Sen. Kimberly A. Lightford

Filed: 5/9/2024

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 776

2    AMENDMENT NO. ______. Amend Senate Bill 776 by replacing
3everything after the enacting clause with the following:
 
4
"Article 1.
5
Short title; Definitions

 
6    Section 1-1. Short title. This Act may be cited as the Hemp
7Cannabinoid Products Act. References to "this Act" in Articles
81 through 40 of this Act mean Articles 1 through 40 of this
9Act.
 
10    Section 1-5. Definitions. In this Act:
11    "Accreditation body" means an impartial nonprofit
12organization that operates in conformance with the
13International Organization for Standardization
14(ISO)/International Electrotechnical Commission (IEC)
15standard 17011 and is a signatory to the International

 

 

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1Laboratory Accreditation Cooperation (ILAC) Mutual Recognition
2Arrangement (MRA) for Testing.
3    "Batch" means a specific quantity of a specific
4cannabinoid product that is manufactured during the same batch
5cycle.
6    "Batch cycle" means a specific quantity of a specific
7cannabinoid product that is manufactured using the same
8methods, equipment, and ingredients that is uniform and
9intended to meet specifications for identity, strength,
10purity, and composition and that is manufactured, packaged,
11and labeled according to a batch cycle production record
12executed and documented during the same cycle of manufacture.
13    "Broad spectrum" means a hemp extract or hemp extract
14derived product containing multiple hemp-derived cannabinoids,
15terpenes, and other naturally occurring compounds, processed
16with 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
20concentrate product cannabinoid product containing multiple
21hemp-derived cannabinoids, terpenes, and other naturally
22occurring compounds processed without intentional complete
23removal of any compound and without the addition of isolated
24cannabinoids.
25    "Hemp business establishment" means a hemp cultivator,
26hemp processor, hemp distributor, hemp infuser, or any other

 

 

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1business licensed by the Department of Agriculture under this
2Act.
3    "Hemp cannabinoid" means the chemical constituents of
4industrial hemp plants that are naturally occurring and
5derived from hemp plants with less than 0.3% delta-9 THC as
6tested on a dry weight basis.
7    "Hemp cannabinoid product" means a finished product for
8sale to consumer within the State that contains cannabinoids
9derived from industrial hemp, is intended for human
10consumption, and meets the packaging, labeling, and testing
11requirements of this Act.
12    "Hemp concentrate" means the extracts and resins of a hemp
13plant or hemp plant parts, including the extracts or resins of
14a hemp plant or hemp plant parts that are refined to increase
15or decrease the presence of targeted cannabinoids intended to
16cause an intoxicating effect or having a total milligram by
17volume over 0.5 milligrams per serving or 2 milligrams per
18packaging of delta-9-tetrahydrocannabinol or
19delta-8-tetrahydrocannabinol, including any other substance
20containing THC.
21    "Hemp concentrate derived products" means a product
22intended for human consumption that is derived from hemp
23concentrate and meets the labeling and potency requirements
24set forth in this Act.
25    "Hemp concentrate infuser" means the establishment that
26takes intermediate hemp products, hemp extract, or hemp

 

 

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1concentrate and infuses it with products intended for human
2consumption that meets the labeling and potency limits set
3forth in this Act.
4    "Hemp concentrate infuser agent" means a principal
5officer, employee, or agent of a hemp concentrate infuser who
6is 21 years of age or older.
7    "Hemp concentrate infuser agent identification card" means
8a document issued by the Department of Agriculture that
9identifies a person as a hemp concentrate infuser agent.
10    "Hemp concentrate retailer" means the establishment where
11hemp cannabinoid products, hemp extract derived products, or
12hemp concentrate derived products may be sold to consumers.
13    "Hemp concentrate retail agent" means a principal officer,
14employee, or agent of a hemp concentrate retailer who is 21
15years of age or older.
16    "Hemp concentrate retail agent identification card" means
17a document issued by the Department of Agriculture that
18identifies a person as a hemp concentrate retail agent.
19    "Hemp extract" means a substance or compound intended for
20ingestion or inhalations that is derived from or contains hemp
21and that does not contain other controlled substances or
22resins of a hemp plant or hemp plant parts that are refined to
23increase or decrease the presence of targeted cannabinoids.
24    "Hemp distributor" means a business that transports
25intermediate hemp product, hemp extract, hemp concentrate, or
26raw hemp to hemp infusers, processors, testing facilities, or

 

 

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1retail locations licensed by the Department of Financial and
2Professional Regulation or Department of Agriculture.
3    "Hemp distributor agent" means a principal officer,
4employee, or agent of a hemp distributor who is 21 years of age
5or older.
6    "Hemp distributor agent identification card" means a
7document issued by the Department of Agriculture that
8identifies a person as a hemp distributor agent.
9    "Hemp extract derived products" means a product intended
10for human consumptions that is derived from hemp extract and
11meets the labeling and potency limits set forth in this Act and
12does not contain more than 0.5 milligrams per serving or 2
13milligrams per package of delta-8 or delta-9 THC derived from
14any naturally occurring cannabinoids found in hemp.
15    "Hemp extract infuser" means the establishment that takes
16intermediate hemp products or hemp extract and infuses it with
17products intended for human consumption that meets the
18labeling and potency limits set forth in this Act for a hemp
19extract product.
20    "Hemp processor" means the establishment that removes the
21hemp extract from the hemp plant or refines or isomerizes the
22hemp extract into hemp concentrate for use in an intermediate
23hemp product.
24    "Hemp processor agent" means a principal officer,
25employee, or agent of a hemp processor who is 21 years of age
26or older.

 

 

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1    "Hemp processor agent identification card" means a
2document issued by the Department of Agriculture that
3identifies a person as a hemp processor agent.
4    "Hemp retailer" means the establishment where hemp
5cannabinoid products or hemp extract derived products may be
6sold to consumers.
7    "Imported hemp" means industrial hemp that incorporates
8raw hemp or intermediate hemp products not produced in
9Illinois.
10    "Intermediate hemp product" means a product that is made
11from hemp concentrate that can only be sold to hemp business
12establishments to be used as ingredients for other
13intermediate hemp products or hemp concentrate derived
14products for human consumption.
15    "Scope of accreditation" means a document issued by an
16accreditation body that attests to the laboratory's competence
17to carry out specific testing and analysis.
18    "Social Equity Applicant" has the meaning given to that
19term in Section 1-10 of the Cannabis Regulation and Tax Act.
20    "Testing laboratory" means an independent, third-party
21laboratory contracted by a licensee to test hemp cannabinoid
22products.
23    "Tetrahydrocannabinol" or "THC" means any naturally
24occurring or synthetic tetrahydrocannabinol, including its
25salts, isomers, and salts of isomers whenever the existence of
26such salts, isomers, and salts of isomers is possible within

 

 

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1the specific chemical designation and any preparation,
2mixture, or substance containing, or mixed or infused with,
3any detectable amount of tetrahydrocannabinol or
4tetrahydrocannabolic acid, including, but not limited to,
5delta-8-tetrahydrocannabinol, delta-9-tetrahydrocannabinol,
6delta-10-tetrahydrocannabinol, tetrahydrocannabolic acid,
7tetrahydrocannabipherol, or hexahydrocannabinol, however
8derived, or any other substance determined to have similar
9intoxicating effects on the mind or body by the Department.
10For the purposes of this definition, "isomer" means the
11optical, position, and geometric isomers.
 
12
Article 5.
13
General Provisions

 
14    Section 5-5. Prohibitions.
15    (a) No person shall process, manufacture, label,
16distribute for sale, sell, offer for sale, market, or
17advertise any hemp cannabinoid product within this State
18without obtaining a license under this Act.
19    (b) No licensee shall distribute for sale, offer for sale,
20market, or advertise intermediate hemp products or hemp
21concentrate to a person or entity that is not a licensed hemp
22business establishment.
23    (c) No hemp retailer shall distribute for sale, offer for
24sale, market, or advertise hemp concentrate products.

 

 

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1    (d) No licensee shall process, manufacture, distribute for
2sale, sell, offer for sale, market, or advertise any hemp
3cannabinoid product unless the product complies with the
4labeling, packaging, minimum testing, and other requirements
5of this Act and any administrative rules adopted by the
6Department.
7    (e) A product that has a THC concentration greater than
8the limits set forth for hemp cannabinoid products as defined
9in this Act shall be regulated as cannabis as defined in the
10Cannabis Regulation and Tax Act, whether or not the product is
11made with or derived from hemp, industrial hemp, or derived
12from natural or synthetic sources.
13    (f) No product intended for consumption by any means that
14is derived from hemp or marketed as hemp shall be distributed
15for sale, offered for sale, or sold to a consumer within this
16State 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
21provisions of this Act relating to the licensure and oversight
22of licensure of a hemp retailer unless otherwise provided in
23this Act.
24    (b) No person shall operate a hemp retailer organization

 

 

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1for the purpose of serving purchasers of hemp extract derived
2products without a license issued under this Article by the
3Department.
4    (c) Subject to this Act, the Department may exercise the
5following 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
20applicant seeking issuance of a license as a hemp retailer
21shall submit an application on forms provided by the
22Department. 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
16shall expire 2 years after the date issued.
17    (b) A license holder shall submit a renewal application as
18provided by the Department and pay the required renewal fee.
19The Department shall require an agent, employee, contracting,
20and subcontracting diversity report and an environmental
21impact report with its renewal application. No license may be
22renewed if it is currently under revocation or suspension for
23violation of this Act, the Cannabis Regulation and Tax Act, or
24the Industrial Hemp Act or any rules that adopted under this
25Act, the Cannabis Regulation and Tax Act, or the Industrial

 

 

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1Hemp Act or if the licensee, principal officer, board member,
2person having a financial or voting interest of 5% or greater
3in the licensee, or agent is delinquent in filing any required
4tax returns or paying any amounts owed to the State.
5    (c) For a hemp retailer license, $100 shall be paid as a
6renewal fee and shall be deposited into the Cannabis
7Regulation Fund.
8    (d) If a hemp retailer fails to renew its license before
9expiration, the hemp retailer shall cease operations until the
10license is renewed.
11    (e) A hemp retailer that continues to operate without
12renewal of its license is subject to penalty as provided in
13this Article or any rules that may be adopted pursuant to this
14Article.
15    (f) The Department shall not renew a license if the
16applicant is delinquent in filing required tax returns or
17paying amounts owed to the State.
 
18    Section 10-20 Denial of application.
19    (a) An application for a hemp retailer license must be
20denied 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
17Professional Regulation.
18    "Secretary" means the Secretary of Financial and
19Professional Regulation
20    (b) The Department shall issue licenses for hemp
21concentrate retailers through the process provided for in this
22Article no later than July 1, 2026.
23    (c) The Department may not issue more than 500 licenses
24for hemp concentrate retailers under this Article.

 

 

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1    (d) The Department shall make the application to be
2licensed as a hemp concentrate retailer available on January
37, 2026 and shall receive any initial applications under this
4subsection no later than March 15, 2026.
5    (e) Upon completion of the disparity and availability
6study published by the Illinois Cannabis Regulation Oversight
7Officer under subsection (e) of Section 5-45 of the Cannabis
8Regulation and Tax Act, the Department may modify or change
9the licensing application process to reduce or eliminate
10barriers and remedy discrimination identified in the study.
11    (f) Beginning January 7, 2027, the Department shall make
12the applications available and on every January 7 thereafter
13or, if that date falls on a weekend or holiday, the business
14day immediately succeeding the weekend or holiday and shall
15receive any application no later than March 15 or the
16succeeding business day thereafter.
 
17    Section 15-10. Authority.
18    (a) The Department shall administer and enforce the
19provisions of this Act relating to the licensure and oversight
20of hemp concentrate retailer license holders and hemp
21concentrate retail agents unless otherwise provided in this
22Act.
23    (b) No person shall operate a hemp concentrate retail
24organization for the purpose of serving purchasers of hemp
25concentrate derived products or hemp extract derived products

 

 

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1without a license issued under this Article by the Department.
2No person shall be an officer, director, manager, or employee
3of a hemp concentrate retail organization without having been
4issued a hemp concentrate retail agent card by the Department.
5    (c) Subject to this Act, the Department may exercise the
6following 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.
22An applicant seeking issuance of a hemp concentrate retailer
23shall submit an application on forms provided by the
24Department. 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
7license.
8    (a) An applicant for a hemp concentrate license must
9submit all required information, including the information
10required under Section 15-15, to the Department. Failure by an
11applicant to submit all required information may result in the
12application being disqualified.
13    (b) If the Department receives an application that fails
14to provide the required elements contained in this Section,
15the Department shall issue a deficiency notice to the
16applicant. The applicant shall have 10 calendar days from the
17date of the deficiency notice to resubmit the incomplete
18information. Applications that are still incomplete after this
19opportunity to cure will not be scored and will be
20disqualified.
21    (c) The Department shall, by rule, develop a system to
22score hemp concentrate license applications to
23administratively rank applications based on the clarity,
24organization, and quality of the applicant's responses to
25required information. Applicants shall be awarded points based

 

 

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1on 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

 

 

10300SB0776sam001- 23 -LRB103 03232 RJT 73288 a

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.

