or to determine | ||||||
17 | qualifications to be granted a registration by the Department. | ||||||
18 | (d) The Department may require an applicant or holder of | ||||||
19 | any license issued pursuant to this Article to produce | ||||||
20 | documents, records, or any other material pertinent to the | ||||||
21 | investigation of an application or alleged violations of this | ||||||
22 | Act or rules. Failure to provide the required material may be | ||||||
23 | grounds for denial or discipline. | ||||||
24 | (e) Each person charged with preparation, obtaining, or | ||||||
25 | keeping records, logs, reports, or other documents in | ||||||
26 | connection with this Act and rules and every person in charge, |
| |||||||
| |||||||
1 | or having custody, of those documents shall, upon request by | ||||||
2 | the Department, make the documents immediately available for | ||||||
3 | inspection and copying by the Department, the Department's | ||||||
4 | authorized representative, or others authorized by law to | ||||||
5 | review the documents. | ||||||
6 | Section 15-105. Citations. The Department may issue | ||||||
7 | nondisciplinary citations for minor violations. Any such | ||||||
8 | citation issued by the Department may be accompanied by a fee. | ||||||
9 | The fee may not exceed $20,000 per violation. The citation | ||||||
10 | shall be issued to the licensee and shall contain the | ||||||
11 | licensee's name and address, the licensee's license number, a | ||||||
12 | brief factual statement, the Sections of the law allegedly | ||||||
13 | violated, and the fee, if any, imposed. The citation must | ||||||
14 | clearly state that the licensee may choose, in lieu of | ||||||
15 | accepting the citation, to request a hearing. If the licensee | ||||||
16 | does not dispute the matter in the citation with the | ||||||
17 | Department within 30 days after the citation is served, then | ||||||
18 | the citation shall become final and not subject to appeal. The | ||||||
19 | penalty shall be a fee or other conditions as established by | ||||||
20 | rule. | ||||||
21 | Section 15-110. Grounds for discipline. | ||||||
22 | (a) The Department may deny issuance, refuse to renew or | ||||||
23 | restore, or may reprimand, place on probation, suspend, | ||||||
24 | revoke, or take other disciplinary or nondisciplinary action |
| |||||||
| |||||||
1 | against any license or hemp concentrate retailer agent | ||||||
2 | identification card or may impose a fine for any of the | ||||||
3 | following: | ||||||
4 | (1) Material misstatement in furnishing information to | ||||||
5 | the Department. | ||||||
6 | (2) Violations of this Act or rules. | ||||||
7 | (3) Obtaining an authorization or license by fraud or | ||||||
8 | misrepresentation. | ||||||
9 | (4) A pattern of conduct that demonstrates | ||||||
10 | incompetence or that the applicant has engaged in conduct | ||||||
11 | or actions that would constitute grounds for discipline | ||||||
12 | under this Act. | ||||||
13 | (5) Aiding or assisting another person in violating | ||||||
14 | any provision of this Act or rules. | ||||||
15 | (6) Failing to respond to a written request for | ||||||
16 | information by the Department within 30 days. | ||||||
17 | (7) Engaging in unprofessional, dishonorable, or | ||||||
18 | unethical conduct of a character likely to deceive, | ||||||
19 | defraud, or harm the public. | ||||||
20 | (8) Adverse action by another state or territory of | ||||||
21 | the United States or foreign nation. | ||||||
22 | (9) A finding by the Department that the licensee, | ||||||
23 | after having the license placed on suspended or | ||||||
24 | probationary status, has violated the terms of the | ||||||
25 | suspension or probation. | ||||||
26 | (10) Conviction, entry of a plea of guilty, nolo |
| |||||||
| |||||||
1 | contendere, or the equivalent in a State or federal court | ||||||
2 | of a principal officer or agent-in-charge of a felony | ||||||
3 | offense under Section 2105-131, 2105-135, or 2105-205 of | ||||||
4 | the Department of Professional Regulation Law of the Civil | ||||||
5 | Administrative Code of Illinois. | ||||||
6 | (11) Excessive use of or addiction to alcohol, | ||||||
7 | narcotics, stimulants, or any other chemical agent or | ||||||
8 | drug. | ||||||
9 | (12) A finding by the Department of a discrepancy in a | ||||||
10 | Department audit of hemp concentrate derived product. | ||||||
11 | (13) A finding by the Department of a discrepancy in a | ||||||
12 | Department audit of capital or funds. | ||||||
13 | (14) A finding by the Department of acceptance of hemp | ||||||
14 | concentrate derived product from a source other than an | ||||||
15 | Illinois-registered adult use craft grower that meets the | ||||||
16 | requirements of a Social Equity Applicant, an adult use | ||||||
17 | cannabis infuser that meets the requirements of a Social | ||||||
18 | Equity Applicant, an adult use cannabis transporter that | ||||||
19 | meets the requirements of a Social Equity Applicant, a | ||||||
20 | hemp concentrate infuser, hemp processor, or hemp | ||||||
21 | distributor. | ||||||
22 | (15) An inability to operate using reasonable | ||||||
23 | judgment, skill, or safety due to physical or mental | ||||||
24 | illness or other impairment or disability, including, | ||||||
25 | without limitation, deterioration through the aging | ||||||
26 | process or loss of motor skills or mental incompetence, |
| |||||||
| |||||||
1 | (16) Failing to report to the Department within the | ||||||
2 | time frames established, or if not identified, 14 days, of | ||||||
3 | any adverse action taken against the hemp concentrate | ||||||
4 | retailer or an agent by a licensing jurisdiction in any | ||||||
5 | state or any territory of the United States or any foreign | ||||||
6 | jurisdiction, any governmental agency, any law enforcement | ||||||
7 | agency, or any court. | ||||||
8 | (17) Any violation of the hemp concentrate retailer's | ||||||
9 | policies and procedures submitted to the Department | ||||||
10 | annually as a condition for licensure. | ||||||
11 | (18) Failure to inform the Department of any change of | ||||||
12 | address within 10 business days. | ||||||
13 | (19) Disclosing customer names, personal information, | ||||||
14 | or protected health information in violation of any State | ||||||
15 | or federal law. | ||||||
16 | (20) Operating a hemp concentrate retailer before | ||||||
17 | obtaining a license from the Department. | ||||||
18 | (21) Performing duties authorized by this Act prior to | ||||||
19 | receiving a license to perform such duties. | ||||||
20 | (22) Selling hemp concentrate derived products when | ||||||
21 | prohibited by this Act or rules. | ||||||
22 | (23) Any fact or condition that, if it had existed at | ||||||
23 | the time of the original application for the license, | ||||||
24 | would have warranted the denial of the license. | ||||||
25 | (24) Permitting a person without a valid hemp | ||||||
26 | concentrate retailer agent identification card to perform |
| |||||||
| |||||||
1 | licensed activities under this Act. | ||||||
2 | (25) Failure to assign an agent-in-charge as required | ||||||
3 | by this Article. | ||||||
4 | (26) Failure to provide the training required under | ||||||
5 | subsection (h) of Section 15-25 within the provided | ||||||
6 | timeframe. | ||||||
7 | (27) Personnel insufficient in number or unqualified | ||||||
8 | in training or experience to properly operate the hemp | ||||||
9 | concentrate retailer. | ||||||
10 | (28) Any pattern of activity that causes a harmful | ||||||
11 | impact on the community. | ||||||
12 | (29) Failing to prevent diversion, theft, or loss of | ||||||
13 | hemp concentrate derived products. | ||||||
14 | (b) All fines and fees imposed under this Section shall be | ||||||
15 | paid within 60 days after the effective date of the order | ||||||
16 | imposing the fine or as otherwise specified in the order. | ||||||
17 | (c) A circuit court order establishing that an | ||||||
18 | agent-in-charge or principal officer holding a hemp | ||||||
19 | concentrate retailer agent identification card is subject to | ||||||
20 | involuntary admission on an inpatient basis or outpatient | ||||||
21 | basis, as those terms are defined in Sections 1-119 and | ||||||
22 | 1-119.1 of the Mental Health and Developmental Disabilities | ||||||
23 | Code, shall operate as a suspension of that card. | ||||||
24 | Section 15-115. Temporary suspension. | ||||||
25 | (a) The Department may temporarily suspend a hemp |
| |||||||
| |||||||
1 | concentrate retailer license or an agent registration without | ||||||
2 | a hearing if the Secretary finds that public safety or welfare | ||||||
3 | requires emergency action. The Secretary shall cause the | ||||||
4 | temporary suspension by issuing a suspension notice in | ||||||
5 | connection with the institution of proceedings for a hearing. | ||||||
6 | (b) If the Secretary temporarily suspends a license or | ||||||
7 | agent registration without a hearing, the licensee or agent is | ||||||
8 | entitled to a hearing within 45 days after the suspension | ||||||
9 | notice has been issued. The hearing shall be limited to the | ||||||
10 | issues cited in the suspension notice, unless all parties | ||||||
11 | agree otherwise. | ||||||
12 | (c) If the Department does not hold a hearing with 45 days | ||||||
13 | after the date the suspension notice was issued, then the | ||||||
14 | suspended license or registration shall be automatically | ||||||
15 | reinstated and the suspension vacated. | ||||||
16 | (d) The suspended licensee or agent may seek a continuance | ||||||
17 | of the hearing date, during which time the suspension remains | ||||||
18 | in effect and the license or registration shall not be | ||||||
19 | automatically reinstated. | ||||||
20 | (e) Subsequently discovered causes of action by the | ||||||
21 | Department after the issuance of the suspension notice may be | ||||||
22 | filed as a separate notice of violation. The Department is not | ||||||
23 | precluded from filing a separate action against the suspended | ||||||
24 | licensee or agent. | ||||||
25 | Section 15-120. Notice; hearing. |
| |||||||
| |||||||
1 | (a) The Department shall, before disciplining an applicant | ||||||
2 | or licensee, at least 30 days before the date set for the | ||||||
3 | hearing: (i) notify the accused in writing of the charges made | ||||||
4 | and the time and place for the hearing on the charges; (ii) | ||||||
5 | direct the applicant or licensee to file a written answer to | ||||||
6 | the charges under oath within 20 days after service; and (iii) | ||||||
7 | inform the applicant or licensee that failure to answer will | ||||||
8 | result in a default being entered against the applicant or | ||||||
9 | licensee. | ||||||
10 | (b) At the time and place fixed in the notice, the hearing | ||||||
11 | officer appointed by the Department shall proceed to hear the | ||||||
12 | charges, and the parties or their counsel shall be accorded | ||||||
13 | ample opportunity to present any pertinent statements, | ||||||
14 | testimony, evidence, and arguments. The hearing officer may | ||||||
15 | continue the hearing from time to time. In case the person, | ||||||
16 | after receiving the notice, fails to file an answer, the | ||||||
17 | person's license may, in the discretion of the Secretary, | ||||||
18 | having first received the recommendation of the hearing | ||||||
19 | officer, be suspended, revoked, or placed on probationary | ||||||
20 | status or be subject to whatever disciplinary action the | ||||||
21 | Secretary considers proper, including a fine, without hearing, | ||||||
22 | if that act or acts charged constitute sufficient grounds for | ||||||
23 | that action under this Act. | ||||||
24 | (c) The written notice and any notice in the subsequent | ||||||
25 | proceeding may be served by regular mail or email to the | ||||||
26 | licensee's or applicant's address of record. |
| |||||||
| |||||||
1 | Section 15-125. Subpoenas; oaths. The Department may | ||||||
2 | subpoena and bring before it any person, take testimony either | ||||||
3 | orally or by deposition, or both, with the same fees and | ||||||
4 | mileage and in the same manner as prescribed by law in judicial | ||||||
5 | proceedings in civil cases in courts in this State. The | ||||||
6 | Secretary or the hearing officer shall each have the power to | ||||||
7 | administer oaths to witnesses at any hearings that the | ||||||
8 | Department is authorized to conduct. | ||||||
9 | Section 15-130. Hearing; motion for rehearing. | ||||||
10 | (a) The hearing officer shall hear evidence in support of | ||||||
11 | the formal charges and evidence produced by the licensee. At | ||||||
12 | the conclusion of the hearing, the hearing officer shall | ||||||
13 | present to the Secretary a written report of the hearing | ||||||
14 | officer's findings of fact, conclusions of law, and | ||||||
15 | recommendations. | ||||||
16 | (b) At the conclusion of the hearing, a copy of the hearing | ||||||
17 | officer's report shall be served upon the applicant or | ||||||
18 | licensee by the Department, either personally or as provided | ||||||
19 | in this Act for the service of a notice of hearing. Within 20 | ||||||
20 | calendar days after service, the applicant or licensee may | ||||||
21 | present to the Department a motion in writing for rehearing, | ||||||
22 | which shall specify the particular grounds for rehearing. The | ||||||
23 | Department may respond to the motion for rehearing within 20 | ||||||
24 | calendar days after service on the Department. If no motion |
| |||||||
| |||||||
1 | for rehearing is filed, then, upon the expiration of the time | ||||||
2 | specified for filing such motion or upon denial of a motion for | ||||||
3 | rehearing, the Secretary may enter an order in accordance with | ||||||
4 | the recommendation of the hearing officer. If the applicant or | ||||||
5 | licensee orders from the reporting service and pays for a | ||||||
6 | transcript of the record within the time for filing a motion | ||||||
7 | for rehearing, the 20-day period within which a motion may be | ||||||
8 | filed shall commence upon the delivery of the transcript to | ||||||
9 | the applicant or licensee. | ||||||
10 | (c) If the Secretary disagrees in any regard with the | ||||||
11 | report of the hearing officer, the Secretary may issue an | ||||||
12 | order contrary to the report. | ||||||
13 | (d) Whenever the Secretary is not satisfied that | ||||||
14 | substantial justice has been done, the Secretary may order a | ||||||
15 | rehearing by the same or another hearing officer. | ||||||
16 | (e) At any point in any investigation or disciplinary | ||||||
17 | proceeding under in this Article, both parties may agree to a | ||||||
18 | negotiated consent order. The consent order shall be final | ||||||
19 | upon signature of the Secretary. | ||||||
20 | Section 15-135. Review under the Administrative Review | ||||||
21 | Law. | ||||||
22 | (a) All final administrative decisions of the Department | ||||||
23 | are subject to judicial review under the provisions of the | ||||||
24 | Administrative Review Law. As used in this subsection, | ||||||
25 | "administrative decision" has the meaning given to that term |
| |||||||
| |||||||
1 | in Section 3-101 of the Code of Civil Procedure. | ||||||
2 | (b) Proceedings for judicial review shall be commenced in | ||||||
3 | the circuit court of the county in which the party applying for | ||||||
4 | review resides, but, if the party is not a resident of | ||||||
5 | Illinois, the venue shall be in Sangamon County. | ||||||
6 | (c) The Department shall not be required to certify any | ||||||
7 | record to the court, file any answer in court, or otherwise | ||||||
8 | appear in any court in a judicial review proceeding unless and | ||||||
9 | until the Department has received from the plaintiff payment | ||||||
10 | of the costs of furnishing and certifying the record, which | ||||||
11 | costs shall be determined by the Department. Failure on the | ||||||
12 | part of the plaintiff to file a receipt in court shall be | ||||||
13 | grounds for dismissal of the action. | ||||||
14 | Article 20. | ||||||
15 | Hemp Extract Infusers | ||||||
16 | Section 20-5. Hemp Extract Infusers application. When | ||||||
17 | applying for a license, the applicant shall electronically | ||||||
18 | submit the following in such form as the Department may | ||||||
19 | direct: | ||||||
20 | (1) the nonrefundable application fee of $100 for each | ||||||
21 | license for which the applicant is applying, which shall | ||||||
22 | be deposited into the Cannabis Regulation Fund; | ||||||
23 | (2) the legal name of the infuser; | ||||||
24 | (3) the proposed physical address of the infuser; |
| |||||||
| |||||||
1 | (4) the name, address, social security number, and | ||||||
2 | date of birth of each principal officer and board member | ||||||
3 | of the infuser. Each principal officer and board member | ||||||
4 | 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 infuser (i) pled guilty, were convicted, | ||||||
8 | fined, or had a registration or license suspended or | ||||||
9 | revoked, or (ii) managed or served on the board of a | ||||||
10 | business or nonprofit organization that pled guilty, was | ||||||
11 | convicted, fined, or had a registration or license | ||||||
12 | suspended or revoked; | ||||||
13 | (6) proposed operating bylaws; | ||||||
14 | (7) a copy of the current local zoning ordinance and | ||||||
15 | verification that the proposed infuser is in compliance | ||||||
16 | with the local zoning rules and distance limitations | ||||||
17 | established by the local jurisdiction; | ||||||
18 | (8) proposed employment practices in which the | ||||||
19 | applicant must demonstrate a plan of action to inform, | ||||||
20 | hire, and educate minorities, women, veterans, and persons | ||||||
21 | with disabilities, engage in fair labor practices, and | ||||||
22 | provide worker protections; | ||||||
23 | (9) processing, inventory, and packaging plans; | ||||||
24 | (10) a description of the applicant's experience with | ||||||
25 | operating a commercial kitchen or laboratory preparing | ||||||
26 | products for human consumption; |
| |||||||
| |||||||
1 | (11) 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 | (12) a plan describing how the hemp extract infuser | ||||||
6 | will address each of the following: | ||||||
7 | (A) Energy needs, including estimates of monthly | ||||||
8 | electricity and gas usage, to what extent it will | ||||||
9 | procure energy from a local utility or from on-site | ||||||
10 | generation, and if it has or will adopt a sustainable | ||||||
11 | energy use and energy conservation policy. | ||||||
12 | (B) Water needs, including estimated water draw, | ||||||
13 | and if it has or will adopt a sustainable water use and | ||||||
14 | water conservation policy. | ||||||
15 | (C) Waste management, including if it has or will | ||||||
16 | adopt a waste reduction policy; | ||||||
17 | (13) a recycling plan that meets the following | ||||||
18 | requirements: | ||||||
19 | (A) A commitment that any recyclable waste | ||||||
20 | generated by the hemp extract infuser shall be | ||||||
21 | recycled per applicable State and local laws, | ||||||
22 | ordinances, and rules. | ||||||
23 | (B) A commitment to comply with local waste | ||||||
24 | provisions. A hemp extract infuser commits to remain | ||||||
25 | in compliance with applicable State and federal | ||||||
26 | environmental requirements, including, but not limited |
| |||||||
| |||||||
1 | to, storing, securing, and managing all recyclables | ||||||
2 | and waste, including organic waste composed of or | ||||||
3 | containing hemp extract products, in accordance with | ||||||
4 | applicable State and local laws, ordinances, and | ||||||
5 | rules; and | ||||||
6 | (14) any other information required by rule. | ||||||
7 | Section 20-10. Renewal of licenses. | ||||||
8 | (a) A hemp extract infuser license issued under Section | ||||||
9 | 20-5 shall expire 2 years after the date issued. | ||||||
10 | (b) A license holder shall submit a renewal application as | ||||||
11 | provided by the Department and pay the required renewal fee. | ||||||
12 | The Department shall require an agent, employee, contracting, | ||||||
13 | and subcontracting diversity report and an environmental | ||||||
14 | impact report with its renewal application. No license may be | ||||||
15 | renewed if it is currently under revocation or suspension for | ||||||
16 | violation of this Act, the Cannabis Regulation and Tax Act, or | ||||||
17 | the Industrial Hemp Act or any rules that adopted under this | ||||||
18 | Act, the Cannabis Regulation and Tax Act, or the Industrial | ||||||
19 | Hemp Act or if the licensee, principal officer, board member, | ||||||
20 | person having a financial or voting interest of 5% or greater | ||||||
21 | in the licensee, or agent is delinquent in filing any required | ||||||
22 | tax returns or paying any amounts owed to the State. | ||||||
23 | (c) For a hemp extract infuser license, $100 shall be paid | ||||||
24 | as a renewal fee and shall be deposited into the Cannabis | ||||||
25 | Regulation Fund. |
| |||||||
| |||||||
1 | (d) If a hemp extract infuser fails to renew its license | ||||||
2 | before expiration, the hemp extract infuser shall cease | ||||||
3 | operations until the license is renewed. | ||||||
4 | (e) A hemp extract infuser that continues to operate | ||||||
5 | without renewal of its license is subject to penalty as | ||||||
6 | provided in this Article or any rules that may be adopted | ||||||
7 | pursuant to this Article. | ||||||
8 | (f) The Department shall not renew a license if the | ||||||
9 | applicant is delinquent in filing required tax returns or | ||||||
10 | paying amounts owed to the State. | ||||||
11 | Section 20-15 Denial of application. | ||||||
12 | (a) An application for a hemp extract infuser license must | ||||||
13 | be denied if any of the following conditions are met: | ||||||
14 | (1) The applicant failed to submit the materials | ||||||
15 | required by this Article. | ||||||
16 | (2) The applicant would not be in compliance with | ||||||
17 | local zoning rules or permit requirements. | ||||||
18 | (3) One or more of the prospective principal officers | ||||||
19 | or board members causes a violation of this Act. | ||||||
20 | (4) One or more of the principal officers or board | ||||||
21 | members is under 21 years of age. | ||||||
22 | (5) The person has submitted an application for a | ||||||
23 | license under this Act or this Article that contains false | ||||||
24 | information. | ||||||
25 | (6) If the licensee, principal officer, board member, |
| |||||||
| |||||||
1 | agent, or person having a financial or voting interest of | ||||||
2 | 5% or greater in the licensee is delinquent in filing any | ||||||
3 | required tax returns or paying any amounts owed to the | ||||||
4 | State of Illinois. | ||||||
5 | Article 25. | ||||||
6 | Hemp Concentrate Infusers | ||||||
7 | Section 25-5. Hemp concentrate infuser application. When | ||||||
8 | applying for a license, the applicant shall electronically | ||||||
9 | submit the following in such form as the Department may | ||||||
10 | direct: | ||||||
11 | (1) the nonrefundable application fee of $5,000 for | ||||||
12 | each license for which the applicant is applying, which | ||||||
13 | shall be deposited into the Cannabis Regulation Fund; | ||||||
14 | (2) the legal name of the hemp concentrate infuser; | ||||||
15 | (3) the proposed physical address of the hemp | ||||||
16 | concentrate infuser; | ||||||
17 | (4) the name, address, social security number, and | ||||||
18 | date of birth of each principal officer and board member | ||||||
19 | of the hemp concentrate infuser. Each principal officer | ||||||
20 | and board member shall be at least 21 years of age; | ||||||
21 | (5) the details of any administrative or judicial | ||||||
22 | proceeding in which any of the principal officers or board | ||||||
23 | members of the hemp concentrate infuser (i) pled guilty, | ||||||
24 | were convicted, fined, or had a registration or license |
| |||||||
| |||||||
1 | suspended or revoked, or (ii) managed or served on the | ||||||
2 | board of a business or nonprofit organization that pled | ||||||
3 | guilty, was convicted, fined, or had a registration or | ||||||
4 | license suspended or revoked; | ||||||
5 | (6) proposed operating bylaws that include procedures | ||||||
6 | for the oversight of the hemp concentrate infuser, | ||||||
7 | including the development and implementation of an | ||||||
8 | intermediate hemp product monitoring system, accurate | ||||||
9 | recordkeeping, staffing plan, and security plan approved | ||||||
10 | by the Illinois State Police that are in accordance with | ||||||
11 | the rules issued by the Department under this Act. A | ||||||
12 | physical inventory of all intermediate hemp products, hemp | ||||||
13 | concentrate, and hemp extract shall be performed on a | ||||||
14 | weekly basis by the hemp concentrate infuser; | ||||||
15 | (7) verification from the Illinois State Police that | ||||||
16 | all background checks of the prospective principal | ||||||
17 | officers, board members, and agents of the hemp | ||||||
18 | concentrate infuser organization have been conducted; | ||||||
19 | (8) a copy of the current local zoning ordinance and | ||||||
20 | verification that the proposed hemp concentrate infuser is | ||||||
21 | in compliance with the local zoning rules and distance | ||||||
22 | limitations established by the local jurisdiction; | ||||||
23 | (9) proposed employment practices, in which the | ||||||
24 | applicant must demonstrate a plan of action to inform, | ||||||
25 | hire, and educate minorities, women, veterans, and persons | ||||||
26 | with disabilities, engage in fair labor practices, and |
| |||||||
| |||||||
1 | provide worker protections; | ||||||
2 | (10) whether an applicant can demonstrate experience | ||||||
3 | in or business practices that promote economic empowerment | ||||||
4 | in disproportionately impacted areas, as that term is | ||||||
5 | defined in Section 1-10 of the Cannabis Regulation and Tax | ||||||
6 | Act; | ||||||
7 | (11) experience with infusing products with hemp | ||||||
8 | concentrate; | ||||||
9 | (12) a description of the enclosed, locked facility | ||||||
10 | where hemp concentrate will be infused, packaged, or | ||||||
11 | otherwise prepared for distribution to a hemp concentrate | ||||||
12 | retailer organization or other hemp concentrate infuser; | ||||||
13 | (13) processing, inventory, and packaging plans; | ||||||
14 | (14) a description of the applicant's experience with | ||||||
15 | operating a commercial kitchen or laboratory preparing | ||||||
16 | products for human consumption; | ||||||
17 | (15) a list of any academic degrees, certifications, | ||||||
18 | or relevant experience of all prospective principal | ||||||
19 | officers, board members, and agents of the related | ||||||
20 | business; | ||||||
21 | (16) the identity of every person having a financial | ||||||
22 | or voting interest of 5% or greater in the hemp | ||||||
23 | concentrate infuser operation with respect to which | ||||||
24 | license is sought, whether a trust, corporation, | ||||||
25 | partnership, limited liability company, or sole | ||||||
26 | proprietorship, including the name and address of each |
| |||||||
| |||||||
1 | person; | ||||||
2 | (17) a plan describing how the infuser will address | ||||||
3 | each of the following: | ||||||
4 | (A) Energy needs, including estimates of monthly | ||||||
5 | electricity and gas usage, to what extent it will | ||||||
6 | procure energy from a local utility or from on-site | ||||||
7 | generation, and if it has or will adopt a sustainable | ||||||
8 | energy use and energy conservation policy. | ||||||
9 | (B) Water needs, including estimated water draw, | ||||||
10 | and if it has or will adopt a sustainable water use and | ||||||
11 | water conservation policy. | ||||||
12 | (C) Waste management, including if it has or will | ||||||
13 | adopt a waste reduction policy; | ||||||
14 | (18) a recycling plan that meets the following | ||||||
15 | requirements: | ||||||
16 | (A) A commitment that any recyclable waste | ||||||
17 | generated by the hemp concentrate infuser shall be | ||||||
18 | recycled per applicable State and local laws, | ||||||
19 | ordinances, and rules. | ||||||
20 | (B) A commitment to comply with local waste | ||||||
21 | provisions. A hemp concentrate infuser commits to | ||||||
22 | remain in compliance with applicable State and federal | ||||||
23 | environmental requirements, including, but not limited | ||||||
24 | to, storing, securing, and managing all recyclables | ||||||
25 | and waste, including organic waste composed of or | ||||||
26 | containing finished hemp concentrate and hemp |
| |||||||
| |||||||
1 | concentrate derived products, in accordance with | ||||||
2 | applicable State and local laws, ordinances, and | ||||||
3 | rules; and | ||||||
4 | (19) any other information required by rule. | ||||||
5 | Section 25-10. Issuing licenses. | ||||||
6 | (a) The Department shall, by rule, develop a system to | ||||||
7 | score hemp concentrate infuser applications to | ||||||
8 | administratively rank applications based on the clarity, | ||||||
9 | organization, and quality of the applicant's responses to | ||||||
10 | required information. Applicants shall be awarded points based | ||||||
11 | on the following categories: | ||||||
12 | (1) Suitability of the proposed facility. | ||||||
13 | (2) Suitability of the employee training plan. | ||||||
14 | (3) Security and recordkeeping plan. | ||||||
15 | (4) Infusing plan. | ||||||
16 | (5) Product safety and labeling plan. | ||||||
17 | (6) Business plan. | ||||||
18 | (7) Community engagement plan. | ||||||
19 | (8) Labor and employment practices, which shall | ||||||
20 | constitute no less than 2% of total available points. | ||||||
21 | (9) Environmental plan, as described in paragraphs | ||||||
22 | (17) and (18) of Section 25-5. | ||||||
23 | (10) The applicant is 51% or more owned and controlled | ||||||
24 | by an individual or individuals who have been an Illinois | ||||||
25 | resident for the past 5 years as proved by tax records or 2 |
| |||||||
| |||||||
1 | of the following: | ||||||
2 | (A) A signed lease agreement that includes the | ||||||
3 | applicant's name. | ||||||
4 | (B) A property deed that includes the applicant's | ||||||
5 | name. | ||||||
6 | (C) School records. | ||||||
7 | (D) A voter registration card. | ||||||
8 | (E) An Illinois driver's license, an Illinois | ||||||
9 | Identification Card, or an Illinois Person with a | ||||||
10 | Disability Identification Card. | ||||||
11 | (F) A paycheck stub. | ||||||
12 | (G) A utility bill. | ||||||
13 | (H) Any other proof of residency or other | ||||||
14 | information necessary to establish residence as | ||||||
15 | provided by rule. | ||||||
16 | (11) The applicant is 51% or more controlled and owned | ||||||
17 | by an individual or individuals who meet the | ||||||
18 | qualifications of a veteran, as that term is defined in | ||||||
19 | Section 45-57 of the Illinois Procurement Code. | ||||||
20 | (12) A diversity plan that includes a narrative of not | ||||||
21 | more than 2,500 words that establishes a goal of diversity | ||||||
22 | in ownership, management, employment, and contracting to | ||||||
23 | ensure that diverse participants and groups are afforded | ||||||
24 | equality of opportunity. | ||||||
25 | (13) Any other criteria the Department may set by rule | ||||||
26 | for points. |
| |||||||
| |||||||
1 | (b) If the applicant is awarded a hemp concentrate infuser | ||||||
2 | license, the information and plans that an applicant provided | ||||||
3 | in its application shall be a mandatory condition of the | ||||||
4 | license. Any variation from or failure to perform such plans | ||||||
5 | may result in discipline, including the revocation or | ||||||
6 | nonrenewal of a license. | ||||||
7 | (c) If the applicant is awarded a hemp concentrate infuser | ||||||
8 | license, the applicant shall pay a fee of $5,000 prior to | ||||||
9 | receiving the license, to be deposited into the Cannabis | ||||||
10 | Regulation Fund. | ||||||
11 | Section 25-15. Denial of application. An application for a | ||||||
12 | hemp concentrate infuser license shall be denied if any of the | ||||||
13 | following conditions are met: | ||||||
14 | (1) The applicant failed to submit the materials | ||||||
15 | required by this Article. | ||||||
16 | (2) The applicant would not be in compliance with | ||||||
17 | local zoning rules or permit requirements. | ||||||
18 | (3) One or more of the prospective principal officers | ||||||
19 | or board members causes a violation of Section 25-20. | ||||||
20 | (4) One or more of the principal officers or board | ||||||
21 | members is under 21 years of age. | ||||||
22 | (5) The person has submitted an application for a | ||||||
23 | license under this Act or this Article that contains false | ||||||
24 | information. | ||||||
25 | (6) If the licensee, principal officer, board member, |
| |||||||
| |||||||
1 | agent, or person having a financial or voting interest of | ||||||
2 | 5% or greater in the licensee is delinquent in filing any | ||||||
3 | required tax returns or paying any amounts owed to the | ||||||
4 | State of Illinois. | ||||||
5 | Section 25-20. Hemp concentrate infuser organization | ||||||
6 | requirements; prohibitions. | ||||||
7 | (a) The operating documents of a hemp concentrate infuser | ||||||
8 | shall include procedures for the oversight of the infuser, an | ||||||
9 | inventory monitoring system including a physical inventory | ||||||
10 | recorded weekly, accurate recordkeeping, and a staffing plan. | ||||||
11 | (b) A hemp concentrate infuser shall implement a security | ||||||
12 | plan reviewed by the Illinois State Police that includes, but | ||||||
13 | is not limited to: facility access controls; perimeter | ||||||
14 | intrusion detection systems; personnel identification systems; | ||||||
15 | and a 24-hour surveillance system to monitor the interior and | ||||||
16 | exterior of the infuser facility and that is accessible to | ||||||
17 | authorized law enforcement, the Department of Public Health, | ||||||
18 | and the Department in real time. | ||||||
19 | (c) Any processing of hemp concentrate by a hemp | ||||||
20 | concentrate infuser must take place in an enclosed, locked | ||||||
21 | facility at the physical address provided to the Department | ||||||
22 | during the licensing process. The hemp concentrate infuser | ||||||
23 | location shall only be accessed by the agents working for the | ||||||
24 | hemp concentrate infuser, Department staff performing | ||||||
25 | inspections, Department of Public Health staff performing |
| |||||||
| |||||||
1 | inspections, State and local law enforcement or other | ||||||
2 | emergency personnel, contractors working on jobs unrelated to | ||||||
3 | hemp concentrate, intermediate hemp products, or hemp | ||||||
4 | concentrate derived products, such as installing or | ||||||
5 | maintaining security devices or performing electrical wiring, | ||||||
6 | hemp retailer agents as provided in this Act, participants in | ||||||
7 | an incubator program, individuals in a mentoring or | ||||||
8 | educational program approved by the State, local safety or | ||||||
9 | health inspectors, or other individuals as provided by rule. | ||||||
10 | (d) A hemp concentrate infuser may not sell or distribute | ||||||
11 | any intermediate hemp products, hemp concentrate, or hemp | ||||||
12 | concentrate derived products to any person other than a hemp | ||||||
13 | concentrate retailer, other hemp concentrate infuser, | ||||||
14 | Qualifying Applicant or Social Equity Justice Involved | ||||||
15 | Applicant under the Cannabis Regulation and Tax Act, or as | ||||||
16 | otherwise authorized by rule. | ||||||
17 | (e) A hemp concentrate infuser may not either directly or | ||||||
18 | indirectly discriminate in price between different hemp | ||||||
19 | business establishments that are purchasing a like grade, | ||||||
20 | brand, and quality of hemp concentrate derived product or | ||||||
21 | intermediate hemp product. Nothing in this subsection prevents | ||||||
22 | a hemp concentrate infuser from pricing hemp concentrate | ||||||
23 | derived products or intermediate hemp products differently | ||||||
24 | based on differences in the cost of manufacturing or | ||||||
25 | processing, the quantities sold, such volume discounts, or the | ||||||
26 | way the products are delivered. |
| |||||||
| |||||||
1 | (f) Any hemp concentrate or intermediate hemp product | ||||||
2 | infused by an infuser and intended for distribution to a hemp | ||||||
3 | concentrate retailer, other hemp concentrate infuser, or | ||||||
4 | Qualifying Applicant or Social Equity Justice Involved | ||||||
5 | Applicant defined by the Cannabis Regulation and Tax Act must | ||||||
6 | be entered into a data collection system and packaged and | ||||||
7 | labeled under Section 40-15. All hemp concentrate derived | ||||||
8 | products or intermediate hemp products must be placed into a | ||||||
9 | container for transport. | ||||||
10 | (g) A hemp concentrate infuser is subject to random | ||||||
11 | inspections by the Department, the Department of Public | ||||||
12 | Health, the Illinois State Police, local law enforcement, or | ||||||
13 | as provided by rule. | ||||||
14 | (h) A hemp concentrate infuser agent shall notify local | ||||||
15 | law enforcement, the Illinois State Police, and the Department | ||||||
16 | within 24 hours of the discovery of any loss or theft. | ||||||
17 | Notification shall be made by phone, in person, or by written | ||||||
18 | or electronic communication. | ||||||
19 | (i) A hemp concentrate infuser may not be located in an | ||||||
20 | area zoned for residential use. | ||||||
21 | (j) A hemp concentrate infuser or hemp concentrate infuser | ||||||
22 | agent shall not transport hemp concentrate, hemp concentrate | ||||||
23 | derived products or intermediate hemp products to any other | ||||||
24 | hemp business establishment without a hemp distributor license | ||||||
25 | except as follows: | ||||||
26 | (A) If the hemp concentrate infuser is located in a |
| |||||||
| |||||||
1 | county with a population of 3,000,000 or more, the hemp | ||||||
2 | business establishment receiving the hemp concentrate, | ||||||
3 | hemp concentrate derived products, or intermediate hemp | ||||||
4 | products is within 2,000 feet of the property line of the | ||||||
5 | hemp concentrate infuser. | ||||||
6 | (B) If the hemp concentrate infuser is located in a | ||||||
7 | county with a population of at least 700,000 but fewer | ||||||
8 | than 3,000,000, the hemp business establishment receiving | ||||||
9 | the hemp concentrate, hemp concentrate derived products or | ||||||
10 | intermediate hemp products is within 2 miles of the | ||||||
11 | infuser. | ||||||
12 | (C) If the hemp concentrate infuser is located in a | ||||||
13 | county with a population of fewer than 700,000, the hemp | ||||||
14 | business establishment receiving the hemp concentrate, | ||||||
15 | hemp concentrate derived products, or intermediate hemp | ||||||
16 | products is within 15 miles of the infuser. | ||||||
17 | (k) A hemp concentrate infuser may enter into a contract | ||||||
18 | with a hemp distributor to transport hemp concentrate, hemp | ||||||
19 | concentrate derived products, or intermediate hemp products to | ||||||
20 | a hemp concentrate retailer, other hemp concentrate infuser, | ||||||
21 | Qualifying Applicant or Social Equity Justice Involved | ||||||
22 | Applicant defined by the Cannabis Regulation and Tax Act, or a | ||||||
23 | laboratory. | ||||||
24 | (l) At no time shall a hemp concentrate infuser or a hemp | ||||||
25 | concentrate infuser agent perform the extraction of hemp | ||||||
26 | extract, hemp concentrate, or intermediate hemp products from |
| |||||||
| |||||||
1 | industrial hemp. | ||||||
2 | Section 25-25. Hemp concentrate infuser agent | ||||||
3 | identification card. | ||||||
4 | (a) The Department shall: | ||||||
5 | (1) establish, by rule, the information required in an | ||||||
6 | initial application or renewal application for an agent | ||||||
7 | identification card submitted under this Act and the | ||||||
8 | nonrefundable fee to accompany the initial application or | ||||||
9 | renewal application; | ||||||
10 | (2) verify the information contained in an initial | ||||||
11 | application or renewal application for a hemp concentrate | ||||||
12 | infuser agent identification card submitted under this | ||||||
13 | Act, and approve or deny an application within 30 days of | ||||||
14 | receiving a completed initial application or renewal | ||||||
15 | application and all supporting documentation required by | ||||||
16 | rule; | ||||||
17 | (3) issue a hemp concentrate infuser agent | ||||||
18 | identification card to a qualifying agent within 15 | ||||||
19 | business days of approving the initial application or | ||||||
20 | renewal application; | ||||||
21 | (4) enter the license number of the hemp concentrate | ||||||
22 | infuser 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 |
| |||||||
| |||||||
1 | submitted. The Department may by rule require prospective | ||||||
2 | agents to file their applications by electronic means and | ||||||
3 | provide notices to the agents by electronic means. | ||||||
4 | (b) A hemp concentrate infuser agent must keep the hemp | ||||||
5 | concentrate infuser agent's hemp concentrate infuser agent | ||||||
6 | identification card visible at all times when on the property | ||||||
7 | of a hemp business establishment including the hemp business | ||||||
8 | establishment for which the person is an agent for. | ||||||
9 | (c) Hemp concentrate infuser agent identification cards | ||||||
10 | shall contain the following: | ||||||
11 | (1) The name of the cardholder. | ||||||
12 | (2) The date of issuance and expiration date of the | ||||||
13 | identification card. | ||||||
14 | (3) A random 10-digit alphanumeric identification | ||||||
15 | number containing at least 4 numbers and at least 4 | ||||||
16 | letters that is unique to the holder. | ||||||
17 | (4) A photograph of the cardholder. | ||||||
18 | (5) The legal name of the hemp concentrate infuser | ||||||
19 | employing the agent. | ||||||
20 | (d) A hemp concentrate infuser agent identification card | ||||||
21 | shall be immediately returned to the hemp concentrate infuser | ||||||
22 | of the agent upon termination of the agent's employment. | ||||||
23 | (e) A hemp concentrate infuser agent identification card | ||||||
24 | lost by a hemp concentrate infuser agent shall be reported to | ||||||
25 | the Illinois State Police and the Department immediately upon | ||||||
26 | discovery of the loss. |
| |||||||
| |||||||
1 | (f) An agent applicant may begin employment at a hemp | ||||||
2 | concentrate infuser while the agent applicant's hemp | ||||||
3 | concentrate infuser agent identification card application is | ||||||
4 | pending. Upon approval, the Department shall issue the agent's | ||||||
5 | identification card to the agent. If denied, the hemp | ||||||
6 | concentrate infuser and the agent applicant shall be notified | ||||||
7 | and the agent applicant must cease all activity at the hemp | ||||||
8 | concentrate infuser immediately. | ||||||
9 | Section 25-30. Hemp concentrate infuser organization | ||||||
10 | background checks. | ||||||
11 | (a) Through the Illinois State Police, the Department | ||||||
12 | shall conduct a background check of the prospective principal | ||||||
13 | officers, board members, and agents of a hemp concentrate | ||||||
14 | infuser applying for a license or a hemp concentrate infuser | ||||||
15 | agent identification card under this Article. The Illinois | ||||||
16 | State Police shall charge a fee set by rule for conducting the | ||||||
17 | criminal history record check, which shall be deposited into | ||||||
18 | the State Police Services Fund and shall not exceed the actual | ||||||
19 | cost of the record check. Each hemp concentrate infuser | ||||||
20 | prospective principal officer, board member, or agent shall | ||||||
21 | submit a full set of fingerprints to the Illinois State Police | ||||||
22 | for the purpose of obtaining a State and federal criminal | ||||||
23 | records check. These fingerprints shall be checked against the | ||||||
24 | fingerprint records during the application process and in a | ||||||
25 | frequency thereafter as prescribed by the Department, to the |
| |||||||
| |||||||
1 | extent allowed by law, filed in any relevant Illinois State | ||||||
2 | Police and Federal Bureau of Investigation criminal history | ||||||
3 | records databases. The Illinois State Police shall furnish, | ||||||
4 | following positive identification, all conviction information | ||||||
5 | to the Department. | ||||||
6 | (b) When applying for the initial license or | ||||||
7 | identification card, the background checks for all prospective | ||||||
8 | principal officers, board members, and agents shall be | ||||||
9 | completed before submitting the application to the licensing | ||||||
10 | or issuing agency. | ||||||
11 | Section 25-35. Renewal of hemp concentrate infuser | ||||||
12 | licenses and agent identification cards. | ||||||
13 | (a) A license or identification card issued under this | ||||||
14 | Article shall be renewed annually. A hemp concentrate infuser | ||||||
15 | shall receive written or electronic notice 90 days before the | ||||||
16 | expiration of its current license that the license will | ||||||
17 | expire. The Department shall grant a renewal within 45 days of | ||||||
18 | submission of a renewal application if: | ||||||
19 | (1) the hemp concentrate infuser submits a renewal | ||||||
20 | application and the required nonrefundable renewal fee of | ||||||
21 | $20,000, to be deposited into the Cannabis Regulation | ||||||
22 | Fund; | ||||||
23 | (2) the Department has not suspended or revoked the | ||||||
24 | license of the hemp concentrate infuser for violating this | ||||||
25 | Act or rules adopted under this Act; |
| |||||||
| |||||||
1 | (3) the hemp concentrate infuser has continued to | ||||||
2 | operate in accordance with all plans submitted as part of | ||||||
3 | its application and approved by the Department or any | ||||||
4 | amendments thereto that have been approved by the | ||||||
5 | Department; | ||||||
6 | (4) the hemp concentrate infuser has submitted an | ||||||
7 | agent, employee, contracting, and subcontracting diversity | ||||||
8 | report as required by the Department; and | ||||||
9 | (5) the hemp concentrate infuser has submitted an | ||||||
10 | environmental impact report. | ||||||
11 | (b) If a hemp concentrate infuser fails to renew its | ||||||
12 | license before expiration, the hemp concentrate infuser shall | ||||||
13 | cease operations until its license is renewed. | ||||||
14 | (c) If a hemp concentrate infuser agent fails to renew the | ||||||
15 | agent's hemp concentrate infuser agent identification card | ||||||
16 | before its expiration, the agent shall cease to work as an | ||||||
17 | agent of the hemp concentrate infuser until the agent's hemp | ||||||
18 | concentrate infuser agent identification card is renewed. | ||||||
19 | (d) Any hemp concentrate infuser that continues to operate | ||||||
20 | or any hemp concentrate infuser agent who continues to work as | ||||||
21 | an agent after the applicable license or a hemp concentrate | ||||||
22 | infuser agent identification card has expired without renewal | ||||||
23 | is subject to the penalties provided under Section 25-20. | ||||||
24 | (e) The Department may not renew a license or a hemp | ||||||
25 | concentrate infuser agent identification card if the applicant | ||||||
26 | is delinquent in filing any required tax returns or paying any |
| |||||||
| |||||||
1 | amounts owed to the State of Illinois. | ||||||
2 | Section 25-40. Disclosure of ownership and control. | ||||||
3 | (a) Each hemp concentrate infuser applicant and licensee | ||||||
4 | shall file and maintain a table of organization, ownership, | ||||||
5 | and control with the Department. The table of organization, | ||||||
6 | ownership, and control shall contain the information required | ||||||
7 | by this Section in sufficient detail to identify all owners, | ||||||
8 | directors, and principal officers, and the title of each | ||||||
9 | principal officer or business entity that, through direct or | ||||||
10 | indirect means, manages, owns, or controls the applicant or | ||||||
11 | licensee. | ||||||
12 | (b) The table of organization, ownership, and control | ||||||
13 | shall identify the following information: | ||||||
14 | (1) The management structure, ownership, and control | ||||||
15 | of the applicant or license holder including the name of | ||||||
16 | each principal officer or business entity, the office or | ||||||
17 | position held, and the percentage ownership interest, if | ||||||
18 | any. If the business entity has a parent company, the name | ||||||
19 | of each owner, board member, and officer of the parent | ||||||
20 | company and the percentage ownership interest in the | ||||||
21 | parent company and the hemp concentrate infuser. | ||||||
22 | (2) If the applicant or licensee is a business entity | ||||||
23 | with publicly traded stock, the identification of | ||||||
24 | ownership shall be provided as required in subsection (c). | ||||||
25 | (c) If a business entity identified in subsection (b) is a |
| |||||||
| |||||||
1 | publicly traded company, the following information shall be | ||||||
2 | provided in the table of organization, ownership, and control: | ||||||
3 | (1) The name and percentage of ownership interest of | ||||||
4 | each individual or business entity with ownership of more | ||||||
5 | than 5% of the voting shares of the entity, to the extent | ||||||
6 | such information is known or contained in 13D or 13G | ||||||
7 | Securities and Exchange Commission filings. | ||||||
8 | (2) To the extent known, the names and percentage of | ||||||
9 | interest of ownership of persons who are relatives of one | ||||||
10 | another and who together exercise control over or own more | ||||||
11 | than 10% of the voting shares of the entity. | ||||||
12 | (d) A hemp concentrate infuser with a parent company or | ||||||
13 | companies, or partially owned or controlled by another entity, | ||||||
14 | must disclose to the Department the relationship and all | ||||||
15 | owners, board members, officers, or individuals with control | ||||||
16 | or management of those entities. A hemp concentrate infuser | ||||||
17 | organization shall not shield its ownership or control from | ||||||
18 | the Department. | ||||||
19 | (e) A principal officer must submit a complete online | ||||||
20 | application with the Department within 14 days of the hemp | ||||||
21 | concentrate infuser organization being licensed by the | ||||||
22 | Department or within 14 days of Department notice of approval | ||||||
23 | as a new principal officer. | ||||||
24 | (f) A principal officer may not allow the principal | ||||||
25 | officer's registration to expire. | ||||||
26 | (g) A hemp concentrate infuser organization separating |
| |||||||
| |||||||
1 | with a principal officer must do so under this Act. The | ||||||
2 | principal officer must communicate the separation to the | ||||||
3 | Department within 5 business days. | ||||||
4 | (h) A principal officer not in compliance with the | ||||||
5 | requirements of this Act shall be removed from the principal | ||||||
6 | officer's position with the hemp concentrate infuser or shall | ||||||
7 | otherwise terminate the principal officer's affiliation. | ||||||
8 | Failure to do so may subject the hemp concentrate infuser to | ||||||
9 | discipline, suspension, or revocation of its license by the | ||||||
10 | Department. | ||||||
11 | (i) It is the responsibility of the hemp concentrate | ||||||
12 | infuser and its principal officers to promptly notify the | ||||||
13 | Department of any change of the principal place of business | ||||||
14 | address, hours of operation, change in ownership or control, | ||||||
15 | or a change of the hemp concentrate infuser's primary or | ||||||
16 | secondary contact information. Any changes must be made to the | ||||||
17 | Department in writing. | ||||||
18 | Article 30. | ||||||
19 | Hemp Processor | ||||||
20 | Section 30-5. Hemp processor application. When applying | ||||||
21 | for a license, the applicant shall electronically submit the | ||||||
22 | following in such form as the Department may direct: | ||||||
23 | (1) the nonrefundable application fee of $5,000 for | ||||||
24 | each license for which the applicant is applying, which |
| |||||||
| |||||||
1 | shall be deposited into the Cannabis Regulation Fund; | ||||||
2 | (2) the legal name of the hemp processor; | ||||||
3 | (3) the proposed physical address of the hemp | ||||||
4 | processor; | ||||||
5 | (4) the name, address, social security number, and | ||||||
6 | date of birth of each principal officer and board member | ||||||
7 | of the hemp processor. Each principal officer and board | ||||||
8 | member shall be at least 21 years of age; | ||||||
9 | (5) the details of any administrative or judicial | ||||||
10 | proceeding in which any of the principal officers or board | ||||||
11 | members of the hemp processor (i) pled guilty, were | ||||||
12 | convicted, fined, or had a registration or license | ||||||
13 | suspended or revoked, or (ii) managed or served on the | ||||||
14 | board of a business or nonprofit organization that pled | ||||||
15 | guilty, was convicted, fined, or had a registration or | ||||||
16 | license suspended or revoked; | ||||||
17 | (6) proposed operating bylaws that include procedures | ||||||
18 | for the oversight of the hemp processor, including the | ||||||
19 | development and implementation of a plant monitoring | ||||||
20 | system, accurate recordkeeping, staffing plan, and | ||||||
21 | security plan approved by the Illinois State Police that | ||||||
22 | are in accordance with the rules issued by the Department | ||||||
23 | under this Act; | ||||||
24 | (7) verification from the Illinois State Police that | ||||||
25 | all background checks of the prospective principal | ||||||
26 | officers, board members, and agents of the hemp processor |
| |||||||
| |||||||
1 | have been conducted and those persons have not been | ||||||
2 | convicted of an excluded offense; | ||||||
3 | (8) a copy of the current local zoning ordinance and | ||||||
4 | verification that the proposed hemp processor is in | ||||||
5 | compliance with the local zoning rules and distance | ||||||
6 | limitations established by the local jurisdiction; | ||||||
7 | (9) proposed employment practices in which the | ||||||
8 | applicant must demonstrate a plan of action to inform, | ||||||
9 | hire, and educate minorities, women, veterans, and persons | ||||||
10 | with disabilities and engage in fair labor practices and | ||||||
11 | provide worker protections; | ||||||
12 | (10) whether an applicant can demonstrate experience | ||||||
13 | in or business practices that promote economic empowerment | ||||||
14 | in disproportionately impacted areas, as that term is | ||||||
15 | defined in Section 1-10 of the Cannabis Regulation and Tax | ||||||
16 | Act; | ||||||
17 | (11) experience with the extraction, processing, or | ||||||
18 | infusing of oils similar to those derived from cannabis, | ||||||
19 | hemp, or other business practices to be performed by the | ||||||
20 | hemp processor; | ||||||
21 | (12) a description of the enclosed, locked facility | ||||||
22 | where hemp will be processed, packaged, or otherwise | ||||||
23 | prepared for distribution to a cannabis or hemp business | ||||||
24 | establishment or other hemp processor; | ||||||
25 | (13) processing, inventory, and packaging plans; | ||||||
26 | (14) a description of the applicant's experience with |
| |||||||
| |||||||
1 | manufacturing equipment and chemicals to be used in hemp | ||||||
2 | processing; | ||||||
3 | (15) a list of any academic degrees, certifications, | ||||||
4 | or relevant experience of all prospective principal | ||||||
5 | officers, board members, and agents with related | ||||||
6 | businesses; | ||||||
7 | (16) the identity of every person having a financial | ||||||
8 | or voting interest of 5% or greater in the hemp processor | ||||||
9 | operation with respect to which the license is sought, | ||||||
10 | whether a trust, corporation, partnership, limited | ||||||
11 | liability company, or sole proprietorship, including the | ||||||
12 | name and address of each person; | ||||||
13 | (17) a plan describing how the hemp processor will | ||||||
14 | address each of the following: | ||||||
15 | (A) Energy needs, including estimates of monthly | ||||||
16 | electricity and gas usage, to what extent it will | ||||||
17 | procure energy from a local utility or from on-site | ||||||
18 | generation and if it has or will adopt a sustainable | ||||||
19 | energy use and energy conservation policy. | ||||||
20 | (B) Water needs, including estimated water draw, | ||||||
21 | and if it has or will adopt a sustainable water use and | ||||||
22 | water conservation policy. | ||||||
23 | (C) Waste management, including if it has or will | ||||||
24 | adopt a waste reduction policy; and | ||||||
25 | (18) any other information required by rule. |
| |||||||
| |||||||
1 | Section 30-10. Inventory. A physical inventory shall be | ||||||
2 | performed of all intermediate hemp products, hemp extract, or | ||||||
3 | hemp concentrate on a weekly basis by the hemp processor. | ||||||
4 | Section 30-15. Issuance of licenses. | ||||||
5 | (a) The Department shall, by rule, develop a system to | ||||||
6 | score hemp processor applications to administratively rank | ||||||
7 | applications based on the clarity, organization, and quality | ||||||
8 | of the applicant's responses to required information. | ||||||
9 | Applicants shall be awarded points based on the following | ||||||
10 | categories: | ||||||
11 | (1) Suitability of the proposed facility. | ||||||
12 | (2) Suitability of employee training plan. | ||||||
13 | (3) Security and recordkeeping plan. | ||||||
14 | (4) Processing plan. | ||||||
15 | (5) Product safety and labeling plan. | ||||||
16 | (6) Business plan. | ||||||
17 | (7) Community engagement plan. | ||||||
18 | (8) Environmental plan as described in paragraphs | ||||||
19 | (18), (19), (20), and (21) of subsection (a) of Section | ||||||
20 | 30-5. | ||||||
21 | (9) The applicant is 51% or more owned and controlled | ||||||
22 | by an individual or individuals who have been an Illinois | ||||||
23 | resident for the past 5 years as proved by tax records or 2 | ||||||
24 | of the following: | ||||||
25 | (A) A signed lease agreement that includes the |
| |||||||
| |||||||
1 | applicant's name. | ||||||
2 | (B) A property deed that includes the applicant's | ||||||
3 | name; | ||||||
4 | (C) School records. | ||||||
5 | (D) A voter registration card. | ||||||
6 | (E) An Illinois driver's license, an Illinois | ||||||
7 | Identification Card, or an Illinois Person with a | ||||||
8 | Disability Identification Card. | ||||||
9 | (F) A paycheck stub. | ||||||
10 | (G) A utility bill. | ||||||
11 | (H) Any other proof of residency or other | ||||||
12 | information necessary to establish residence as | ||||||
13 | provided by rule. | ||||||
14 | (10) The applicant is 51% or more controlled and owned | ||||||
15 | by an individual or individuals who meet the | ||||||
16 | qualifications of a veteran as defined in Section 45-57 of | ||||||
17 | the Illinois Procurement Code. | ||||||
18 | (11) A diversity plan that includes a narrative of not | ||||||
19 | more than 2,500 words that establishes a goal of diversity | ||||||
20 | in ownership, management, employment, and contracting to | ||||||
21 | ensure that diverse participants and groups are afforded | ||||||
22 | equality of opportunity. | ||||||
23 | (12) Any other criteria the Department may set by rule | ||||||
24 | for points. A person or entity awarded a license pursuant | ||||||
25 | to this Section may sell its hemp processor licenses | ||||||
26 | subject to the restrictions of this Act or as determined |
| |||||||
| |||||||
1 | by administrative rule. | ||||||
2 | (b) The applicant shall demonstrate a desire to engage | ||||||
3 | with its community by participating in one or more of, but not | ||||||
4 | limited to, the following actions: (i) establishment of an | ||||||
5 | incubator program designed to increase participation in the | ||||||
6 | hemp industry by persons who would qualify as Social Equity | ||||||
7 | Applicants as defined by the Cannabis Regulation and Tax Act; | ||||||
8 | (ii) providing financial assistance to substance abuse | ||||||
9 | treatment centers; (iii) educating children and teens about | ||||||
10 | the potential harms of hemp concentrate derived products use; | ||||||
11 | or (iv) other measures demonstrating a commitment to the | ||||||
12 | applicant's community. | ||||||
13 | (c) If the applicant be awarded a hemp processor license, | ||||||
14 | the information and plans that an applicant provided in its | ||||||
15 | application, including any plans submitted in the application, | ||||||
16 | shall be a mandatory condition of the license. Any variation | ||||||
17 | from or failure to perform such plans may result in | ||||||
18 | discipline, including the revocation or nonrenewal of a | ||||||
19 | license. | ||||||
20 | (d) Upon the completion of the disparity and availability | ||||||
21 | study pertaining to hemp processors by the Cannabis Regulation | ||||||
22 | Oversight Officer pursuant to subsection (e) of Section 5-45 | ||||||
23 | of the Cannabis Regulation and Tax Act, the Department may | ||||||
24 | modify or change the licensing application process to reduce | ||||||
25 | or eliminate barriers from and remedy evidence of | ||||||
26 | discrimination identified in the disparity and availability |
| |||||||
| |||||||
1 | study. | ||||||
2 | Section 30-20. Denial of application. An application for a | ||||||
3 | hemp processor license must be denied if any of the following | ||||||
4 | conditions are met: | ||||||
5 | (1) The applicant failed to submit the materials | ||||||
6 | required by this Article. | ||||||
7 | (2) The applicant would not be in compliance with | ||||||
8 | local zoning rules or permit requirements. | ||||||
9 | (3) One or more of the principal officers or board | ||||||
10 | members is under 21 years of age. | ||||||
11 | (4) The person has submitted an application for a | ||||||
12 | license under this Act or this Article that contains false | ||||||
13 | information. | ||||||
14 | (5) If the licensee, principal officer, board member, | ||||||
15 | agent, or person having a financial or voting interest of | ||||||
16 | 5% or greater in the licensee is delinquent in filing any | ||||||
17 | required tax returns or paying any amounts owed to the | ||||||
18 | State of Illinois. | ||||||
19 | Section 30-25. Hemp processor requirements; prohibitions. | ||||||
20 | (a) The operating documents of a hemp processor shall | ||||||
21 | include procedures for the oversight of the hemp processor, an | ||||||
22 | intermediate hemp product monitoring system, including a | ||||||
23 | physical inventory recorded weekly, accurate recordkeeping, | ||||||
24 | and a staffing plan. |
| |||||||
| |||||||
1 | (b) A hemp processor shall implement a security plan | ||||||
2 | reviewed by the Illinois State Police that includes, but is | ||||||
3 | not limited to, facility access controls, perimeter intrusion | ||||||
4 | detection systems, personnel identification systems, and a | ||||||
5 | 24-hour surveillance system to monitor the interior and | ||||||
6 | exterior of the hemp processor facility and that is accessible | ||||||
7 | to authorized law enforcement and the Department in real time. | ||||||
8 | (c) All processing of hemp into intermediate hemp products | ||||||
9 | and hemp concentrate by a hemp processor must take place in an | ||||||
10 | enclosed, locked facility at the physical address provided to | ||||||
11 | the Department during the licensing process. The hemp | ||||||
12 | processor location shall only be accessed by the agents | ||||||
13 | working for the hemp processor, Department staff performing | ||||||
14 | inspections, Department of Public Health staff performing | ||||||
15 | inspections, State and local law enforcement or other | ||||||
16 | emergency personnel, contractors working on jobs unrelated to | ||||||
17 | hemp processing, such as installing or maintaining security | ||||||
18 | devices or performing electrical wiring, transporting | ||||||
19 | organization agents as provided in this Act, or participants | ||||||
20 | in the incubator program, individuals in a mentoring or | ||||||
21 | educational program approved by the State, or other | ||||||
22 | individuals as provided by rule. | ||||||
23 | (d) A hemp processor may not sell or distribute any | ||||||
24 | intermediate hemp product or hemp concentrate to any person | ||||||
25 | other than an Illinois-registered adult use cannabis craft | ||||||
26 | grower who meets the requirements of a Social Equity |
| |||||||
| |||||||
1 | Applicant, an adult use cannabis infuser that meets the | ||||||
2 | requirements of a Social Equity Applicant, an adult use | ||||||
3 | cannabis transporter that meets the requirements of a Social | ||||||
4 | Equity Applicant, a hemp concentrate infuser, or other hemp | ||||||
5 | processors. | ||||||
6 | (e) A hemp processor may not be located in an area zoned | ||||||
7 | for residential use. | ||||||
8 | (f) A hemp processor may not either directly or indirectly | ||||||
9 | discriminate in price between different cannabis or hemp | ||||||
10 | business establishments that are purchasing a like grade, | ||||||
11 | brand, and quality of intermediate hemp products or hemp | ||||||
12 | concentrate. Nothing in this subsection prevents a hemp | ||||||
13 | processor from pricing intermediate hemp products or hemp | ||||||
14 | concentrate differently based on differences in the cost of | ||||||
15 | manufacturing or processing, the quantities sold, such as | ||||||
16 | volume discounts, or the way the products are delivered. | ||||||
17 | (g) All intermediate hemp products or hemp concentrate | ||||||
18 | processed by a hemp processor and intended for distribution to | ||||||
19 | a hemp or cannabis business establishment must be entered into | ||||||
20 | a data collection system and packaged and labeled under this | ||||||
21 | Act before transport. | ||||||
22 | (h) Hemp processors are subject to random inspections by | ||||||
23 | the Department, local safety or health inspectors, the | ||||||
24 | Illinois State Police, or as provided by rule. | ||||||
25 | (i) A hemp processor agent shall notify local law | ||||||
26 | enforcement, the Illinois State Police, and the Department |
| |||||||
| |||||||
1 | within 24 hours of the discovery of any loss or theft. | ||||||
2 | Notification shall be made by phone, in person, or written or | ||||||
3 | electronic communication. | ||||||
4 | (j) A hemp processor or hemp processor agent shall not | ||||||
5 | transport any intermediate hemp product or hemp concentrate to | ||||||
6 | any other cannabis or hemp business establishment without a | ||||||
7 | hemp distributor license unless: | ||||||
8 | (1) If the hemp processor is located in a county with a | ||||||
9 | population of 3,000,000 or more, the cannabis or hemp | ||||||
10 | business establishment receiving the intermediate hemp | ||||||
11 | products or hemp concentrate is within 2,000 feet of the | ||||||
12 | property line of the hemp processor; | ||||||
13 | (2) If the hemp processor is located in a county with a | ||||||
14 | population of more than 700,000 but fewer than 3,000,000, | ||||||
15 | the cannabis or hemp business establishment receiving the | ||||||
16 | intermediate hemp products or hemp concentrate is within 2 | ||||||
17 | miles of the hemp processor; or | ||||||
18 | (3) If the hemp processor is located in a county with a | ||||||
19 | population of fewer than 700,000, the cannabis or hemp | ||||||
20 | business establishment receiving the intermediate hemp | ||||||
21 | products or hemp concentrate is within 15 miles of the | ||||||
22 | hemp processor. | ||||||
23 | (k) A hemp processor may enter into a contract with a hemp | ||||||
24 | distributor or an adult use cannabis transporter organization | ||||||
25 | that meets the requirements of a Social Equity Applicant to | ||||||
26 | transport intermediate hemp product or hemp concentrate to a |
| |||||||
| |||||||
1 | cannabis or hemp business establishment allowed to process or | ||||||
2 | infuse intermediate hemp product or hemp concentrate under | ||||||
3 | this Act. | ||||||
4 | (l) A person or entity may not hold any legal, equitable, | ||||||
5 | ownership, or beneficial interest, directly or indirectly, of | ||||||
6 | more than 3 hemp processor licenses. Further, a person or | ||||||
7 | entity that is employed by, an agent of, or has a contract to | ||||||
8 | receive payment from or participate in the management of a | ||||||
9 | hemp processor, is a principal officer of a hemp processor, or | ||||||
10 | entity controlled by or affiliated with a principal officer of | ||||||
11 | a hemp processor may not hold any legal, equitable, ownership, | ||||||
12 | or beneficial interest, directly or indirectly, in a hemp | ||||||
13 | processor license that would result in the person or entity | ||||||
14 | owning or controlling in combination with any hemp processor, | ||||||
15 | principal officer of a hemp processor, or entity controlled or | ||||||
16 | affiliated with a principal officer of a hemp processor by | ||||||
17 | which he, she, or it is employed, is an agent of, or | ||||||
18 | participates in the management of more than 3 hemp processor | ||||||
19 | licenses. | ||||||
20 | (m) A hemp processor shall not be located within 1,500 | ||||||
21 | feet of another hemp processor. | ||||||
22 | (n) A hemp processor may process industrial hemp, as | ||||||
23 | defined by the Industrial Hemp Act, intermediate hemp product, | ||||||
24 | hemp concentrate, or full spectrum concentrate and broad | ||||||
25 | spectrum extract that is to be used in either hemp extract | ||||||
26 | derived products or hemp concentrate derived products. |
| |||||||
| |||||||
1 | (o) A hemp processor shall comply with any other | ||||||
2 | requirements or prohibitions set by administrative rule of the | ||||||
3 | Department. | ||||||
4 | Section 30-30. Hemp processor agent identification card. | ||||||
5 | (a) The Department shall: | ||||||
6 | (1) establish, by rule, the information required in an | ||||||
7 | initial application or renewal application for a hemp | ||||||
8 | processor agent identification card submitted under this | ||||||
9 | Act and the nonrefundable fee to accompany the initial | ||||||
10 | application or renewal application; | ||||||
11 | (2) verify the information contained in an initial | ||||||
12 | application or renewal application for a hemp processor | ||||||
13 | agent identification card submitted under this Act and | ||||||
14 | approve or deny an application within 30 days of receiving | ||||||
15 | a completed initial application or renewal application and | ||||||
16 | all supporting documentation required by rule; | ||||||
17 | (3) issue an hemp processor agent identification card | ||||||
18 | to a qualifying agent within 15 business days of approving | ||||||
19 | the initial application or renewal application; | ||||||
20 | (4) enter the license number of the hemp processor | ||||||
21 | where the agent works; and | ||||||
22 | (5) allow for an electronic initial application and | ||||||
23 | renewal application process, and provide a confirmation by | ||||||
24 | electronic or other methods that an application has been | ||||||
25 | submitted. The Department may, by rule, require |
| |||||||
| |||||||
1 | prospective agents to file their applications by | ||||||
2 | electronic means and provide notices to the agents by | ||||||
3 | electronic means. | ||||||
4 | (b) A hemp processor agent must keep the hemp processor | ||||||
5 | agent's hemp processor agent identification card visible at | ||||||
6 | all times when on the property of a cannabis or hemp business | ||||||
7 | establishment, including the hemp processor for which the | ||||||
8 | person is an agent for. | ||||||
9 | (c) The hemp processor agent identification cards shall | ||||||
10 | contain the following: | ||||||
11 | (1) The name of the cardholder. | ||||||
12 | (2) The date of issuance and expiration date of the | ||||||
13 | identification card. | ||||||
14 | (3) A random 10-digit alphanumeric identification | ||||||
15 | number containing at least 4 numbers and at least 4 | ||||||
16 | letters that is unique to the holder. | ||||||
17 | (4) A photograph of the cardholder. | ||||||
18 | (5) The legal name of the hemp processor employing the | ||||||
19 | agent. | ||||||
20 | (d) A hemp processor agent identification card shall be | ||||||
21 | immediately returned to the hemp business establishment of the | ||||||
22 | agent upon termination of the agent's employment. | ||||||
23 | (e) A hemp processor agent identification card lost by a | ||||||
24 | hemp processor agent shall be reported to the Illinois State | ||||||
25 | Police and the Department immediately upon discovery of the | ||||||
26 | loss. |
| |||||||
| |||||||
1 | Section 30-35. Hemp processor background checks. | ||||||
2 | (a) Through the Illinois State Police, the Department | ||||||
3 | shall conduct a background check of the prospective principal | ||||||
4 | officers, board members, and agents of a hemp processor | ||||||
5 | applying for a license or hemp processor agent identification | ||||||
6 | card under this Article. The Illinois State Police shall | ||||||
7 | charge a fee set by rule for conducting the criminal history | ||||||
8 | record check, which shall be deposited into the State Police | ||||||
9 | Services Fund and shall not exceed the actual cost of the | ||||||
10 | record check. Each hemp concentrate infuser prospective | ||||||
11 | principal officer, board member, or agent shall submit a full | ||||||
12 | set of fingerprints to the Illinois State Police for the | ||||||
13 | purpose of obtaining a State and federal criminal records | ||||||
14 | check. These fingerprints shall be checked against the | ||||||
15 | fingerprint records during the application process and in a | ||||||
16 | frequency thereafter as prescribed by the Department, to the | ||||||
17 | extent allowed by law, filed in any relevant Illinois State | ||||||
18 | Police and Federal Bureau of Investigation criminal history | ||||||
19 | records databases. The Illinois State Police shall furnish, | ||||||
20 | following positive identification, all conviction information | ||||||
21 | to the Department. | ||||||
22 | (b) When applying for the initial license or | ||||||
23 | identification card, the background checks for all prospective | ||||||
24 | principal officers, board members, and agents shall be | ||||||
25 | completed before submitting the application to the licensing |
| |||||||
| |||||||
1 | or issuing agency. | ||||||
2 | Section 30-40. Renewal of hemp processor licenses and | ||||||
3 | agent identification cards. | ||||||
4 | (a) A license or hemp processor agent identification card | ||||||
5 | issued under this Article shall be renewed annually. A hemp | ||||||
6 | processor shall receive written or electronic notice 90 days | ||||||
7 | before the expiration of its current license that the license | ||||||
8 | will expire. The Department shall grant a renewal within 45 | ||||||
9 | days of submission of a renewal application if: | ||||||
10 | (1) The hemp processor submits a renewal application | ||||||
