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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 |
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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 |
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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 |
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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 |
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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. |
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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 |
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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 |
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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 |
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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 |
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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. |
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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. |
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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 |
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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 |
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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. |
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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 |
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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 |
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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. |
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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 |
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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 |
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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. |
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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 |
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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 |
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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. |
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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 |
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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 |
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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. |
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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. |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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: |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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. |
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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. |
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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, |
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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 |
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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 |
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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 |
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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 |
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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, |
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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 |
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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 |
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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, |
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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 |
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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 |
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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. |
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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. |
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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 |
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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 |
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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; |
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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; |
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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 |
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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. |
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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, |
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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 |
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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 |
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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 |
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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 |
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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 |
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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. |
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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, |
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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 |
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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. |
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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 |
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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 |
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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 |
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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. |
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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 |
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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; |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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. |
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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 |
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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 |
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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 |
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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. |
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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 |
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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 |
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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 |
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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. |
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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 |
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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. |
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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 |
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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. |
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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 |
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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. |
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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 |
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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 |
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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 |
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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; |
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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 |
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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 |
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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 |
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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. |
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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 |
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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 |
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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. |
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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 |
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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 |
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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. |
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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 |
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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. |
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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 |
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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 |
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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 |
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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, |
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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 |
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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 |
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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 |
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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; |
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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 |
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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 |
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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 |
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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; |
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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 |
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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 |
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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. |
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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 |
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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 |
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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. |
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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 |
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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 |
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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 |
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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 |
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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 |
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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. |
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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; |
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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 |
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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 |
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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. |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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. |
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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 |
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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 |
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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 |
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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 |
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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. |
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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 |
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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 |
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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, |
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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 |
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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 |
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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 |
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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 |
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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. |
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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 |
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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; |
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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. |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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. |
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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 |
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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 |
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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. |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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. |
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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 |
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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 |
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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. |