 

 

10300SB0776sam001- 24 -LRB103 03232 RJT 73288 a

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

 

 

10300SB0776sam001- 25 -LRB103 03232 RJT 73288 a

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
9each application and accompanying documentation to assess the
10applicant's veracity and fitness to operate a hemp concentrate
11retail organization.
12    (e) The Department may, in its discretion, refuse to issue
13an 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

 

 

10300SB0776sam001- 26 -LRB103 03232 RJT 73288 a

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
13officer, board member, or person having a financial or voting
14interest of 5% or greater in the licensee is delinquent in
15filing any required tax returns or paying any amounts owed to
16the State of Illinois.
17    (g) The Department shall verify an applicant's compliance
18with the requirements of this Article and rules before issuing
19a hemp concentrate retailer license.
20    (h) If an applicant is awarded a license, the information
21and plans provided in the application shall become a condition
22of the hemp concentrate retailer license except as otherwise
23provided by this Act or rule. Hemp concentrate retailer
24organizations shall have a duty to disclose any material
25changes to the application. The Department shall review all
26material changes disclosed by the hemp concentrate retailer

 

 

10300SB0776sam001- 27 -LRB103 03232 RJT 73288 a

1and may reevaluate its prior decision regarding the awarding
2of a license, including, but not limited to, suspending or
3permanently revoking a license. Failure to comply with the
4conditions or requirements in the application may subject the
5hemp concentrate retailer to discipline, up to and including
6suspension or permanent revocation of its authorization or
7license by the Department.
 
8    Section 15-25. Hemp concentrate retailer agent
9identification 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

 

 

10300SB0776sam001- 28 -LRB103 03232 RJT 73288 a

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
6agent's hemp concentrate retailer agent identification card
7visible at all times when in the hemp concentrate retailer.
8    (c) The hemp concentrate retailer agent identification
9card 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
18card shall be immediately returned to the hemp concentrate
19retailer upon termination of employment.
20    (e) The Department shall not issue a hemp concentrate
21retailer agent identification card if the applicant is
22delinquent in filing any required tax returns or paying any
23amounts owed to the State of Illinois.
24    (f) Any card lost by a hemp concentrate retailer agent
25shall be reported to the Illinois State Police and the
26Department immediately upon discovery of the loss.

 

 

10300SB0776sam001- 29 -LRB103 03232 RJT 73288 a

1    (g) An applicant shall be denied a hemp concentrate
2retailer agent identification card renewal if the applicant
3fails to complete the training provided for in this Section.
4    (h) Each owner, manager, employee, and agent of a hemp
5concentrate retailer shall successfully complete hemp
6concentrate retail sales training, including completing a
7responsible 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
24vendor program, the provider shall deliver proof of completion
25either through mail or electronic communication to the hemp
26concentrate retailer, which shall retain a copy of the

 

 

10300SB0776sam001- 31 -LRB103 03232 RJT 73288 a

1certificate.
2    (j) The license of a hemp concentrate retailer whose
3owners, managers, employees, or agents fail to comply with
4this Section may be suspended, permanently revoked, or may
5face other disciplinary action.
6    (k) The regulation of hemp concentrate retail sale and
7employee training is an exclusive function of the State, and
8regulation by a unit of local government, including a home
9rule unit, is prohibited. This subsection (k) is a denial and
10limitation 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
13training required by paragraph (2) of subsection (h) may apply
14for such approval between August 1 and August 15 of each
15odd-numbered year in a manner prescribed by the Department.
16    (m) Persons seeking Department approval to offer the
17training required by paragraph (2) of subsection (h) shall
18submit a nonrefundable application fee of $2,000 to be
19deposited into the Cannabis Regulation Fund or a fee as may be
20set by rule. Any changes made to the training module shall be
21approved by the Department.
22    (n) The Department shall not unreasonably deny approval of
23a training module that meets all the requirements of paragraph
24(2) of subsection (h). A denial of approval shall include a
25detailed description of the reasons for the denial.
26    (o) Any person approved to provide the training required

 

 

10300SB0776sam001- 32 -LRB103 03232 RJT 73288 a

1by subsection (h) shall submit an application for reapproval
2between August 1 and August 15 of each odd-numbered year and
3include a nonrefundable application fee of $2,000 to be
4deposited into the Cannabis Regulation Fund or a fee as may be
5set by rule.
6    (p) All persons applying to become or renewing their
7registrations to be agents, including agents-in-charge and
8principal officers, shall disclose any disciplinary action
9taken against them that may have occurred in Illinois, another
10state, or another country in relation to their employment at a
11cannabis business establishment, hemp business establishment,
12or at any cannabis cultivation center, processor, infuser,
13dispensary, hemp processor, hemp infuser, or other hemp
14business establishment.
15    (q) An agent applicant may begin employment at a hemp
16concentrate retailer while the agent applicant's hemp
17concentrate retailer agent identification card application is
18pending. Upon approval, the Department shall issue the agent's
19hemp concentrate retailer agent identification card to the
20agent. If denied, the hemp concentrate retailer and the agent
21applicant shall be notified and the agent applicant must cease
22all activity at the hemp concentrate retailer immediately.
 
23    Section 15-30. Renewal.
24    (a) A hemp concentrate retailer license shall expire on
25March 31 of even-numbered years.

 

 

10300SB0776sam001- 33 -LRB103 03232 RJT 73288 a

1    (b) A hemp concentrate retail agent identification card
2shall expire one year from the date it is issued.
3    (c) Any license holder and hemp concentrate retail agent
4shall submit a renewal application as provided by the
5Department and pay the required renewal fee. The Department
6shall require an agent, employee, contracting, and
7subcontracting diversity report and an environmental impact
8report with its renewal application. No license or agent
9identification card shall be renewed if it is currently under
10revocation or suspension for violation of this Article or any
11rules that may be adopted under this Article or the licensee,
12principal officer, board member, person having a financial or
13voting interest of 5% or greater in the licensee, or agent is
14delinquent in filing any required tax returns or paying any
15amounts 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
23license before expiration, the hemp concentrate retailer shall
24cease operations until the license is renewed.
25    (f) If a hemp concentrate retail agent fails to renew the
26agent's registration before its expiration, the agent shall

 

 

10300SB0776sam001- 34 -LRB103 03232 RJT 73288 a

1cease to perform duties authorized by this Article at a hemp
2concentrate retailer until the agent's registration is
3renewed.
4    (g) A hemp concentrate retailer that continues to operate
5without renewal of its license or a hemp concentrate retail
6agent that continues to perform duties authorized by this
7Article at a hemp concentrate retailer that has failed to
8renew its license is subject to penalty as provided in this
9Article or any rules that may be adopted pursuant to this
10Article.
11    (h) The Department shall not renew a license if the
12applicant is delinquent in filing required tax returns or
13paying amounts owed to the State of Illinois. The Department
14shall not renew a hemp concentrate retail agent identification
15card if the applicant is delinquent in filing any required tax
16returns 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
19shall file and maintain a table of organization, ownership,
20and control with the Department. The table of organization,
21ownership, and control shall contain the information required
22by this Section in sufficient detail to identify all owners,
23directors, and principal officers and the title of each
24principal officer or business entity that, through direct or
25indirect means, manages, owns, or controls the applicant or

 

 

10300SB0776sam001- 35 -LRB103 03232 RJT 73288 a

1licensee.
2    (b) The table of organization, ownership, and control
3shall 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
16publicly traded company, the following information shall be
17provided 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.

 

 

10300SB0776sam001- 36 -LRB103 03232 RJT 73288 a

1    (d) A hemp concentrate retailer with a parent company or
2companies, or partially owned or controlled by another entity,
3must disclose to the Department the relationship and all
4owners, board members, officers, or individuals with control
5or management of those entities. A hemp concentrate shall not
6shield its ownership or control from the Department.
7    (e) All principal officers must submit a complete online
8application with the Department within 14 days of the hemp
9concentrate retailer being licensed by the Department or
10within 14 days of Department notice of approval as a new
11principal officer.
12    (f) A principal officer may not allow the principal
13officer's registration to expire.
14    (g) A hemp concentrate retailer separating with a
15principal officer must do so under this Act. The principal
16officer must communicate the separation to the Department
17within 5 business days.
18    (h) A principal officer not in compliance with the
19requirements of this Act shall be removed from the principal
20officer's position with the hemp concentrate retailer or shall
21otherwise terminate the principal officer's affiliation.
22Failure to do so may subject the hemp concentrate retailer to
23discipline, suspension, or revocation of its license by the
24Department.
25    (i) It is the responsibility of the hemp concentrate
26retailer and its principal officers to promptly notify the

 

 

10300SB0776sam001- 37 -LRB103 03232 RJT 73288 a

1Department of any change of the principal place of business
2address, hours of operation, change in ownership or control,
3or a change of the hemp concentrate retailer primary or
4secondary contact information. Any changes must be made to the
5Department in writing.
 
6    Section 15-40. Financial responsibility. Evidence of
7financial responsibility is a requirement for the issuance,
8maintenance, or reactivation of a license under this Article.
9Evidence of financial responsibility shall be used to
10guarantee that the hemp concentrate retailer timely and
11successfully completes construction, operates in a manner that
12provides an uninterrupted supply of hemp concentrate derived
13products, faithfully pays registration renewal fees, keeps
14accurate books and records, makes regularly required reports,
15complies with State tax requirements, and conducts the hemp
16concentrate retailer in conformity with this Act and rules.
17Evidence of financial responsibility shall be provided by one
18of 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

 

 

10300SB0776sam001- 38 -LRB103 03232 RJT 73288 a

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.

 

 

10300SB0776sam001- 39 -LRB103 03232 RJT 73288 a

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
16concentrate retailer identified on the application and for the
17specific location proposed. The license is valid only as
18designated on the license and for the location for which it is
19issued.
20    (b) A hemp concentrate retailer may only add principal
21officers approved by the Department.
22    (c) A hemp concentrate retailer shall provide written
23notice of the removal of a principal officer within 5 business
24days after removal. The notice shall include the written
25agreement of the principal officer being removed, unless

 

 

10300SB0776sam001- 40 -LRB103 03232 RJT 73288 a

1otherwise approved by the Department, and allocation of
2ownership shares after removal in an updated ownership chart.
3    (d) A hemp concentrate retailer shall provide a written
4request to the Department for the addition of principal
5officers. A hemp concentrate retailer shall submit proposed
6principal officer applications on forms approved by the
7Department.
8    (e) Any proposed new principal officer shall be subject to
9the requirements of this Act and any rules that may be adopted
10pursuant to this Act.
11    (f) The Department may prohibit the addition of a
12principal officer to a hemp concentrate retailer for failure
13to comply with this Act and any rules that may be adopted
14pursuant 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
17without prior Department approval. Such approval may be
18withheld if the person to whom the license is being
19transferred does not commit to the same or a similar community
20engagement plan provided as part of the hemp concentrate
21retailer's application and such transferee's license shall be
22conditional upon that commitment.
23    (i) With the addition or removal of principal officers,
24the Department shall review the ownership structure to
25determine whether the change in ownership has had the effect
26of a transfer of the license. The hemp concentrate retailer

 

 

10300SB0776sam001- 41 -LRB103 03232 RJT 73288 a

1shall supply all ownership documents requested by the
2Department.
3    (j) A hemp concentrate retailer may apply to the
4Department to approve a sale of the hemp concentrate retailer.
5A request to sell the hemp concentrate retailer must be on
6application forms provided by the Department and must comply
7with 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.

 

 

10300SB0776sam001- 42 -LRB103 03232 RJT 73288 a

1    (k) The hemp concentrate retailer shall provide the
2Department with the personal information for all new hemp
3concentrate retail agents as required in this Article and all
4new hemp concentrate retail agents shall be subject to the
5requirements of this Article. A hemp concentrate retail agent
6must obtain a hemp concentrate retail agent identification
7card from the Department before beginning work at a hemp
8concentrate retailer.
9    (l) Before remodeling, expansion, reduction, or other
10physical, noncosmetic alteration of a hemp concentrate
11retailer physical space, the hemp concentrate retailer must
12notify the Department and confirm the alterations are in
13compliance with this Act and any rules that may be adopted
14pursuant to this Act.
 
15    Section 15-50. Administration.
16    (a) A hemp concentrate retailer shall establish, maintain,
17and comply with written policies and procedures as submitted
18in the business, financial, and operating plan as required in
19this Article or by rules established by the Department, and
20approved by the Department, for the security, storage,
21inventory, and distribution of hemp concentrate derived
22products. The policies and procedures shall include methods
23for identifying, recording, and reporting diversion, theft, or
24loss, and for correcting errors and inaccuracies in
25inventories. At a minimum, hemp concentrate retailers shall

 

 

10300SB0776sam001- 43 -LRB103 03232 RJT 73288 a

1ensure the written policies and procedures provide for the
2following:
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

 

 

10300SB0776sam001- 44 -LRB103 03232 RJT 73288 a

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.

 

 

10300SB0776sam001- 45 -LRB103 03232 RJT 73288 a

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
25the policies and procedures on the hemp concentrate retailer
26premises and provide copies to the Department upon request.