11 | and the required nonrefundable renewal fee of $40,000, or | ||||||
12 | another amount as the Department may set by rule after | ||||||
13 | January 1, 2025. | ||||||
14 | (2) The Department has not suspended the license of | ||||||
15 | the hemp processor or suspended or revoked the license of | ||||||
16 | the hemp processor for violating this Act or rules adopted | ||||||
17 | under this Act. | ||||||
18 | (3) The hemp processor has continued to operate in | ||||||
19 | accordance with all plans submitted as part of its | ||||||
20 | application and approved by the Department or any | ||||||
21 | amendments thereto that have been approved by the | ||||||
22 | Department. | ||||||
23 | (4) The hemp processor has submitted an agent, | ||||||
24 | employee, contracting, and subcontracting diversity report | ||||||
25 | as required by the Department. |
| |||||||
| |||||||
1 | (5) The hemp processor has submitted an environmental | ||||||
2 | impact report. | ||||||
3 | (b) If a hemp processor fails to renew its license before | ||||||
4 | expiration, the hemp processor shall cease operations until | ||||||
5 | its license is renewed. | ||||||
6 | (c) If a hemp processor agent fails to renew the agent's | ||||||
7 | hemp processor agent identification card before its | ||||||
8 | expiration, the agent shall cease to work as an agent of the | ||||||
9 | hemp processor until his or her identification card is | ||||||
10 | renewed. | ||||||
11 | (d) Any hemp processor that continues to operate or any | ||||||
12 | hemp processor agent who continues to work as an agent after | ||||||
13 | the applicable license or a hemp processor agent | ||||||
14 | identification card has expired without renewal is subject to | ||||||
15 | the penalties provided under this Act. | ||||||
16 | (e) All fees or fines collected from the renewal of a hemp | ||||||
17 | processor license shall be deposited into the Cannabis | ||||||
18 | Regulation Fund. | ||||||
19 | Section 30-45. Hemp processor taxes; returns. | ||||||
20 | (a) A tax is imposed upon the privilege of processing hemp | ||||||
21 | into intermediate hemp products at the rate of 7% of the gross | ||||||
22 | receipts from the sale of intermediate hemp products, hemp | ||||||
23 | concentrate, or hemp extract by a hemp processor to a | ||||||
24 | qualified cannabis or hemp business establishment. The sale of | ||||||
25 | any hemp cannabinoid product that contains any amount of hemp |
| |||||||
| |||||||
1 | cannabinoids or any derivative thereof is subject to the tax | ||||||
2 | under this Section on the full selling price of the product. | ||||||
3 | The proceeds from this tax shall be deposited into the | ||||||
4 | Cannabis Regulation Fund. This tax shall be paid by the hemp | ||||||
5 | processor who makes the first sale and is not the | ||||||
6 | responsibility of a craft grower who meets the requirements of | ||||||
7 | a Social Equity Applicant, an infuser that meets the | ||||||
8 | requirements of Social Equity Applicant, a transporter that | ||||||
9 | meets the requirements of a Social Equity Applicant, a hemp | ||||||
10 | concentrate infuser, a hemp extract infuser, or another hemp | ||||||
11 | processor. | ||||||
12 | (b) In the administration of and compliance with this | ||||||
13 | Section, the Department of Revenue and persons who are subject | ||||||
14 | to this Section: (i) have the same rights, remedies, | ||||||
15 | privileges, immunities, powers, and duties, (ii) are subject | ||||||
16 | to the same conditions, restrictions, limitations, penalties, | ||||||
17 | and definitions of terms, and (iii) shall employ the same | ||||||
18 | modes of procedure as are set forth in the Intermediate Hemp | ||||||
19 | Product Processing Tax Law and the Uniform Penalty and | ||||||
20 | Interest Act as if those provisions were set forth in this | ||||||
21 | Section. | ||||||
22 | (c) The tax imposed under this Act shall be in addition to | ||||||
23 | all other occupation or privilege taxes imposed by the State | ||||||
24 | of Illinois or by any municipal corporation or political | ||||||
25 | subdivision thereof. |
| |||||||
| |||||||
1 | Section 30-50. Disclosure of ownership and control. | ||||||
2 | (a) Each hemp processor applicant and licensee shall file | ||||||
3 | and maintain a table of organization, ownership, and control | ||||||
4 | with the Department. The table of organization, ownership, and | ||||||
5 | control shall contain the information required by this Section | ||||||
6 | in sufficient detail to identify all owners, directors, and | ||||||
7 | principal officers, and the title of each principal officer or | ||||||
8 | business entity that, through direct or indirect means, | ||||||
9 | manages, owns, or controls the applicant or licensee. | ||||||
10 | (b) The table of organization, ownership, and control | ||||||
11 | shall identify the following information: | ||||||
12 | (1) The management structure, ownership, and control | ||||||
13 | of the applicant or license holder including the name of | ||||||
14 | each principal officer or business entity, the office or | ||||||
15 | position held, and the percentage ownership interest, if | ||||||
16 | any. If the business entity has a parent company, the name | ||||||
17 | of each owner, board member, and officer of the parent | ||||||
18 | company and the percentage ownership interest in the | ||||||
19 | parent company and the hemp processor. | ||||||
20 | (2) If the applicant or licensee is a business entity | ||||||
21 | with publicly traded stock, the identification of | ||||||
22 | ownership shall be provided as required in subsection (c). | ||||||
23 | (c) If a business entity identified in subsection (b) is a | ||||||
24 | publicly traded company, the following information shall be | ||||||
25 | provided in the table of organization, ownership, and control: | ||||||
26 | (1) The name and percentage of ownership interest of |
| |||||||
| |||||||
1 | each individual or business entity with ownership of more | ||||||
2 | than 5% of the voting shares of the entity, to the extent | ||||||
3 | such information is known or contained in 13D or 13G | ||||||
4 | Securities and Exchange Commission filings. | ||||||
5 | (2) To the extent known, the names and percentage of | ||||||
6 | interest of ownership of persons who are relatives of one | ||||||
7 | another and who together exercise control over or own more | ||||||
8 | than 10% of the voting shares of the entity. | ||||||
9 | (d) A hemp processor with a parent company or companies, | ||||||
10 | or partially owned or controlled by another entity, must | ||||||
11 | disclose to the Department the relationship and all owners, | ||||||
12 | board members, officers, or individuals with control or | ||||||
13 | management of those entities. A hemp processor shall not | ||||||
14 | shield its ownership or control from the Department. | ||||||
15 | (e) A principal officer must submit a complete online | ||||||
16 | application with the Department within 14 days of the hemp | ||||||
17 | processor being licensed by the Department or within 14 days | ||||||
18 | of Department notice of approval as a new principal officer. | ||||||
19 | (f) A principal officer may not allow the principal | ||||||
20 | officer's registration to expire. | ||||||
21 | (g) A hemp processor separating with a principal officer | ||||||
22 | must do so under this Act. The principal officer must | ||||||
23 | communicate the separation to the Department within 5 business | ||||||
24 | days. | ||||||
25 | (h) A principal officer not in compliance with the | ||||||
26 | requirements of this Act shall be removed from the principal |
| |||||||
| |||||||
1 | officer's position with the hemp processor or shall otherwise | ||||||
2 | terminate the principal officer's affiliation. Failure to do | ||||||
3 | so may subject the hemp processor to discipline, suspension, | ||||||
4 | or revocation of its license by the Department. | ||||||
5 | (i) It is the responsibility of the hemp processor and its | ||||||
6 | principal officers to promptly notify the Department of any | ||||||
7 | change of the principal place of business address, hours of | ||||||
8 | operation, change in ownership or control, or a change of the | ||||||
9 | hemp processor's primary or secondary contact information. Any | ||||||
10 | changes must be made to the Department in writing. | ||||||
11 | Article 35. | ||||||
12 | Hemp Distributor | ||||||
13 | Section 35-5. Hemp distributor application. When applying | ||||||
14 | for a hemp distributor license, the applicant shall | ||||||
15 | electronically submit the following in such form as the | ||||||
16 | Department may direct: | ||||||
17 | (1) the nonrefundable application fee of $5,000 for | ||||||
18 | each license for which the applicant is applying, which | ||||||
19 | shall be deposited into the Cannabis Regulation Fund; | ||||||
20 | (2) the legal name of the hemp distributor license; | ||||||
21 | (3) the proposed physical address of the hemp | ||||||
22 | distributor, if one is proposed; | ||||||
23 | (4) the name, address, social security number, and | ||||||
24 | date of birth of each principal officer and board member |
| |||||||
| |||||||
1 | of the hemp distributor. Each principal officer and board | ||||||
2 | member shall be at least 21 years of age; | ||||||
3 | (5) the details of any administrative or judicial | ||||||
4 | proceeding in which any of the principal officers or board | ||||||
5 | members of the hemp distributor (i) pled guilty, were | ||||||
6 | convicted, fined, or had a registration or license | ||||||
7 | suspended or revoked, or (ii) managed or served on the | ||||||
8 | board of a business or nonprofit organization that pled | ||||||
9 | guilty, was convicted, fined, or had a registration or | ||||||
10 | license suspended or revoked; | ||||||
11 | (6) proposed operating bylaws that include procedures | ||||||
12 | for the oversight of the hemp distributor, including the | ||||||
13 | development and implementation of an accurate | ||||||
14 | recordkeeping plan, staffing plan, and security plan | ||||||
15 | approved by the Illinois State Police that are in | ||||||
16 | accordance with the rules issued by the Department under | ||||||
17 | this Act; | ||||||
18 | (7) verification from the Illinois State Police that | ||||||
19 | all background checks of the prospective principal | ||||||
20 | officers, board members, and agents of the hemp | ||||||
21 | distributor have been conducted; | ||||||
22 | (8) a copy of the current local zoning ordinance or | ||||||
23 | permit and verification that the proposed hemp distributor | ||||||
24 | is in compliance with the local zoning rules and distance | ||||||
25 | limitations established by the local jurisdiction, if the | ||||||
26 | hemp distributor has a business address; |
| |||||||
| |||||||
1 | (9) proposed employment practices, in which the | ||||||
2 | applicant must demonstrate a plan of action to inform, | ||||||
3 | hire, and educate minorities, women, veterans, and persons | ||||||
4 | with disabilities, engage in fair labor practices, and | ||||||
5 | provide worker protections; | ||||||
6 | (10) whether an applicant can demonstrate experience | ||||||
7 | in or business practices that promote economic empowerment | ||||||
8 | in disproportionately impacted areas, as that term is | ||||||
9 | defined in Section 1-10 of the Cannabis Regulation and Tax | ||||||
10 | Act; | ||||||
11 | (11) the number and type of equipment the hemp | ||||||
12 | distributor will use to transport hemp extract derived | ||||||
13 | products and hemp concentrate derived products; | ||||||
14 | (12) loading, transporting, and unloading plans; | ||||||
15 | (13) a description of the applicant's experience in | ||||||
16 | the distribution or security business; | ||||||
17 | (14) the identity of every person having a financial | ||||||
18 | or voting interest of 5% or more in the hemp distributor | ||||||
19 | organization with respect to which the license is sought, | ||||||
20 | whether a trust, corporation, partnership, limited | ||||||
21 | liability company, or sole proprietorship, including the | ||||||
22 | name and address of each person; and | ||||||
23 | (15) any other information required by rule. | ||||||
24 | Section 35-10. Issuing licenses. | ||||||
25 | (a) The Department shall, by rule, develop a system to |
| |||||||
| |||||||
1 | score distributor applications to administratively rank | ||||||
2 | applications based on the clarity, organization, and quality | ||||||
3 | of the applicant's responses to required information. | ||||||
4 | Applicants shall be awarded points based on the following | ||||||
5 | categories: | ||||||
6 | (1) suitability of employee training plan; | ||||||
7 | (2) security and recordkeeping plan; | ||||||
8 | (3) business plan; | ||||||
9 | (4) labor and employment practices, which shall | ||||||
10 | constitute no less than 2% of total available points; | ||||||
11 | (5) environmental plan that demonstrates an | ||||||
12 | environmental plan of action to minimize the carbon | ||||||
13 | footprint, environmental impact, and resource needs for | ||||||
14 | the distributor, which may include, without limitation, | ||||||
15 | recycling hemp cannabinoid product packaging; | ||||||
16 | (6) the applicant is 51% or more owned and controlled | ||||||
17 | by an individual or individuals who have been an Illinois | ||||||
18 | resident for the past 5 years as proved by tax records or 2 | ||||||
19 | of the following: | ||||||
20 | (A) A signed lease agreement that includes the | ||||||
21 | applicant's name. | ||||||
22 | (B) A property deed that includes the applicant's | ||||||
23 | name. | ||||||
24 | (C) School records. | ||||||
25 | (D) A voter registration card. | ||||||
26 | (E) An Illinois driver's license, an Illinois |
| |||||||
| |||||||
1 | Identification Card, or an Illinois Person with a | ||||||
2 | Disability Identification Card. | ||||||
3 | (F) A paycheck stub. | ||||||
4 | (G) A utility bill. | ||||||
5 | (H) Any other proof of residency or other | ||||||
6 | information necessary to establish residence as | ||||||
7 | provided by rule; | ||||||
8 | (7) the applicant is 51% or more controlled and owned | ||||||
9 | by an individual or individuals who meet the | ||||||
10 | qualifications of a veteran, as that term is defined in | ||||||
11 | Section 45-57 of the Illinois Procurement Code; | ||||||
12 | (8) a diversity plan that includes a narrative of not | ||||||
13 | more than 2,500 words that establishes a goal of diversity | ||||||
14 | in ownership, management, employment, and contracting to | ||||||
15 | ensure that diverse participants and groups are afforded | ||||||
16 | equality of opportunity; and | ||||||
17 | (9) any other criteria the Department may set by rule | ||||||
18 | for points. | ||||||
19 | (b) Applicants for hemp distributor licenses that score at | ||||||
20 | least 75% of the available points according to the system | ||||||
21 | developed by rule and meet all other requirements for a hemp | ||||||
22 | distributor license shall be issued a license by the | ||||||
23 | Department within 60 days of receiving the application. | ||||||
24 | (c) If the applicant is awarded a hemp distributor | ||||||
25 | license, the information and plans that an applicant provided | ||||||
26 | in its application shall be a mandatory condition of the |
| |||||||
| |||||||
1 | permit. Any variation from or failure to perform such plans | ||||||
2 | may result in discipline, including the revocation or | ||||||
3 | nonrenewal of a license. | ||||||
4 | (d) If the applicant is awarded a hemp distributor | ||||||
5 | license, the applicant shall pay a prorated fee of $10,000 | ||||||
6 | prior to receiving the license to be deposited into the | ||||||
7 | Cannabis Regulation Fund. | ||||||
8 | Section 35-15. Denial of application. An application for a | ||||||
9 | hemp distributor license shall be denied if any of the | ||||||
10 | following conditions are met: | ||||||
11 | (1) The applicant failed to submit the materials | ||||||
12 | required by this Article. | ||||||
13 | (2) The applicant would not be in compliance with | ||||||
14 | local zoning rules or permit requirements. | ||||||
15 | (3) One or more of the prospective principal officers | ||||||
16 | or board members causes a violation of this Article. | ||||||
17 | (4) One or more of the principal officers or board | ||||||
18 | members is under 21 years of age. | ||||||
19 | (5) The person has submitted an application for a | ||||||
20 | license under this Act that contains false information. | ||||||
21 | (6) The licensee, principal officer, board member, or | ||||||
22 | person having a financial or voting interest of 5% or | ||||||
23 | greater in the licensee is delinquent in filing any | ||||||
24 | required tax returns or paying any amounts owed to the | ||||||
25 | State of Illinois. |
| |||||||
| |||||||
1 | Section 35-20. Hemp distributor requirements; | ||||||
2 | prohibitions. | ||||||
3 | (a) The operating documents of a hemp distributor shall | ||||||
4 | include procedures for the oversight of the hemp distributor, | ||||||
5 | an inventory monitoring system, including a physical inventory | ||||||
6 | recorded weekly, accurate recordkeeping, and a staffing plan. | ||||||
7 | (b) A hemp distributor may not distribute intermediate | ||||||
8 | hemp products, hemp concentrate, or hemp concentrate derived | ||||||
9 | products to any person other than an Illinois-registered adult | ||||||
10 | use craft grower that meets the requirements of a Social | ||||||
11 | Equity Applicant, an adult use cannabis infuser that meets the | ||||||
12 | requirements of a Social Equity Applicant, an adult use | ||||||
13 | cannabis transporter that meets the requirements of a Social | ||||||
14 | Equity Applicant, a hemp concentrate infuser, hemp processor, | ||||||
15 | a testing facility, or as otherwise authorized by rule. | ||||||
16 | (c) A hemp cannabinoid product distributed by a hemp | ||||||
17 | distributor must be entered into a data collection system and | ||||||
18 | placed into a hemp container for distribution. | ||||||
19 | (d) Hemp distributors are subject to random inspections by | ||||||
20 | the Department, the Department of Public Health, the Illinois | ||||||
21 | State Police, or as provided by rule. | ||||||
22 | (e) A hemp distributor agent shall notify local law | ||||||
23 | enforcement, the Illinois State Police, and the Department | ||||||
24 | within 24 hours of the discovery of any loss or theft. | ||||||
25 | Notification shall be made by phone, in person, or by written |
| |||||||
| |||||||
1 | or electronic communication. | ||||||
2 | (f) No person under the age of 21 years shall be in a | ||||||
3 | commercial vehicle or trailer distribution of hemp cannabinoid | ||||||
4 | goods. | ||||||
5 | (g) No person or individual who is not a hemp distributor | ||||||
6 | agent shall be in a vehicle while distributing hemp | ||||||
7 | cannabinoid goods. | ||||||
8 | (h) Hemp distributors may not use commercial motor | ||||||
9 | vehicles with a weight rating of over 10,001 pounds. | ||||||
10 | (i) It is unlawful for any person to offer or deliver | ||||||
11 | money, or anything else of value, directly or indirectly, to | ||||||
12 | any of the following persons to obtain preferential placement | ||||||
13 | within the hemp concentrate retailer's or Qualifying | ||||||
14 | Applicant's or a Social Equity Justice Involved Applicant's, | ||||||
15 | as defined by the Cannabis Regulation and Tax Act, dispensary | ||||||
16 | shelves, including, without limitation, on shelves and in | ||||||
17 | display cases where purchasers can view products, or on the | ||||||
18 | website of the hemp concentrate retailer or on the website of | ||||||
19 | the Qualifying Applicant or on the website of the Social | ||||||
20 | Equity Justice Involved Applicant dispensary under the | ||||||
21 | Cannabis Regulation and Tax Act: | ||||||
22 | (1) a person having a hemp distributor license, or any | ||||||
23 | officer, associate, member, representative, or agent of | ||||||
24 | the licensee; | ||||||
25 | (2) a person having an Illinois-registered adult use | ||||||
26 | craft grower that meets the requirements of a Social |
| |||||||
| |||||||
1 | Equity Applicant, an adult use cannabis infuser that meets | ||||||
2 | the requirements of a Social Equity Applicant hemp | ||||||
3 | concentrate infuser, hemp extract infuser, or hemp | ||||||
4 | processor license; | ||||||
5 | (3) a person connected with or in any way | ||||||
6 | representing, or a member of the family of, a person | ||||||
7 | holding an Illinois-registered adult use craft grower that | ||||||
8 | meets the requirements of a Social Equity Applicant, an | ||||||
9 | adult use cannabis infuser that meets the requirements of | ||||||
10 | a Social Equity Applicant, hemp concentrate infuser, hemp | ||||||
11 | extract infuser, or hemp processor license; or | ||||||
12 | (4) a stockholder, officer, manager, agent, or | ||||||
13 | representative of a corporation engaged in an | ||||||
14 | Illinois-registered adult use craft grower that meets the | ||||||
15 | requirements of a Social Equity Applicant, an adult use | ||||||
16 | cannabis infuser that meets the requirements of a Social | ||||||
17 | Equity Applicant, hemp concentrate infuser, hemp extract | ||||||
18 | infuser, or hemp processor license. | ||||||
19 | (j) A hemp distributor agent must keep the agent's | ||||||
20 | identification card visible at all times when on the property | ||||||
21 | of a cannabis or hemp business establishment and during the | ||||||
22 | distribution of hemp cannabinoid products when acting under | ||||||
23 | the agent's duties as a hemp distributor agent. During these | ||||||
24 | times, the hemp distributor agent must also provide the | ||||||
25 | identification card upon request of any law enforcement | ||||||
26 | officer engaged in the agent's official duties. |
| |||||||
| |||||||
1 | (k) A copy of the hemp distributor's registration and a | ||||||
2 | manifest for the delivery shall be present in any vehicle | ||||||
3 | distributing hemp cannabinoid products. | ||||||
4 | (l) Any hemp cannabinoid product shall be transported so | ||||||
5 | it is not visible or recognizable from outside the vehicle. | ||||||
6 | (m) A vehicle distributing hemp cannabinoid products must | ||||||
7 | not bear any markings to indicate the vehicle contains hemp | ||||||
8 | cannabinoid products or bear the name or logo of the hemp | ||||||
9 | business establishment. | ||||||
10 | (n) Hemp cannabinoid products must be transported in an | ||||||
11 | enclosed, locked storage compartment that is secured or | ||||||
12 | affixed to the vehicle. | ||||||
13 | (o) The Department may, by rule, impose any other | ||||||
14 | requirements or prohibitions on the transportation of hemp | ||||||
15 | cannabinoid products. | ||||||
16 | Section 35-25. Hemp distributor agent identification card. | ||||||
17 | (a) The Department shall: | ||||||
18 | (1) establish, by rule, the information required in an | ||||||
19 | initial application or renewal application for a hemp | ||||||
20 | distributor agent identification card submitted under this | ||||||
21 | Act and the nonrefundable fee to accompany the initial | ||||||
22 | application or renewal application; | ||||||
23 | (2) verify the information contained in an initial | ||||||
24 | application or renewal application for a hemp distributor | ||||||
25 | agent identification card submitted under this Act and |
| |||||||
| |||||||
1 | approve or deny an application within 30 days of receiving | ||||||
2 | a completed initial application or renewal application and | ||||||
3 | all supporting documentation required by rule; | ||||||
4 | (3) issue a hemp distributor agent identification card | ||||||
5 | to a qualifying agent within 15 business days of approving | ||||||
6 | the initial application or renewal application; | ||||||
7 | (4) enter the license number of the transporting | ||||||
8 | organization where the agent works; and | ||||||
9 | (5) allow for an electronic initial application and | ||||||
10 | renewal application process and provide a confirmation by | ||||||
11 | electronic or other methods that an application has been | ||||||
12 | submitted. The Department may, by rule, require | ||||||
13 | prospective agents to file their applications by | ||||||
14 | electronic means and provide notices to the agents by | ||||||
15 | electronic means. | ||||||
16 | (b) An agent must keep the agent's hemp distributor agent | ||||||
17 | identification card visible at all times when on the property | ||||||
18 | of a cannabis or hemp business establishment, including the | ||||||
19 | hemp business establishment for which the person is an agent. | ||||||
20 | (c) Hemp distributor agent identification cards shall | ||||||
21 | contain the following: | ||||||
22 | (1) The name of the cardholder. | ||||||
23 | (2) The date of issuance and expiration date of the | ||||||
24 | identification card. | ||||||
25 | (3) A random 10-digit alphanumeric identification | ||||||
26 | number containing at least 4 numbers and at least 4 |
| |||||||
| |||||||
1 | letters that is unique to the holder. | ||||||
2 | (4) A photograph of the cardholder. | ||||||
3 | (5) The legal name of the hemp distributor employing | ||||||
4 | the agent. | ||||||
5 | (d) A hemp distributor agent identification card shall be | ||||||
6 | immediately returned to the hemp distributor of the agent upon | ||||||
7 | termination of the agent's employment. | ||||||
8 | (e) A hemp distributor agent identification card lost by a | ||||||
9 | hemp distributor agent shall be reported to the Illinois State | ||||||
10 | Police and the Department immediately upon discovery of the | ||||||
11 | loss. | ||||||
12 | (f) An application for a hemp distributor agent | ||||||
13 | identification card shall be denied if the applicant is | ||||||
14 | delinquent in filing any required tax returns or paying any | ||||||
15 | amounts owed to the State of Illinois. | ||||||
16 | (g) An agent applicant may begin employment at a hemp | ||||||
17 | distributor while the agent applicant's hemp distributor agent | ||||||
18 | identification card application is pending. Upon approval, the | ||||||
19 | Department shall issue the agent's hemp distributor agent | ||||||
20 | identification card to the agent. If denied, the hemp | ||||||
21 | distributor and the agent applicant shall be notified and the | ||||||
22 | agent applicant must cease all activity at the transporting | ||||||
23 | organization immediately. | ||||||
24 | Section 35-30. Hemp distributor organization background | ||||||
25 | checks. |
| |||||||
| |||||||
1 | (a) Through the Illinois State Police, the Department | ||||||
2 | shall conduct a background check of the prospective principal | ||||||
3 | officers, board members, and agents of a hemp distributor | ||||||
4 | applying for a license or a hemp distributor agent | ||||||
5 | identification card under this Article. The Illinois State | ||||||
6 | Police shall charge a fee set by rule for conducting the | ||||||
7 | criminal history record check, which shall be deposited into | ||||||
8 | the State Police Services Fund and shall not exceed the actual | ||||||
9 | cost of the record check. Each hemp distributor's prospective | ||||||
10 | principal officer, board member, or agent shall submit a full | ||||||
11 | set of fingerprints to the Illinois State Police for the | ||||||
12 | purpose of obtaining a State and federal criminal records | ||||||
13 | check. These fingerprints shall be checked against the | ||||||
14 | fingerprint records during the application process and in a | ||||||
15 | frequency thereafter as prescribed by the Department, to the | ||||||
16 | extent allowed by law, filed in any relevant Illinois State | ||||||
17 | Police and Federal Bureau of Investigation criminal history | ||||||
18 | records databases. The Illinois State Police shall furnish, | ||||||
19 | following positive identification, all conviction information | ||||||
20 | to the Department. | ||||||
21 | (b) When applying for the initial license or | ||||||
22 | identification card, the background checks for all prospective | ||||||
23 | principal officers, board members, and agents shall be | ||||||
24 | completed before submitting the application to the Department. | ||||||
25 | Section 35-35. Renewal of hemp distributor licenses and |
| |||||||
| |||||||
1 | agent identification cards. | ||||||
2 | (a) Any license or hemp distributor agent identification | ||||||
3 | card issued under this Article shall be renewed annually. A | ||||||
4 | hemp distributor shall receive written or electronic notice 90 | ||||||
5 | days before the expiration of its current license that the | ||||||
6 | license will expire. The Department shall grant a renewal | ||||||
7 | within 45 days of submission of a renewal application if: | ||||||
8 | (1) the hemp distributor submits a renewal application | ||||||
9 | and the required nonrefundable renewal fee of $10,000, or | ||||||
10 | after January 1, 2025, another amount set by rule by the | ||||||
11 | Department, to be deposited into the Cannabis Regulation | ||||||
12 | Fund; | ||||||
13 | (2) the Department has not suspended or revoked the | ||||||
14 | license of the hemp distributor for violating this Act or | ||||||
15 | rules adopted under this Act; | ||||||
16 | (3) the hemp distributor has continued to operate in | ||||||
17 | accordance with all plans submitted as part of its | ||||||
18 | application and approved by the Department or any | ||||||
19 | amendments thereto that have been approved by the | ||||||
20 | Department; and | ||||||
21 | (4) the hemp distributor has submitted an agent, | ||||||
22 | employee, contracting, and subcontracting diversity report | ||||||
23 | as required by the Department. | ||||||
24 | (b) If a hemp distributor fails to renew its license | ||||||
25 | before expiration, the hemp distributor shall cease operations | ||||||
26 | until its license is renewed. |
| |||||||
| |||||||
1 | (c) If a hemp distributor agent fails to renew the agent's | ||||||
2 | hemp distributor agent identification card before the card's | ||||||
3 | expiration, the agent shall cease to work as an agent of the | ||||||
4 | hemp distributor until the agent's hemp distributor agent | ||||||
5 | identification card is renewed. | ||||||
6 | (d) Any hemp distributor that continues to operate, or any | ||||||
7 | hemp distributor agent who continues to work as an agent, | ||||||
8 | after the applicable license or identification card has | ||||||
9 | expired without renewal is subject to the penalties provided | ||||||
10 | under this Act. | ||||||
11 | (e) The Department shall not renew a license or a hemp | ||||||
12 | distributor agent identification card if the applicant is | ||||||
13 | delinquent in filing any required tax returns or paying any | ||||||
14 | amounts owed to the State of Illinois. | ||||||
15 | Section 35-40. Disclosure of ownership and control. | ||||||
16 | (a) Each hemp distributor applicant and licensee shall | ||||||
17 | file and maintain a table of organization, ownership, and | ||||||
18 | control with the Department. The table of organization, | ||||||
19 | ownership, and control shall contain the information required | ||||||
20 | by this Section in sufficient detail to identify all owners, | ||||||
21 | directors, and principal officers, and the title of each | ||||||
22 | principal officer or business entity that, through direct or | ||||||
23 | indirect means, manages, owns, or controls the applicant or | ||||||
24 | licensee. | ||||||
25 | (b) The table of organization, ownership, and control |
| |||||||
| |||||||
1 | shall identify the following information: | ||||||
2 | (1) The management structure, ownership, and control | ||||||
3 | of the applicant or license holder including the name of | ||||||
4 | each principal officer or business entity, the office or | ||||||
5 | position held, and the percentage ownership interest, if | ||||||
6 | any. If the business entity has a parent company, the name | ||||||
7 | of each owner, board member, and officer of the parent | ||||||
8 | company and the agent's percentage ownership interest in | ||||||
9 | the parent company and the hemp distributor. | ||||||
10 | (2) If the applicant or licensee is a business entity | ||||||
11 | with publicly traded stock, the identification of | ||||||
12 | ownership shall be provided as required in subsection (c). | ||||||
13 | (c) If a business entity identified in subsection (b) is a | ||||||
14 | publicly traded company, the following information shall be | ||||||
15 | provided in the table of organization, ownership, and control: | ||||||
16 | (1) The name and percentage of ownership interest of | ||||||
17 | each individual or business entity with ownership of more | ||||||
18 | than 5% of the voting shares of the entity, to the extent | ||||||
19 | such information is known or contained in 13D or 13G | ||||||
20 | Securities and Exchange Commission filings. | ||||||
21 | (2) To the extent known, the names and percentage of | ||||||
22 | interest of ownership of persons who are relatives of one | ||||||
23 | another and who together exercise control over or own more | ||||||
24 | than 10% of the voting shares of the entity. | ||||||
25 | (d) A hemp distributor with a parent company or companies, | ||||||
26 | or partially owned or controlled by another entity, must |
| |||||||
| |||||||
1 | disclose to the Department the relationship and all owners, | ||||||
2 | board members, officers, or individuals with control or | ||||||
3 | management of those entities. A hemp distributor shall not | ||||||
4 | shield its ownership or control from the Department. | ||||||
5 | (e) All principal officers must submit a completed online | ||||||
6 | application with the Department within 14 days of the hemp | ||||||
7 | distributor being licensed by the Department or within 14 days | ||||||
8 | of Department notice of approval as a new principal officer. | ||||||
9 | (f) A principal officer may not allow the principal | ||||||
10 | officer's registration to expire. | ||||||
11 | (g) A hemp distributor separating with a principal officer | ||||||
12 | must do so under this Act. The principal officer must | ||||||
13 | communicate the separation to the Department within 5 business | ||||||
14 | days. | ||||||
15 | (h) A principal officer not in compliance with the | ||||||
16 | requirements of this Act shall be removed from the principal | ||||||
17 | officer's position with the hemp distributor or shall | ||||||
18 | otherwise terminate the principal officer's affiliation. | ||||||
19 | Failure to do so may subject the transporting organization to | ||||||
20 | discipline, suspension, or revocation of its license by the | ||||||
21 | Department. | ||||||
22 | (i) It is the responsibility of the hemp distributor and | ||||||
23 | its principal officers to promptly notify the Department of | ||||||
24 | any change of the principal place of business address, hours | ||||||
25 | of operation, change in ownership or control, or a change of | ||||||
26 | the transporting organization's primary or secondary contact |
| |||||||
| |||||||
1 | information. Any changes must be made to the Department in | ||||||
2 | writing. | ||||||
3 | Article 40. | ||||||
4 | Hemp Derived Products | ||||||
5 | Section 40-5. Hemp extract derived products. | ||||||
6 | (a) Any hemp cannabinoid products manufactured, processed, | ||||||
7 | distributed, sold, or offered for sale in this State shall: | ||||||
8 | (1) be manufactured in accordance with this Act; | ||||||
9 | (2) be subject to the following minimum requirements: | ||||||
10 | (A) contain naturally occurring hemp | ||||||
11 | phytocannabinoids; | ||||||
12 | (B) be intended for consumption by any means, | ||||||
13 | including, but not limited to, oral ingestion, | ||||||
14 | inhalation, smoking, or topical absorption; | ||||||
15 | (C) contain a total tetrahydrocannabinol | ||||||
16 | concentration of no greater than: | ||||||
17 | (i) 0.3% for any intermediate or finished | ||||||
18 | plant product or material or any hemp cannabinoid | ||||||
19 | product intended for consumption by inhalation or | ||||||
20 | smoking; or | ||||||
21 | (ii) 0.5 milligrams per serving or individual | ||||||
22 | product unit, and 2 milligrams per package for | ||||||
23 | products sold in multiple servings or units, for | ||||||
24 | any beverage, food, oil, ointment, tincture, |
| |||||||
| |||||||
1 | topical formation or any other product that is | ||||||
2 | intended for human consumption by means other than | ||||||
3 | inhalation or smoking; | ||||||
4 | (D) contain an amount of total hemp cannabinoid | ||||||
5 | concentration that is at least 25 times greater than | ||||||
6 | the amount of total tetrahydrocannabinol concentration | ||||||
7 | per serving and per package; | ||||||
8 | (3) not contain liquor, wine, beer, or cider or meet | ||||||
9 | the definition of alcoholic liquor under the Liquor | ||||||
10 | Control Act of 1934; | ||||||
11 | (4) not contain tobacco or nicotine in the product; | ||||||
12 | (5) accurately reflect testing results and not contain | ||||||
13 | less than 90% or more than 110% of the concentration of | ||||||
14 | total cannabinoid content as listed on the product label; | ||||||
15 | (6) be prepackaged and not added to food or any other | ||||||
16 | consumable products at the point of sale; | ||||||
17 | (7) comply with product testing standards set forth in | ||||||
18 | this Act; and | ||||||
19 | (8) not contain hemp concentrate, artificially derived | ||||||
20 | cannabinoids, or cannabinoids created through | ||||||
21 | isomerization, including tetrahydrocannabinol created | ||||||
22 | through isomerization. | ||||||
23 | (b) Any hemp extract derived product intended for | ||||||
24 | inhalation or vaporization shall meet the following additional | ||||||
25 | requirements: | ||||||
26 | (1) The product shall be a closed system with a |
| |||||||
| |||||||
1 | pre-filled disposable cartridge that attaches to a | ||||||
2 | rechargeable battery or a single-use product that cannot | ||||||
3 | be recharged. | ||||||
4 | (2) Electronic vaporization devices shall have | ||||||
5 | internal or external temperature controls to prevent | ||||||
6 | combustion and have a heating element made of inert | ||||||
7 | material, such as glass, ceramic, or stainless steel, and | ||||||
8 | not plastic or rubber. | ||||||
9 | (3) Except for hemp-derived terpenes, excipients and | ||||||
10 | ingredients must be pharmaceutical grade, unless otherwise | ||||||
11 | approved by the Department, and shall not include: | ||||||
12 | (A) synthetic terpenes; | ||||||
13 | (B) polyethylene glycol (PEG); | ||||||
14 | (C) vitamin E acetate; | ||||||
15 | (D) medium chain triglycerides (MCT oil); | ||||||
16 | (E) medicinal compounds; | ||||||
17 | (F) illegal or controlled substances; | ||||||
18 | (G) artificial food coloring; | ||||||
19 | (H) benzoic acid; | ||||||
20 | (I) diketones; or | ||||||
21 | (J) any other compound or ingredient as determined | ||||||
22 | by the Department in rules. | ||||||
23 | (4) The product may not contain any flavors or | ||||||
24 | flavoring agents, except for hemp-derived terpenes. | ||||||
25 | (5) The packaging shall include a Department-approved | ||||||
26 | symbol, as set out by rule, in a manner that is clear and |
| |||||||
| |||||||
1 | conspicuous. | ||||||
2 | Section 40-10. Hemp concentrate derived products. | ||||||
3 | (a) Hemp concentrate derived products manufactured, | ||||||
4 | processed, distributed, sold, or offered for sale in this | ||||||
5 | State shall: | ||||||
6 | (1) be manufactured in accordance with this Act; | ||||||
7 | (2) be subject to the following minimum requirements: | ||||||
8 | (A) contain only cannabinoids derived from hemp; | ||||||
9 | (B) be intended for consumption by any means, | ||||||
10 | including, but not limited to, oral ingestion, | ||||||
11 | inhalation, smoking, or topical absorption; | ||||||
12 | (C) contain a total tetrahydrocannabinol | ||||||
13 | concentration of no greater than: | ||||||
14 | (i) 0.3% for any intermediate or finished | ||||||
15 | plant product or material or any hemp cannabinoid | ||||||
16 | product intended for consumption by inhalation or | ||||||
17 | smoking; or | ||||||
18 | (ii) 5 milligrams per serving or individual | ||||||
19 | product unit, and 50 milligrams per package for | ||||||
20 | products sold in multiple servings or units, for | ||||||
21 | any beverage, food, oil, ointment, tincture, | ||||||
22 | topical formation or any other product that is | ||||||
23 | intended for human consumption by means other than | ||||||
24 | inhalation or smoking; | ||||||
25 | (3) not contain liquor, wine, beer, or cider or meet |
| |||||||
| |||||||
1 | the definition of alcoholic liquor under the Liquor | ||||||
2 | Control Act of 1934; | ||||||
3 | (4) not contain tobacco or nicotine in the product; | ||||||
4 | (5) accurately reflect testing results and not contain | ||||||
5 | less than 90% or more than 110% of the concentration of | ||||||
6 | total cannabinoid content as listed on the product label; | ||||||
7 | (6) be prepackaged and not added to food or any other | ||||||
8 | consumable products at the point of sale; and | ||||||
9 | (7) comply with product testing standards set forth in | ||||||
10 | this Act. | ||||||
11 | (b) If the product is a hemp concentrate derived product | ||||||
12 | intended for inhalation or vaporization, then the product | ||||||
13 | shall meet the following additional requirements: | ||||||
14 | (1) The product shall be a closed system with a | ||||||
15 | pre-filled disposable cartridge that attaches to a | ||||||
16 | rechargeable battery or a single-use product that cannot | ||||||
17 | be recharged. | ||||||
18 | (2) Electronic vaporization devices shall have | ||||||
19 | internal or external temperature controls to prevent | ||||||
20 | combustion and have a heating element made of inert | ||||||
21 | material, such as glass, ceramic, or stainless steel, and | ||||||
22 | not plastic or rubber. | ||||||
23 | (3) Except for hemp cannabinoids, hemp extract, and | ||||||
24 | hemp concentrate, excipients and ingredients must be | ||||||
25 | pharmaceutical grade, unless otherwise approved by the | ||||||
26 | Department, and may not include; |
| |||||||
| |||||||
1 | (A) polyethylene glycol (PEG); | ||||||
2 | (B) vitamin E acetate; | ||||||
3 | (C) medium chain triglycerides (MCT oil); | ||||||
4 | (D) medicinal compounds; | ||||||
5 | (E) illegal or controlled substances; | ||||||
6 | (F) artificial food coloring | ||||||
7 | (G) benzoic acid; | ||||||
8 | (H) diketones; or | ||||||
9 | (I) any other compound or ingredient as determined | ||||||
10 | by the Department in rules. | ||||||
11 | (4) The product may not contain any flavors or | ||||||
12 | flavoring agents, except for hemp-derived terpenes. | ||||||
13 | (5) The packaging shall include a Department-approved | ||||||
14 | symbol, as set out by rule, in a manner that is clear and | ||||||
15 | conspicuous. | ||||||
16 | Section 40-15. Packaging and labeling of hemp extract | ||||||
17 | derived products. | ||||||
18 | (a) A hemp extract derived product distributed or offered | ||||||
19 | for retail sale in this State shall include the following | ||||||
20 | information on the product label or packaging: | ||||||
21 | (1) information that complies with the requirements in | ||||||
22 | 21 CFR 101 and include a nutritional or supplement fact | ||||||
23 | panel that is based on the number of servings within the | ||||||
24 | container; | ||||||
25 | (2) a list of all ingredients in descending order of |
| |||||||
| |||||||
1 | predominance by weight in the product; | ||||||
2 | (3) The serving size and number of servings per | ||||||
3 | package or container, including the milligrams per serving | ||||||
4 | of: | ||||||
5 | (A) individual hemp cannabinoids; | ||||||
6 | (B) total hemp cannabinoids; | ||||||
7 | (C) individual THC cannabinoids; | ||||||
8 | (D) total THC; | ||||||
9 | (E) any other cannabinoids; | ||||||
10 | (F) an expiration date; | ||||||
11 | (G) a lot or batch number; | ||||||
12 | (H) the name of the hemp processor, craft grower, | ||||||
13 | or cultivation center that is allowed to process hemp | ||||||
14 | in accordance with this Act, whether in-state or | ||||||
15 | out-of-state; | ||||||
16 | (I) a scannable QR code linked to download the | ||||||
17 | certificate of analysis and testing results for the | ||||||
18 | product; | ||||||
19 | (J) the state or country of origin from which the | ||||||
20 | hemp used in the product was sourced; | ||||||
21 | (K) a means for reporting serious adverse events; | ||||||
22 | and | ||||||
23 | (L) any other marking, statement, or symbol | ||||||
24 | required by the Department. | ||||||
25 | (b) No hemp extract derived product offered for retail | ||||||
26 | sale shall be made attractive to individuals under 21 years of |
| |||||||
| |||||||
1 | age, imitate a candy label, or use cartoons or other images | ||||||
2 | popularly used to advertise to children or otherwise be | ||||||
3 | marketed to individuals under 21 years of age. | ||||||
4 | (c) No hemp extract derived product shall be marketed, | ||||||
5 | advertised, or offered for sale in a manner that would cause a | ||||||
6 | reasonable consumer: | ||||||
7 | (1) to be confused as to whether the hemp extract | ||||||
8 | derived product is trademarked, marked, or labeled in a | ||||||
9 | manner that violates any federal trademark law or | ||||||
10 | regulation; or | ||||||
11 | (2) to believe that a hemp extract derived product is | ||||||
12 | cannabis, medical cannabis, or that a licensee is | ||||||
13 | authorized to sell or dispense cannabis or medical | ||||||
14 | cannabis, as those terms are defined in the Cannabis | ||||||
15 | Regulation and Tax Act or the Compassionate Use of Medical | ||||||
16 | Cannabis Program Act. | ||||||
17 | (d) Hemp extract derived product offered for retail sale | ||||||
18 | shall include the following warnings on the product label or | ||||||
19 | packaging in a manner that is clear and conspicuous: | ||||||
20 | (1) this product must be kept out of the reach of | ||||||
21 | children and pets; | ||||||
22 | (2) this product is derived from hemp and may contain | ||||||
23 | THC which could result in a failed drug test; except that | ||||||
24 | this warning may be omitted for a hemp extract derived | ||||||
25 | product that has a certificate of testing analysis | ||||||
26 | demonstrating 0% THC concentration in the finished |
| |||||||
| |||||||
1 | product; | ||||||
2 | (3) this product has not been evaluated or approved by | ||||||
3 | the Food and Drug Administration for safety or efficacy; | ||||||
4 | (4) if you are pregnant or nursing you should consult | ||||||
5 | your health care provider before use; | ||||||
6 | (5) for a hemp extract derived product intended to be | ||||||
7 | inhaled or vaporized, a warning stating that smoking or | ||||||
8 | vaping is hazardous to your health; and | ||||||
9 | (6) any other warning required by the Department. | ||||||
10 | Section 40-20. Laboratory testing requirements for hemp | ||||||
11 | cannabinoid products. | ||||||
12 | (a) The Department shall approve testing laboratories to | ||||||
13 | be contracted by licensees under this Act for testing of hemp | ||||||
14 | cannabinoid products. | ||||||
15 | (b) All approved testing laboratories shall meet the | ||||||
16 | following minimum requirements: | ||||||
17 | (1) maintain ISO/IEC 17025 accreditation for the | ||||||
18 | premises and for the testing of one or more of the analytes | ||||||
19 | determined by the Department; | ||||||
20 | (2) maintain a valid scope of accreditation, issued by | ||||||
21 | an accreditation body, that attests to the laboratory's | ||||||
22 | competence to perform testing of hemp cannabinoid | ||||||
23 | products; | ||||||
24 | (3) maintain method validation reports for all testing | ||||||
25 | performed; |
| |||||||
| |||||||
1 | (4) maintain standard operating procedures for the | ||||||
2 | sampling of hemp cannabinoid products; and | ||||||
3 | (5) maintain testing methodologies to ascertain the | ||||||
4 | presence of intermediate hemp products, hemp extract, hemp | ||||||
5 | concentrate, or cannabinoids created through | ||||||
6 | isomerization, including tetrahydrocannabinol created | ||||||
7 | through isomerization. | ||||||
8 | (c) Hemp cannabinoid products shall not be sold within | ||||||
9 | this State if hemp cannabinoid, THC, or other contaminants are | ||||||
10 | detected at levels greater than provided for by this Act or | ||||||
11 | rules or guidance adopted by the Department. | ||||||
12 | (d) The Department may impose additional testing | ||||||
13 | requirements, including, but not limited to, testing for | ||||||
14 | additional analytes, setting stricter contaminant limits, and | ||||||
15 | mandating the use of specific sampling methodologies per lot | ||||||
16 | or batch manufactured. | ||||||
17 | (e) The Department shall make available a list of required | ||||||
18 | analytes, their acceptable limits, and approved testing | ||||||
19 | methods on the Department's website and in any other manner as | ||||||
20 | determined by the Department. | ||||||
21 | (f) The total tetrahydrocannabinol concentration for hemp | ||||||
22 | cannabinoid products shall not exceed the limits established | ||||||
23 | in this Act. | ||||||
24 | (g) If a hemp cannabinoid product fails testing, the hemp | ||||||
25 | processor may elect to reformulate the failing batch to reduce | ||||||
26 | the total tetrahydrocannabinol of the batch to comply with the |
| |||||||
| |||||||
1 | THC limits established by this Act. If the reformulated batch | ||||||
2 | still exceeds the THC limits, the hemp processor shall destroy | ||||||
3 | the batch. | ||||||
4 | (h) If a hemp cannabinoid product is found to contain | ||||||
5 | levels of any pathogen, toxicant, residual solvent, metal, or | ||||||
6 | pesticide not enumerated in this Section or by other State | ||||||
7 | law, then the product shall not be sold in this State. | ||||||
8 | Section 40-25. Advertising requirements. An advertisement | ||||||
9 | for a hemp cannabinoid product, hemp extract retailer, hemp | ||||||
10 | concentrate retailer, hemp extract infuser, hemp concentrate | ||||||
11 | infuser, or hemp processor may not: | ||||||
12 | (1) include any false or misleading statements, | ||||||
13 | images, or other content, including, but not limited to, | ||||||
14 | any health claims; | ||||||
15 | (2) contain claims that hemp consumption or a hemp | ||||||
16 | cannabinoid product can or is intended to diagnose, cure, | ||||||
17 | mitigate, treat, or prevent disease; | ||||||
18 | (3) lead a reasonable consumer to believe that a hemp | ||||||
19 | cannabinoid product is cannabis or medical cannabis, | ||||||
20 | including any product that exceeds the THC limits | ||||||
21 | established under this Act for lawful hemp cannabinoid | ||||||
22 | products, or that a licensee is authorized to sell or | ||||||
23 | dispense cannabis or medical cannabis; or | ||||||
24 | (4) have the purpose or effect of targeting or being | ||||||
25 | attractive to individuals under 21 years of age. The use |
| |||||||
| |||||||
1 | of images of children or minors consuming hemp cannabinoid | ||||||
2 | products and the use of words, designs, or brands that | ||||||
3 | resemble products commonly associated with children, | ||||||
4 | minors, or marketed to children or minors, is prohibited. | ||||||
5 | Section 40-30. Lawful transport of industrial hemp, hemp, | ||||||
6 | and hemp materials. | ||||||
7 | (a) Nothing in this Act shall prohibit or interfere with | ||||||
8 | the lawful transport of industrial hemp, hemp materials, or | ||||||
9 | hemp products as authorized by the U.S. Department of | ||||||
10 | Agriculture and the U.S. Food and Drug Administration and, in | ||||||
11 | compliance with other federal law, regulation, or rule, | ||||||
12 | through the State of Illinois for delivery to an out-of-state | ||||||
13 | destination. | ||||||
14 | (b) No person shall transport industrial hemp, hemp, or | ||||||
15 | hemp materials within the State unless the person is duly | ||||||
16 | authorized under federal law and regulation to transport hemp | ||||||
17 | and possesses a hemp manifest that includes the following | ||||||
18 | information: | ||||||
19 | (1) the name and address of the owner of the hemp; | ||||||
20 | (2) the point of origin; | ||||||
21 | (3) the point of delivery, including name and address; | ||||||
22 | (4) the kind and quantity of packages or, if in bulk, | ||||||
23 | the total quantity of hemp in the shipment; and | ||||||
24 | (5) the date of shipment. |
| |||||||
| |||||||
1 | Section 40-35. Penalties. | ||||||
2 | (a) Licensees under this Act shall comply with all | ||||||
3 | applicable laws, rules, and regulations as it relates to such | ||||||
4 | licensure. | ||||||
5 | (b) Failure to comply with a requirement of this Act or | ||||||
6 | rules adopted by the Department may be punishable by a civil | ||||||
7 | penalty, as follows: | ||||||
8 | (1) a fine of up to $1,000 for a first violation; | ||||||
9 | (2) a fine up to $5,000 for a second violation within 3 | ||||||
10 | years; or | ||||||
11 | (3) a fine of up to $10,000 for a third violation and | ||||||
12 | each subsequent violation thereafter within a 3-year | ||||||
13 | period. | ||||||
14 | (c) If a licensee willfully violates or refuses or | ||||||
15 | neglects to comply with one or more provisions of this Act, the | ||||||
16 | Department may limit, suspend, revoke, or annul a license | ||||||
17 | after providing notice and an opportunity for a hearing to the | ||||||
18 | licensee. However, a license may be temporarily limited, | ||||||
19 | suspended, revoked, or annulled without a hearing for a period | ||||||
20 | not to exceed 30 days, upon notice to the licensee, following a | ||||||
21 | finding by the Department that the public health, safety, or | ||||||
22 | welfare is in imminent danger. | ||||||
23 | (d) A licensee who negligently violates this Act 3 times | ||||||
24 | in a 5-year period shall be ineligible to process or sell hemp | ||||||
25 | cannabinoid for a period of 5 years beginning on the date of | ||||||
26 | the third violation. The Department may reduce the suspension |
| |||||||
| |||||||
1 | for good cause shown. | ||||||
2 | Section 40-40. Administration and enforcement; rules; | ||||||
3 | emergency rules; inspections. | ||||||
4 | (a) The Department shall administer and enforce this Act | ||||||
5 | and may adopt rules under the Illinois Administrative | ||||||
6 | Procedure Act for the purpose of administering and enforcing | ||||||
7 | this Act. | ||||||
8 | (b) The Department shall develop rules setting forth | ||||||
9 | labeling, packaging, and minimum testing requirements of hemp | ||||||
10 | cannabinoid products. | ||||||
11 | (c) In order to provide for the expeditious and timely | ||||||
12 | implementation of the provisions of this Act, the Department | ||||||
13 | may adopt emergency rules in accordance with Section 5-45 of | ||||||
14 | the Illinois Administrative Procedure Act to the extent | ||||||
15 | necessary to administer the Department's responsibilities | ||||||
16 | under this Act. The adoption of emergency rules authorized by | ||||||
17 | this subsection (c) is deemed to be necessary for the public | ||||||
18 | interest, safety, and welfare to regulate consumer safety over | ||||||
19 | hemp cannabinoid products. | ||||||
20 | (d) The Department of Public Health, local health | ||||||
21 | departments, the Illinois State Police, local sheriff's | ||||||
22 | offices, municipal police departments, and the Department of | ||||||
23 | Revenue may inspect a business that manufactures, processes, | ||||||
24 | or offers for sale hemp cannabinoid products in the State if a | ||||||
25 | formal complaint is registered with the appropriate agency in |
| |||||||
| |||||||
1 | order to ensure compliance with this Act. The Department may | ||||||
2 | inspect any business that manufactures, processes, or offers | ||||||
3 | for sale hemp a cannabinoid product in the State to ensure | ||||||
4 | compliance with this Act. The Department may enter into | ||||||
5 | interagency agreements to regulate and enforce this Act and | ||||||
6 | any rules or guidance adopted or promulgated. | ||||||
7 | Section 40-45. Publishing information. The Department | ||||||
8 | shall make available to the public complaints about hemp | ||||||
9 | cannabinoid products in violation of this Act, information | ||||||
10 | regarding pending administrative hearings or court cases under | ||||||
11 | this Act, or information regarding disciplinary actions taken | ||||||
12 | against a hemp extract retailer, hemp concentrate retailer, | ||||||
13 | hemp extract infuser, hemp concentrate infuser, or hemp | ||||||
14 | processor. | ||||||
15 | Section 40-50. Temporary restraining order or injunction. | ||||||
16 | The Director, through the Attorney General or any unit of | ||||||
17 | local government, may file a complaint and apply to the | ||||||
18 | circuit court for, and the court upon hearing and for cause | ||||||
19 | shown may grant, a temporary restraining order or a | ||||||
20 | preliminary or permanent injunction restraining any person | ||||||
21 | from violating this Act. | ||||||
22 | Section 40-55. Preparation of hemp concentrate derived | ||||||
23 | products. |
| |||||||
| |||||||
1 | (a) The Department may regulate the production of hemp | ||||||
2 | concentrate derived products by an Illinois-registered adult | ||||||
3 | use craft grower that meets the requirements of a Social | ||||||
4 | Equity Applicant, an infuser organization that meets the | ||||||
5 | requirements of a Social Equity Applicant, a dispensary that | ||||||
6 | meets the requirements of a Social Equity Applicant, a hemp | ||||||
7 | concentrate infuser, or a hemp concentrate retailer and | ||||||
8 | establish rules related to refrigeration, hot-holding, and | ||||||
9 | handling of hemp concentrate derived products. Hemp | ||||||
10 | concentrate derived products shall meet the packaging and | ||||||
11 | labeling requirements contained in Section 40-65. | ||||||
12 | (b) Hemp concentrate derived products for sale or | ||||||
13 | distribution at an Illinois-registered hemp retailer that | ||||||
14 | meets the requirements of a Social Equity Applicant or a hemp | ||||||
15 | concentrate retailer must be prepared by an approved agent of | ||||||
16 | an Illinois-registered adult use craft grower that meets the | ||||||
17 | requirements of a Social Equity Applicant, an infuser | ||||||
18 | organization that meets the requirements of a Social Equity | ||||||
19 | Applicant, or a hemp concentrate infuser. | ||||||
20 | (c) An Illinois-registered adult use craft grower that | ||||||
21 | meets the requirements of a Social Equity Applicant, an | ||||||
22 | infuser organization that meets the requirements of a Social | ||||||
23 | Equity Applicant, a hemp concentrate infuser that prepares | ||||||
24 | hemp concentrate derived products for sale or distribution by | ||||||
25 | an Illinois-registered hemp retailer that meets the | ||||||
26 | requirements of a Social Equity Applicant, or a hemp |
| |||||||
| |||||||
1 | concentrate retailer shall be under the operational | ||||||
2 | supervision of a Department of Public Health certified food | ||||||
3 | service sanitation manager. | ||||||
4 | (d) An Illinois-registered hemp retailer that meets the | ||||||
5 | requirements of a Social Equity Applicant or a hemp | ||||||
6 | concentrate retailer may not manufacture, process, or produce | ||||||
7 | hemp concentrate derived products. | ||||||
8 | (e) The Department of Public Health shall adopt and | ||||||
9 | enforce rules for the manufacture and processing of hemp | ||||||
10 | concentrate derived products, and, for that purpose, it may at | ||||||
11 | all times enter every building, room, basement, enclosure, or | ||||||
12 | premises occupied or used, or suspected of being occupied or | ||||||
13 | used, for the production, preparation, manufacture for sale, | ||||||
14 | storage, sale, processing, distribution, or transportation of | ||||||
15 | hemp concentrate derived products and inspect the premises | ||||||
16 | together with all utensils, fixtures, furniture, and machinery | ||||||
17 | used for the preparation of these products. | ||||||
18 | (f) The Department shall, by rule, establish a maximum | ||||||
19 | level of THC that may be contained in each serving of a hemp | ||||||
20 | concentrate derived product and within the product package. | ||||||
21 | (g) If a local public health agency has a reasonable | ||||||
22 | belief that a hemp concentrate derived product poses a public | ||||||
23 | health hazard, it may refer the Illinois-registered adult use | ||||||
24 | craft grower that meets the requirements of a Social Equity | ||||||
25 | Applicant, an infuser organization that meets the requirements | ||||||
26 | of a Social Equity Applicant, or a hemp concentrate infuser |
| |||||||
| |||||||
1 | that manufactured or processed the hemp concentrate derived | ||||||
2 | product to the Department of Public Health. If the Department | ||||||
3 | of Public Health finds that a hemp concentrate derived product | ||||||
4 | poses a health hazard, it may bring an action for immediate | ||||||
5 | injunctive relief to require that action be taken as the court | ||||||
6 | deems necessary to meet the hazard of the cultivation facility | ||||||
7 | or seek other relief as provided by rule. | ||||||
8 | Section 40-60. Destruction of hemp concentrate derived | ||||||
9 | product, hemp concentrate, and intermediate hemp products. | ||||||
10 | (a) Any hemp concentrate derived product, hemp | ||||||
11 | concentrate, and intermediate hemp product and scrap not | ||||||
12 | intended for distribution must be destroyed and disposed of | ||||||
13 | under rules adopted by the Department of Agriculture under | ||||||
14 | this Act. Documentation of destruction and disposal shall be | ||||||
15 | retained at the Illinois-registered adult use craft grower | ||||||
16 | that meets the requirements of a Social Equity Applicant, | ||||||
17 | infuser organization that meets the requirements of a Social | ||||||
18 | Equity Applicant, hemp concentrate infuser, or testing | ||||||
19 | facility as applicable for a period of not less than 5 years. | ||||||
20 | (b) An Illinois-registered adult use craft grower that | ||||||
21 | meets the requirements of a Social Equity Applicant, an | ||||||
22 | infuser organization that meets the requirements of a Social | ||||||
23 | Equity Applicant, or a hemp concentrate infuser shall, before | ||||||
24 | destruction, notify the Department and the Illinois State | ||||||
25 | Police. An Illinois-registered hemp retailer that meets the |
| |||||||
| |||||||
1 | requirements of a Social Equity Applicant or a hemp | ||||||
2 | concentrate retailer shall, before destruction, notify the | ||||||
3 | Department of Financial and Professional Regulation and the | ||||||
4 | Illinois State Police. The Department may, by rule, require | ||||||
5 | that an employee of the Department or the Department of | ||||||
6 | Financial and Professional Regulation be present during the | ||||||
7 | destruction of any hemp concentrate derived product, hemp | ||||||
8 | concentrate or intermediate hemp product, scrap, and harvested | ||||||
9 | cannabis, as applicable. | ||||||
10 | (c) An Illinois-registered adult use craft grower that | ||||||
11 | meets the requirements of a Social Equity Applicant, infuser | ||||||
12 | organization that meets the requirements of a Social Equity | ||||||
13 | Applicant, Illinois-registered hemp retailer that meets the | ||||||
14 | requirements of a Social Equity Applicant, hemp concentrate | ||||||
15 | infuser, or hemp concentrate retailer shall keep a record of | ||||||
16 | the date of destruction and how much was destroyed. | ||||||
17 | (d) An Illinois-registered hemp retailer that meets the | ||||||
18 | requirement of a Social Equity Applicant or a hemp concentrate | ||||||
19 | retailer shall destroy all hemp concentrate derived products | ||||||
20 | not sold to purchasers. Documentation of destruction and | ||||||
21 | disposal shall be retained at the Illinois-registered hemp | ||||||
22 | retailer that meets the requirement of a Social Equity | ||||||
23 | Applicant or a hemp concentrate retailer for a period of not | ||||||
24 | less than 5 years. | ||||||
25 | Section 40-65. Hemp concentrate derived product packaging |
| |||||||
| |||||||
1 | and labeling. | ||||||
2 | (a) Each hemp concentrate derived product produced for | ||||||
3 | sale shall be registered with the Department on forms provided | ||||||
4 | by the Department. Each product registration shall include a | ||||||
5 | label and the required registration fee at the rate | ||||||
6 | established by the Department for a comparable medical | ||||||
7 | cannabis or cannabis product, or as established by rule. The | ||||||
8 | registration fee is for the name of the product offered for | ||||||
9 | sale and one fee shall be sufficient for all package sizes. | ||||||
10 | (b) All hemp concentrate or intermediate hemp product | ||||||
11 | intended for distribution to a cannabis or hemp business | ||||||
12 | establishment must be packaged in a sealed, labeled container. | ||||||
13 | (c) A product containing hemp concentrate shall be sold in | ||||||
14 | a sealed, odor-proof, and child-resistant hemp concentrate | ||||||
15 | derived product container consistent with current standards, | ||||||
16 | including the Consumer Product Safety Commission standards | ||||||
17 | referenced by the Poison Prevention Act unless the sale is | ||||||
18 | between cannabis or hemp business establishments. | ||||||
19 | (d) Hemp concentrate derived product shall be individually | ||||||
20 | wrapped or packaged at the original point of preparation. The | ||||||
21 | packaging of the hemp concentrate derived product shall | ||||||
22 | conform to the labeling requirements of the Illinois Food, | ||||||
23 | Drug and Cosmetic Act in addition to the other requirements | ||||||
24 | set forth in this Section. | ||||||
25 | (e) Hemp concentrate derived product shall be labeled | ||||||
26 | before sale and each label shall be securely affixed to the |
| |||||||
| |||||||
1 | package and shall state the following in legible English and | ||||||
2 | any other language required by the Department: | ||||||
3 | (1) The name and address where the item was | ||||||
4 | manufactured by the Illinois-registered adult use craft | ||||||
5 | grower that meets the requirements of a Social Equity | ||||||
6 | Applicant, infuser organization that meets the | ||||||
7 | requirements of a Social Equity Applicant, or hemp | ||||||
8 | concentrate infuser. | ||||||
9 | (2) The common or usual name of the item and the | ||||||
10 | registered name of the hemp concentrate derived product | ||||||
11 | that was registered with the Department under subsection | ||||||
12 | (a). | ||||||
13 | (3) A unique serial number that shall match the | ||||||
14 | product with a craft grower that meets the requirements of | ||||||
15 | a Social Equity Applicant, an infuser organization that | ||||||
16 | meets the requirements of a Social Equity Applicant, or a | ||||||
17 | hemp concentrate infuser and a batch and lot number to | ||||||
18 | facilitate any warnings or recalls by the Department, a | ||||||
19 | craft grower that meets the requirements of a Social | ||||||
20 | Equity Applicant, an infuser organization that meets the | ||||||
21 | requirements of a Social Equity Applicant, or a hemp | ||||||
22 | concentrate infuser. | ||||||
23 | (4) The date of final testing and packaging, if | ||||||
24 | sampled, and the identification of the independent testing | ||||||
25 | laboratory. | ||||||
26 | (5) The date the hemp was harvested and "use by" date. |
| |||||||
| |||||||
1 | (6) The quantity, in ounces or grams, of hemps | ||||||
2 | concentrate or intermediate hemp product contained in the | ||||||
3 | product; | ||||||
4 | (7) A pass or fail rating based on the laboratory's | ||||||
5 | microbiological, mycotoxins, and pesticide and solvent | ||||||
6 | residue analyses, if sampled. | ||||||
7 | (8) A list of the following, including the minimum and | ||||||
8 | maximum percentage content by weight for the following: | ||||||
9 | (A) delta-9-tetrahydrocannabinol; | ||||||
10 | (B) delta-8- tetrahydrocannabinol; | ||||||
11 | (C) tetrahydrocannabinolic acid; | ||||||
12 | (D) cannabidiol (CBD); | ||||||
13 | (E) cannabidiolic acid (CBDA); | ||||||
14 | (F) all other ingredients of the item, including | ||||||
15 | any colors, artificial flavors, and preservatives, | ||||||
16 | listed in descending order by predominance of weight | ||||||
17 | shown with common or usual names. | ||||||
18 | The acceptable tolerances for the minimum percentage | ||||||
19 | printed on the label for any of subparagraphs (A) through | ||||||
20 | (D) of paragraph (8) may not be below 85% or above 115% of | ||||||
21 | the labeled amount. | ||||||
22 | (f) Packaging may not contain information that: | ||||||
23 | (1) is false or misleading; | ||||||
24 | (2) promotes excessive consumption; | ||||||
25 | (3) depicts a person under 21 years of age consuming | ||||||
26 | cannabis or hemp concentrate derived products; |
| |||||||
| |||||||
1 | (4) includes the image of a cannabis leaf or hemp | ||||||
2 | leaf; | ||||||
3 | (5) 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 | are popularly used to advertise to children, or any | ||||||
7 | packaging or labeling that bears reasonable resemblance to | ||||||
8 | any product available for consumption as a commercially | ||||||
9 | available candy or that promotes consumption of cannabis | ||||||
10 | or hemp concentrate derived products; and | ||||||
11 | (6) contains any seal, flag, crest, coat of arms, or | ||||||
12 | other insignia likely to mislead the purchaser to believe | ||||||
13 | that the product has been endorsed, made, or used by the | ||||||
14 | State or any of its representatives, except when | ||||||
15 | authorized by this Act. | ||||||
16 | (g) Hemp concentrate derived products produced by | ||||||
17 | concentrating or extracting ingredients from the industrial | ||||||
18 | hemp plant shall contain the following information, when | ||||||
19 | applicable: | ||||||
20 | (1) if solvents were used to create the concentrate or | ||||||
21 | extract, a statement that discloses the type of extraction | ||||||
22 | method, including any solvents or gases used to create the | ||||||
23 | concentrate or extract; and | ||||||
24 | (2) any other chemicals or compounds used to produce | ||||||
25 | or that were added to the concentrate or extract. | ||||||
26 | (h) All hemp concentrate derived products must contain |
| |||||||
| |||||||
1 | warning statements established for purchasers of a size that | ||||||
2 | is legible and readily visible to a consumer inspecting a | ||||||
3 | package. The warning statements may not be covered or obscured | ||||||
4 | in any way. The Department of Public Health shall define and | ||||||
5 | update appropriate health warnings for packages including | ||||||
6 | specific labeling or warning requirements for specific hemp | ||||||
7 | concentrate derived products. | ||||||
8 | (i) Unless modified by rule to strengthen or respond to | ||||||
9 | new evidence and science, the following warnings shall apply | ||||||
10 | to all hemp concentrate derived products: "This product | ||||||
11 | contains hemp concentrate or intermediate hemp product and is | ||||||
12 | intended for use by adults 21 and over. Its use can impair | ||||||
13 | cognition and may be habit forming. This product should not be | ||||||
14 | used by pregnant or breastfeeding women. It is unlawful to | ||||||
15 | sell or give this item to any individual. It is illegal to | ||||||
16 | operate a motor vehicle while under the influence of hemp | ||||||
17 | concentrate or intermediate hemp product. Possession or use of | ||||||
18 | this product may carry significant legal penalties in some | ||||||
19 | jurisdictions.". | ||||||
20 | (j) Warnings for each of the following product types must | ||||||
21 | be present on labels when offered for sale to a purchaser: | ||||||
22 | (1) Hemp concentrate derived products that may be | ||||||
23 | smoked must contain a statement that "Smoking is hazardous | ||||||
24 | to your health.". | ||||||
25 | (2) Hemp concentrate derived products, other than | ||||||
26 | those intended for topical application, must contain a |
| |||||||
| |||||||
1 | statement "CAUTION: This product contains hemp concentrate | ||||||
2 | or intermediate hemp product, and intoxication following | ||||||
3 | use may be delayed 2 or more hours. This product was | ||||||
4 | produced in a facility that may also process common food | ||||||
5 | allergens.". | ||||||
6 | (3) Hemp concentrate derived products intended for | ||||||
7 | topical application must contain a statement "DO NOT EAT" | ||||||
8 | in bold, capital letters. | ||||||
9 | (k) Each hemp concentrate derived products intended for | ||||||
10 | consumption must be individually packaged, must include the | ||||||
11 | total milligram content of THC and CBD, and may not (i) include | ||||||
12 | more than a total of 100 milligrams of THC per package if | ||||||
13 | packaged by an Illinois-registered adult use craft grower that | ||||||
14 | meets the requirement of a Social Equity Applicant or an | ||||||
15 | infuser that meets the requirement of a Social Equity | ||||||
16 | Applicant and (ii) contain more than 50 milligrams of THC per | ||||||
17 | package if packaged by a hemp infuser. A package may contain | ||||||
18 | multiple servings of (A) 10 milligrams of THC if packaged by an | ||||||
19 | Illinois-registered adult use craft grower that meets the | ||||||
20 | requirement of a Social Equity Applicant or an infuser that | ||||||
21 | meets the requirement of a Social Equity Applicant or (B) 5 | ||||||
22 | milligrams of THC if packaged by a hemp concentrate infuser, | ||||||
23 | each indicated by scoring, wrapping, or by other indicators | ||||||
24 | designating individual serving sizes. The Department may | ||||||
25 | change the total amount of THC allowed for each package, or the | ||||||
26 | total amount of THC allowed for each serving size, by rule. |
| |||||||
| |||||||
1 | (l) An individual other than the purchaser may not alter | ||||||
2 | or destroy labeling affixed to the primary packaging of hemp | ||||||
3 | concentrate derived products. | ||||||
4 | (m) For each commercial weighing and measuring device used | ||||||
5 | at a facility, the cannabis or hemp business establishment | ||||||
6 | must: | ||||||
7 | (1) ensure that the commercial device is licensed | ||||||
8 | under the Weights and Measures Act and the associated | ||||||
9 | administrative rules; | ||||||
10 | (2) maintain documentation of the licensure of the | ||||||
11 | commercial device; and | ||||||
12 | (3) provide a copy of the license of the commercial | ||||||
13 | device to the Department for review upon request. | ||||||
14 | (n) It is the responsibility of the Department to ensure | ||||||
15 | that packaging and labeling requirements, including product | ||||||
16 | warnings, are enforced at all times for products provided to | ||||||
17 | purchasers. Product registration requirements and container | ||||||
18 | requirements may be modified by rule by the Department. | ||||||
19 | (o) Any labeling under this Section, including warning | ||||||
20 | labels and the specific wording of the labels, may be modified | ||||||
21 | by rule by the Department. | ||||||
22 | Section 40-70. Local ordinances. Unless otherwise provided | ||||||
23 | under this Act or otherwise in accordance with State law: | ||||||
24 | (1) A municipality or county, including a county | ||||||
25 | within the unincorporated territory of the county, may |
| |||||||
| |||||||