 

 

10300SB0776sam001- 46 -LRB103 03232 RJT 73288 a

1The hemp concentrate retailer shall review the hemp
2concentrate retailer policies and procedures at least once
3every 12 months from the issue date of the license and update
4as needed due to changes in industry standards or as requested
5by the Department.
6    (c) A hemp concentrate retailer shall ensure that each
7principal officer and each hemp concentrate retail agent has a
8current hemp concentrate retailer agent identification card in
9the agent's immediate possession when the agent is at the hemp
10concentrate retailer.
11    (d) A hemp concentrate retailer shall provide prompt
12written notice to the Department, including the date of the
13event, when a hemp concentrate retail agent no longer is
14employed by the hemp concentrate retailer.
15    (e) A hemp concentrate retailer and hemp concentrate
16retailer agent shall promptly document and report any loss or
17theft of hemp concentrate derived product from the hemp
18concentrate retailer to the Illinois State Police and the
19Department.
20    (f) A hemp concentrate retailer shall post the following
21information and signage in a conspicuous location in an area
22of 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

 

 

10300SB0776sam001- 47 -LRB103 03232 RJT 73288 a

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)
17shall be no smaller than 24 inches tall by 36 inches wide, with
18typed letters no smaller than 2 inches. The signage shall be
19clearly visible and readable by customers. The signage shall
20be placed in the area where hemp concentrate derived products
21are sold and may be translated into additional languages as
22needed. The Department may require a hemp concentrate retailer
23to display the required signage in a different language, other
24than English, if the Secretary deems it necessary.
25    (g) A hemp concentrate retailer shall prominently post
26notices inside the hemp concentrate retailer that state

 

 

10300SB0776sam001- 48 -LRB103 03232 RJT 73288 a

1activities that are strictly prohibited and punishable by law,
2including, 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
8accordance with the representations made in its application
9and license materials. It shall be in compliance with this Act
10and rules.
11    (b) A hemp concentrate retailer must include the legal
12name of the hemp concentrate retailer on the packaging of any
13hemp concentrate derived product it sells.
14    (c) Hemp concentrate derived product must be obtained from
15an Illinois-registered adult use craft grower that meets the
16requirements of a Social Equity Applicant, adult use cannabis
17infuser that meets the requirements of a Social Equity
18Applicant, a hemp concentrate infuser, or hemp processor.
19    (d) A hemp concentrate retailer may not sell any product
20containing alcohol except tinctures that are limited to
21containers no larger than 100 milliliters.
22    (e) A hemp concentrate retailer shall inspect and count
23product received from a State registered adult use craft
24grower that meets the requirements of a Social Equity
25Applicant, an adult use cannabis infuser that meets the

 

 

10300SB0776sam001- 49 -LRB103 03232 RJT 73288 a

1requirements of a Social Equity Applicant, an adult use
2cannabis transporter that meets the requirements of a Social
3Equity Applicant, a hemp concentrate infuser, hemp processor,
4or hemp distributor before selling it.
5    (f) A hemp concentrate retailer may only accept hemp
6concentrate derived product deliveries into a restricted
7access area. Deliveries may not be accepted through the public
8or limited access areas unless otherwise approved by the
9Department.
10    (g) A hemp concentrate retailer shall maintain compliance
11with State and local building, fire, and zoning requirements
12or regulations.
13    (h) A hemp concentrate retailer shall submit a list to the
14Department of the names of any service professional that will
15work at the hemp concentrate retailer. The list shall include
16a description of the type of business or service provided.
17Changes to the service professional list shall be promptly
18provided. No service professional shall work in the hemp
19concentrate retailer until the name is provided to the
20Department on the service professional list.
21    (i) A hemp concentrate retailer license allows the hemp
22concentrate retailer to be operated only at a single location.
23    (j) A hemp concentrate retailer may operate between 6 a.m.
24and 10 p.m. local time.
25    (k) A hemp concentrate retailer must keep all lighting
26outside and inside the hemp concentrate retailer in good

 

 

10300SB0776sam001- 50 -LRB103 03232 RJT 73288 a

1working order and at a wattage sufficient for security
2cameras.
3    (l) A hemp concentrate retailer must keep all air
4treatment systems that will be installed to reduce odors in
5good working order.
6    (m) A hemp concentrate retailer must contract with a
7private security contractor that is licensed under Section
810-5 of the Private Detective, Private Alarm, Private
9Security, Fingerprint Vendor, and Locksmith Act of 2004 to
10provide on-site security at all hours of the hemp concentrate
11retailer.
12    (n) A hemp concentrate retailer shall ensure that any
13building or equipment used by a hemp concentrate retailer for
14the storage or sale of hemp concentrate derived products is
15maintained in a clean and sanitary condition.
16    (o) The hemp concentrate retailer shall be free from
17infestation 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

 

 

10300SB0776sam001- 51 -LRB103 03232 RJT 73288 a

1    hemp concentrate infuser, hemp processor, or hemp
2    distributor;
3        (3) enter into an exclusive agreement with any
4    Illinois-registered adult use craft grower that meets the
5    requirements of a Social Equity Applicant, an adult use
6    cannabis infuser that meets the requirements of a Social
7    Equity Applicant, a hemp concentrate infuser, or hemp
8    processor. Hemp concentrate retailer shall provide
9    consumers an assortment of products from various hemp
10    business establishment licensees and hemp business
11    establishment licensees such that the inventory available
12    for sale at any hemp concentrate retailer from any single
13    Illinois-registered adult use craft grower that meets the
14    requirements of a Social Equity Applicant, an adult use
15    cannabis infuser that meets the requirements of a Social
16    Equity Applicant, a hemp concentrate infuser, or hemp
17    processor entity shall not be more than 40% of the total
18    inventory available for sale. For the purpose of this
19    subsection, an Illinois-registered adult use craft grower
20    that meets the requirements of a Social Equity Applicant,
21    an adult use cannabis infuser that meets the requirements
22    of a Social Equity Applicant, a hemp concentrate infuser,
23    or hemp processor shall be considered part of the same
24    entity if the licensees share at least one principal
25    officer. The Department may request that a hemp
26    concentrate retailer diversify its products as needed or

 

 

10300SB0776sam001- 52 -LRB103 03232 RJT 73288 a

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

 

 

10300SB0776sam001- 53 -LRB103 03232 RJT 73288 a

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

 

 

10300SB0776sam001- 54 -LRB103 03232 RJT 73288 a

1    set by Department rules.
2    (q) It is unlawful for any person having a hemp
3concentrate retailer license or any officer, associate,
4member, representative, or agent of such licensee to accept,
5receive, or borrow money or anything else of value or accept or
6receive credit, other than merchandising credit in the
7ordinary course of business for a period not to exceed 30 days,
8directly or indirectly from any Illinois-registered adult use
9craft grower that meets the requirements of a Social Equity
10Applicant, an adult use cannabis infuser that meets the
11requirements of a Social Equity Applicant, an adult use
12cannabis transporter that meets the requirements of a Social
13Equity Applicant, a hemp concentrate infuser, hemp processor,
14or hemp distributor in exchange for preferential placement on
15the shelves, display cases, or website of a hemp concentrate
16retailer or a Qualifying Applicant or Social Equity Justice
17Involved Applicant dispensary under the Cannabis Regulation
18and Tax Act. This includes anything received or borrowed or
19from any stockholders, officers, agents, or persons connected
20with an Illinois-registered adult use craft grower that meets
21the requirements of a Social Equity Applicant, an adult use
22cannabis infuser that meets the requirements of a Social
23Equity Applicant, an adult use cannabis transporter that meets
24the requirements of a Social Equity Applicant, a hemp
25concentrate infuser, hemp processor, or hemp distributor.
26    (r) It is unlawful for any person having a hemp

 

 

10300SB0776sam001- 55 -LRB103 03232 RJT 73288 a

1concentrate retailer license to enter into any contract with
2any person licensed to infuse, process, or transport hemp
3concentrate derived products whereby such hemp concentrate
4retailer agrees not to sell any hemp concentrate derived
5product infused, processed, transported, manufactured, or
6distributed by any other Illinois-registered adult use craft
7grower that meets the requirements of a Social Equity
8Applicant, an adult use cannabis infuser that meets the
9requirements of a Social Equity Applicant, an adult use
10cannabis transporter that meets the requirements of a Social
11Equity Applicant, a hemp concentrate infuser, hemp processor,
12or hemp distributor and any provision in any contract
13violative of this Section shall render the whole of such
14contract void and no action shall be brought thereon in any
15court.
 
16    Section 15-60. Inventory control system.
17    (a) A hemp concentrate retailer agent-in-charge shall have
18primary oversight of the hemp concentrate retailer hemp
19concentrate derived product inventory verification system, and
20its point-of-sale system. The inventory point-of-sale system
21shall be real-time, web-based, and accessible by the
22Department at any time. The point-of-sale system shall track,
23at a minimum the date of sale, amount, price, and currency.
24    (b) A hemp concentrate retailer shall establish an account
25with the State's verification system that documents the

 

 

10300SB0776sam001- 56 -LRB103 03232 RJT 73288 a

1following:
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

 

 

10300SB0776sam001- 57 -LRB103 03232 RJT 73288 a

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
18concentrate retailer shall confirm the product's name, hemp
19concentrate, weight, and identification number on the manifest
20matches the information on the hemp concentrate derived
21product label and package. The product name listed and the
22weight listed in the State's verification system shall match
23the product packaging.
24    (d) The agent-in-charge shall conduct daily inventory
25reconciliation documenting and balancing hemp concentrate
26derived product inventory by confirming the State's

 

 

10300SB0776sam001- 58 -LRB103 03232 RJT 73288 a

1verification system matches the hemp concentrate retailer's
2point-of-sale system and the amount of physical product at the
3hemp 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

 

 

10300SB0776sam001- 59 -LRB103 03232 RJT 73288 a

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:

 

 

10300SB0776sam001- 60 -LRB103 03232 RJT 73288 a

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
11return policy for hemp concentrate derived product, the hemp
12concentrate retailer shall seek prior approval from the
13Department.
 
14    Section 15-65. Storage requirements.
15    (a) A hemp concentrate retailer must store inventory on
16its premises. All inventory stored on the premises must be
17secured in a restricted access area and tracked consistently
18with the inventory tracking rules.
19    (b) A hemp concentrate retailer shall be of suitable size
20and construction to facilitate cleaning, maintenance, and
21proper operations.
22    (c) A hemp concentrate retailer shall maintain adequate
23lighting, ventilation, temperature, humidity control, and
24equipment.
25    (d) Containers storing hemp concentrate derived products

 

 

10300SB0776sam001- 61 -LRB103 03232 RJT 73288 a

1that have been tampered with, damaged, or opened shall be
2labeled with the date opened and quarantined from other hemp
3concentrate derived products in the vault until they are
4disposed.
5    (e) Hemp concentrate derived products that was tampered
6with, expired, or damaged shall not be stored at the premises
7for more than 7 calendar days.
8    (f) Hemp concentrate derived product samples shall be in a
9sealed container. Samples shall be maintained in the
10restricted access area.
11    (g) The hemp concentrate retailer storage areas shall be
12maintained in accordance with the security requirements in
13this Act and rules.
14    (h) Hemp concentrate derived products must be stored at
15appropriate temperatures and under appropriate conditions to
16help ensure that its packaging, strength, quality, and purity
17are not adversely affected.
 
18    Section 15-70. Dispensing hemp concentrate derived
19products.
20    (a) Before a hemp concentrate retail agent dispenses hemp
21concentrate derived products to a purchaser, the agent shall
22do 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

 

 

10300SB0776sam001- 62 -LRB103 03232 RJT 73288 a

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

 

 

10300SB0776sam001- 63 -LRB103 03232 RJT 73288 a

1concentrate derived product to any person unless the person
2produces a valid identification showing that the person is 21
3years of age or older.
4    (c) For the purposes of this Section, valid identification
5must:
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
10concentrate derived products.
11    (a) Hemp concentrate derived products must be destroyed by
12rendering them unusable using methods approved by the
13Department that comply with this Act and rules.
14    (b) Hemp concentrate derived products waste rendered
15unusable must be promptly disposed according to this Act and
16rules. Disposal of the hemp concentrate derived products waste
17rendered unusable may be delivered to a permitted solid waste
18facility for final disposition. Acceptable permitted solid
19waste facilities include, but are not limited to, the
20following:
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,
3recorded, and entered into the inventory system before
4rendering it unusable. All waste and unusable hemp concentrate
5derived products shall be recorded and entered into the
6inventory system before rendering it unusable. Verification of
7this event shall be performed by an agent-in-charge and
8conducted in an area with video surveillance.
9    (d) Electronic documentation of destruction and disposal
10shall 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
13minimum, one agent-in-charge for each licensed hemp
14concentrate retailer. The designated agent-in-charge must hold
15a hemp concentrate retail agent identification card.
16Maintaining an agent-in-charge is a continuing requirement for
17the license, except as provided in subsection (f).
18    (b) The agent-in-charge shall be a principal officer or a
19full-time agent of the hemp concentrate retailer and shall
20manage the hemp concentrate retailer. Managing the hemp
21concentrate retailer includes, but is not limited to,
22responsibility for opening and closing the hemp concentrate
23retailer, delivery acceptance, oversight of sales and hemp
24concentrate retail agents, recordkeeping, inventory, hemp
25concentrate retail agent training, and compliance with this

 

 

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1Act and rules. Participation in affairs also includes the
2responsibility for maintaining all files subject to audit or
3inspection by the Department at the hemp concentrate retailer.
4    (c) The agent-in-charge is responsible for promptly
5notifying the Department of any change of information required
6to be reported to the Department.
7    (d) In determining whether an agent-in-charge manages the
8hemp concentrate retailer, the Department may consider the
9responsibilities identified in this Section, the number of
10hemp concentrate retail agents under the supervision of the
11agent-in-charge, and the employment relationship between the
12agent-in-charge and the hemp concentrate retailer, including
13the existence of a contract for employment and any other
14relevant fact or circumstance.
15    (e) The agent-in-charge is responsible for notifying the
16Department of a change in the employment status of all hemp
17concentrate retail agents within 5 business days after the
18change, including notice to the Department if the termination
19of an agent was for diversion of product or theft of currency.
20    (f) If an agent-in-charge is separated due to death,
21incapacity, termination, or any other reason and if the hemp
22concentrate retailer does not have an active agent-in-charge,
23the hemp concentrate retailer shall immediately contact the
24Department and request a temporary certificate of authority
25allowing the continuing operation. The request shall include
26the name of an interim agent-in-charge until a replacement is

 

 

10300SB0776sam001- 66 -LRB103 03232 RJT 73288 a

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

 

 

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1concentrate retailer shall promptly return the identification
2card to the Department.
3    (i) The Department may deny an application or renewal or
4discipline or revoke an agent-in-charge's hemp concentrate
5retail agent identification card for any of the following
6reasons:
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
18measures to deter and prevent entry into and theft of hemp
19concentrate derived products or currency.
20    (b) A hemp concentrate retailer shall submit any changes
21to the floor plan or security plan to the Department for
22preapproval. All hemp concentrate derived product shall be
23maintained and stored in a restricted access area during
24construction.
25    (c) The hemp concentrate retailer shall implement security

 

 

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1measures to protect the premises, purchasers, and hemp
2concentrate retail agents including, but not limited to, the
3following:
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

 

 

10300SB0776sam001- 71 -LRB103 03232 RJT 73288 a

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
6security provisions that it determines are an adequate
7substitute for a security requirement specified in this
8Article. Any additional protections may be considered by the
9Department in evaluating overall security measures.
10    (e) A hemp concentrate retailer shall provide additional
11security as needed and in a manner appropriate for the
12community where it operates.
13    (f) Restricted access areas must meet the following
14criteria:
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
4security plan and security system to prevent and detect
5diversion, theft, or loss of hemp concentrate derived
6products, currency, or unauthorized intrusion using commercial
7grade equipment installed by a State-licensed private alarm
8contractor or private alarm contractor agency that shall, at a
9minimum, 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
10maintained in good working order and in a secure location so as
11to prevent theft, loss, destruction, or alterations.
12    Access to surveillance monitoring recording equipment
13shall be limited to persons who are essential to surveillance
14operations, law enforcement authorities acting within their
15jurisdiction, security system service personnel, and the
16Department. A current list of authorized hemp concentrate
17retail agents and service personnel that have access to the
18surveillance equipment must be available to the Department
19upon request.
20    Any security equipment shall be inspected and tested at
21regular intervals, not to exceed one month from the previous
22inspection, and tested to ensure the systems remain
23functional.
24    The security system shall provide protection against theft
25and diversion that is facilitated or hidden by tampering with
26computers or electronic records.

 

 

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1    The hemp concentrate retailer shall ensure all access
2doors are not solely controlled by an electronic access panel
3to ensure that locks are not released during a power outage.
4    (h) To monitor the hemp concentrate retailer, the hemp
5concentrate retailer shall incorporate continuous electronic
6video 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,

 

 

10300SB0776sam001- 75 -LRB103 03232 RJT 73288 a

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

 

 

10300SB0776sam001- 76 -LRB103 03232 RJT 73288 a

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
25the minimum requirements for operating a hemp concentrate
26retailer. The Department may establish additional requirements

 

 

10300SB0776sam001- 77 -LRB103 03232 RJT 73288 a

1by rule.
 
2    Section 15-90. Recordkeeping.
3    (a) Hemp concentrate retailer records must be maintained
4electronically for 3 years and be available for inspection by
5the Department upon request. Required written records include,
6but 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
23insolvency, revocation, bankruptcy, or for any other reason,
24all records must be preserved at the expense of the hemp
25concentrate retailer for at least 3 years in a form and

 

 

10300SB0776sam001- 78 -LRB103 03232 RJT 73288 a

1location in this State in a format and location that is
2acceptable to the Department. The hemp concentrate retailer
3shall keep the records longer if requested by the Department.
4The hemp concentrate retailer shall notify the Department of
5the location where the hemp concentrate retailer records are
6stored or transferred.
 
7    Section 15-95. Closure of a dispensary.
8    (a) If a hemp concentrate retailer decides not to renew
9its license or decides to close its business, the hemp
10concentrate retailer shall promptly notify the Department not
11less than 3 months before the effective date of the closing
12date or as otherwise authorized by the Department.
13    (b) The hemp concentrate retailer shall work with the
14Department to develop a closure plan that addresses, at a
15minimum, the transfer of business records, transfer of hemp
16concentrate derived products, and anything else the Department
17finds necessary.
 
18    Section 15-100. Investigations.
19    (a) A hemp concentrate retailer is subject to random and
20unannounced hemp concentrate retailer inspections and hemp
21concentrate derived products testing by the Department, the
22Illinois State Police, local law enforcement, or as provided
23by rule.
24    (b) The Department and its authorized representatives may

 

 

10300SB0776sam001- 79 -LRB103 03232 RJT 73288 a

1(i) enter any place, including a vehicle, in which hemp
2concentrate derived product is held, stored, sold, produced,
3delivered, transported, manufactured, or disposed of, (ii)
4inspect, in a reasonable manner, the place and all pertinent
5equipment, containers, and labeling and other pertinent
6things, including records, files, financial data, sales data,
7shipping data, pricing data, personnel data, research, papers,
8processes, controls, facilities, and (iii) inventory any stock
9of hemp concentrate derived product and obtain samples of any
10hemp concentrate derived product, any labels or containers for
11hemp concentrate derived product, or paraphernalia.
12    (c) The Department may conduct an investigation of an
13applicant, application, hemp concentrate retailer, principal
14officer, hemp concentrate retail agent, third party vendor, or
15any other party associated with a hemp concentrate retailer
16for an alleged violation of this Act or rules or to determine
17qualifications to be granted a registration by the Department.
18    (d) The Department may require an applicant or holder of
19any license issued pursuant to this Article to produce
20documents, records, or any other material pertinent to the
21investigation of an application or alleged violations of this
22Act or rules. Failure to provide the required material may be
23grounds for denial or discipline.
24    (e) Each person charged with preparation, obtaining, or
25keeping records, logs, reports, or other documents in
26connection with this Act and rules and every person in charge,

 

 

10300SB0776sam001- 80 -LRB103 03232 RJT 73288 a

1or having custody, of those documents shall, upon request by
2the Department, make the documents immediately available for
3inspection and copying by the Department, the Department's
4authorized representative, or others authorized by law to
5review the documents.
 
6    Section 15-105. Citations. The Department may issue
7nondisciplinary citations for minor violations. Any such
8citation issued by the Department may be accompanied by a fee.
9The fee may not exceed $20,000 per violation. The citation
10shall be issued to the licensee and shall contain the
11licensee's name and address, the licensee's license number, a
12brief factual statement, the Sections of the law allegedly
13violated, and the fee, if any, imposed. The citation must
14clearly state that the licensee may choose, in lieu of
15accepting the citation, to request a hearing. If the licensee
16does not dispute the matter in the citation with the
17Department within 30 days after the citation is served, then
18the citation shall become final and not subject to appeal. The
19penalty shall be a fee or other conditions as established by
20rule.
 
21    Section 15-110. Grounds for discipline.
22    (a) The Department may deny issuance, refuse to renew or
23restore, or may reprimand, place on probation, suspend,
24revoke, or take other disciplinary or nondisciplinary action

 

 

10300SB0776sam001- 81 -LRB103 03232 RJT 73288 a

1against any license or hemp concentrate retailer agent
2identification card or may impose a fine for any of the
3following:
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,

 

 

10300SB0776sam001- 83 -LRB103 03232 RJT 73288 a

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

 

 

10300SB0776sam001- 84 -LRB103 03232 RJT 73288 a

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
15paid within 60 days after the effective date of the order
16imposing the fine or as otherwise specified in the order.
17    (c) A circuit court order establishing that an
18agent-in-charge or principal officer holding a hemp
19concentrate retailer agent identification card is subject to
20involuntary admission on an inpatient basis or outpatient
21basis, as those terms are defined in Sections 1-119 and
221-119.1 of the Mental Health and Developmental Disabilities
23Code, 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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1concentrate retailer license or an agent registration without
2a hearing if the Secretary finds that public safety or welfare
3requires emergency action. The Secretary shall cause the
4temporary suspension by issuing a suspension notice in
5connection with the institution of proceedings for a hearing.
6    (b) If the Secretary temporarily suspends a license or
7agent registration without a hearing, the licensee or agent is
8entitled to a hearing within 45 days after the suspension
9notice has been issued. The hearing shall be limited to the
10issues cited in the suspension notice, unless all parties
11agree otherwise.
12    (c) If the Department does not hold a hearing with 45 days
13after the date the suspension notice was issued, then the
14suspended license or registration shall be automatically
15reinstated and the suspension vacated.
16    (d) The suspended licensee or agent may seek a continuance
17of the hearing date, during which time the suspension remains
18in effect and the license or registration shall not be
19automatically reinstated.
20    (e) Subsequently discovered causes of action by the
21Department after the issuance of the suspension notice may be
22filed as a separate notice of violation. The Department is not
23precluded from filing a separate action against the suspended
24licensee or agent.
 
25    Section 15-120. Notice; hearing.

 

 

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1    (a) The Department shall, before disciplining an applicant
2or licensee, at least 30 days before the date set for the
3hearing: (i) notify the accused in writing of the charges made
4and the time and place for the hearing on the charges; (ii)
5direct the applicant or licensee to file a written answer to
6the charges under oath within 20 days after service; and (iii)
7inform the applicant or licensee that failure to answer will
8result in a default being entered against the applicant or
9licensee.
10    (b) At the time and place fixed in the notice, the hearing
11officer appointed by the Department shall proceed to hear the
12charges, and the parties or their counsel shall be accorded
13ample opportunity to present any pertinent statements,
14testimony, evidence, and arguments. The hearing officer may
15continue the hearing from time to time. In case the person,
16after receiving the notice, fails to file an answer, the
17person's license may, in the discretion of the Secretary,
18having first received the recommendation of the hearing
19officer, be suspended, revoked, or placed on probationary
20status or be subject to whatever disciplinary action the
21Secretary considers proper, including a fine, without hearing,
22if that act or acts charged constitute sufficient grounds for
23that action under this Act.
24    (c) The written notice and any notice in the subsequent
25proceeding may be served by regular mail or email to the
26licensee's or applicant's address of record.
 

 

 

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1    Section 15-125. Subpoenas; oaths. The Department may
2subpoena and bring before it any person, take testimony either
3orally or by deposition, or both, with the same fees and
4mileage and in the same manner as prescribed by law in judicial
5proceedings in civil cases in courts in this State. The
6Secretary or the hearing officer shall each have the power to
7administer oaths to witnesses at any hearings that the
8Department is authorized to conduct.
 
9    Section 15-130. Hearing; motion for rehearing.
10    (a) The hearing officer shall hear evidence in support of
11the formal charges and evidence produced by the licensee. At
12the conclusion of the hearing, the hearing officer shall
13present to the Secretary a written report of the hearing
14officer's findings of fact, conclusions of law, and
15recommendations.
16    (b) At the conclusion of the hearing, a copy of the hearing
17officer's report shall be served upon the applicant or
18licensee by the Department, either personally or as provided
19in this Act for the service of a notice of hearing. Within 20
20calendar days after service, the applicant or licensee may
21present to the Department a motion in writing for rehearing,
22which shall specify the particular grounds for rehearing. The
23Department may respond to the motion for rehearing within 20
24calendar days after service on the Department. If no motion

 

 

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1for rehearing is filed, then, upon the expiration of the time
2specified for filing such motion or upon denial of a motion for
3rehearing, the Secretary may enter an order in accordance with
4the recommendation of the hearing officer. If the applicant or
5licensee orders from the reporting service and pays for a
6transcript of the record within the time for filing a motion
7for rehearing, the 20-day period within which a motion may be
8filed shall commence upon the delivery of the transcript to
9the applicant or licensee.
10    (c) If the Secretary disagrees in any regard with the
11report of the hearing officer, the Secretary may issue an
12order contrary to the report.
13    (d) Whenever the Secretary is not satisfied that
14substantial justice has been done, the Secretary may order a
15rehearing by the same or another hearing officer.
16    (e) At any point in any investigation or disciplinary
17proceeding under in this Article, both parties may agree to a
18negotiated consent order. The consent order shall be final
19upon signature of the Secretary.
 
20    Section 15-135. Review under the Administrative Review
21Law.
22    (a) All final administrative decisions of the Department
23are subject to judicial review under the provisions of the
24Administrative Review Law. As used in this subsection,
25"administrative decision" has the meaning given to that term

 

 

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1in Section 3-101 of the Code of Civil Procedure.
2    (b) Proceedings for judicial review shall be commenced in
3the circuit court of the county in which the party applying for
4review resides, but, if the party is not a resident of
5Illinois, the venue shall be in Sangamon County.
6    (c) The Department shall not be required to certify any
7record to the court, file any answer in court, or otherwise
8appear in any court in a judicial review proceeding unless and
9until the Department has received from the plaintiff payment
10of the costs of furnishing and certifying the record, which
11costs shall be determined by the Department. Failure on the
12part of the plaintiff to file a receipt in court shall be
13grounds for dismissal of the action.
 
14
Article 20.
15
Hemp Extract Infusers

 
16    Section 20-5. Hemp Extract Infusers application. When
17applying for a license, the applicant shall electronically
18submit the following in such form as the Department may
19direct:
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
920-5 shall expire 2 years after the date issued.
10    (b) A license holder shall submit a renewal application as
11provided by the Department and pay the required renewal fee.
12The Department shall require an agent, employee, contracting,
13and subcontracting diversity report and an environmental
14impact report with its renewal application. No license may be
15renewed if it is currently under revocation or suspension for
16violation of this Act, the Cannabis Regulation and Tax Act, or
17the Industrial Hemp Act or any rules that adopted under this
18Act, the Cannabis Regulation and Tax Act, or the Industrial
19Hemp Act or if the licensee, principal officer, board member,
20person having a financial or voting interest of 5% or greater
21in the licensee, or agent is delinquent in filing any required
22tax returns or paying any amounts owed to the State.
23    (c) For a hemp extract infuser license, $100 shall be paid
24as a renewal fee and shall be deposited into the Cannabis
25Regulation Fund.