1 | enact reasonable zoning ordinances or resolutions, not in | ||||||
2 | conflict with this Act or rules adopted pursuant to this | ||||||
3 | Act, regulating hemp business establishments. The | ||||||
4 | municipality or county may not prohibit home cultivation | ||||||
5 | of hemp or unreasonably prohibit use of hemp authorized by | ||||||
6 | this Act. | ||||||
7 | (2) The municipality or county may enact ordinances | ||||||
8 | not in conflict with this Act or with rules adopted | ||||||
9 | pursuant to this Act governing the time, place, manner, | ||||||
10 | and number of hemp business establishment operations, | ||||||
11 | including minimum distance limitations between hemp | ||||||
12 | business establishments and locations it deems sensitive, | ||||||
13 | including colleges and universities, through the use of | ||||||
14 | conditional use permits. The municipality or county may | ||||||
15 | establish civil penalties for violation of an ordinance | ||||||
16 | governing the time, place, and manner of operation of a | ||||||
17 | hemp business establishment or a conditional use permit in | ||||||
18 | the jurisdiction of the municipality or county. The | ||||||
19 | municipality or county may not unreasonably restrict the | ||||||
20 | time, place, manner, and number of hemp business | ||||||
21 | establishment operations authorized by this Act. | ||||||
22 | (3) The municipality or county may authorize or permit | ||||||
23 | the on-premises consumption of hemp concentrate derived | ||||||
24 | products at or in a hemp retailer that meets the | ||||||
25 | requirements of a Social Equity Applicant, hemp | ||||||
26 | concentrate retailer, or retail tobacco store, as defined |
| |||||||
| |||||||
1 | under Section 10 of the Smoke Free Illinois Act, within | ||||||
2 | its jurisdiction in a manner consistent with this Act. A | ||||||
3 | hemp retailer that meets the requirements of a Social | ||||||
4 | Equity Applicant, hemp concentrate retailer, or retail | ||||||
5 | tobacco store authorized or permitted by the municipality | ||||||
6 | or county to allow on-site consumption shall not be deemed | ||||||
7 | a public place within the meaning of the Smoke Free | ||||||
8 | Illinois Act. | ||||||
9 | (4) A home rule unit may not regulate the activities | ||||||
10 | described in paragraph (1), (2), or (3) in a manner more | ||||||
11 | restrictive than the regulation of those activities by the | ||||||
12 | State under this Act. Paragraphs (1), (2), and (3) are a | ||||||
13 | limitation under subsection (i) of Section 6 of Article | ||||||
14 | VII of the Illinois Constitution on the concurrent | ||||||
15 | exercise by home rule units of powers and functions | ||||||
16 | exercised by the State. | ||||||
17 | (5) The municipality or county may enact ordinances to | ||||||
18 | prohibit or significantly limit a hemp business | ||||||
19 | establishment's location. | ||||||
20 | Section 40-75. Confidentiality. | ||||||
21 | (a) Information provided by the hemp business | ||||||
22 | establishment licensees or applicants to the Department, the | ||||||
23 | Department of Public Health, the Department of Financial and | ||||||
24 | Professional Regulation, or other agency shall be limited to | ||||||
25 | information necessary for the purposes of administering this |
| |||||||
| |||||||
1 | Act. The information provided is subject to the provisions and | ||||||
2 | limitations contained in the Freedom of Information Act and | ||||||
3 | may be disclosed in accordance with this Act. | ||||||
4 | (b) The following information received and records kept by | ||||||
5 | the Department, the Department of Public Health, the Illinois | ||||||
6 | State Police, and the Department of Financial and Professional | ||||||
7 | Regulation for purposes of administering this Article are | ||||||
8 | subject to all applicable federal privacy laws, are | ||||||
9 | confidential and exempt from disclosure under the Freedom of | ||||||
10 | Information Act, except as provided in this Act, and not | ||||||
11 | subject to disclosure to any individual or public or private | ||||||
12 | entity, except to the Department of Financial and Professional | ||||||
13 | Regulation, the Department, the Department of Public Health, | ||||||
14 | and the Illinois State Police as necessary to perform official | ||||||
15 | duties under this Article and to the Attorney General as | ||||||
16 | necessary to enforce the provisions of this Act. The following | ||||||
17 | information received and kept by the Department of Financial | ||||||
18 | and Professional Regulation or the Department may be disclosed | ||||||
19 | to the Department of Public Health, the Department, the | ||||||
20 | Department of Revenue, the Illinois State Police, or the | ||||||
21 | Attorney General upon request: | ||||||
22 | (1) Applications and renewals, their contents, and | ||||||
23 | supporting information submitted by or on behalf of a hemp | ||||||
24 | business establishment, in compliance with this Article, | ||||||
25 | including their physical addresses; however, this does not | ||||||
26 | preclude the release of ownership information about hemp |
| |||||||
| |||||||
1 | business establishment licenses, or information submitted | ||||||
2 | with an application required to be disclosed pursuant to | ||||||
3 | subsection (f). | ||||||
4 | (2) Any plans, procedures, policies, or other records | ||||||
5 | relating to hemp business establishment security. | ||||||
6 | (3) Information otherwise exempt from disclosure by | ||||||
7 | State or federal law, including State or national criminal | ||||||
8 | history record information or the nonexistence or lack of | ||||||
9 | such information, may not be disclosed by the Department | ||||||
10 | of Financial and Professional Regulation or the | ||||||
11 | Department, except as necessary to the Attorney General to | ||||||
12 | enforce this Act. | ||||||
13 | (c) The name and address of a hemp concentrate retailer | ||||||
14 | licensed under this Act shall be subject to disclosure under | ||||||
15 | the Freedom of Information Act. The name and hemp business | ||||||
16 | establishment address of the person or entity holding each | ||||||
17 | cannabis business establishment license shall be subject to | ||||||
18 | disclosure. | ||||||
19 | (d) All information collected by the Department of | ||||||
20 | Financial and Professional Regulation or the Department in the | ||||||
21 | course of an examination, inspection, or investigation of a | ||||||
22 | licensee or applicant, including, but not limited to, a | ||||||
23 | complaint against a licensee or applicant filed with the | ||||||
24 | Department of Financial and Professional Regulation or the | ||||||
25 | Department and information collected to investigate the | ||||||
26 | complaint, shall be maintained for the confidential use of the |
| |||||||
| |||||||
1 | Department of Financial and Professional Regulation or the | ||||||
2 | Department and may not be disclosed, except as otherwise | ||||||
3 | provided in this Act. A formal complaint against a licensee by | ||||||
4 | the Department of Financial and Professional Regulation or the | ||||||
5 | Department or any disciplinary order issued by the Department | ||||||
6 | of Financial and Professional Regulation or the Department | ||||||
7 | against a licensee or applicant shall be a public record, | ||||||
8 | except as otherwise provided by law. Complaints from consumers | ||||||
9 | or members of the general public received regarding a | ||||||
10 | specific, named licensee or complaints regarding conduct by | ||||||
11 | unlicensed entities shall be subject to disclosure under the | ||||||
12 | Freedom of Information Act. | ||||||
13 | (e) The Department, the Illinois State Police, and the | ||||||
14 | Department of Financial and Professional Regulation may not | ||||||
15 | share or disclose any State or national criminal history | ||||||
16 | record information, or the nonexistence or lack of such | ||||||
17 | information, to any person or entity not expressly authorized | ||||||
18 | by this Act. | ||||||
19 | (f) The Department and the Department of Financial and | ||||||
20 | Professional Regulation shall publish on each Department | ||||||
21 | website a list of the ownership information of cannabis | ||||||
22 | business establishment licensees under each Department's | ||||||
23 | jurisdiction. The list shall include, but is not limited to: | ||||||
24 | the name of the person or entity holding each hemp business | ||||||
25 | establishment license; and the address at which the entity is | ||||||
26 | operating under this Act. This list shall be published and |
| |||||||
| |||||||
1 | updated monthly. | ||||||
2 | Section 40-80. Suspension or revocation of a license. | ||||||
3 | (a) The Department of Financial and Professional | ||||||
4 | Regulation or the Department may suspend or revoke a license | ||||||
5 | for a violation of this Act or a rule adopted in accordance | ||||||
6 | with this Act by the Department and the Department of | ||||||
7 | Financial and Professional Regulation. | ||||||
8 | (b) The Department and the Department of Financial and | ||||||
9 | Professional Regulation may suspend or revoke an agent | ||||||
10 | identification card for a violation of this Act or a rule | ||||||
11 | adopted in accordance with this Act. | ||||||
12 | Section 40-85. Contracts enforceable. It is the public | ||||||
13 | policy of this State that contracts related to the operation | ||||||
14 | of a lawful hemp business establishment under this Act are | ||||||
15 | enforceable. It is the public policy of this State that no | ||||||
16 | contract entered into by a lawful hemp business establishment | ||||||
17 | or its agents on behalf of a hemp business establishment, or by | ||||||
18 | those who allow property to be used by a hemp business | ||||||
19 | establishment, shall be unenforceable on the basis that | ||||||
20 | cultivating, obtaining, manufacturing, processing, | ||||||
21 | distributing, dispensing, transporting, selling, possessing, | ||||||
22 | or using cannabis or hemp is prohibited by federal law. | ||||||
23 | Section 40-90. Annual reports. |
| |||||||
| |||||||
1 | (a) The Department of Financial and Professional | ||||||
2 | Regulation shall submit to the General Assembly and Governor a | ||||||
3 | report, by September 30 of each year, that does not disclose | ||||||
4 | any information identifying information about hemp business | ||||||
5 | establishments but does contain, at a minimum, all of the | ||||||
6 | following information for the previous fiscal year: | ||||||
7 | (1) The number of licenses issued to hemp concentrate | ||||||
8 | retailers by county, or, in counties with greater than | ||||||
9 | 3,000,000 residents, by zip code. | ||||||
10 | (2) The total number of hemp concentrate retailers | ||||||
11 | that are minority persons, women, or persons with | ||||||
12 | disabilities, as those terms are defined in the Business | ||||||
13 | Enterprise for Minorities, Women, and Persons with | ||||||
14 | Disabilities Act. | ||||||
15 | (3) The total amount of revenues received from hemp | ||||||
16 | concentrate retailers or hemp retailers that meet the | ||||||
17 | requirements of a Social Equity Applicant, segregated from | ||||||
18 | revenues received from hemp retailers under the Cannabis | ||||||
19 | Regulation and Tax Act or Compassionate Use of Medical | ||||||
20 | Cannabis Program Act by county, separated by source of | ||||||
21 | revenue. | ||||||
22 | (4) An analysis of revenue generated from taxation, | ||||||
23 | licensing, and other fees for the State, including | ||||||
24 | recommendations to change the tax rate applied. | ||||||
25 | (b) The Department shall submit to the General Assembly | ||||||
26 | and Governor a report, by September 30 of each year, that does |
| |||||||
| |||||||
1 | not disclose any information identifying information about | ||||||
2 | hemp business establishment but does contain, at a minimum, | ||||||
3 | all of the following information for the previous fiscal year: | ||||||
4 | (1) The number of licenses issued to hemp processors, | ||||||
5 | hemp concentrate infusers, and hemp distributors by | ||||||
6 | license type, and, in counties with more than 3,000,000 | ||||||
7 | residents, by zip code. | ||||||
8 | (2) The total number of hemp processors, hemp | ||||||
9 | concentrate infusers, and hemp distributors by license | ||||||
10 | type minority persons, women, or persons with | ||||||
11 | disabilities, as those terms are defined in the Business | ||||||
12 | Enterprise for Minorities, Women, and Persons with | ||||||
13 | Disabilities Act. | ||||||
14 | (3) The total amount of revenue received from hemp | ||||||
15 | processors, hemp concentrate infusers, and hemp | ||||||
16 | distributors separated by license types and source of | ||||||
17 | revenue. | ||||||
18 | (4) The total amount of revenue received from craft | ||||||
19 | growers and infusers that share a premises or majority | ||||||
20 | ownership with a hemp retailer. | ||||||
21 | (5) The total amount of revenue received from | ||||||
22 | Illinois-registered adult use craft growers that meet the | ||||||
23 | requirements of a Social Equity Applicant and infusers | ||||||
24 | that meet the requirements of a Social Equity Applicant, | ||||||
25 | segregated from revenues received from hemp retailers | ||||||
26 | under the Cannabis Regulation and Tax Act or Compassionate |
| |||||||
| |||||||
1 | Use of Medical Cannabis Program Act by county, separated | ||||||
2 | by source of revenue. | ||||||
3 | (6) An analysis of revenue generated from taxation, | ||||||
4 | licensing, and other fees for the State, including | ||||||
5 | recommendations to change the tax rate applied. | ||||||
6 | (c) The Illinois State Police shall submit to the General | ||||||
7 | Assembly and Governor a report, by September 30 of each year | ||||||
8 | that contains, at a minimum, all of the following information | ||||||
9 | for the previous fiscal year: | ||||||
10 | (1) The effect of regulation and taxation of hemp | ||||||
11 | concentrate derived products on law enforcement resources. | ||||||
12 | (2) The impact of regulation and taxation of hemp | ||||||
13 | concentrate derived products on highway and waterway | ||||||
14 | safety and rates of impaired driving or operating when | ||||||
15 | impairment was determined based on failure of a field | ||||||
16 | sobriety test. | ||||||
17 | (3) The available and emerging methods for detecting | ||||||
18 | the metabolites for delta-9-tetrahydrocannabinol or | ||||||
19 | delta-8-tetrahydrocannabinol in bodily fluids, including, | ||||||
20 | without limitation, blood and saliva. | ||||||
21 | (4) The effectiveness of current laws regarding | ||||||
22 | driving while intoxicated and recommendations for | ||||||
23 | improvements to policy to better ensure safe highways and | ||||||
24 | fair laws. | ||||||
25 | (d) The Adult Use Cannabis Health Advisory Committee shall | ||||||
26 | submit to the General Assembly and Governor a report, by |
| |||||||
| |||||||
1 | September 30 of each year, that does not disclose any | ||||||
2 | identifying information about any individuals but does | ||||||
3 | contain, at a minimum: | ||||||
4 | (1) Self-reported youth hemp concentrate derived | ||||||
5 | product use, as published in the most recent Illinois | ||||||
6 | Youth Survey available. | ||||||
7 | (2) Self-reported adult hemp concentrate derived | ||||||
8 | product use, as published in the most recent Behavioral | ||||||
9 | Risk Factor Surveillance Survey available. | ||||||
10 | (3) Hospital room admissions and hospital utilization | ||||||
11 | rates caused by hemp concentrate derived product | ||||||
12 | consumption, including the presence or detection of other | ||||||
13 | drugs. | ||||||
14 | (4) Overdoses of hemp concentrate derived product and | ||||||
15 | poison control data, including the presence of other drugs | ||||||
16 | that may have contributed. | ||||||
17 | (5) Incidents of impaired driving caused by the | ||||||
18 | consumption of hemp concentrate derived products, | ||||||
19 | including the presence of other drugs or alcohol that may | ||||||
20 | have contributed to the impaired driving. | ||||||
21 | (6) Prevalence of infants born testing positive for | ||||||
22 | delta-9-tetrahydrocannabinol or | ||||||
23 | delta-9-tetrahydrocannabinol, including demographic and | ||||||
24 | racial information on which infants are tested. | ||||||
25 | (7) Public perceptions of use and risk of harm. | ||||||
26 | (8) Revenue collected from hemp concentrate derived |
| |||||||
| |||||||
1 | products taxation and how that revenue was used. | ||||||
2 | (9) Cannabis and hemp concentrate retail licenses | ||||||
3 | granted and locations. | ||||||
4 | (10) Hemp concentrate derived product-related arrests. | ||||||
5 | (11) The number of individuals completing required bud | ||||||
6 | tender training. | ||||||
7 | (e) Each agency or committee submitting reports under this | ||||||
8 | Section may consult with one another in the preparation of | ||||||
9 | each report. | ||||||
10 | Section 40-95. Potency level. Nothing in this Act shall | ||||||
11 | prohibit hemp concentrate or intermediate hemp product that is | ||||||
12 | sold, offered for sale, or otherwise transferred from a | ||||||
13 | cannabis or hemp business establishment to another cannabis or | ||||||
14 | hemp business establishment from having a potency level above | ||||||
15 | the potency requirements set forth in this Act. | ||||||
16 | Section 40-100. Home rule. Except as otherwise allowed in | ||||||
17 | this Act, the regulation and licensing of the activities | ||||||
18 | described in this Act are exclusive powers and functions of | ||||||
19 | the State. Except as otherwise allowed in this Act, a unit of | ||||||
20 | local government, including a home rule unit, may not regulate | ||||||
21 | or license the activities described in this Act. This Section | ||||||
22 | is a denial and limitation of home rule powers and functions | ||||||
23 | under subsection (h) of Section 6 of Article VII of the | ||||||
24 | Illinois Constitution. |
| |||||||
| |||||||
1 | Section 40-105. Conflict of interest. A person is | ||||||
2 | ineligible to apply for, hold, or own financial or voting | ||||||
3 | interest, other than a passive interest in a publicly traded | ||||||
4 | company, in a cannabis or hemp business license under this Act | ||||||
5 | if, within a 2-year period after the effective date of this | ||||||
6 | Act, the person or the person's spouse or immediate family | ||||||
7 | member was a member of the General Assembly or a State employee | ||||||
8 | at an agency that regulates cannabis or hemp business | ||||||
9 | establishment license holders who participated personally and | ||||||
10 | substantially in the award of licenses under this Act. A | ||||||
11 | person who violates this Section shall be guilty under | ||||||
12 | subsection (b) of Section 50-5 of the State Officials and | ||||||
13 | Employees Ethics Act. | ||||||
14 | Article 45. | ||||||
15 | Personal Use of Hemp Cannabinoid Products | ||||||
16 | Section 45-5. Possession limit. | ||||||
17 | (a) For a person who is 21 years of age or older and a | ||||||
18 | resident of this State, the possession limit is as follows: | ||||||
19 | (1) 30 grams of hemp concentrate derived product in | ||||||
20 | the form of flower; or | ||||||
21 | (2) no more than 500 milligrams of THC contained in a | ||||||
22 | hemp concentrate derived products, 500 milligrams of THC | ||||||
23 | contained in cannabis-infused products, or 500 milligrams |
| |||||||
| |||||||
1 | of THC contained in both hemp concentrate derived products | ||||||
2 | and cannabis-infused products. | ||||||
3 | (b) For a person who is 21 years of age or older and who is | ||||||
4 | not a resident of this State, the possession limit is as | ||||||
5 | follows: | ||||||
6 | (1) 15 grams of hemp concentrate derived product in | ||||||
7 | the form of flower; or | ||||||
8 | (2) no more than 250 milligrams of THC contained in a | ||||||
9 | hemp concentrate derived products, 250 milligrams of THC | ||||||
10 | contained in cannabis-infused products, or 250 milligrams | ||||||
11 | of THC contained in both hemp concentrate derived products | ||||||
12 | and cannabis-infused products. | ||||||
13 | A person may not possess hemp concentrate or intermediate | ||||||
14 | hemp products without being a licensed hemp business | ||||||
15 | establishment. | ||||||
16 | (c) The possession limits under subsections (a) and (b) | ||||||
17 | are cumulative. The possession limits under subsections (a) | ||||||
18 | and (b) and the possession limits found in subsection (a) and | ||||||
19 | (b) of Section 10-10 in the Cannabis Regulation and Tax Act are | ||||||
20 | cumulative. | ||||||
21 | (d) A person shall not knowingly obtain, seek to obtain, | ||||||
22 | or possess an amount of cannabis or hemp concentrate derived | ||||||
23 | products or both from a hemp retailer, craft grower, or a hemp | ||||||
24 | concentrate retailer that would cause the person to exceed the | ||||||
25 | possession limit under this Section or the possession limits | ||||||
26 | under the Cannabis Regulation and Tax Act or the Compassionate |
| |||||||
| |||||||
1 | Use of Medical Cannabis Act. | ||||||
2 | Section 45-10. Age limit. | ||||||
3 | (a) Nothing in this Act permits the transfer of hemp | ||||||
4 | concentrate product, with or without remuneration, to a person | ||||||
5 | under 21 years of age or allows a person under 21 years of age | ||||||
6 | to purchase, possess, use, process, transport, or consume hemp | ||||||
7 | concentrate derived product. | ||||||
8 | (b) A person under 21 years of age with hemp concentrate | ||||||
9 | derived products in the person's possession is liable under | ||||||
10 | subsection (a) of Section 4 of the Cannabis Control Act. | ||||||
11 | (c) If the person under the age of 21 was in a motor | ||||||
12 | vehicle at the time of the offense, the Secretary of State may | ||||||
13 | suspend or revoke the driving privileges of any person for a | ||||||
14 | violation of this Section under Section 6-206 of the Illinois | ||||||
15 | Vehicle Code and the rules adopted under it. | ||||||
16 | (d) It is unlawful for any parent or guardian to knowingly | ||||||
17 | permit the parent's or guardian's residence, any other private | ||||||
18 | property under the parent's or guardian's control, or any | ||||||
19 | vehicle, conveyance, or watercraft under the parent's or | ||||||
20 | guardian's control, to be used by an invitee under the age of | ||||||
21 | 21 who is an invitee of the parent's child or the guardian's | ||||||
22 | ward in a manner that constitutes a violation of this Section. | ||||||
23 | A parent or guardian is deemed to have knowingly permitted the | ||||||
24 | parent's or guardian's residence, any other private property | ||||||
25 | under the parent's or guardian's control, or any vehicle, |
| |||||||
| |||||||
1 | conveyance, or watercraft under the parent's or guardian's | ||||||
2 | control to be used in violation of this Section if the parent | ||||||
3 | or guardian knowingly authorizes or permits consumption of | ||||||
4 | hemp concentrate derived product by underage invitees. Any | ||||||
5 | person who violates this subsection is guilty of a Class A | ||||||
6 | misdemeanor and the person's sentence shall include, but shall | ||||||
7 | not be limited to, a fine of not less than $500. If a violation | ||||||
8 | of this subsection directly or indirectly results in great | ||||||
9 | bodily harm or death to any person, the person violating this | ||||||
10 | subsection is guilty of a Class 4 felony. In this subsection, | ||||||
11 | where the residence or other property has an owner and a tenant | ||||||
12 | or lessee, the trier of fact may infer that the residence or | ||||||
13 | other property is occupied only by the tenant or lessee. | ||||||
14 | Section 45-15. Identification; false identification; | ||||||
15 | penalty. | ||||||
16 | (a) To protect personal privacy, the Department may not | ||||||
17 | require a purchaser to provide a hemp concentrate retailer or | ||||||
18 | hemp retailer that meets the qualifications of a Social Equity | ||||||
19 | Applicant with personal information other than | ||||||
20 | government-issued identification to determine the purchaser's | ||||||
21 | age, and a hemp concentrate retailer or hemp retailer that | ||||||
22 | meets the qualifications of a Social Equity Applicant may not | ||||||
23 | obtain and record personal information about a purchaser | ||||||
24 | without the purchaser's consent. A hemp concentrate retailer | ||||||
25 | or hemp retailer that meets the qualifications of a Social |
| |||||||
| |||||||
1 | Equity Applicant shall use an electronic reader or electronic | ||||||
2 | scanning device to scan a purchaser's government-issued | ||||||
3 | identification, if applicable, to determine the purchaser's | ||||||
4 | age and the validity of the identification. Any identifying or | ||||||
5 | personal information of a purchaser obtained or received in | ||||||
6 | accordance with this Section shall not be retained, used, | ||||||
7 | shared or disclosed for any purpose except as authorized by | ||||||
8 | this Act. | ||||||
9 | (b) A person who is under 21 years of age may not present | ||||||
10 | or offer to a hemp business establishment or the hemp business | ||||||
11 | establishment's principal or employee any written or oral | ||||||
12 | evidence of age that is false, fraudulent, or not actually the | ||||||
13 | person's own, for the purpose of: | ||||||
14 | (1) purchasing, attempting to purchase, or otherwise | ||||||
15 | obtaining or attempting to obtain hemp concentrate derived | ||||||
16 | products; or | ||||||
17 | (2) gaining access to a hemp business establishment. | ||||||
18 | (c) A violation of this Section is a Class A misdemeanor | ||||||
19 | consistent with Section 6-20 of the Liquor Control Act of | ||||||
20 | 1934. | ||||||
21 | (d) The Secretary of State may suspend or revoke the | ||||||
22 | driving privileges of any person for a violation of this | ||||||
23 | Section under Section 6-206 of the Illinois Vehicle Code and | ||||||
24 | the rules adopted under it. | ||||||
25 | (e) An agent or employee of the licensee may not be | ||||||
26 | disciplined or discharged for selling or furnishing hemp |
| |||||||
| |||||||
1 | concentrate derived products to a person under 21 years of age | ||||||
2 | if the agent or employee demanded and was shown, before | ||||||
3 | furnishing hemp concentrate derived products to a person under | ||||||
4 | 21 years of age, adequate written evidence of age and identity | ||||||
5 | of the person. This subsection does not apply if the agent or | ||||||
6 | employee accepted the written evidence knowing it to be false | ||||||
7 | or fraudulent. Adequate written evidence of age and identity | ||||||
8 | of the person is a document issued by a federal, State, county, | ||||||
9 | or municipal government, or subdivision or agency thereof, | ||||||
10 | including, but not limited to, a motor vehicle operator's | ||||||
11 | license, a registration certificate issued under the Military | ||||||
12 | Selective Service Act, or an identification card issued to a | ||||||
13 | member of the Armed Forces. Proof that the licensee or his or | ||||||
14 | her employee or agent was shown and reasonably relied upon | ||||||
15 | such written evidence in any transaction forbidden by this | ||||||
16 | Section is an affirmative defense in any criminal prosecution | ||||||
17 | therefor or to any proceedings for the suspension or | ||||||
18 | revocation of any license based thereon. | ||||||
19 | Section 45-20. Immunities and presumptions related to the | ||||||
20 | use of hemp concentrate derived products by purchasers. | ||||||
21 | (a) A purchaser who is 21 years of age or older is not | ||||||
22 | subject to arrest, prosecution, denial of any right or | ||||||
23 | privilege, or other punishment, including, but not limited to, | ||||||
24 | a civil penalty or disciplinary action taken by an | ||||||
25 | occupational or professional licensing board, based solely on |
| |||||||
| |||||||
1 | the use of hemp concentrate derived products if (i) the | ||||||
2 | purchaser possesses an amount of hemp concentrate derived | ||||||
3 | products or cannabis that does not exceed the possession limit | ||||||
4 | under Section 45-5 and if the purchaser is licensed, | ||||||
5 | certified, or registered to practice any trade or profession | ||||||
6 | under any Act and (ii) the use of hemp concentrate derived | ||||||
7 | products does not impair that person when he or she is engaged | ||||||
8 | in the practice of the profession for which he or she is | ||||||
9 | licensed, certified, or registered. | ||||||
10 | (b) A purchaser 21 years of age or older is not subject to | ||||||
11 | arrest, prosecution, denial of any right or privilege, or | ||||||
12 | other punishment, including, but not limited to, a civil | ||||||
13 | penalty or disciplinary action taken by an occupational or | ||||||
14 | professional licensing board, based solely for (i) selling | ||||||
15 | hemp cannabinoid paraphernalia if employed and licensed as a | ||||||
16 | hemp concentrate retail agent or dispensing agent by a hemp | ||||||
17 | concentrate retailer or hemp retailer that meets the | ||||||
18 | qualifications of a Social Equity Applicant, (ii) being in the | ||||||
19 | presence or vicinity of the use of hemp concentrate derived | ||||||
20 | product or hemp concentrate derived product paraphernalia as | ||||||
21 | allowed under this Act, or (iii) possessing hemp concentrate | ||||||
22 | derived product paraphernalia. | ||||||
23 | (c) Mere possession of, or application for, an agent | ||||||
24 | identification card or license does not constitute probable | ||||||
25 | cause or reasonable suspicion to believe that a crime has been | ||||||
26 | committed, nor shall it be used as the sole basis to support |
| |||||||
| |||||||
1 | the search of the person, property, or home of the person | ||||||
2 | possessing or applying for the agent identification card. The | ||||||
3 | possession of, or application for, an agent identification | ||||||
4 | card does not preclude the existence of probable cause if | ||||||
5 | probable cause exists based on other grounds. | ||||||
6 | (d) A person employed by the State is not subject to | ||||||
7 | criminal or civil penalties for taking any action in good | ||||||
8 | faith in reliance on this Act when acting within the scope of | ||||||
9 | the person's employment. Representation and indemnification | ||||||
10 | shall be provided to State employees as set forth in Section 2 | ||||||
11 | of the State Employee Indemnification Act. | ||||||
12 | (e) A law enforcement or correctional agency, or a person | ||||||
13 | employed by a law enforcement or correctional agency, is not | ||||||
14 | subject to criminal or civil liability, except for willful and | ||||||
15 | wanton misconduct, as a result of taking any action within the | ||||||
16 | scope of the official duties of the agency or person to | ||||||
17 | prohibit or prevent the possession or use of hemp concentrate | ||||||
18 | derived product by a person incarcerated at a correctional | ||||||
19 | facility, jail, or municipal lockup facility, on parole or | ||||||
20 | mandatory supervised release, or otherwise under the lawful | ||||||
21 | jurisdiction of the agency or person. | ||||||
22 | (f) For purposes of receiving medical care, including | ||||||
23 | organ transplants, a person's use of hemp concentrate product | ||||||
24 | under this Act does not constitute the use of an illicit | ||||||
25 | substance or otherwise disqualify a person from medical care. |
| |||||||
| |||||||
1 | Section 45-25. Discrimination prohibited. | ||||||
2 | (a) The presence of cannabinoid components or metabolites | ||||||
3 | in a person's bodily fluids, possession of hemp concentrate | ||||||
4 | derived product-related paraphernalia, or conduct related to | ||||||
5 | the use of hemp concentrate derived product or the | ||||||
6 | participation in hemp concentrate derived product-related | ||||||
7 | activities lawful under this Act by a custodial or | ||||||
8 | noncustodial parent, grandparent, legal guardian, foster | ||||||
9 | parent, or other person charged with the well-being of a child | ||||||
10 | may not form the sole or primary basis or supporting basis for | ||||||
11 | any action or proceeding by a child welfare agency or in a | ||||||
12 | family or juvenile court, an adverse finding, adverse | ||||||
13 | evidence, or a restriction of any right or privilege in a | ||||||
14 | proceeding related to adoption of a child, acting as a foster | ||||||
15 | parent of a child, or a person's fitness to adopt a child or | ||||||
16 | act as a foster parent of a child, or serve as the basis of any | ||||||
17 | adverse finding, adverse evidence, or restriction of any right | ||||||
18 | of privilege in a proceeding related to guardianship, | ||||||
19 | conservatorship, trusteeship, the execution of a will, or the | ||||||
20 | management of an estate unless the person's actions in | ||||||
21 | relation to hemp concentrate derived product created an | ||||||
22 | unreasonable danger to the safety of the minor or otherwise | ||||||
23 | show the person to not be competent as established by clear and | ||||||
24 | convincing evidence. This subsection applies only to conduct | ||||||
25 | protected under this Act. | ||||||
26 | (b) A landlord may not be penalized or denied any benefit |
| |||||||
| |||||||
1 | under State law for leasing to a person who uses hemp | ||||||
2 | concentrate derived product under this Act. | ||||||
3 | (c) Nothing in this Act may be construed to require a | ||||||
4 | person or establishment in lawful possession of property to | ||||||
5 | allow a guest, client, lessee, customer, or visitor to use | ||||||
6 | hemp concentrate derived product on or in that property, | ||||||
7 | including on any land owned in whole or in part or managed in | ||||||
8 | whole or in part by the State. | ||||||
9 | Section 45-30. Limitations and penalties. | ||||||
10 | (a) This Act does not permit any person to engage in, and | ||||||
11 | does not prevent the imposition of any civil, criminal, or | ||||||
12 | other penalties for engaging in, any of the following conduct: | ||||||
13 | (1) Undertaking any task under the influence of hemp | ||||||
14 | concentrate derived product when doing so would constitute | ||||||
15 | negligence, professional malpractice, or professional | ||||||
16 | misconduct. | ||||||
17 | (2) Possessing hemp concentrate derived product: | ||||||
18 | (A) in a school bus; | ||||||
19 | (B) on the grounds of any preschool or primary or | ||||||
20 | secondary school; | ||||||
21 | (C) in any correctional facility; | ||||||
22 | (D) in a vehicle not open to the public unless the | ||||||
23 | hemp concentrate derived product is in a reasonably | ||||||
24 | secured, sealed, or resealable container and | ||||||
25 | reasonably inaccessible while the vehicle is moving; |
| |||||||
| |||||||
1 | or | ||||||
2 | (E) in a private residence that is used at any time | ||||||
3 | to provide licensed child care or other similar social | ||||||
4 | service care on the premises. | ||||||
5 | (3) Using hemp concentrate derived product: | ||||||
6 | (A) in a school bus; | ||||||
7 | (B) on the grounds of any preschool or primary or | ||||||
8 | secondary school; | ||||||
9 | (C) in any correctional facility; | ||||||
10 | (D) in any motor vehicle; | ||||||
11 | (E) in a private residence that is used at any time | ||||||
12 | to provide licensed child care or other similar social | ||||||
13 | service care on the premises; | ||||||
14 | (F) in any public place; or | ||||||
15 | (G) knowingly in close physical proximity to | ||||||
16 | anyone under 21 years of age. | ||||||
17 | (4) Smoking hemp concentrate derived products in any | ||||||
18 | place where smoking is prohibited under the Smoke Free | ||||||
19 | Illinois Act. | ||||||
20 | (5) Operating, navigating, or being in actual physical | ||||||
21 | control of any motor vehicle, aircraft, watercraft, or | ||||||
22 | snowmobile while using or under the influence of cannabis | ||||||
23 | in violation of Section 11-501 or 11-502.1 of the Illinois | ||||||
24 | Vehicle Code, Section 5-16 of the Boat Registration and | ||||||
25 | Safety Act, or Section 5-7 of the Snowmobile Registration | ||||||
26 | and Safety Act. |
| |||||||
| |||||||
1 | (6) Facilitating the use of hemp concentrate derived | ||||||
2 | products by any person who is not allowed to use hemp | ||||||
3 | concentrate derived products under this Act. | ||||||
4 | (7) Transferring hemp concentrate derived products to | ||||||
5 | any person contrary to this Act. | ||||||
6 | (8) The use of hemp concentrate derived products by a | ||||||
7 | law enforcement officer, corrections officer, probation | ||||||
8 | officer, or firefighter while on duty. Nothing in this Act | ||||||
9 | prevents a public employer of law enforcement officers, | ||||||
10 | corrections officers, probation officers, paramedics, or | ||||||
11 | firefighters from prohibiting or taking disciplinary | ||||||
12 | action for the consumption, possession, sales, purchase, | ||||||
13 | or delivery of hemp concentrate derived product substances | ||||||
14 | while on-duty or off-duty unless provided for in the | ||||||
15 | employer's policies. However, an employer may not take | ||||||
16 | adverse employment action against an employee based solely | ||||||
17 | on the lawful possession or consumption of hemp | ||||||
18 | concentrate derived products substances by members of the | ||||||
19 | employee's household. | ||||||
20 | (9) The use of hemp concentrate derived product by a | ||||||
21 | person who has a school bus permit or a Commercial | ||||||
22 | Driver's License while on duty. | ||||||
23 | As used in this subsection, "public place" means a place | ||||||
24 | where a person could reasonably be expected to be observed by | ||||||
25 | others. "Public place" includes all parts of buildings owned | ||||||
26 | or leased, in whole or in part, by the State or a unit of local |
| |||||||
| |||||||
1 | government and all areas in a park, recreation area, wildlife | ||||||
2 | area, or playground owned, leased, or managed, in whole or in | ||||||
3 | part, by the State or a unit of local government. "Public | ||||||
4 | place" does not include a private residence unless the private | ||||||
5 | residence is used to provide licensed child care, foster care, | ||||||
6 | or other similar social service care on the premises. | ||||||
7 | (b) Nothing in this Act shall be construed to prevent the | ||||||
8 | arrest or prosecution of a person for reckless driving or | ||||||
9 | driving under the influence of hemp concentrate derived | ||||||
10 | product, operating a watercraft under the influence of hemp | ||||||
11 | concentrate derived product, or operating a snowmobile under | ||||||
12 | the influence of hemp concentrate derived product if probable | ||||||
13 | cause exists. | ||||||
14 | (c) Nothing in this Act prevents a private business from | ||||||
15 | restricting or prohibiting the use of hemp concentrate derived | ||||||
16 | product on its property, including areas where motor vehicles | ||||||
17 | are parked. | ||||||
18 | (d) Nothing in this Act requires an individual or business | ||||||
19 | entity to violate the provisions of federal law, including | ||||||
20 | colleges or universities that must abide by the Drug-Free | ||||||
21 | Schools and Communities Act Amendments of 1989, that require | ||||||
22 | campuses to be drug free. | ||||||
23 | (e) To the extent that this Section conflicts with any | ||||||
24 | applicable collective bargaining agreement, the provisions of | ||||||
25 | the collective bargaining agreement prevails. Nothing in this | ||||||
26 | Act shall be construed to limit in any way the right to |
| |||||||
| |||||||
1 | collectively bargain over the subject matters contained in | ||||||
2 | this Act. | ||||||
3 | Section 45-35. Employment; employer liability. | ||||||
4 | (a) Nothing in this Act prohibits an employer from | ||||||
5 | adopting reasonable zero-tolerance or drug-free workplace | ||||||
6 | policies or employment policies concerning drug testing, | ||||||
7 | smoking, consumption, storage, or use of hemp concentrate | ||||||
8 | derived products in the workplace or while on call if the | ||||||
9 | policy is applied in a nondiscriminatory manner. | ||||||
10 | (b) Nothing in this Act requires an employer to permit an | ||||||
11 | employee to be under the influence of or use hemp concentrate | ||||||
12 | derived product in the employer's workplace or while | ||||||
13 | performing the employee's job duties or while on call. | ||||||
14 | (c) Nothing in this Act limits or prevents an employer | ||||||
15 | from disciplining an employee or terminating employment of an | ||||||
16 | employee for violating an employer's employment policies or | ||||||
17 | workplace drug policy. | ||||||
18 | (d) An employer may consider an employee to be impaired or | ||||||
19 | under the influence of hemp concentrate derived product if the | ||||||
20 | employer has a good faith belief that an employee manifests | ||||||
21 | specific, articulable symptoms while working that decrease or | ||||||
22 | lessen the employee's performance of the duties or tasks of | ||||||
23 | the employee's job position, including symptoms of the | ||||||
24 | employee's speech, physical dexterity, agility, coordination, | ||||||
25 | demeanor, irrational or unusual behavior, or negligence or |
| |||||||
| |||||||
1 | carelessness in operating equipment or machinery; disregard | ||||||
2 | for the safety of the employee or others; involvement in any | ||||||
3 | accident that results in serious damage to equipment or | ||||||
4 | property; disruption of a production or manufacturing process; | ||||||
5 | or carelessness that results in any injury to the employee or | ||||||
6 | others. If an employer elects to discipline an employee on the | ||||||
7 | basis that the employee is under the influence or impaired by | ||||||
8 | hemp concentrate derived products, the employer must afford | ||||||
9 | the employee a reasonable opportunity to contest the basis of | ||||||
10 | the determination. | ||||||
11 | (e) Nothing in this Act shall be construed to create or | ||||||
12 | imply 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 hemp concentrate | ||||||
22 | derived products while in the employer's workplace, while | ||||||
23 | performing the employee's job duties, or while on call in | ||||||
24 | violation of the employer's employment policies; | ||||||
25 | (3) actions, including discipline or termination of | ||||||
26 | employment, based on the employer's good faith belief that |
| |||||||
| |||||||
1 | an employee was impaired as a result of the use of hemp | ||||||
2 | concentrate derived products or under the influence of | ||||||
3 | hemp concentrate derived products while at the employer's | ||||||
4 | workplace or while performing the employee's job duties or | ||||||
5 | while on call in violation of the employer's workplace | ||||||
6 | drug policy; or | ||||||
7 | (4) injury, loss, or liability to a third party if the | ||||||
8 | employer neither knew nor had reason to know that the | ||||||
9 | employee was impaired. | ||||||
10 | (f) Nothing in this Act shall be construed to enhance or | ||||||
11 | diminish protections afforded by any other law, including, but | ||||||
12 | not limited to, the Compassionate Use of Medical Cannabis | ||||||
13 | Program Act or the Opioid Alternative Pilot Program. | ||||||
14 | (g) Nothing in this Act shall be construed to interfere | ||||||
15 | with any federal, State, or local restrictions on employment, | ||||||
16 | including, but not limited to, the United States Department of | ||||||
17 | Transportation regulation 49 CFR 40.151(e), or impact an | ||||||
18 | employer's ability to comply with federal or State law or | ||||||
19 | cause it to lose a federal or State contract or funding. | ||||||
20 | (h) As used in this Section: | ||||||
21 | "Workplace" means the employer's premises, including | ||||||
22 | any building, real property, and parking area under the | ||||||
23 | control of the employer or area used by an employee while | ||||||
24 | in the performance of the employee's job duties and | ||||||
25 | vehicles, whether leased, rented, or owned, while being | ||||||
26 | used in the performance of the employee's duties for the |
| |||||||
| |||||||
1 | employer. "Workplace" may be further defined by the | ||||||
2 | employer's written employment policy if the policy is | ||||||
3 | consistent with this Section. | ||||||
4 | An employee is deemed "on call" when the employee is | ||||||
5 | scheduled with at least 24 hours' notice by the employer | ||||||
6 | to be on standby or otherwise responsible for performing | ||||||
7 | tasks related to the person's employment, either at the | ||||||
8 | employer's premises or other previously designated | ||||||
9 | location by the employee's employer or supervisor, to | ||||||
10 | perform a work-related task. | ||||||
11 | Article 50. | ||||||
12 | Intermediate Hemp Product Processing Tax | ||||||
13 | Section 50-5. Definitions. In this Article: | ||||||
14 | "Cannabis" has the meaning given to that term in Article 1 | ||||||
15 | of this Act, except that it does not include cannabis that is | ||||||
16 | subject to tax under the Compassionate Use of Medical Cannabis | ||||||
17 | Program Act. | ||||||
18 | "Craft grower" has the meaning given to that term in the | ||||||
19 | Cannabis Regulation and Tax Act. | ||||||
20 | "Cultivation center" has the meaning given to that term in | ||||||
21 | the Cannabis Regulation and Tax Act. | ||||||
22 | "Department" means the Department of Revenue. | ||||||
23 | "Director" means the Director of Revenue. | ||||||
24 | "Dispensary" has the meaning given to that term in the |
| |||||||
| |||||||
1 | Cannabis Regulation and Tax Act. | ||||||
2 | "Gross receipts" from the sales of intermediate hemp | ||||||
3 | products by a processor means the total selling price or the | ||||||
4 | amount of such sales, as defined in this Article. In the case | ||||||
5 | of charges and time sales, the amount thereof shall be | ||||||
6 | included only when payments are received by the processor. | ||||||
7 | "Infuser" has the meaning given to that term in the | ||||||
8 | Cannabis Regulation and Tax Act. | ||||||
9 | "Person" means a natural individual, firm, partnership, | ||||||
10 | association, joint stock company, joint adventure, public or | ||||||
11 | private corporation, limited liability company, or a receiver, | ||||||
12 | executor, trustee, guardian, or other representative appointed | ||||||
13 | by order of any court. | ||||||
14 | "Processor" or "taxpayer" means a cultivation center, | ||||||
15 | craft grower, or hemp processor who is subject to tax under | ||||||
16 | this Article. | ||||||
17 | "Selling price" means the consideration for a sale valued | ||||||
18 | in money whether received in money or otherwise, including | ||||||
19 | cash, credits, property, and services, and shall be determined | ||||||
20 | without any deduction on account of the cost of the property | ||||||
21 | sold, the cost of materials used, labor or service cost, or any | ||||||
22 | other expense whatsoever, but does not include separately | ||||||
23 | stated charges identified on the invoice by cultivators to | ||||||
24 | reimburse themselves for their tax liability under this | ||||||
25 | Article. |
| |||||||
| |||||||
1 | Section 50-10. Tax imposed. | ||||||
2 | (a) Beginning September 1, 2024, a tax is imposed upon the | ||||||
3 | privilege of processing hemp products into intermediate hemp | ||||||
4 | products at the rate of 7% of the gross receipts from the first | ||||||
5 | sale of intermediate hemp products by a processor. The sale of | ||||||
6 | any product that contains any amount of intermediate hemp | ||||||
7 | product or any derivative thereof is subject to the tax under | ||||||
8 | this Section on the full selling price of the product. The | ||||||
9 | Department may determine the selling price of the intermediate | ||||||
10 | hemp product when the seller and purchaser are affiliated | ||||||
11 | persons, when the sale and purchase of intermediate hemp | ||||||
12 | products are not an arm's length transaction, or when | ||||||
13 | intermediate hemp products are transferred by a craft grower | ||||||
14 | to the craft grower's or infuser or processing organization | ||||||
15 | and a value is not established for the cannabis. The value | ||||||
16 | determined by the Department shall be commensurate with the | ||||||
17 | actual price received for products of like quality, character, | ||||||
18 | and use in the area. If there are no sales of intermediate hemp | ||||||
19 | products of like quality, character, and use in the same area, | ||||||
20 | then the Department shall establish a reasonable value based | ||||||
21 | on sales of products of like quality, character, and use in | ||||||
22 | other areas of the State, taking into consideration any other | ||||||
23 | relevant factors. | ||||||
24 | (b) The intermediate hemp product procession tax imposed | ||||||
25 | under this Article is solely the responsibility of the | ||||||
26 | processor who makes the first sale and is not the |
| |||||||
| |||||||
1 | responsibility of a subsequent purchaser, hemp retailer, hemp | ||||||
2 | concentrate retailer, hemp extract retailer, hemp concentrate | ||||||
3 | infuser, or an infuser. Persons subject to the tax imposed | ||||||
4 | under this Article may, however, reimburse themselves for | ||||||
5 | their tax liability hereunder by separately stating | ||||||
6 | reimbursement for their tax liability as an additional charge. | ||||||
7 | (c) The tax imposed under this Article shall be in | ||||||
8 | addition to all other occupation, privilege, or excise taxes | ||||||
9 | imposed by the State of Illinois or by any unit of local | ||||||
10 | government. | ||||||
11 | Section 50-15. Registration of processor. Every processor | ||||||
12 | subject to the tax under this Article shall apply to the | ||||||
13 | Department for a certificate of registration under this | ||||||
14 | Article. All applications for registration under this Article | ||||||
15 | shall be made by electronic means in the form and manner | ||||||
16 | required by the Department. For that purpose, the provisions | ||||||
17 | of Section 2a of the Retailers' Occupation Tax Act are | ||||||
18 | incorporated into this Article to the extent not inconsistent | ||||||
19 | with this Article. In addition, no certificate of registration | ||||||
20 | shall be issued under this Article unless the applicant is | ||||||
21 | licensed under this Act. | ||||||
22 | Section 50-20. Returns. Return and payment of intermediate | ||||||
23 | hemp product processing tax. Each person who is required to | ||||||
24 | pay the tax imposed by this Article shall make a return to the |
| |||||||
| |||||||
1 | Department on or before the 20th day of each month for the | ||||||
2 | preceding calendar month stating: | ||||||
3 | (1) the taxpayer's name; | ||||||
4 | (2) the address of the taxpayer's principal place of | ||||||
5 | business and the address of the principal place of | ||||||
6 | business, if that is a different address, from which the | ||||||
7 | taxpayer is engaged in the business of processing hemp | ||||||
8 | subject to tax under this Article; | ||||||
9 | (3) the total amount of receipts received by the | ||||||
10 | taxpayer during the preceding calendar month from sales of | ||||||
11 | intermediate hemp product subject to tax under this | ||||||
12 | Article by the taxpayer during the preceding calendar | ||||||
13 | month; | ||||||
14 | (4) the total amount received by the taxpayer during | ||||||
15 | the preceding calendar month on charge and time sales of | ||||||
16 | intermediate hemp product subject to tax imposed under | ||||||
17 | this Article by the taxpayer before the month for which | ||||||
18 | the return is filed; | ||||||
19 | (5) deductions allowed by law; | ||||||
20 | (6) gross receipts that were received by the taxpayer | ||||||
21 | during the preceding calendar month and upon the basis of | ||||||
22 | which the tax is imposed; | ||||||
23 | (7) the amount of tax due; | ||||||
24 | (8) the signature of the taxpayer; and | ||||||
25 | (9) any other information as the Department may | ||||||
26 | reasonably require. |
| |||||||
| |||||||
1 | All returns required to be filed and payments required to | ||||||
2 | be made under this Article shall be by electronic means. | ||||||
3 | Taxpayers who demonstrate hardship in paying electronically | ||||||
4 | may petition the Department to waive the electronic payment | ||||||
5 | requirement. The Department may require a separate return for | ||||||
6 | the tax under this Article or combine the return for the tax | ||||||
7 | under this Article with the return for the tax under the | ||||||
8 | Compassionate Use of Medical Cannabis Program Act, the | ||||||
9 | Cannabis Regulation and Tax Act, or both. If the return for the | ||||||
10 | tax under this Article is combined with the return for tax | ||||||
11 | under the Compassionate Use of Medical Cannabis Program Act, | ||||||
12 | the Cannabis Regulation and Tax Act, or both, then the | ||||||
13 | vendor's discount allowed under this Section and any cap on | ||||||
14 | that discount shall apply to the combined return. The taxpayer | ||||||
15 | making the return provided for in this Section shall also pay | ||||||
16 | to the Department, in accordance with this Section, the amount | ||||||
17 | of tax imposed by this Article, less a discount of 1.75%, but | ||||||
18 | not to exceed $1,000 per return period, which is allowed to | ||||||
19 | reimburse the taxpayer for the expenses incurred in keeping | ||||||
20 | records, collecting tax, preparing and filing returns, | ||||||
21 | remitting the tax, and supplying data to the Department upon | ||||||
22 | request. No discount may be claimed by a taxpayer on returns | ||||||
23 | not timely filed and for taxes not timely remitted. No | ||||||
24 | discount may be claimed by a taxpayer for any return that is | ||||||
25 | not filed electronically. No discount may be claimed by a | ||||||
26 | taxpayer for any payment that is not made electronically |
| |||||||
| |||||||
1 | unless a waiver has been granted under this Section. Any | ||||||
2 | amount that is required to be shown or reported on any return | ||||||
3 | or other document under this Article shall, if the amount is | ||||||
4 | not a whole-dollar amount, be increased to the nearest | ||||||
5 | whole-dollar amount if the fractional part of a dollar is | ||||||
6 | $0.50 or more and decreased to the nearest whole-dollar amount | ||||||
7 | if the fractional part of a dollar is less than $0.50. If a | ||||||
8 | total amount of less than $1 is payable, refundable, or | ||||||
9 | creditable, the amount shall be disregarded if it is less than | ||||||
10 | $0.50 and shall be increased to $1 if it is $0.50 or more. | ||||||
11 | Notwithstanding any other provision of this Article concerning | ||||||
12 | the time within which a taxpayer may file a return, any such | ||||||
13 | taxpayer who ceases to engage in the kind of business that | ||||||
14 | makes the person responsible for filing returns under this | ||||||
15 | Article shall file a final return under this Article with the | ||||||
16 | Department within one month after discontinuing such business. | ||||||
17 | Each taxpayer under this Article shall make estimated | ||||||
18 | payments to the Department on or before the 7th, 15th, 22nd, | ||||||
19 | and last day of the month during which tax liability to the | ||||||
20 | Department is incurred. The payments shall be in an amount not | ||||||
21 | less than the lower of either 22.5% of the taxpayer's actual | ||||||
22 | tax liability for the month or 25% of the taxpayer's actual tax | ||||||
23 | liability for the same calendar month of the preceding year. | ||||||
24 | The amount of the quarter-monthly payments shall be credited | ||||||
25 | against the final tax liability of the taxpayer's return for | ||||||
26 | that month. If any quarter-monthly payment is not paid at the |
| |||||||
| |||||||
1 | time or in the amount required by this Section, then the | ||||||
2 | taxpayer shall be liable for penalties and interest on the | ||||||
3 | difference between the minimum amount due as a payment and the | ||||||
4 | amount of the quarter-monthly payment actually and timely | ||||||
5 | paid, except insofar as the taxpayer has previously made | ||||||
6 | payments for that month to the Department in excess of the | ||||||
7 | minimum payments previously due as provided in this Section. | ||||||
8 | If any payment provided for in this Section exceeds the | ||||||
9 | taxpayer's liabilities under this Article, as shown on an | ||||||
10 | original monthly return, the Department shall, if requested by | ||||||
11 | the taxpayer, issue to the taxpayer a credit memorandum no | ||||||
12 | later than 30 days after the date of payment. The credit | ||||||
13 | evidenced by the credit memorandum may be assigned by the | ||||||
14 | taxpayer to a similar taxpayer under this Act, in accordance | ||||||
15 | with reasonable rules to be prescribed by the Department. If | ||||||
16 | no such request is made, the taxpayer may credit the excess | ||||||
17 | payment against tax liability subsequently to be remitted to | ||||||
18 | the Department under this Act, in accordance with reasonable | ||||||
19 | rules prescribed by the Department. If the Department | ||||||
20 | subsequently determines that all or any part of the credit | ||||||
21 | taken was not actually due to the taxpayer, the taxpayer's | ||||||
22 | discount shall be reduced, if necessary, to reflect the | ||||||
23 | difference between the credit taken and that actually due, and | ||||||
24 | that taxpayer shall be liable for penalties and interest on | ||||||
25 | the difference. | ||||||
26 | If a taxpayer fails to sign a return within 30 days after |
| |||||||
| |||||||
1 | the proper notice and demand for signature by the Department | ||||||
2 | is received by the taxpayer, the return shall be considered | ||||||
3 | valid and any amount shown to be due on the return shall be | ||||||
4 | deemed assessed. | ||||||
5 | Section 50-25. Infuser and hemp concentrate infuser | ||||||
6 | information returns. If it is deemed necessary for the | ||||||
7 | administration of this Article, the Department may adopt rules | ||||||
8 | that require infusers or hemp concentrate infusers to file | ||||||
9 | information returns regarding the sale of hemp concentrate | ||||||
10 | derived products by infusers or hemp concentrate infusers to | ||||||
11 | dispensaries or hemp concentrate retailers. The Department may | ||||||
12 | require infusers or hemp concentrate infusers to file all | ||||||
13 | information returns by electronic means. | ||||||
14 | Section 50-30. Deposit of proceeds. All moneys received by | ||||||
15 | the Department under this Article shall be deposited into the | ||||||
16 | Cannabis Regulation Fund. | ||||||
17 | Section 50-35. Department administration and enforcement. | ||||||
18 | The Department shall administer and enforce this Article, | ||||||
19 | collect all taxes, penalties, and interest due under this | ||||||
20 | Article, dispose of taxes, penalties, and interest so | ||||||
21 | collected in the manner provided in this Article, and | ||||||
22 | determine all rights to credit memoranda arising on account of | ||||||
23 | the erroneous payment of tax, penalty, or interest under this |
| |||||||
| |||||||
1 | Article. In the administration of, and compliance with, this | ||||||
2 | Article, the Department and persons who are subject to this | ||||||
3 | Article shall have the same rights, remedies, privileges, | ||||||
4 | immunities, powers, and duties, shall be subject to the same | ||||||
5 | conditions, restrictions, limitations, penalties, and | ||||||
6 | definitions of terms, and shall employ the same modes of | ||||||
7 | procedure as are prescribed in Sections 1, 2-40, 2a, 2b, 2i, 4, | ||||||
8 | 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, | ||||||
9 | 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act | ||||||
10 | and all of the provisions of the Uniform Penalty and Interest | ||||||
11 | Act that are not inconsistent with this Article, as fully as if | ||||||
12 | those provisions were set forth in this Article. As used in | ||||||
13 | this Section, references in the Retailers' Occupation Tax Act | ||||||
14 | to a "sale of tangible personal property at retail" mean the | ||||||
15 | "sale of intermediate hemp product by a processor". | ||||||
16 | Section 50-40. Invoices. Every sales invoice for | ||||||
17 | intermediate hemp product issued by a processor to a cannabis | ||||||
18 | or hemp business establishment shall contain the processor's | ||||||
19 | certificate of registration number assigned under this | ||||||
20 | Article, date, invoice number, purchaser's name and address, | ||||||
21 | selling price, amount of intermediate hemp product, hemp | ||||||
22 | concentrate, hemp extract, hemp extract derived product, or | ||||||
23 | hemp concentrate derived product and any other reasonable | ||||||
24 | information as the Department may provide by rule is necessary | ||||||
25 | for the administration of this Article. Processors shall |
| |||||||
| |||||||
1 | retain the invoices for inspection by the Department. | ||||||
2 | Section 50-45. Rules. The Department may adopt rules | ||||||
3 | related to the enforcement of this Article. | ||||||
4 | Article 55. | ||||||
5 | Hemp Concentrate Derived Product Excise Tax | ||||||
6 | Section 55-5. Definitions. In this Article: | ||||||
7 | "Adjusted delta-9-tetrahydrocannabinol level" means, for a | ||||||
8 | delta-9-tetrahydrocannabinol dominant product, the sum of the | ||||||
9 | percentage of delta-9-tetrahydrocannabinol plus .877 | ||||||
10 | multiplied by the percentage of tetrahydrocannabinolic acid. | ||||||
11 | "Cannabis retailer" means a dispensing organization that | ||||||
12 | sells cannabis or hemp concentrate derived product for use and | ||||||
13 | not for resale. | ||||||
14 | "Department" means the Department of Revenue. | ||||||
15 | "Director" means the Director of Revenue. | ||||||
16 | "Dispensing organization" has the meaning given to that | ||||||
17 | term in Article 1 of the Cannabis Regulation and Tax Act. | ||||||
18 | "Person" means a natural individual, firm, partnership, | ||||||
19 | association, joint stock company, joint adventure, public or | ||||||
20 | private corporation, limited liability company, or a receiver, | ||||||
21 | executor, trustee, guardian, or other representative appointed | ||||||
22 | by order of any court. | ||||||
23 | "Infuser organization" and "infuser" have the meanings |
| |||||||
| |||||||
1 | given to those terms in Article 1 of the Cannabis Regulation | ||||||
2 | and Tax Act. | ||||||
3 | "Purchase price" means the consideration paid for a | ||||||
4 | purchase of cannabis, valued in money, whether received in | ||||||
5 | money or otherwise, including cash, gift cards, credits, and | ||||||
6 | property and shall be determined without any deduction on | ||||||
7 | account of the cost of materials used, labor or service costs, | ||||||
8 | or any other expense whatsoever. "Purchase price" does not | ||||||
9 | include consideration paid for: | ||||||
10 | (1) any charge for a payment that is not honored by a | ||||||
11 | financial institution; | ||||||
12 | (2) any finance or credit charge, penalty or charge | ||||||
13 | for delayed payment, or discount for prompt payment; and | ||||||
14 | (3) any amounts added to a purchaser's bill because of | ||||||
15 | charges made under the tax imposed by this Article, the | ||||||
16 | Municipal Cannabis Retailers' Occupation Tax Law, the | ||||||
17 | County Cannabis Retailers' Occupation Tax Law, the | ||||||
18 | Retailers' Occupation Tax Act, the Use Tax Act, the | ||||||
19 | Service Occupation Tax Act, the Service Use Tax Act, or | ||||||
20 | any locally imposed occupation or use tax. | ||||||
21 | "Purchaser" means a person who acquires hemp concentrate | ||||||
22 | derived products for a valuable consideration. | ||||||
23 | "Taxpayer" means a hemp concentrate derived product | ||||||
24 | retailer who is required to collect the tax imposed under this | ||||||
25 | Article. |
| |||||||
| |||||||
1 | Section 55-10. Tax imposed. | ||||||
2 | (a) Beginning January 1, 2024, a tax is imposed upon | ||||||
3 | purchasers for the privilege of using hemp concentrate derived | ||||||
4 | products at the following rates: | ||||||
5 | (1) A hemp concentrate derived product, other than a | ||||||
6 | cannabis-infused product, with an adjusted | ||||||
7 | delta-9-tetrahydrocannabinol, or | ||||||
8 | delta-8-tetrahydrocannabinol level at or below 35% shall | ||||||
9 | be taxed at a rate of 10% of the purchase price; | ||||||
10 | (2) A hemp concentrate derived product, other than a | ||||||
11 | cannabis-infused product, with an adjusted | ||||||
12 | delta-9-tetrahydrocannabinol level or | ||||||
13 | delta-8-tetrahydrocannabinol above 35% shall be taxed at a | ||||||
14 | rate of 25% of the purchase price; and | ||||||
15 | (3) A hemp concentrate derived product shall be taxed | ||||||
16 | at a rate of 20% of the purchase price. | ||||||
17 | (b) The purchase of any product that contains any amount | ||||||
18 | of hemp concentrate is subject to the tax under subsection (a) | ||||||
19 | on the full purchase price of the product. | ||||||
20 | (c) The tax imposed by this Article is not imposed with | ||||||
21 | respect to any transaction in interstate commerce, to the | ||||||
22 | extent the transaction may not, under the Constitution and | ||||||
23 | statutes of the United States, be made the subject of taxation | ||||||
24 | by this State. | ||||||
25 | (d) The tax imposed under this Article shall be in | ||||||
26 | addition to all other occupation, privilege, or excise taxes |
| |||||||
| |||||||
1 | imposed by the State or by any municipal corporation or | ||||||
2 | political subdivision thereof. | ||||||
3 | (e) The tax imposed under this Article may not be imposed | ||||||
4 | on any purchase by a purchaser if the hemp concentrate | ||||||
5 | retailer or dispensing organization is prohibited by federal | ||||||
6 | or State Constitution, treaty, convention, statute, or court | ||||||
7 | decision from collecting the tax from the purchaser. | ||||||
8 | Section 55-15. Bundling of taxable and nontaxable items; | ||||||
9 | prohibition; taxation. If a hemp concentrate derived product | ||||||
10 | retailer sells hemp concentrate derived products in | ||||||
11 | combination or bundled with items that are not subject to tax | ||||||
12 | under this Act for one price in violation of the prohibition on | ||||||
13 | this activity in Article 15, then the tax under this Act is | ||||||
14 | imposed on the purchase price of the entire bundled product. | ||||||
15 | Section 55-20. Collection of tax. | ||||||
16 | (a) The tax imposed by this Article shall be collected | ||||||
17 | from the purchaser by the hemp concentrate derived product | ||||||
18 | retailer at the rate stated in Section 55-10 with respect to | ||||||
19 | hemp concentrate derived products sold by the hemp concentrate | ||||||
20 | derived product retailer to the purchaser and shall be | ||||||
21 | remitted to the Department as provided in Section 55-30. Hemp | ||||||
22 | concentrate derived product retailers shall collect the tax | ||||||
23 | from purchasers by adding the tax to the amount of the purchase | ||||||
24 | price received from the purchaser for selling hemp concentrate |
| |||||||
| |||||||
1 | derived products to the purchaser. The tax imposed by this | ||||||
2 | Article shall, when collected, be stated as a distinct item | ||||||
3 | separate and apart from the purchase price of the hemp | ||||||
4 | concentrate derived products. | ||||||
5 | (b) If a hemp concentrate derived product retailer | ||||||
6 | collects the hemp concentrate derived product excise tax | ||||||
7 | measured by a purchase price that is not subject to the | ||||||
8 | intermediate hemp product processing tax, or, if a hemp | ||||||
9 | concentrate derived product retailer, in collecting hemp | ||||||
10 | concentrate derived product excise tax measured by a purchase | ||||||
11 | price that is subject to tax under this Act, collects more from | ||||||
12 | the purchaser than the required amount of the hemp concentrate | ||||||
13 | derived product excise tax on the transaction, the purchaser | ||||||
14 | may request and obtain a refund of that amount from the hemp | ||||||
15 | concentrate derived product retailer. If, however, that amount | ||||||
16 | is not refunded to the purchaser for any reason, the hemp | ||||||
17 | concentrate derived product retailer is liable to pay that | ||||||
18 | amount to the Department. | ||||||
19 | (c) Any person purchasing hemp concentrate derived | ||||||
20 | products subject to tax under this Article as to which there | ||||||
21 | has been no charge made to the person of the tax imposed by | ||||||
22 | Section 55-10 shall make payment of the tax imposed by Section | ||||||
23 | 55-10 in the form and manner provided by the Department not | ||||||
24 | later than the 20th day of the month following the month of | ||||||
25 | purchase of the hemp concentrate derived products. |
| |||||||
| |||||||
1 | Section 55-25. Registration of hemp concentrate derived | ||||||
2 | product retailers. Every hemp concentrate derived product | ||||||
3 | retailer required to collect the tax under this Article shall | ||||||
4 | apply to the Department for a certificate of registration | ||||||
5 | under this Article. All applications for registration under | ||||||
6 | this Article shall be made by electronic means in the form and | ||||||
7 | manner required by the Department. For that purpose, the | ||||||
8 | provisions of Section 2a of the Retailers' Occupation Tax Act | ||||||
9 | are incorporated into this Article to the extent not | ||||||
10 | inconsistent with this Article. In addition, no certificate of | ||||||
11 | registration shall be issued under this Article unless the | ||||||
12 | applicant is licensed under this Act. | ||||||
13 | Section 55-30. Tax collected as debt owed to State. A hemp | ||||||
14 | concentrate derived product retailer required to collect the | ||||||
15 | tax imposed by this Article is liable to the Department for the | ||||||
16 | tax, whether or not the tax has been collected by the hemp | ||||||
17 | concentrate derived product retailer, and the tax shall | ||||||
18 | constitute a debt owed by the hemp concentrate derived product | ||||||
19 | retailer to this State. To the extent that a hemp concentrate | ||||||
20 | derived product retailer required to collect the tax imposed | ||||||
21 | by this Act has actually collected that tax, the tax is held in | ||||||
22 | trust for the benefit of the Department. | ||||||
23 | Section 55-35. Return and payment of tax by hemp | ||||||
24 | concentrate derived product retailer. Each hemp concentrate |
| |||||||
| |||||||
1 | derived product retailer that is required or authorized to | ||||||
2 | collect the tax imposed by this Article shall make a return to | ||||||
3 | the Department, by electronic means, on or before the 20th day | ||||||
4 | of each month for the preceding calendar month stating the | ||||||
5 | following: | ||||||
6 | (1) The hemp concentrate derived product retailer's | ||||||
7 | name. | ||||||
8 | (2) The address of the hemp concentrate derived | ||||||
9 | product retailer's principal place of business and the | ||||||
10 | address of the principal place of business, if that is a | ||||||
11 | different address, from which the hemp concentrate derived | ||||||
12 | product retailer engaged in the business of selling hemp | ||||||
13 | concentrate derived products subject to tax under this | ||||||
14 | Article. | ||||||
15 | (3) The total purchase price received by the hemp | ||||||
16 | concentrate derived product retailer for hemp concentrate | ||||||
17 | derived products subject to tax under this Article. | ||||||
18 | (4) The amount of tax due at each rate. | ||||||
19 | (5) The signature of the cannabis retailer. | ||||||
20 | (6) Any other information as the Department may | ||||||
21 | reasonably require. | ||||||
22 | All returns required to be filed and payments required to | ||||||
23 | be made under this Article shall be by electronic means. Hemp | ||||||
24 | concentrate derived product retailers who demonstrate hardship | ||||||
25 | in paying electronically may petition the Department to waive | ||||||
26 | the electronic payment requirement. |
| |||||||
| |||||||
1 | Any amount that is required to be shown or reported on any | ||||||
2 | return or other document under this Article shall, if the | ||||||
3 | amount is not a whole-dollar amount, be increased to the | ||||||
4 | nearest whole-dollar amount if the fractional part of a dollar | ||||||
5 | is $0.50 or more and decreased to the nearest whole-dollar | ||||||
6 | amount if the fractional part of a dollar is less than $0.50. | ||||||
7 | If a total amount of less than $1 is payable, refundable, or | ||||||
8 | creditable, the amount shall be disregarded if it is less than | ||||||
9 | $0.50 and shall be increased to $1 if it is $0.50 or more. | ||||||
10 | The hemp concentrate derived product retailer making the | ||||||
11 | return provided for in this Section shall also pay to the | ||||||
12 | Department, in accordance with this Section, the amount of tax | ||||||
13 | imposed by this Article, less a discount of 1.75%, but not to | ||||||
14 | exceed $1,000 per return period, which is allowed to reimburse | ||||||
15 | the hemp concentrate derived product retailer for the expenses | ||||||
16 | incurred in keeping records, collecting tax, preparing and | ||||||
17 | filing returns, remitting the tax, and supplying data to the | ||||||
18 | Department upon request. No discount may be claimed by a hemp | ||||||
19 | concentrate derived product retailer on returns not timely | ||||||
20 | filed and for taxes not timely remitted. No discount may be | ||||||
21 | claimed by a taxpayer for any return that is not filed | ||||||
22 | electronically. No discount may be claimed by a taxpayer for | ||||||
23 | any payment that is not made electronically unless a waiver | ||||||
24 | has been granted under this Section. | ||||||
25 | Notwithstanding any other provision of this Article | ||||||
26 | concerning the time within which a hemp concentrate derived |
| |||||||
| |||||||
1 | product retailer may file a return, a hemp concentrate derived | ||||||
2 | product retailer who ceases to engage in the kind of business | ||||||
3 | that makes the person responsible for filing returns under | ||||||
4 | this Article shall file a final return under this Article with | ||||||
5 | the Department within one month after discontinuing the | ||||||
6 | business. | ||||||
7 | Each hemp concentrate derived product retailer shall make | ||||||
8 | estimated payments to the Department on or before the 7th, | ||||||
9 | 15th, 22nd, and last day of the month during which tax | ||||||
10 | liability to the Department is incurred. The payments shall be | ||||||
11 | in an amount not less than the lower of either 22.5% of the | ||||||
12 | hemp concentrate derived product retailer's actual tax | ||||||
13 | liability for the month or 25% of the hemp concentrate derived | ||||||
14 | product retailer's actual tax liability for the same calendar | ||||||
15 | month of the preceding year. The amount of the quarter-monthly | ||||||
16 | payments shall be credited against the final tax liability of | ||||||
17 | the hemp concentrate derived product retailer's return for | ||||||
18 | that month. If any such quarter-monthly payment is not paid at | ||||||