 

 

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1    (d) If a hemp extract infuser fails to renew its license
2before expiration, the hemp extract infuser shall cease
3operations until the license is renewed.
4    (e) A hemp extract infuser that continues to operate
5without renewal of its license is subject to penalty as
6provided in this Article or any rules that may be adopted
7pursuant to this Article.
8    (f) The Department shall not renew a license if the
9applicant is delinquent in filing required tax returns or
10paying amounts owed to the State.
 
11    Section 20-15 Denial of application.
12    (a) An application for a hemp extract infuser license must
13be 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
8applying for a license, the applicant shall electronically
9submit the following in such form as the Department may
10direct:
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
7score hemp concentrate infuser applications to
8administratively rank applications based on the clarity,
9organization, and quality of the applicant's responses to
10required information. Applicants shall be awarded points based
11on 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
2license, the information and plans that an applicant provided
3in its application shall be a mandatory condition of the
4license. Any variation from or failure to perform such plans
5may result in discipline, including the revocation or
6nonrenewal of a license.
7    (c) If the applicant is awarded a hemp concentrate infuser
8license, the applicant shall pay a fee of $5,000 prior to
9receiving the license, to be deposited into the Cannabis
10Regulation Fund.
 
11    Section 25-15. Denial of application. An application for a
12hemp concentrate infuser license shall be denied if any of the
13following 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
6requirements; prohibitions.
7    (a) The operating documents of a hemp concentrate infuser
8shall include procedures for the oversight of the infuser, an
9inventory monitoring system including a physical inventory
10recorded weekly, accurate recordkeeping, and a staffing plan.
11    (b) A hemp concentrate infuser shall implement a security
12plan reviewed by the Illinois State Police that includes, but
13is not limited to: facility access controls; perimeter
14intrusion detection systems; personnel identification systems;
15and a 24-hour surveillance system to monitor the interior and
16exterior of the infuser facility and that is accessible to
17authorized law enforcement, the Department of Public Health,
18and the Department in real time.
19    (c) Any processing of hemp concentrate by a hemp
20concentrate infuser must take place in an enclosed, locked
21facility at the physical address provided to the Department
22during the licensing process. The hemp concentrate infuser
23location shall only be accessed by the agents working for the
24hemp concentrate infuser, Department staff performing
25inspections, Department of Public Health staff performing

 

 

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1inspections, State and local law enforcement or other
2emergency personnel, contractors working on jobs unrelated to
3hemp concentrate, intermediate hemp products, or hemp
4concentrate derived products, such as installing or
5maintaining security devices or performing electrical wiring,
6hemp retailer agents as provided in this Act, participants in
7an incubator program, individuals in a mentoring or
8educational program approved by the State, local safety or
9health inspectors, or other individuals as provided by rule.
10    (d) A hemp concentrate infuser may not sell or distribute
11any intermediate hemp products, hemp concentrate, or hemp
12concentrate derived products to any person other than a hemp
13concentrate retailer, other hemp concentrate infuser,
14Qualifying Applicant or Social Equity Justice Involved
15Applicant under the Cannabis Regulation and Tax Act, or as
16otherwise authorized by rule.
17    (e) A hemp concentrate infuser may not either directly or
18indirectly discriminate in price between different hemp
19business establishments that are purchasing a like grade,
20brand, and quality of hemp concentrate derived product or
21intermediate hemp product. Nothing in this subsection prevents
22a hemp concentrate infuser from pricing hemp concentrate
23derived products or intermediate hemp products differently
24based on differences in the cost of manufacturing or
25processing, the quantities sold, such volume discounts, or the
26way the products are delivered.

 

 

10300SB0776sam001- 103 -LRB103 03232 RJT 73288 a

1    (f) Any hemp concentrate or intermediate hemp product
2infused by an infuser and intended for distribution to a hemp
3concentrate retailer, other hemp concentrate infuser, or
4Qualifying Applicant or Social Equity Justice Involved
5Applicant defined by the Cannabis Regulation and Tax Act must
6be entered into a data collection system and packaged and
7labeled under Section 40-15. All hemp concentrate derived
8products or intermediate hemp products must be placed into a
9container for transport.
10    (g) A hemp concentrate infuser is subject to random
11inspections by the Department, the Department of Public
12Health, the Illinois State Police, local law enforcement, or
13as provided by rule.
14    (h) A hemp concentrate infuser agent shall notify local
15law enforcement, the Illinois State Police, and the Department
16within 24 hours of the discovery of any loss or theft.
17Notification shall be made by phone, in person, or by written
18or electronic communication.
19    (i) A hemp concentrate infuser may not be located in an
20area zoned for residential use.
21    (j) A hemp concentrate infuser or hemp concentrate infuser
22agent shall not transport hemp concentrate, hemp concentrate
23derived products or intermediate hemp products to any other
24hemp business establishment without a hemp distributor license
25except as follows:
26        (A) If the hemp concentrate infuser is located in a

 

 

10300SB0776sam001- 104 -LRB103 03232 RJT 73288 a

1    county with a population of 3,000,000 or more, the hemp
2    business establishment receiving the hemp concentrate,
3    hemp concentrate derived products, or intermediate hemp
4    products is within 2,000 feet of the property line of the
5    hemp concentrate infuser.
6        (B) If the hemp concentrate infuser is located in a
7    county with a population of at least 700,000 but fewer
8    than 3,000,000, the hemp business establishment receiving
9    the hemp concentrate, hemp concentrate derived products or
10    intermediate hemp products is within 2 miles of the
11    infuser.
12        (C) If the hemp concentrate infuser is located in a
13    county with a population of fewer than 700,000, the hemp
14    business establishment receiving the hemp concentrate,
15    hemp concentrate derived products, or intermediate hemp
16    products is within 15 miles of the infuser.
17    (k) A hemp concentrate infuser may enter into a contract
18with a hemp distributor to transport hemp concentrate, hemp
19concentrate derived products, or intermediate hemp products to
20a hemp concentrate retailer, other hemp concentrate infuser,
21Qualifying Applicant or Social Equity Justice Involved
22Applicant defined by the Cannabis Regulation and Tax Act, or a
23laboratory.
24    (l) At no time shall a hemp concentrate infuser or a hemp
25concentrate infuser agent perform the extraction of hemp
26extract, hemp concentrate, or intermediate hemp products from

 

 

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1industrial hemp.
 
2    Section 25-25. Hemp concentrate infuser agent
3identification 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
5concentrate infuser agent's hemp concentrate infuser agent
6identification card visible at all times when on the property
7of a hemp business establishment including the hemp business
8establishment for which the person is an agent for.
9    (c) Hemp concentrate infuser agent identification cards
10shall 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
21shall be immediately returned to the hemp concentrate infuser
22of the agent upon termination of the agent's employment.
23    (e) A hemp concentrate infuser agent identification card
24lost by a hemp concentrate infuser agent shall be reported to
25the Illinois State Police and the Department immediately upon
26discovery of the loss.

 

 

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1    (f) An agent applicant may begin employment at a hemp
2concentrate infuser while the agent applicant's hemp
3concentrate infuser agent identification card application is
4pending. Upon approval, the Department shall issue the agent's
5identification card to the agent. If denied, the hemp
6concentrate infuser and the agent applicant shall be notified
7and the agent applicant must cease all activity at the hemp
8concentrate infuser immediately.
 
9    Section 25-30. Hemp concentrate infuser organization
10background checks.
11    (a) Through the Illinois State Police, the Department
12shall conduct a background check of the prospective principal
13officers, board members, and agents of a hemp concentrate
14infuser applying for a license or a hemp concentrate infuser
15agent identification card under this Article. The Illinois
16State Police shall charge a fee set by rule for conducting the
17criminal history record check, which shall be deposited into
18the State Police Services Fund and shall not exceed the actual
19cost of the record check. Each hemp concentrate infuser
20prospective principal officer, board member, or agent shall
21submit a full set of fingerprints to the Illinois State Police
22for the purpose of obtaining a State and federal criminal
23records check. These fingerprints shall be checked against the
24fingerprint records during the application process and in a
25frequency thereafter as prescribed by the Department, to the

 

 

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1extent allowed by law, filed in any relevant Illinois State
2Police and Federal Bureau of Investigation criminal history
3records databases. The Illinois State Police shall furnish,
4following positive identification, all conviction information
5to the Department.
6    (b) When applying for the initial license or
7identification card, the background checks for all prospective
8principal officers, board members, and agents shall be
9completed before submitting the application to the licensing
10or issuing agency.
 
11    Section 25-35. Renewal of hemp concentrate infuser
12licenses and agent identification cards.
13    (a) A license or identification card issued under this
14Article shall be renewed annually. A hemp concentrate infuser
15shall receive written or electronic notice 90 days before the
16expiration of its current license that the license will
17expire. The Department shall grant a renewal within 45 days of
18submission 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
12license before expiration, the hemp concentrate infuser shall
13cease operations until its license is renewed.
14    (c) If a hemp concentrate infuser agent fails to renew the
15agent's hemp concentrate infuser agent identification card
16before its expiration, the agent shall cease to work as an
17agent of the hemp concentrate infuser until the agent's hemp
18concentrate infuser agent identification card is renewed.
19    (d) Any hemp concentrate infuser that continues to operate
20or any hemp concentrate infuser agent who continues to work as
21an agent after the applicable license or a hemp concentrate
22infuser agent identification card has expired without renewal
23is subject to the penalties provided under Section 25-20.
24    (e) The Department may not renew a license or a hemp
25concentrate infuser agent identification card if the applicant
26is delinquent in filing any required tax returns or paying any

 

 

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1amounts owed to the State of Illinois.
 
2    Section 25-40. Disclosure of ownership and control.
3    (a) Each hemp concentrate infuser applicant and licensee
4shall file and maintain a table of organization, ownership,
5and control with the Department. The table of organization,
6ownership, and control shall contain the information required
7by this Section in sufficient detail to identify all owners,
8directors, and principal officers, and the title of each
9principal officer or business entity that, through direct or
10indirect means, manages, owns, or controls the applicant or
11licensee.
12    (b) The table of organization, ownership, and control
13shall 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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1publicly traded company, the following information shall be
2provided 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
13companies, or partially owned or controlled by another entity,
14must disclose to the Department the relationship and all
15owners, board members, officers, or individuals with control
16or management of those entities. A hemp concentrate infuser
17organization shall not shield its ownership or control from
18the Department.
19    (e) A principal officer must submit a complete online
20application with the Department within 14 days of the hemp
21concentrate infuser organization being licensed by the
22Department or within 14 days of Department notice of approval
23as a new principal officer.
24    (f) A principal officer may not allow the principal
25officer's registration to expire.
26    (g) A hemp concentrate infuser organization separating

 

 

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1with a principal officer must do so under this Act. The
2principal officer must communicate the separation to the
3Department within 5 business days.
4    (h) A principal officer not in compliance with the
5requirements of this Act shall be removed from the principal
6officer's position with the hemp concentrate infuser or shall
7otherwise terminate the principal officer's affiliation.
8Failure to do so may subject the hemp concentrate infuser to
9discipline, suspension, or revocation of its license by the
10Department.
11    (i) It is the responsibility of the hemp concentrate
12infuser and its principal officers to promptly notify the
13Department of any change of the principal place of business
14address, hours of operation, change in ownership or control,
15or a change of the hemp concentrate infuser's primary or
16secondary contact information. Any changes must be made to the
17Department in writing.
 
18
Article 30.
19
Hemp Processor

 
20    Section 30-5. Hemp processor application. When applying
21for a license, the applicant shall electronically submit the
22following 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
2performed of all intermediate hemp products, hemp extract, or
3hemp 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
6score hemp processor applications to administratively rank
7applications based on the clarity, organization, and quality
8of the applicant's responses to required information.
9Applicants shall be awarded points based on the following
10categories:
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
3with its community by participating in one or more of, but not
4limited to, the following actions: (i) establishment of an
5incubator program designed to increase participation in the
6hemp industry by persons who would qualify as Social Equity
7Applicants as defined by the Cannabis Regulation and Tax Act;
8(ii) providing financial assistance to substance abuse
9treatment centers; (iii) educating children and teens about
10the potential harms of hemp concentrate derived products use;
11or (iv) other measures demonstrating a commitment to the
12applicant's community.
13    (c) If the applicant be awarded a hemp processor license,
14the information and plans that an applicant provided in its
15application, including any plans submitted in the application,
16shall be a mandatory condition of the license. Any variation
17from or failure to perform such plans may result in
18discipline, including the revocation or nonrenewal of a
19license.
20    (d) Upon the completion of the disparity and availability
21study pertaining to hemp processors by the Cannabis Regulation
22Oversight Officer pursuant to subsection (e) of Section 5-45
23of the Cannabis Regulation and Tax Act, the Department may
24modify or change the licensing application process to reduce
25or eliminate barriers from and remedy evidence of
26discrimination identified in the disparity and availability

 

 

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1study.
 
2    Section 30-20. Denial of application. An application for a
3hemp processor license must be denied if any of the following
4conditions 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
21include procedures for the oversight of the hemp processor, an
22intermediate hemp product monitoring system, including a
23physical inventory recorded weekly, accurate recordkeeping,
24and a staffing plan.