19 | the time or in the amount required by this Section, then the | ||||||
20 | hemp concentrate derived product retailer shall be liable for | ||||||
21 | penalties and interest on the difference between the minimum | ||||||
22 | amount due as a payment and the amount of the quarter-monthly | ||||||
23 | payment actually and timely paid, except insofar as the hemp | ||||||
24 | concentrate derived product retailer has previously made | ||||||
25 | payments for that month to the Department in excess of the | ||||||
26 | minimum payments previously due as provided in this Section. |
| |||||||
| |||||||
1 | If any payment provided for in this Section exceeds the | ||||||
2 | taxpayer's liabilities under this Article, as shown on an | ||||||
3 | original monthly return, the Department shall, if requested by | ||||||
4 | the taxpayer, issue to the taxpayer a credit memorandum no | ||||||
5 | later than 30 days after the date of payment. The credit | ||||||
6 | evidenced by the credit memorandum may be assigned by the | ||||||
7 | taxpayer to a similar taxpayer under this Article, in | ||||||
8 | accordance with reasonable rules to be prescribed by the | ||||||
9 | Department. If no such request is made, the taxpayer may | ||||||
10 | credit the excess payment against tax liability subsequently | ||||||
11 | to be remitted to the Department under this Article, in | ||||||
12 | accordance with reasonable rules prescribed by the Department. | ||||||
13 | If the Department subsequently determines that all or any part | ||||||
14 | of the credit taken was not actually due to the taxpayer, the | ||||||
15 | taxpayer's discount shall be reduced, if necessary, to reflect | ||||||
16 | the difference between the credit taken and that actually due, | ||||||
17 | and that taxpayer shall be liable for penalties and interest | ||||||
18 | on the difference. If a hemp concentrate derived product | ||||||
19 | retailer fails to sign a return within 30 days after the proper | ||||||
20 | notice and demand for signature by the Department is received | ||||||
21 | by the hemp concentrate derived product retailer, the return | ||||||
22 | shall be considered valid and any amount shown to be due on the | ||||||
23 | return shall be deemed assessed. | ||||||
24 | Section 55-40. Deposit of proceeds. All moneys received by | ||||||
25 | the Department under this Article shall be paid into the |
| |||||||
| |||||||
1 | Cannabis Regulation Fund. | ||||||
2 | Section 55-45. Recordkeeping; books and records. | ||||||
3 | (a) Every hemp concentrate derived product retailer, | ||||||
4 | whether or not the retailer has obtained a certificate of | ||||||
5 | registration under Section 55-20, shall keep complete and | ||||||
6 | accurate records of cannabis held, purchased, sold, or | ||||||
7 | otherwise disposed of, and shall preserve and keep all | ||||||
8 | invoices, bills of lading, sales records, and copies of bills | ||||||
9 | of sale, returns, and other pertinent papers and documents | ||||||
10 | relating to the purchase, sale, or disposition of hemp | ||||||
11 | concentrate derived products. The records need not be | ||||||
12 | maintained on the licensed premises but must be maintained in | ||||||
13 | the State of Illinois. However, all original invoices or | ||||||
14 | copies thereof covering purchases of hemp concentrate derived | ||||||
15 | products must be retained on the licensed premises for a | ||||||
16 | period of 90 days after such purchase unless the Department | ||||||
17 | has granted a waiver in response to a written request in cases | ||||||
18 | where records are kept at a central business location within | ||||||
19 | the State. The Department shall adopt rules regarding the | ||||||
20 | eligibility for a waiver, revocation of a waiver, and | ||||||
21 | requirements and standards for maintenance and accessibility | ||||||
22 | of records located at a central location under a waiver | ||||||
23 | provided under this Section. | ||||||
24 | (b) Books, records, papers, and documents that are | ||||||
25 | required by this Article to be kept shall, at all times during |
| |||||||
| |||||||
1 | the usual business hours of the day, be subject to inspection | ||||||
2 | by the Department or its duly authorized agents and employees. | ||||||
3 | The books, records, papers, and documents for any period with | ||||||
4 | respect to which the Department is authorized to issue a | ||||||
5 | notice of tax liability shall be preserved until the | ||||||
6 | expiration of that period. | ||||||
7 | Section 55-50. Violations and penalties. | ||||||
8 | (a) As used in this Section: | ||||||
9 | "Automated sales suppression device" means a software | ||||||
10 | program that falsifies the electronic records of an electronic | ||||||
11 | cash register or other point-of-sale system, including, but | ||||||
12 | not limited to, transaction data and transaction reports. | ||||||
13 | "Automated sales suppression device" includes the software | ||||||
14 | program, any device that carries the software program, or an | ||||||
15 | Internet link to the software program. | ||||||
16 | "Phantom-ware" means a hidden programming option embedded | ||||||
17 | in the operating system of an electronic cash register or | ||||||
18 | hardwired into an electronic cash register that can be used to | ||||||
19 | create a second set of records or that can eliminate or | ||||||
20 | manipulate transaction records in an electronic cash register. | ||||||
21 | "Electronic cash register" means a device that keeps a | ||||||
22 | register or supporting documents through the use of an | ||||||
23 | electronic device or computer system designed to record | ||||||
24 | transaction data for the purpose of computing, compiling, or | ||||||
25 | processing retail sales transaction data in any manner. |
| |||||||
| |||||||
1 | "Transaction data" includes: items purchased by a | ||||||
2 | purchaser; the price of each item; a taxability determination | ||||||
3 | for each item; a segregated tax amount for each taxed item; the | ||||||
4 | amount of cash or credit tendered; the net amount returned to | ||||||
5 | the customer in change; the date and time of the purchase; the | ||||||
6 | name, address, and identification number of the vendor; and | ||||||
7 | the receipt or invoice number of the transaction. | ||||||
8 | "Transaction report" means a report that documents, | ||||||
9 | without limitation, the sales, taxes, or fees collected, media | ||||||
10 | totals, and discount voids at an electronic cash register and | ||||||
11 | that is printed on a cash register tape at the end of a day or | ||||||
12 | shift, or a report that documents every action at an | ||||||
13 | electronic cash register and is stored electronically. | ||||||
14 | (b) When the amount due is under $300, (i) a hemp | ||||||
15 | concentrate derived product retailer that fails to file a | ||||||
16 | return, willfully fails or refuses to make any payment to the | ||||||
17 | Department of the tax imposed by this Article, or files a | ||||||
18 | fraudulent return, (ii) an officer or agent of a corporation | ||||||
19 | engaged in the business of selling hemp concentrate derived | ||||||
20 | products to purchasers located in this State who signs a | ||||||
21 | fraudulent return filed on behalf of the corporation, or (iii) | ||||||
22 | an accountant or other agent who knowingly enters false | ||||||
23 | information on the return of any taxpayer under this Article | ||||||
24 | is guilty of a Class 4 felony. | ||||||
25 | (c) When the amount due is $300 or more, (i) a hemp | ||||||
26 | concentrate derived product retailer who files, or causes to |
| |||||||
| |||||||
1 | be filed, a fraudulent return, (ii) an officer or agent of a | ||||||
2 | corporation engaged in the business of selling hemp | ||||||
3 | concentrate derived products to purchasers located in this | ||||||
4 | State who files or causes to be filed or signs or causes to be | ||||||
5 | signed a fraudulent return filed on behalf of the corporation, | ||||||
6 | or (iii) an accountant or other agent who knowingly enters | ||||||
7 | false information on the return of any taxpayer under this | ||||||
8 | Article is guilty of a Class 3 felony. | ||||||
9 | (d) A person who violates any provision of Section 55-20, | ||||||
10 | fails to keep books and records as required under this | ||||||
11 | Article, or willfully violates a rule of the Department for | ||||||
12 | the administration and enforcement of this Article is guilty | ||||||
13 | of a Class 4 felony. A person commits a separate offense on | ||||||
14 | each day that he or she engages in business in violation of | ||||||
15 | Section 55-20 or a rule of the Department for the | ||||||
16 | administration and enforcement of this Article. If a person | ||||||
17 | fails to produce the books and records for inspection by the | ||||||
18 | Department upon request, a prima facie presumption arises that | ||||||
19 | the person has failed to keep books and records as required | ||||||
20 | under this Article. A person who is unable to rebut this | ||||||
21 | presumption is in violation of this Article and is subject to | ||||||
22 | the penalties provided in this Section. | ||||||
23 | (e) A person who violates any provision of Sections 55-20, | ||||||
24 | fails to keep books and records as required under this | ||||||
25 | Article, or willfully violates a rule of the Department for | ||||||
26 | the administration and enforcement of this Article is guilty |
| |||||||
| |||||||
1 | of a business offense and may be fined up to $5,000. If a | ||||||
2 | person fails to produce books and records for inspection by | ||||||
3 | the Department upon request, a prima facie presumption shall | ||||||
4 | arise that the person has failed to keep books and records as | ||||||
5 | required under this Article. A person who is unable to rebut | ||||||
6 | this presumption is in violation of this Article and is | ||||||
7 | subject to the penalties provided in this Section. A person | ||||||
8 | commits a separate offense on each day that the person engages | ||||||
9 | in business in violation of Section 55-20. | ||||||
10 | (f) A taxpayer or agent of a taxpayer who, with the intent | ||||||
11 | to defraud, purports to make a payment due to the Department by | ||||||
12 | issuing or delivering a check or other order upon a real or | ||||||
13 | fictitious depository for the payment of money knowing that it | ||||||
14 | will not be paid by the depository is guilty of a deceptive | ||||||
15 | practice in violation of Section 17-1 of the Criminal Code of | ||||||
16 | 2012. | ||||||
17 | (g) A person who fails to keep books and records or fails | ||||||
18 | to produce books and records for inspection, as required by | ||||||
19 | Section 55-40, is liable to pay to the Department, for deposit | ||||||
20 | in the Tax Compliance and Administration Fund, a penalty of | ||||||
21 | $1,000 for the first failure to keep books and records or | ||||||
22 | failure to produce books and records for inspection, as | ||||||
23 | required by Section 55-40, and $3,000 for each subsequent | ||||||
24 | failure to keep books and records or failure to produce books | ||||||
25 | and records for inspection, as required by Section 55-40. | ||||||
26 | (h) A person who knowingly acts as a hemp concentrate |
| |||||||
| |||||||
1 | derived product retailer in this State without first having | ||||||
2 | obtained a certificate of registration to do so in compliance | ||||||
3 | with Section 55-20 of this Article shall be guilty of a Class 4 | ||||||
4 | felony. | ||||||
5 | (i) A person commits the offense of tax evasion under this | ||||||
6 | Article when he or she knowingly attempts in any manner to | ||||||
7 | evade or defeat the tax imposed on him or her or on any other | ||||||
8 | person, or the payment thereof, and he or she commits an | ||||||
9 | affirmative act in furtherance of the evasion. As used in this | ||||||
10 | subsection, "affirmative act in furtherance of the evasion" | ||||||
11 | means an act designed in whole or in part to (i) conceal, | ||||||
12 | misrepresent, falsify, or manipulate any material fact or (ii) | ||||||
13 | tamper with or destroy documents or materials related to a | ||||||
14 | person's tax liability under this Article. Two or more acts of | ||||||
15 | sales tax evasion may be charged as a single count in any | ||||||
16 | indictment, information, or complaint and the amount of tax | ||||||
17 | deficiency may be aggregated for purposes of determining the | ||||||
18 | amount of tax that is attempted to be or is evaded and the | ||||||
19 | period between the first and last acts may be alleged as the | ||||||
20 | date of the offense. Penalties for the offense of tax evasion | ||||||
21 | under this subsection are as follows: | ||||||
22 | (1) When the amount of tax, the assessment, or payment | ||||||
23 | of which is attempted to be or is evaded is less than $500, | ||||||
24 | a person is guilty of a Class 4 felony. | ||||||
25 | (2) When the amount of tax, the assessment, or payment | ||||||
26 | of which is attempted to be or is evaded is $500 or more |
| |||||||
| |||||||
1 | but less than $10,000, a person is guilty of a Class 3 | ||||||
2 | felony. | ||||||
3 | (3) When the amount of tax, the assessment, or payment | ||||||
4 | of which is attempted to be or is evaded is $10,000 or more | ||||||
5 | but less than $100,000, a person is guilty of a Class 2 | ||||||
6 | felony. | ||||||
7 | (4) When the amount of tax, the assessment, or payment | ||||||
8 | of which is attempted to be or is evaded is $100,000 or | ||||||
9 | more, a person is guilty of a Class 1 felony. | ||||||
10 | A person who knowingly sells, purchases, installs, | ||||||
11 | transfers, possesses, uses, or accesses an automated sales | ||||||
12 | suppression device or phantom-ware in this State is guilty of | ||||||
13 | a Class 3 felony. | ||||||
14 | A prosecution for any act in violation of this Section may | ||||||
15 | be commenced at any time within 5 years of the commission of | ||||||
16 | that act. | ||||||
17 | (j) The Department may adopt rules to administer the | ||||||
18 | penalties under this Section. | ||||||
19 | (k) A person whose principal place of business is in this | ||||||
20 | State and who is charged with a violation under this Section | ||||||
21 | shall be tried in the county where the person's principal | ||||||
22 | place of business is located unless the person asserts a right | ||||||
23 | to be tried in another venue. | ||||||
24 | (l) Except as otherwise provided in subsection (g), a | ||||||
25 | prosecution for a violation described in this Section may be | ||||||
26 | commenced within 3 years after the commission of the act |
| |||||||
| |||||||
1 | constituting the violation. | ||||||
2 | Section 55-55. Department administration and enforcement. | ||||||
3 | (a) The Department shall administer and enforce this | ||||||
4 | Article, collect all taxes and penalties due under this | ||||||
5 | Article, dispose of taxes and penalties so collected in the | ||||||
6 | manner provided in this Article, and determine all rights to | ||||||
7 | credit memoranda arising on account of the erroneous payment | ||||||
8 | of tax or penalty under this Article. | ||||||
9 | (b) In the administration of, and compliance with, this | ||||||
10 | Article, the Department and persons who are subject to this | ||||||
11 | Article shall have the same rights, remedies, privileges, | ||||||
12 | immunities, powers, and duties, shall be subject to the same | ||||||
13 | conditions, restrictions, limitations, penalties, and | ||||||
14 | definitions of terms, and shall employ the same modes of | ||||||
15 | procedure as are prescribed in Sections 2, 3-55, 3a, 4, 5, 7, | ||||||
16 | 10a, 11, 12a, 12b, 14, 15, 19, 20, 21, and 22 of the Use Tax | ||||||
17 | Act and Sections 1, 2-12, 2b, 4, except that the time | ||||||
18 | limitation provisions shall run from the date when the tax is | ||||||
19 | due rather than from the date when gross receipts are | ||||||
20 | received, 5, except that the time limitation provisions on the | ||||||
21 | issuance of notices of tax liability shall run from the date | ||||||
22 | when the tax is due rather than from the date when gross | ||||||
23 | receipts are received and except that in the case of a failure | ||||||
24 | to file a return required by this Act, no notice of tax | ||||||
25 | liability shall be issued on and after each July 1 and January |
| |||||||
| |||||||
1 | 1 covering tax due with that return during any month or period | ||||||
2 | more than 6 years before that July 1 or January 1, | ||||||
3 | respectively, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5j, 6d, 7, 8, 9, | ||||||
4 | 10, 11, and 12 of the Retailers' Occupation Tax Act and all of | ||||||
5 | the provisions of the Uniform Penalty and Interest Act that | ||||||
6 | are not inconsistent with this Article, as fully as if those | ||||||
7 | provisions were set forth in this Article. References in the | ||||||
8 | incorporated Sections of the Retailers' Occupation Tax Act and | ||||||
9 | the Use Tax Act to retailers, to sellers, or to persons engaged | ||||||
10 | in the business of selling tangible personal property mean | ||||||
11 | hemp concentrate derived product retailers when used in this | ||||||
12 | Article. References in the incorporated Sections to sales of | ||||||
13 | tangible personal property mean sales of hemp concentrate | ||||||
14 | derived products subject to tax under this Article when used | ||||||
15 | in this Article. | ||||||
16 | Section 55-60. Arrest; search and seizure without warrant. | ||||||
17 | An authorized employee of the Department may: (i) arrest | ||||||
18 | without warrant any person committing in the employee's | ||||||
19 | presence a violation of any of the provisions of this Article; | ||||||
20 | (ii) without a search warrant inspect all hemp concentrate | ||||||
21 | derived products located in any place of business; (iii) seize | ||||||
22 | any hemp concentrate derived products in the possession of the | ||||||
23 | retailer in violation of this Act; and (iv) seize any hemp | ||||||
24 | concentrate derived products on which the tax imposed by | ||||||
25 | Article 50 of this Act has not been paid. Hemp concentrate |
| |||||||
| |||||||
1 | derived products seized under this Section are subject to | ||||||
2 | confiscation and forfeiture as provided in Sections 55-65 and | ||||||
3 | 55-70. | ||||||
4 | Section 55-65. Seizure and forfeiture. | ||||||
5 | (a) After seizing any hemp concentrate derived products as | ||||||
6 | provided in Section 55-60, the Department must hold a hearing | ||||||
7 | and determine whether the retailer was properly registered to | ||||||
8 | sell the hemp concentrate derived products at the time of its | ||||||
9 | seizure by the Department. The Department shall give not less | ||||||
10 | than 20 days' notice of the time and place of the hearing to | ||||||
11 | the owner of the hemp concentrate derived products, if the | ||||||
12 | owner is known, and also to the person in whose possession the | ||||||
13 | hemp concentrate derived products was found, if that person is | ||||||
14 | known and if the person in possession is not the owner of the | ||||||
15 | hemp concentrate derived products. If neither the owner nor | ||||||
16 | the person in possession of the hemp concentrate derived | ||||||
17 | products is known, the Department must cause publication of | ||||||
18 | the time and place of the hearing to be made at least once in | ||||||
19 | each week for 3 weeks successively in a newspaper of general | ||||||
20 | circulation in the county where the hearing is to be held. | ||||||
21 | (b) If, as the result of the hearing, the Department | ||||||
22 | determines that the retailer was not properly registered at | ||||||
23 | the time the hemp concentrate derived products was seized, the | ||||||
24 | Department must enter an order declaring the hemp concentrate | ||||||
25 | derived products confiscated and forfeited to the State, to be |
| |||||||
| |||||||
1 | held by the Department for disposal by it as provided in | ||||||
2 | Section 55-70. The Department must give notice of the order to | ||||||
3 | the owner of the hemp concentrate derived products, if the | ||||||
4 | owner is known, and also to the person in whose possession the | ||||||
5 | hemp concentrate derived products was found, if that person is | ||||||
6 | known and if the person in possession is not the owner of the | ||||||
7 | hemp concentrate derived products. If neither the owner nor | ||||||
8 | the person in possession of the hemp concentrate derived | ||||||
9 | products is known, the Department must cause publication of | ||||||
10 | the order to be made at least once in each week for 3 weeks | ||||||
11 | successively in a newspaper of general circulation in the | ||||||
12 | county where the hearing was held. | ||||||
13 | Section 55-70. Search warrant; issuance and return; | ||||||
14 | process; confiscation of hemp concentrate derived products; | ||||||
15 | forfeitures. | ||||||
16 | (a) If a peace officer of this State or an authorized | ||||||
17 | officer or employee of the Department has reason to believe | ||||||
18 | that any violation of this Article or a rule of the Department | ||||||
19 | for the administration and enforcement of this Article has | ||||||
20 | occurred and that the person violating this Article or rule | ||||||
21 | has in that person's possession any hemp concentrate derived | ||||||
22 | products in violation of this Article or a rule of the | ||||||
23 | Department for the administration and enforcement of this | ||||||
24 | Article, that peace officer or officer or employee of the | ||||||
25 | Department may file or cause to be filed his or her complaint |
| |||||||
| |||||||
1 | in writing, verified by affidavit, with any court within whose | ||||||
2 | jurisdiction the premises to be searched are situated stating | ||||||
3 | the facts upon which the belief is founded, the premises to be | ||||||
4 | searched, and the property to be seized, and the peace officer | ||||||
5 | or officer or employee of the Department may procure a search | ||||||
6 | warrant and execute that warrant. Upon the execution of the | ||||||
7 | search warrant, the peace officer or officer or employee of | ||||||
8 | the Department executing the search warrant shall make due | ||||||
9 | return of the warrant to the court issuing the warrant, | ||||||
10 | together with an inventory of the property taken under the | ||||||
11 | warrant. The court must then issue process against the owner | ||||||
12 | of the property if the owner is known; otherwise, process must | ||||||
13 | be issued against the person in whose possession the property | ||||||
14 | is found, if that person is known. In case of inability to | ||||||
15 | serve process upon the owner or the person in possession of the | ||||||
16 | property at the time of its seizure, notice of the proceedings | ||||||
17 | before the court must be given in the same manner as required | ||||||
18 | by the law governing cases of attachment. Upon the return of | ||||||
19 | the process duly served or upon the posting or publishing of | ||||||
20 | notice made, as appropriate, the court or jury, if a jury is | ||||||
21 | demanded, shall proceed to determine whether the property so | ||||||
22 | seized was held or possessed in violation of this Article or a | ||||||
23 | rule of the Department for the administration and enforcement | ||||||
24 | of this Article. If a violation is found, judgment shall be | ||||||
25 | entered confiscating the property and forfeiting it to the | ||||||
26 | State and ordering its delivery to the Department. In |
| |||||||
| |||||||
1 | addition, the court may tax and assess the costs of the | ||||||
2 | proceedings. | ||||||
3 | (b) When any hemp concentrate derived products have been | ||||||
4 | declared forfeited to the State by the Department, as provided | ||||||
5 | in Section 55-65 and this Section, and, when all proceedings | ||||||
6 | for the judicial review of the Department's decision have | ||||||
7 | terminated, the Department shall, to the extent that its | ||||||
8 | decision is sustained on review, destroy or maintain and use | ||||||
9 | the hemp concentrate derived products in an undercover | ||||||
10 | capacity. | ||||||
11 | (c) The Department may, before any destruction of hemp | ||||||
12 | concentrate derived products, permit the holder of trademark | ||||||
13 | rights in the hemp concentrate derived products to inspect the | ||||||
14 | hemp concentrate derived products in order to assist the | ||||||
15 | Department in any investigation regarding the hemp concentrate | ||||||
16 | derived products. | ||||||
17 | Section 55-75. Hemp concentrate derived product retailers; | ||||||
18 | purchase and possession of hemp concentrate derived products. | ||||||
19 | Hemp concentrate derived product retailers shall purchase hemp | ||||||
20 | concentrate derived products for resale only from cannabis or | ||||||
21 | hemp business establishments as authorized by this Act. | ||||||
22 | Section 55-80. Rulemaking. The Department may adopt rules | ||||||
23 | in accordance with the Illinois Administrative Procedure Act | ||||||
24 | and prescribe forms relating to the administration and |
| |||||||
| |||||||
1 | enforcement of this Article as it deems appropriate. | ||||||
2 | Article 800. Amendatory Changes | ||||||
3 | Section 800-5. The Illinois Administrative Procedure Act | ||||||
4 | is amended by adding Section 5-45.55 as follows: | ||||||
5 | (5 ILCS 100/5-45.55 new) | ||||||
6 | Sec. 5-45.55. Emergency rulemaking; Hemp Cannabinoid | ||||||
7 | Products Act. To provide for the expeditious and timely | ||||||
8 | implementation of the Hemp Cannabinoid Products Act, emergency | ||||||
9 | rules implementing the Hemp Cannabinoid Products Act may be | ||||||
10 | adopted in accordance with Section 5-45 by the Department of | ||||||
11 | Agriculture. The adoption of emergency rules authorized by | ||||||
12 | Section 5-45 and this Section is deemed to be necessary for the | ||||||
13 | public interest, safety, and welfare. | ||||||
14 | This Section is repealed one year after the effective date | ||||||
15 | of this amendatory Act of the 103rd General Assembly. | ||||||
16 | Section 800-10. The Use Tax Act is amended by changing | ||||||
17 | Section 9 as follows: | ||||||
18 | (35 ILCS 105/9) (from Ch. 120, par. 439.9) | ||||||
19 | Sec. 9. Except as to motor vehicles, watercraft, aircraft, | ||||||
20 | and trailers that are required to be registered with an agency | ||||||
21 | of this State, each retailer required or authorized to collect |
| |||||||
| |||||||
1 | the tax imposed by this Act shall pay to the Department the | ||||||
2 | amount of such tax (except as otherwise provided) at the time | ||||||
3 | when he is required to file his return for the period during | ||||||
4 | which such tax was collected, less a discount of 2.1% prior to | ||||||
5 | January 1, 1990, and 1.75% on and after January 1, 1990, or $5 | ||||||
6 | per calendar year, whichever is greater, which is allowed to | ||||||
7 | reimburse the retailer for expenses incurred in collecting the | ||||||
8 | tax, keeping records, preparing and filing returns, remitting | ||||||
9 | the tax and supplying data to the Department on request. When | ||||||
10 | determining the discount allowed under this Section, retailers | ||||||
11 | shall include the amount of tax that would have been due at the | ||||||
12 | 6.25% rate but for the 1.25% rate imposed on sales tax holiday | ||||||
13 | items under Public Act 102-700. The discount under this | ||||||
14 | Section is not allowed for the 1.25% portion of taxes paid on | ||||||
15 | aviation fuel that is subject to the revenue use requirements | ||||||
16 | of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. When determining | ||||||
17 | the discount allowed under this Section, retailers shall | ||||||
18 | include the amount of tax that would have been due at the 1% | ||||||
19 | rate but for the 0% rate imposed under Public Act 102-700. In | ||||||
20 | the case of retailers who report and pay the tax on a | ||||||
21 | transaction by transaction basis, as provided in this Section, | ||||||
22 | such discount shall be taken with each such tax remittance | ||||||
23 | instead of when such retailer files his periodic return. The | ||||||
24 | discount allowed under this Section is allowed only for | ||||||
25 | returns that are filed in the manner required by this Act. The | ||||||
26 | Department may disallow the discount for retailers whose |
| |||||||
| |||||||
1 | certificate of registration is revoked at the time the return | ||||||
2 | is filed, but only if the Department's decision to revoke the | ||||||
3 | certificate of registration has become final. A retailer need | ||||||
4 | not remit that part of any tax collected by him to the extent | ||||||
5 | that he is required to remit and does remit the tax imposed by | ||||||
6 | the Retailers' Occupation Tax Act, with respect to the sale of | ||||||
7 | the same property. | ||||||
8 | Where such tangible personal property is sold under a | ||||||
9 | conditional sales contract, or under any other form of sale | ||||||
10 | wherein the payment of the principal sum, or a part thereof, is | ||||||
11 | extended beyond the close of the period for which the return is | ||||||
12 | filed, the retailer, in collecting the tax (except as to motor | ||||||
13 | vehicles, watercraft, aircraft, and trailers that are required | ||||||
14 | to be registered with an agency of this State), may collect for | ||||||
15 | each tax return period, only the tax applicable to that part of | ||||||
16 | the selling price actually received during such tax return | ||||||
17 | period. | ||||||
18 | Except as provided in this Section, on or before the | ||||||
19 | twentieth day of each calendar month, such retailer shall file | ||||||
20 | a return for the preceding calendar month. Such return shall | ||||||
21 | be filed on forms prescribed by the Department and shall | ||||||
22 | furnish such information as the Department may reasonably | ||||||
23 | require. The return shall include the gross receipts on food | ||||||
24 | for human consumption that is to be consumed off the premises | ||||||
25 | where it is sold (other than alcoholic beverages, food | ||||||
26 | consisting of or infused with adult use cannabis, soft drinks, |
| |||||||
| |||||||
1 | and food that has been prepared for immediate consumption) | ||||||
2 | which were received during the preceding calendar month, | ||||||
3 | quarter, or year, as appropriate, and upon which tax would | ||||||
4 | have been due but for the 0% rate imposed under Public Act | ||||||
5 | 102-700. The return shall also include the amount of tax that | ||||||
6 | would have been due on food for human consumption that is to be | ||||||
7 | consumed off the premises where it is sold (other than | ||||||
8 | alcoholic beverages, food consisting of or infused with adult | ||||||
9 | use cannabis, soft drinks, and food that has been prepared for | ||||||
10 | immediate consumption) but for the 0% rate imposed under | ||||||
11 | Public Act 102-700. | ||||||
12 | On and after January 1, 2018, except for returns required | ||||||
13 | to be filed prior to January 1, 2023 for motor vehicles, | ||||||
14 | watercraft, aircraft, and trailers that are required to be | ||||||
15 | registered with an agency of this State, with respect to | ||||||
16 | retailers whose annual gross receipts average $20,000 or more, | ||||||
17 | all returns required to be filed pursuant to this Act shall be | ||||||
18 | filed electronically. On and after January 1, 2023, with | ||||||
19 | respect to retailers whose annual gross receipts average | ||||||
20 | $20,000 or more, all returns required to be filed pursuant to | ||||||
21 | this Act, including, but not limited to, returns for motor | ||||||
22 | vehicles, watercraft, aircraft, and trailers that are required | ||||||
23 | to be registered with an agency of this State, shall be filed | ||||||
24 | electronically. Retailers who demonstrate that they do not | ||||||
25 | have access to the Internet or demonstrate hardship in filing | ||||||
26 | electronically may petition the Department to waive the |
| |||||||
| |||||||
1 | electronic filing requirement. | ||||||
2 | The Department may require returns to be filed on a | ||||||
3 | quarterly basis. If so required, a return for each calendar | ||||||
4 | quarter shall be filed on or before the twentieth day of the | ||||||
5 | calendar month following the end of such calendar quarter. The | ||||||
6 | taxpayer shall also file a return with the Department for each | ||||||
7 | of the first two months of each calendar quarter, on or before | ||||||
8 | the twentieth day of the following calendar month, stating: | ||||||
9 | 1. The name of the seller; | ||||||
10 | 2. The address of the principal place of business from | ||||||
11 | which he engages in the business of selling tangible | ||||||
12 | personal property at retail in this State; | ||||||
13 | 3. The total amount of taxable receipts received by | ||||||
14 | him during the preceding calendar month from sales of | ||||||
15 | tangible personal property by him during such preceding | ||||||
16 | calendar month, including receipts from charge and time | ||||||
17 | sales, but less all deductions allowed by law; | ||||||
18 | 4. The amount of credit provided in Section 2d of this | ||||||
19 | Act; | ||||||
20 | 5. The amount of tax due; | ||||||
21 | 5-5. The signature of the taxpayer; and | ||||||
22 | 6. Such other reasonable information as the Department | ||||||
23 | may require. | ||||||
24 | Each retailer required or authorized to collect the tax | ||||||
25 | imposed by this Act on aviation fuel sold at retail in this | ||||||
26 | State during the preceding calendar month shall, instead of |
| |||||||
| |||||||
1 | reporting and paying tax on aviation fuel as otherwise | ||||||
2 | required by this Section, report and pay such tax on a separate | ||||||
3 | aviation fuel tax return. The requirements related to the | ||||||
4 | return shall be as otherwise provided in this Section. | ||||||
5 | Notwithstanding any other provisions of this Act to the | ||||||
6 | contrary, retailers collecting tax on aviation fuel shall file | ||||||
7 | all aviation fuel tax returns and shall make all aviation fuel | ||||||
8 | tax payments by electronic means in the manner and form | ||||||
9 | required by the Department. For purposes of this Section, | ||||||
10 | "aviation fuel" means jet fuel and aviation gasoline. | ||||||
11 | If a taxpayer fails to sign a return within 30 days after | ||||||
12 | the proper notice and demand for signature by the Department, | ||||||
13 | the return shall be considered valid and any amount shown to be | ||||||
14 | due on the return shall be deemed assessed. | ||||||
15 | Notwithstanding any other provision of this Act to the | ||||||
16 | contrary, retailers subject to tax on cannabis shall file all | ||||||
17 | cannabis tax returns and shall make all cannabis tax payments | ||||||
18 | by electronic means in the manner and form required by the | ||||||
19 | Department. | ||||||
20 | Notwithstanding any other provision of this Act to the | ||||||
21 | contrary, retailers subject to tax on hemp concentrate, | ||||||
22 | intermediate hemp products, or hemp concentrate derived | ||||||
23 | products shall file all tax returns and shall make all tax | ||||||
24 | payments on hemp concentrate, intermediate hemp products, and | ||||||
25 | hemp concentrate derived products by electronic means in the | ||||||
26 | manner and form required by the Department. |
| |||||||
| |||||||
1 | Beginning October 1, 1993, a taxpayer who has an average | ||||||
2 | monthly tax liability of $150,000 or more shall make all | ||||||
3 | payments required by rules of the Department by electronic | ||||||
4 | funds transfer. Beginning October 1, 1994, a taxpayer who has | ||||||
5 | an average monthly tax liability of $100,000 or more shall | ||||||
6 | make all payments required by rules of the Department by | ||||||
7 | electronic funds transfer. Beginning October 1, 1995, a | ||||||
8 | taxpayer who has an average monthly tax liability of $50,000 | ||||||
9 | or more shall make all payments required by rules of the | ||||||
10 | Department by electronic funds transfer. Beginning October 1, | ||||||
11 | 2000, a taxpayer who has an annual tax liability of $200,000 or | ||||||
12 | more shall make all payments required by rules of the | ||||||
13 | Department by electronic funds transfer. The term "annual tax | ||||||
14 | liability" shall be the sum of the taxpayer's liabilities | ||||||
15 | under this Act, and under all other State and local occupation | ||||||
16 | and use tax laws administered by the Department, for the | ||||||
17 | immediately preceding calendar year. The term "average monthly | ||||||
18 | tax liability" means the sum of the taxpayer's liabilities | ||||||
19 | under this Act, and under all other State and local occupation | ||||||
20 | and use tax laws administered by the Department, for the | ||||||
21 | immediately preceding calendar year divided by 12. Beginning | ||||||
22 | on October 1, 2002, a taxpayer who has a tax liability in the | ||||||
23 | amount set forth in subsection (b) of Section 2505-210 of the | ||||||
24 | Department of Revenue Law shall make all payments required by | ||||||
25 | rules of the Department by electronic funds transfer. | ||||||
26 | Before August 1 of each year beginning in 1993, the |
| |||||||
| |||||||
1 | Department shall notify all taxpayers required to make | ||||||
2 | payments by electronic funds transfer. All taxpayers required | ||||||
3 | to make payments by electronic funds transfer shall make those | ||||||
4 | payments for a minimum of one year beginning on October 1. | ||||||
5 | Any taxpayer not required to make payments by electronic | ||||||
6 | funds transfer may make payments by electronic funds transfer | ||||||
7 | with the permission of the Department. | ||||||
8 | All taxpayers required to make payment by electronic funds | ||||||
9 | transfer and any taxpayers authorized to voluntarily make | ||||||
10 | payments by electronic funds transfer shall make those | ||||||
11 | payments in the manner authorized by the Department. | ||||||
12 | The Department shall adopt such rules as are necessary to | ||||||
13 | effectuate a program of electronic funds transfer and the | ||||||
14 | requirements of this Section. | ||||||
15 | Before October 1, 2000, if the taxpayer's average monthly | ||||||
16 | tax liability to the Department under this Act, the Retailers' | ||||||
17 | Occupation Tax Act, the Service Occupation Tax Act, the | ||||||
18 | Service Use Tax Act was $10,000 or more during the preceding 4 | ||||||
19 | complete calendar quarters, he shall file a return with the | ||||||
20 | Department each month by the 20th day of the month next | ||||||
21 | following the month during which such tax liability is | ||||||
22 | incurred and shall make payments to the Department on or | ||||||
23 | before the 7th, 15th, 22nd and last day of the month during | ||||||
24 | which such liability is incurred. On and after October 1, | ||||||
25 | 2000, if the taxpayer's average monthly tax liability to the | ||||||
26 | Department under this Act, the Retailers' Occupation Tax Act, |
| |||||||
| |||||||
1 | the Service Occupation Tax Act, and the Service Use Tax Act was | ||||||
2 | $20,000 or more during the preceding 4 complete calendar | ||||||
3 | quarters, he shall file a return with the Department each | ||||||
4 | month by the 20th day of the month next following the month | ||||||
5 | during which such tax liability is incurred and shall make | ||||||
6 | payment to the Department on or before the 7th, 15th, 22nd and | ||||||
7 | last day of the month during which such liability is incurred. | ||||||
8 | If the month during which such tax liability is incurred began | ||||||
9 | prior to January 1, 1985, each payment shall be in an amount | ||||||
10 | equal to 1/4 of the taxpayer's actual liability for the month | ||||||
11 | or an amount set by the Department not to exceed 1/4 of the | ||||||
12 | average monthly liability of the taxpayer to the Department | ||||||
13 | for the preceding 4 complete calendar quarters (excluding the | ||||||
14 | month of highest liability and the month of lowest liability | ||||||
15 | in such 4 quarter period). If the month during which such tax | ||||||
16 | liability is incurred begins on or after January 1, 1985, and | ||||||
17 | prior to January 1, 1987, each payment shall be in an amount | ||||||
18 | equal to 22.5% of the taxpayer's actual liability for the | ||||||
19 | month or 27.5% of the taxpayer's liability for the same | ||||||
20 | calendar month of the preceding year. If the month during | ||||||
21 | which such tax liability is incurred begins on or after | ||||||
22 | January 1, 1987, and prior to January 1, 1988, each payment | ||||||
23 | shall be in an amount equal to 22.5% of the taxpayer's actual | ||||||
24 | liability for the month or 26.25% of the taxpayer's liability | ||||||
25 | for the same calendar month of the preceding year. If the month | ||||||
26 | during which such tax liability is incurred begins on or after |
| |||||||
| |||||||
1 | January 1, 1988, and prior to January 1, 1989, or begins on or | ||||||
2 | after January 1, 1996, each payment shall be in an amount equal | ||||||
3 | to 22.5% of the taxpayer's actual liability for the month or | ||||||
4 | 25% of the taxpayer's liability for the same calendar month of | ||||||
5 | the preceding year. If the month during which such tax | ||||||
6 | liability is incurred begins on or after January 1, 1989, and | ||||||
7 | prior to January 1, 1996, each payment shall be in an amount | ||||||
8 | equal to 22.5% of the taxpayer's actual liability for the | ||||||
9 | month or 25% of the taxpayer's liability for the same calendar | ||||||
10 | month of the preceding year or 100% of the taxpayer's actual | ||||||
11 | liability for the quarter monthly reporting period. The amount | ||||||
12 | of such quarter monthly payments shall be credited against the | ||||||
13 | final tax liability of the taxpayer's return for that month. | ||||||
14 | Before October 1, 2000, once applicable, the requirement of | ||||||
15 | the making of quarter monthly payments to the Department shall | ||||||
16 | continue until such taxpayer's average monthly liability to | ||||||
17 | the Department during the preceding 4 complete calendar | ||||||
18 | quarters (excluding the month of highest liability and the | ||||||
19 | month of lowest liability) is less than $9,000, or until such | ||||||
20 | taxpayer's average monthly liability to the Department as | ||||||
21 | computed for each calendar quarter of the 4 preceding complete | ||||||
22 | calendar quarter period is less than $10,000. However, if a | ||||||
23 | taxpayer can show the Department that a substantial change in | ||||||
24 | the taxpayer's business has occurred which causes the taxpayer | ||||||
25 | to anticipate that his average monthly tax liability for the | ||||||
26 | reasonably foreseeable future will fall below the $10,000 |
| |||||||
| |||||||
1 | threshold stated above, then such taxpayer may petition the | ||||||
2 | Department for change in such taxpayer's reporting status. On | ||||||
3 | and after October 1, 2000, once applicable, the requirement of | ||||||
4 | the making of quarter monthly payments to the Department shall | ||||||
5 | continue until such taxpayer's average monthly liability to | ||||||
6 | the Department during the preceding 4 complete calendar | ||||||
7 | quarters (excluding the month of highest liability and the | ||||||
8 | month of lowest liability) is less than $19,000 or until such | ||||||
9 | taxpayer's average monthly liability to the Department as | ||||||
10 | computed for each calendar quarter of the 4 preceding complete | ||||||
11 | calendar quarter period is less than $20,000. However, if a | ||||||
12 | taxpayer can show the Department that a substantial change in | ||||||
13 | the taxpayer's business has occurred which causes the taxpayer | ||||||
14 | to anticipate that his average monthly tax liability for the | ||||||
15 | reasonably foreseeable future will fall below the $20,000 | ||||||
16 | threshold stated above, then such taxpayer may petition the | ||||||
17 | Department for a change in such taxpayer's reporting status. | ||||||
18 | The Department shall change such taxpayer's reporting status | ||||||
19 | unless it finds that such change is seasonal in nature and not | ||||||
20 | likely to be long term. Quarter monthly payment status shall | ||||||
21 | be determined under this paragraph as if the rate reduction to | ||||||
22 | 1.25% in Public Act 102-700 on sales tax holiday items had not | ||||||
23 | occurred. For quarter monthly payments due on or after July 1, | ||||||
24 | 2023 and through June 30, 2024, "25% of the taxpayer's | ||||||
25 | liability for the same calendar month of the preceding year" | ||||||
26 | shall be determined as if the rate reduction to 1.25% in Public |
| |||||||
| |||||||
1 | Act 102-700 on sales tax holiday items had not occurred. | ||||||
2 | Quarter monthly payment status shall be determined under this | ||||||
3 | paragraph as if the rate reduction to 0% in Public Act 102-700 | ||||||
4 | on food for human consumption that is to be consumed off the | ||||||
5 | premises where it is sold (other than alcoholic beverages, | ||||||
6 | food consisting of or infused with adult use cannabis, soft | ||||||
7 | drinks, and food that has been prepared for immediate | ||||||
8 | consumption) had not occurred. For quarter monthly payments | ||||||
9 | due under this paragraph on or after July 1, 2023 and through | ||||||
10 | June 30, 2024, "25% of the taxpayer's liability for the same | ||||||
11 | calendar month of the preceding year" shall be determined as | ||||||
12 | if the rate reduction to 0% in Public Act 102-700 had not | ||||||
13 | occurred. If any such quarter monthly payment is not paid at | ||||||
14 | the time or in the amount required by this Section, then the | ||||||
15 | taxpayer shall be liable for penalties and interest on the | ||||||
16 | difference between the minimum amount due and the amount of | ||||||
17 | such quarter monthly payment actually and timely paid, except | ||||||
18 | insofar as the taxpayer has previously made payments for that | ||||||
19 | month to the Department in excess of the minimum payments | ||||||
20 | previously due as provided in this Section. The Department | ||||||
21 | shall make reasonable rules and regulations to govern the | ||||||
22 | quarter monthly payment amount and quarter monthly payment | ||||||
23 | dates for taxpayers who file on other than a calendar monthly | ||||||
24 | basis. | ||||||
25 | If any such payment provided for in this Section exceeds | ||||||
26 | the taxpayer's liabilities under this Act, the Retailers' |
| |||||||
| |||||||
1 | Occupation Tax Act, the Service Occupation Tax Act and the | ||||||
2 | Service Use Tax Act, as shown by an original monthly return, | ||||||
3 | the Department shall issue to the taxpayer a credit memorandum | ||||||
4 | no later than 30 days after the date of payment, which | ||||||
5 | memorandum may be submitted by the taxpayer to the Department | ||||||
6 | in payment of tax liability subsequently to be remitted by the | ||||||
7 | taxpayer to the Department or be assigned by the taxpayer to a | ||||||
8 | similar taxpayer under this Act, the Retailers' Occupation Tax | ||||||
9 | Act, the Service Occupation Tax Act or the Service Use Tax Act, | ||||||
10 | in accordance with reasonable rules and regulations to be | ||||||
11 | prescribed by the Department, except that if such excess | ||||||
12 | payment is shown on an original monthly return and is made | ||||||
13 | after December 31, 1986, no credit memorandum shall be issued, | ||||||
14 | unless requested by the taxpayer. If no such request is made, | ||||||
15 | the taxpayer may credit such excess payment against tax | ||||||
16 | liability subsequently to be remitted by the taxpayer to the | ||||||
17 | Department under this Act, the Retailers' Occupation Tax Act, | ||||||
18 | the Service Occupation Tax Act or the Service Use Tax Act, in | ||||||
19 | accordance with reasonable rules and regulations prescribed by | ||||||
20 | the Department. If the Department subsequently determines that | ||||||
21 | all or any part of the credit taken was not actually due to the | ||||||
22 | taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall | ||||||
23 | be reduced by 2.1% or 1.75% of the difference between the | ||||||
24 | credit taken and that actually due, and the taxpayer shall be | ||||||
25 | liable for penalties and interest on such difference. | ||||||
26 | If the retailer is otherwise required to file a monthly |
| |||||||
| |||||||
1 | return and if the retailer's average monthly tax liability to | ||||||
2 | the Department does not exceed $200, the Department may | ||||||
3 | authorize his returns to be filed on a quarter annual basis, | ||||||
4 | with the return for January, February, and March of a given | ||||||
5 | year being due by April 20 of such year; with the return for | ||||||
6 | April, May and June of a given year being due by July 20 of | ||||||
7 | such year; with the return for July, August and September of a | ||||||
8 | given year being due by October 20 of such year, and with the | ||||||
9 | return for October, November and December of a given year | ||||||
10 | being due by January 20 of the following year. | ||||||
11 | If the retailer is otherwise required to file a monthly or | ||||||
12 | quarterly return and if the retailer's average monthly tax | ||||||
13 | liability to the Department does not exceed $50, the | ||||||
14 | Department may authorize his returns to be filed on an annual | ||||||
15 | basis, with the return for a given year being due by January 20 | ||||||
16 | of the following year. | ||||||
17 | Such quarter annual and annual returns, as to form and | ||||||
18 | substance, shall be subject to the same requirements as | ||||||
19 | monthly returns. | ||||||
20 | Notwithstanding any other provision in this Act concerning | ||||||
21 | the time within which a retailer may file his return, in the | ||||||
22 | case of any retailer who ceases to engage in a kind of business | ||||||
23 | which makes him responsible for filing returns under this Act, | ||||||
24 | such retailer shall file a final return under this Act with the | ||||||
25 | Department not more than one month after discontinuing such | ||||||
26 | business. |
| |||||||
| |||||||
1 | In addition, with respect to motor vehicles, watercraft, | ||||||
2 | aircraft, and trailers that are required to be registered with | ||||||
3 | an agency of this State, except as otherwise provided in this | ||||||
4 | Section, every retailer selling this kind of tangible personal | ||||||
5 | property shall file, with the Department, upon a form to be | ||||||
6 | prescribed and supplied by the Department, a separate return | ||||||
7 | for each such item of tangible personal property which the | ||||||
8 | retailer sells, except that if, in the same transaction, (i) a | ||||||
9 | retailer of aircraft, watercraft, motor vehicles or trailers | ||||||
10 | transfers more than one aircraft, watercraft, motor vehicle or | ||||||
11 | trailer to another aircraft, watercraft, motor vehicle or | ||||||
12 | trailer retailer for the purpose of resale or (ii) a retailer | ||||||
13 | of aircraft, watercraft, motor vehicles, or trailers transfers | ||||||
14 | more than one aircraft, watercraft, motor vehicle, or trailer | ||||||
15 | to a purchaser for use as a qualifying rolling stock as | ||||||
16 | provided in Section 3-55 of this Act, then that seller may | ||||||
17 | report the transfer of all the aircraft, watercraft, motor | ||||||
18 | vehicles or trailers involved in that transaction to the | ||||||
19 | Department on the same uniform invoice-transaction reporting | ||||||
20 | return form. For purposes of this Section, "watercraft" means | ||||||
21 | a Class 2, Class 3, or Class 4 watercraft as defined in Section | ||||||
22 | 3-2 of the Boat Registration and Safety Act, a personal | ||||||
23 | watercraft, or any boat equipped with an inboard motor. | ||||||
24 | In addition, with respect to motor vehicles, watercraft, | ||||||
25 | aircraft, and trailers that are required to be registered with | ||||||
26 | an agency of this State, every person who is engaged in the |
| |||||||
| |||||||
1 | business of leasing or renting such items and who, in | ||||||
2 | connection with such business, sells any such item to a | ||||||
3 | retailer for the purpose of resale is, notwithstanding any | ||||||
4 | other provision of this Section to the contrary, authorized to | ||||||
5 | meet the return-filing requirement of this Act by reporting | ||||||
6 | the transfer of all the aircraft, watercraft, motor vehicles, | ||||||
7 | or trailers transferred for resale during a month to the | ||||||
8 | Department on the same uniform invoice-transaction reporting | ||||||
9 | return form on or before the 20th of the month following the | ||||||
10 | month in which the transfer takes place. Notwithstanding any | ||||||
11 | other provision of this Act to the contrary, all returns filed | ||||||
12 | under this paragraph must be filed by electronic means in the | ||||||
13 | manner and form as required by the Department. | ||||||
14 | The transaction reporting return in the case of motor | ||||||
15 | vehicles or trailers that are required to be registered with | ||||||
16 | an agency of this State, shall be the same document as the | ||||||
17 | Uniform Invoice referred to in Section 5-402 of the Illinois | ||||||
18 | Vehicle Code and must show the name and address of the seller; | ||||||
19 | the name and address of the purchaser; the amount of the | ||||||
20 | selling price including the amount allowed by the retailer for | ||||||
21 | traded-in property, if any; the amount allowed by the retailer | ||||||
22 | for the traded-in tangible personal property, if any, to the | ||||||
23 | extent to which Section 2 of this Act allows an exemption for | ||||||
24 | the value of traded-in property; the balance payable after | ||||||
25 | deducting such trade-in allowance from the total selling | ||||||
26 | price; the amount of tax due from the retailer with respect to |
| |||||||
| |||||||
1 | such transaction; the amount of tax collected from the | ||||||
2 | purchaser by the retailer on such transaction (or satisfactory | ||||||
3 | evidence that such tax is not due in that particular instance, | ||||||
4 | if that is claimed to be the fact); the place and date of the | ||||||
5 | sale; a sufficient identification of the property sold; such | ||||||
6 | other information as is required in Section 5-402 of the | ||||||
7 | Illinois Vehicle Code, and such other information as the | ||||||
8 | Department may reasonably require. | ||||||
9 | The transaction reporting return in the case of watercraft | ||||||
10 | and aircraft must show the name and address of the seller; the | ||||||
11 | name and address of the purchaser; the amount of the selling | ||||||
12 | price including the amount allowed by the retailer for | ||||||
13 | traded-in property, if any; the amount allowed by the retailer | ||||||
14 | for the traded-in tangible personal property, if any, to the | ||||||
15 | extent to which Section 2 of this Act allows an exemption for | ||||||
16 | the value of traded-in property; the balance payable after | ||||||
17 | deducting such trade-in allowance from the total selling | ||||||
18 | price; the amount of tax due from the retailer with respect to | ||||||
19 | such transaction; the amount of tax collected from the | ||||||
20 | purchaser by the retailer on such transaction (or satisfactory | ||||||
21 | evidence that such tax is not due in that particular instance, | ||||||
22 | if that is claimed to be the fact); the place and date of the | ||||||
23 | sale, a sufficient identification of the property sold, and | ||||||
24 | such other information as the Department may reasonably | ||||||
25 | require. | ||||||
26 | Such transaction reporting return shall be filed not later |
| |||||||
| |||||||
1 | than 20 days after the date of delivery of the item that is | ||||||
2 | being sold, but may be filed by the retailer at any time sooner | ||||||
3 | than that if he chooses to do so. The transaction reporting | ||||||
4 | return and tax remittance or proof of exemption from the tax | ||||||
5 | that is imposed by this Act may be transmitted to the | ||||||
6 | Department by way of the State agency with which, or State | ||||||
7 | officer with whom, the tangible personal property must be | ||||||
8 | titled or registered (if titling or registration is required) | ||||||
9 | if the Department and such agency or State officer determine | ||||||
10 | that this procedure will expedite the processing of | ||||||
11 | applications for title or registration. | ||||||
12 | With each such transaction reporting return, the retailer | ||||||
13 | shall remit the proper amount of tax due (or shall submit | ||||||
14 | satisfactory evidence that the sale is not taxable if that is | ||||||
15 | the case), to the Department or its agents, whereupon the | ||||||
16 | Department shall issue, in the purchaser's name, a tax receipt | ||||||
17 | (or a certificate of exemption if the Department is satisfied | ||||||
18 | that the particular sale is tax exempt) which such purchaser | ||||||
19 | may submit to the agency with which, or State officer with | ||||||
20 | whom, he must title or register the tangible personal property | ||||||
21 | that is involved (if titling or registration is required) in | ||||||
22 | support of such purchaser's application for an Illinois | ||||||
23 | certificate or other evidence of title or registration to such | ||||||
24 | tangible personal property. | ||||||
25 | No retailer's failure or refusal to remit tax under this | ||||||
26 | Act precludes a user, who has paid the proper tax to the |
| |||||||
| |||||||
1 | retailer, from obtaining his certificate of title or other | ||||||
2 | evidence of title or registration (if titling or registration | ||||||
3 | is required) upon satisfying the Department that such user has | ||||||
4 | paid the proper tax (if tax is due) to the retailer. The | ||||||
5 | Department shall adopt appropriate rules to carry out the | ||||||
6 | mandate of this paragraph. | ||||||
7 | If the user who would otherwise pay tax to the retailer | ||||||
8 | wants the transaction reporting return filed and the payment | ||||||
9 | of tax or proof of exemption made to the Department before the | ||||||
10 | retailer is willing to take these actions and such user has not | ||||||
11 | paid the tax to the retailer, such user may certify to the fact | ||||||
12 | of such delay by the retailer, and may (upon the Department | ||||||
13 | being satisfied of the truth of such certification) transmit | ||||||
14 | the information required by the transaction reporting return | ||||||
15 | and the remittance for tax or proof of exemption directly to | ||||||
16 | the Department and obtain his tax receipt or exemption | ||||||
17 | determination, in which event the transaction reporting return | ||||||
18 | and tax remittance (if a tax payment was required) shall be | ||||||
19 | credited by the Department to the proper retailer's account | ||||||
20 | with the Department, but without the 2.1% or 1.75% discount | ||||||
21 | provided for in this Section being allowed. When the user pays | ||||||
22 | the tax directly to the Department, he shall pay the tax in the | ||||||
23 | same amount and in the same form in which it would be remitted | ||||||
24 | if the tax had been remitted to the Department by the retailer. | ||||||
25 | Where a retailer collects the tax with respect to the | ||||||
26 | selling price of tangible personal property which he sells and |
| |||||||
| |||||||
1 | the purchaser thereafter returns such tangible personal | ||||||
2 | property and the retailer refunds the selling price thereof to | ||||||
3 | the purchaser, such retailer shall also refund, to the | ||||||
4 | purchaser, the tax so collected from the purchaser. When | ||||||
5 | filing his return for the period in which he refunds such tax | ||||||
6 | to the purchaser, the retailer may deduct the amount of the tax | ||||||
7 | so refunded by him to the purchaser from any other use tax | ||||||
8 | which such retailer may be required to pay or remit to the | ||||||
9 | Department, as shown by such return, if the amount of the tax | ||||||
10 | to be deducted was previously remitted to the Department by | ||||||
11 | such retailer. If the retailer has not previously remitted the | ||||||
12 | amount of such tax to the Department, he is entitled to no | ||||||
13 | deduction under this Act upon refunding such tax to the | ||||||
14 | purchaser. | ||||||
15 | Any retailer filing a return under this Section shall also | ||||||
16 | include (for the purpose of paying tax thereon) the total tax | ||||||
17 | covered by such return upon the selling price of tangible | ||||||
18 | personal property purchased by him at retail from a retailer, | ||||||
19 | but as to which the tax imposed by this Act was not collected | ||||||
20 | from the retailer filing such return, and such retailer shall | ||||||
21 | remit the amount of such tax to the Department when filing such | ||||||
22 | return. | ||||||
23 | If experience indicates such action to be practicable, the | ||||||
24 | Department may prescribe and furnish a combination or joint | ||||||
25 | return which will enable retailers, who are required to file | ||||||
26 | returns hereunder and also under the Retailers' Occupation Tax |
| |||||||
| |||||||
1 | Act, to furnish all the return information required by both | ||||||
2 | Acts on the one form. | ||||||
3 | Where the retailer has more than one business registered | ||||||
4 | with the Department under separate registration under this | ||||||
5 | Act, such retailer may not file each return that is due as a | ||||||
6 | single return covering all such registered businesses, but | ||||||
7 | shall file separate returns for each such registered business. | ||||||
8 | Beginning January 1, 1990, each month the Department shall | ||||||
9 | pay into the State and Local Sales Tax Reform Fund, a special | ||||||
10 | fund in the State Treasury which is hereby created, the net | ||||||
11 | revenue realized for the preceding month from the 1% tax | ||||||
12 | imposed under this Act. | ||||||
13 | Beginning January 1, 1990, each month the Department shall | ||||||
14 | pay into the County and Mass Transit District Fund 4% of the | ||||||
15 | net revenue realized for the preceding month from the 6.25% | ||||||
16 | general rate on the selling price of tangible personal | ||||||
17 | property which is purchased outside Illinois at retail from a | ||||||
18 | retailer and which is titled or registered by an agency of this | ||||||
19 | State's government. | ||||||
20 | Beginning January 1, 1990, each month the Department shall | ||||||
21 | pay into the State and Local Sales Tax Reform Fund, a special | ||||||
22 | fund in the State Treasury, 20% of the net revenue realized for | ||||||
23 | the preceding month from the 6.25% general rate on the selling | ||||||
24 | price of tangible personal property, other than (i) tangible | ||||||
25 | personal property which is purchased outside Illinois at | ||||||
26 | retail from a retailer and which is titled or registered by an |
| |||||||
| |||||||
1 | agency of this State's government and (ii) aviation fuel sold | ||||||
2 | on or after December 1, 2019. This exception for aviation fuel | ||||||
3 | only applies for so long as the revenue use requirements of 49 | ||||||
4 | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State. | ||||||
5 | For aviation fuel sold on or after December 1, 2019, each | ||||||
6 | month the Department shall pay into the State Aviation Program | ||||||
7 | Fund 20% of the net revenue realized for the preceding month | ||||||
8 | from the 6.25% general rate on the selling price of aviation | ||||||
9 | fuel, less an amount estimated by the Department to be | ||||||
10 | required for refunds of the 20% portion of the tax on aviation | ||||||
11 | fuel under this Act, which amount shall be deposited into the | ||||||
12 | Aviation Fuel Sales Tax Refund Fund. The Department shall only | ||||||
13 | pay moneys into the State Aviation Program Fund and the | ||||||
14 | Aviation Fuels Sales Tax Refund Fund under this Act for so long | ||||||
15 | as the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
16 | U.S.C. 47133 are binding on the State. | ||||||
17 | Beginning August 1, 2000, each month the Department shall | ||||||
18 | pay into the State and Local Sales Tax Reform Fund 100% of the | ||||||
19 | net revenue realized for the preceding month from the 1.25% | ||||||
20 | rate on the selling price of motor fuel and gasohol. If, in any | ||||||
21 | month, the tax on sales tax holiday items, as defined in | ||||||
22 | Section 3-6, is imposed at the rate of 1.25%, then the | ||||||
23 | Department shall pay 100% of the net revenue realized for that | ||||||
24 | month from the 1.25% rate on the selling price of sales tax | ||||||
25 | holiday items into the State and Local Sales Tax Reform Fund. | ||||||
26 | Beginning January 1, 1990, each month the Department shall |
| |||||||
| |||||||
1 | pay into the Local Government Tax Fund 16% of the net revenue | ||||||
2 | realized for the preceding month from the 6.25% general rate | ||||||
3 | on the selling price of tangible personal property which is | ||||||
4 | purchased outside Illinois at retail from a retailer and which | ||||||
5 | is titled or registered by an agency of this State's | ||||||
6 | government. | ||||||
7 | Beginning October 1, 2009, each month the Department shall | ||||||
8 | pay into the Capital Projects Fund an amount that is equal to | ||||||
9 | an amount estimated by the Department to represent 80% of the | ||||||
10 | net revenue realized for the preceding month from the sale of | ||||||
11 | candy, grooming and hygiene products, and soft drinks that had | ||||||
12 | been taxed at a rate of 1% prior to September 1, 2009 but that | ||||||
13 | are now taxed at 6.25%. | ||||||
14 | Beginning July 1, 2011, each month the Department shall | ||||||
15 | pay into the Clean Air Act Permit Fund 80% of the net revenue | ||||||
16 | realized for the preceding month from the 6.25% general rate | ||||||
17 | on the selling price of sorbents used in Illinois in the | ||||||
18 | process of sorbent injection as used to comply with the | ||||||
19 | Environmental Protection Act or the federal Clean Air Act, but | ||||||
20 | the total payment into the Clean Air Act Permit Fund under this | ||||||
21 | Act and the Retailers' Occupation Tax Act shall not exceed | ||||||
22 | $2,000,000 in any fiscal year. | ||||||
23 | Beginning July 1, 2013, each month the Department shall | ||||||
24 | pay into the Underground Storage Tank Fund from the proceeds | ||||||
25 | collected under this Act, the Service Use Tax Act, the Service | ||||||
26 | Occupation Tax Act, and the Retailers' Occupation Tax Act an |
| |||||||
| |||||||
1 | amount equal to the average monthly deficit in the Underground | ||||||
2 | Storage Tank Fund during the prior year, as certified annually | ||||||
3 | by the Illinois Environmental Protection Agency, but the total | ||||||
4 | payment into the Underground Storage Tank Fund under this Act, | ||||||
5 | the Service Use Tax Act, the Service Occupation Tax Act, and | ||||||
6 | the Retailers' Occupation Tax Act shall not exceed $18,000,000 | ||||||
7 | in any State fiscal year. As used in this paragraph, the | ||||||
8 | "average monthly deficit" shall be equal to the difference | ||||||
9 | between the average monthly claims for payment by the fund and | ||||||
10 | the average monthly revenues deposited into the fund, | ||||||
11 | excluding payments made pursuant to this paragraph. | ||||||
12 | Beginning July 1, 2015, of the remainder of the moneys | ||||||
13 | received by the Department under this Act, the Service Use Tax | ||||||
14 | Act, the Service Occupation Tax Act, and the Retailers' | ||||||
15 | Occupation Tax Act, each month the Department shall deposit | ||||||
16 | $500,000 into the State Crime Laboratory Fund. | ||||||
17 | Of the remainder of the moneys received by the Department | ||||||
18 | pursuant to this Act, (a) 1.75% thereof shall be paid into the | ||||||
19 | Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on | ||||||
20 | and after July 1, 1989, 3.8% thereof shall be paid into the | ||||||
21 | Build Illinois Fund; provided, however, that if in any fiscal | ||||||
22 | year the sum of (1) the aggregate of 2.2% or 3.8%, as the case | ||||||
23 | may be, of the moneys received by the Department and required | ||||||
24 | to be paid into the Build Illinois Fund pursuant to Section 3 | ||||||
25 | of the Retailers' Occupation Tax Act, Section 9 of the Use Tax | ||||||
26 | Act, Section 9 of the Service Use Tax Act, and Section 9 of the |
| |||||||
| |||||||
1 | Service Occupation Tax Act, such Acts being hereinafter called | ||||||
2 | the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case | ||||||
3 | may be, of moneys being hereinafter called the "Tax Act | ||||||
4 | Amount", and (2) the amount transferred to the Build Illinois | ||||||
5 | Fund from the State and Local Sales Tax Reform Fund shall be | ||||||
6 | less than the Annual Specified Amount (as defined in Section 3 | ||||||
7 | of the Retailers' Occupation Tax Act), an amount equal to the | ||||||
8 | difference shall be immediately paid into the Build Illinois | ||||||
9 | Fund from other moneys received by the Department pursuant to | ||||||
10 | the Tax Acts; and further provided, that if on the last | ||||||
11 | business day of any month the sum of (1) the Tax Act Amount | ||||||
12 | required to be deposited into the Build Illinois Bond Account | ||||||
13 | in the Build Illinois Fund during such month and (2) the amount | ||||||
14 | transferred during such month to the Build Illinois Fund from | ||||||
15 | the State and Local Sales Tax Reform Fund shall have been less | ||||||
16 | than 1/12 of the Annual Specified Amount, an amount equal to | ||||||
17 | the difference shall be immediately paid into the Build | ||||||
18 | Illinois Fund from other moneys received by the Department | ||||||
19 | pursuant to the Tax Acts; and, further provided, that in no | ||||||
20 | event shall the payments required under the preceding proviso | ||||||
21 | result in aggregate payments into the Build Illinois Fund | ||||||
22 | pursuant to this clause (b) for any fiscal year in excess of | ||||||
23 | the greater of (i) the Tax Act Amount or (ii) the Annual | ||||||
24 | Specified Amount for such fiscal year; and, further provided, | ||||||
25 | that the amounts payable into the Build Illinois Fund under | ||||||
26 | this clause (b) shall be payable only until such time as the |
| |||||||
| |||||||
1 | aggregate amount on deposit under each trust indenture | ||||||
2 | securing Bonds issued and outstanding pursuant to the Build | ||||||
3 | Illinois Bond Act is sufficient, taking into account any | ||||||
4 | future investment income, to fully provide, in accordance with | ||||||
5 | such indenture, for the defeasance of or the payment of the | ||||||
6 | principal of, premium, if any, and interest on the Bonds | ||||||
7 | secured by such indenture and on any Bonds expected to be | ||||||
8 | issued thereafter and all fees and costs payable with respect | ||||||
9 | thereto, all as certified by the Director of the Bureau of the | ||||||
10 | Budget (now Governor's Office of Management and Budget). If on | ||||||
11 | the last business day of any month in which Bonds are | ||||||
12 | outstanding pursuant to the Build Illinois Bond Act, the | ||||||
13 | aggregate of the moneys deposited in the Build Illinois Bond | ||||||
14 | Account in the Build Illinois Fund in such month shall be less | ||||||
15 | than the amount required to be transferred in such month from | ||||||
16 | the Build Illinois Bond Account to the Build Illinois Bond | ||||||
17 | Retirement and Interest Fund pursuant to Section 13 of the | ||||||
18 | Build Illinois Bond Act, an amount equal to such deficiency | ||||||
19 | shall be immediately paid from other moneys received by the | ||||||
20 | Department pursuant to the Tax Acts to the Build Illinois | ||||||
21 | Fund; provided, however, that any amounts paid to the Build | ||||||
22 | Illinois Fund in any fiscal year pursuant to this sentence | ||||||
23 | shall be deemed to constitute payments pursuant to clause (b) | ||||||
24 | of the preceding sentence and shall reduce the amount | ||||||
25 | otherwise payable for such fiscal year pursuant to clause (b) | ||||||
26 | of the preceding sentence. The moneys received by the |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | Department pursuant to this Act and required to be deposited | |||||||||||||||||||||||||||||||||||||||||||||||||||
2 | into the Build Illinois Fund are subject to the pledge, claim | |||||||||||||||||||||||||||||||||||||||||||||||||||
3 | and charge set forth in Section 12 of the Build Illinois Bond | |||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Act. | |||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Subject to payment of amounts into the Build Illinois Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||
6 | as provided in the preceding paragraph or in any amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||
7 | thereto hereafter enacted, the following specified monthly | |||||||||||||||||||||||||||||||||||||||||||||||||||
8 | installment of the amount requested in the certificate of the | |||||||||||||||||||||||||||||||||||||||||||||||||||
9 | Chairman of the Metropolitan Pier and Exposition Authority | |||||||||||||||||||||||||||||||||||||||||||||||||||
10 | provided under Section 8.25f of the State Finance Act, but not | |||||||||||||||||||||||||||||||||||||||||||||||||||
11 | in excess of the sums designated as "Total Deposit", shall be | |||||||||||||||||||||||||||||||||||||||||||||||||||
12 | deposited in the aggregate from collections under Section 9 of | |||||||||||||||||||||||||||||||||||||||||||||||||||
13 | the Use Tax Act, Section 9 of the Service Use Tax Act, Section | |||||||||||||||||||||||||||||||||||||||||||||||||||
14 | 9 of the Service Occupation Tax Act, and Section 3 of the | |||||||||||||||||||||||||||||||||||||||||||||||||||
15 | Retailers' Occupation Tax Act into the McCormick Place | |||||||||||||||||||||||||||||||||||||||||||||||||||
16 | Expansion Project Fund in the specified fiscal years. | |||||||||||||||||||||||||||||||||||||||||||||||||||
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18 | Beginning July 20, 1993 and in each month of each fiscal | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
19 | year thereafter, one-eighth of the amount requested in the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
20 | certificate of the Chairman of the Metropolitan Pier and | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
21 | Exposition Authority for that fiscal year, less the amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
22 | deposited into the McCormick Place Expansion Project Fund by | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
23 | the State Treasurer in the respective month under subsection | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
24 | (g) of Section 13 of the Metropolitan Pier and Exposition | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
25 | Authority Act, plus cumulative deficiencies in the deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
26 | required under this Section for previous months and years, |
| |||||||
| |||||||
1 | shall be deposited into the McCormick Place Expansion Project | ||||||
2 | Fund, until the full amount requested for the fiscal year, but | ||||||