 

 

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1    (b) A hemp processor shall implement a security plan
2reviewed by the Illinois State Police that includes, but is
3not limited to, facility access controls, perimeter intrusion
4detection systems, personnel identification systems, and a
524-hour surveillance system to monitor the interior and
6exterior of the hemp processor facility and that is accessible
7to authorized law enforcement and the Department in real time.
8    (c) All processing of hemp into intermediate hemp products
9and hemp concentrate by a hemp processor must take place in an
10enclosed, locked facility at the physical address provided to
11the Department during the licensing process. The hemp
12processor location shall only be accessed by the agents
13working for the hemp processor, Department staff performing
14inspections, Department of Public Health staff performing
15inspections, State and local law enforcement or other
16emergency personnel, contractors working on jobs unrelated to
17hemp processing, such as installing or maintaining security
18devices or performing electrical wiring, transporting
19organization agents as provided in this Act, or participants
20in the incubator program, individuals in a mentoring or
21educational program approved by the State, or other
22individuals as provided by rule.
23    (d) A hemp processor may not sell or distribute any
24intermediate hemp product or hemp concentrate to any person
25other than an Illinois-registered adult use cannabis craft
26grower who meets the requirements of a Social Equity

 

 

10300SB0776sam001- 121 -LRB103 03232 RJT 73288 a

1Applicant, an adult use cannabis infuser that meets the
2requirements of a Social Equity Applicant, an adult use
3cannabis transporter that meets the requirements of a Social
4Equity Applicant, a hemp concentrate infuser, or other hemp
5processors.
6    (e) A hemp processor may not be located in an area zoned
7for residential use.
8    (f) A hemp processor may not either directly or indirectly
9discriminate in price between different cannabis or hemp
10business establishments that are purchasing a like grade,
11brand, and quality of intermediate hemp products or hemp
12concentrate. Nothing in this subsection prevents a hemp
13processor from pricing intermediate hemp products or hemp
14concentrate differently based on differences in the cost of
15manufacturing or processing, the quantities sold, such as
16volume discounts, or the way the products are delivered.
17    (g) All intermediate hemp products or hemp concentrate
18processed by a hemp processor and intended for distribution to
19a hemp or cannabis business establishment must be entered into
20a data collection system and packaged and labeled under this
21Act before transport.
22    (h) Hemp processors are subject to random inspections by
23the Department, local safety or health inspectors, the
24Illinois State Police, or as provided by rule.
25    (i) A hemp processor agent shall notify local law
26enforcement, the Illinois State Police, and the Department

 

 

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1within 24 hours of the discovery of any loss or theft.
2Notification shall be made by phone, in person, or written or
3electronic communication.
4    (j) A hemp processor or hemp processor agent shall not
5transport any intermediate hemp product or hemp concentrate to
6any other cannabis or hemp business establishment without a
7hemp 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
24distributor or an adult use cannabis transporter organization
25that meets the requirements of a Social Equity Applicant to
26transport intermediate hemp product or hemp concentrate to a

 

 

10300SB0776sam001- 123 -LRB103 03232 RJT 73288 a

1cannabis or hemp business establishment allowed to process or
2infuse intermediate hemp product or hemp concentrate under
3this Act.
4    (l) A person or entity may not hold any legal, equitable,
5ownership, or beneficial interest, directly or indirectly, of
6more than 3 hemp processor licenses. Further, a person or
7entity that is employed by, an agent of, or has a contract to
8receive payment from or participate in the management of a
9hemp processor, is a principal officer of a hemp processor, or
10entity controlled by or affiliated with a principal officer of
11a hemp processor may not hold any legal, equitable, ownership,
12or beneficial interest, directly or indirectly, in a hemp
13processor license that would result in the person or entity
14owning or controlling in combination with any hemp processor,
15principal officer of a hemp processor, or entity controlled or
16affiliated with a principal officer of a hemp processor by
17which he, she, or it is employed, is an agent of, or
18participates in the management of more than 3 hemp processor
19licenses.
20    (m) A hemp processor shall not be located within 1,500
21feet of another hemp processor.
22    (n) A hemp processor may process industrial hemp, as
23defined by the Industrial Hemp Act, intermediate hemp product,
24hemp concentrate, or full spectrum concentrate and broad
25spectrum extract that is to be used in either hemp extract
26derived products or hemp concentrate derived products.

 

 

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1    (o) A hemp processor shall comply with any other
2requirements or prohibitions set by administrative rule of the
3Department.
 
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

 

 

10300SB0776sam001- 125 -LRB103 03232 RJT 73288 a

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
5agent's hemp processor agent identification card visible at
6all times when on the property of a cannabis or hemp business
7establishment, including the hemp processor for which the
8person is an agent for.
9    (c) The hemp processor agent identification cards shall
10contain 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
21immediately returned to the hemp business establishment of the
22agent upon termination of the agent's employment.
23    (e) A hemp processor agent identification card lost by a
24hemp processor agent shall be reported to the Illinois State
25Police and the Department immediately upon discovery of the
26loss.
 

 

 

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1    Section 30-35. Hemp processor background checks.
2    (a) Through the Illinois State Police, the Department
3shall conduct a background check of the prospective principal
4officers, board members, and agents of a hemp processor
5applying for a license or hemp processor agent identification
6card under this Article. The Illinois State Police shall
7charge a fee set by rule for conducting the criminal history
8record check, which shall be deposited into the State Police
9Services Fund and shall not exceed the actual cost of the
10record check. Each hemp concentrate infuser prospective
11principal officer, board member, or agent shall submit a full
12set of fingerprints to the Illinois State Police for the
13purpose of obtaining a State and federal criminal records
14check. These fingerprints shall be checked against the
15fingerprint records during the application process and in a
16frequency thereafter as prescribed by the Department, to the
17extent allowed by law, filed in any relevant Illinois State
18Police and Federal Bureau of Investigation criminal history
19records databases. The Illinois State Police shall furnish,
20following positive identification, all conviction information
21to the Department.
22    (b) When applying for the initial license or
23identification card, the background checks for all prospective
24principal officers, board members, and agents shall be
25completed before submitting the application to the licensing

 

 

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1or issuing agency.
 
2    Section 30-40. Renewal of hemp processor licenses and
3agent identification cards.
4    (a) A license or hemp processor agent identification card
5issued under this Article shall be renewed annually. A hemp
6processor shall receive written or electronic notice 90 days
7before the expiration of its current license that the license
8will expire. The Department shall grant a renewal within 45
9days 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
4expiration, the hemp processor shall cease operations until
5its license is renewed.
6    (c) If a hemp processor agent fails to renew the agent's
7hemp processor agent identification card before its
8expiration, the agent shall cease to work as an agent of the
9hemp processor until his or her identification card is
10renewed.
11    (d) Any hemp processor that continues to operate or any
12hemp processor agent who continues to work as an agent after
13the applicable license or a hemp processor agent
14identification card has expired without renewal is subject to
15the penalties provided under this Act.
16    (e) All fees or fines collected from the renewal of a hemp
17processor license shall be deposited into the Cannabis
18Regulation Fund.
 
19    Section 30-45. Hemp processor taxes; returns.
20    (a) A tax is imposed upon the privilege of processing hemp
21into intermediate hemp products at the rate of 7% of the gross
22receipts from the sale of intermediate hemp products, hemp
23concentrate, or hemp extract by a hemp processor to a
24qualified cannabis or hemp business establishment. The sale of
25any hemp cannabinoid product that contains any amount of hemp

 

 

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1cannabinoids or any derivative thereof is subject to the tax
2under this Section on the full selling price of the product.
3The proceeds from this tax shall be deposited into the
4Cannabis Regulation Fund. This tax shall be paid by the hemp
5processor who makes the first sale and is not the
6responsibility of a craft grower who meets the requirements of
7a Social Equity Applicant, an infuser that meets the
8requirements of Social Equity Applicant, a transporter that
9meets the requirements of a Social Equity Applicant, a hemp
10concentrate infuser, a hemp extract infuser, or another hemp
11processor.
12    (b) In the administration of and compliance with this
13Section, the Department of Revenue and persons who are subject
14to this Section: (i) have the same rights, remedies,
15privileges, immunities, powers, and duties, (ii) are subject
16to the same conditions, restrictions, limitations, penalties,
17and definitions of terms, and (iii) shall employ the same
18modes of procedure as are set forth in the Intermediate Hemp
19Product Processing Tax Law and the Uniform Penalty and
20Interest Act as if those provisions were set forth in this
21Section.
22    (c) The tax imposed under this Act shall be in addition to
23all other occupation or privilege taxes imposed by the State
24of Illinois or by any municipal corporation or political
25subdivision thereof.
 

 

 

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1    Section 30-50. Disclosure of ownership and control.
2    (a) Each hemp processor applicant and licensee shall file
3and maintain a table of organization, ownership, and control
4with the Department. The table of organization, ownership, and
5control shall contain the information required by this Section
6in sufficient detail to identify all owners, directors, and
7principal officers, and the title of each principal officer or
8business entity that, through direct or indirect means,
9manages, owns, or controls the applicant or licensee.
10    (b) The table of organization, ownership, and control
11shall 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
24publicly traded company, the following information shall be
25provided 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,
10or partially owned or controlled by another entity, must
11disclose to the Department the relationship and all owners,
12board members, officers, or individuals with control or
13management of those entities. A hemp processor shall not
14shield its ownership or control from the Department.
15    (e) A principal officer must submit a complete online
16application with the Department within 14 days of the hemp
17processor being licensed by the Department or within 14 days
18of Department notice of approval as a new principal officer.
19    (f) A principal officer may not allow the principal
20officer's registration to expire.
21    (g) A hemp processor separating with a principal officer
22must do so under this Act. The principal officer must
23communicate the separation to the Department within 5 business
24days.
25    (h) A principal officer not in compliance with the
26requirements of this Act shall be removed from the principal

 

 

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1officer's position with the hemp processor or shall otherwise
2terminate the principal officer's affiliation. Failure to do
3so may subject the hemp processor to discipline, suspension,
4or revocation of its license by the Department.
5    (i) It is the responsibility of the hemp processor and its
6principal officers to promptly notify the Department of any
7change of the principal place of business address, hours of
8operation, change in ownership or control, or a change of the
9hemp processor's primary or secondary contact information. Any
10changes must be made to the Department in writing.
 
11
Article 35.
12
Hemp Distributor

 
13    Section 35-5. Hemp distributor application. When applying
14for a hemp distributor license, the applicant shall
15electronically submit the following in such form as the
16Department 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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1score distributor applications to administratively rank
2applications based on the clarity, organization, and quality
3of the applicant's responses to required information.
4Applicants shall be awarded points based on the following
5categories:
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
20least 75% of the available points according to the system
21developed by rule and meet all other requirements for a hemp
22distributor license shall be issued a license by the
23Department within 60 days of receiving the application.
24    (c) If the applicant is awarded a hemp distributor
25license, the information and plans that an applicant provided
26in its application shall be a mandatory condition of the

 

 

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1permit. Any variation from or failure to perform such plans
2may result in discipline, including the revocation or
3nonrenewal of a license.
4    (d) If the applicant is awarded a hemp distributor
5license, the applicant shall pay a prorated fee of $10,000
6prior to receiving the license to be deposited into the
7Cannabis Regulation Fund.
 
8    Section 35-15. Denial of application. An application for a
9hemp distributor license shall be denied if any of the
10following 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;
2prohibitions.
3    (a) The operating documents of a hemp distributor shall
4include procedures for the oversight of the hemp distributor,
5an inventory monitoring system, including a physical inventory
6recorded weekly, accurate recordkeeping, and a staffing plan.
7    (b) A hemp distributor may not distribute intermediate
8hemp products, hemp concentrate, or hemp concentrate derived
9products to any person other than an Illinois-registered adult
10use craft grower that meets the requirements of a Social
11Equity Applicant, an adult use cannabis infuser that meets the
12requirements of a Social Equity Applicant, an adult use
13cannabis transporter that meets the requirements of a Social
14Equity Applicant, a hemp concentrate infuser, hemp processor,
15a testing facility, or as otherwise authorized by rule.
16    (c) A hemp cannabinoid product distributed by a hemp
17distributor must be entered into a data collection system and
18placed into a hemp container for distribution.
19    (d) Hemp distributors are subject to random inspections by
20the Department, the Department of Public Health, the Illinois
21State Police, or as provided by rule.
22    (e) A hemp distributor agent shall notify local law
23enforcement, the Illinois State Police, and the Department
24within 24 hours of the discovery of any loss or theft.
25Notification shall be made by phone, in person, or by written

 

 

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1or electronic communication.
2    (f) No person under the age of 21 years shall be in a
3commercial vehicle or trailer distribution of hemp cannabinoid
4goods.
5    (g) No person or individual who is not a hemp distributor
6agent shall be in a vehicle while distributing hemp
7cannabinoid goods.
8    (h) Hemp distributors may not use commercial motor
9vehicles with a weight rating of over 10,001 pounds.
10    (i) It is unlawful for any person to offer or deliver
11money, or anything else of value, directly or indirectly, to
12any of the following persons to obtain preferential placement
13within the hemp concentrate retailer's or Qualifying
14Applicant's or a Social Equity Justice Involved Applicant's,
15as defined by the Cannabis Regulation and Tax Act, dispensary
16shelves, including, without limitation, on shelves and in
17display cases where purchasers can view products, or on the
18website of the hemp concentrate retailer or on the website of
19the Qualifying Applicant or on the website of the Social
20Equity Justice Involved Applicant dispensary under the
21Cannabis 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
20identification card visible at all times when on the property
21of a cannabis or hemp business establishment and during the
22distribution of hemp cannabinoid products when acting under
23the agent's duties as a hemp distributor agent. During these
24times, the hemp distributor agent must also provide the
25identification card upon request of any law enforcement
26officer engaged in the agent's official duties.

 

 

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1    (k) A copy of the hemp distributor's registration and a
2manifest for the delivery shall be present in any vehicle
3distributing hemp cannabinoid products.
4    (l) Any hemp cannabinoid product shall be transported so
5it is not visible or recognizable from outside the vehicle.
6    (m) A vehicle distributing hemp cannabinoid products must
7not bear any markings to indicate the vehicle contains hemp
8cannabinoid products or bear the name or logo of the hemp
9business establishment.
10    (n) Hemp cannabinoid products must be transported in an
11enclosed, locked storage compartment that is secured or
12affixed to the vehicle.
13    (o) The Department may, by rule, impose any other
14requirements or prohibitions on the transportation of hemp
15cannabinoid 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
17identification card visible at all times when on the property
18of a cannabis or hemp business establishment, including the
19hemp business establishment for which the person is an agent.
20    (c) Hemp distributor agent identification cards shall
21contain 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
6immediately returned to the hemp distributor of the agent upon
7termination of the agent's employment.
8    (e) A hemp distributor agent identification card lost by a
9hemp distributor agent shall be reported to the Illinois State
10Police and the Department immediately upon discovery of the
11loss.
12    (f) An application for a hemp distributor agent
13identification card shall be denied if the applicant is
14delinquent in filing any required tax returns or paying any
15amounts owed to the State of Illinois.
16    (g) An agent applicant may begin employment at a hemp
17distributor while the agent applicant's hemp distributor agent
18identification card application is pending. Upon approval, the
19Department shall issue the agent's hemp distributor agent
20identification card to the agent. If denied, the hemp
21distributor and the agent applicant shall be notified and the
22agent applicant must cease all activity at the transporting
23organization immediately.
 
24    Section 35-30. Hemp distributor organization background
25checks.

 

 

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1    (a) Through the Illinois State Police, the Department
2shall conduct a background check of the prospective principal
3officers, board members, and agents of a hemp distributor
4applying for a license or a hemp distributor agent
5identification card under this Article. The Illinois State
6Police shall charge a fee set by rule for conducting the
7criminal history record check, which shall be deposited into
8the State Police Services Fund and shall not exceed the actual
9cost of the record check. Each hemp distributor's prospective
10principal officer, board member, or agent shall submit a full
11set of fingerprints to the Illinois State Police for the
12purpose of obtaining a State and federal criminal records
13check. These fingerprints shall be checked against the
14fingerprint records during the application process and in a
15frequency thereafter as prescribed by the Department, to the
16extent allowed by law, filed in any relevant Illinois State
17Police and Federal Bureau of Investigation criminal history
18records databases. The Illinois State Police shall furnish,
19following positive identification, all conviction information
20to the Department.
21    (b) When applying for the initial license or
22identification card, the background checks for all prospective
23principal officers, board members, and agents shall be
24completed before submitting the application to the Department.
 
25    Section 35-35. Renewal of hemp distributor licenses and

 

 

10300SB0776sam001- 145 -LRB103 03232 RJT 73288 a

1agent identification cards.
2    (a) Any license or hemp distributor agent identification
3card issued under this Article shall be renewed annually. A
4hemp distributor shall receive written or electronic notice 90
5days before the expiration of its current license that the
6license will expire. The Department shall grant a renewal
7within 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
25before expiration, the hemp distributor shall cease operations
26until its license is renewed.

 

 

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1    (c) If a hemp distributor agent fails to renew the agent's
2hemp distributor agent identification card before the card's
3expiration, the agent shall cease to work as an agent of the
4hemp distributor until the agent's hemp distributor agent
5identification card is renewed.
6    (d) Any hemp distributor that continues to operate, or any
7hemp distributor agent who continues to work as an agent,
8after the applicable license or identification card has
9expired without renewal is subject to the penalties provided
10under this Act.
11    (e) The Department shall not renew a license or a hemp
12distributor agent identification card if the applicant is
13delinquent in filing any required tax returns or paying any
14amounts owed to the State of Illinois.
 
15    Section 35-40. Disclosure of ownership and control.
16    (a) Each hemp distributor applicant and licensee shall
17file and maintain a table of organization, ownership, and
18control with the Department. The table of organization,
19ownership, and control shall contain the information required
20by this Section in sufficient detail to identify all owners,
21directors, and principal officers, and the title of each
22principal officer or business entity that, through direct or
23indirect means, manages, owns, or controls the applicant or
24licensee.
25    (b) The table of organization, ownership, and control

 

 

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1shall 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
14publicly traded company, the following information shall be
15provided 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,
26or partially owned or controlled by another entity, must

 

 

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1disclose to the Department the relationship and all owners,
2board members, officers, or individuals with control or
3management of those entities. A hemp distributor shall not
4shield its ownership or control from the Department.
5    (e) All principal officers must submit a completed online
6application with the Department within 14 days of the hemp
7distributor being licensed by the Department or within 14 days
8of Department notice of approval as a new principal officer.
9    (f) A principal officer may not allow the principal
10officer's registration to expire.
11    (g) A hemp distributor separating with a principal officer
12must do so under this Act. The principal officer must
13communicate the separation to the Department within 5 business
14days.
15    (h) A principal officer not in compliance with the
16requirements of this Act shall be removed from the principal
17officer's position with the hemp distributor or shall
18otherwise terminate the principal officer's affiliation.
19Failure to do so may subject the transporting organization to
20discipline, suspension, or revocation of its license by the
21Department.
22    (i) It is the responsibility of the hemp distributor and
23its principal officers to promptly notify the Department of
24any change of the principal place of business address, hours
25of operation, change in ownership or control, or a change of
26the transporting organization's primary or secondary contact

 

 

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1information. Any changes must be made to the Department in
2writing.
 
3
Article 40.
4
Hemp Derived Products

 
5    Section 40-5. Hemp extract derived products.
6    (a) Any hemp cannabinoid products manufactured, processed,
7distributed, 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
24inhalation or vaporization shall meet the following additional
25requirements:
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,
4processed, distributed, sold, or offered for sale in this
5State 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
12intended for inhalation or vaporization, then the product
13shall 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
17derived products.
18    (a) A hemp extract derived product distributed or offered
19for retail sale in this State shall include the following
20information 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
26sale shall be made attractive to individuals under 21 years of

 

 

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1age, imitate a candy label, or use cartoons or other images
2popularly used to advertise to children or otherwise be
3marketed to individuals under 21 years of age.
4    (c) No hemp extract derived product shall be marketed,
5advertised, or offered for sale in a manner that would cause a
6reasonable 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
18shall include the following warnings on the product label or
19packaging 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
11cannabinoid products.
12    (a) The Department shall approve testing laboratories to
13be contracted by licensees under this Act for testing of hemp
14cannabinoid products.
15    (b) All approved testing laboratories shall meet the
16following 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
9this State if hemp cannabinoid, THC, or other contaminants are
10detected at levels greater than provided for by this Act or
11rules or guidance adopted by the Department.
12    (d) The Department may impose additional testing
13requirements, including, but not limited to, testing for
14additional analytes, setting stricter contaminant limits, and
15mandating the use of specific sampling methodologies per lot
16or batch manufactured.
17    (e) The Department shall make available a list of required
18analytes, their acceptable limits, and approved testing
19methods on the Department's website and in any other manner as
20determined by the Department.
21    (f) The total tetrahydrocannabinol concentration for hemp
22cannabinoid products shall not exceed the limits established
23in this Act.
24    (g) If a hemp cannabinoid product fails testing, the hemp
25processor may elect to reformulate the failing batch to reduce
26the total tetrahydrocannabinol of the batch to comply with the

 

 

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1THC limits established by this Act. If the reformulated batch
2still exceeds the THC limits, the hemp processor shall destroy
3the batch.
4    (h) If a hemp cannabinoid product is found to contain
5levels of any pathogen, toxicant, residual solvent, metal, or
6pesticide not enumerated in this Section or by other State
7law, then the product shall not be sold in this State.
 
8    Section 40-25. Advertising requirements. An advertisement
9for a hemp cannabinoid product, hemp extract retailer, hemp
10concentrate retailer, hemp extract infuser, hemp concentrate
11infuser, 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,
6and hemp materials.
7    (a) Nothing in this Act shall prohibit or interfere with
8the lawful transport of industrial hemp, hemp materials, or
9hemp products as authorized by the U.S. Department of
10Agriculture and the U.S. Food and Drug Administration and, in
11compliance with other federal law, regulation, or rule,
12through the State of Illinois for delivery to an out-of-state
13destination.
14    (b) No person shall transport industrial hemp, hemp, or
15hemp materials within the State unless the person is duly
16authorized under federal law and regulation to transport hemp
17and possesses a hemp manifest that includes the following
18information:
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
3applicable laws, rules, and regulations as it relates to such
4licensure.
5    (b) Failure to comply with a requirement of this Act or
6rules adopted by the Department may be punishable by a civil
7penalty, 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
15neglects to comply with one or more provisions of this Act, the
16Department may limit, suspend, revoke, or annul a license
17after providing notice and an opportunity for a hearing to the
18licensee. However, a license may be temporarily limited,
19suspended, revoked, or annulled without a hearing for a period
20not to exceed 30 days, upon notice to the licensee, following a
21finding by the Department that the public health, safety, or
22welfare is in imminent danger.
23    (d) A licensee who negligently violates this Act 3 times
24in a 5-year period shall be ineligible to process or sell hemp
25cannabinoid for a period of 5 years beginning on the date of
26the third violation. The Department may reduce the suspension

 

 

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1for good cause shown.
 
2    Section 40-40. Administration and enforcement; rules;
3emergency rules; inspections.
4    (a) The Department shall administer and enforce this Act
5and may adopt rules under the Illinois Administrative
6Procedure Act for the purpose of administering and enforcing
7this Act.
8    (b) The Department shall develop rules setting forth
9labeling, packaging, and minimum testing requirements of hemp
10cannabinoid products.
11    (c) In order to provide for the expeditious and timely
12implementation of the provisions of this Act, the Department
13may adopt emergency rules in accordance with Section 5-45 of
14the Illinois Administrative Procedure Act to the extent
15necessary to administer the Department's responsibilities
16under this Act. The adoption of emergency rules authorized by
17this subsection (c) is deemed to be necessary for the public
18interest, safety, and welfare to regulate consumer safety over
19hemp cannabinoid products.
20    (d) The Department of Public Health, local health
21departments, the Illinois State Police, local sheriff's
22offices, municipal police departments, and the Department of
23Revenue may inspect a business that manufactures, processes,
24or offers for sale hemp cannabinoid products in the State if a
25formal complaint is registered with the appropriate agency in

 

 

10300SB0776sam001- 163 -LRB103 03232 RJT 73288 a

1order to ensure compliance with this Act. The Department may
2inspect any business that manufactures, processes, or offers
3for sale hemp a cannabinoid product in the State to ensure
4compliance with this Act. The Department may enter into
5interagency agreements to regulate and enforce this Act and
6any rules or guidance adopted or promulgated.
 
7    Section 40-45. Publishing information. The Department
8shall make available to the public complaints about hemp
9cannabinoid products in violation of this Act, information
10regarding pending administrative hearings or court cases under
11this Act, or information regarding disciplinary actions taken
12against a hemp extract retailer, hemp concentrate retailer,
13hemp extract infuser, hemp concentrate infuser, or hemp
14processor.
 
15    Section 40-50. Temporary restraining order or injunction.
16The Director, through the Attorney General or any unit of
17local government, may file a complaint and apply to the
18circuit court for, and the court upon hearing and for cause
19shown may grant, a temporary restraining order or a
20preliminary or permanent injunction restraining any person
21from violating this Act.
 
22    Section 40-55. Preparation of hemp concentrate derived
23products.

 

 

10300SB0776sam001- 164 -LRB103 03232 RJT 73288 a

1    (a) The Department may regulate the production of hemp
2concentrate derived products by an Illinois-registered adult
3use craft grower that meets the requirements of a Social
4Equity Applicant, an infuser organization that meets the
5requirements of a Social Equity Applicant, a dispensary that
6meets the requirements of a Social Equity Applicant, a hemp
7concentrate infuser, or a hemp concentrate retailer and
8establish rules related to refrigeration, hot-holding, and
9handling of hemp concentrate derived products. Hemp
10concentrate derived products shall meet the packaging and
11labeling requirements contained in Section 40-65.
12    (b) Hemp concentrate derived products for sale or
13distribution at an Illinois-registered hemp retailer that
14meets the requirements of a Social Equity Applicant or a hemp
15concentrate retailer must be prepared by an approved agent of
16an Illinois-registered adult use craft grower that meets the
17requirements of a Social Equity Applicant, an infuser
18organization that meets the requirements of a Social Equity
19Applicant, or a hemp concentrate infuser.
20    (c) An Illinois-registered adult use craft grower that
21meets the requirements of a Social Equity Applicant, an
22infuser organization that meets the requirements of a Social
23Equity Applicant, a hemp concentrate infuser that prepares
24hemp concentrate derived products for sale or distribution by
25an Illinois-registered hemp retailer that meets the
26requirements of a Social Equity Applicant, or a hemp

 

 

10300SB0776sam001- 165 -LRB103 03232 RJT 73288 a

1concentrate retailer shall be under the operational
2supervision of a Department of Public Health certified food
3service sanitation manager.
4    (d) An Illinois-registered hemp retailer that meets the
5requirements of a Social Equity Applicant or a hemp
6concentrate retailer may not manufacture, process, or produce
7hemp concentrate derived products.
8    (e) The Department of Public Health shall adopt and
9enforce rules for the manufacture and processing of hemp
10concentrate derived products, and, for that purpose, it may at
11all times enter every building, room, basement, enclosure, or
12premises occupied or used, or suspected of being occupied or
13used, for the production, preparation, manufacture for sale,
14storage, sale, processing, distribution, or transportation of
15hemp concentrate derived products and inspect the premises
16together with all utensils, fixtures, furniture, and machinery
17used for the preparation of these products.
18    (f) The Department shall, by rule, establish a maximum
19level of THC that may be contained in each serving of a hemp
20concentrate derived product and within the product package.
21    (g) If a local public health agency has a reasonable
22belief that a hemp concentrate derived product poses a public
23health hazard, it may refer the Illinois-registered adult use
24craft grower that meets the requirements of a Social Equity
25Applicant, an infuser organization that meets the requirements
26of a Social Equity Applicant, or a hemp concentrate infuser

 

 

10300SB0776sam001- 166 -LRB103 03232 RJT 73288 a

1that manufactured or processed the hemp concentrate derived
2product to the Department of Public Health. If the Department
3of Public Health finds that a hemp concentrate derived product
4poses a health hazard, it may bring an action for immediate
5injunctive relief to require that action be taken as the court
6deems necessary to meet the hazard of the cultivation facility
7or seek other relief as provided by rule.
 