3 | not in excess of the amount specified above as "Total | ||||||
4 | Deposit", has been deposited. | ||||||
5 | Subject to payment of amounts into the Capital Projects | ||||||
6 | Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, | ||||||
7 | and the McCormick Place Expansion Project Fund pursuant to the | ||||||
8 | preceding paragraphs or in any amendments thereto hereafter | ||||||
9 | enacted, for aviation fuel sold on or after December 1, 2019, | ||||||
10 | the Department shall each month deposit into the Aviation Fuel | ||||||
11 | Sales Tax Refund Fund an amount estimated by the Department to | ||||||
12 | be required for refunds of the 80% portion of the tax on | ||||||
13 | aviation fuel under this Act. The Department shall only | ||||||
14 | deposit moneys into the Aviation Fuel Sales Tax Refund Fund | ||||||
15 | under this paragraph for so long as the revenue use | ||||||
16 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are | ||||||
17 | binding on the State. | ||||||
18 | Subject to payment of amounts into the Build Illinois Fund | ||||||
19 | and the McCormick Place Expansion Project Fund pursuant to the | ||||||
20 | preceding paragraphs or in any amendments thereto hereafter | ||||||
21 | enacted, beginning July 1, 1993 and ending on September 30, | ||||||
22 | 2013, the Department shall each month pay into the Illinois | ||||||
23 | Tax Increment Fund 0.27% of 80% of the net revenue realized for | ||||||
24 | the preceding month from the 6.25% general rate on the selling | ||||||
25 | price of tangible personal property. | ||||||
26 | Subject to payment of amounts into the Build Illinois |
| |||||||
| |||||||
1 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
2 | Tax Increment Fund, and the Energy Infrastructure Fund | ||||||
3 | pursuant to the preceding paragraphs or in any amendments to | ||||||
4 | this Section hereafter enacted, beginning on the first day of | ||||||
5 | the first calendar month to occur on or after August 26, 2014 | ||||||
6 | (the effective date of Public Act 98-1098), each month, from | ||||||
7 | the collections made under Section 9 of the Use Tax Act, | ||||||
8 | Section 9 of the Service Use Tax Act, Section 9 of the Service | ||||||
9 | Occupation Tax Act, and Section 3 of the Retailers' Occupation | ||||||
10 | Tax Act, the Department shall pay into the Tax Compliance and | ||||||
11 | Administration Fund, to be used, subject to appropriation, to | ||||||
12 | fund additional auditors and compliance personnel at the | ||||||
13 | Department of Revenue, an amount equal to 1/12 of 5% of 80% of | ||||||
14 | the cash receipts collected during the preceding fiscal year | ||||||
15 | by the Audit Bureau of the Department under the Use Tax Act, | ||||||
16 | the Service Use Tax Act, the Service Occupation Tax Act, the | ||||||
17 | Retailers' Occupation Tax Act, and associated local occupation | ||||||
18 | and use taxes administered by the Department. | ||||||
19 | Subject to payments of amounts into the Build Illinois | ||||||
20 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
21 | Tax Increment Fund, and the Tax Compliance and Administration | ||||||
22 | Fund as provided in this Section, beginning on July 1, 2018 the | ||||||
23 | Department shall pay each month into the Downstate Public | ||||||
24 | Transportation Fund the moneys required to be so paid under | ||||||
25 | Section 2-3 of the Downstate Public Transportation Act. | ||||||
26 | Subject to successful execution and delivery of a |
| |||||||
| |||||||
1 | public-private agreement between the public agency and private | ||||||
2 | entity and completion of the civic build, beginning on July 1, | ||||||
3 | 2023, of the remainder of the moneys received by the | ||||||
4 | Department under the Use Tax Act, the Service Use Tax Act, the | ||||||
5 | Service Occupation Tax Act, and this Act, the Department shall | ||||||
6 | deposit the following specified deposits in the aggregate from | ||||||
7 | collections under the Use Tax Act, the Service Use Tax Act, the | ||||||
8 | Service Occupation Tax Act, and the Retailers' Occupation Tax | ||||||
9 | Act, as required under Section 8.25g of the State Finance Act | ||||||
10 | for distribution consistent with the Public-Private | ||||||
11 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
12 | The moneys received by the Department pursuant to this Act and | ||||||
13 | required to be deposited into the Civic and Transit | ||||||
14 | Infrastructure Fund are subject to the pledge, claim, and | ||||||
15 | charge set forth in Section 25-55 of the Public-Private | ||||||
16 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
17 | As used in this paragraph, "civic build", "private entity", | ||||||
18 | "public-private agreement", and "public agency" have the | ||||||
19 | meanings provided in Section 25-10 of the Public-Private | ||||||
20 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
21 | Fiscal Year ............................Total Deposit | ||||||
22 | 2024 ....................................$200,000,000 | ||||||
23 | 2025 ....................................$206,000,000 | ||||||
24 | 2026 ....................................$212,200,000 | ||||||
25 | 2027 ....................................$218,500,000 | ||||||
26 | 2028 ....................................$225,100,000 |
| |||||||
| |||||||
1 | 2029 ....................................$288,700,000 | ||||||
2 | 2030 ....................................$298,900,000 | ||||||
3 | 2031 ....................................$309,300,000 | ||||||
4 | 2032 ....................................$320,100,000 | ||||||
5 | 2033 ....................................$331,200,000 | ||||||
6 | 2034 ....................................$341,200,000 | ||||||
7 | 2035 ....................................$351,400,000 | ||||||
8 | 2036 ....................................$361,900,000 | ||||||
9 | 2037 ....................................$372,800,000 | ||||||
10 | 2038 ....................................$384,000,000 | ||||||
11 | 2039 ....................................$395,500,000 | ||||||
12 | 2040 ....................................$407,400,000 | ||||||
13 | 2041 ....................................$419,600,000 | ||||||
14 | 2042 ....................................$432,200,000 | ||||||
15 | 2043 ....................................$445,100,000 | ||||||
16 | Beginning July 1, 2021 and until July 1, 2022, subject to | ||||||
17 | the payment of amounts into the State and Local Sales Tax | ||||||
18 | Reform Fund, the Build Illinois Fund, the McCormick Place | ||||||
19 | Expansion Project Fund, the Illinois Tax Increment Fund, and | ||||||
20 | the Tax Compliance and Administration Fund as provided in this | ||||||
21 | Section, the Department shall pay each month into the Road | ||||||
22 | Fund the amount estimated to represent 16% of the net revenue | ||||||
23 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
24 | Beginning July 1, 2022 and until July 1, 2023, subject to the | ||||||
25 | payment of amounts into the State and Local Sales Tax Reform | ||||||
26 | Fund, the Build Illinois Fund, the McCormick Place Expansion |
| |||||||
| |||||||
1 | Project Fund, the Illinois Tax Increment Fund, and the Tax | ||||||
2 | Compliance and Administration Fund as provided in this | ||||||
3 | Section, the Department shall pay each month into the Road | ||||||
4 | Fund the amount estimated to represent 32% of the net revenue | ||||||
5 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
6 | Beginning July 1, 2023 and until July 1, 2024, subject to the | ||||||
7 | payment of amounts into the State and Local Sales Tax Reform | ||||||
8 | Fund, the Build Illinois Fund, the McCormick Place Expansion | ||||||
9 | Project Fund, the Illinois Tax Increment Fund, and the Tax | ||||||
10 | Compliance and Administration Fund as provided in this | ||||||
11 | Section, the Department shall pay each month into the Road | ||||||
12 | Fund the amount estimated to represent 48% of the net revenue | ||||||
13 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
14 | Beginning July 1, 2024 and until July 1, 2025, subject to the | ||||||
15 | payment of amounts into the State and Local Sales Tax Reform | ||||||
16 | Fund, the Build Illinois Fund, the McCormick Place Expansion | ||||||
17 | Project Fund, the Illinois Tax Increment Fund, and the Tax | ||||||
18 | Compliance and Administration Fund as provided in this | ||||||
19 | Section, the Department shall pay each month into the Road | ||||||
20 | Fund the amount estimated to represent 64% of the net revenue | ||||||
21 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
22 | Beginning on July 1, 2025, subject to the payment of amounts | ||||||
23 | into the State and Local Sales Tax Reform Fund, the Build | ||||||
24 | Illinois Fund, the McCormick Place Expansion Project Fund, the | ||||||
25 | Illinois Tax Increment Fund, and the Tax Compliance and | ||||||
26 | Administration Fund as provided in this Section, the |
| |||||||
| |||||||
1 | Department shall pay each month into the Road Fund the amount | ||||||
2 | estimated to represent 80% of the net revenue realized from | ||||||
3 | the taxes imposed on motor fuel and gasohol. As used in this | ||||||
4 | paragraph "motor fuel" has the meaning given to that term in | ||||||
5 | Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the | ||||||
6 | meaning given to that term in Section 3-40 of this Act. | ||||||
7 | Of the remainder of the moneys received by the Department | ||||||
8 | pursuant to this Act, 75% thereof shall be paid into the State | ||||||
9 | Treasury and 25% shall be reserved in a special account and | ||||||
10 | used only for the transfer to the Common School Fund as part of | ||||||
11 | the monthly transfer from the General Revenue Fund in | ||||||
12 | accordance with Section 8a of the State Finance Act. | ||||||
13 | As soon as possible after the first day of each month, upon | ||||||
14 | certification of the Department of Revenue, the Comptroller | ||||||
15 | shall order transferred and the Treasurer shall transfer from | ||||||
16 | the General Revenue Fund to the Motor Fuel Tax Fund an amount | ||||||
17 | equal to 1.7% of 80% of the net revenue realized under this Act | ||||||
18 | for the second preceding month. Beginning April 1, 2000, this | ||||||
19 | transfer is no longer required and shall not be made. | ||||||
20 | Net revenue realized for a month shall be the revenue | ||||||
21 | collected by the State pursuant to this Act, less the amount | ||||||
22 | paid out during that month as refunds to taxpayers for | ||||||
23 | overpayment of liability. | ||||||
24 | For greater simplicity of administration, manufacturers, | ||||||
25 | importers and wholesalers whose products are sold at retail in | ||||||
26 | Illinois by numerous retailers, and who wish to do so, may |
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| |||||||
1 | assume the responsibility for accounting and paying to the | ||||||
2 | Department all tax accruing under this Act with respect to | ||||||
3 | such sales, if the retailers who are affected do not make | ||||||
4 | written objection to the Department to this arrangement. | ||||||
5 | (Source: P.A. 102-700, Article 60, Section 60-15, eff. | ||||||
6 | 4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22; | ||||||
7 | 102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff. | ||||||
8 | 7-28-23.) | ||||||
9 | Section 800-15. The Service Use Tax Act is amended by | ||||||
10 | changing Section 9 as follows: | ||||||
11 | (35 ILCS 110/9) (from Ch. 120, par. 439.39) | ||||||
12 | Sec. 9. Each serviceman required or authorized to collect | ||||||
13 | the tax herein imposed shall pay to the Department the amount | ||||||
14 | of such tax (except as otherwise provided) at the time when he | ||||||
15 | is required to file his return for the period during which such | ||||||
16 | tax was collected, less a discount of 2.1% prior to January 1, | ||||||
17 | 1990 and 1.75% on and after January 1, 1990, or $5 per calendar | ||||||
18 | year, whichever is greater, which is allowed to reimburse the | ||||||
19 | serviceman for expenses incurred in collecting the tax, | ||||||
20 | keeping records, preparing and filing returns, remitting the | ||||||
21 | tax and supplying data to the Department on request. When | ||||||
22 | determining the discount allowed under this Section, | ||||||
23 | servicemen shall include the amount of tax that would have | ||||||
24 | been due at the 1% rate but for the 0% rate imposed under this |
| |||||||
| |||||||
1 | amendatory Act of the 102nd General Assembly. The discount | ||||||
2 | under this Section is not allowed for the 1.25% portion of | ||||||
3 | taxes paid on aviation fuel that is subject to the revenue use | ||||||
4 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The | ||||||
5 | discount allowed under this Section is allowed only for | ||||||
6 | returns that are filed in the manner required by this Act. The | ||||||
7 | Department may disallow the discount for servicemen whose | ||||||
8 | certificate of registration is revoked at the time the return | ||||||
9 | is filed, but only if the Department's decision to revoke the | ||||||
10 | certificate of registration has become final. A serviceman | ||||||
11 | need not remit that part of any tax collected by him to the | ||||||
12 | extent that he is required to pay and does pay the tax imposed | ||||||
13 | by the Service Occupation Tax Act with respect to his sale of | ||||||
14 | service involving the incidental transfer by him of the same | ||||||
15 | property. | ||||||
16 | Except as provided hereinafter in this Section, on or | ||||||
17 | before the twentieth day of each calendar month, such | ||||||
18 | serviceman shall file a return for the preceding calendar | ||||||
19 | month in accordance with reasonable Rules and Regulations to | ||||||
20 | be promulgated by the Department. Such return shall be filed | ||||||
21 | on a form prescribed by the Department and shall contain such | ||||||
22 | information as the Department may reasonably require. The | ||||||
23 | return shall include the gross receipts which were received | ||||||
24 | during the preceding calendar month or quarter on the | ||||||
25 | following items upon which tax would have been due but for the | ||||||
26 | 0% rate imposed under this amendatory Act of the 102nd General |
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| |||||||
1 | Assembly: (i) food for human consumption that is to be | ||||||
2 | consumed off the premises where it is sold (other than | ||||||
3 | alcoholic beverages, food consisting of or infused with adult | ||||||
4 | use cannabis, soft drinks, and food that has been prepared for | ||||||
5 | immediate consumption); and (ii) food prepared for immediate | ||||||
6 | consumption and transferred incident to a sale of service | ||||||
7 | subject to this Act or the Service Occupation Tax Act by an | ||||||
8 | entity licensed under the Hospital Licensing Act, the Nursing | ||||||
9 | Home Care Act, the Assisted Living and Shared Housing Act, the | ||||||
10 | ID/DD Community Care Act, the MC/DD Act, the Specialized | ||||||
11 | Mental Health Rehabilitation Act of 2013, or the Child Care | ||||||
12 | Act of 1969, or an entity that holds a permit issued pursuant | ||||||
13 | to the Life Care Facilities Act. The return shall also include | ||||||
14 | the amount of tax that would have been due on the items listed | ||||||
15 | in the previous sentence but for the 0% rate imposed under this | ||||||
16 | amendatory Act of the 102nd General Assembly. | ||||||
17 | On and after January 1, 2018, with respect to servicemen | ||||||
18 | whose annual gross receipts average $20,000 or more, all | ||||||
19 | returns required to be filed pursuant to this Act shall be | ||||||
20 | filed electronically. Servicemen who demonstrate that they do | ||||||
21 | not have access to the Internet or demonstrate hardship in | ||||||
22 | filing electronically may petition the Department to waive the | ||||||
23 | electronic filing requirement. | ||||||
24 | The Department may require returns to be filed on a | ||||||
25 | quarterly basis. If so required, a return for each calendar | ||||||
26 | quarter shall be filed on or before the twentieth day of the |
| |||||||
| |||||||
1 | calendar month following the end of such calendar quarter. The | ||||||
2 | taxpayer shall also file a return with the Department for each | ||||||
3 | of the first two months of each calendar quarter, on or before | ||||||
4 | the twentieth day of the following calendar month, stating: | ||||||
5 | 1. The name of the seller; | ||||||
6 | 2. The address of the principal place of business from | ||||||
7 | which he engages in business as a serviceman in this | ||||||
8 | State; | ||||||
9 | 3. The total amount of taxable receipts received by | ||||||
10 | him during the preceding calendar month, including | ||||||
11 | receipts from charge and time sales, but less all | ||||||
12 | deductions allowed by law; | ||||||
13 | 4. The amount of credit provided in Section 2d of this | ||||||
14 | Act; | ||||||
15 | 5. The amount of tax due; | ||||||
16 | 5-5. The signature of the taxpayer; and | ||||||
17 | 6. Such other reasonable information as the Department | ||||||
18 | may require. | ||||||
19 | Each serviceman required or authorized to collect the tax | ||||||
20 | imposed by this Act on aviation fuel transferred as an | ||||||
21 | incident of a sale of service in this State during the | ||||||
22 | preceding calendar month shall, instead of reporting and | ||||||
23 | paying tax on aviation fuel as otherwise required by this | ||||||
24 | Section, report and pay such tax on a separate aviation fuel | ||||||
25 | tax return. The requirements related to the return shall be as | ||||||
26 | otherwise provided in this Section. Notwithstanding any other |
| |||||||
| |||||||
1 | provisions of this Act to the contrary, servicemen collecting | ||||||
2 | tax on aviation fuel shall file all aviation fuel tax returns | ||||||
3 | and shall make all aviation fuel tax payments by electronic | ||||||
4 | means in the manner and form required by the Department. For | ||||||
5 | purposes of this Section, "aviation fuel" means jet fuel and | ||||||
6 | aviation gasoline. | ||||||
7 | If a taxpayer fails to sign a return within 30 days after | ||||||
8 | the proper notice and demand for signature by the Department, | ||||||
9 | the return shall be considered valid and any amount shown to be | ||||||
10 | due on the return shall be deemed assessed. | ||||||
11 | Notwithstanding any other provision of this Act to the | ||||||
12 | contrary, servicemen subject to tax on cannabis shall file all | ||||||
13 | cannabis tax returns and shall make all cannabis tax payments | ||||||
14 | by electronic means in the manner and form required by the | ||||||
15 | Department. | ||||||
16 | Notwithstanding any other provision of this Act to the | ||||||
17 | contrary, retailers subject to tax on hemp concentrate, | ||||||
18 | intermediate hemp products, or hemp concentrate derived | ||||||
19 | products shall file all tax returns and shall make all tax | ||||||
20 | payments on hemp concentrate, intermediate hemp products, and | ||||||
21 | hemp concentrate derived products by electronic means in the | ||||||
22 | manner and form required by the Department. | ||||||
23 | Beginning October 1, 1993, a taxpayer who has an average | ||||||
24 | monthly tax liability of $150,000 or more shall make all | ||||||
25 | payments required by rules of the Department by electronic | ||||||
26 | funds transfer. Beginning October 1, 1994, a taxpayer who has |
| |||||||
| |||||||
1 | an average monthly tax liability of $100,000 or more shall | ||||||
2 | make all payments required by rules of the Department by | ||||||
3 | electronic funds transfer. Beginning October 1, 1995, a | ||||||
4 | taxpayer who has an average monthly tax liability of $50,000 | ||||||
5 | or more shall make all payments required by rules of the | ||||||
6 | Department by electronic funds transfer. Beginning October 1, | ||||||
7 | 2000, a taxpayer who has an annual tax liability of $200,000 or | ||||||
8 | more shall make all payments required by rules of the | ||||||
9 | Department by electronic funds transfer. The term "annual tax | ||||||
10 | liability" shall be the sum of the taxpayer's liabilities | ||||||
11 | under this Act, and under all other State and local occupation | ||||||
12 | and use tax laws administered by the Department, for the | ||||||
13 | immediately preceding calendar year. The term "average monthly | ||||||
14 | tax liability" means the sum of the taxpayer's liabilities | ||||||
15 | under this Act, and under all other State and local occupation | ||||||
16 | and use tax laws administered by the Department, for the | ||||||
17 | immediately preceding calendar year divided by 12. Beginning | ||||||
18 | on October 1, 2002, a taxpayer who has a tax liability in the | ||||||
19 | amount set forth in subsection (b) of Section 2505-210 of the | ||||||
20 | Department of Revenue Law shall make all payments required by | ||||||
21 | rules of the Department by electronic funds transfer. | ||||||
22 | Before August 1 of each year beginning in 1993, the | ||||||
23 | Department shall notify all taxpayers required to make | ||||||
24 | payments by electronic funds transfer. All taxpayers required | ||||||
25 | to make payments by electronic funds transfer shall make those | ||||||
26 | payments for a minimum of one year beginning on October 1. |
| |||||||
| |||||||
1 | Any taxpayer not required to make payments by electronic | ||||||
2 | funds transfer may make payments by electronic funds transfer | ||||||
3 | with the permission of the Department. | ||||||
4 | All taxpayers required to make payment by electronic funds | ||||||
5 | transfer and any taxpayers authorized to voluntarily make | ||||||
6 | payments by electronic funds transfer shall make those | ||||||
7 | payments in the manner authorized by the Department. | ||||||
8 | The Department shall adopt such rules as are necessary to | ||||||
9 | effectuate a program of electronic funds transfer and the | ||||||
10 | requirements of this Section. | ||||||
11 | If the serviceman is otherwise required to file a monthly | ||||||
12 | return and if the serviceman's average monthly tax liability | ||||||
13 | to the Department does not exceed $200, the Department may | ||||||
14 | authorize his returns to be filed on a quarter annual basis, | ||||||
15 | with the return for January, February and March of a given year | ||||||
16 | being due by April 20 of such year; with the return for April, | ||||||
17 | May and June of a given year being due by July 20 of such year; | ||||||
18 | with the return for July, August and September of a given year | ||||||
19 | being due by October 20 of such year, and with the return for | ||||||
20 | October, November and December of a given year being due by | ||||||
21 | January 20 of the following year. | ||||||
22 | If the serviceman is otherwise required to file a monthly | ||||||
23 | or quarterly return and if the serviceman's average monthly | ||||||
24 | tax liability to the Department does not exceed $50, the | ||||||
25 | Department may authorize his returns to be filed on an annual | ||||||
26 | basis, with the return for a given year being due by January 20 |
| |||||||
| |||||||
1 | of the following year. | ||||||
2 | Such quarter annual and annual returns, as to form and | ||||||
3 | substance, shall be subject to the same requirements as | ||||||
4 | monthly returns. | ||||||
5 | Notwithstanding any other provision in this Act concerning | ||||||
6 | the time within which a serviceman may file his return, in the | ||||||
7 | case of any serviceman who ceases to engage in a kind of | ||||||
8 | business which makes him responsible for filing returns under | ||||||
9 | this Act, such serviceman shall file a final return under this | ||||||
10 | Act with the Department not more than 1 month after | ||||||
11 | discontinuing such business. | ||||||
12 | Where a serviceman collects the tax with respect to the | ||||||
13 | selling price of property which he sells and the purchaser | ||||||
14 | thereafter returns such property and the serviceman refunds | ||||||
15 | the selling price thereof to the purchaser, such serviceman | ||||||
16 | shall also refund, to the purchaser, the tax so collected from | ||||||
17 | the purchaser. When filing his return for the period in which | ||||||
18 | he refunds such tax to the purchaser, the serviceman may | ||||||
19 | deduct the amount of the tax so refunded by him to the | ||||||
20 | purchaser from any other Service Use Tax, Service Occupation | ||||||
21 | Tax, retailers' occupation tax or use tax which such | ||||||
22 | serviceman may be required to pay or remit to the Department, | ||||||
23 | as shown by such return, provided that the amount of the tax to | ||||||
24 | be deducted shall previously have been remitted to the | ||||||
25 | Department by such serviceman. If the serviceman shall not | ||||||
26 | previously have remitted the amount of such tax to the |
| |||||||
| |||||||
1 | Department, he shall be entitled to no deduction hereunder | ||||||
2 | upon refunding such tax to the purchaser. | ||||||
3 | Any serviceman filing a return hereunder shall also | ||||||
4 | include the total tax upon the selling price of tangible | ||||||
5 | personal property purchased for use by him as an incident to a | ||||||
6 | sale of service, and such serviceman shall remit the amount of | ||||||
7 | such tax to the Department when filing such return. | ||||||
8 | If experience indicates such action to be practicable, the | ||||||
9 | Department may prescribe and furnish a combination or joint | ||||||
10 | return which will enable servicemen, who are required to file | ||||||
11 | returns hereunder and also under the Service Occupation Tax | ||||||
12 | Act, to furnish all the return information required by both | ||||||
13 | Acts on the one form. | ||||||
14 | Where the serviceman has more than one business registered | ||||||
15 | with the Department under separate registration hereunder, | ||||||
16 | such serviceman shall not file each return that is due as a | ||||||
17 | single return covering all such registered businesses, but | ||||||
18 | shall file separate returns for each such registered business. | ||||||
19 | Beginning January 1, 1990, each month the Department shall | ||||||
20 | pay into the State and Local Tax Reform Fund, a special fund in | ||||||
21 | the State Treasury, the net revenue realized for the preceding | ||||||
22 | month from the 1% tax imposed under this Act. | ||||||
23 | Beginning January 1, 1990, each month the Department shall | ||||||
24 | pay into the State and Local Sales Tax Reform Fund 20% of the | ||||||
25 | net revenue realized for the preceding month from the 6.25% | ||||||
26 | general rate on transfers of tangible personal property, other |
| |||||||
| |||||||
1 | than (i) tangible personal property which is purchased outside | ||||||
2 | Illinois at retail from a retailer and which is titled or | ||||||
3 | registered by an agency of this State's government and (ii) | ||||||
4 | aviation fuel sold on or after December 1, 2019. This | ||||||
5 | exception for aviation fuel only applies for so long as the | ||||||
6 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
7 | 47133 are binding on the State. | ||||||
8 | For aviation fuel sold on or after December 1, 2019, each | ||||||
9 | month the Department shall pay into the State Aviation Program | ||||||
10 | Fund 20% of the net revenue realized for the preceding month | ||||||
11 | from the 6.25% general rate on the selling price of aviation | ||||||
12 | fuel, less an amount estimated by the Department to be | ||||||
13 | required for refunds of the 20% portion of the tax on aviation | ||||||
14 | fuel under this Act, which amount shall be deposited into the | ||||||
15 | Aviation Fuel Sales Tax Refund Fund. The Department shall only | ||||||
16 | pay moneys into the State Aviation Program Fund and the | ||||||
17 | Aviation Fuel Sales Tax Refund Fund under this Act for so long | ||||||
18 | as the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
19 | U.S.C. 47133 are binding on the State. | ||||||
20 | Beginning August 1, 2000, each month the Department shall | ||||||
21 | pay into the State and Local Sales Tax Reform Fund 100% of the | ||||||
22 | net revenue realized for the preceding month from the 1.25% | ||||||
23 | rate on the selling price of motor fuel and gasohol. | ||||||
24 | Beginning October 1, 2009, each month the Department shall | ||||||
25 | pay into the Capital Projects Fund an amount that is equal to | ||||||
26 | an amount estimated by the Department to represent 80% of the |
| |||||||
| |||||||
1 | net revenue realized for the preceding month from the sale of | ||||||
2 | candy, grooming and hygiene products, and soft drinks that had | ||||||
3 | been taxed at a rate of 1% prior to September 1, 2009 but that | ||||||
4 | are now taxed at 6.25%. | ||||||
5 | Beginning July 1, 2013, each month the Department shall | ||||||
6 | pay into the Underground Storage Tank Fund from the proceeds | ||||||
7 | collected under this Act, the Use Tax Act, the Service | ||||||
8 | Occupation Tax Act, and the Retailers' Occupation Tax Act an | ||||||
9 | amount equal to the average monthly deficit in the Underground | ||||||
10 | Storage Tank Fund during the prior year, as certified annually | ||||||
11 | by the Illinois Environmental Protection Agency, but the total | ||||||
12 | payment into the Underground Storage Tank Fund under this Act, | ||||||
13 | the Use Tax Act, the Service Occupation Tax Act, and the | ||||||
14 | Retailers' Occupation Tax Act shall not exceed $18,000,000 in | ||||||
15 | any State fiscal year. As used in this paragraph, the "average | ||||||
16 | monthly deficit" shall be equal to the difference between the | ||||||
17 | average monthly claims for payment by the fund and the average | ||||||
18 | monthly revenues deposited into the fund, excluding payments | ||||||
19 | made pursuant to this paragraph. | ||||||
20 | Beginning July 1, 2015, of the remainder of the moneys | ||||||
21 | received by the Department under the Use Tax Act, this Act, the | ||||||
22 | Service Occupation Tax Act, and the Retailers' Occupation Tax | ||||||
23 | Act, each month the Department shall deposit $500,000 into the | ||||||
24 | State Crime Laboratory Fund. | ||||||
25 | Of the remainder of the moneys received by the Department | ||||||
26 | pursuant to this Act, (a) 1.75% thereof shall be paid into the |
| |||||||
| |||||||
1 | Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on | ||||||
2 | and after July 1, 1989, 3.8% thereof shall be paid into the | ||||||
3 | Build Illinois Fund; provided, however, that if in any fiscal | ||||||
4 | year the sum of (1) the aggregate of 2.2% or 3.8%, as the case | ||||||
5 | may be, of the moneys received by the Department and required | ||||||
6 | to be paid into the Build Illinois Fund pursuant to Section 3 | ||||||
7 | of the Retailers' Occupation Tax Act, Section 9 of the Use Tax | ||||||
8 | Act, Section 9 of the Service Use Tax Act, and Section 9 of the | ||||||
9 | Service Occupation Tax Act, such Acts being hereinafter called | ||||||
10 | the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case | ||||||
11 | may be, of moneys being hereinafter called the "Tax Act | ||||||
12 | Amount", and (2) the amount transferred to the Build Illinois | ||||||
13 | Fund from the State and Local Sales Tax Reform Fund shall be | ||||||
14 | less than the Annual Specified Amount (as defined in Section 3 | ||||||
15 | of the Retailers' Occupation Tax Act), an amount equal to the | ||||||
16 | difference shall be immediately paid into the Build Illinois | ||||||
17 | Fund from other moneys received by the Department pursuant to | ||||||
18 | the Tax Acts; and further provided, that if on the last | ||||||
19 | business day of any month the sum of (1) the Tax Act Amount | ||||||
20 | required to be deposited into the Build Illinois Bond Account | ||||||
21 | in the Build Illinois Fund during such month and (2) the amount | ||||||
22 | transferred during such month to the Build Illinois Fund from | ||||||
23 | the State and Local Sales Tax Reform Fund shall have been less | ||||||
24 | than 1/12 of the Annual Specified Amount, an amount equal to | ||||||
25 | the difference shall be immediately paid into the Build | ||||||
26 | Illinois Fund from other moneys received by the Department |
| |||||||
| |||||||
1 | pursuant to the Tax Acts; and, further provided, that in no | ||||||
2 | event shall the payments required under the preceding proviso | ||||||
3 | result in aggregate payments into the Build Illinois Fund | ||||||
4 | pursuant to this clause (b) for any fiscal year in excess of | ||||||
5 | the greater of (i) the Tax Act Amount or (ii) the Annual | ||||||
6 | Specified Amount for such fiscal year; and, further provided, | ||||||
7 | that the amounts payable into the Build Illinois Fund under | ||||||
8 | this clause (b) shall be payable only until such time as the | ||||||
9 | aggregate amount on deposit under each trust indenture | ||||||
10 | securing Bonds issued and outstanding pursuant to the Build | ||||||
11 | Illinois Bond Act is sufficient, taking into account any | ||||||
12 | future investment income, to fully provide, in accordance with | ||||||
13 | such indenture, for the defeasance of or the payment of the | ||||||
14 | principal of, premium, if any, and interest on the Bonds | ||||||
15 | secured by such indenture and on any Bonds expected to be | ||||||
16 | issued thereafter and all fees and costs payable with respect | ||||||
17 | thereto, all as certified by the Director of the Bureau of the | ||||||
18 | Budget (now Governor's Office of Management and Budget). If on | ||||||
19 | the last business day of any month in which Bonds are | ||||||
20 | outstanding pursuant to the Build Illinois Bond Act, the | ||||||
21 | aggregate of the moneys deposited in the Build Illinois Bond | ||||||
22 | Account in the Build Illinois Fund in such month shall be less | ||||||
23 | than the amount required to be transferred in such month from | ||||||
24 | the Build Illinois Bond Account to the Build Illinois Bond | ||||||
25 | Retirement and Interest Fund pursuant to Section 13 of the | ||||||
26 | Build Illinois Bond Act, an amount equal to such deficiency |
| |||||||
| |||||||
1 | shall be immediately paid from other moneys received by the | ||||||
2 | Department pursuant to the Tax Acts to the Build Illinois | ||||||
3 | Fund; provided, however, that any amounts paid to the Build | ||||||
4 | Illinois Fund in any fiscal year pursuant to this sentence | ||||||
5 | shall be deemed to constitute payments pursuant to clause (b) | ||||||
6 | of the preceding sentence and shall reduce the amount | ||||||
7 | otherwise payable for such fiscal year pursuant to clause (b) | ||||||
8 | of the preceding sentence. The moneys received by the | ||||||
9 | Department pursuant to this Act and required to be deposited | ||||||
10 | into the Build Illinois Fund are subject to the pledge, claim | ||||||
11 | and charge set forth in Section 12 of the Build Illinois Bond | ||||||
12 | Act. | ||||||
13 | Subject to payment of amounts into the Build Illinois Fund | ||||||
14 | as provided in the preceding paragraph or in any amendment | ||||||
15 | thereto hereafter enacted, the following specified monthly | ||||||
16 | installment of the amount requested in the certificate of the | ||||||
17 | Chairman of the Metropolitan Pier and Exposition Authority | ||||||
18 | provided under Section 8.25f of the State Finance Act, but not | ||||||
19 | in excess of the sums designated as "Total Deposit", shall be | ||||||
20 | deposited in the aggregate from collections under Section 9 of | ||||||
21 | the Use Tax Act, Section 9 of the Service Use Tax Act, Section | ||||||
22 | 9 of the Service Occupation Tax Act, and Section 3 of the | ||||||
23 | Retailers' Occupation Tax Act into the McCormick Place | ||||||
24 | Expansion Project Fund in the specified fiscal years. | ||||||
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| |||||||
1 | Beginning July 20, 1993 and in each month of each fiscal | ||||||
2 | year thereafter, one-eighth of the amount requested in the | ||||||
3 | certificate of the Chairman of the Metropolitan Pier and | ||||||
4 | Exposition Authority for that fiscal year, less the amount | ||||||
5 | deposited into the McCormick Place Expansion Project Fund by | ||||||
6 | the State Treasurer in the respective month under subsection | ||||||
7 | (g) of Section 13 of the Metropolitan Pier and Exposition | ||||||
8 | Authority Act, plus cumulative deficiencies in the deposits | ||||||
9 | required under this Section for previous months and years, | ||||||
10 | shall be deposited into the McCormick Place Expansion Project | ||||||
11 | Fund, until the full amount requested for the fiscal year, but | ||||||
12 | not in excess of the amount specified above as "Total | ||||||
13 | Deposit", has been deposited. | ||||||
14 | Subject to payment of amounts into the Capital Projects | ||||||
15 | Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, | ||||||
16 | and the McCormick Place Expansion Project Fund pursuant to the | ||||||
17 | preceding paragraphs or in any amendments thereto hereafter | ||||||
18 | enacted, for aviation fuel sold on or after December 1, 2019, | ||||||
19 | the Department shall each month deposit into the Aviation Fuel | ||||||
20 | Sales Tax Refund Fund an amount estimated by the Department to | ||||||
21 | be required for refunds of the 80% portion of the tax on | ||||||
22 | aviation fuel under this Act. The Department shall only | ||||||
23 | deposit moneys into the Aviation Fuel Sales Tax Refund Fund | ||||||
24 | under this paragraph for so long as the revenue use | ||||||
25 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are | ||||||
26 | binding on the State. |
| |||||||
| |||||||
1 | Subject to payment of amounts into the Build Illinois Fund | ||||||
2 | and the McCormick Place Expansion Project Fund pursuant to the | ||||||
3 | preceding paragraphs or in any amendments thereto hereafter | ||||||
4 | enacted, beginning July 1, 1993 and ending on September 30, | ||||||
5 | 2013, the Department shall each month pay into the Illinois | ||||||
6 | Tax Increment Fund 0.27% of 80% of the net revenue realized for | ||||||
7 | the preceding month from the 6.25% general rate on the selling | ||||||
8 | price of tangible personal property. | ||||||
9 | Subject to payment of amounts into the Build Illinois | ||||||
10 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
11 | Tax Increment Fund, pursuant to the preceding paragraphs or in | ||||||
12 | any amendments to this Section hereafter enacted, beginning on | ||||||
13 | the first day of the first calendar month to occur on or after | ||||||
14 | August 26, 2014 (the effective date of Public Act 98-1098), | ||||||
15 | each month, from the collections made under Section 9 of the | ||||||
16 | Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of | ||||||
17 | the Service Occupation Tax Act, and Section 3 of the | ||||||
18 | Retailers' Occupation Tax Act, the Department shall pay into | ||||||
19 | the Tax Compliance and Administration Fund, to be used, | ||||||
20 | subject to appropriation, to fund additional auditors and | ||||||
21 | compliance personnel at the Department of Revenue, an amount | ||||||
22 | equal to 1/12 of 5% of 80% of the cash receipts collected | ||||||
23 | during the preceding fiscal year by the Audit Bureau of the | ||||||
24 | Department under the Use Tax Act, the Service Use Tax Act, the | ||||||
25 | Service Occupation Tax Act, the Retailers' Occupation Tax Act, | ||||||
26 | and associated local occupation and use taxes administered by |
| |||||||
| |||||||
1 | the Department. | ||||||
2 | Subject to payments of amounts into the Build Illinois | ||||||
3 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
4 | Tax Increment Fund, and the Tax Compliance and Administration | ||||||
5 | Fund as provided in this Section, beginning on July 1, 2018 the | ||||||
6 | Department shall pay each month into the Downstate Public | ||||||
7 | Transportation Fund the moneys required to be so paid under | ||||||
8 | Section 2-3 of the Downstate Public Transportation Act. | ||||||
9 | Subject to successful execution and delivery of a | ||||||
10 | public-private agreement between the public agency and private | ||||||
11 | entity and completion of the civic build, beginning on July 1, | ||||||
12 | 2023, of the remainder of the moneys received by the | ||||||
13 | Department under the Use Tax Act, the Service Use Tax Act, the | ||||||
14 | Service Occupation Tax Act, and this Act, the Department shall | ||||||
15 | deposit the following specified deposits in the aggregate from | ||||||
16 | collections under the Use Tax Act, the Service Use Tax Act, the | ||||||
17 | Service Occupation Tax Act, and the Retailers' Occupation Tax | ||||||
18 | Act, as required under Section 8.25g of the State Finance Act | ||||||
19 | for distribution consistent with the Public-Private | ||||||
20 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
21 | The moneys received by the Department pursuant to this Act and | ||||||
22 | required to be deposited into the Civic and Transit | ||||||
23 | Infrastructure Fund are subject to the pledge, claim, and | ||||||
24 | charge set forth in Section 25-55 of the Public-Private | ||||||
25 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
26 | As used in this paragraph, "civic build", "private entity", |
| |||||||
| |||||||
1 | "public-private agreement", and "public agency" have the | ||||||
2 | meanings provided in Section 25-10 of the Public-Private | ||||||
3 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
4 | Fiscal Year ............................Total Deposit | ||||||
5 | 2024 ....................................$200,000,000 | ||||||
6 | 2025 ....................................$206,000,000 | ||||||
7 | 2026 ....................................$212,200,000 | ||||||
8 | 2027 ....................................$218,500,000 | ||||||
9 | 2028 ....................................$225,100,000 | ||||||
10 | 2029 ....................................$288,700,000 | ||||||
11 | 2030 ....................................$298,900,000 | ||||||
12 | 2031 ....................................$309,300,000 | ||||||
13 | 2032 ....................................$320,100,000 | ||||||
14 | 2033 ....................................$331,200,000 | ||||||
15 | 2034 ....................................$341,200,000 | ||||||
16 | 2035 ....................................$351,400,000 | ||||||
17 | 2036 ....................................$361,900,000 | ||||||
18 | 2037 ....................................$372,800,000 | ||||||
19 | 2038 ....................................$384,000,000 | ||||||
20 | 2039 ....................................$395,500,000 | ||||||
21 | 2040 ....................................$407,400,000 | ||||||
22 | 2041 ....................................$419,600,000 | ||||||
23 | 2042 ....................................$432,200,000 | ||||||
24 | 2043 ....................................$445,100,000 | ||||||
25 | Beginning July 1, 2021 and until July 1, 2022, subject to | ||||||
26 | the payment of amounts into the State and Local Sales Tax |
| |||||||
| |||||||
1 | Reform Fund, the Build Illinois Fund, the McCormick Place | ||||||
2 | Expansion Project Fund, the Energy Infrastructure Fund, and | ||||||
3 | the Tax Compliance and Administration Fund as provided in this | ||||||
4 | Section, the Department shall pay each month into the Road | ||||||
5 | Fund the amount estimated to represent 16% of the net revenue | ||||||
6 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
7 | Beginning July 1, 2022 and until July 1, 2023, subject to the | ||||||
8 | payment of amounts into the State and Local Sales Tax Reform | ||||||
9 | Fund, the Build Illinois Fund, the McCormick Place Expansion | ||||||
10 | Project Fund, the Illinois Tax Increment Fund, and the Tax | ||||||
11 | Compliance and Administration Fund as provided in this | ||||||
12 | Section, the Department shall pay each month into the Road | ||||||
13 | Fund the amount estimated to represent 32% of the net revenue | ||||||
14 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
15 | Beginning July 1, 2023 and until July 1, 2024, subject to the | ||||||
16 | payment of amounts into the State and Local Sales Tax Reform | ||||||
17 | Fund, the Build Illinois Fund, the McCormick Place Expansion | ||||||
18 | Project Fund, the Illinois Tax Increment Fund, and the Tax | ||||||
19 | Compliance and Administration Fund as provided in this | ||||||
20 | Section, the Department shall pay each month into the Road | ||||||
21 | Fund the amount estimated to represent 48% of the net revenue | ||||||
22 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
23 | Beginning July 1, 2024 and until July 1, 2025, subject to the | ||||||
24 | payment of amounts into the State and Local Sales Tax Reform | ||||||
25 | Fund, the Build Illinois Fund, the McCormick Place Expansion | ||||||
26 | Project Fund, the Illinois Tax Increment Fund, and the Tax |
| |||||||
| |||||||
1 | Compliance and Administration Fund as provided in this | ||||||
2 | Section, the Department shall pay each month into the Road | ||||||
3 | Fund the amount estimated to represent 64% of the net revenue | ||||||
4 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
5 | Beginning on July 1, 2025, subject to the payment of amounts | ||||||
6 | into the State and Local Sales Tax Reform Fund, the Build | ||||||
7 | Illinois Fund, the McCormick Place Expansion Project Fund, the | ||||||
8 | Illinois Tax Increment Fund, and the Tax Compliance and | ||||||
9 | Administration Fund as provided in this Section, the | ||||||
10 | Department shall pay each month into the Road Fund the amount | ||||||
11 | estimated to represent 80% of the net revenue realized from | ||||||
12 | the taxes imposed on motor fuel and gasohol. As used in this | ||||||
13 | paragraph "motor fuel" has the meaning given to that term in | ||||||
14 | Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the | ||||||
15 | meaning given to that term in Section 3-40 of the Use Tax Act. | ||||||
16 | Of the remainder of the moneys received by the Department | ||||||
17 | pursuant to this Act, 75% thereof shall be paid into the | ||||||
18 | General Revenue Fund of the State Treasury and 25% shall be | ||||||
19 | reserved in a special account and used only for the transfer to | ||||||
20 | the Common School Fund as part of the monthly transfer from the | ||||||
21 | General Revenue Fund in accordance with Section 8a of the | ||||||
22 | State Finance Act. | ||||||
23 | As soon as possible after the first day of each month, upon | ||||||
24 | certification of the Department of Revenue, the Comptroller | ||||||
25 | shall order transferred and the Treasurer shall transfer from | ||||||
26 | the General Revenue Fund to the Motor Fuel Tax Fund an amount |
| |||||||
| |||||||
1 | equal to 1.7% of 80% of the net revenue realized under this Act | ||||||
2 | for the second preceding month. Beginning April 1, 2000, this | ||||||
3 | transfer is no longer required and shall not be made. | ||||||
4 | Net revenue realized for a month shall be the revenue | ||||||
5 | collected by the State pursuant to this Act, less the amount | ||||||
6 | paid out during that month as refunds to taxpayers for | ||||||
7 | overpayment of liability. | ||||||
8 | (Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23.) | ||||||
9 | Section 800-20. The Service Occupation Tax Act is amended | ||||||
10 | by changing Section 9 as follows: | ||||||
11 | (35 ILCS 115/9) (from Ch. 120, par. 439.109) | ||||||
12 | Sec. 9. Each serviceman required or authorized to collect | ||||||
13 | the tax herein imposed shall pay to the Department the amount | ||||||
14 | of such tax at the time when he is required to file his return | ||||||
15 | for the period during which such tax was collectible, less a | ||||||
16 | discount of 2.1% prior to January 1, 1990, and 1.75% on and | ||||||
17 | after January 1, 1990, or $5 per calendar year, whichever is | ||||||
18 | greater, which is allowed to reimburse the serviceman for | ||||||
19 | expenses incurred in collecting the tax, keeping records, | ||||||
20 | preparing and filing returns, remitting the tax , and supplying | ||||||
21 | data to the Department on request. When determining the | ||||||
22 | discount allowed under this Section, servicemen shall include | ||||||
23 | the amount of tax that would have been due at the 1% rate but | ||||||
24 | for the 0% rate imposed under Public Act 102-700 this |
| |||||||
| |||||||
1 | amendatory Act of the 102nd General Assembly . The discount | ||||||
2 | under this Section is not allowed for the 1.25% portion of | ||||||
3 | taxes paid on aviation fuel that is subject to the revenue use | ||||||
4 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The | ||||||
5 | discount allowed under this Section is allowed only for | ||||||
6 | returns that are filed in the manner required by this Act. The | ||||||
7 | Department may disallow the discount for servicemen whose | ||||||
8 | certificate of registration is revoked at the time the return | ||||||
9 | is filed, but only if the Department's decision to revoke the | ||||||
10 | certificate of registration has become final. | ||||||
11 | Where such tangible personal property is sold under a | ||||||
12 | conditional sales contract, or under any other form of sale | ||||||
13 | wherein the payment of the principal sum, or a part thereof, is | ||||||
14 | extended beyond the close of the period for which the return is | ||||||
15 | filed, the serviceman, in collecting the tax may collect, for | ||||||
16 | each tax return period, only the tax applicable to the part of | ||||||
17 | the selling price actually received during such tax return | ||||||
18 | period. | ||||||
19 | Except as provided hereinafter in this Section, on or | ||||||
20 | before the twentieth day of each calendar month, such | ||||||
21 | serviceman shall file a return for the preceding calendar | ||||||
22 | month in accordance with reasonable rules and regulations to | ||||||
23 | be promulgated by the Department of Revenue. Such return shall | ||||||
24 | be filed on a form prescribed by the Department and shall | ||||||
25 | contain such information as the Department may reasonably | ||||||
26 | require. The return shall include the gross receipts which |
| |||||||
| |||||||
1 | were received during the preceding calendar month or quarter | ||||||
2 | on the following items upon which tax would have been due but | ||||||
3 | for the 0% rate imposed under Public Act 102-700 this | ||||||
4 | amendatory Act of the 102nd General Assembly : (i) food for | ||||||
5 | human consumption that is to be consumed off the premises | ||||||
6 | where it is sold (other than alcoholic beverages, food | ||||||
7 | consisting of or infused with adult use cannabis, soft drinks, | ||||||
8 | and food that has been prepared for immediate consumption); | ||||||
9 | and (ii) food prepared for immediate consumption and | ||||||
10 | transferred incident to a sale of service subject to this Act | ||||||
11 | or the Service Use Tax Act by an entity licensed under the | ||||||
12 | Hospital Licensing Act, the Nursing Home Care Act, the | ||||||
13 | Assisted Living and Shared Housing Act, the ID/DD Community | ||||||
14 | Care Act, the MC/DD Act, the Specialized Mental Health | ||||||
15 | Rehabilitation Act of 2013, or the Child Care Act of 1969, or | ||||||
16 | an entity that holds a permit issued pursuant to the Life Care | ||||||
17 | Facilities Act. The return shall also include the amount of | ||||||
18 | tax that would have been due on the items listed in the | ||||||
19 | previous sentence but for the 0% rate imposed under Public Act | ||||||
20 | 102-700 this amendatory Act of the 102nd General Assembly . | ||||||
21 | On and after January 1, 2018, with respect to servicemen | ||||||
22 | whose annual gross receipts average $20,000 or more, all | ||||||
23 | returns required to be filed pursuant to this Act shall be | ||||||
24 | filed electronically. Servicemen who demonstrate that they do | ||||||
25 | not have access to the Internet or demonstrate hardship in | ||||||
26 | filing electronically may petition the Department to waive the |
| |||||||
| |||||||
1 | electronic filing requirement. | ||||||
2 | The Department may require returns to be filed on a | ||||||
3 | quarterly basis. If so required, a return for each calendar | ||||||
4 | quarter shall be filed on or before the twentieth day of the | ||||||
5 | calendar month following the end of such calendar quarter. The | ||||||
6 | taxpayer shall also file a return with the Department for each | ||||||
7 | of the first two months of each calendar quarter, on or before | ||||||
8 | the twentieth day of the following calendar month, stating: | ||||||
9 | 1. The name of the seller; | ||||||
10 | 2. The address of the principal place of business from | ||||||
11 | which he engages in business as a serviceman in this | ||||||
12 | State; | ||||||
13 | 3. The total amount of taxable receipts received by | ||||||
14 | him during the preceding calendar month, including | ||||||
15 | receipts from charge and time sales, but less all | ||||||
16 | deductions allowed by law; | ||||||
17 | 4. The amount of credit provided in Section 2d of this | ||||||
18 | Act; | ||||||
19 | 5. The amount of tax due; | ||||||
20 | 5-5. The signature of the taxpayer; and | ||||||
21 | 6. Such other reasonable information as the Department | ||||||
22 | may require. | ||||||
23 | Each serviceman required or authorized to collect the tax | ||||||
24 | herein imposed on aviation fuel acquired as an incident to the | ||||||
25 | purchase of a service in this State during the preceding | ||||||
26 | calendar month shall, instead of reporting and paying tax as |
| |||||||
| |||||||
1 | otherwise required by this Section, report and pay such tax on | ||||||
2 | a separate aviation fuel tax return. The requirements related | ||||||
3 | to the return shall be as otherwise provided in this Section. | ||||||
4 | Notwithstanding any other provisions of this Act to the | ||||||
5 | contrary, servicemen transferring aviation fuel incident to | ||||||
6 | sales of service shall file all aviation fuel tax returns and | ||||||
7 | shall make all aviation fuel tax payments by electronic means | ||||||
8 | in the manner and form required by the Department. For | ||||||
9 | purposes of this Section, "aviation fuel" means jet fuel and | ||||||
10 | aviation gasoline. | ||||||
11 | If a taxpayer fails to sign a return within 30 days after | ||||||
12 | the proper notice and demand for signature by the Department, | ||||||
13 | the return shall be considered valid and any amount shown to be | ||||||
14 | due on the return shall be deemed assessed. | ||||||
15 | Notwithstanding any other provision of this Act to the | ||||||
16 | contrary, servicemen subject to tax on cannabis shall file all | ||||||
17 | cannabis tax returns and shall make all cannabis tax payments | ||||||
18 | by electronic means in the manner and form required by the | ||||||
19 | Department. | ||||||
20 | Notwithstanding any other provision of this Act to the | ||||||
21 | contrary, retailers subject to tax on hemp concentrate, | ||||||
22 | intermediate hemp products, or hemp concentrate derived | ||||||
23 | products shall file all tax returns and shall make all tax | ||||||
24 | payments on hemp concentrate, intermediate hemp products, and | ||||||
25 | hemp concentrate derived products by electronic means in the | ||||||
26 | manner and form required by the Department. |
| |||||||
| |||||||
1 | Prior to October 1, 2003, and on and after September 1, | ||||||
2 | 2004 a serviceman may accept a Manufacturer's Purchase Credit | ||||||
3 | certification from a purchaser in satisfaction of Service Use | ||||||
4 | Tax as provided in Section 3-70 of the Service Use Tax Act if | ||||||
5 | the purchaser provides the appropriate documentation as | ||||||
6 | required by Section 3-70 of the Service Use Tax Act. A | ||||||
7 | Manufacturer's Purchase Credit certification, accepted prior | ||||||
8 | to October 1, 2003 or on or after September 1, 2004 by a | ||||||
9 | serviceman as provided in Section 3-70 of the Service Use Tax | ||||||
10 | Act, may be used by that serviceman to satisfy Service | ||||||
11 | Occupation Tax liability in the amount claimed in the | ||||||
12 | certification, not to exceed 6.25% of the receipts subject to | ||||||
13 | tax from a qualifying purchase. A Manufacturer's Purchase | ||||||
14 | Credit reported on any original or amended return filed under | ||||||
15 | this Act after October 20, 2003 for reporting periods prior to | ||||||
16 | September 1, 2004 shall be disallowed. Manufacturer's Purchase | ||||||
17 | Credit reported on annual returns due on or after January 1, | ||||||
18 | 2005 will be disallowed for periods prior to September 1, | ||||||
19 | 2004. No Manufacturer's Purchase Credit may be used after | ||||||
20 | September 30, 2003 through August 31, 2004 to satisfy any tax | ||||||
21 | liability imposed under this Act, including any audit | ||||||
22 | liability. | ||||||
23 | Beginning on July 1, 2023 and through December 31, 2032, a | ||||||
24 | serviceman may accept a Sustainable Aviation Fuel Purchase | ||||||
25 | Credit certification from an air common carrier-purchaser in | ||||||
26 | satisfaction of Service Use Tax as provided in Section 3-72 of |
| |||||||
| |||||||
1 | the Service Use Tax Act if the purchaser provides the | ||||||
2 | appropriate documentation as required by Section 3-72 of the | ||||||
3 | Service Use Tax Act. A Sustainable Aviation Fuel Purchase | ||||||
4 | Credit certification accepted by a serviceman in accordance | ||||||
5 | with this paragraph may be used by that serviceman to satisfy | ||||||
6 | service occupation tax liability (but not in satisfaction of | ||||||
7 | penalty or interest) in the amount claimed in the | ||||||
8 | certification, not to exceed 6.25% of the receipts subject to | ||||||
9 | tax from a sale of aviation fuel. In addition, for a sale of | ||||||
10 | aviation fuel to qualify to earn the Sustainable Aviation Fuel | ||||||
11 | Purchase Credit, servicemen must retain in their books and | ||||||
12 | records a certification from the producer of the aviation fuel | ||||||
13 | that the aviation fuel sold by the serviceman and for which a | ||||||
14 | sustainable aviation fuel purchase credit was earned meets the | ||||||
15 | definition of sustainable aviation fuel under Section 3-72 of | ||||||
16 | the Service Use Tax Act. The documentation must include detail | ||||||
17 | sufficient for the Department to determine the number of | ||||||
18 | gallons of sustainable aviation fuel sold. | ||||||
19 | If the serviceman's average monthly tax liability to the | ||||||
20 | Department does not exceed $200, the Department may authorize | ||||||
21 | his returns to be filed on a quarter annual basis, with the | ||||||
22 | return for January, February , and March of a given year being | ||||||
23 | due by April 20 of such year; with the return for April, May , | ||||||
24 | and June of a given year being due by July 20 of such year; | ||||||
25 | with the return for July, August , and September of a given year | ||||||
26 | being due by October 20 of such year, and with the return for |
| |||||||
| |||||||
1 | October, November , and December of a given year being due by | ||||||
2 | January 20 of the following year. | ||||||
3 | If the serviceman's average monthly tax liability to the | ||||||
4 | Department does not exceed $50, the Department may authorize | ||||||
5 | his returns to be filed on an annual basis, with the return for | ||||||
6 | a given year being due by January 20 of the following year. | ||||||
7 | Such quarter annual and annual returns, as to form and | ||||||
8 | substance, shall be subject to the same requirements as | ||||||
9 | monthly returns. | ||||||
10 | Notwithstanding any other provision in this Act concerning | ||||||
11 | the time within which a serviceman may file his return, in the | ||||||
12 | case of any serviceman who ceases to engage in a kind of | ||||||
13 | business which makes him responsible for filing returns under | ||||||
14 | this Act, such serviceman shall file a final return under this | ||||||
15 | Act with the Department not more than one 1 month after | ||||||
16 | discontinuing such business. | ||||||
17 | Beginning October 1, 1993, a taxpayer who has an average | ||||||
18 | monthly tax liability of $150,000 or more shall make all | ||||||
19 | payments required by rules of the Department by electronic | ||||||
20 | funds transfer. Beginning October 1, 1994, a taxpayer who has | ||||||
21 | an average monthly tax liability of $100,000 or more shall | ||||||
22 | make all payments required by rules of the Department by | ||||||
23 | electronic funds transfer. Beginning October 1, 1995, a | ||||||
24 | taxpayer who has an average monthly tax liability of $50,000 | ||||||
25 | or more shall make all payments required by rules of the | ||||||
26 | Department by electronic funds transfer. Beginning October 1, |
| |||||||
| |||||||
1 | 2000, a taxpayer who has an annual tax liability of $200,000 or | ||||||
2 | more shall make all payments required by rules of the | ||||||
3 | Department by electronic funds transfer. The term "annual tax | ||||||
4 | liability" shall be the sum of the taxpayer's liabilities | ||||||
5 | under this Act, and under all other State and local occupation | ||||||
6 | and use tax laws administered by the Department, for the | ||||||
7 | immediately preceding calendar year. The term "average monthly | ||||||
8 | tax liability" means the sum of the taxpayer's liabilities | ||||||
9 | under this Act, and under all other State and local occupation | ||||||
10 | and use tax laws administered by the Department, for the | ||||||
11 | immediately preceding calendar year divided by 12. Beginning | ||||||
12 | on October 1, 2002, a taxpayer who has a tax liability in the | ||||||
13 | amount set forth in subsection (b) of Section 2505-210 of the | ||||||
14 | Department of Revenue Law shall make all payments required by | ||||||
15 | rules of the Department by electronic funds transfer. | ||||||
16 | Before August 1 of each year beginning in 1993, the | ||||||
17 | Department shall notify all taxpayers required to make | ||||||
18 | payments by electronic funds transfer. All taxpayers required | ||||||
19 | to make payments by electronic funds transfer shall make those | ||||||
20 | payments for a minimum of one year beginning on October 1. | ||||||
21 | Any taxpayer not required to make payments by electronic | ||||||
22 | funds transfer may make payments by electronic funds transfer | ||||||
23 | with the permission of the Department. | ||||||
24 | All taxpayers required to make payment by electronic funds | ||||||
25 | transfer and any taxpayers authorized to voluntarily make | ||||||
26 | payments by electronic funds transfer shall make those |
| |||||||
| |||||||
1 | payments in the manner authorized by the Department. | ||||||
2 | The Department shall adopt such rules as are necessary to | ||||||
3 | effectuate a program of electronic funds transfer and the | ||||||
4 | requirements of this Section. | ||||||
5 | Where a serviceman collects the tax with respect to the | ||||||
6 | selling price of tangible personal property which he sells and | ||||||
7 | the purchaser thereafter returns such tangible personal | ||||||
8 | property and the serviceman refunds the selling price thereof | ||||||
9 | to the purchaser, such serviceman shall also refund, to the | ||||||
10 | purchaser, the tax so collected from the purchaser. When | ||||||
11 | filing his return for the period in which he refunds such tax | ||||||
12 | to the purchaser, the serviceman may deduct the amount of the | ||||||
13 | tax so refunded by him to the purchaser from any other Service | ||||||
14 | Occupation Tax, Service Use Tax, Retailers' Occupation Tax , or | ||||||
15 | Use Tax which such serviceman may be required to pay or remit | ||||||
16 | to the Department, as shown by such return, provided that the | ||||||
17 | amount of the tax to be deducted shall previously have been | ||||||
18 | remitted to the Department by such serviceman. If the | ||||||
19 | serviceman shall not previously have remitted the amount of | ||||||
20 | such tax to the Department, he shall be entitled to no | ||||||
21 | deduction hereunder upon refunding such tax to the purchaser. | ||||||
22 | If experience indicates such action to be practicable, the | ||||||
23 | Department may prescribe and furnish a combination or joint | ||||||
24 | return which will enable servicemen, who are required to file | ||||||
25 | returns hereunder and also under the Retailers' Occupation Tax | ||||||
26 | Act, the Use Tax Act , or the Service Use Tax Act, to furnish |
| |||||||
| |||||||
1 | all the return information required by all said Acts on the one | ||||||
2 | form. | ||||||
3 | Where the serviceman has more than one business registered | ||||||
4 | with the Department under separate registrations hereunder, | ||||||
5 | such serviceman shall file separate returns for each | ||||||
6 | registered business. | ||||||
7 | Beginning January 1, 1990, each month the Department shall | ||||||
8 | pay into the Local Government Tax Fund the revenue realized | ||||||
9 | for the preceding month from the 1% tax imposed under this Act. | ||||||
10 | Beginning January 1, 1990, each month the Department shall | ||||||
11 | pay into the County and Mass Transit District Fund 4% of the | ||||||
12 | revenue realized for the preceding month from the 6.25% | ||||||
13 | general rate on sales of tangible personal property other than | ||||||
14 | aviation fuel sold on or after December 1, 2019. This | ||||||
15 | exception for aviation fuel only applies for so long as the | ||||||
16 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
17 | 47133 are binding on the State. | ||||||
18 | Beginning August 1, 2000, each month the Department shall | ||||||
19 | pay into the County and Mass Transit District Fund 20% of the | ||||||
20 | net revenue realized for the preceding month from the 1.25% | ||||||
21 | rate on the selling price of motor fuel and gasohol. | ||||||
22 | Beginning January 1, 1990, each month the Department shall | ||||||
23 | pay into the Local Government Tax Fund 16% of the revenue | ||||||
24 | realized for the preceding month from the 6.25% general rate | ||||||
25 | on transfers of tangible personal property other than aviation | ||||||
26 | fuel sold on or after December 1, 2019. This exception for |
| |||||||
| |||||||
1 | aviation fuel only applies for so long as the revenue use | ||||||
2 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are | ||||||
3 | binding on the State. | ||||||
4 | For aviation fuel sold on or after December 1, 2019, each | ||||||
5 | month the Department shall pay into the State Aviation Program | ||||||
6 | Fund 20% of the net revenue realized for the preceding month | ||||||
7 | from the 6.25% general rate on the selling price of aviation | ||||||
8 | fuel, less an amount estimated by the Department to be | ||||||
9 | required for refunds of the 20% portion of the tax on aviation | ||||||
10 | fuel under this Act, which amount shall be deposited into the | ||||||
11 | Aviation Fuel Sales Tax Refund Fund. The Department shall only | ||||||
12 | pay moneys into the State Aviation Program Fund and the | ||||||
13 | Aviation Fuel Sales Tax Refund Fund under this Act for so long | ||||||
14 | as the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
15 | U.S.C. 47133 are binding on the State. | ||||||
16 | Beginning August 1, 2000, each month the Department shall | ||||||
17 | pay into the Local Government Tax Fund 80% of the net revenue | ||||||
18 | realized for the preceding month from the 1.25% rate on the | ||||||
19 | selling price of motor fuel and gasohol. | ||||||
20 | Beginning October 1, 2009, each month the Department shall | ||||||
21 | pay into the Capital Projects Fund an amount that is equal to | ||||||
22 | an amount estimated by the Department to represent 80% of the | ||||||
23 | net revenue realized for the preceding month from the sale of | ||||||
24 | candy, grooming and hygiene products, and soft drinks that had | ||||||
25 | been taxed at a rate of 1% prior to September 1, 2009 but that | ||||||
26 | are now taxed at 6.25%. |
| |||||||
| |||||||
1 | Beginning July 1, 2013, each month the Department shall | ||||||
2 | pay into the Underground Storage Tank Fund from the proceeds | ||||||
3 | collected under this Act, the Use Tax Act, the Service Use Tax | ||||||
4 | Act, and the Retailers' Occupation Tax Act an amount equal to | ||||||
5 | the average monthly deficit in the Underground Storage Tank | ||||||
6 | Fund during the prior year, as certified annually by the | ||||||
7 | Illinois Environmental Protection Agency, but the total | ||||||
8 | payment into the Underground Storage Tank Fund under this Act, | ||||||
9 | the Use Tax Act, the Service Use Tax Act, and the Retailers' | ||||||
10 | Occupation Tax Act shall not exceed $18,000,000 in any State | ||||||
11 | fiscal year. As used in this paragraph, the "average monthly | ||||||
12 | deficit" shall be equal to the difference between the average | ||||||
13 | monthly claims for payment by the fund and the average monthly | ||||||
14 | revenues deposited into the fund, excluding payments made | ||||||
15 | pursuant to this paragraph. | ||||||
16 | Beginning July 1, 2015, of the remainder of the moneys | ||||||
17 | received by the Department under the Use Tax Act, the Service | ||||||
18 | Use Tax Act, this Act, and the Retailers' Occupation Tax Act, | ||||||
19 | each month the Department shall deposit $500,000 into the | ||||||
20 | State Crime Laboratory Fund. | ||||||
21 | Of the remainder of the moneys received by the Department | ||||||
22 | pursuant to this Act, (a) 1.75% thereof shall be paid into the | ||||||
23 | Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on | ||||||
24 | and after July 1, 1989, 3.8% thereof shall be paid into the | ||||||
25 | Build Illinois Fund; provided, however, that if in any fiscal | ||||||
26 | year the sum of (1) the aggregate of 2.2% or 3.8%, as the case |
| |||||||
| |||||||
1 | may be, of the moneys received by the Department and required | ||||||
2 | to be paid into the Build Illinois Fund pursuant to Section 3 | ||||||
3 | of the Retailers' Occupation Tax Act, Section 9 of the Use Tax | ||||||
4 | Act, Section 9 of the Service Use Tax Act, and Section 9 of the | ||||||
5 | Service Occupation Tax Act, such Acts being hereinafter called | ||||||
6 | the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case | ||||||
7 | may be, of moneys being hereinafter called the "Tax Act | ||||||
8 | Amount", and (2) the amount transferred to the Build Illinois | ||||||
9 | Fund from the State and Local Sales Tax Reform Fund shall be | ||||||
10 | less than the Annual Specified Amount (as defined in Section 3 | ||||||
11 | of the Retailers' Occupation Tax Act), an amount equal to the | ||||||
12 | difference shall be immediately paid into the Build Illinois | ||||||
13 | Fund from other moneys received by the Department pursuant to | ||||||
14 | the Tax Acts; and further provided, that if on the last | ||||||
15 | business day of any month the sum of (1) the Tax Act Amount | ||||||
16 | required to be deposited into the Build Illinois Account in | ||||||
17 | the Build Illinois Fund during such month and (2) the amount | ||||||
18 | transferred during such month to the Build Illinois Fund from | ||||||
19 | the State and Local Sales Tax Reform Fund shall have been less | ||||||
20 | than 1/12 of the Annual Specified Amount, an amount equal to | ||||||
21 | the difference shall be immediately paid into the Build | ||||||
22 | Illinois Fund from other moneys received by the Department | ||||||
23 | pursuant to the Tax Acts; and, further provided, that in no | ||||||
24 | event shall the payments required under the preceding proviso | ||||||
25 | result in aggregate payments into the Build Illinois Fund | ||||||
26 | pursuant to this clause (b) for any fiscal year in excess of |
| |||||||
| |||||||
1 | the greater of (i) the Tax Act Amount or (ii) the Annual | ||||||
2 | Specified Amount for such fiscal year; and, further provided, | ||||||
3 | that the amounts payable into the Build Illinois Fund under | ||||||
4 | this clause (b) shall be payable only until such time as the | ||||||
5 | aggregate amount on deposit under each trust indenture | ||||||
6 | securing Bonds issued and outstanding pursuant to the Build | ||||||
7 | Illinois Bond Act is sufficient, taking into account any | ||||||
8 | future investment income, to fully provide, in accordance with | ||||||
9 | such indenture, for the defeasance of or the payment of the | ||||||
10 | principal of, premium, if any, and interest on the Bonds | ||||||
11 | secured by such indenture and on any Bonds expected to be | ||||||
12 | issued thereafter and all fees and costs payable with respect | ||||||
13 | thereto, all as certified by the Director of the Bureau of the | ||||||
14 | Budget (now Governor's Office of Management and Budget). If on | ||||||
15 | the last business day of any month in which Bonds are | ||||||
16 | outstanding pursuant to the Build Illinois Bond Act, the | ||||||
17 | aggregate of the moneys deposited in the Build Illinois Bond | ||||||
18 | Account in the Build Illinois Fund in such month shall be less | ||||||
19 | than the amount required to be transferred in such month from | ||||||
20 | the Build Illinois Bond Account to the Build Illinois Bond | ||||||
21 | Retirement and Interest Fund pursuant to Section 13 of the | ||||||
22 | Build Illinois Bond Act, an amount equal to such deficiency | ||||||
23 | shall be immediately paid from other moneys received by the | ||||||
24 | Department pursuant to the Tax Acts to the Build Illinois | ||||||
25 | Fund; provided, however, that any amounts paid to the Build | ||||||
26 | Illinois Fund in any fiscal year pursuant to this sentence |
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
1 | shall be deemed to constitute payments pursuant to clause (b) | ||||||||||||||||||||||||||
2 | of the preceding sentence and shall reduce the amount | ||||||||||||||||||||||||||
3 | otherwise payable for such fiscal year pursuant to clause (b) | ||||||||||||||||||||||||||
4 | of the preceding sentence. The moneys received by the | ||||||||||||||||||||||||||
5 | Department pursuant to this Act and required to be deposited | ||||||||||||||||||||||||||
6 | into the Build Illinois Fund are subject to the pledge, claim | ||||||||||||||||||||||||||
7 | and charge set forth in Section 12 of the Build Illinois Bond | ||||||||||||||||||||||||||
8 | Act. | ||||||||||||||||||||||||||
9 | Subject to payment of amounts into the Build Illinois Fund | ||||||||||||||||||||||||||
10 | as provided in the preceding paragraph or in any amendment | ||||||||||||||||||||||||||
11 | thereto hereafter enacted, the following specified monthly | ||||||||||||||||||||||||||
12 | installment of the amount requested in the certificate of the | ||||||||||||||||||||||||||
13 | Chairman of the Metropolitan Pier and Exposition Authority | ||||||||||||||||||||||||||
14 | provided under Section 8.25f of the State Finance Act, but not | ||||||||||||||||||||||||||
15 | in excess of the sums designated as "Total Deposit", shall be | ||||||||||||||||||||||||||
16 | deposited in the aggregate from collections under Section 9 of | ||||||||||||||||||||||||||
17 | the Use Tax Act, Section 9 of the Service Use Tax Act, Section | ||||||||||||||||||||||||||
18 | 9 of the Service Occupation Tax Act, and Section 3 of the | ||||||||||||||||||||||||||
19 | Retailers' Occupation Tax Act into the McCormick Place | ||||||||||||||||||||||||||
20 | Expansion Project Fund in the specified fiscal years. | ||||||||||||||||||||||||||
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23 | Beginning July 20, 1993 and in each month of each fiscal | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
24 | year thereafter, one-eighth of the amount requested in the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
25 | certificate of the Chairman of the Metropolitan Pier and | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
26 | Exposition Authority for that fiscal year, less the amount |
| |||||||
| |||||||
1 | deposited into the McCormick Place Expansion Project Fund by | ||||||
2 | the State Treasurer in the respective month under subsection | ||||||
3 | (g) of Section 13 of the Metropolitan Pier and Exposition | ||||||
4 | Authority Act, plus cumulative deficiencies in the deposits | ||||||
5 | required under this Section for previous months and years, | ||||||
6 | shall be deposited into the McCormick Place Expansion Project | ||||||
7 | Fund, until the full amount requested for the fiscal year, but | ||||||
8 | not in excess of the amount specified above as "Total | ||||||
9 | Deposit", has been deposited. | ||||||
10 | Subject to payment of amounts into the Capital Projects | ||||||
11 | Fund, the Build Illinois Fund, and the McCormick Place | ||||||
12 | Expansion Project Fund pursuant to the preceding paragraphs or | ||||||
13 | in any amendments thereto hereafter enacted, for aviation fuel | ||||||
14 | sold on or after December 1, 2019, the Department shall each | ||||||
15 | month deposit into the Aviation Fuel Sales Tax Refund Fund an | ||||||
16 | amount estimated by the Department to be required for refunds | ||||||
17 | of the 80% portion of the tax on aviation fuel under this Act. | ||||||
18 | The Department shall only deposit moneys into the Aviation | ||||||
19 | Fuel Sales Tax Refund Fund under this paragraph for so long as | ||||||
20 | the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
21 | U.S.C. 47133 are binding on the State. | ||||||
22 | Subject to payment of amounts into the Build Illinois Fund | ||||||
23 | and the McCormick Place Expansion Project Fund pursuant to the | ||||||
24 | preceding paragraphs or in any amendments thereto hereafter | ||||||
25 | enacted, beginning July 1, 1993 and ending on September 30, | ||||||
26 | 2013, the Department shall each month pay into the Illinois |
| |||||||
| |||||||
1 | Tax Increment Fund 0.27% of 80% of the net revenue realized for | ||||||
2 | the preceding month from the 6.25% general rate on the selling | ||||||
3 | price of tangible personal property. | ||||||
4 | Subject to payment of amounts into the Build Illinois | ||||||
5 | Fund, the McCormick Place Expansion Project Fund, and the | ||||||
6 | Illinois Tax Increment Fund pursuant to the preceding | ||||||
7 | paragraphs or in any amendments to this Section hereafter | ||||||
8 | enacted, beginning on the first day of the first calendar | ||||||
9 | month to occur on or after August 26, 2014 (the effective date | ||||||
10 | of Public Act 98-1098), each month, from the collections made | ||||||
11 | under Section 9 of the Use Tax Act, Section 9 of the Service | ||||||
12 | Use Tax Act, Section 9 of the Service Occupation Tax Act, and | ||||||
13 | Section 3 of the Retailers' Occupation Tax Act, the Department | ||||||
14 | shall pay into the Tax Compliance and Administration Fund, to | ||||||
15 | be used, subject to appropriation, to fund additional auditors | ||||||
16 | and compliance personnel at the Department of Revenue, an | ||||||
17 | amount equal to 1/12 of 5% of 80% of the cash receipts | ||||||
18 | collected during the preceding fiscal year by the Audit Bureau | ||||||
19 | of the Department under the Use Tax Act, the Service Use Tax | ||||||
20 | Act, the Service Occupation Tax Act, the Retailers' Occupation | ||||||
21 | Tax Act, and associated local occupation and use taxes | ||||||
22 | administered by the Department. | ||||||
23 | Subject to payments of amounts into the Build Illinois | ||||||
24 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
25 | Tax Increment Fund, and the Tax Compliance and Administration | ||||||
26 | Fund as provided in this Section, beginning on July 1, 2018 the |
| |||||||
| |||||||
1 | Department shall pay each month into the Downstate Public | ||||||
2 | Transportation Fund the moneys required to be so paid under | ||||||
3 | Section 2-3 of the Downstate Public Transportation Act. | ||||||
4 | Subject to successful execution and delivery of a | ||||||
5 | public-private agreement between the public agency and private | ||||||
6 | entity and completion of the civic build, beginning on July 1, | ||||||
7 | 2023, of the remainder of the moneys received by the | ||||||
8 | Department under the Use Tax Act, the Service Use Tax Act, the | ||||||
9 | Service Occupation Tax Act, and this Act, the Department shall | ||||||
10 | deposit the following specified deposits in the aggregate from | ||||||
11 | collections under the Use Tax Act, the Service Use Tax Act, the | ||||||
12 | Service Occupation Tax Act, and the Retailers' Occupation Tax | ||||||
13 | Act, as required under Section 8.25g of the State Finance Act | ||||||
14 | for distribution consistent with the Public-Private | ||||||
15 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
16 | The moneys received by the Department pursuant to this Act and | ||||||
17 | required to be deposited into the Civic and Transit | ||||||
18 | Infrastructure Fund are subject to the pledge, claim and | ||||||
19 | charge set forth in Section 25-55 of the Public-Private | ||||||
20 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
21 | As used in this paragraph, "civic build", "private entity", | ||||||
22 | "public-private agreement", and "public agency" have the | ||||||
23 | meanings provided in Section 25-10 of the Public-Private | ||||||
24 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
25 | Fiscal Year ............................Total Deposit | ||||||
26 | 2024 ....................................$200,000,000 |
| |||||||
| |||||||
1 | 2025 ....................................$206,000,000 | ||||||
2 | 2026 ....................................$212,200,000 | ||||||
3 | 2027 ....................................$218,500,000 | ||||||
4 | 2028 ....................................$225,100,000 | ||||||
5 | 2029 ....................................$288,700,000 | ||||||
6 | 2030 ....................................$298,900,000 | ||||||
7 | 2031 ....................................$309,300,000 | ||||||
8 | 2032 ....................................$320,100,000 | ||||||
9 | 2033 ....................................$331,200,000 | ||||||
10 | 2034 ....................................$341,200,000 | ||||||
11 | 2035 ....................................$351,400,000 | ||||||
12 | 2036 ....................................$361,900,000 | ||||||
13 | 2037 ....................................$372,800,000 | ||||||
14 | 2038 ....................................$384,000,000 | ||||||
15 | 2039 ....................................$395,500,000 | ||||||
16 | 2040 ....................................$407,400,000 | ||||||
17 | 2041 ....................................$419,600,000 | ||||||
18 | 2042 ....................................$432,200,000 | ||||||
19 | 2043 ....................................$445,100,000 | ||||||
20 | Beginning July 1, 2021 and until July 1, 2022, subject to | ||||||
21 | the payment of amounts into the County and Mass Transit | ||||||
22 | District Fund, the Local Government Tax Fund, the Build | ||||||
23 | Illinois Fund, the McCormick Place Expansion Project Fund, the | ||||||
24 | Illinois Tax Increment Fund, and the Tax Compliance and | ||||||
25 | Administration Fund as provided in this Section, the | ||||||
26 | Department shall pay each month into the Road Fund the amount |
| |||||||
| |||||||
1 | estimated to represent 16% of the net revenue realized from | ||||||
2 | the taxes imposed on motor fuel and gasohol. Beginning July 1, | ||||||
3 | 2022 and until July 1, 2023, subject to the payment of amounts | ||||||
4 | into the County and Mass Transit District Fund, the Local | ||||||
5 | Government Tax Fund, the Build Illinois Fund, the McCormick | ||||||
6 | Place Expansion Project Fund, the Illinois Tax Increment Fund, | ||||||
7 | and the Tax Compliance and Administration Fund as provided in | ||||||
8 | this Section, the Department shall pay each month into the | ||||||
9 | Road Fund the amount estimated to represent 32% of the net | ||||||
10 | revenue realized from the taxes imposed on motor fuel and | ||||||
11 | gasohol. Beginning July 1, 2023 and until July 1, 2024, | ||||||
12 | subject to the payment of amounts into the County and Mass | ||||||
13 | Transit District Fund, the Local Government Tax Fund, the | ||||||
14 | Build Illinois Fund, the McCormick Place Expansion Project | ||||||
15 | Fund, the Illinois Tax Increment Fund, and the Tax Compliance | ||||||
16 | and Administration Fund as provided in this Section, the | ||||||
17 | Department shall pay each month into the Road Fund the amount | ||||||
18 | estimated to represent 48% of the net revenue realized from | ||||||
19 | the taxes imposed on motor fuel and gasohol. Beginning July 1, | ||||||
20 | 2024 and until July 1, 2025, subject to the payment of amounts | ||||||
21 | into the County and Mass Transit District Fund, the Local | ||||||
22 | Government Tax Fund, the Build Illinois Fund, the McCormick | ||||||
23 | Place Expansion Project Fund, the Illinois Tax Increment Fund, | ||||||
24 | and the Tax Compliance and Administration Fund as provided in | ||||||
25 | this Section, the Department shall pay each month into the | ||||||
26 | Road Fund the amount estimated to represent 64% of the net |
| |||||||
| |||||||
1 | revenue realized from the taxes imposed on motor fuel and | ||||||
2 | gasohol. Beginning on July 1, 2025, subject to the payment of | ||||||
3 | amounts into the County and Mass Transit District Fund, the | ||||||
4 | Local Government Tax Fund, the Build Illinois Fund, the | ||||||
5 | McCormick Place Expansion Project Fund, the Illinois Tax | ||||||
6 | Increment Fund, and the Tax Compliance and Administration Fund | ||||||
7 | as provided in this Section, the Department shall pay each | ||||||
8 | month into the Road Fund the amount estimated to represent 80% | ||||||
9 | of the net revenue realized from the taxes imposed on motor | ||||||
10 | fuel and gasohol. As used in this paragraph "motor fuel" has | ||||||
11 | the meaning given to that term in Section 1.1 of the Motor Fuel | ||||||
12 | Tax Law, and "gasohol" has the meaning given to that term in | ||||||
13 | Section 3-40 of the Use Tax Act. | ||||||
14 | Of the remainder of the moneys received by the Department | ||||||
15 | pursuant to this Act, 75% shall be paid into the General | ||||||
16 | Revenue Fund of the State treasury Treasury and 25% shall be | ||||||
17 | reserved in a special account and used only for the transfer to | ||||||
18 | the Common School Fund as part of the monthly transfer from the | ||||||
19 | General Revenue Fund in accordance with Section 8a of the | ||||||
20 | State Finance Act. | ||||||
21 | The Department may, upon separate written notice to a | ||||||
22 | taxpayer, require the taxpayer to prepare and file with the | ||||||
23 | Department on a form prescribed by the Department within not | ||||||
24 | less than 60 days after receipt of the notice an annual | ||||||
25 | information return for the tax year specified in the notice. | ||||||
26 | Such annual return to the Department shall include a statement |
| |||||||
| |||||||
1 | of gross receipts as shown by the taxpayer's last federal | ||||||
2 | Federal income tax return. If the total receipts of the | ||||||
3 | business as reported in the federal Federal income tax return | ||||||
4 | do not agree with the gross receipts reported to the | ||||||
5 | Department of Revenue for the same period, the taxpayer shall | ||||||
6 | attach to his annual return a schedule showing a | ||||||
7 | reconciliation of the 2 amounts and the reasons for the | ||||||
8 | difference. The taxpayer's annual return to the Department | ||||||
9 | shall also disclose the cost of goods sold by the taxpayer | ||||||
10 | during the year covered by such return, opening and closing | ||||||
11 | inventories of such goods for such year, cost of goods used | ||||||
12 | from stock or taken from stock and given away by the taxpayer | ||||||
13 | during such year, pay roll information of the taxpayer's | ||||||
14 | business during such year and any additional reasonable | ||||||
15 | information which the Department deems would be helpful in | ||||||
16 | determining the accuracy of the monthly, quarterly or annual | ||||||
17 | returns filed by such taxpayer as hereinbefore provided for in | ||||||
18 | this Section. | ||||||
19 | If the annual information return required by this Section | ||||||
20 | is not filed when and as required, the taxpayer shall be liable | ||||||
21 | as follows: | ||||||
22 | (i) Until January 1, 1994, the taxpayer shall be | ||||||
23 | liable for a penalty equal to 1/6 of 1% of the tax due from | ||||||
24 | such taxpayer under this Act during the period to be | ||||||
25 | covered by the annual return for each month or fraction of | ||||||
26 | a month until such return is filed as required, the |
| |||||||
| |||||||
1 | penalty to be assessed and collected in the same manner as | ||||||
2 | any other penalty provided for in this Act. | ||||||
3 | (ii) On and after January 1, 1994, the taxpayer shall | ||||||
4 | be liable for a penalty as described in Section 3-4 of the | ||||||
5 | Uniform Penalty and Interest Act. | ||||||
6 | The chief executive officer, proprietor, owner , or highest | ||||||
7 | ranking manager shall sign the annual return to certify the | ||||||
8 | accuracy of the information contained therein. Any person who | ||||||
9 | willfully signs the annual return containing false or | ||||||
10 | inaccurate information shall be guilty of perjury and punished | ||||||
11 | accordingly. The annual return form prescribed by the | ||||||
12 | Department shall include a warning that the person signing the | ||||||
13 | return may be liable for perjury. | ||||||
14 | The foregoing portion of this Section concerning the | ||||||
15 | filing of an annual information return shall not apply to a | ||||||
16 | serviceman who is not required to file an income tax return | ||||||
17 | with the United States Government. | ||||||
18 | As soon as possible after the first day of each month, upon | ||||||
19 | certification of the Department of Revenue, the Comptroller | ||||||
20 | shall order transferred and the Treasurer shall transfer from | ||||||
21 | the General Revenue Fund to the Motor Fuel Tax Fund an amount | ||||||
22 | equal to 1.7% of 80% of the net revenue realized under this Act | ||||||
23 | for the second preceding month. Beginning April 1, 2000, this | ||||||
24 | transfer is no longer required and shall not be made. | ||||||
25 | Net revenue realized for a month shall be the revenue | ||||||
26 | collected by the State pursuant to this Act, less the amount |
| |||||||
| |||||||
1 | paid out during that month as refunds to taxpayers for | ||||||
2 | overpayment of liability. | ||||||
3 | For greater simplicity of administration, it shall be | ||||||
4 | permissible for manufacturers, importers and wholesalers whose | ||||||
5 | products are sold by numerous servicemen in Illinois, and who | ||||||
6 | wish to do so, to assume the responsibility for accounting and | ||||||
7 | paying to the Department all tax accruing under this Act with | ||||||
8 | respect to such sales, if the servicemen who are affected do | ||||||
9 | not make written objection to the Department to this | ||||||
10 | arrangement. | ||||||
11 | (Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23; | ||||||
12 | 103-363, eff. 7-28-23; revised 9-25-23.) | ||||||
13 | Section 800-25. The Retailers' Occupation Tax Act is | ||||||
14 | amended by changing Section 3 as follows: | ||||||
15 | (35 ILCS 120/3) (from Ch. 120, par. 442) | ||||||
16 | Sec. 3. Except as provided in this Section, on or before | ||||||
17 | the twentieth day of each calendar month, every person engaged | ||||||
18 | in the business of selling tangible personal property at | ||||||
19 | retail in this State during the preceding calendar month shall | ||||||
20 | file a return with the Department, stating: | ||||||
21 | 1. The name of the seller; | ||||||
22 | 2. His residence address and the address of his | ||||||
23 | principal place of business and the address of the | ||||||
24 | principal place of business (if that is a different |
| |||||||
| |||||||
1 | address) from which he engages in the business of selling | ||||||
2 | tangible personal property at retail in this State; | ||||||
3 | 3. Total amount of receipts received by him during the | ||||||
4 | preceding calendar month or quarter, as the case may be, | ||||||
5 | from sales of tangible personal property, and from | ||||||
6 | services furnished, by him during such preceding calendar | ||||||
7 | month or quarter; | ||||||
8 | 4. Total amount received by him during the preceding | ||||||
9 | calendar month or quarter on charge and time sales of | ||||||
10 | tangible personal property, and from services furnished, | ||||||
11 | by him prior to the month or quarter for which the return | ||||||
12 | is filed; | ||||||
13 | 5. Deductions allowed by law; | ||||||
14 | 6. Gross receipts which were received by him during | ||||||
15 | the preceding calendar month or quarter and upon the basis | ||||||
16 | of which the tax is imposed, including gross receipts on | ||||||
17 | food for human consumption that is to be consumed off the | ||||||
18 | premises where it is sold (other than alcoholic beverages, | ||||||
19 | food consisting of or infused with adult use cannabis, | ||||||
20 | soft drinks, and food that has been prepared for immediate | ||||||
21 | consumption) which were received during the preceding | ||||||
22 | calendar month or quarter and upon which tax would have | ||||||
23 | been due but for the 0% rate imposed under Public Act | ||||||
24 | 102-700; | ||||||
25 | 7. The amount of credit provided in Section 2d of this | ||||||
26 | Act; |
| |||||||
| |||||||
1 | 8. The amount of tax due, including the amount of tax | ||||||
2 | that would have been due on food for human consumption | ||||||
3 | that is to be consumed off the premises where it is sold | ||||||
4 | (other than alcoholic beverages, food consisting of or | ||||||
5 | infused with adult use cannabis, soft drinks, and food | ||||||
6 | that has been prepared for immediate consumption) but for | ||||||
7 | the 0% rate imposed under Public Act 102-700; | ||||||
8 | 9. The signature of the taxpayer; and | ||||||
9 | 10. Such other reasonable information as the | ||||||
10 | Department may require. | ||||||
11 | On and after January 1, 2018, except for returns required | ||||||
12 | to be filed prior to January 1, 2023 for motor vehicles, | ||||||
13 | watercraft, aircraft, and trailers that are required to be | ||||||
14 | registered with an agency of this State, with respect to | ||||||
15 | retailers whose annual gross receipts average $20,000 or more, | ||||||
16 | all returns required to be filed pursuant to this Act shall be | ||||||
17 | filed electronically. On and after January 1, 2023, with | ||||||
18 | respect to retailers whose annual gross receipts average | ||||||
19 | $20,000 or more, all returns required to be filed pursuant to | ||||||
20 | this Act, including, but not limited to, returns for motor | ||||||
21 | vehicles, watercraft, aircraft, and trailers that are required | ||||||
22 | to be registered with an agency of this State, shall be filed | ||||||
23 | electronically. Retailers who demonstrate that they do not | ||||||
24 | have access to the Internet or demonstrate hardship in filing | ||||||
25 | electronically may petition the Department to waive the | ||||||
26 | electronic filing requirement. |
| |||||||
| |||||||
1 | If a taxpayer fails to sign a return within 30 days after | ||||||
2 | the proper notice and demand for signature by the Department, | ||||||
3 | the return shall be considered valid and any amount shown to be | ||||||
4 | due on the return shall be deemed assessed. | ||||||
5 | Each return shall be accompanied by the statement of | ||||||
6 | prepaid tax issued pursuant to Section 2e for which credit is | ||||||
7 | claimed. | ||||||
8 | Prior to October 1, 2003 , and on and after September 1, | ||||||
9 | 2004 , a retailer may accept a Manufacturer's Purchase Credit | ||||||
10 | certification from a purchaser in satisfaction of Use Tax as | ||||||
11 | provided in Section 3-85 of the Use Tax Act if the purchaser | ||||||
12 | provides the appropriate documentation as required by Section | ||||||
13 | 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit | ||||||
14 | certification, accepted by a retailer prior to October 1, 2003 | ||||||
15 | and on and after September 1, 2004 as provided in Section 3-85 | ||||||
16 | of the Use Tax Act, may be used by that retailer to satisfy | ||||||
17 | Retailers' Occupation Tax liability in the amount claimed in | ||||||
18 | the certification, not to exceed 6.25% of the receipts subject | ||||||
19 | to tax from a qualifying purchase. A Manufacturer's Purchase | ||||||
20 | Credit reported on any original or amended return filed under | ||||||
21 | this Act after October 20, 2003 for reporting periods prior to | ||||||
22 | September 1, 2004 shall be disallowed. Manufacturer's Purchase | ||||||
23 | Credit reported on annual returns due on or after January 1, | ||||||
24 | 2005 will be disallowed for periods prior to September 1, | ||||||
25 | 2004. No Manufacturer's Purchase Credit may be used after | ||||||
26 | September 30, 2003 through August 31, 2004 to satisfy any tax |
| |||||||
| |||||||
1 | liability imposed under this Act, including any audit | ||||||
2 | liability. | ||||||
3 | Beginning on July 1, 2023 and through December 31, 2032, a | ||||||
4 | retailer may accept a Sustainable Aviation Fuel Purchase | ||||||
5 | Credit certification from an air common carrier-purchaser in | ||||||
6 | satisfaction of Use Tax on aviation fuel as provided in | ||||||
7 | Section 3-87 of the Use Tax Act if the purchaser provides the | ||||||
8 | appropriate documentation as required by Section 3-87 of the | ||||||
9 | Use Tax Act. A Sustainable Aviation Fuel Purchase Credit | ||||||
10 | certification accepted by a retailer in accordance with this | ||||||
11 | paragraph may be used by that retailer to satisfy Retailers' | ||||||
12 | Occupation Tax liability (but not in satisfaction of penalty | ||||||
13 | or interest) in the amount claimed in the certification, not | ||||||
14 | to exceed 6.25% of the receipts subject to tax from a sale of | ||||||
15 | aviation fuel. In addition, for a sale of aviation fuel to | ||||||
16 | qualify to earn the Sustainable Aviation Fuel Purchase Credit, | ||||||
17 | retailers must retain in their books and records a | ||||||
18 | certification from the producer of the aviation fuel that the | ||||||
19 | aviation fuel sold by the retailer and for which a sustainable | ||||||
20 | aviation fuel purchase credit was earned meets the definition | ||||||
21 | of sustainable aviation fuel under Section 3-87 of the Use Tax | ||||||
22 | Act. The documentation must include detail sufficient for the | ||||||
23 | Department to determine the number of gallons of sustainable | ||||||
24 | aviation fuel sold. | ||||||
25 | The Department may require returns to be filed on a | ||||||
26 | quarterly basis. If so required, a return for each calendar |
| |||||||
| |||||||
1 | quarter shall be filed on or before the twentieth day of the | ||||||
2 | calendar month following the end of such calendar quarter. The | ||||||
3 | taxpayer shall also file a return with the Department for each | ||||||
4 | of the first 2 two months of each calendar quarter, on or | ||||||
5 | before the twentieth day of the following calendar month, | ||||||
6 | stating: | ||||||
7 | 1. The name of the seller; | ||||||
8 | 2. The address of the principal place of business from | ||||||
9 | which he engages in the business of selling tangible | ||||||
10 | personal property at retail in this State; | ||||||
11 | 3. The total amount of taxable receipts received by | ||||||
12 | him during the preceding calendar month from sales of | ||||||
13 | tangible personal property by him during such preceding | ||||||
14 | calendar month, including receipts from charge and time | ||||||
15 | sales, but less all deductions allowed by law; | ||||||
16 | 4. The amount of credit provided in Section 2d of this | ||||||
17 | Act; | ||||||
18 | 5. The amount of tax due; and | ||||||
19 | 6. Such other reasonable information as the Department | ||||||
20 | may require. | ||||||
21 | Every person engaged in the business of selling aviation | ||||||
22 | fuel at retail in this State during the preceding calendar | ||||||
23 | month shall, instead of reporting and paying tax as otherwise | ||||||
24 | required by this Section, report and pay such tax on a separate | ||||||
25 | aviation fuel tax return. The requirements related to the | ||||||
26 | return shall be as otherwise provided in this Section. |
| |||||||
| |||||||
1 | Notwithstanding any other provisions of this Act to the | ||||||
2 | contrary, retailers selling aviation fuel shall file all | ||||||
3 | aviation fuel tax returns and shall make all aviation fuel tax | ||||||
4 | payments by electronic means in the manner and form required | ||||||
5 | by the Department. For purposes of this Section, "aviation | ||||||
6 | fuel" means jet fuel and aviation gasoline. | ||||||
7 | Beginning on October 1, 2003, any person who is not a | ||||||
8 | licensed distributor, importing distributor, or manufacturer, | ||||||
9 | as defined in the Liquor Control Act of 1934, but is engaged in | ||||||
10 | the business of selling, at retail, alcoholic liquor shall | ||||||
11 | file a statement with the Department of Revenue, in a format | ||||||
12 | and at a time prescribed by the Department, showing the total | ||||||
13 | amount paid for alcoholic liquor purchased during the | ||||||
14 | preceding month and such other information as is reasonably | ||||||
15 | required by the Department. The Department may adopt rules to | ||||||
16 | require that this statement be filed in an electronic or | ||||||
17 | telephonic format. Such rules may provide for exceptions from | ||||||
18 | the filing requirements of this paragraph. For the purposes of | ||||||
19 | this paragraph, the term "alcoholic liquor" shall have the | ||||||
20 | meaning prescribed in the Liquor Control Act of 1934. | ||||||
21 | Beginning on October 1, 2003, every distributor, importing | ||||||
22 | distributor, and manufacturer of alcoholic liquor as defined | ||||||
23 | in the Liquor Control Act of 1934, shall file a statement with | ||||||
24 | the Department of Revenue, no later than the 10th day of the | ||||||
25 | month for the preceding month during which transactions | ||||||
26 | occurred, by electronic means, showing the total amount of |
| |||||||
| |||||||
1 | gross receipts from the sale of alcoholic liquor sold or | ||||||
2 | distributed during the preceding month to purchasers; | ||||||
3 | identifying the purchaser to whom it was sold or distributed; | ||||||
4 | the purchaser's tax registration number; and such other | ||||||
5 | information reasonably required by the Department. A | ||||||
6 | distributor, importing distributor, or manufacturer of | ||||||
7 | alcoholic liquor must personally deliver, mail, or provide by | ||||||
8 | electronic means to each retailer listed on the monthly | ||||||
9 | statement a report containing a cumulative total of that | ||||||
10 | distributor's, importing distributor's, or manufacturer's | ||||||
11 | total sales of alcoholic liquor to that retailer no later than | ||||||
12 | the 10th day of the month for the preceding month during which | ||||||
13 | the transaction occurred. The distributor, importing | ||||||
14 | distributor, or manufacturer shall notify the retailer as to | ||||||
15 | the method by which the distributor, importing distributor, or | ||||||
16 | manufacturer will provide the sales information. If the | ||||||
17 | retailer is unable to receive the sales information by | ||||||
18 | electronic means, the distributor, importing distributor, or | ||||||
19 | manufacturer shall furnish the sales information by personal | ||||||
20 | delivery or by mail. For purposes of this paragraph, the term | ||||||
21 | "electronic means" includes, but is not limited to, the use of | ||||||
22 | a secure Internet website, e-mail, or facsimile. | ||||||
23 | If a total amount of less than $1 is payable, refundable or | ||||||
24 | creditable, such amount shall be disregarded if it is less | ||||||
25 | than 50 cents and shall be increased to $1 if it is 50 cents or | ||||||
26 | more. |
| |||||||
| |||||||
1 | Notwithstanding any other provision of this Act to the | ||||||
2 | contrary, retailers subject to tax on cannabis shall file all | ||||||
3 | cannabis tax returns and shall make all cannabis tax payments | ||||||
4 | by electronic means in the manner and form required by the | ||||||
5 | Department. | ||||||
6 | Notwithstanding any other provision of this Act to the | ||||||
7 | contrary, retailers subject to tax on hemp concentrate, | ||||||
8 | intermediate hemp products, or hemp concentrate derived | ||||||
9 | products shall file all tax returns and shall make all tax | ||||||
10 | payments on hemp concentrate, intermediate hemp products, and | ||||||
11 | hemp concentrate derived products by electronic means in the | ||||||
12 | manner and form required by the Department. | ||||||
13 | Beginning October 1, 1993, a taxpayer who has an average | ||||||
14 | monthly tax liability of $150,000 or more shall make all | ||||||
15 | payments required by rules of the Department by electronic | ||||||
16 | funds transfer. Beginning October 1, 1994, a taxpayer who has | ||||||
17 | an average monthly tax liability of $100,000 or more shall | ||||||
18 | make all payments required by rules of the Department by | ||||||
19 | electronic funds transfer. Beginning October 1, 1995, a | ||||||
20 | taxpayer who has an average monthly tax liability of $50,000 | ||||||
21 | or more shall make all payments required by rules of the | ||||||
22 | Department by electronic funds transfer. Beginning October 1, | ||||||
23 | 2000, a taxpayer who has an annual tax liability of $200,000 or | ||||||
24 | more shall make all payments required by rules of the | ||||||
25 | Department by electronic funds transfer. The term "annual tax | ||||||
26 | liability" shall be the sum of the taxpayer's liabilities |
| |||||||
| |||||||
1 | under this Act, and under all other State and local occupation | ||||||
2 | and use tax laws administered by the Department, for the | ||||||
3 | immediately preceding calendar year. The term "average monthly | ||||||
4 | tax liability" shall be the sum of the taxpayer's liabilities | ||||||
5 | under this Act, and under all other State and local occupation | ||||||
6 | and use tax laws administered by the Department, for the | ||||||
7 | immediately preceding calendar year divided by 12. Beginning | ||||||
8 | on October 1, 2002, a taxpayer who has a tax liability in the | ||||||
9 | amount set forth in subsection (b) of Section 2505-210 of the | ||||||
10 | Department of Revenue Law shall make all payments required by | ||||||
11 | rules of the Department by electronic funds transfer. | ||||||
12 | Before August 1 of each year beginning in 1993, the | ||||||
13 | Department shall notify all taxpayers required to make | ||||||
14 | payments by electronic funds transfer. All taxpayers required | ||||||
15 | to make payments by electronic funds transfer shall make those | ||||||
16 | payments for a minimum of one year beginning on October 1. | ||||||
17 | Any taxpayer not required to make payments by electronic | ||||||
18 | funds transfer may make payments by electronic funds transfer | ||||||
19 | with the permission of the Department. | ||||||
20 | All taxpayers required to make payment by electronic funds | ||||||
21 | transfer and any taxpayers authorized to voluntarily make | ||||||
22 | payments by electronic funds transfer shall make those | ||||||
23 | payments in the manner authorized by the Department. | ||||||
24 | The Department shall adopt such rules as are necessary to | ||||||
25 | effectuate a program of electronic funds transfer and the | ||||||
26 | requirements of this Section. |
| |||||||
| |||||||
1 | Any amount which is required to be shown or reported on any | ||||||
2 | return or other document under this Act shall, if such amount | ||||||
3 | is not a whole-dollar amount, be increased to the nearest | ||||||
4 | whole-dollar amount in any case where the fractional part of a | ||||||
5 | dollar is 50 cents or more, and decreased to the nearest | ||||||
6 | whole-dollar amount where the fractional part of a dollar is | ||||||
7 | less than 50 cents. | ||||||
8 | If the retailer is otherwise required to file a monthly | ||||||
9 | return and if the retailer's average monthly tax liability to | ||||||
10 | the Department does not exceed $200, the Department may | ||||||
11 | authorize his returns to be filed on a quarter annual basis, | ||||||
12 | with the return for January, February , and March of a given | ||||||
13 | year being due by April 20 of such year; with the return for | ||||||
14 | April, May , and June of a given year being due by July 20 of | ||||||
15 | such year; with the return for July, August , and September of a | ||||||
16 | given year being due by October 20 of such year, and with the | ||||||
17 | return for October, November , and December of a given year | ||||||
18 | being due by January 20 of the following year. | ||||||
19 | If the retailer is otherwise required to file a monthly or | ||||||
20 | quarterly return and if the retailer's average monthly tax | ||||||
21 | liability with the Department does not exceed $50, the | ||||||
22 | Department may authorize his returns to be filed on an annual | ||||||
23 | basis, with the return for a given year being due by January 20 | ||||||
24 | of the following year. | ||||||
25 | Such quarter annual and annual returns, as to form and | ||||||
26 | substance, shall be subject to the same requirements as |
| |||||||
| |||||||
1 | monthly returns. | ||||||
2 | Notwithstanding any other provision in this Act concerning | ||||||
3 | the time within which a retailer may file his return, in the | ||||||
4 | case of any retailer who ceases to engage in a kind of business | ||||||
5 | which makes him responsible for filing returns under this Act, | ||||||
6 | such retailer shall file a final return under this Act with the | ||||||
7 | Department not more than one month after discontinuing such | ||||||
8 | business. | ||||||
9 | Where the same person has more than one business | ||||||
10 | registered with the Department under separate registrations | ||||||
11 | under this Act, such person may not file each return that is | ||||||
12 | due as a single return covering all such registered | ||||||
13 | businesses, but shall file separate returns for each such | ||||||
14 | registered business. | ||||||
15 | In addition, with respect to motor vehicles, watercraft, | ||||||
16 | aircraft, and trailers that are required to be registered with | ||||||
17 | an agency of this State, except as otherwise provided in this | ||||||
18 | Section, every retailer selling this kind of tangible personal | ||||||
19 | property shall file, with the Department, upon a form to be | ||||||
20 | prescribed and supplied by the Department, a separate return | ||||||
21 | for each such item of tangible personal property which the | ||||||
22 | retailer sells, except that if, in the same transaction, (i) a | ||||||
23 | retailer of aircraft, watercraft, motor vehicles , or trailers | ||||||
24 | transfers more than one aircraft, watercraft, motor vehicle , | ||||||
25 | or trailer to another aircraft, watercraft, motor vehicle | ||||||
26 | retailer , or trailer retailer for the purpose of resale or |
| |||||||
| |||||||
1 | (ii) a retailer of aircraft, watercraft, motor vehicles, or | ||||||
2 | trailers transfers more than one aircraft, watercraft, motor | ||||||
3 | vehicle, or trailer to a purchaser for use as a qualifying | ||||||
4 | rolling stock as provided in Section 2-5 of this Act, then that | ||||||
5 | seller may report the transfer of all aircraft, watercraft, | ||||||
6 | motor vehicles , or trailers involved in that transaction to | ||||||
7 | the Department on the same uniform invoice-transaction | ||||||
8 | reporting return form. For purposes of this Section, | ||||||
9 | "watercraft" means a Class 2, Class 3, or Class 4 watercraft as | ||||||
10 | defined in Section 3-2 of the Boat Registration and Safety | ||||||
11 | Act, a personal watercraft, or any boat equipped with an | ||||||
12 | inboard motor. | ||||||
13 | In addition, with respect to motor vehicles, watercraft, | ||||||
14 | aircraft, and trailers that are required to be registered with | ||||||
15 | an agency of this State, every person who is engaged in the | ||||||
16 | business of leasing or renting such items and who, in | ||||||
17 | connection with such business, sells any such item to a | ||||||
18 | retailer for the purpose of resale is, notwithstanding any | ||||||
19 | other provision of this Section to the contrary, authorized to | ||||||
20 | meet the return-filing requirement of this Act by reporting | ||||||
21 | the transfer of all the aircraft, watercraft, motor vehicles, | ||||||
22 | or trailers transferred for resale during a month to the | ||||||
23 | Department on the same uniform invoice-transaction reporting | ||||||
24 | return form on or before the 20th of the month following the | ||||||
25 | month in which the transfer takes place. Notwithstanding any | ||||||
26 | other provision of this Act to the contrary, all returns filed |
| |||||||
| |||||||
1 | under this paragraph must be filed by electronic means in the | ||||||
2 | manner and form as required by the Department. | ||||||
3 | Any retailer who sells only motor vehicles, watercraft, | ||||||
4 | aircraft, or trailers that are required to be registered with | ||||||
5 | an agency of this State, so that all retailers' occupation tax | ||||||
6 | liability is required to be reported, and is reported, on such | ||||||
7 | transaction reporting returns and who is not otherwise | ||||||
8 | required to file monthly or quarterly returns, need not file | ||||||
9 | monthly or quarterly returns. However, those retailers shall | ||||||
10 | be required to file returns on an annual basis. | ||||||
11 | The transaction reporting return, in the case of motor | ||||||
12 | vehicles or trailers that are required to be registered with | ||||||
13 | an agency of this State, shall be the same document as the | ||||||
14 | Uniform Invoice referred to in Section 5-402 of the Illinois | ||||||
15 | Vehicle Code and must show the name and address of the seller; | ||||||
16 | the name and address of the purchaser; the amount of the | ||||||
17 | selling price including the amount allowed by the retailer for | ||||||
18 | traded-in property, if any; the amount allowed by the retailer | ||||||
19 | for the traded-in tangible personal property, if any, to the | ||||||
20 | extent to which Section 1 of this Act allows an exemption for | ||||||
21 | the value of traded-in property; the balance payable after | ||||||
22 | deducting such trade-in allowance from the total selling | ||||||
23 | price; the amount of tax due from the retailer with respect to | ||||||
24 | such transaction; the amount of tax collected from the | ||||||
25 | purchaser by the retailer on such transaction (or satisfactory | ||||||
26 | evidence that such tax is not due in that particular instance, |
| |||||||
| |||||||
1 | if that is claimed to be the fact); the place and date of the | ||||||
2 | sale; a sufficient identification of the property sold; such | ||||||
3 | other information as is required in Section 5-402 of the | ||||||
4 | Illinois Vehicle Code, and such other information as the | ||||||
5 | Department may reasonably require. | ||||||
6 | The transaction reporting return in the case of watercraft | ||||||
7 | or aircraft must show the name and address of the seller; the | ||||||
8 | name and address of the purchaser; the amount of the selling | ||||||
9 | price including the amount allowed by the retailer for | ||||||
10 | traded-in property, if any; the amount allowed by the retailer | ||||||
11 | for the traded-in tangible personal property, if any, to the | ||||||
12 | extent to which Section 1 of this Act allows an exemption for | ||||||
13 | the value of traded-in property; the balance payable after | ||||||
14 | deducting such trade-in allowance from the total selling | ||||||
15 | price; the amount of tax due from the retailer with respect to | ||||||
16 | such transaction; the amount of tax collected from the | ||||||
17 | purchaser by the retailer on such transaction (or satisfactory | ||||||
18 | evidence that such tax is not due in that particular instance, | ||||||
19 | if that is claimed to be the fact); the place and date of the | ||||||
20 | sale, a sufficient identification of the property sold, and | ||||||
21 | such other information as the Department may reasonably | ||||||
22 | require. | ||||||
23 | Such transaction reporting return shall be filed not later | ||||||
24 | than 20 days after the day of delivery of the item that is | ||||||
25 | being sold, but may be filed by the retailer at any time sooner | ||||||
26 | than that if he chooses to do so. The transaction reporting |
| |||||||
| |||||||
1 | return and tax remittance or proof of exemption from the | ||||||
2 | Illinois use tax may be transmitted to the Department by way of | ||||||
3 | the State agency with which, or State officer with whom the | ||||||
4 | tangible personal property must be titled or registered (if | ||||||
5 | titling or registration is required) if the Department and | ||||||
6 | such agency or State officer determine that this procedure | ||||||
7 | will expedite the processing of applications for title or | ||||||
8 | registration. | ||||||
9 | With each such transaction reporting return, the retailer | ||||||
10 | shall remit the proper amount of tax due (or shall submit | ||||||
11 | satisfactory evidence that the sale is not taxable if that is | ||||||
12 | the case), to the Department or its agents, whereupon the | ||||||
13 | Department shall issue, in the purchaser's name, a use tax | ||||||
14 | receipt (or a certificate of exemption if the Department is | ||||||
15 | satisfied that the particular sale is tax exempt) which such | ||||||
16 | purchaser may submit to the agency with which, or State | ||||||
17 | officer with whom, he must title or register the tangible | ||||||
18 | personal property that is involved (if titling or registration | ||||||
19 | is required) in support of such purchaser's application for an | ||||||
20 | Illinois certificate or other evidence of title or | ||||||
21 | registration to such tangible personal property. | ||||||
22 | No retailer's failure or refusal to remit tax under this | ||||||
23 | Act precludes a user, who has paid the proper tax to the | ||||||
24 | retailer, from obtaining his certificate of title or other | ||||||
25 | evidence of title or registration (if titling or registration | ||||||
26 | is required) upon satisfying the Department that such user has |
| |||||||
| |||||||
1 | paid the proper tax (if tax is due) to the retailer. The | ||||||
2 | Department shall adopt appropriate rules to carry out the | ||||||
3 | mandate of this paragraph. | ||||||
4 | If the user who would otherwise pay tax to the retailer | ||||||
5 | wants the transaction reporting return filed and the payment | ||||||
6 | of the tax or proof of exemption made to the Department before | ||||||
7 | the retailer is willing to take these actions and such user has | ||||||
8 | not paid the tax to the retailer, such user may certify to the | ||||||
9 | fact of such delay by the retailer and may (upon the Department | ||||||
10 | being satisfied of the truth of such certification) transmit | ||||||
11 | the information required by the transaction reporting return | ||||||
12 | and the remittance for tax or proof of exemption directly to | ||||||
13 | the Department and obtain his tax receipt or exemption | ||||||
14 | determination, in which event the transaction reporting return | ||||||
15 | and tax remittance (if a tax payment was required) shall be | ||||||
16 | credited by the Department to the proper retailer's account | ||||||
17 | with the Department, but without the 2.1% or 1.75% discount | ||||||
18 | provided for in this Section being allowed. When the user pays | ||||||
19 | the tax directly to the Department, he shall pay the tax in the | ||||||
20 | same amount and in the same form in which it would be remitted | ||||||
21 | if the tax had been remitted to the Department by the retailer. | ||||||
22 | Refunds made by the seller during the preceding return | ||||||
23 | period to purchasers, on account of tangible personal property | ||||||
24 | returned to the seller, shall be allowed as a deduction under | ||||||
25 | subdivision 5 of his monthly or quarterly return, as the case | ||||||
26 | may be, in case the seller had theretofore included the |
| |||||||
| |||||||
1 | receipts from the sale of such tangible personal property in a | ||||||
2 | return filed by him and had paid the tax imposed by this Act | ||||||
3 | with respect to such receipts. | ||||||
4 | Where the seller is a corporation, the return filed on | ||||||
5 | behalf of such corporation shall be signed by the president, | ||||||
6 | vice-president, secretary , or treasurer or by the properly | ||||||
7 | accredited agent of such corporation. | ||||||
8 | Where the seller is a limited liability company, the | ||||||
9 | return filed on behalf of the limited liability company shall | ||||||
10 | be signed by a manager, member, or properly accredited agent | ||||||
11 | of the limited liability company. | ||||||
12 | Except as provided in this Section, the retailer filing | ||||||
13 | the return under this Section shall, at the time of filing such | ||||||
14 | return, pay to the Department the amount of tax imposed by this | ||||||
15 | Act less a discount of 2.1% prior to January 1, 1990 and 1.75% | ||||||
16 | on and after January 1, 1990, or $5 per calendar year, | ||||||
17 | whichever is greater, which is allowed to reimburse the | ||||||
18 | retailer for the expenses incurred in keeping records, | ||||||
19 | preparing and filing returns, remitting the tax and supplying | ||||||
20 | data to the Department on request. On and after January 1, | ||||||
21 | 2021, a certified service provider, as defined in the Leveling | ||||||
22 | the Playing Field for Illinois Retail Act, filing the return | ||||||
23 | under this Section on behalf of a remote retailer shall, at the | ||||||
24 | time of such return, pay to the Department the amount of tax | ||||||
25 | imposed by this Act less a discount of 1.75%. A remote retailer | ||||||
26 | using a certified service provider to file a return on its |
| |||||||
| |||||||
1 | behalf, as provided in the Leveling the Playing Field for | ||||||
2 | Illinois Retail Act, is not eligible for the discount. When | ||||||
3 | determining the discount allowed under this Section, retailers | ||||||
4 | shall include the amount of tax that would have been due at the | ||||||
5 | 1% rate but for the 0% rate imposed under Public Act 102-700. | ||||||
6 | When determining the discount allowed under this Section, | ||||||
7 | retailers shall include the amount of tax that would have been | ||||||
8 | due at the 6.25% rate but for the 1.25% rate imposed on sales | ||||||
9 | tax holiday items under Public Act 102-700. The discount under | ||||||
10 | this Section is not allowed for the 1.25% portion of taxes paid | ||||||
11 | on aviation fuel that is subject to the revenue use | ||||||
12 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. Any | ||||||
13 | prepayment made pursuant to Section 2d of this Act shall be | ||||||
14 | included in the amount on which such 2.1% or 1.75% discount is | ||||||
15 | computed. In the case of retailers who report and pay the tax | ||||||
16 | on a transaction by transaction basis, as provided in this | ||||||
17 | Section, such discount shall be taken with each such tax | ||||||
18 | remittance instead of when such retailer files his periodic | ||||||
19 | return. The discount allowed under this Section is allowed | ||||||
20 | only for returns that are filed in the manner required by this | ||||||
21 | Act. The Department may disallow the discount for retailers | ||||||
22 | whose certificate of registration is revoked at the time the | ||||||
23 | return is filed, but only if the Department's decision to | ||||||
24 | revoke the certificate of registration has become final. | ||||||
25 | Before October 1, 2000, if the taxpayer's average monthly | ||||||
26 | tax liability to the Department under this Act, the Use Tax |
| |||||||
| |||||||
1 | Act, the Service Occupation Tax Act, and the Service Use Tax | ||||||
2 | Act, excluding any liability for prepaid sales tax to be | ||||||
3 | remitted in accordance with Section 2d of this Act, was | ||||||
4 | $10,000 or more during the preceding 4 complete calendar | ||||||
5 | quarters, he shall file a return with the Department each | ||||||
6 | month by the 20th day of the month next following the month | ||||||
7 | during which such tax liability is incurred and shall make | ||||||
8 | payments to the Department on or before the 7th, 15th, 22nd and | ||||||
9 | last day of the month during which such liability is incurred. | ||||||
10 | On and after October 1, 2000, if the taxpayer's average | ||||||
11 | monthly tax liability to the Department under this Act, the | ||||||
12 | Use Tax Act, the Service Occupation Tax Act, and the Service | ||||||
13 | Use Tax Act, excluding any liability for prepaid sales tax to | ||||||
14 | be remitted in accordance with Section 2d of this Act, was | ||||||
15 | $20,000 or more during the preceding 4 complete calendar | ||||||
16 | quarters, he shall file a return with the Department each | ||||||
17 | month by the 20th day of the month next following the month | ||||||
18 | during which such tax liability is incurred and shall make | ||||||
19 | payment to the Department on or before the 7th, 15th, 22nd and | ||||||
20 | last day of the month during which such liability is incurred. | ||||||
21 | If the month during which such tax liability is incurred began | ||||||
22 | prior to January 1, 1985, each payment shall be in an amount | ||||||
23 | equal to 1/4 of the taxpayer's actual liability for the month | ||||||
24 | or an amount set by the Department not to exceed 1/4 of the | ||||||
25 | average monthly liability of the taxpayer to the Department | ||||||
26 | for the preceding 4 complete calendar quarters (excluding the |
| |||||||
| |||||||
1 | month of highest liability and the month of lowest liability | ||||||
2 | in such 4 quarter period). If the month during which such tax | ||||||
3 | liability is incurred begins on or after January 1, 1985 and | ||||||
4 | prior to January 1, 1987, each payment shall be in an amount | ||||||
5 | equal to 22.5% of the taxpayer's actual liability for the | ||||||
6 | month or 27.5% of the taxpayer's liability for the same | ||||||
7 | calendar month of the preceding year. If the month during | ||||||
8 | which such tax liability is incurred begins on or after | ||||||
9 | January 1, 1987 and prior to January 1, 1988, each payment | ||||||
10 | shall be in an amount equal to 22.5% of the taxpayer's actual | ||||||
11 | liability for the month or 26.25% of the taxpayer's liability | ||||||
12 | for the same calendar month of the preceding year. If the month | ||||||
13 | during which such tax liability is incurred begins on or after | ||||||
14 | January 1, 1988, and prior to January 1, 1989, or begins on or | ||||||
15 | after January 1, 1996, each payment shall be in an amount equal | ||||||
16 | to 22.5% of the taxpayer's actual liability for the month or | ||||||
17 | 25% of the taxpayer's liability for the same calendar month of | ||||||
18 | the preceding year. If the month during which such tax | ||||||
19 | liability is incurred begins on or after January 1, 1989, and | ||||||
20 | prior to January 1, 1996, each payment shall be in an amount | ||||||
21 | equal to 22.5% of the taxpayer's actual liability for the | ||||||
22 | month or 25% of the taxpayer's liability for the same calendar | ||||||
23 | month of the preceding year or 100% of the taxpayer's actual | ||||||
24 | liability for the quarter monthly reporting period. The amount | ||||||
25 | of such quarter monthly payments shall be credited against the | ||||||
26 | final tax liability of the taxpayer's return for that month. |
| |||||||
| |||||||
1 | Before October 1, 2000, once applicable, the requirement of | ||||||
2 | the making of quarter monthly payments to the Department by | ||||||
3 | taxpayers having an average monthly tax liability of $10,000 | ||||||
4 | or more as determined in the manner provided above shall | ||||||
5 | continue until such taxpayer's average monthly liability to | ||||||
6 | the Department during the preceding 4 complete calendar | ||||||
7 | quarters (excluding the month of highest liability and the | ||||||
8 | month of lowest liability) is less than $9,000, or until such | ||||||
9 | taxpayer's average monthly liability to the Department as | ||||||
10 | computed for each calendar quarter of the 4 preceding complete | ||||||
11 | calendar quarter period is less than $10,000. However, if a | ||||||
12 | taxpayer can show the Department that a substantial change in | ||||||
13 | the taxpayer's business has occurred which causes the taxpayer | ||||||
14 | to anticipate that his average monthly tax liability for the | ||||||
15 | reasonably foreseeable future will fall below the $10,000 | ||||||
16 | threshold stated above, then such taxpayer may petition the | ||||||
17 | Department for a change in such taxpayer's reporting status. | ||||||
18 | On and after October 1, 2000, once applicable, the requirement | ||||||
19 | of the making of quarter monthly payments to the Department by | ||||||
20 | taxpayers having an average monthly tax liability of $20,000 | ||||||
21 | or more as determined in the manner provided above shall | ||||||
22 | continue until such taxpayer's average monthly liability to | ||||||
23 | the Department during the preceding 4 complete calendar | ||||||
24 | quarters (excluding the month of highest liability and the | ||||||
25 | month of lowest liability) is less than $19,000 or until such | ||||||
26 | taxpayer's average monthly liability to the Department as |
| |||||||
| |||||||
1 | computed for each calendar quarter of the 4 preceding complete | ||||||
2 | calendar quarter period is less than $20,000. However, if a | ||||||
3 | taxpayer can show the Department that a substantial change in | ||||||
4 | the taxpayer's business has occurred which causes the taxpayer | ||||||
5 | to anticipate that his average monthly tax liability for the | ||||||
6 | reasonably foreseeable future will fall below the $20,000 | ||||||
7 | threshold stated above, then such taxpayer may petition the | ||||||
8 | Department for a change in such taxpayer's reporting status. | ||||||
9 | The Department shall change such taxpayer's reporting status | ||||||
10 | unless it finds that such change is seasonal in nature and not | ||||||
11 | likely to be long term. Quarter monthly payment status shall | ||||||
12 | be determined under this paragraph as if the rate reduction to | ||||||
13 | 0% in Public Act 102-700 on food for human consumption that is | ||||||
14 | to be consumed off the premises where it is sold (other than | ||||||
15 | alcoholic beverages, food consisting of or infused with adult | ||||||
16 | use cannabis, soft drinks, and food that has been prepared for | ||||||
17 | immediate consumption) had not occurred. For quarter monthly | ||||||
18 | payments due under this paragraph on or after July 1, 2023 and | ||||||
19 | through June 30, 2024, "25% of the taxpayer's liability for | ||||||
20 | the same calendar month of the preceding year" shall be | ||||||
21 | determined as if the rate reduction to 0% in Public Act 102-700 | ||||||
22 | had not occurred. Quarter monthly payment status shall be | ||||||
23 | determined under this paragraph as if the rate reduction to | ||||||
24 | 1.25% in Public Act 102-700 on sales tax holiday items had not | ||||||
25 | occurred. For quarter monthly payments due on or after July 1, | ||||||
26 | 2023 and through June 30, 2024, "25% of the taxpayer's |
| |||||||
| |||||||
1 | liability for the same calendar month of the preceding year" | ||||||
2 | shall be determined as if the rate reduction to 1.25% in Public | ||||||
3 | Act 102-700 on sales tax holiday items had not occurred. If any | ||||||
4 | such quarter monthly payment is not paid at the time or in the | ||||||
5 | amount required by this Section, then the taxpayer shall be | ||||||
6 | liable for penalties and interest on the difference between | ||||||
7 | the minimum amount due as a payment and the amount of such | ||||||
8 | quarter monthly payment actually and timely paid, except | ||||||
9 | insofar as the taxpayer has previously made payments for that | ||||||
10 | month to the Department in excess of the minimum payments | ||||||
11 | previously due as provided in this Section. The Department | ||||||
12 | shall make reasonable rules and regulations to govern the | ||||||
13 | quarter monthly payment amount and quarter monthly payment | ||||||
14 | dates for taxpayers who file on other than a calendar monthly | ||||||
15 | basis. | ||||||
16 | The provisions of this paragraph apply before October 1, | ||||||
17 | 2001. Without regard to whether a taxpayer is required to make | ||||||
18 | quarter monthly payments as specified above, any taxpayer who | ||||||
19 | is required by Section 2d of this Act to collect and remit | ||||||
20 | prepaid taxes and has collected prepaid taxes which average in | ||||||
21 | excess of $25,000 per month during the preceding 2 complete | ||||||
22 | calendar quarters, shall file a return with the Department as | ||||||
23 | required by Section 2f and shall make payments to the | ||||||
24 | Department on or before the 7th, 15th, 22nd and last day of the | ||||||
25 | month during which such liability is incurred. If the month | ||||||
26 | during which such tax liability is incurred began prior to |
| |||||||
| |||||||
1 | September 1, 1985 (the effective date of Public Act 84-221), | ||||||
2 | each payment shall be in an amount not less than 22.5% of the | ||||||
3 | taxpayer's actual liability under Section 2d. If the month | ||||||
4 | during which such tax liability is incurred begins on or after | ||||||
5 | January 1, 1986, each payment shall be in an amount equal to | ||||||
6 | 22.5% of the taxpayer's actual liability for the month or | ||||||
7 | 27.5% of the taxpayer's liability for the same calendar month | ||||||
8 | of the preceding calendar year. If the month during which such | ||||||
9 | tax liability is incurred begins on or after January 1, 1987, | ||||||
10 | each payment shall be in an amount equal to 22.5% of the | ||||||
11 | taxpayer's actual liability for the month or 26.25% of the | ||||||
12 | taxpayer's liability for the same calendar month of the | ||||||
13 | preceding year. The amount of such quarter monthly payments | ||||||
14 | shall be credited against the final tax liability of the | ||||||
15 | taxpayer's return for that month filed under this Section or | ||||||
16 | Section 2f, as the case may be. Once applicable, the | ||||||
17 | requirement of the making of quarter monthly payments to the | ||||||
18 | Department pursuant to this paragraph shall continue until | ||||||
19 | such taxpayer's average monthly prepaid tax collections during | ||||||
20 | the preceding 2 complete calendar quarters is $25,000 or less. | ||||||
21 | If any such quarter monthly payment is not paid at the time or | ||||||
22 | in the amount required, the taxpayer shall be liable for | ||||||
23 | penalties and interest on such difference, except insofar as | ||||||
24 | the taxpayer has previously made payments for that month in | ||||||
25 | excess of the minimum payments previously due. | ||||||
26 | The provisions of this paragraph apply on and after |
| |||||||
| |||||||
1 | October 1, 2001. Without regard to whether a taxpayer is | ||||||
2 | required to make quarter monthly payments as specified above, | ||||||
3 | any taxpayer who is required by Section 2d of this Act to | ||||||
4 | collect and remit prepaid taxes and has collected prepaid | ||||||
5 | taxes that average in excess of $20,000 per month during the | ||||||
6 | preceding 4 complete calendar quarters shall file a return | ||||||
7 | with the Department as required by Section 2f and shall make | ||||||
8 | payments to the Department on or before the 7th, 15th, 22nd , | ||||||
9 | and last day of the month during which the liability is | ||||||
10 | incurred. Each payment shall be in an amount equal to 22.5% of | ||||||
11 | the taxpayer's actual liability for the month or 25% of the | ||||||
12 | taxpayer's liability for the same calendar month of the | ||||||
13 | preceding year. The amount of the quarter monthly payments | ||||||
14 | shall be credited against the final tax liability of the | ||||||
15 | taxpayer's return for that month filed under this Section or | ||||||
16 | Section 2f, as the case may be. Once applicable, the | ||||||
17 | requirement of the making of quarter monthly payments to the | ||||||
18 | Department pursuant to this paragraph shall continue until the | ||||||
19 | taxpayer's average monthly prepaid tax collections during the | ||||||
20 | preceding 4 complete calendar quarters (excluding the month of | ||||||
21 | highest liability and the month of lowest liability) is less | ||||||
22 | than $19,000 or until such taxpayer's average monthly | ||||||
23 | liability to the Department as computed for each calendar | ||||||
24 | quarter of the 4 preceding complete calendar quarters is less | ||||||
25 | than $20,000. If any such quarter monthly payment is not paid | ||||||
26 | at the time or in the amount required, the taxpayer shall be |
| |||||||
| |||||||
1 | liable for penalties and interest on such difference, except | ||||||
2 | insofar as the taxpayer has previously made payments for that | ||||||
3 | month in excess of the minimum payments previously due. | ||||||
4 | If any payment provided for in this Section exceeds the | ||||||
5 | taxpayer's liabilities under this Act, the Use Tax Act, the | ||||||
6 | Service Occupation Tax Act , and the Service Use Tax Act, as | ||||||
7 | shown on an original monthly return, the Department shall, if | ||||||
8 | requested by the taxpayer, issue to the taxpayer a credit | ||||||
9 | memorandum no later than 30 days after the date of payment. The | ||||||
10 | credit evidenced by such credit memorandum may be assigned by | ||||||
11 | the taxpayer to a similar taxpayer under this Act, the Use Tax | ||||||
12 | Act, the Service Occupation Tax Act , or the Service Use Tax | ||||||
13 | Act, in accordance with reasonable rules and regulations to be | ||||||
14 | prescribed by the Department. If no such request is made, the | ||||||
15 | taxpayer may credit such excess payment against tax liability | ||||||
16 | subsequently to be remitted to the Department under this Act, | ||||||
17 | the Use Tax Act, the Service Occupation Tax Act , or the Service | ||||||
18 | Use Tax Act, in accordance with reasonable rules and | ||||||
19 | regulations prescribed by the Department. If the Department | ||||||
20 | subsequently determined that all or any part of the credit | ||||||
21 | taken was not actually due to the taxpayer, the taxpayer's | ||||||
22 | 2.1% and 1.75% vendor's discount shall be reduced by 2.1% or | ||||||
23 | 1.75% of the difference between the credit taken and that | ||||||
24 | actually due, and that taxpayer shall be liable for penalties | ||||||
25 | and interest on such difference. | ||||||
26 | If a retailer of motor fuel is entitled to a credit under |
| |||||||
| |||||||
1 | Section 2d of this Act which exceeds the taxpayer's liability | ||||||
2 | to the Department under this Act for the month for which the | ||||||
3 | taxpayer is filing a return, the Department shall issue the | ||||||
4 | taxpayer a credit memorandum for the excess. | ||||||
5 | Beginning January 1, 1990, each month the Department shall | ||||||
6 | pay into the Local Government Tax Fund, a special fund in the | ||||||
7 | State treasury which is hereby created, the net revenue | ||||||
8 | realized for the preceding month from the 1% tax imposed under | ||||||
9 | this Act. | ||||||
10 | Beginning January 1, 1990, each month the Department shall | ||||||
11 | pay into the County and Mass Transit District Fund, a special | ||||||
12 | fund in the State treasury which is hereby created, 4% of the | ||||||
13 | net revenue realized for the preceding month from the 6.25% | ||||||
14 | general rate other than aviation fuel sold on or after | ||||||
15 | December 1, 2019. This exception for aviation fuel only | ||||||
16 | applies for so long as the revenue use requirements of 49 | ||||||
17 | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State. | ||||||
18 | Beginning August 1, 2000, each month the Department shall | ||||||
19 | pay into the County and Mass Transit District Fund 20% of the | ||||||
20 | net revenue realized for the preceding month from the 1.25% | ||||||
21 | rate on the selling price of motor fuel and gasohol. If, in any | ||||||
22 | month, the tax on sales tax holiday items, as defined in | ||||||
23 | Section 2-8, is imposed at the rate of 1.25%, then the | ||||||
24 | Department shall pay 20% of the net revenue realized for that | ||||||
25 | month from the 1.25% rate on the selling price of sales tax | ||||||
26 | holiday items into the County and Mass Transit District Fund. |
| |||||||
| |||||||
1 | Beginning January 1, 1990, each month the Department shall | ||||||
2 | pay into the Local Government Tax Fund 16% of the net revenue | ||||||
3 | realized for the preceding month from the 6.25% general rate | ||||||
4 | on the selling price of tangible personal property other than | ||||||
5 | aviation fuel sold on or after December 1, 2019. This | ||||||
6 | exception for aviation fuel only applies for so long as the | ||||||
7 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
8 | 47133 are binding on the State. | ||||||
9 | For aviation fuel sold on or after December 1, 2019, each | ||||||
10 | month the Department shall pay into the State Aviation Program | ||||||
11 | Fund 20% of the net revenue realized for the preceding month | ||||||
12 | from the 6.25% general rate on the selling price of aviation | ||||||
13 | fuel, less an amount estimated by the Department to be | ||||||
14 | required for refunds of the 20% portion of the tax on aviation | ||||||
15 | fuel under this Act, which amount shall be deposited into the | ||||||
16 | Aviation Fuel Sales Tax Refund Fund. The Department shall only | ||||||
17 | pay moneys into the State Aviation Program Fund and the | ||||||
18 | Aviation Fuel Sales Tax Refund Fund under this Act for so long | ||||||
19 | as the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
20 | U.S.C. 47133 are binding on the State. | ||||||
21 | Beginning August 1, 2000, each month the Department shall | ||||||
22 | pay into the Local Government Tax Fund 80% of the net revenue | ||||||
23 | realized for the preceding month from the 1.25% rate on the | ||||||
24 | selling price of motor fuel and gasohol. If, in any month, the | ||||||
25 | tax on sales tax holiday items, as defined in Section 2-8, is | ||||||
26 | imposed at the rate of 1.25%, then the Department shall pay 80% |
| |||||||
| |||||||
1 | of the net revenue realized for that month from the 1.25% rate | ||||||
2 | on the selling price of sales tax holiday items into the Local | ||||||
3 | Government Tax Fund. | ||||||
4 | Beginning October 1, 2009, each month the Department shall | ||||||
5 | pay into the Capital Projects Fund an amount that is equal to | ||||||
6 | an amount estimated by the Department to represent 80% of the | ||||||
7 | net revenue realized for the preceding month from the sale of | ||||||
8 | candy, grooming and hygiene products, and soft drinks that had | ||||||
9 | been taxed at a rate of 1% prior to September 1, 2009 but that | ||||||
10 | are now taxed at 6.25%. | ||||||
11 | Beginning July 1, 2011, each month the Department shall | ||||||
12 | pay into the Clean Air Act Permit Fund 80% of the net revenue | ||||||
13 | realized for the preceding month from the 6.25% general rate | ||||||
14 | on the selling price of sorbents used in Illinois in the | ||||||
15 | process of sorbent injection as used to comply with the | ||||||
16 | Environmental Protection Act or the federal Clean Air Act, but | ||||||
17 | the total payment into the Clean Air Act Permit Fund under this | ||||||
18 | Act and the Use Tax Act shall not exceed $2,000,000 in any | ||||||
19 | fiscal year. | ||||||
20 | Beginning July 1, 2013, each month the Department shall | ||||||
21 | pay into the Underground Storage Tank Fund from the proceeds | ||||||
22 | collected under this Act, the Use Tax Act, the Service Use Tax | ||||||
23 | Act, and the Service Occupation Tax Act an amount equal to the | ||||||
24 | average monthly deficit in the Underground Storage Tank Fund | ||||||
25 | during the prior year, as certified annually by the Illinois | ||||||
26 | Environmental Protection Agency, but the total payment into |
| |||||||
| |||||||
1 | the Underground Storage Tank Fund under this Act, the Use Tax | ||||||
2 | Act, the Service Use Tax Act, and the Service Occupation Tax | ||||||
3 | Act shall not exceed $18,000,000 in any State fiscal year. As | ||||||
4 | used in this paragraph, the "average monthly deficit" shall be | ||||||
5 | equal to the difference between the average monthly claims for | ||||||
6 | payment by the fund and the average monthly revenues deposited | ||||||
7 | into the fund, excluding payments made pursuant to this | ||||||
8 | paragraph. | ||||||
9 | Beginning July 1, 2015, of the remainder of the moneys | ||||||
10 | received by the Department under the Use Tax Act, the Service | ||||||
11 | Use Tax Act, the Service Occupation Tax Act, and this Act, each | ||||||
12 | month the Department shall deposit $500,000 into the State | ||||||
13 | Crime Laboratory Fund. | ||||||
14 | Of the remainder of the moneys received by the Department | ||||||
15 | pursuant to this Act, (a) 1.75% thereof shall be paid into the | ||||||
16 | Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on | ||||||
17 | and after July 1, 1989, 3.8% thereof shall be paid into the | ||||||
18 | Build Illinois Fund; provided, however, that if in any fiscal | ||||||
19 | year the sum of (1) the aggregate of 2.2% or 3.8%, as the case | ||||||
20 | may be, of the moneys received by the Department and required | ||||||
21 | to be paid into the Build Illinois Fund pursuant to this Act, | ||||||
22 | Section 9 of the Use Tax Act, Section 9 of the Service Use Tax | ||||||
23 | Act, and Section 9 of the Service Occupation Tax Act, such Acts | ||||||
24 | being hereinafter called the "Tax Acts" and such aggregate of | ||||||
25 | 2.2% or 3.8%, as the case may be, of moneys being hereinafter | ||||||
26 | called the "Tax Act Amount", and (2) the amount transferred to |
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| ||||||||||||||||||||||||||||||||||||||
1 | the Build Illinois Fund from the State and Local Sales Tax | |||||||||||||||||||||||||||||||||||||
2 | Reform Fund shall be less than the Annual Specified Amount (as | |||||||||||||||||||||||||||||||||||||
3 | hereinafter defined), an amount equal to the difference shall | |||||||||||||||||||||||||||||||||||||
4 | be immediately paid into the Build Illinois Fund from other | |||||||||||||||||||||||||||||||||||||
5 | moneys received by the Department pursuant to the Tax Acts; | |||||||||||||||||||||||||||||||||||||
6 | the "Annual Specified Amount" means the amounts specified | |||||||||||||||||||||||||||||||||||||
7 | below for fiscal years 1986 through 1993: | |||||||||||||||||||||||||||||||||||||
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17 | and means the Certified Annual Debt Service Requirement (as | |||||||||||||||||||||||||||||||||||||
18 | defined in Section 13 of the Build Illinois Bond Act) or the | |||||||||||||||||||||||||||||||||||||
19 | Tax Act Amount, whichever is greater, for fiscal year 1994 and | |||||||||||||||||||||||||||||||||||||
20 | each fiscal year thereafter; and further provided, that if on | |||||||||||||||||||||||||||||||||||||
21 | the last business day of any month the sum of (1) the Tax Act | |||||||||||||||||||||||||||||||||||||
22 | Amount required to be deposited into the Build Illinois Bond | |||||||||||||||||||||||||||||||||||||
23 | Account in the Build Illinois Fund during such month and (2) | |||||||||||||||||||||||||||||||||||||
24 | the amount transferred to the Build Illinois Fund from the | |||||||||||||||||||||||||||||||||||||
25 | State and Local Sales Tax Reform Fund shall have been less than | |||||||||||||||||||||||||||||||||||||
26 | 1/12 of the Annual Specified Amount, an amount equal to the |
| |||||||
| |||||||
1 | difference shall be immediately paid into the Build Illinois | ||||||
2 | Fund from other moneys received by the Department pursuant to | ||||||
3 | the Tax Acts; and, further provided, that in no event shall the | ||||||
4 | payments required under the preceding proviso result in | ||||||
5 | aggregate payments into the Build Illinois Fund pursuant to | ||||||
6 | this clause (b) for any fiscal year in excess of the greater of | ||||||
7 | (i) the Tax Act Amount or (ii) the Annual Specified Amount for | ||||||
8 | such fiscal year. The amounts payable into the Build Illinois | ||||||
9 | Fund under clause (b) of the first sentence in this paragraph | ||||||
10 | shall be payable only until such time as the aggregate amount | ||||||
11 | on deposit under each trust indenture securing Bonds issued | ||||||
12 | and outstanding pursuant to the Build Illinois Bond Act is | ||||||
13 | sufficient, taking into account any future investment income, | ||||||
14 | to fully provide, in accordance with such indenture, for the | ||||||
15 | defeasance of or the payment of the principal of, premium, if | ||||||
16 | any, and interest on the Bonds secured by such indenture and on | ||||||
17 | any Bonds expected to be issued thereafter and all fees and | ||||||
18 | costs payable with respect thereto, all as certified by the | ||||||
19 | Director of the Bureau of the Budget (now Governor's Office of | ||||||
20 | Management and Budget). If on the last business day of any | ||||||
21 | month in which Bonds are outstanding pursuant to the Build | ||||||
22 | Illinois Bond Act, the aggregate of moneys deposited in the | ||||||
23 | Build Illinois Bond Account in the Build Illinois Fund in such | ||||||
24 | month shall be less than the amount required to be transferred | ||||||
25 | in such month from the Build Illinois Bond Account to the Build | ||||||
26 | Illinois Bond Retirement and Interest Fund pursuant to Section |
| |||||||
| |||||||
1 | 13 of the Build Illinois Bond Act, an amount equal to such | ||||||
2 | deficiency shall be immediately paid from other moneys | ||||||
3 | received by the Department pursuant to the Tax Acts to the | ||||||
4 | Build Illinois Fund; provided, however, that any amounts paid | ||||||
5 | to the Build Illinois Fund in any fiscal year pursuant to this | ||||||
6 | sentence shall be deemed to constitute payments pursuant to | ||||||
7 | clause (b) of the first sentence of this paragraph and shall | ||||||
8 | reduce the amount otherwise payable for such fiscal year | ||||||
9 | pursuant to that clause (b). The moneys received by the | ||||||
10 | Department pursuant to this Act and required to be deposited | ||||||
11 | into the Build Illinois Fund are subject to the pledge, claim | ||||||
12 | and charge set forth in Section 12 of the Build Illinois Bond | ||||||
13 | Act. | ||||||
14 | Subject to payment of amounts into the Build Illinois Fund | ||||||
15 | as provided in the preceding paragraph or in any amendment | ||||||
16 | thereto hereafter enacted, the following specified monthly | ||||||
17 | installment of the amount requested in the certificate of the | ||||||
18 | Chairman of the Metropolitan Pier and Exposition Authority | ||||||
19 | provided under Section 8.25f of the State Finance Act, but not | ||||||
20 | in excess of sums designated as "Total Deposit", shall be | ||||||
21 | deposited in the aggregate from collections under Section 9 of | ||||||
22 | the Use Tax Act, Section 9 of the Service Use Tax Act, Section | ||||||
23 | 9 of the Service Occupation Tax Act, and Section 3 of the | ||||||
24 | Retailers' Occupation Tax Act into the McCormick Place | ||||||
25 | Expansion Project Fund in the specified fiscal years. | ||||||
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1 | Beginning July 20, 1993 and in each month of each fiscal | ||||||
2 | year thereafter, one-eighth of the amount requested in the | ||||||
3 | certificate of the Chairman of the Metropolitan Pier and | ||||||
4 | Exposition Authority for that fiscal year, less the amount | ||||||
5 | deposited into the McCormick Place Expansion Project Fund by | ||||||
6 | the State Treasurer in the respective month under subsection | ||||||
7 | (g) of Section 13 of the Metropolitan Pier and Exposition | ||||||
8 | Authority Act, plus cumulative deficiencies in the deposits | ||||||
9 | required under this Section for previous months and years, | ||||||
10 | shall be deposited into the McCormick Place Expansion Project | ||||||
11 | Fund, until the full amount requested for the fiscal year, but | ||||||
12 | not in excess of the amount specified above as "Total | ||||||
13 | Deposit", has been deposited. | ||||||
14 | Subject to payment of amounts into the Capital Projects | ||||||
15 | Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, | ||||||
16 | and the McCormick Place Expansion Project Fund pursuant to the | ||||||
17 | preceding paragraphs or in any amendments thereto hereafter | ||||||
18 | enacted, for aviation fuel sold on or after December 1, 2019, | ||||||
19 | the Department shall each month deposit into the Aviation Fuel | ||||||
20 | Sales Tax Refund Fund an amount estimated by the Department to | ||||||
21 | be required for refunds of the 80% portion of the tax on | ||||||
22 | aviation fuel under this Act. The Department shall only | ||||||
23 | deposit moneys into the Aviation Fuel Sales Tax Refund Fund | ||||||
24 | under this paragraph for so long as the revenue use | ||||||
25 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are | ||||||
26 | binding on the State. |
| |||||||
| |||||||
1 | Subject to payment of amounts into the Build Illinois Fund | ||||||
2 | and the McCormick Place Expansion Project Fund pursuant to the | ||||||
3 | preceding paragraphs or in any amendments thereto hereafter | ||||||
4 | enacted, beginning July 1, 1993 and ending on September 30, | ||||||
5 | 2013, the Department shall each month pay into the Illinois | ||||||
6 | Tax Increment Fund 0.27% of 80% of the net revenue realized for | ||||||
7 | the preceding month from the 6.25% general rate on the selling | ||||||
8 | price of tangible personal property. | ||||||
9 | Subject to payment of amounts into the Build Illinois | ||||||
10 | Fund, the McCormick Place Expansion Project Fund, and the | ||||||
11 | Illinois Tax Increment Fund pursuant to the preceding | ||||||
12 | paragraphs or in any amendments to this Section hereafter | ||||||
13 | enacted, beginning on the first day of the first calendar | ||||||
14 | month to occur on or after August 26, 2014 (the effective date | ||||||
15 | of Public Act 98-1098), each month, from the collections made | ||||||
16 | under Section 9 of the Use Tax Act, Section 9 of the Service | ||||||
17 | Use Tax Act, Section 9 of the Service Occupation Tax Act, and | ||||||
18 | Section 3 of the Retailers' Occupation Tax Act, the Department | ||||||
19 | shall pay into the Tax Compliance and Administration Fund, to | ||||||
20 | be used, subject to appropriation, to fund additional auditors | ||||||
21 | and compliance personnel at the Department of Revenue, an | ||||||
22 | amount equal to 1/12 of 5% of 80% of the cash receipts | ||||||
23 | collected during the preceding fiscal year by the Audit Bureau | ||||||
24 | of the Department under the Use Tax Act, the Service Use Tax | ||||||
25 | Act, the Service Occupation Tax Act, the Retailers' Occupation | ||||||
26 | Tax Act, and associated local occupation and use taxes |
| |||||||
| |||||||
1 | administered by the Department. | ||||||
2 | Subject to payments of amounts into the Build Illinois | ||||||
3 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
4 | Tax Increment Fund, the Energy Infrastructure Fund, and the | ||||||
5 | Tax Compliance and Administration Fund as provided in this | ||||||
6 | Section, beginning on July 1, 2018 the Department shall pay | ||||||
7 | each month into the Downstate Public Transportation Fund the | ||||||
8 | moneys required to be so paid under Section 2-3 of the | ||||||
9 | Downstate Public Transportation Act. | ||||||
10 | Subject to successful execution and delivery of a | ||||||
11 | public-private agreement between the public agency and private | ||||||
12 | entity and completion of the civic build, beginning on July 1, | ||||||
13 | 2023, of the remainder of the moneys received by the | ||||||
14 | Department under the Use Tax Act, the Service Use Tax Act, the | ||||||
15 | Service Occupation Tax Act, and this Act, the Department shall | ||||||
16 | deposit the following specified deposits in the aggregate from | ||||||
17 | collections under the Use Tax Act, the Service Use Tax Act, the | ||||||
18 | Service Occupation Tax Act, and the Retailers' Occupation Tax | ||||||
19 | Act, as required under Section 8.25g of the State Finance Act | ||||||
20 | for distribution consistent with the Public-Private | ||||||
21 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
22 | The moneys received by the Department pursuant to this Act and | ||||||
23 | required to be deposited into the Civic and Transit | ||||||
24 | Infrastructure Fund are subject to the pledge, claim and | ||||||
25 | charge set forth in Section 25-55 of the Public-Private | ||||||
26 | Partnership for Civic and Transit Infrastructure Project Act. |
| |||||||
| |||||||
1 | As used in this paragraph, "civic build", "private entity", | ||||||
2 | "public-private agreement", and "public agency" have the | ||||||
3 | meanings provided in Section 25-10 of the Public-Private | ||||||
4 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
5 | Fiscal Year .............................Total Deposit | ||||||
6 | 2024 .....................................$200,000,000 | ||||||
7 | 2025 ....................................$206,000,000 | ||||||
8 | 2026 ....................................$212,200,000 | ||||||
9 | 2027 ....................................$218,500,000 | ||||||
10 | 2028 ....................................$225,100,000 | ||||||
11 | 2029 ....................................$288,700,000 | ||||||
12 | 2030 ....................................$298,900,000 | ||||||
13 | 2031 ....................................$309,300,000 | ||||||
14 | 2032 ....................................$320,100,000 | ||||||
15 | 2033 ....................................$331,200,000 | ||||||
16 | 2034 ....................................$341,200,000 | ||||||
17 | 2035 ....................................$351,400,000 | ||||||
18 | 2036 ....................................$361,900,000 | ||||||
19 | 2037 ....................................$372,800,000 | ||||||
20 | 2038 ....................................$384,000,000 | ||||||
21 | 2039 ....................................$395,500,000 | ||||||
22 | 2040 ....................................$407,400,000 | ||||||
23 | 2041 ....................................$419,600,000 | ||||||
24 | 2042 ....................................$432,200,000 | ||||||
25 | 2043 ....................................$445,100,000 | ||||||
26 | Beginning July 1, 2021 and until July 1, 2022, subject to |
| |||||||
| |||||||
1 | the payment of amounts into the County and Mass Transit | ||||||
2 | District Fund, the Local Government Tax Fund, the Build | ||||||
3 | Illinois Fund, the McCormick Place Expansion Project Fund, the | ||||||
4 | Illinois Tax Increment Fund, and the Tax Compliance and | ||||||
5 | Administration Fund as provided in this Section, the | ||||||
6 | Department shall pay each month into the Road Fund the amount | ||||||
7 | estimated to represent 16% of the net revenue realized from | ||||||
8 | the taxes imposed on motor fuel and gasohol. Beginning July 1, | ||||||
9 | 2022 and until July 1, 2023, subject to the payment of amounts | ||||||
10 | into the County and Mass Transit District Fund, the Local | ||||||
11 | Government Tax Fund, the Build Illinois Fund, the McCormick | ||||||
12 | Place Expansion Project Fund, the Illinois Tax Increment Fund, | ||||||
13 | and the Tax Compliance and Administration Fund as provided in | ||||||
14 | this Section, the Department shall pay each month into the | ||||||
15 | Road Fund the amount estimated to represent 32% of the net | ||||||
16 | revenue realized from the taxes imposed on motor fuel and | ||||||
17 | gasohol. Beginning July 1, 2023 and until July 1, 2024, | ||||||
18 | subject to the payment of amounts into the County and Mass | ||||||
19 | Transit District Fund, the Local Government Tax Fund, the | ||||||
20 | Build Illinois Fund, the McCormick Place Expansion Project | ||||||
21 | Fund, the Illinois Tax Increment Fund, and the Tax Compliance | ||||||
22 | and Administration Fund as provided in this Section, the | ||||||
23 | Department shall pay each month into the Road Fund the amount | ||||||
24 | estimated to represent 48% of the net revenue realized from | ||||||
25 | the taxes imposed on motor fuel and gasohol. Beginning July 1, | ||||||
26 | 2024 and until July 1, 2025, subject to the payment of amounts |
| |||||||
| |||||||
1 | into the County and Mass Transit District Fund, the Local | ||||||
2 | Government Tax Fund, the Build Illinois Fund, the McCormick | ||||||
3 | Place Expansion Project Fund, the Illinois Tax Increment Fund, | ||||||
4 | and the Tax Compliance and Administration Fund as provided in | ||||||
5 | this Section, the Department shall pay each month into the | ||||||
6 | Road Fund the amount estimated to represent 64% of the net | ||||||
7 | revenue realized from the taxes imposed on motor fuel and | ||||||
8 | gasohol. Beginning on July 1, 2025, subject to the payment of | ||||||
9 | amounts into the County and Mass Transit District Fund, the | ||||||
10 | Local Government Tax Fund, the Build Illinois Fund, the | ||||||
11 | McCormick Place Expansion Project Fund, the Illinois Tax | ||||||
12 | Increment Fund, and the Tax Compliance and Administration Fund | ||||||
13 | as provided in this Section, the Department shall pay each | ||||||
14 | month into the Road Fund the amount estimated to represent 80% | ||||||
15 | of the net revenue realized from the taxes imposed on motor | ||||||
16 | fuel and gasohol. As used in this paragraph "motor fuel" has | ||||||
17 | the meaning given to that term in Section 1.1 of the Motor Fuel | ||||||
18 | Tax Law, and "gasohol" has the meaning given to that term in | ||||||
19 | Section 3-40 of the Use Tax Act. | ||||||
20 | Of the remainder of the moneys received by the Department | ||||||
21 | pursuant to this Act, 75% thereof shall be paid into the State | ||||||
22 | treasury and 25% shall be reserved in a special account and | ||||||
23 | used only for the transfer to the Common School Fund as part of | ||||||
24 | the monthly transfer from the General Revenue Fund in | ||||||
25 | accordance with Section 8a of the State Finance Act. | ||||||
26 | The Department may, upon separate written notice to a |
| |||||||
| |||||||
1 | taxpayer, require the taxpayer to prepare and file with the | ||||||
2 | Department on a form prescribed by the Department within not | ||||||
3 | less than 60 days after receipt of the notice an annual | ||||||
4 | information return for the tax year specified in the notice. | ||||||
5 | Such annual return to the Department shall include a statement | ||||||
6 | of gross receipts as shown by the retailer's last federal | ||||||
7 | Federal income tax return. If the total receipts of the | ||||||
8 | business as reported in the federal Federal income tax return | ||||||
9 | do not agree with the gross receipts reported to the | ||||||
10 | Department of Revenue for the same period, the retailer shall | ||||||
11 | attach to his annual return a schedule showing a | ||||||
12 | reconciliation of the 2 amounts and the reasons for the | ||||||
13 | difference. The retailer's annual return to the Department | ||||||
14 | shall also disclose the cost of goods sold by the retailer | ||||||
15 | during the year covered by such return, opening and closing | ||||||
16 | inventories of such goods for such year, costs of goods used | ||||||
17 | from stock or taken from stock and given away by the retailer | ||||||
18 | during such year, payroll information of the retailer's | ||||||
19 | business during such year and any additional reasonable | ||||||
20 | information which the Department deems would be helpful in | ||||||
21 | determining the accuracy of the monthly, quarterly , or annual | ||||||
22 | returns filed by such retailer as provided for in this | ||||||
23 | Section. | ||||||
24 | If the annual information return required by this Section | ||||||
25 | is not filed when and as required, the taxpayer shall be liable | ||||||
26 | as follows: |
| |||||||
| |||||||
1 | (i) Until January 1, 1994, the taxpayer shall be | ||||||
2 | liable for a penalty equal to 1/6 of 1% of the tax due from | ||||||
3 | such taxpayer under this Act during the period to be | ||||||
4 | covered by the annual return for each month or fraction of | ||||||
5 | a month until such return is filed as required, the | ||||||
6 | penalty to be assessed and collected in the same manner as | ||||||
7 | any other penalty provided for in this Act. | ||||||
8 | (ii) On and after January 1, 1994, the taxpayer shall | ||||||
9 | be liable for a penalty as described in Section 3-4 of the | ||||||
10 | Uniform Penalty and Interest Act. | ||||||
11 | The chief executive officer, proprietor, owner , or highest | ||||||
12 | ranking manager shall sign the annual return to certify the | ||||||
13 | accuracy of the information contained therein. Any person who | ||||||
14 | willfully signs the annual return containing false or | ||||||
15 | inaccurate information shall be guilty of perjury and punished | ||||||
16 | accordingly. The annual return form prescribed by the | ||||||
17 | Department shall include a warning that the person signing the | ||||||
18 | return may be liable for perjury. | ||||||
19 | The provisions of this Section concerning the filing of an | ||||||
20 | annual information return do not apply to a retailer who is not | ||||||
21 | required to file an income tax return with the United States | ||||||
22 | Government. | ||||||
23 | As soon as possible after the first day of each month, upon | ||||||
24 | certification of the Department of Revenue, the Comptroller | ||||||
25 | shall order transferred and the Treasurer shall transfer from | ||||||
26 | the General Revenue Fund to the Motor Fuel Tax Fund an amount |
| |||||||
| |||||||
1 | equal to 1.7% of 80% of the net revenue realized under this Act | ||||||
2 | for the second preceding month. Beginning April 1, 2000, this | ||||||
3 | transfer is no longer required and shall not be made. | ||||||
4 | Net revenue realized for a month shall be the revenue | ||||||
5 | collected by the State pursuant to this Act, less the amount | ||||||
6 | paid out during that month as refunds to taxpayers for | ||||||
7 | overpayment of liability. | ||||||
8 | For greater simplicity of administration, manufacturers, | ||||||
9 | importers and wholesalers whose products are sold at retail in | ||||||
10 | Illinois by numerous retailers, and who wish to do so, may | ||||||
11 | assume the responsibility for accounting and paying to the | ||||||
12 | Department all tax accruing under this Act with respect to | ||||||
13 | such sales, if the retailers who are affected do not make | ||||||
14 | written objection to the Department to this arrangement. | ||||||
15 | Any person who promotes, organizes, or provides retail | ||||||
16 | selling space for concessionaires or other types of sellers at | ||||||
17 | the Illinois State Fair, DuQuoin State Fair, county fairs, | ||||||
18 | local fairs, art shows, flea markets , and similar exhibitions | ||||||
19 | or events, including any transient merchant as defined by | ||||||
20 | Section 2 of the Transient Merchant Act of 1987, is required to | ||||||
21 | file a report with the Department providing the name of the | ||||||
22 | merchant's business, the name of the person or persons engaged | ||||||
23 | in merchant's business, the permanent address and Illinois | ||||||
24 | Retailers Occupation Tax Registration Number of the merchant, | ||||||
25 | the dates and location of the event , and other reasonable | ||||||
26 | information that the Department may require. The report must |
| |||||||
| |||||||
1 | be filed not later than the 20th day of the month next | ||||||
2 | following the month during which the event with retail sales | ||||||
3 | was held. Any person who fails to file a report required by | ||||||
4 | this Section commits a business offense and is subject to a | ||||||
5 | fine not to exceed $250. | ||||||
6 | Any person engaged in the business of selling tangible | ||||||
7 | personal property at retail as a concessionaire or other type | ||||||
8 | of seller at the Illinois State Fair, county fairs, art shows, | ||||||
9 | flea markets , and similar exhibitions or events, or any | ||||||
10 | transient merchants, as defined by Section 2 of the Transient | ||||||
11 | Merchant Act of 1987, may be required to make a daily report of | ||||||
12 | the amount of such sales to the Department and to make a daily | ||||||
13 | payment of the full amount of tax due. The Department shall | ||||||
14 | impose this requirement when it finds that there is a | ||||||
15 | significant risk of loss of revenue to the State at such an | ||||||
16 | exhibition or event. Such a finding shall be based on evidence | ||||||
17 | that a substantial number of concessionaires or other sellers | ||||||
18 | who are not residents of Illinois will be engaging in the | ||||||
19 | business of selling tangible personal property at retail at | ||||||
20 | the exhibition or event, or other evidence of a significant | ||||||
21 | risk of loss of revenue to the State. The Department shall | ||||||
22 | notify concessionaires and other sellers affected by the | ||||||
23 | imposition of this requirement. In the absence of notification | ||||||
24 | by the Department, the concessionaires and other sellers shall | ||||||
25 | file their returns as otherwise required in this Section. | ||||||
26 | (Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60, |
| |||||||
| |||||||
1 | Section 60-30, eff. 4-19-22; 102-700, Article 65, Section | ||||||
2 | 65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff. | ||||||
3 | 1-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363, | ||||||
4 | eff. 7-28-23; revised 9-27-23.) | ||||||
5 | Section 800-35. The Counties Code is amended by changing | ||||||
6 | Section 5-1009 and by adding Section 5-1189 as follows: | ||||||
7 | (55 ILCS 5/5-1009) (from Ch. 34, par. 5-1009) | ||||||
8 | Sec. 5-1009. Limitation on home rule powers. Except as | ||||||
9 | provided in Sections 5-1006, 5-1006.5, 5-1006.8, 5-1007, and | ||||||
10 | 5-1008, and 5-1189, on and after September 1, 1990, no home | ||||||
11 | rule county has the authority to impose, pursuant to its home | ||||||
12 | rule authority, a retailers' occupation tax, service | ||||||
13 | occupation tax, use tax, sales tax or other tax on the use, | ||||||
14 | sale or purchase of tangible personal property based on the | ||||||
15 | gross receipts from such sales or the selling or purchase | ||||||
16 | price of said tangible personal property. Notwithstanding the | ||||||
17 | foregoing, this Section does not preempt any home rule imposed | ||||||
18 | tax such as the following: (1) a tax on alcoholic beverages, | ||||||
19 | whether based on gross receipts, volume sold or any other | ||||||
20 | measurement; (2) a tax based on the number of units of | ||||||
21 | cigarettes or tobacco products; (3) a tax, however measured, | ||||||
22 | based on the use of a hotel or motel room or similar facility; | ||||||
23 | (4) a tax, however measured, on the sale or transfer of real | ||||||
24 | property; (5) a tax, however measured, on lease receipts; (6) |
| |||||||
| |||||||
1 | a tax on food prepared for immediate consumption and on | ||||||
2 | alcoholic beverages sold by a business which provides for on | ||||||
3 | premise consumption of said food or alcoholic beverages; or | ||||||
4 | (7) other taxes not based on the selling or purchase price or | ||||||
5 | gross receipts from the use, sale or purchase of tangible | ||||||
6 | personal property. This Section does not preempt a home rule | ||||||
7 | county from imposing a tax, however measured, on the use, for | ||||||
8 | consideration, of a parking lot, garage, or other parking | ||||||
9 | facility. | ||||||
10 | On and after December 1, 2019, no home rule county has the | ||||||
11 | authority to impose, pursuant to its home rule authority, a | ||||||
12 | tax, however measured, on sales of aviation fuel, as defined | ||||||
13 | in Section 3 of the Retailers' Occupation Tax Act, unless the | ||||||
14 | tax revenue is expended for airport-related purposes. For | ||||||
15 | purposes of this Section, "airport-related purposes" has the | ||||||
16 | meaning ascribed in Section 6z-20.2 of the State Finance Act. | ||||||
17 | Aviation fuel shall be excluded from tax only for so long as | ||||||
18 | the revenue use requirements of 49 U.S.C. 47017(b) and 49 | ||||||
19 | U.S.C. 47133 are binding on the county. | ||||||
20 | This Section is a limitation, pursuant to subsection (g) | ||||||
21 | of Section 6 of Article VII of the Illinois Constitution, on | ||||||
22 | the power of home rule units to tax. The changes made to this | ||||||
23 | Section by Public Act 101-10 are a denial and limitation of | ||||||
24 | home rule powers and functions under subsection (g) of Section | ||||||
25 | 6 of Article VII of the Illinois Constitution. | ||||||
26 | (Source: P.A. 101-10, eff. 6-5-19; 101-27, eff. 6-25-19; |
| |||||||
| |||||||
1 | 102-558, eff. 8-20-21.) | ||||||
2 | (55 ILCS 5/5-1189 new) | ||||||
3 | Sec. 5-1189. County Hemp Concentrate derived product | ||||||
4 | retailers' Occupation Tax Law. | ||||||
5 | (a) This Section may be referred to as the County Hemp | ||||||
6 | Concentrate derived product retailers' Occupation Tax Law. | ||||||
7 | (b) The corporate authorities of any county may, by | ||||||
8 | ordinance, impose a tax upon all persons engaged in the | ||||||
9 | business of selling hemp concentrate derived products, as that | ||||||
10 | term is defined in Section 1-5 of the Hemp Cannabinoid | ||||||
11 | Products Act, at retail in the county on the gross receipts | ||||||
12 | from these sales made in the course of that business. If | ||||||
13 | imposed, the tax shall be imposed only in 0.25% increments. | ||||||
14 | The tax rate may not exceed: (i) 3.75% of the gross receipts of | ||||||
15 | sales made in unincorporated areas of the county; and (ii) 3% | ||||||
16 | of the gross receipts of sales made in a municipality located | ||||||
17 | in the county. The tax imposed under this Section and all civil | ||||||
18 | penalties that may be assessed as an incident of the tax shall | ||||||
19 | be collected and enforced by the Department of Revenue. The | ||||||
20 | Department of Revenue shall administer and enforce this | ||||||
21 | Section; collect all taxes and penalties due under this | ||||||
22 | Section; dispose of taxes and penalties so collected in the | ||||||
23 | manner provided in this Section; and determine all rights to | ||||||
24 | credit memoranda arising on account of the erroneous payment | ||||||
25 | of tax or penalty under this Section. In the administration of |
| |||||||
| |||||||
1 | and compliance with this Section, the Department of Revenue | ||||||
2 | and persons who are subject to this Section shall have the same | ||||||
3 | rights, remedies, privileges, immunities, powers and duties, | ||||||
4 | shall be subject to the same conditions, restrictions, | ||||||
5 | limitations, penalties, and definitions of terms, and shall | ||||||
6 | employ the same modes of procedure as are described in | ||||||
7 | Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 | ||||||
8 | in respect to all provisions therein other than the State rate | ||||||
9 | of tax, 2a, 2b, 2c, 2i, 3 except as to the disposition of taxes | ||||||
10 | and penalties collected, 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, | ||||||
11 | 5i, 5j, 5k, 5l, 6, 6a, 6bb, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, | ||||||
12 | and 13 of the Retailers' Occupation Tax Act and Section 3-7 of | ||||||
13 | the Uniform Penalty and Interest Act as fully as if those | ||||||
14 | provisions were set forth in this Section. | ||||||
15 | (c) Persons subject to a tax imposed under the authority | ||||||
16 | granted in this Section may reimburse themselves for their | ||||||
17 | seller's tax liability under this Section by separately | ||||||
18 | stating that tax as an additional charge, which charge may be | ||||||
19 | stated in combination, in a single amount, with any State tax | ||||||
20 | that sellers are required to collect. | ||||||
21 | (d) Whenever the Department of Revenue determines that a | ||||||
22 | refund should be made under this Section to a claimant instead | ||||||
23 | of issuing a credit memorandum, the Department of Revenue | ||||||
24 | shall notify the State Comptroller, who shall cause the order | ||||||
25 | to be drawn for the amount specified and to the person named in | ||||||
26 | the notification from the Department of Revenue. |
| |||||||
| |||||||
1 | (e) The Department of Revenue shall immediately pay over | ||||||
2 | to the State Treasurer, ex officio, as trustee, all taxes and | ||||||
3 | penalties collected under this Section for deposit into the | ||||||
4 | Local Cannabis Retailers' Occupation Tax Trust Fund. | ||||||
5 | (f) On or before the 25th day of each calendar month, the | ||||||
6 | Department of Revenue shall prepare and certify to the | ||||||
7 | Comptroller the amount of money to be disbursed from the Local | ||||||
8 | Cannabis Retailers' Occupation Tax Trust Fund to counties from | ||||||
9 | which retailers have paid taxes or penalties under this | ||||||
10 | Section during the second preceding calendar month. The amount | ||||||
11 | to be paid to each county shall be the amount, not including | ||||||
12 | credit memoranda, collected under this Section from sales made | ||||||
13 | in the county during the second preceding calendar month, plus | ||||||
14 | an amount the Department of Revenue determines is necessary to | ||||||
15 | offset any amounts that were erroneously paid to a different | ||||||
16 | taxing body, and not including an amount equal to the amount of | ||||||
17 | refunds made during the second preceding calendar month by the | ||||||
18 | Department on behalf of such county, and not including any | ||||||
19 | amount that the Department determines is necessary to offset | ||||||
20 | any amounts that were payable to a different taxing body but | ||||||
21 | were erroneously paid to the county, less 1.5% of the | ||||||
22 | remainder, which the Department shall transfer into the Tax | ||||||
23 | Compliance and Administration Fund. The Department, at the | ||||||
24 | time of each monthly disbursement to the counties, shall | ||||||
25 | prepare and certify the State Comptroller the amount to be | ||||||
26 | transferred into the Tax Compliance and Administration Fund |
| |||||||
| |||||||
1 | under this Section. Within 10 days after receipt by the | ||||||
2 | Comptroller of the disbursement certification to the counties | ||||||
3 | and the Tax Compliance and Administration Fund provided for in | ||||||
4 | this Section to be given to the Comptroller by the Department, | ||||||
5 | the Comptroller shall cause the orders to be drawn for the | ||||||
6 | respective amounts in accordance with the directions contained | ||||||
7 | in the certification. | ||||||
8 | (g) An ordinance or resolution imposing or discontinuing a | ||||||
9 | tax under this Section or effecting a change in the rate | ||||||
10 | thereof that is adopted on or after the effective date of this | ||||||
11 | amendatory Act of the 103rd General Assembly for which a | ||||||
12 | certified copy is filed with the Department on or before April | ||||||
13 | 1, 2025 shall be administered and enforced by the Department | ||||||
14 | beginning on July 1, 2025. For ordinances filed with the | ||||||
15 | Department after April 1, 2025, an ordinance or resolution | ||||||
16 | imposing or discontinuing a tax under this Section or | ||||||
17 | effecting a change in the rate thereof shall either (i) be | ||||||
18 | adopted and a certified copy thereof filed with the Department | ||||||
19 | on or before the first day of April, whereupon the Department | ||||||
20 | shall proceed to administer and enforce this Section as of the | ||||||
21 | first day of July next following the adoption and filing; or | ||||||
22 | (ii) be adopted and a certified copy thereof filed with the | ||||||
23 | Department on or before the first day of October, whereupon | ||||||
24 | the Department shall proceed to administer and enforce this | ||||||
25 | Section as of the first day of January next following the | ||||||
26 | adoption and filing. |
| |||||||
| |||||||
1 | Section 800-40. The Illinois Municipal Code is amended by | ||||||
2 | changing Section 8-11-6a and by adding Section 8-11-24 as | ||||||
3 | follows: | ||||||
4 | (65 ILCS 5/8-11-6a) (from Ch. 24, par. 8-11-6a) | ||||||
5 | Sec. 8-11-6a. Home rule municipalities; preemption of | ||||||
6 | certain taxes. Except as provided in Sections 8-11-1, 8-11-5, | ||||||
7 | 8-11-6, 8-11-6b, 8-11-6c, 8-11-23, 8-11-24, and 11-74.3-6 on | ||||||
8 | and after September 1, 1990, no home rule municipality has the | ||||||
9 | authority to impose, pursuant to its home rule authority, a | ||||||
10 | retailer's occupation tax, service occupation tax, use tax, | ||||||
11 | sales tax or other tax on the use, sale or purchase of tangible | ||||||
12 | personal property based on the gross receipts from such sales | ||||||
13 | or the selling or purchase price of said tangible personal | ||||||
14 | property. Notwithstanding the foregoing, this Section does not | ||||||
15 | preempt any home rule imposed tax such as the following: (1) a | ||||||
16 | tax on alcoholic beverages, whether based on gross receipts, | ||||||
17 | volume sold or any other measurement; (2) a tax based on the | ||||||
18 | number of units of cigarettes or tobacco products (provided, | ||||||
19 | however, that a home rule municipality that has not imposed a | ||||||
20 | tax based on the number of units of cigarettes or tobacco | ||||||
21 | products before July 1, 1993, shall not impose such a tax after | ||||||
22 | that date); (3) a tax, however measured, based on the use of a | ||||||
23 | hotel or motel room or similar facility; (4) a tax, however | ||||||
24 | measured, on the sale or transfer of real property; (5) a tax, |
| |||||||
| |||||||
1 | however measured, on lease receipts; (6) a tax on food | ||||||
2 | prepared for immediate consumption and on alcoholic beverages | ||||||
3 | sold by a business which provides for on premise consumption | ||||||
4 | of said food or alcoholic beverages; or (7) other taxes not | ||||||
5 | based on the selling or purchase price or gross receipts from | ||||||
6 | the use, sale or purchase of tangible personal property. This | ||||||
7 | Section does not preempt a home rule municipality with a | ||||||
8 | population of more than 2,000,000 from imposing a tax, however | ||||||
9 | measured, on the use, for consideration, of a parking lot, | ||||||
10 | garage, or other parking facility. This Section is not | ||||||
11 | intended to affect any existing tax on food and beverages | ||||||
12 | prepared for immediate consumption on the premises where the | ||||||
13 | sale occurs, or any existing tax on alcoholic beverages, or | ||||||
14 | any existing tax imposed on the charge for renting a hotel or | ||||||
15 | motel room, which was in effect January 15, 1988, or any | ||||||
16 | extension of the effective date of such an existing tax by | ||||||
17 | ordinance of the municipality imposing the tax, which | ||||||
18 | extension is hereby authorized, in any non-home rule | ||||||
19 | municipality in which the imposition of such a tax has been | ||||||
20 | upheld by judicial determination, nor is this Section intended | ||||||
21 | to preempt the authority granted by Public Act 85-1006. On and | ||||||
22 | after December 1, 2019, no home rule municipality has the | ||||||
23 | authority to impose, pursuant to its home rule authority, a | ||||||
24 | tax, however measured, on sales of aviation fuel, as defined | ||||||
25 | in Section 3 of the Retailers' Occupation Tax Act, unless the | ||||||
26 | tax is not subject to the revenue use requirements of 49 U.S.C. |
| |||||||
| |||||||
1 | 47107(b) and 49 U.S.C. 47133, or unless the tax revenue is | ||||||
2 | expended for airport-related purposes. For purposes of this | ||||||
3 | Section, "airport-related purposes" has the meaning ascribed | ||||||
4 | in Section 6z-20.2 of the State Finance Act. Aviation fuel | ||||||
5 | shall be excluded from tax only if, and for so long as, the | ||||||
6 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
7 | 47133 are binding on the municipality. This Section is a | ||||||
8 | limitation, pursuant to subsection (g) of Section 6 of Article | ||||||
9 | VII of the Illinois Constitution, on the power of home rule | ||||||
10 | units to tax. The changes made to this Section by Public Act | ||||||
11 | 101-10 are a denial and limitation of home rule powers and | ||||||
12 | functions under subsection (g) of Section 6 of Article VII of | ||||||
13 | the Illinois Constitution. | ||||||
14 | (Source: P.A. 101-10, eff. 6-5-19; 101-27, eff. 6-25-19; | ||||||
15 | 101-593, eff. 12-4-19.) | ||||||
16 | (65 ILCS 5/8-11-24 new) | ||||||
17 | Sec. 8-11-24. Municipal Hemp Concentrate derived product | ||||||
18 | retailers' Occupation Tax Law. | ||||||
19 | (a) This Section may be referred to as the Municipal Hemp | ||||||
20 | Concentrate derived product retailers' Occupation Tax Law. | ||||||
21 | (b) The corporate authorities of any municipality may, by | ||||||
22 | ordinance, impose a tax upon all persons engaged in the | ||||||
23 | business of selling hemp concentrate derived products, as that | ||||||
24 | term is defined in Section 1-5 of the Hemp Cannabinoid | ||||||
25 | Products Act, at retail in the municipality on the gross |
| |||||||
| |||||||
1 | receipts from these sales made in the course of that business. | ||||||
2 | If imposed, the tax may not exceed 3% of the gross receipts | ||||||
3 | from these sales and shall only be imposed in 1/4% increments. | ||||||
4 | The tax imposed under this Section and all civil penalties | ||||||
5 | that may be assessed as an incident of the tax shall be | ||||||
6 | collected and enforced by the Department of Revenue. The | ||||||
7 | Department of Revenue shall administer and enforce this | ||||||
8 | Section; collect all taxes and penalties due under this | ||||||
9 | Section; dispose of taxes and penalties so collected in the | ||||||
10 | manner hereinafter provided; and determine all rights to | ||||||
11 | credit memoranda arising on account of the erroneous payment | ||||||
12 | of tax or penalty under this Section. In the administration of | ||||||
13 | and compliance with this Section, the Department and persons | ||||||
14 | who are subject to this Section shall have the same rights, | ||||||
15 | remedies, privileges, immunities, powers and duties, shall be | ||||||
16 | subject to the same conditions, restrictions, limitations, | ||||||
17 | penalties and definitions of terms, and shall employ the same | ||||||
18 | modes of procedure as are prescribed in Sections 1, 1a, 1d, 1e, | ||||||
19 | 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 in respect to all | ||||||
20 | provisions therein other than the State rate of tax, 2a, 2b, | ||||||
21 | 2c, 2i, 3 except as to the disposition of taxes and penalties | ||||||
22 | collected, 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, | ||||||
23 | 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the | ||||||
24 | Retailers' Occupation Tax Act and Section 3-7 of the Uniform | ||||||
25 | Penalty and Interest Act, as fully as if those provisions were | ||||||
26 | set forth in this Section. |
| |||||||
| |||||||
1 | (c) Persons subject to a tax imposed under the authority | ||||||
2 | granted in this Section may reimburse themselves for their | ||||||
3 | seller's tax liability under this Section by separately | ||||||
4 | stating that tax as an additional charge, which charge may be | ||||||
5 | stated in combination, in a single amount, with any State tax | ||||||
6 | that sellers are required to collect. | ||||||
7 | (d) Whenever the Department of Revenue determines that a | ||||||
8 | refund should be made under this Section to a claimant instead | ||||||
9 | of issuing a credit memorandum, the Department of Revenue | ||||||
10 | shall notify the State Comptroller, who shall cause the order | ||||||
11 | to be drawn for the amount specified and to the person named in | ||||||
12 | the notification from the Department of Revenue. | ||||||
13 | (e) The Department of Revenue shall immediately pay over | ||||||
14 | to the State Treasurer, ex officio, as trustee, all taxes and | ||||||
15 | penalties collected under this Section for deposit into the | ||||||
16 | Local Cannabis Retailers' Occupation Tax Trust Fund. | ||||||
17 | (f) On or before the 25th day of each calendar month, the | ||||||
18 | Department of Revenue shall prepare and certify to the | ||||||
19 | Comptroller the amount of money to be disbursed from the Local | ||||||
20 | Cannabis Retailers' Occupation Tax Trust Fund to | ||||||
21 | municipalities from which retailers have paid taxes or | ||||||
22 | penalties under this Section during the second preceding | ||||||
23 | calendar month. The amount to be paid to each municipality | ||||||
24 | shall be the amount, not including credit memoranda, collected | ||||||
25 | under this Section from sales made in the municipality during | ||||||
26 | the second preceding calendar month, plus an amount the |
| |||||||
| |||||||
1 | Department of Revenue determines is necessary to offset any | ||||||
2 | amounts that were erroneously paid to a different taxing body, | ||||||
3 | and not including an amount equal to the amount of refunds made | ||||||
4 | during the second preceding calendar month by the Department | ||||||
5 | on behalf of such municipality, and not including any amount | ||||||
6 | that the Department determines is necessary to offset any | ||||||
7 | amounts that were payable to a different taxing body but were | ||||||
8 | erroneously paid to the municipality, less 1.5% of the | ||||||
9 | remainder, which the Department shall transfer into the Tax | ||||||
10 | Compliance and Administration Fund. The Department, at the | ||||||
11 | time of each monthly disbursement to the municipalities, shall | ||||||
12 | prepare and certify to the State Comptroller the amount to be | ||||||
13 | transferred into the Tax Compliance and Administration Fund | ||||||
14 | under this Section. Within 10 days after receipt by the | ||||||
15 | Comptroller of the disbursement certification to the | ||||||
16 | municipalities and the Tax Compliance and Administration Fund | ||||||
17 | provided for in this Section to be given to the Comptroller by | ||||||
18 | the Department, the Comptroller shall cause the orders to be | ||||||
19 | drawn for the respective amounts in accordance with the | ||||||
20 | directions contained in the certification. | ||||||
21 | (g) An ordinance or resolution imposing or discontinuing a | ||||||
22 | tax under this Section or effecting a change in the rate | ||||||
23 | thereof that is adopted on or after the effective date of this | ||||||
24 | amendatory Act of the 103rd General Assembly and for which a | ||||||
25 | certified copy is filed with the Department on or before April | ||||||
26 | 1, 2025 shall be administered and enforced by the Department |
| |||||||
| |||||||
1 | beginning on July 1, 2025. For ordinances filed with the | ||||||
2 | Department after April 1, 2025, an ordinance or resolution | ||||||
3 | imposing or discontinuing a tax under this Section or | ||||||
4 | effecting a change in the rate thereof shall either (i) be | ||||||
5 | adopted and a certified copy thereof filed with the Department | ||||||
6 | on or before the first day of April, whereupon the Department | ||||||
7 | shall proceed to administer and enforce this Section as of the | ||||||
8 | first day of July next following the adoption and filing; or | ||||||
9 | (ii) be adopted and a certified copy thereof filed with the | ||||||
10 | Department on or before the first day of October, whereupon | ||||||
11 | the Department shall proceed to administer and enforce this | ||||||
12 | Section as of the first day of January next following the | ||||||
13 | adoption and filing. | ||||||
14 | Section 800-45. The Cannabis Regulation and Tax Act is | ||||||
15 | amended by changing Sections 1-10, 5-11, 5-45, 10-10, 15-155, | ||||||
16 | and 55-35 and by adding Sections 15-35.5, 15-35.11, 20-60, and | ||||||
17 | 35-22 as follows: | ||||||
18 | (410 ILCS 705/1-10) | ||||||
19 | Sec. 1-10. Definitions. In this Act: | ||||||
20 | "Adult Use Cultivation Center License" means a license | ||||||
21 | issued by the Department of Agriculture that permits a person | ||||||
22 | to act as a cultivation center under this Act and any | ||||||
23 | administrative rule made in furtherance of this Act. | ||||||
24 | "Adult Use Dispensing Organization License" means a |
| |||||||
| |||||||
1 | license issued by the Department of Financial and Professional | ||||||
2 | Regulation that permits a person to act as a dispensing | ||||||
3 | organization under this Act and any administrative rule made | ||||||
4 | in furtherance of this Act. | ||||||
5 | "Advertise" means to engage in promotional activities | ||||||
6 | including, but not limited to: newspaper, radio, Internet and | ||||||
7 | electronic media, and television advertising; the distribution | ||||||
8 | of fliers and circulars; billboard advertising; and the | ||||||
9 | display of window and interior signs. "Advertise" does not | ||||||
10 | mean exterior signage displaying only the name of the licensed | ||||||
11 | cannabis business establishment. | ||||||
12 | "Application points" means the number of points a | ||||||
13 | Dispensary Applicant receives on an application for a | ||||||
14 | Conditional Adult Use Dispensing Organization License. | ||||||
15 | "BLS Region" means a region in Illinois used by the United | ||||||
16 | States Bureau of Labor Statistics to gather and categorize | ||||||
17 | certain employment and wage data. The 17 such regions in | ||||||
18 | Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion, | ||||||
19 | Champaign-Urbana, Chicago-Naperville-Elgin, Danville, | ||||||
20 | Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria, | ||||||
21 | Rockford, St. Louis, Springfield, Northwest Illinois | ||||||
22 | nonmetropolitan area, West Central Illinois nonmetropolitan | ||||||
23 | area, East Central Illinois nonmetropolitan area, and South | ||||||
24 | Illinois nonmetropolitan area. | ||||||
25 | "By lot" means a randomized method of choosing between 2 | ||||||
26 | or more Eligible Tied Applicants or 2 or more Qualifying |
| |||||||
| |||||||
1 | Applicants. | ||||||
2 | "Cannabis" means marijuana, hashish, and other substances | ||||||
3 | that are identified as including any parts of the plant | ||||||
4 | Cannabis sativa and including derivatives or subspecies, such | ||||||
5 | as indica, of all strains of cannabis, whether growing or not; | ||||||
6 | the seeds thereof, the resin extracted from any part of the | ||||||
7 | plant; and any compound, manufacture, salt, derivative, | ||||||
8 | mixture, or preparation of the plant, its seeds, or resin, | ||||||
9 | including tetrahydrocannabinol (THC) and all other naturally | ||||||
10 | produced cannabinol derivatives, whether produced directly or | ||||||
11 | indirectly by extraction; however, "cannabis" does not include | ||||||
12 | the mature stalks of the plant, fiber produced from the | ||||||
13 | stalks, oil or cake made from the seeds of the plant, any other | ||||||
14 | compound, manufacture, salt, derivative, mixture, or | ||||||
15 | preparation of the mature stalks (except the resin extracted | ||||||
16 | from it), fiber, oil or cake, or the sterilized seed of the | ||||||
17 | plant that is incapable of germination. "Cannabis" does not | ||||||
18 | include industrial hemp as defined and authorized under the | ||||||
19 | Industrial Hemp Act. "Cannabis" also means cannabis flower, | ||||||
20 | concentrate, and cannabis-infused products and any product | ||||||
21 | whether derived from natural or synthetic sources with a THC | ||||||
22 | concentration greater than the THC limit set forth in the Hemp | ||||||
23 | Cannabinoid Products Act . | ||||||
24 | "Cannabis business establishment" means a cultivation | ||||||
25 | center, craft grower, processing organization, infuser | ||||||
26 | organization, dispensing organization, or transporting |
| |||||||
| |||||||
1 | organization. | ||||||
2 | "Cannabis concentrate" means a product derived from | ||||||
3 | cannabis that is produced by extracting cannabinoids, | ||||||
4 | including tetrahydrocannabinol (THC), from the plant through | ||||||
5 | the use of propylene glycol, glycerin, butter, olive oil, or | ||||||
6 | other typical cooking fats; water, ice, or dry ice; or butane, | ||||||
7 | propane, CO 2 , ethanol, or isopropanol and with the intended | ||||||
8 | use of smoking or making a cannabis-infused product. The use | ||||||
9 | of any other solvent is expressly prohibited unless and until | ||||||
10 | it is approved by the Department of Agriculture. | ||||||
11 | "Cannabis container" means a sealed or resealable, | ||||||
12 | traceable, container, or package used for the purpose of | ||||||
13 | containment of cannabis or cannabis-infused product during | ||||||
14 | transportation. | ||||||
15 | "Cannabis flower" means marijuana, hashish, and other | ||||||
16 | substances that are identified as including any parts of the | ||||||
17 | plant Cannabis sativa and including derivatives or subspecies, | ||||||
18 | such as indica, of all strains of cannabis; including raw | ||||||
19 | kief, leaves, and buds, but not resin that has been extracted | ||||||
20 | from any part of such plant; nor any compound, manufacture, | ||||||
21 | salt, derivative, mixture, or preparation of such plant, its | ||||||
22 | seeds, or resin. | ||||||
23 | "Cannabis-infused product" means a beverage, food, oil, | ||||||
24 | ointment, tincture, topical formulation, or another product | ||||||
25 | containing cannabis or cannabis concentrate that is not | ||||||
26 | intended to be smoked. |
| |||||||
| |||||||
1 | "Cannabis paraphernalia" means equipment, products, or | ||||||
2 | materials intended to be used for planting, propagating, | ||||||
3 | cultivating, growing, harvesting, manufacturing, producing, | ||||||
4 | processing, preparing, testing, analyzing, packaging, | ||||||
5 | repackaging, storing, containing, concealing, ingesting, or | ||||||
6 | otherwise introducing cannabis into the human body. | ||||||
7 | "Cannabis plant monitoring system" or "plant monitoring | ||||||
8 | system" means a system that includes, but is not limited to, | ||||||
9 | testing and data collection established and maintained by the | ||||||
10 | cultivation center, craft grower, or processing organization | ||||||
11 | and that is available to the Department of Revenue, the | ||||||
12 | Department of Agriculture, the Department of Financial and | ||||||
13 | Professional Regulation, and the Illinois State Police for the | ||||||
14 | purposes of documenting each cannabis plant and monitoring | ||||||
15 | plant development throughout the life cycle of a cannabis | ||||||
16 | plant cultivated for the intended use by a customer from seed | ||||||
17 | planting to final packaging. | ||||||
18 | "Cannabis testing facility" means an entity registered by | ||||||
19 | the Department of Agriculture to test cannabis for potency and | ||||||
20 | contaminants. | ||||||
21 | "Clone" means a plant section from a female cannabis plant | ||||||
22 | not yet rootbound, growing in a water solution or other | ||||||
23 | propagation matrix, that is capable of developing into a new | ||||||
24 | plant. | ||||||
25 | "Community College Cannabis Vocational Training Pilot | ||||||
26 | Program faculty participant" means a person who is 21 years of |
| |||||||
| |||||||
1 | age or older, licensed by the Department of Agriculture, and | ||||||
2 | is employed or contracted by an Illinois community college to | ||||||
3 | provide student instruction using cannabis plants at an | ||||||
4 | Illinois community college Community College . | ||||||
5 | "Community College Cannabis Vocational Training Pilot | ||||||
6 | Program faculty participant Agent Identification Card" means a | ||||||
7 | document issued by the Department of Agriculture that | ||||||
8 | identifies a person as a Community College Cannabis Vocational | ||||||
9 | Training Pilot Program faculty participant. | ||||||
10 | "Conditional Adult Use Dispensing Organization License" | ||||||
11 | means a contingent license awarded to applicants for an Adult | ||||||
12 | Use Dispensing Organization License that reserves the right to | ||||||
13 | an Adult Use Dispensing Organization License if the applicant | ||||||
14 | meets certain conditions described in this Act, but does not | ||||||
15 | entitle the recipient to begin purchasing or selling cannabis | ||||||
16 | or cannabis-infused products. | ||||||
17 | "Conditional Adult Use Cultivation Center License" means a | ||||||
18 | license awarded to top-scoring applicants for an Adult Use | ||||||
19 | Cultivation Center License that reserves the right to an Adult | ||||||
20 | Use Cultivation Center License if the applicant meets certain | ||||||
21 | conditions as determined by the Department of Agriculture by | ||||||
22 | rule, but does not entitle the recipient to begin growing, | ||||||
23 | processing, or selling cannabis or cannabis-infused products. | ||||||
24 | "Craft grower" means a facility operated by an | ||||||
25 | organization or business that is licensed by the Department of | ||||||
26 | Agriculture to cultivate, dry, cure, and package cannabis and |
| |||||||
| |||||||
1 | perform other necessary activities to make cannabis available | ||||||
2 | for sale at a dispensing organization or use at a processing | ||||||
3 | organization. A craft grower may contain up to 5,000 square | ||||||
4 | feet of canopy space on its premises for plants in the | ||||||
5 | flowering state. The Department of Agriculture may authorize | ||||||
6 | an increase or decrease of flowering stage cultivation space | ||||||
7 | in increments of 3,000 square feet by rule based on market | ||||||
8 | need, craft grower capacity, and the licensee's history of | ||||||
9 | compliance or noncompliance, with a maximum space of 14,000 | ||||||
10 | square feet for cultivating plants in the flowering stage, | ||||||
11 | which must be cultivated in all stages of growth in an enclosed | ||||||
12 | and secure area. A craft grower may share premises with a | ||||||
13 | processing organization or a dispensing organization, or both, | ||||||
14 | provided each licensee stores currency and cannabis or | ||||||
15 | cannabis-infused products in a separate secured vault to which | ||||||
16 | the other licensee does not have access or all licensees | ||||||
17 | sharing a vault share more than 50% of the same ownership. | ||||||
18 | "Craft grower agent" means a principal officer, board | ||||||
19 | member, employee, or other agent of a craft grower who is 21 | ||||||
20 | years of age or older. | ||||||
21 | "Craft Grower Agent Identification Card" means a document | ||||||
22 | issued by the Department of Agriculture that identifies a | ||||||
23 | person as a craft grower agent. | ||||||
24 | "Cultivation center" means a facility operated by an | ||||||
25 | organization or business that is licensed by the Department of | ||||||
26 | Agriculture to cultivate, process, transport (unless otherwise |
| |||||||
| |||||||
1 | limited by this Act), and perform other necessary activities | ||||||
2 | to provide cannabis and cannabis-infused products to cannabis | ||||||
3 | business establishments. | ||||||
4 | "Cultivation center agent" means a principal officer, | ||||||
5 | board member, employee, or other agent of a cultivation center | ||||||
6 | who is 21 years of age or older. | ||||||
7 | "Cultivation Center Agent Identification Card" means a | ||||||
8 | document issued by the Department of Agriculture that | ||||||
9 | identifies a person as a cultivation center agent. | ||||||
10 | "Currency" means currency and coins coin of the United | ||||||
11 | States. | ||||||
12 | "Dispensary" means a facility operated by a dispensing | ||||||
13 | organization at which activities licensed by this Act may | ||||||
14 | occur. | ||||||
15 | "Dispensary Applicant" means the Proposed Dispensing | ||||||
16 | Organization Name as stated on an application for a | ||||||
17 | Conditional Adult Use Dispensing Organization License. | ||||||
18 | "Dispensing organization" means a facility operated by an | ||||||
19 | organization or business that is licensed by the Department of | ||||||
20 | Financial and Professional Regulation to acquire cannabis from | ||||||
21 | a cultivation center, craft grower, processing organization, | ||||||
22 | or another dispensary for the purpose of selling or dispensing | ||||||
23 | cannabis, cannabis-infused products, cannabis seeds, | ||||||
24 | paraphernalia, or related supplies under this Act to | ||||||
25 | purchasers or to qualified registered medical cannabis | ||||||
26 | patients and caregivers. As used in this Act, "dispensing |
| |||||||
| |||||||
1 | organization" includes a registered medical cannabis | ||||||
2 | organization as defined in the Compassionate Use of Medical | ||||||
3 | Cannabis Program Act or its successor Act that has obtained an | ||||||
4 | Early Approval Adult Use Dispensing Organization License. | ||||||
5 | "Dispensing organization agent" means a principal officer, | ||||||
6 | employee, or agent of a dispensing organization who is 21 | ||||||
7 | years of age or older. | ||||||
8 | "Dispensing organization agent identification card" means | ||||||
9 | a document issued by the Department of Financial and | ||||||
10 | Professional Regulation that identifies a person as a | ||||||
11 | dispensing organization agent. | ||||||
12 | "Disproportionately Impacted Area" means a census tract or | ||||||
13 | comparable geographic area that satisfies the following | ||||||
14 | criteria as determined by the Department of Commerce and | ||||||
15 | Economic Opportunity, that: | ||||||
16 | (1) meets at least one of the following criteria: | ||||||
17 | (A) the area has a poverty rate of at least 20% | ||||||
18 | according to the latest federal decennial census; or | ||||||
19 | (B) 75% or more of the children in the area | ||||||
20 | participate in the federal free lunch program | ||||||
21 | according to reported statistics from the State Board | ||||||
22 | of Education; or | ||||||
23 | (C) at least 20% of the households in the area | ||||||
24 | receive assistance under the Supplemental Nutrition | ||||||
25 | Assistance Program; or | ||||||
26 | (D) the area has an average unemployment rate, as |
| |||||||
| |||||||
1 | determined by the Illinois Department of Employment | ||||||
2 | Security, that is more than 120% of the national | ||||||
3 | unemployment average, as determined by the United | ||||||
4 | States Department of Labor, for a period of at least 2 | ||||||
5 | consecutive calendar years preceding the date of the | ||||||
6 | application; and | ||||||
7 | (2) has high rates of arrest, conviction, and | ||||||
8 | incarceration related to the sale, possession, use, | ||||||
9 | cultivation, manufacture, or transport of cannabis. | ||||||
10 | "Early Approval Adult Use Cultivation Center License" | ||||||
11 | means a license that permits a medical cannabis cultivation | ||||||
12 | center licensed under the Compassionate Use of Medical | ||||||
13 | Cannabis Program Act as of the effective date of this Act to | ||||||
14 | begin cultivating, infusing, packaging, transporting (unless | ||||||
15 | otherwise provided in this Act), processing, and selling | ||||||
16 | cannabis or cannabis-infused product to cannabis business | ||||||
17 | establishments for resale to purchasers as permitted by this | ||||||
18 | Act as of January 1, 2020. | ||||||
19 | "Early Approval Adult Use Dispensing Organization License" | ||||||
20 | means a license that permits a medical cannabis dispensing | ||||||
21 | organization licensed under the Compassionate Use of Medical | ||||||
22 | Cannabis Program Act as of the effective date of this Act to | ||||||
23 | begin selling cannabis or cannabis-infused product to | ||||||
24 | purchasers as permitted by this Act as of January 1, 2020. | ||||||
25 | "Early Approval Adult Use Dispensing Organization at a | ||||||
26 | secondary site" means a license that permits a medical |
| |||||||
| |||||||
1 | cannabis dispensing organization licensed under the | ||||||
2 | Compassionate Use of Medical Cannabis Program Act as of the | ||||||
3 | effective date of this Act to begin selling cannabis or | ||||||
4 | cannabis-infused product to purchasers as permitted by this | ||||||
5 | Act on January 1, 2020 at a different dispensary location from | ||||||
6 | its existing registered medical dispensary location. | ||||||
7 | "Eligible Tied Applicant" means a Tied Applicant that is | ||||||
8 | eligible to participate in the process by which a remaining | ||||||
9 | available license is distributed by lot pursuant to a Tied | ||||||
10 | Applicant Lottery. | ||||||
11 | "Enclosed, locked facility" means a room, greenhouse, | ||||||
12 | building, or other enclosed area equipped with locks or other | ||||||
13 | security devices that permit access only by cannabis business | ||||||
14 | establishment agents working for the licensed cannabis | ||||||
15 | business establishment or acting pursuant to this Act to | ||||||
16 | cultivate, process, store, or distribute cannabis. | ||||||
17 | "Enclosed, locked space" means a closet, room, greenhouse, | ||||||
18 | building, or other enclosed area equipped with locks or other | ||||||
19 | security devices that permit access only by authorized | ||||||
20 | individuals under this Act. "Enclosed, locked space" may | ||||||
21 | include: | ||||||
22 | (1) a space within a residential building that (i) is | ||||||
23 | the primary residence of the individual cultivating 5 or | ||||||
24 | fewer cannabis plants that are more than 5 inches tall and | ||||||
25 | (ii) includes sleeping quarters and indoor plumbing. The | ||||||
26 | space must only be accessible by a key or code that is |
| |||||||
| |||||||
1 | different from any key or code that can be used to access | ||||||
2 | the residential building from the exterior; or | ||||||
3 | (2) a structure, such as a shed or greenhouse, that | ||||||
4 | lies on the same plot of land as a residential building | ||||||
5 | that (i) includes sleeping quarters and indoor plumbing | ||||||
6 | and (ii) is used as a primary residence by the person | ||||||
7 | cultivating 5 or fewer cannabis plants that are more than | ||||||
8 | 5 inches tall, such as a shed or greenhouse. The structure | ||||||
9 | must remain locked when it is unoccupied by people. | ||||||
10 | "Financial institution" has the same meaning as "financial | ||||||
11 | organization" as defined in Section 1501 of the Illinois | ||||||
12 | Income Tax Act, and also includes the holding companies, | ||||||
13 | subsidiaries, and affiliates of such financial organizations. | ||||||
14 | "Flowering stage" means the stage of cultivation where and | ||||||
15 | when a cannabis plant is cultivated to produce plant material | ||||||
16 | for cannabis products. This includes mature plants as follows: | ||||||
17 | (1) if greater than 2 stigmas are visible at each | ||||||
18 | internode of the plant; or | ||||||
19 | (2) if the cannabis plant is in an area that has been | ||||||
20 | intentionally deprived of light for a period of time | ||||||
21 | intended to produce flower buds and induce maturation, | ||||||
22 | from the moment the light deprivation began through the | ||||||
23 | remainder of the marijuana plant growth cycle. | ||||||
24 | "Individual" means a natural person. | ||||||
25 | "Infuser organization" or "infuser" means a facility | ||||||
26 | operated by an organization or business that is licensed by |
| |||||||
| |||||||
1 | the Department of Agriculture to directly incorporate cannabis | ||||||
2 | or cannabis concentrate into a product formulation to produce | ||||||
3 | a cannabis-infused product. | ||||||
4 | "Kief" means the resinous crystal-like trichomes that are | ||||||
5 | found on cannabis and that are accumulated, resulting in a | ||||||
6 | higher concentration of cannabinoids, untreated by heat or | ||||||
7 | pressure, or extracted using a solvent. | ||||||
8 | "Labor peace agreement" means an agreement between a | ||||||
9 | cannabis business establishment and any labor organization | ||||||
10 | recognized under the National Labor Relations Act, referred to | ||||||
11 | in this Act as a bona fide labor organization, that prohibits | ||||||
12 | labor organizations and members from engaging in picketing, | ||||||
13 | work stoppages, boycotts, and any other economic interference | ||||||
14 | with the cannabis business establishment. This agreement means | ||||||
15 | that the cannabis business establishment has agreed not to | ||||||
16 | disrupt efforts by the bona fide labor organization to | ||||||
17 | communicate with, and attempt to organize and represent, the | ||||||
18 | cannabis business establishment's employees. The agreement | ||||||
19 | shall provide a bona fide labor organization access at | ||||||
20 | reasonable times to areas in which the cannabis business | ||||||
21 | establishment's employees work, for the purpose of meeting | ||||||
22 | with employees to discuss their right to representation, | ||||||
23 | employment rights under State law, and terms and conditions of | ||||||
24 | employment. This type of agreement shall not mandate a | ||||||
25 | particular method of election or certification of the bona | ||||||
26 | fide labor organization. |
| |||||||
| |||||||
1 | "Limited access area" means a room or other area under the | ||||||
2 | control of a cannabis dispensing organization licensed under | ||||||
3 | this Act and upon the licensed premises where cannabis sales | ||||||
4 | occur with access limited to purchasers, dispensing | ||||||
5 | organization owners and other dispensing organization agents, | ||||||
6 | or service professionals conducting business with the | ||||||
7 | dispensing organization, or, if sales to registered qualifying | ||||||
8 | patients, caregivers, provisional patients, and Opioid | ||||||
9 | Alternative Pilot Program participants licensed pursuant to | ||||||
10 | the Compassionate Use of Medical Cannabis Program Act are also | ||||||
11 | permitted at the dispensary, registered qualifying patients, | ||||||
12 | caregivers, provisional patients, and Opioid Alternative Pilot | ||||||
13 | Program participants. | ||||||
14 | "Member of an impacted family" means an individual who has | ||||||
15 | a parent, legal guardian, child, spouse, or dependent, or was | ||||||
16 | a dependent of an individual who, prior to the effective date | ||||||
17 | of this Act, was arrested for, convicted of, or adjudicated | ||||||
18 | delinquent for any offense that is eligible for expungement | ||||||
19 | under this Act. | ||||||
20 | "Mother plant" means a cannabis plant that is cultivated | ||||||
21 | or maintained for the purpose of generating clones, and that | ||||||
22 | will not be used to produce plant material for sale to an | ||||||
23 | infuser or dispensing organization. | ||||||
24 | "Ordinary public view" means within the sight line with | ||||||
25 | normal visual range of a person, unassisted by visual aids, | ||||||
26 | from a public street or sidewalk adjacent to real property, or |
| |||||||
| |||||||
1 | from within an adjacent property. | ||||||
2 | "Ownership and control" means ownership of at least 51% of | ||||||
3 | the business, including corporate stock if a corporation, and | ||||||
4 | control over the management and day-to-day operations of the | ||||||
5 | business and an interest in the capital, assets, and profits | ||||||
6 | and losses of the business proportionate to percentage of | ||||||
7 | ownership. | ||||||
8 | "Person" means a natural individual, firm, partnership, | ||||||
9 | association, joint stock company, joint venture, public or | ||||||
10 | private corporation, limited liability company, or a receiver, | ||||||
11 | executor, trustee, guardian, or other representative appointed | ||||||
12 | by order of any court. | ||||||
13 | "Possession limit" means the amount of cannabis under | ||||||
14 | Section 10-10 that may be possessed at any one time by a person | ||||||
15 | 21 years of age or older or who is a registered qualifying | ||||||
16 | medical cannabis patient or caregiver under the Compassionate | ||||||
17 | Use of Medical Cannabis Program Act. | ||||||
18 | "Principal officer" includes a cannabis business | ||||||
19 | establishment applicant or licensed cannabis business | ||||||
20 | establishment's board member, owner with more than 1% interest | ||||||
21 | of the total cannabis business establishment or more than 5% | ||||||
22 | interest of the total cannabis business establishment of a | ||||||
23 | publicly traded company, president, vice president, secretary, | ||||||
24 | treasurer, partner, officer, member, manager member, or person | ||||||
25 | with a profit sharing, financial interest, or revenue sharing | ||||||
26 | arrangement. The definition includes a person with authority |
| |||||||
| |||||||
1 | to control the cannabis business establishment, a person who | ||||||
2 | assumes responsibility for the debts of the cannabis business | ||||||
3 | establishment and who is further defined in this Act. | ||||||
4 | "Primary residence" means a dwelling where a person | ||||||
5 | usually stays or stays more often than other locations. It may | ||||||
6 | be determined by, without limitation, presence, tax filings; | ||||||
7 | address on an Illinois driver's license, an Illinois | ||||||
8 | Identification Card, or an Illinois Person with a Disability | ||||||
9 | Identification Card; or voter registration. No person may have | ||||||
10 | more than one primary residence. | ||||||
11 | "Processing organization" or "processor" means a facility | ||||||
12 | operated by an organization or business that is licensed by | ||||||
13 | the Department of Agriculture to either extract constituent | ||||||
14 | chemicals or compounds to produce cannabis concentrate or | ||||||
15 | incorporate cannabis or cannabis concentrate into a product | ||||||
16 | formulation to produce a cannabis product. | ||||||
17 | "Processing organization agent" means a principal officer, | ||||||
18 | board member, employee, or agent of a processing organization. | ||||||
19 | "Processing organization agent identification card" means | ||||||
20 | a document issued by the Department of Agriculture that | ||||||
21 | identifies a person as a processing organization agent. | ||||||
22 | "Purchaser" means a person 21 years of age or older who | ||||||
23 | acquires cannabis for a valuable consideration. "Purchaser" | ||||||
24 | does not include a cardholder under the Compassionate Use of | ||||||
25 | Medical Cannabis Program Act. | ||||||
26 | "Qualifying Applicant" means an applicant that submitted |
| |||||||
| |||||||
1 | an application pursuant to Section 15-30 that received at | ||||||
2 | least 85% of 250 application points available under Section | ||||||
3 | 15-30 as the applicant's final score and meets the definition | ||||||
4 | of "Social Equity Applicant" as set forth under this Section. | ||||||
5 | "Qualifying Social Equity Justice Involved Applicant" | ||||||
6 | means an applicant that submitted an application pursuant to | ||||||
7 | Section 15-30 that received at least 85% of 250 application | ||||||
8 | points available under Section 15-30 as the applicant's final | ||||||
9 | score and meets the criteria of either paragraph (1) or (2) of | ||||||
10 | the definition of "Social Equity Applicant" as set forth under | ||||||
11 | this Section. | ||||||
12 | "Qualified Social Equity Applicant" means a Social Equity | ||||||
13 | Applicant who has been awarded a conditional license under | ||||||
14 | this Act to operate a cannabis business establishment. | ||||||
15 | "Resided" means an individual's primary residence was | ||||||
16 | located within the relevant geographic area as established by | ||||||
17 | 2 of the following: | ||||||
18 | (1) a signed lease agreement that includes the | ||||||
19 | applicant's name; | ||||||
20 | (2) a property deed that includes the applicant's | ||||||
21 | name; | ||||||
22 | (3) school records; | ||||||
23 | (4) a voter registration card; | ||||||
24 | (5) an Illinois driver's license, an Illinois | ||||||
25 | Identification Card, or an Illinois Person with a | ||||||
26 | Disability Identification Card; |
| |||||||
| |||||||
1 | (6) a paycheck stub; | ||||||
2 | (7) a utility bill; | ||||||
3 | (8) tax records; or | ||||||
4 | (9) any other proof of residency or other information | ||||||
5 | necessary to establish residence as provided by rule. | ||||||
6 | "Smoking" means the inhalation of smoke caused by the | ||||||
7 | combustion of cannabis. | ||||||
8 | "Social Equity Applicant" means an applicant that is an | ||||||
9 | Illinois resident that meets one of the following criteria: | ||||||
10 | (1) an applicant with at least 51% ownership and | ||||||
11 | control by one or more individuals who have resided for at | ||||||
12 | least 5 of the preceding 10 years in a Disproportionately | ||||||
13 | Impacted Area; | ||||||
14 | (2) an applicant with at least 51% ownership and | ||||||
15 | control by one or more individuals who: | ||||||
16 | (i) have been arrested for, convicted of, or | ||||||
17 | adjudicated delinquent for any offense that is | ||||||
18 | eligible for expungement under this Act; or | ||||||
19 | (ii) is a member of an impacted family; | ||||||
20 | (3) for applicants with a minimum of 10 full-time | ||||||
21 | employees, an applicant with at least 51% of current | ||||||
22 | employees who: | ||||||
23 | (i) currently reside in a Disproportionately | ||||||
24 | Impacted Area; or | ||||||
25 | (ii) have been arrested for, convicted of, or | ||||||
26 | adjudicated delinquent for any offense that is |
| |||||||
| |||||||
1 | eligible for expungement under this Act or member of | ||||||
2 | an impacted family. | ||||||
3 | Nothing in this Act shall be construed to preempt or limit | ||||||
4 | the duties of any employer under the Job Opportunities for | ||||||
5 | Qualified Applicants Act. Nothing in this Act shall permit an | ||||||
6 | employer to require an employee to disclose sealed or expunged | ||||||
7 | offenses, unless otherwise required by law. | ||||||
8 | "Tetrahydrocannabinol" or "THC" means any naturally | ||||||
9 | occurring or synthetic tetrahydrocannabinol, including its | ||||||
10 | salts, isomers, and salts of isomers whenever the existence of | ||||||
11 | such salts, isomers, and salts of isomers is possible within | ||||||
12 | the specific chemical designation and any preparation, | ||||||
13 | mixture, or substance containing, or mixed or infused with, | ||||||
14 | any detectable amount of tetrahydrocannabinol or | ||||||
15 | tetrahydrocannabolic acid, including, but not limited to, | ||||||
16 | delta-8-tetrahydrocannabinol, delta-9-tetrahydrocannabinol, | ||||||
17 | delta-10-tetrahydrocannabinol, tetrahydrocannabolic acid, | ||||||
18 | tetrahydrocannabipherol, or hexahydrocannabinol, however | ||||||
19 | derived, or any other substance determined to have similar | ||||||
20 | intoxicating effects on the mind or body by the Department. | ||||||
21 | For the purposes of this definition, "isomer" means the | ||||||
22 | optical, position, and geometric isomers. | ||||||
23 | "Tied Applicant" means an application submitted by a | ||||||
24 | Dispensary Applicant pursuant to Section 15-30 that received | ||||||
25 | the same number of application points under Section 15-30 as | ||||||
26 | the Dispensary Applicant's final score as one or more |
| |||||||
| |||||||
1 | top-scoring applications in the same BLS Region and would have | ||||||
2 | been awarded a license but for the one or more other | ||||||
3 | top-scoring applications that received the same number of | ||||||
4 | application points. Each application for which a Dispensary | ||||||
5 | Applicant was required to pay a required application fee for | ||||||
6 | the application period ending January 2, 2020 shall be | ||||||
7 | considered an application of a separate Tied Applicant. | ||||||
8 | "Tied Applicant Lottery" means the process established | ||||||
9 | under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult | ||||||
10 | Use Dispensing Organization Licenses pursuant to Sections | ||||||
11 | 15-25 and 15-30 among Eligible Tied Applicants. | ||||||
12 | "Tincture" means a cannabis-infused solution, typically | ||||||
13 | comprised of alcohol, glycerin, or vegetable oils, derived | ||||||
14 | either directly from the cannabis plant or from a processed | ||||||
15 | cannabis extract. A tincture is not an alcoholic liquor as | ||||||
16 | defined in the Liquor Control Act of 1934. A tincture shall | ||||||
17 | include a calibrated dropper or other similar device capable | ||||||
18 | of accurately measuring servings. | ||||||
19 | "Transporting organization" or "transporter" means an | ||||||
20 | organization or business that is licensed by the Department of | ||||||
21 | Agriculture to transport cannabis or cannabis-infused product | ||||||
22 | on behalf of a cannabis business establishment or a community | ||||||
23 | college licensed under the Community College Cannabis | ||||||
24 | Vocational Training Pilot Program. | ||||||
25 | "Transporting organization agent" means a principal | ||||||
26 | officer, board member, employee, or agent of a transporting |
| |||||||
| |||||||
1 | organization. | ||||||
2 | "Transporting organization agent identification card" | ||||||
3 | means a document issued by the Department of Agriculture that | ||||||
4 | identifies a person as a transporting organization agent. | ||||||
5 | "Unit of local government" means any county, city, | ||||||
6 | village, or incorporated town. | ||||||
7 | "Vegetative stage" means the stage of cultivation in which | ||||||
8 | a cannabis plant is propagated to produce additional cannabis | ||||||
9 | plants or reach a sufficient size for production. This | ||||||
10 | includes seedlings, clones, mothers, and other immature | ||||||
11 | cannabis plants as follows: | ||||||
12 | (1) if the cannabis plant is in an area that has not | ||||||
13 | been intentionally deprived of light for a period of time | ||||||
14 | intended to produce flower buds and induce maturation, it | ||||||
15 | has no more than 2 stigmas visible at each internode of the | ||||||
16 | cannabis plant; or | ||||||
17 | (2) any cannabis plant that is cultivated solely for | ||||||
18 | the purpose of propagating clones and is never used to | ||||||
19 | produce cannabis. | ||||||
20 | (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; | ||||||
21 | 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff. | ||||||
22 | 5-13-22.) | ||||||
23 | (410 ILCS 705/5-11 new) | ||||||
24 | Sec. 5-11. Hemp and hemp derivatives in medical and adult | ||||||
25 | use cannabis products. |
| |||||||
| |||||||
1 | (a) In this Section, "industrial hemp" has the meaning | ||||||
2 | given to it under the Industrial Hemp Act. | ||||||
3 | (b) Cannabis business establishments that are licensed by | ||||||
4 | the Department of Agriculture as a craft grow organization or | ||||||
5 | an infuser organization and that meet the criteria set forth | ||||||
6 | in this Act as a Social Equity Applicant may infuse medical or | ||||||
7 | adult use cannabis products pursuant to this Act or the | ||||||
8 | Compassionate Use of Medicinal Cannabis Program Act with hemp | ||||||
9 | extract or hemp concentrate derived from industrial hemp as an | ||||||
10 | ingredient in cannabis-infused products offered for sale at a | ||||||
11 | dispensary licensed under this Act, including Section 15-35 or | ||||||
12 | Section 15-35.10. | ||||||
13 | (c) All hemp obtained through this policy must be used in | ||||||
14 | extracted form and in infused cannabis products only. | ||||||
15 | (d) Industrial hemp may be procured from hemp | ||||||
16 | organizations licensed under the Hemp Cannabinoid Products Act | ||||||
17 | from within the State or any other state with a regulated | ||||||
18 | industrial hemp program. | ||||||
19 | (e) All hemp and hemp derivatives shall be obtained from a | ||||||
20 | licensed or registered hemp grower or processor, regardless of | ||||||
21 | the home state of the grower or processor. Cannabis producers | ||||||
22 | shall provide a copy of the hemp grower's or processor's | ||||||
23 | state-issued license upon demand of the Department of | ||||||
24 | Agriculture or the Illinois State Police. | ||||||
25 | (f) A licensed craft grower organization or infuser | ||||||
26 | organization that meets the criteria set forth in this Act as a |
| |||||||
| |||||||
1 | Social Equity Applicant must notify the Department of | ||||||
2 | Agriculture, on forms prescribed by the Department, of the | ||||||
3 | organization's intention to infuse or process intermediate | ||||||
4 | hemp products, hemp extract, or hemp concentrate, as those | ||||||
5 | terms are defined under the Hemp Cannabinoid Products Act. | ||||||
6 | Hemp concentrate derived product, as that term is defined | ||||||
7 | under the Hemp Cannabinoid Products Act, infused by a licensed | ||||||
8 | graft grower organization or infuser organization that meets | ||||||
9 | the criteria set forth in this Act as a Social Equity Applicant | ||||||
10 | may not contain more than 10 milligrams per serving or 100 | ||||||
11 | milligrams per packaging of delta-8 tetrahydrocannabinol or | ||||||
12 | delta-9 tetrahydrocannabinol. | ||||||
13 | (g) Industrial hemp flower and biomass may be purchased | ||||||
14 | and extracted by licensed craft growers that meet the criteria | ||||||
15 | set forth in this Act as a Social Equity Applicant. | ||||||
16 | (h) Licensed cannabis cultivation centers and licensed | ||||||
17 | craft growers that meet the criteria set forth in this Act as a | ||||||
18 | Social Equity Applicant may procure or process industrial hemp | ||||||
19 | in the form of industrial hemp products, hemp extract, or hemp | ||||||
20 | concentrate, as those terms are defined under the Hemp | ||||||
21 | Cannabinoid Products Act. Licensed infusers may procure | ||||||
22 | industrial hemp in the form of industrial hemp, hemp extract, | ||||||
23 | or hemp concentrate, as those terms are used under the Hemp | ||||||
24 | Cannabinoid Products Act. All processed hemp derivatives must | ||||||
25 | be accompanied by a certificate of analysis showing potency | ||||||
26 | levels for THC, THCa, CBD, and CBDa, and any other |
| |||||||
| |||||||
1 | cannabinoids required by the Department by rule or guidance. | ||||||
2 | No hemp concentrate derived product, as that term is defined | ||||||
3 | under the Hemp Cannabinoid Products Act, shall contain more | ||||||
4 | than 10 milligrams per serving or 100 milligrams per packaging | ||||||
5 | of delta-8-tetrahydrocannabinol or | ||||||
6 | delta-9-tetrahydrocannabinol. | ||||||
7 | (i) A representative sample of all final products | ||||||
8 | containing industrial hemp or hemp derivatives must undergo | ||||||
9 | testing pursuant to the Compassionate Use of Medical Cannabis | ||||||
10 | Act, the Cannabis Regulation and Tax Act, and any applicable | ||||||
11 | administrative rules. | ||||||
12 | (j) Final products containing hemp or hemp derivatives are | ||||||
13 | subject to the requirements of the Compassionate Use of | ||||||
14 | Medical Cannabis Act, the Cannabis Regulation and Tax Act, and | ||||||
15 | any applicable administrative rules. | ||||||
16 | (410 ILCS 705/5-45) | ||||||
17 | Sec. 5-45. Illinois Cannabis Regulation Oversight Officer. | ||||||
18 | (a) The position of Illinois Cannabis Regulation Oversight | ||||||
19 | Officer is created within the Department of Financial and | ||||||
20 | Professional Regulation under the Secretary of Financial and | ||||||
21 | Professional Regulation. The Cannabis Regulation Oversight | ||||||
22 | Officer serves a coordinating role among State agencies | ||||||
23 | regarding this Act and the Compassionate Use of Medical | ||||||
24 | Cannabis Program Act. The Illinois Cannabis Regulation | ||||||
25 | Oversight Officer shall be appointed by the Governor with the |
| |||||||
| |||||||
1 | advice and consent of the Senate. The term of office of the | ||||||
2 | Officer shall expire on the third Monday of January in | ||||||
3 | odd-numbered years provided that he or she shall hold office | ||||||
4 | until a successor is appointed and qualified. In case of | ||||||
5 | vacancy in office during the recess of the Senate, the | ||||||
6 | Governor shall make a temporary appointment until the next | ||||||
7 | meeting of the Senate, when the Governor shall nominate some | ||||||
8 | person to fill the office, and any person so nominated who is | ||||||
9 | confirmed by the Senate shall hold office during the remainder | ||||||
10 | of the term and until his or her successor is appointed and | ||||||
11 | qualified. | ||||||
12 | (b) The Illinois Cannabis Regulation Oversight Officer has | ||||||
13 | the authority to: | ||||||
14 | (1) maintain a staff; | ||||||
15 | (2) make recommendations for administrative and | ||||||
16 | statutory changes; | ||||||
17 | (3) collect data both in Illinois and outside Illinois | ||||||
18 | regarding the regulation of cannabis; | ||||||
19 | (4) compile or assist in the compilation of any | ||||||
20 | reports required by this Act; | ||||||
21 | (5) ensure the coordination of efforts between various | ||||||
22 | State agencies involved in regulating and taxing the sale | ||||||
23 | of cannabis in Illinois; and | ||||||
24 | (6) encourage, promote, suggest, and report best | ||||||
25 | practices for ensuring diversity in the cannabis industry | ||||||
26 | in Illinois. |
| |||||||
| |||||||
1 | (c) The Illinois Cannabis Regulation Oversight Officer and | ||||||
2 | the Officer's staff shall not: | ||||||
3 | (1) participate in the issuance or award of any | ||||||
4 | cannabis business establishment license; or | ||||||
5 | (2) participate in discipline related to any cannabis | ||||||
6 | business establishment. | ||||||
7 | The Illinois Cannabis Regulation Officer is not prohibited | ||||||
8 | from coordinating with and making recommendations to agencies | ||||||
9 | regarding licensing and disciplinary policies and procedures. | ||||||
10 | (d) Any funding required for the Illinois Cannabis | ||||||
11 | Regulation Oversight Officer, its staff, or its activities | ||||||
12 | shall be drawn from the Cannabis Regulation Fund. | ||||||
13 | (e) The Illinois Cannabis Regulation Oversight Officer | ||||||
14 | shall commission and publish one or more disparity and | ||||||
15 | availability studies that: (1) evaluates whether there exists | ||||||
16 | discrimination in the State's cannabis industry; and (2) if | ||||||
17 | so, evaluates the impact of such discrimination on the State | ||||||
18 | and includes recommendations to the Department of Financial | ||||||
19 | and Professional Regulation and the Department of Agriculture | ||||||
20 | for reducing or eliminating any identified barriers to entry | ||||||
21 | in the cannabis market. Such disparity and availability | ||||||
22 | studies shall examine each license type issued pursuant to | ||||||
23 | Sections 15-25, 15-30.1, or 15-35.20, subsection (a) of | ||||||
24 | Section 30-5, or subsection (a) of Section 35-5, or Article 15 | ||||||
25 | of the Hemp Cannabinoid Products Act, and shall be initiated | ||||||
26 | within 180 days from the issuance of the first of each license |
| |||||||
| |||||||
1 | authorized by those Sections. The results of each disparity | ||||||
2 | and availability study shall be reported to the General | ||||||
3 | Assembly and the Governor no later than 12 months after the | ||||||
4 | commission of each study. | ||||||
5 | The Illinois Cannabis Regulation Oversight Officer shall | ||||||
6 | forward a copy of its findings and recommendations to the | ||||||
7 | Department of Financial and Professional Regulation, the | ||||||
8 | Department of Agriculture, the Department of Commerce and | ||||||
9 | Economic Opportunity, the General Assembly, and the Governor. | ||||||
10 | (f) The Illinois Cannabis Regulation Oversight Officer may | ||||||
11 | compile, collect, or otherwise gather data necessary for the | ||||||
12 | administration of this Act and to carry out the Officer's duty | ||||||
13 | relating to the recommendation of policy changes. The Illinois | ||||||
14 | Cannabis Regulation Oversight Officer may direct the | ||||||
15 | Department of Agriculture, Department of Financial and | ||||||
16 | Professional Regulation, Department of Public Health, | ||||||
17 | Department of Human Services, and Department of Commerce and | ||||||
18 | Economic Opportunity to assist in the compilation, collection, | ||||||
19 | and data gathering authorized pursuant to this subsection. The | ||||||
20 | Illinois Cannabis Regulation Oversight Officer shall compile | ||||||
21 | all of the data into a single report and submit the report to | ||||||
22 | the Governor and the General Assembly and publish the report | ||||||
23 | on its website. | ||||||
24 | (Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21.) | ||||||
25 | (410 ILCS 705/10-10) |
| |||||||
| |||||||
1 | Sec. 10-10. Possession limit. | ||||||
2 | (a) Except if otherwise authorized by this Act, for a | ||||||
3 | person who is 21 years of age or older and a resident of this | ||||||
4 | State, the possession limit is as follows: | ||||||
5 | (1) 30 grams of cannabis flower; | ||||||
6 | (2) no more than 500 milligrams of THC contained in | ||||||
7 | cannabis-infused product , 500 milligrams of THC contained | ||||||
8 | in a hemp concentrate derived products, or 500 milligrams | ||||||
9 | of THC contained in both cannabis-infused products and | ||||||
10 | hemp concentrate derived products ; | ||||||
11 | (3) 5 grams of cannabis concentrate; and | ||||||
12 | (4) for registered qualifying patients, any cannabis | ||||||
13 | produced by cannabis plants grown under subsection (b) of | ||||||
14 | Section 10-5, provided any amount of cannabis produced in | ||||||
15 | excess of 30 grams of raw cannabis or its equivalent must | ||||||
16 | remain secured within the residence or residential | ||||||
17 | property in which it was grown. | ||||||
18 | (b) For a person who is 21 years of age or older and who is | ||||||
19 | not a resident of this State, the possession limit is: | ||||||
20 | (1) 15 grams of cannabis flower; | ||||||
21 | (2) 2.5 grams of cannabis concentrate , 250 milligrams | ||||||
22 | of THC contained in a hemp concentrate derived products, | ||||||
23 | or 250 milligrams of THC contained in both | ||||||
24 | cannabis-infused products and hemp concentrate derived | ||||||
25 | products ; and | ||||||
26 | (3) 250 milligrams of THC contained in a |
| |||||||
| |||||||
1 | cannabis-infused product. | ||||||
2 | (c) The possession limits found in subsections (a) and (b) | ||||||
3 | of this Section are to be considered cumulative. | ||||||
4 | (d) No person shall knowingly obtain, seek to obtain, or | ||||||
5 | possess an amount of cannabis from a dispensing organization | ||||||
6 | or craft grower that would cause him or her to exceed the | ||||||
7 | possession limit under this Section, including cannabis that | ||||||
8 | is cultivated by a person under this Act or obtained under the | ||||||
9 | Compassionate Use of Medical Cannabis Program Act. | ||||||
10 | (e) Cannabis and cannabis-derived substances regulated | ||||||
11 | under the Industrial Hemp Act are not covered by this Act. | ||||||
12 | (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.) | ||||||
13 | (410 ILCS 705/15-35.5 new) | ||||||
14 | Sec. 15-35.5. Intoxicating Hemp-Derived THC Consumer | ||||||
15 | Products Safety Committee. | ||||||
16 | (a) The General Assembly finds that an Intoxicating | ||||||
17 | Hemp-Derived THC Consumer Products Safety Committee is | ||||||
18 | necessary to evaluate the public health impacts, product | ||||||
19 | formulations, manufacturing standards, and consumer safety | ||||||
20 | standards for intoxicating THC products derived or produced | ||||||
21 | from the industrial hemp, and make recommendations to the | ||||||
22 | General Assembly, the Governor, the Attorney General, and | ||||||
23 | State regulatory agencies on a regulatory framework for the | ||||||
24 | manufacture, distribution, and sale of hemp-derived THC | ||||||
25 | consumer products within Illinois. |
| |||||||
| |||||||
1 | (b) The Committee shall consist of the following members: | ||||||
2 | (1) a member of the Senate, designated by the | ||||||
3 | President of the Senate; | ||||||
4 | (2) a member of the House of Representatives, | ||||||
5 | designated by the Speaker of the House of Representatives; | ||||||
6 | (3) a member of the Senate, designated by the Minority | ||||||
7 | Leader of the Senate; | ||||||
8 | (4) a member of the House of Representative, | ||||||
9 | designated by the Minority Leader of the House of | ||||||
10 | Representatives; | ||||||
11 | (5) the Illinois Cannabis Regulation and Oversight | ||||||
12 | Officer, or a designee; | ||||||
13 | (6) the Director of Agriculture, or a designee; | ||||||
14 | (7) the Secretary of Financial and Professional | ||||||
15 | Regulation, or a designee; | ||||||
16 | (8) the Director of Public Health, or a designee; | ||||||
17 | (9) the Director of Revenue, or a designee; | ||||||
18 | (10) the Attorney General, or a designee; | ||||||
19 | (11) the Director of the Illinois State Police, or a | ||||||
20 | designee; | ||||||
21 | (12) one member who is an attorney with expertise in | ||||||
22 | the regulation of cannabis, appointed by the Director of | ||||||
23 | Agriculture; | ||||||
24 | (13) one member who is an individual with expertise in | ||||||
25 | the processing of cannabis, appointed by the Director of | ||||||
26 | Agriculture; |
| |||||||
| |||||||
1 | (14) one member who is an individual with expertise in | ||||||
2 | consumer safety over hemp and cannabis product | ||||||
3 | formulations, appointed by the Director of Public Health; | ||||||
4 | (15) one member who is a physician with expertise in | ||||||
5 | the consumer safety impacts of hemp and cannabis product | ||||||
6 | consumption and its effects on the mind and body, | ||||||
7 | appointed by the Director of Public Health; | ||||||
8 | (16) one member who is a laboratory technician or | ||||||
9 | scientist with expertise in the testing and evaluation of | ||||||
10 | cannabis product safety, appointed by the Director of | ||||||
11 | Agriculture; | ||||||
12 | (17) one member who is an individual with expertise in | ||||||
13 | consumer product approvals and requirements under the | ||||||
14 | Food, Drug, and Cosmetic Act (21 U.S.C. 9), appointed by | ||||||
15 | the Director of Public Health; | ||||||
16 | (18) one member who is a school superintendent or | ||||||
17 | principal, appointed by the State Superintendent of | ||||||
18 | Education; and | ||||||
19 | (19) one member who is a college or university | ||||||
20 | representative with expertise in research and development | ||||||
21 | of consumer safety standards and products, appointed by | ||||||
22 | the State Superintendent of Education. | ||||||
23 | (c) The Committee shall produce a report on or before | ||||||
24 | January 1, 2025 with recommendations on appropriate consumer | ||||||
25 | safety standards, including product formulations, | ||||||
26 | manufacturing standards, advertising standards, and a |
| |||||||
| |||||||
1 | comprehensive regulatory framework for the safe manufacture, | ||||||
2 | distribution, and sale of hemp-derived THC products within | ||||||
3 | this State. | ||||||
4 | (d) The Department of Agriculture, the Department of | ||||||
5 | Financial and Professional Regulation, the Cannabis Oversight | ||||||
6 | Officer, the Department of Public Health, the Illinois State | ||||||
7 | Police, and the Attorney General shall issue a report with any | ||||||
8 | legislative recommendations, if deemed necessary, to the | ||||||
9 | General Assembly on or before March 1, 2025 to establish a | ||||||
10 | regulatory and enforcement framework for hemp-derived THC | ||||||
11 | products to be manufactured, distributed, and sold to | ||||||
12 | consumers within this State. | ||||||
13 | (410 ILCS 705/15-155) | ||||||
14 | Sec. 15-155. Unlicensed practice; violation; civil | ||||||
15 | penalty. | ||||||
16 | (a) In addition to any other penalty provided by law, any | ||||||
17 | person who practices, offers to practice, attempts to | ||||||
18 | practice, or holds oneself out to practice as a licensed | ||||||
19 | dispensing organization owner, principal officer, | ||||||
20 | agent-in-charge, or agent , cultivates, processes, distributes, | ||||||
21 | sells, or offers for sale cannabis, cannabis-infused products, | ||||||
22 | cannabis concentrates, or cannabis flower without being | ||||||
23 | licensed under this Act shall, in addition to any other | ||||||
24 | penalty provided by law, pay a civil penalty to the Department | ||||||
25 | of Financial and Professional Regulation in an amount not to |
| |||||||
| |||||||
1 | exceed $10,000 for each offense as determined by the | ||||||
2 | Department. Each day a person engages in unlicensed practice | ||||||
3 | in violation of the provisions of this Section constitutes a | ||||||
4 | separate offense. The civil penalty shall be assessed by the | ||||||
5 | Department after a hearing is held in accordance with the | ||||||
6 | provisions set forth in this Act regarding the provision of a | ||||||
7 | hearing for the discipline of a licensee. | ||||||
8 | (b) The Department , the Attorney General, any State or | ||||||
9 | local law enforcement agency, or any State's Attorney may has | ||||||
10 | the authority and power to investigate any and all unlicensed | ||||||
11 | activity. | ||||||
12 | (b-5) If a person is convicted of unlicensed activity | ||||||
13 | under this Act, the Hemp Cannabinoid Products Act, or the | ||||||
14 | Compassionate Use of Medical Cannabis Act, the clerk of the | ||||||
15 | court in which the conviction is had shall, within 5 days after | ||||||
16 | the conviction, forward to the Secretary of Financial and | ||||||
17 | Professional Regulation a report of the conviction, and the | ||||||
18 | court may recommend the suspension of any licenses awarded to | ||||||
19 | the convicted person under this Act, the Hemp Cannabinoid | ||||||
20 | Products Act, or the Compassionate Use of Medical Cannabis | ||||||
21 | Act. | ||||||
22 | (b-10) If a person is convicted for a third or subsequent | ||||||
23 | violation in a 3-year period of unlicensed activity under this | ||||||
24 | Act, the Hemp Cannabinoid Products Act, or the Compassionate | ||||||
25 | Use of Medical Cannabis Act, the judge of the court in which | ||||||
26 | the conviction is had shall require the immediate surrender to |
| |||||||
| |||||||
1 | the clerk of the court of all licenses or conditional licenses | ||||||
2 | awarded to the convicted person under this Act, the Hemp | ||||||
3 | Cannabinoid Products Act, or the Compassionate Use of Medical | ||||||
4 | Cannabis Act, and the clerk of the court shall, within 5 days | ||||||
5 | after the conviction, forward the surrendered licenses, | ||||||
6 | together with a report of the conviction, to the Secretary of | ||||||
7 | Financial and Professional Regulation. | ||||||
8 | (c) The civil penalty shall be paid within 60 days after | ||||||
9 | the effective date of the order imposing the civil penalty or | ||||||
10 | in accordance with the order imposing the civil penalty. The | ||||||
11 | order shall constitute a judgment and may be filed and | ||||||
12 | execution had thereon in the same manner as any judgment from | ||||||
13 | any court of this State. | ||||||
14 | (d) A violation of subsection (a) is an unlawful practice | ||||||
15 | under Section 2Z of the Consumer Fraud and Deceptive Business | ||||||
16 | Practices Act. All remedies, penalties, and authority granted | ||||||
17 | to the Attorney General under that Act shall be available for | ||||||
18 | the enforcement of this Act. | ||||||
19 | (e) Nothing in this Section prohibits a unit of local | ||||||
20 | government from enacting a local law or ordinance to carry out | ||||||
21 | enforcement activities and assess civil penalties against | ||||||
22 | unlicensed cannabis sales. | ||||||
23 | (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.) | ||||||
24 | (410 ILCS 705/20-60 new) | ||||||
25 | Sec. 20-60. Unlicensed practice; violation; civil penalty. |
| |||||||
| |||||||
1 | (a) In addition to any other penalty provided by law, a | ||||||
2 | person who practices, offers to practice, attempts to | ||||||
3 | practice, or holds oneself out to practice as a licensed | ||||||
4 | cultivation center, infuser, craft grower organization, hemp | ||||||
5 | concentrate infuser, hemp extract enforcer, or hemp processor | ||||||
6 | or a principal officer, agent-in-charge, or agent or who | ||||||
7 | cultivates, processes, distributes, sells, or offers for sale | ||||||
8 | cannabis, cannabis-infused products, cannabis concentrates, | ||||||
9 | cannabis flower, intermediate hemp products, hemp concentrate, | ||||||
10 | hemp extract, hemp extract derived products, or hemp | ||||||
11 | concentrate derived products without being licensed under this | ||||||
12 | Act, the Hemp Cannabinoid Products Act, or the Compassionate | ||||||
13 | Use of Medical Cannabis Act shall, in addition to any other | ||||||
14 | penalty provided by law, pay a civil penalty to the Department | ||||||
15 | of Agriculture in an amount not to exceed $10,000 for each | ||||||
16 | offense. Each day any person engages in unlicensed practice in | ||||||
17 | violation of the provisions of this Section constitutes a | ||||||
18 | separate offense. The civil penalty shall be assessed by the | ||||||
19 | Department after a hearing is held under the provisions set | ||||||
20 | forth in this Act regarding hearings for the discipline of a | ||||||
21 | licensee. | ||||||
22 | (b) The Department, the Attorney General, a State or local | ||||||
23 | law enforcement agency, or a State's Attorney may investigate | ||||||
24 | any and all unlicensed activity. | ||||||
25 | (b-5) If a person is convicted of unlicensed activity | ||||||
26 | under this Act, the Hemp Cannabinoid Products Act, or the |
| |||||||
| |||||||
1 | Compassionate Use of Medical Cannabis Act, the clerk of the | ||||||
2 | court in which the conviction is had shall, within 5 days after | ||||||
3 | the conviction, forward to the Director of Agriculture a | ||||||
4 | report of the conviction, and the court may recommend the | ||||||
5 | suspension of any licenses awarded to the convicted person | ||||||
6 | under this Act, the Hemp Cannabinoid Products Act, or the | ||||||
7 | Compassionate Use of Medical Cannabis Act, | ||||||
8 | (b-10) If a person is convicted, for a third subsequent | ||||||
9 | violation in a 3-year period, of unlicensed activity under | ||||||
10 | this Act, the Hemp Cannabinoid Products Act, or the | ||||||
11 | Compassionate Use of Medical Cannabis Act, the judge of the | ||||||
12 | court in which the conviction is had shall require the | ||||||
13 | surrender to the clerk of the court of all licenses or | ||||||
14 | conditional license awarded to the convicted person under this | ||||||
15 | Act, the Hemp Cannabinoid Products Act, or the Compassionate | ||||||
16 | Use of Medical Cannabis Act, and the clerk of the court shall, | ||||||
17 | within 5 days after the conviction, forward the surrendered | ||||||
18 | licenses, together with a report of the conviction, to the | ||||||
19 | Director of Agriculture. | ||||||
20 | (c) The civil penalty shall be paid within 60 days after | ||||||
21 | the effective date of the order imposing the civil penalty or | ||||||
22 | in accordance with the order imposing the civil penalty. The | ||||||
23 | order shall constitute a judgment and may be filed and | ||||||
24 | execution had thereon in the same manner as any judgment from | ||||||
25 | any court of this State. | ||||||
26 | (d) In addition to any other remedies or penalties |
| |||||||
| |||||||
1 | provided by law, upon a third or subsequent revocation or | ||||||
2 | suspension of a license, a unit of local government may | ||||||
3 | suspend or revoke any locally established licenses held by the | ||||||
4 | person and prohibit the person from further operations and | ||||||
5 | seize any cannabis or THC product. | ||||||
6 | (410 ILCS 705/55-35) | ||||||
7 | Sec. 55-35. Administrative rulemaking. | ||||||
8 | (a) No later than 180 days after the effective date of this | ||||||
9 | Act, the Department of Agriculture, the Illinois State Police, | ||||||
10 | the Department of Financial and Professional Regulation, the | ||||||
11 | Department of Revenue, the Department of Commerce and Economic | ||||||
12 | Opportunity, and the Treasurer's Office shall adopt permanent | ||||||
13 | rules in accordance with their responsibilities under this | ||||||
14 | Act. The Department of Agriculture, the Illinois State Police, | ||||||
15 | the Department of Financial and Professional Regulation, the | ||||||
16 | Department of Revenue, and the Department of Commerce and | ||||||
17 | Economic Opportunity may adopt rules necessary to regulate | ||||||
18 | personal cannabis use through the use of emergency rulemaking | ||||||
19 | in accordance with subsection (gg) of Section 5-45 of the | ||||||
20 | Illinois Administrative Procedure Act. The General Assembly | ||||||
21 | finds that the adoption of rules to regulate cannabis use is | ||||||
22 | deemed an emergency and necessary for the public interest, | ||||||
23 | safety, and welfare. | ||||||
24 | (b) The Department of Agriculture rules may address, but | ||||||
25 | are not limited to, the following matters related to |
| |||||||
| |||||||
1 | cultivation centers, craft growers, infuser organizations, and | ||||||
2 | transporting organizations with the goal of protecting against | ||||||
3 | diversion and theft, without imposing an undue burden on the | ||||||
4 | cultivation centers, craft growers, infuser organizations, or | ||||||
5 | transporting organizations: | ||||||
6 | (1) oversight requirements for cultivation centers, | ||||||
7 | craft growers, infuser organizations, and transporting | ||||||
8 | organizations; | ||||||
9 | (2) recordkeeping requirements for cultivation | ||||||
10 | centers, craft growers, infuser organizations, and | ||||||
11 | transporting organizations; | ||||||
12 | (3) security requirements for cultivation centers, | ||||||
13 | craft growers, infuser organizations, and transporting | ||||||
14 | organizations, which shall include that each cultivation | ||||||
15 | center, craft grower, infuser organization, and | ||||||
16 | transporting organization location must be protected by a | ||||||
17 | fully operational security alarm system; | ||||||
18 | (4) standards for enclosed, locked facilities under | ||||||
19 | this Act; | ||||||
20 | (5) procedures for suspending or revoking the | ||||||
21 | identification cards of agents of cultivation centers, | ||||||
22 | craft growers, infuser organizations, and transporting | ||||||
23 | organizations that commit violations of this Act or the | ||||||
24 | rules adopted under this Section; | ||||||
25 | (6) rules concerning the intrastate transportation of | ||||||
26 | cannabis from a cultivation center, craft grower, infuser |
| |||||||
| |||||||
1 | organization, and transporting organization to a | ||||||
2 | dispensing organization; | ||||||
3 | (7) standards concerning the testing, quality, | ||||||
4 | cultivation, and processing of cannabis; and | ||||||
5 | (7.5) standards and rules for the investigation and | ||||||
6 | enforcement of unregulated and unlicensed sale of | ||||||
7 | cannabis, cannabis products, and hemp cannabinoid | ||||||
8 | products; and | ||||||
9 | (8) any other matters under oversight by the | ||||||
10 | Department of Agriculture as are necessary for the fair, | ||||||
11 | impartial, stringent, and comprehensive administration of | ||||||
12 | this Act. | ||||||
13 | (b-5) Notwithstanding any standards and rules developed | ||||||
14 | under paragraph (7.5) of subsection (b), the Department of | ||||||
15 | Agriculture shall update through official guidance and publish | ||||||
16 | publicly on its website the cannabinoids that it deems | ||||||
17 | tetrahydrocannabinol or THC on or before each January 1 and | ||||||
18 | July 1. | ||||||
19 | (c) The Department of Financial and Professional | ||||||
20 | Regulation rules may address, but are not limited to, the | ||||||
21 | following matters related to dispensing organizations, with | ||||||
22 | the goal of protecting against diversion and theft, without | ||||||
23 | imposing an undue burden on the dispensing organizations: | ||||||
24 | (1) oversight requirements for dispensing | ||||||
25 | organizations; | ||||||
26 | (2) recordkeeping requirements for dispensing |
| |||||||
| |||||||
1 | organizations; | ||||||
2 | (3) security requirements for dispensing | ||||||
3 | organizations, which shall include that each dispensing | ||||||
4 | organization location must be protected by a fully | ||||||
5 | operational security alarm system; | ||||||
6 | (4) procedures for suspending or revoking the licenses | ||||||
7 | of dispensing organization agents that commit violations | ||||||
8 | of this Act or the rules adopted under this Act; | ||||||
9 | (4.5) standards and rules for the investigation and | ||||||
10 | enforcement of unregulated and unlicensed sale of | ||||||
11 | cannabis, cannabis products, and hemp cannabinoid | ||||||
12 | products; and | ||||||
13 | (5) any other matters under oversight by the | ||||||
14 | Department of Financial and Professional Regulation that | ||||||
15 | are necessary for the fair, impartial, stringent, and | ||||||
16 | comprehensive administration of this Act. | ||||||
17 | (d) The Department of Revenue rules may address, but are | ||||||
18 | not limited to, the following matters related to the payment | ||||||
19 | of taxes by cannabis business establishments: | ||||||
20 | (1) recording of sales; | ||||||
21 | (2) documentation of taxable income and expenses; | ||||||
22 | (3) transfer of funds for the payment of taxes; or | ||||||
23 | (4) any other matter under the oversight of the | ||||||
24 | Department of Revenue. | ||||||
25 | (e) The Department of Commerce and Economic Opportunity | ||||||
26 | rules may address, but are not limited to, a loan program or |
| |||||||
| |||||||
1 | grant program to assist Social Equity Applicants access the | ||||||
2 | capital needed to start a cannabis business establishment. The | ||||||
3 | names of recipients and the amounts of any moneys received | ||||||
4 | through a loan program or grant program shall be a public | ||||||
5 | record. | ||||||
6 | (f) The Illinois State Police rules may address | ||||||
7 | enforcement of its authority under this Act. The Illinois | ||||||
8 | State Police shall not make rules that infringe on the | ||||||
9 | exclusive authority of the Department of Financial and | ||||||
10 | Professional Regulation or the Department of Agriculture over | ||||||
11 | licensees under this Act. | ||||||
12 | (g) The Department of Human Services shall develop and | ||||||
13 | disseminate: | ||||||
14 | (1) educational information about the health risks | ||||||
15 | associated with the use of cannabis; and | ||||||
16 | (2) one or more public education campaigns in | ||||||
17 | coordination with local health departments and community | ||||||
18 | organizations, including one or more prevention campaigns | ||||||
19 | directed at children, adolescents, parents, and pregnant | ||||||
20 | or breastfeeding women, to inform them of the potential | ||||||
21 | health risks associated with intentional or unintentional | ||||||
22 | cannabis use. | ||||||
23 | (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; | ||||||
24 | 102-538, eff. 8-20-21.) | ||||||
25 | Section 800-50. The Illinois Vehicle Code is amended by |
| |||||||
| |||||||
1 | changing Sections 2-118.2 and 11-501.2 and by adding Section | ||||||
2 | 11-502.20 as follows: | ||||||
3 | (625 ILCS 5/2-118.2) | ||||||
4 | Sec. 2-118.2. Opportunity for hearing; cannabis-related | ||||||
5 | and hemp concentrate derived products-related suspension under | ||||||
6 | Section 11-501.9. | ||||||
7 | (a) A suspension of driving privileges under Section | ||||||
8 | 11-501.9 of this Code shall not become effective until the | ||||||
9 | person is notified in writing of the impending suspension and | ||||||
10 | informed that he or she may request a hearing in the circuit | ||||||
11 | court of venue under subsection (b) of this Section and the | ||||||
12 | suspension shall become effective as provided in Section | ||||||
13 | 11-501.9. | ||||||
14 | (b) Within 90 days after the notice of suspension served | ||||||
15 | under Section 11-501.9, the person may make a written request | ||||||
16 | for a judicial hearing in the circuit court of venue. The | ||||||
17 | request to the circuit court shall state the grounds upon | ||||||
18 | which the person seeks to have the suspension rescinded. | ||||||
19 | Within 30 days after receipt of the written request or the | ||||||
20 | first appearance date on the Uniform Traffic Ticket issued for | ||||||
21 | a violation of Section 11-501 of this Code, or a similar | ||||||
22 | provision of a local ordinance, the hearing shall be conducted | ||||||
23 | by the circuit court having jurisdiction. This judicial | ||||||
24 | hearing, request, or process shall not stay or delay the | ||||||
25 | suspension. The hearing shall proceed in the court in the same |
| |||||||
| |||||||
1 | manner as in other civil proceedings. | ||||||
2 | The hearing may be conducted upon a review of the law | ||||||
3 | enforcement officer's own official reports; provided however, | ||||||
4 | that the person may subpoena the officer. Failure of the | ||||||
5 | officer to answer the subpoena shall be considered grounds for | ||||||
6 | a continuance if in the court's discretion the continuance is | ||||||
7 | appropriate. | ||||||
8 | The scope of the hearing shall be limited to the issues of: | ||||||
9 | (1) Whether the officer had reasonable suspicion to | ||||||
10 | believe that the person was driving or in actual physical | ||||||
11 | control of a motor vehicle upon a highway while impaired | ||||||
12 | by the use of cannabis or hemp concentrate derived | ||||||
13 | products ; and | ||||||
14 | (2) Whether the person, after being advised by the | ||||||
15 | officer that the privilege to operate a motor vehicle | ||||||
16 | would be suspended if the person refused to submit to and | ||||||
17 | complete field sobriety tests or validated roadside | ||||||
18 | chemical tests, did refuse to submit to or complete field | ||||||
19 | sobriety tests or validated roadside chemical tests | ||||||
20 | authorized under Section 11-501.9; and | ||||||
21 | (3) Whether the person after being advised by the | ||||||
22 | officer that the privilege to operate a motor vehicle | ||||||
23 | would be suspended if the person submitted to field | ||||||
24 | sobriety tests or validated roadside chemical tests that | ||||||
25 | disclosed the person was impaired by the use of cannabis | ||||||
26 | or hemp concentrate derived products , did submit to field |
| |||||||
| |||||||
1 | sobriety tests or validated roadside chemical tests that | ||||||
2 | disclosed that the person was impaired by the use of | ||||||
3 | cannabis or hemp concentrate derived products . | ||||||
4 | Upon the conclusion of the judicial hearing, the circuit | ||||||
5 | court shall sustain or rescind the suspension and immediately | ||||||
6 | notify the Secretary of State. Reports received by the | ||||||
7 | Secretary of State under this Section shall be privileged | ||||||
8 | information and for use only by the courts, police officers, | ||||||
9 | and Secretary of State. | ||||||
10 | (Source: P.A. 101-27, eff. 6-25-19; 101-363, eff. 8-9-19; | ||||||
11 | 101-593, eff. 12-4-19.) | ||||||
12 | (625 ILCS 5/11-501.2) (from Ch. 95 1/2, par. 11-501.2) | ||||||
13 | Sec. 11-501.2. Chemical and other tests. | ||||||
14 | (a) Upon the trial of any civil or criminal action or | ||||||
15 | proceeding arising out of an arrest for an offense as defined | ||||||
16 | in Section 11-501 or a similar local ordinance or proceedings | ||||||
17 | pursuant to Section 2-118.1, evidence of the concentration of | ||||||
18 | alcohol, other drug or drugs, or intoxicating compound or | ||||||
19 | compounds, or any combination thereof in a person's blood or | ||||||
20 | breath at the time alleged, as determined by analysis of the | ||||||
21 | person's blood, urine, breath, or other bodily substance, | ||||||
22 | shall be admissible. Where such test is made the following | ||||||
23 | provisions shall apply: | ||||||
24 | 1. Chemical analyses of the person's blood, urine, | ||||||
25 | breath, or other bodily substance to be considered valid |
| |||||||
| |||||||
1 | under the provisions of this Section shall have been | ||||||
2 | performed according to standards promulgated by the | ||||||
3 | Illinois State Police by a licensed physician, registered | ||||||
4 | nurse, trained phlebotomist, licensed paramedic, or other | ||||||
5 | individual possessing a valid permit issued by that | ||||||
6 | Department for this purpose. The Director of the Illinois | ||||||
7 | State Police is authorized to approve satisfactory | ||||||
8 | techniques or methods, to ascertain the qualifications and | ||||||
9 | competence of individuals to conduct such analyses, to | ||||||
10 | issue permits which shall be subject to termination or | ||||||
11 | revocation at the discretion of that Department and to | ||||||
12 | certify the accuracy of breath testing equipment. The | ||||||
13 | Illinois State Police shall prescribe regulations as | ||||||
14 | necessary to implement this Section. | ||||||
15 | 2. When a person in this State shall submit to a blood | ||||||
16 | test at the request of a law enforcement officer under the | ||||||
17 | provisions of Section 11-501.1, only a physician | ||||||
18 | authorized to practice medicine, a licensed physician | ||||||
19 | assistant, a licensed advanced practice registered nurse, | ||||||
20 | a registered nurse, trained phlebotomist, or licensed | ||||||
21 | paramedic, or other qualified person approved by the | ||||||
22 | Illinois State Police may withdraw blood for the purpose | ||||||
23 | of determining the alcohol, drug, or alcohol and drug | ||||||
24 | content therein. This limitation shall not apply to the | ||||||
25 | taking of breath, other bodily substance, or urine | ||||||
26 | specimens. |
| |||||||
| |||||||
1 | When a blood test of a person who has been taken to an | ||||||
2 | adjoining state for medical treatment is requested by an | ||||||
3 | Illinois law enforcement officer, the blood may be | ||||||
4 | withdrawn only by a physician authorized to practice | ||||||
5 | medicine in the adjoining state, a licensed physician | ||||||
6 | assistant, a licensed advanced practice registered nurse, | ||||||
7 | a registered nurse, a trained phlebotomist acting under | ||||||
8 | the direction of the physician, or licensed paramedic. The | ||||||
9 | law enforcement officer requesting the test shall take | ||||||
10 | custody of the blood sample, and the blood sample shall be | ||||||
11 | analyzed by a laboratory certified by the Illinois State | ||||||
12 | Police for that purpose. | ||||||
13 | 3. The person tested may have a physician, or a | ||||||
14 | qualified technician, chemist, registered nurse, or other | ||||||
15 | qualified person of their own choosing administer a | ||||||
16 | chemical test or tests in addition to any administered at | ||||||
17 | the direction of a law enforcement officer. The failure or | ||||||
18 | inability to obtain an additional test by a person shall | ||||||
19 | not preclude the admission of evidence relating to the | ||||||
20 | test or tests taken at the direction of a law enforcement | ||||||
21 | officer. | ||||||
22 | 4. Upon the request of the person who shall submit to a | ||||||
23 | chemical test or tests at the request of a law enforcement | ||||||
24 | officer, full information concerning the test or tests | ||||||
25 | shall be made available to the person or such person's | ||||||
26 | attorney. |
| |||||||
| |||||||
1 | 5. Alcohol concentration shall mean either grams of | ||||||
2 | alcohol per 100 milliliters of blood or grams of alcohol | ||||||
3 | per 210 liters of breath. | ||||||
4 | 6. Tetrahydrocannabinol concentration means either 5 | ||||||
5 | nanograms or more of delta-9-tetrahydrocannabinol or | ||||||
6 | delta-8-tetrahydrocannabinol per milliliter of whole blood | ||||||
7 | or 10 nanograms or more of delta-9-tetrahydrocannabinol or | ||||||
8 | delta-8-tetrahydrocannabinol per milliliter of other | ||||||
9 | bodily substance. | ||||||
10 | (a-5) Law enforcement officials may use validated roadside | ||||||
11 | chemical tests or standardized field sobriety tests approved | ||||||
12 | by the National Highway Traffic Safety Administration when | ||||||
13 | conducting investigations of a violation of Section 11-501 or | ||||||
14 | similar local ordinance by drivers suspected of driving under | ||||||
15 | the influence of cannabis or hemp concentrate derived | ||||||
16 | products . The General Assembly finds that (i) validated | ||||||
17 | roadside chemical tests are effective means to determine if a | ||||||
18 | person is under the influence of cannabis or hemp concentrate | ||||||
19 | derived products and (ii) standardized field sobriety tests | ||||||
20 | approved by the National Highway Traffic Safety Administration | ||||||
21 | are divided attention tasks that are intended to determine if | ||||||
22 | a person is under the influence of cannabis or hemp | ||||||
23 | concentrate derived products . The purpose of these tests is to | ||||||
24 | determine the effect of the use of cannabis or hemp | ||||||
25 | concentrate derived products on a person's capacity to think | ||||||
26 | and act with ordinary care and therefore operate a motor |
| |||||||
| |||||||
1 | vehicle safely. Therefore, the results of these validated | ||||||
2 | roadside chemical tests and standardized field sobriety tests, | ||||||
3 | appropriately administered, shall be admissible in the trial | ||||||
4 | of any civil or criminal action or proceeding arising out of an | ||||||
5 | arrest for a cannabis-related or hemp concentrate derived | ||||||
6 | products-related offense as defined in Section 11-501 or a | ||||||
7 | similar local ordinance or proceedings under Section 2-118.1 | ||||||
8 | or 2-118.2. Where a test is made the following provisions | ||||||
9 | shall apply: | ||||||
10 | 1. The person tested may have a physician, or a | ||||||
11 | qualified technician, chemist, registered nurse, or other | ||||||
12 | qualified person of their own choosing administer a | ||||||
13 | chemical test or tests in addition to the standardized | ||||||
14 | field sobriety test or tests administered at the direction | ||||||
15 | of a law enforcement officer. The failure or inability to | ||||||
16 | obtain an additional test by a person does not preclude | ||||||
17 | the admission of evidence relating to the test or tests | ||||||
18 | taken at the direction of a law enforcement officer. | ||||||
19 | 2. Upon the request of the person who shall submit to | ||||||
20 | validated roadside chemical tests or a standardized field | ||||||
21 | sobriety test or tests at the request of a law enforcement | ||||||
22 | officer, full information concerning the test or tests | ||||||
23 | shall be made available to the person or the person's | ||||||
24 | attorney. | ||||||
25 | 3. At the trial of any civil or criminal action or | ||||||
26 | proceeding arising out of an arrest for an offense as |
| |||||||
| |||||||
1 | defined in Section 11-501 or a similar local ordinance or | ||||||
2 | proceedings under Section 2-118.1 or 2-118.2 in which the | ||||||
3 | results of these validated roadside chemical tests or | ||||||
4 | standardized field sobriety tests are admitted, the person | ||||||
5 | may present and the trier of fact may consider evidence | ||||||
6 | that the person lacked the physical capacity to perform | ||||||
7 | the validated roadside chemical tests or standardized | ||||||
8 | field sobriety tests. | ||||||
9 | (b) Upon the trial of any civil or criminal action or | ||||||
10 | proceeding arising out of acts alleged to have been committed | ||||||
11 | by any person while driving or in actual physical control of a | ||||||
12 | vehicle while under the influence of alcohol, the | ||||||
13 | concentration of alcohol in the person's blood or breath at | ||||||
14 | the time alleged as shown by analysis of the person's blood, | ||||||
15 | urine, breath, or other bodily substance shall give rise to | ||||||
16 | the following presumptions: | ||||||
17 | 1. If there was at that time an alcohol concentration | ||||||
18 | of 0.05 or less, it shall be presumed that the person was | ||||||
19 | not under the influence of alcohol. | ||||||
20 | 2. If there was at that time an alcohol concentration | ||||||
21 | in excess of 0.05 but less than 0.08, such facts shall not | ||||||
22 | give rise to any presumption that the person was or was not | ||||||
23 | under the influence of alcohol, but such fact may be | ||||||
24 | considered with other competent evidence in determining | ||||||
25 | whether the person was under the influence of alcohol. | ||||||
26 | 3. If there was at that time an alcohol concentration |
| |||||||
| |||||||
1 | of 0.08 or more, it shall be presumed that the person was | ||||||
2 | under the influence of alcohol. | ||||||
3 | 4. The foregoing provisions of this Section shall not | ||||||
4 | be construed as limiting the introduction of any other | ||||||
5 | relevant evidence bearing upon the question whether the | ||||||
6 | person was under the influence of alcohol. | ||||||
7 | (b-5) Upon the trial of any civil or criminal action or | ||||||
8 | proceeding arising out of acts alleged to have been committed | ||||||
9 | by any person while driving or in actual physical control of a | ||||||
10 | vehicle while under the influence of alcohol, other drug or | ||||||
11 | drugs, intoxicating compound or compounds or any combination | ||||||
12 | thereof, the concentration of cannabis or hemp concentrate | ||||||
13 | derived products in the person's whole blood or other bodily | ||||||
14 | substance at the time alleged as shown by analysis of the | ||||||
15 | person's blood or other bodily substance shall give rise to | ||||||
16 | the following presumptions: | ||||||
17 | 1. If there was a tetrahydrocannabinol concentration | ||||||
18 | of 5 nanograms or more in whole blood or 10 nanograms or | ||||||
19 | more in another an other bodily substance as defined in | ||||||
20 | this Section, it shall be presumed that the person was | ||||||
21 | under the influence of cannabis or hemp concentrate | ||||||
22 | derived product . | ||||||
23 | 2. If there was at that time a tetrahydrocannabinol | ||||||
24 | concentration of less than 5 nanograms in whole blood or | ||||||
25 | less than 10 nanograms in another an other bodily | ||||||
26 | substance, such facts shall not give rise to any |
| |||||||
| |||||||
1 | presumption that the person was or was not under the | ||||||
2 | influence of cannabis or hemp concentrate derived | ||||||
3 | products , but such fact may be considered with other | ||||||
4 | competent evidence in determining whether the person was | ||||||
5 | under the influence of cannabis or hemp concentrate | ||||||
6 | derived product . | ||||||
7 | (c) 1. If a person under arrest refuses to submit to a | ||||||
8 | chemical test under the provisions of Section 11-501.1, | ||||||
9 | evidence of refusal shall be admissible in any civil or | ||||||
10 | criminal action or proceeding arising out of acts alleged to | ||||||
11 | have been committed while the person under the influence of | ||||||
12 | alcohol, other drug or drugs, or intoxicating compound or | ||||||
13 | compounds, or any combination thereof was driving or in actual | ||||||
14 | physical control of a motor vehicle. | ||||||
15 | 2. Notwithstanding any ability to refuse under this Code | ||||||
16 | to submit to these tests or any ability to revoke the implied | ||||||
17 | consent to these tests, if a law enforcement officer has | ||||||
18 | probable cause to believe that a motor vehicle driven by or in | ||||||
19 | actual physical control of a person under the influence of | ||||||
20 | alcohol, other drug or drugs, or intoxicating compound or | ||||||
21 | compounds, or any combination thereof has caused the death or | ||||||
22 | personal injury to another, the law enforcement officer shall | ||||||
23 | request, and that person shall submit, upon the request of a | ||||||
24 | law enforcement officer, to a chemical test or tests of his or | ||||||
25 | her blood, breath, other bodily substance, or urine for the | ||||||
26 | purpose of determining the alcohol content thereof or the |
| |||||||
| |||||||
1 | presence of any other drug or combination of both. | ||||||
2 | This provision does not affect the applicability of or | ||||||
3 | imposition of driver's license sanctions under Section | ||||||
4 | 11-501.1 of this Code. | ||||||
5 | 3. For purposes of this Section, a personal injury | ||||||
6 | includes any Type A injury as indicated on the traffic crash | ||||||
7 | report completed by a law enforcement officer that requires | ||||||
8 | immediate professional attention in either a doctor's office | ||||||
9 | or a medical facility. A Type A injury includes severe | ||||||
10 | bleeding wounds, distorted extremities, and injuries that | ||||||
11 | require the injured party to be carried from the scene. | ||||||
12 | (d) If a person refuses validated roadside chemical tests | ||||||
13 | or standardized field sobriety tests under Section 11-501.9 of | ||||||
14 | this Code, evidence of refusal shall be admissible in any | ||||||
15 | civil or criminal action or proceeding arising out of acts | ||||||
16 | committed while the person was driving or in actual physical | ||||||
17 | control of a vehicle and alleged to have been impaired by the | ||||||
18 | use of cannabis or hemp concentrate derived products . | ||||||
19 | (e) Illinois State Police compliance with the changes in | ||||||
20 | this amendatory Act of the 99th General Assembly concerning | ||||||
21 | testing of other bodily substances and tetrahydrocannabinol | ||||||
22 | concentration by Illinois State Police laboratories is subject | ||||||
23 | to appropriation and until the Illinois State Police adopt | ||||||
24 | standards and completion validation. Any laboratories that | ||||||
25 | test for the presence of cannabis or hemp concentrate derived | ||||||
26 | products or other drugs under this Article, the Snowmobile |
| |||||||
| |||||||
1 | Registration and Safety Act, or the Boat Registration and | ||||||
2 | Safety Act must comply with ISO/IEC 17025:2005. | ||||||
3 | (Source: P.A. 101-27, eff. 6-25-19; 102-538, eff. 8-20-21; | ||||||
4 | 102-982, eff. 7-1-23 .) | ||||||
5 | (625 ILCS 5/11-502.20 new) | ||||||
6 | Sec. 11-502.20. Possession of hemp concentrate derived | ||||||
7 | products in a motor vehicle. | ||||||
8 | (a) No driver may use hemp concentrate derived products | ||||||
9 | within the passenger area of any motor vehicle upon a highway | ||||||
10 | in this State. | ||||||
11 | (b) No driver may possess hemp concentrate derived | ||||||
12 | products within any area of any motor vehicle upon a highway in | ||||||
13 | this State except in a secured, sealed or resealable, | ||||||
14 | child-resistant hemp concentrate derived products container | ||||||
15 | that is inaccessible. | ||||||
16 | (c) No passenger may possess hemp concentrate derived | ||||||
17 | products within any passenger area of any motor vehicle upon a | ||||||
18 | highway in this State except in a secured, sealed or | ||||||
19 | resealable, child-resistant hemp concentrate derived products | ||||||
20 | container that is inaccessible. | ||||||
21 | (d) Any person who knowingly violates subsection (a), (b), | ||||||
22 | or (c) of this Section commits a Class A misdemeanor. | ||||||
23 | Section 800-55. The Juvenile Court Act of 1987 is amended | ||||||
24 | by changing Section 5-401 as follows: |
| |||||||
| |||||||
1 | (705 ILCS 405/5-401) | ||||||
2 | Sec. 5-401. Arrest and taking into custody of a minor. | ||||||
3 | (1) A law enforcement officer may, without a warrant, | ||||||
4 | (a) arrest a minor whom the officer with probable | ||||||
5 | cause believes to be a delinquent minor; or | ||||||
6 | (b) take into custody a minor who has been adjudged a | ||||||
7 | ward of the court and has escaped from any commitment | ||||||
8 | ordered by the court under this Act; or | ||||||
9 | (c) take into custody a minor whom the officer | ||||||
10 | reasonably believes has violated the conditions of | ||||||
11 | probation or supervision ordered by the court. | ||||||
12 | (2) Whenever a petition has been filed under Section 5-520 | ||||||
13 | and the court finds that the conduct and behavior of the minor | ||||||
14 | may endanger the health, person, welfare, or property of the | ||||||
15 | minor or others or that the circumstances of the minor's home | ||||||
16 | environment may endanger the minor's health, person, welfare | ||||||
17 | or property, a warrant may be issued immediately to take the | ||||||
18 | minor into custody. | ||||||
19 | (3) Except for minors accused of violation of an order of | ||||||
20 | the court, any minor accused of any act under federal or State | ||||||
21 | law, or a municipal or county ordinance that would not be | ||||||
22 | illegal if committed by an adult, cannot be placed in a jail, | ||||||
23 | municipal lockup, detention center, or secure correctional | ||||||
24 | facility. Juveniles accused with underage consumption and | ||||||
25 | underage possession of alcohol , or cannabis , or hemp |
| |||||||
| |||||||
1 | concentrate derived products cannot be placed in a jail, | ||||||
2 | municipal lockup, detention center, or correctional facility. | ||||||
3 | (Source: P.A. 103-22, eff. 8-8-23.) | ||||||
4 | Section 800-60. The Cannabis Control Act is amended by | ||||||
5 | changing Sections 3, 4, 5, and 5.1 as follows: | ||||||
6 | (720 ILCS 550/3) (from Ch. 56 1/2, par. 703) | ||||||
7 | Sec. 3. As used in this Act, unless the context otherwise | ||||||
8 | requires: | ||||||
9 | (a) "Cannabis" includes marihuana, hashish and other | ||||||
10 | substances which are identified as including any parts of the | ||||||
11 | plant Cannabis Sativa, whether growing or not; the seeds | ||||||
12 | thereof, the resin extracted from any part of such plant; and | ||||||
13 | any compound, manufacture, salt, derivative, mixture, or | ||||||
14 | preparation of such plant, its seeds, or resin, including | ||||||
15 | tetrahydrocannabinol (THC) and all other cannabinol | ||||||
16 | derivatives, including its naturally occurring or | ||||||
17 | synthetically produced ingredients, whether produced directly | ||||||
18 | or indirectly by extraction, or independently by means of | ||||||
19 | chemical synthesis or by a combination of extraction and | ||||||
20 | chemical synthesis; but shall not include the mature stalks of | ||||||
21 | such plant, fiber produced from such stalks, oil or cake made | ||||||
22 | from the seeds of such plant, any other compound, manufacture, | ||||||
23 | salt, derivative, mixture, or preparation of such mature | ||||||
24 | stalks (except the resin extracted therefrom), fiber, oil or |
| |||||||
| |||||||
1 | cake, or the sterilized seed of such plant which is incapable | ||||||
2 | of germination. | ||||||
3 | (b) "Casual delivery" means the delivery of not more than | ||||||
4 | 10 grams of any substance containing cannabis without | ||||||
5 | consideration. | ||||||
6 | (c) "Department" means the Illinois Department of Human | ||||||
7 | Services (as successor to the Department of Alcoholism and | ||||||
8 | Substance Abuse) or its successor agency. | ||||||
9 | (d) "Deliver" or "delivery" means the actual, constructive | ||||||
10 | or attempted transfer of possession of cannabis, with or | ||||||
11 | without consideration, whether or not there is an agency | ||||||
12 | relationship. | ||||||
13 | (e) (Blank). | ||||||
14 | (e-5) "Hemp concentrate derived products" means a product | ||||||
15 | intended for human consumption that is derived from hemp | ||||||
16 | concentrate and meets the labeling and potency requirements | ||||||
17 | set forth in this Act of delta-8-tetrahydrocannabinol or | ||||||
18 | delta-9-tetrahydrocannabinol derived from any naturally | ||||||
19 | occurring cannabinoids found in hemp. | ||||||
20 | (f) "Director" means the Director of the Illinois State | ||||||
21 | Police or his designated agent. | ||||||
22 | (g) "Local authorities" means a duly organized State, | ||||||
23 | county, or municipal peace unit or police force. | ||||||
24 | (h) "Manufacture" means the production, preparation, | ||||||
25 | propagation, compounding, conversion or processing of | ||||||
26 | cannabis, either directly or indirectly, by extraction from |
| |||||||
| |||||||
1 | substances of natural origin, or independently by means of | ||||||
2 | chemical synthesis, or by a combination of extraction and | ||||||
3 | chemical synthesis, and includes any packaging or repackaging | ||||||
4 | of cannabis or labeling of its container, except that this | ||||||
5 | term does not include the preparation, compounding, packaging, | ||||||
6 | or labeling of cannabis as an incident to lawful research, | ||||||
7 | teaching, or chemical analysis and not for sale. | ||||||
8 | (i) "Person" means any individual, corporation, government | ||||||
9 | or governmental subdivision or agency, business trust, estate, | ||||||
10 | trust, partnership or association, or any other entity. | ||||||
11 | (j) "Produce" or "production" means planting, cultivating, | ||||||
12 | tending or harvesting. | ||||||
13 | (k) "State" includes the State of Illinois and any state, | ||||||
14 | district, commonwealth, territory, insular possession thereof, | ||||||
15 | and any area subject to the legal authority of the United | ||||||
16 | States of America. | ||||||
17 | (l) "Subsequent offense" means an offense under this Act, | ||||||
18 | the offender of which, prior to his conviction of the offense, | ||||||
19 | has at any time been convicted under this Act or under any laws | ||||||
20 | of the United States or of any state relating to cannabis, or | ||||||
21 | any controlled substance as defined in the Illinois Controlled | ||||||
22 | Substances Act. | ||||||
23 | (Source: P.A. 101-593, eff. 12-4-19; 102-538, eff. 8-20-21.) | ||||||
24 | (720 ILCS 550/4) (from Ch. 56 1/2, par. 704) | ||||||
25 | Sec. 4. Except as otherwise provided in the Cannabis |
| |||||||
| |||||||
1 | Regulation and Tax Act , and the Industrial Hemp Act, and the | ||||||
2 | Hemp Cannabinoid Products Act, it is unlawful for any person | ||||||
3 | knowingly to possess cannabis , hemp concentrate, intermediate | ||||||
4 | hemp products, or hemp concentrate derived products . | ||||||
5 | Any person who violates this Section with respect to: | ||||||
6 | (a) not more than 10 grams of any substance containing | ||||||
7 | cannabis , hemp concentrate, intermediate hemp products, or | ||||||
8 | hemp concentrate derived products or any combination | ||||||
9 | therein is guilty of a civil law violation punishable by a | ||||||
10 | minimum fine of $100 and a maximum fine of $200. The | ||||||
11 | proceeds of the fine shall be payable to the clerk of the | ||||||
12 | circuit court. Within 30 days after the deposit of the | ||||||
13 | fine, the clerk shall distribute the proceeds of the fine | ||||||
14 | as follows: | ||||||
15 | (1) $10 of the fine to the circuit clerk and $10 of | ||||||
16 | the fine to the law enforcement agency that issued the | ||||||
17 | citation; the proceeds of each $10 fine distributed to | ||||||
18 | the circuit clerk and each $10 fine distributed to the | ||||||
19 | law enforcement agency that issued the citation for | ||||||
20 | the violation shall be used to defer the cost of | ||||||
21 | automatic expungements under paragraph (2.5) of | ||||||
22 | subsection (a) of Section 5.2 of the Criminal | ||||||
23 | Identification Act; | ||||||
24 | (2) $15 to the county to fund drug addiction | ||||||
25 | services; | ||||||
26 | (3) $10 to the Office of the State's Attorneys |
| |||||||
| |||||||
1 | Appellate Prosecutor for use in training programs; | ||||||
2 | (4) $10 to the State's Attorney; and | ||||||
3 | (5) any remainder of the fine to the law | ||||||
4 | enforcement agency that issued the citation for the | ||||||
5 | violation. | ||||||
6 | With respect to funds designated for the Illinois | ||||||
7 | State Police, the moneys shall be remitted by the circuit | ||||||
8 | court clerk to the Illinois State Police within one month | ||||||
9 | after receipt for deposit into the State Police Operations | ||||||
10 | Assistance Fund. With respect to funds designated for the | ||||||
11 | Department of Natural Resources, the Department of Natural | ||||||
12 | Resources shall deposit the moneys into the Conservation | ||||||
13 | Police Operations Assistance Fund; | ||||||
14 | (b) more than 10 grams but not more than 30 grams of | ||||||
15 | any substance containing cannabis , hemp concentrate, | ||||||
16 | intermediate hemp products, or hemp concentrate derived | ||||||
17 | products or any combination therein is guilty of a Class B | ||||||
18 | misdemeanor; | ||||||
19 | (c) more than 30 grams but not more than 100 grams of | ||||||
20 | any substance containing cannabis , hemp concentrate, | ||||||
21 | intermediate hemp products, or hemp concentrate derived | ||||||
22 | products or any combination therein is guilty of a Class A | ||||||
23 | misdemeanor; provided, that if any offense under this | ||||||
24 | subsection (c) is a subsequent offense, the offender shall | ||||||
25 | be guilty of a Class 4 felony; | ||||||
26 | (d) more than 100 grams but not more than 500 grams of |
| |||||||
| |||||||
1 | any substance containing cannabis , hemp concentrate, | ||||||
2 | intermediate hemp products, or hemp concentrate derived | ||||||
3 | products or any combination therein is guilty of a Class 4 | ||||||
4 | felony; provided that if any offense under this subsection | ||||||
5 | (d) is a subsequent offense, the offender shall be guilty | ||||||
6 | of a Class 3 felony; | ||||||
7 | (e) more than 500 grams but not more than 2,000 grams | ||||||
8 | of any substance containing cannabis , hemp concentrate, | ||||||
9 | intermediate hemp products, or hemp concentrate derived | ||||||
10 | products or any combination therein is guilty of a Class 3 | ||||||
11 | felony; | ||||||
12 | (f) more than 2,000 grams but not more than 5,000 | ||||||
13 | grams of any substance containing cannabis , hemp | ||||||
14 | concentrate, intermediate hemp products, or hemp | ||||||
15 | concentrate derived products or any combination therein is | ||||||
16 | guilty of a Class 2 felony; | ||||||
17 | (g) more than 5,000 grams of any substance containing | ||||||
18 | cannabis , hemp concentrate, intermediate hemp products, or | ||||||
19 | hemp concentrate derived products or any combination | ||||||
20 | therein is guilty of a Class 1 felony. | ||||||
21 | Fines and assessments, such as fees or administrative | ||||||
22 | costs, authorized under this Section shall not be ordered or | ||||||
23 | imposed against a minor subject to Article III, IV, or V of the | ||||||
24 | Juvenile Court Act of 1987, or a minor under the age of 18 | ||||||
25 | transferred to adult court or excluded from juvenile court | ||||||
26 | jurisdiction under Article V of the Juvenile Court Act of |
| |||||||
| |||||||
1 | 1987, or the minor's parent, guardian, or legal custodian. | ||||||
2 | (Source: P.A. 102-538, eff. 8-20-21; 103-379, eff. 7-28-23.) | ||||||
3 | (720 ILCS 550/5) (from Ch. 56 1/2, par. 705) | ||||||
4 | Sec. 5. Except as otherwise provided in the Cannabis | ||||||
5 | Regulation and Tax Act , and the Industrial Hemp Act, and the | ||||||
6 | Hemp Cannabinoid Products Act, it is unlawful for any person | ||||||
7 | knowingly to manufacture, deliver, or possess with intent to | ||||||
8 | deliver, or manufacture, cannabis , hemp concentrate, | ||||||
9 | intermediate hemp products, or hemp concentrate derived | ||||||
10 | products . Any person who violates this Section with respect | ||||||
11 | to: | ||||||
12 | (a) not more than 2.5 grams of any substance | ||||||
13 | containing cannabis , hemp concentrate, intermediate hemp | ||||||
14 | products, or hemp concentrate derived products or any | ||||||
15 | combination therein is guilty of a Class B misdemeanor; | ||||||
16 | (b) more than 2.5 grams but not more than 10 grams of | ||||||
17 | any substance containing cannabis , hemp concentrate, | ||||||
18 | intermediate hemp products, or hemp concentrate derived | ||||||
19 | products or any combination therein is guilty of a Class A | ||||||
20 | misdemeanor; | ||||||
21 | (c) more than 10 grams but not more than 30 grams of | ||||||
22 | any substance containing cannabis , hemp concentrate, | ||||||
23 | intermediate hemp products, or hemp concentrate derived | ||||||
24 | products or any combination therein is guilty of a Class 4 | ||||||
25 | felony; |
| |||||||
| |||||||
1 | (d) more than 30 grams but not more than 500 grams of | ||||||
2 | any substance containing cannabis , hemp concentrate, | ||||||
3 | intermediate hemp products, or hemp concentrate derived | ||||||
4 | products or any combination therein is guilty of a Class 3 | ||||||
5 | felony for which a fine not to exceed $50,000 may be | ||||||
6 | imposed; | ||||||
7 | (e) more than 500 grams but not more than 2,000 grams | ||||||
8 | of any substance containing cannabis , hemp concentrate, | ||||||
9 | intermediate hemp products, or hemp concentrate derived | ||||||
10 | products or any combination therein is guilty of a Class 2 | ||||||
11 | felony for which a fine not to exceed $100,000 may be | ||||||
12 | imposed; | ||||||
13 | (f) more than 2,000 grams but not more than 5,000 | ||||||
14 | grams of any substance containing cannabis , hemp | ||||||
15 | concentrate, intermediate hemp products, or hemp | ||||||
16 | concentrate derived products or any combination therein is | ||||||
17 | guilty of a Class 1 felony for which a fine not to exceed | ||||||
18 | $150,000 may be imposed; | ||||||
19 | (g) more than 5,000 grams of any substance containing | ||||||
20 | cannabis , hemp concentrate, intermediate hemp products, or | ||||||
21 | hemp concentrate derived products or any combination | ||||||
22 | therein is guilty of a Class X felony for which a fine not | ||||||
23 | to exceed $200,000 may be imposed. | ||||||
24 | (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.) | ||||||
25 | (720 ILCS 550/5.1) (from Ch. 56 1/2, par. 705.1) |
| |||||||
| |||||||
1 | Sec. 5.1. Cannabis or hemp cannabinoid trafficking. | ||||||
2 | (a) Except for purposes authorized by this Act, the | ||||||
3 | Industrial Hemp Act, or the Cannabis Regulation and Tax Act, | ||||||
4 | or the Hemp Cannabinoid Products Act, any person who knowingly | ||||||
5 | brings or causes to be brought into this State for the purpose | ||||||
6 | of manufacture or delivery or with the intent to manufacture | ||||||
7 | or deliver 2,500 grams or more of cannabis , hemp concentrate, | ||||||
8 | intermediate hemp products, or hemp concentrate derived | ||||||
9 | products or any combination therein in this State or any other | ||||||
10 | state or country is guilty of cannabis or hemp cannabinoid | ||||||
11 | trafficking. | ||||||
12 | (b) A person convicted of cannabis , hemp concentrate, | ||||||
13 | intermediate hemp products, or hemp concentrate derived | ||||||
14 | products trafficking shall be sentenced to a term of | ||||||
15 | imprisonment not less than twice the minimum term and fined an | ||||||
16 | amount as authorized by subsection (f) or (g) of Section 5 of | ||||||
17 | this Act, based upon the amount of cannabis , hemp concentrate, | ||||||
18 | intermediate hemp products, or hemp concentrate derived | ||||||
19 | products or any combination therein brought or caused to be | ||||||
20 | brought into this State, and not more than twice the maximum | ||||||
21 | term of imprisonment and fined twice the amount as authorized | ||||||
22 | by subsection (f) or (g) of Section 5 of this Act, based upon | ||||||
23 | the amount of cannabis , hemp concentrate, intermediate hemp | ||||||
24 | products, or hemp concentrate derived products or any | ||||||
25 | combination therein brought or caused to be brought into this | ||||||
26 | State. |
| |||||||
| |||||||
1 | (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.) | ||||||
2 | Section 800-65. The Consumer Fraud and Deceptive Business | ||||||
3 | Practices Act is amended by changing Section 2Z as follows: | ||||||
4 | (815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z) | ||||||
5 | Sec. 2Z. Violations of other Acts. Any person who | ||||||
6 | knowingly violates the Automotive Repair Act, the Automotive | ||||||
7 | Collision Repair Act, the Home Repair and Remodeling Act, the | ||||||
8 | Dance Studio Act, the Physical Fitness Services Act, the | ||||||
9 | Hearing Instrument Consumer Protection Act, the Illinois Union | ||||||
10 | Label Act, the Installment Sales Contract Act, the Job | ||||||
11 | Referral and Job Listing Services Consumer Protection Act, the | ||||||
12 | Travel Promotion Consumer Protection Act, the Credit Services | ||||||
13 | Organizations Act, the Automatic Telephone Dialers Act, the | ||||||
14 | Pay-Per-Call Services Consumer Protection Act, the Telephone | ||||||
15 | Solicitations Act, the Illinois Funeral or Burial Funds Act, | ||||||
16 | the Cemetery Oversight Act, the Cemetery Care Act, the Safe | ||||||
17 | and Hygienic Bed Act, the Illinois Pre-Need Cemetery Sales | ||||||
18 | Act, the High Risk Home Loan Act, the Payday Loan Reform Act, | ||||||
19 | the Predatory Loan Prevention Act, the Mortgage Rescue Fraud | ||||||
20 | Act, subsection (a) or (b) of Section 3-10 of the Cigarette Tax | ||||||
21 | Act, subsection (a) or (b) of Section 3-10 of the Cigarette Use | ||||||
22 | Tax Act, the Electronic Mail Act, the Internet Caller | ||||||
23 | Identification Act, paragraph (6) of subsection (k) of Section | ||||||
24 | 6-305 of the Illinois Vehicle Code, Section 11-1431, 18d-115, |
| |||||||
| |||||||
1 | 18d-120, 18d-125, 18d-135, 18d-150, or 18d-153 of the Illinois | ||||||
2 | Vehicle Code, Article 3 of the Residential Real Property | ||||||
3 | Disclosure Act, the Automatic Contract Renewal Act, the | ||||||
4 | Reverse Mortgage Act, Section 25 of the Youth Mental Health | ||||||
5 | Protection Act, the Personal Information Protection Act, or | ||||||
6 | the Student Online Personal Protection Act , or subsection (a) | ||||||
7 | of Section 15-155 of the Cannabis Regulation and Tax Act | ||||||
8 | commits an unlawful practice within the meaning of this Act. | ||||||
9 | (Source: P.A. 100-315, eff. 8-24-17; 100-416, eff. 1-1-18; | ||||||
10 | 100-863, eff. 8-14-18; 101-658, eff. 3-23-21.) | ||||||
11 | Section 800-70. The Right to Privacy in the Workplace Act | ||||||
12 | is amended by changing Section 5 as follows: | ||||||
13 | (820 ILCS 55/5) (from Ch. 48, par. 2855) | ||||||
14 | Sec. 5. Discrimination for use of lawful products | ||||||
15 | prohibited. | ||||||
16 | (a) Except as otherwise specifically provided by law, | ||||||
17 | including Section 10-50 of the Cannabis Regulation and Tax Act | ||||||
18 | the Hemp Cannabinoid Products Act , and except as provided in | ||||||
19 | subsections (b) and (c) of this Section, it shall be unlawful | ||||||
20 | for an employer to refuse to hire or to discharge any | ||||||
21 | individual, or otherwise disadvantage any individual, with | ||||||
22 | respect to compensation, terms, conditions or privileges of | ||||||
23 | employment because the individual uses lawful products off the | ||||||
24 | premises of the employer during nonworking and non-call hours. |
| |||||||
| |||||||
1 | As used in this Section, "lawful products" means products that | ||||||
2 | are legal under state law. For purposes of this Section, an | ||||||
3 | employee is deemed on-call when the employee is scheduled with | ||||||
4 | at least 24 hours' notice by his or her employer to be on | ||||||
5 | standby or otherwise responsible for performing tasks related | ||||||
6 | to his or her employment either at the employer's premises or | ||||||
7 | other previously designated location by his or her employer or | ||||||
8 | supervisor to perform a work-related task. | ||||||
9 | (b) This Section does not apply to any employer that is a | ||||||
10 | non-profit organization that, as one of its primary purposes | ||||||
11 | or objectives, discourages the use of one or more lawful | ||||||
12 | products by the general public. This Section does not apply to | ||||||
13 | the use of those lawful products which impairs an employee's | ||||||
14 | ability to perform the employee's assigned duties. | ||||||
15 | (c) It is not a violation of this Section for an employer | ||||||
16 | to offer, impose or have in effect a health, disability or life | ||||||
17 | insurance policy that makes distinctions between employees for | ||||||
18 | the type of coverage or the price of coverage based upon the | ||||||
19 | employees' use of lawful products provided that: | ||||||
20 | (1) differential premium rates charged employees | ||||||
21 | reflect a differential cost to the employer; and | ||||||
22 | (2) employers provide employees with a statement | ||||||
23 | delineating the differential rates used by insurance | ||||||
24 | carriers. | ||||||
25 | (Source: P.A. 101-27, eff. 6-25-19.) |
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| |||||||
1 | Article 999. | ||||||
2 | Effective Date | ||||||
3 | Section 999-99. Effective date. This Act takes effect upon | ||||||
4 | becoming law.". |