8    Section 40-60. Destruction of hemp concentrate derived
9product, hemp concentrate, and intermediate hemp products.
10    (a) Any hemp concentrate derived product, hemp
11concentrate, and intermediate hemp product and scrap not
12intended for distribution must be destroyed and disposed of
13under rules adopted by the Department of Agriculture under
14this Act. Documentation of destruction and disposal shall be
15retained at the Illinois-registered adult use craft grower
16that meets the requirements of a Social Equity Applicant,
17infuser organization that meets the requirements of a Social
18Equity Applicant, hemp concentrate infuser, or testing
19facility as applicable for a period of not less than 5 years.
20    (b) An Illinois-registered adult use craft grower that
21meets the requirements of a Social Equity Applicant, an
22infuser organization that meets the requirements of a Social
23Equity Applicant, or a hemp concentrate infuser shall, before
24destruction, notify the Department and the Illinois State
25Police. An Illinois-registered hemp retailer that meets the

 

 

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1requirements of a Social Equity Applicant or a hemp
2concentrate retailer shall, before destruction, notify the
3Department of Financial and Professional Regulation and the
4Illinois State Police. The Department may, by rule, require
5that an employee of the Department or the Department of
6Financial and Professional Regulation be present during the
7destruction of any hemp concentrate derived product, hemp
8concentrate or intermediate hemp product, scrap, and harvested
9cannabis, as applicable.
10    (c) An Illinois-registered adult use craft grower that
11meets the requirements of a Social Equity Applicant, infuser
12organization that meets the requirements of a Social Equity
13Applicant, Illinois-registered hemp retailer that meets the
14requirements of a Social Equity Applicant, hemp concentrate
15infuser, or hemp concentrate retailer shall keep a record of
16the date of destruction and how much was destroyed.
17    (d) An Illinois-registered hemp retailer that meets the
18requirement of a Social Equity Applicant or a hemp concentrate
19retailer shall destroy all hemp concentrate derived products
20not sold to purchasers. Documentation of destruction and
21disposal shall be retained at the Illinois-registered hemp
22retailer that meets the requirement of a Social Equity
23Applicant or a hemp concentrate retailer for a period of not
24less than 5 years.
 
25    Section 40-65. Hemp concentrate derived product packaging

 

 

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1and labeling.
2    (a) Each hemp concentrate derived product produced for
3sale shall be registered with the Department on forms provided
4by the Department. Each product registration shall include a
5label and the required registration fee at the rate
6established by the Department for a comparable medical
7cannabis or cannabis product, or as established by rule. The
8registration fee is for the name of the product offered for
9sale and one fee shall be sufficient for all package sizes.
10    (b) All hemp concentrate or intermediate hemp product
11intended for distribution to a cannabis or hemp business
12establishment must be packaged in a sealed, labeled container.
13    (c) A product containing hemp concentrate shall be sold in
14a sealed, odor-proof, and child-resistant hemp concentrate
15derived product container consistent with current standards,
16including the Consumer Product Safety Commission standards
17referenced by the Poison Prevention Act unless the sale is
18between cannabis or hemp business establishments.
19    (d) Hemp concentrate derived product shall be individually
20wrapped or packaged at the original point of preparation. The
21packaging of the hemp concentrate derived product shall
22conform to the labeling requirements of the Illinois Food,
23Drug and Cosmetic Act in addition to the other requirements
24set forth in this Section.
25    (e) Hemp concentrate derived product shall be labeled
26before sale and each label shall be securely affixed to the

 

 

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1package and shall state the following in legible English and
2any 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
17concentrating or extracting ingredients from the industrial
18hemp plant shall contain the following information, when
19applicable:
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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1warning statements established for purchasers of a size that
2is legible and readily visible to a consumer inspecting a
3package. The warning statements may not be covered or obscured
4in any way. The Department of Public Health shall define and
5update appropriate health warnings for packages including
6specific labeling or warning requirements for specific hemp
7concentrate derived products.
8    (i) Unless modified by rule to strengthen or respond to
9new evidence and science, the following warnings shall apply
10to all hemp concentrate derived products: "This product
11contains hemp concentrate or intermediate hemp product and is
12intended for use by adults 21 and over. Its use can impair
13cognition and may be habit forming. This product should not be
14used by pregnant or breastfeeding women. It is unlawful to
15sell or give this item to any individual. It is illegal to
16operate a motor vehicle while under the influence of hemp
17concentrate or intermediate hemp product. Possession or use of
18this product may carry significant legal penalties in some
19jurisdictions.".
20    (j) Warnings for each of the following product types must
21be 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
10consumption must be individually packaged, must include the
11total milligram content of THC and CBD, and may not (i) include
12more than a total of 100 milligrams of THC per package if
13packaged by an Illinois-registered adult use craft grower that
14meets the requirement of a Social Equity Applicant or an
15infuser that meets the requirement of a Social Equity
16Applicant and (ii) contain more than 50 milligrams of THC per
17package if packaged by a hemp infuser. A package may contain
18multiple servings of (A) 10 milligrams of THC if packaged by an
19Illinois-registered adult use craft grower that meets the
20requirement of a Social Equity Applicant or an infuser that
21meets the requirement of a Social Equity Applicant or (B) 5
22milligrams of THC if packaged by a hemp concentrate infuser,
23each indicated by scoring, wrapping, or by other indicators
24designating individual serving sizes. The Department may
25change the total amount of THC allowed for each package, or the
26total 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
2or destroy labeling affixed to the primary packaging of hemp
3concentrate derived products.
4    (m) For each commercial weighing and measuring device used
5at a facility, the cannabis or hemp business establishment
6must:
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
15that packaging and labeling requirements, including product
16warnings, are enforced at all times for products provided to
17purchasers. Product registration requirements and container
18requirements may be modified by rule by the Department.
19    (o) Any labeling under this Section, including warning
20labels and the specific wording of the labels, may be modified
21by rule by the Department.
 
22    Section 40-70. Local ordinances. Unless otherwise provided
23under 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
22establishment licensees or applicants to the Department, the
23Department of Public Health, the Department of Financial and
24Professional Regulation, or other agency shall be limited to
25information necessary for the purposes of administering this

 

 

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1Act. The information provided is subject to the provisions and
2limitations contained in the Freedom of Information Act and
3may be disclosed in accordance with this Act.
4    (b) The following information received and records kept by
5the Department, the Department of Public Health, the Illinois
6State Police, and the Department of Financial and Professional
7Regulation for purposes of administering this Article are
8subject to all applicable federal privacy laws, are
9confidential and exempt from disclosure under the Freedom of
10Information Act, except as provided in this Act, and not
11subject to disclosure to any individual or public or private
12entity, except to the Department of Financial and Professional
13Regulation, the Department, the Department of Public Health,
14and the Illinois State Police as necessary to perform official
15duties under this Article and to the Attorney General as
16necessary to enforce the provisions of this Act. The following
17information received and kept by the Department of Financial
18and Professional Regulation or the Department may be disclosed
19to the Department of Public Health, the Department, the
20Department of Revenue, the Illinois State Police, or the
21Attorney 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
14licensed under this Act shall be subject to disclosure under
15the Freedom of Information Act. The name and hemp business
16establishment address of the person or entity holding each
17cannabis business establishment license shall be subject to
18disclosure.
19    (d) All information collected by the Department of
20Financial and Professional Regulation or the Department in the
21course of an examination, inspection, or investigation of a
22licensee or applicant, including, but not limited to, a
23complaint against a licensee or applicant filed with the
24Department of Financial and Professional Regulation or the
25Department and information collected to investigate the
26complaint, shall be maintained for the confidential use of the

 

 

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1Department of Financial and Professional Regulation or the
2Department and may not be disclosed, except as otherwise
3provided in this Act. A formal complaint against a licensee by
4the Department of Financial and Professional Regulation or the
5Department or any disciplinary order issued by the Department
6of Financial and Professional Regulation or the Department
7against a licensee or applicant shall be a public record,
8except as otherwise provided by law. Complaints from consumers
9or members of the general public received regarding a
10specific, named licensee or complaints regarding conduct by
11unlicensed entities shall be subject to disclosure under the
12Freedom of Information Act.
13    (e) The Department, the Illinois State Police, and the
14Department of Financial and Professional Regulation may not
15share or disclose any State or national criminal history
16record information, or the nonexistence or lack of such
17information, to any person or entity not expressly authorized
18by this Act.
19    (f) The Department and the Department of Financial and
20Professional Regulation shall publish on each Department
21website a list of the ownership information of cannabis
22business establishment licensees under each Department's
23jurisdiction. The list shall include, but is not limited to:
24the name of the person or entity holding each hemp business
25establishment license; and the address at which the entity is
26operating under this Act. This list shall be published and

 

 

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1updated monthly.
 
2    Section 40-80. Suspension or revocation of a license.
3    (a) The Department of Financial and Professional
4Regulation or the Department may suspend or revoke a license
5for a violation of this Act or a rule adopted in accordance
6with this Act by the Department and the Department of
7Financial and Professional Regulation.
8    (b) The Department and the Department of Financial and
9Professional Regulation may suspend or revoke an agent
10identification card for a violation of this Act or a rule
11adopted in accordance with this Act.
 
12    Section 40-85. Contracts enforceable. It is the public
13policy of this State that contracts related to the operation
14of a lawful hemp business establishment under this Act are
15enforceable. It is the public policy of this State that no
16contract entered into by a lawful hemp business establishment
17or its agents on behalf of a hemp business establishment, or by
18those who allow property to be used by a hemp business
19establishment, shall be unenforceable on the basis that
20cultivating, obtaining, manufacturing, processing,
21distributing, dispensing, transporting, selling, possessing,
22or 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
2Regulation shall submit to the General Assembly and Governor a
3report, by September 30 of each year, that does not disclose
4any information identifying information about hemp business
5establishments but does contain, at a minimum, all of the
6following 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
26and Governor a report, by September 30 of each year, that does

 

 

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1not disclose any information identifying information about
2hemp business establishment but does contain, at a minimum,
3all 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
7Assembly and Governor a report, by September 30 of each year
8that contains, at a minimum, all of the following information
9for 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
26submit to the General Assembly and Governor a report, by

 

 

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1September 30 of each year, that does not disclose any
2identifying information about any individuals but does
3contain, 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
8Section may consult with one another in the preparation of
9each report.
 
10    Section 40-95. Potency level. Nothing in this Act shall
11prohibit hemp concentrate or intermediate hemp product that is
12sold, offered for sale, or otherwise transferred from a
13cannabis or hemp business establishment to another cannabis or
14hemp business establishment from having a potency level above
15the potency requirements set forth in this Act.
 
16    Section 40-100. Home rule. Except as otherwise allowed in
17this Act, the regulation and licensing of the activities
18described in this Act are exclusive powers and functions of
19the State. Except as otherwise allowed in this Act, a unit of
20local government, including a home rule unit, may not regulate
21or license the activities described in this Act. This Section
22is a denial and limitation of home rule powers and functions
23under subsection (h) of Section 6 of Article VII of the
24Illinois Constitution.
 

 

 

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1    Section 40-105. Conflict of interest. A person is
2ineligible to apply for, hold, or own financial or voting
3interest, other than a passive interest in a publicly traded
4company, in a cannabis or hemp business license under this Act
5if, within a 2-year period after the effective date of this
6Act, the person or the person's spouse or immediate family
7member was a member of the General Assembly or a State employee
8at an agency that regulates cannabis or hemp business
9establishment license holders who participated personally and
10substantially in the award of licenses under this Act. A
11person who violates this Section shall be guilty under
12subsection (b) of Section 50-5 of the State Officials and
13Employees 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
18resident 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
4not a resident of this State, the possession limit is as
5follows:
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
14hemp products without being a licensed hemp business
15establishment.
16    (c) The possession limits under subsections (a) and (b)
17are cumulative. The possession limits under subsections (a)
18and (b) and the possession limits found in subsection (a) and
19(b) of Section 10-10 in the Cannabis Regulation and Tax Act are
20cumulative.
21    (d) A person shall not knowingly obtain, seek to obtain,
22or possess an amount of cannabis or hemp concentrate derived
23products or both from a hemp retailer, craft grower, or a hemp
24concentrate retailer that would cause the person to exceed the
25possession limit under this Section or the possession limits
26under the Cannabis Regulation and Tax Act or the Compassionate

 

 

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1Use of Medical Cannabis Act.
 
2    Section 45-10. Age limit.
3    (a) Nothing in this Act permits the transfer of hemp
4concentrate product, with or without remuneration, to a person
5under 21 years of age or allows a person under 21 years of age
6to purchase, possess, use, process, transport, or consume hemp
7concentrate derived product.
8    (b) A person under 21 years of age with hemp concentrate
9derived products in the person's possession is liable under
10subsection (a) of Section 4 of the Cannabis Control Act.
11    (c) If the person under the age of 21 was in a motor
12vehicle at the time of the offense, the Secretary of State may
13suspend or revoke the driving privileges of any person for a
14violation of this Section under Section 6-206 of the Illinois
15Vehicle Code and the rules adopted under it.
16    (d) It is unlawful for any parent or guardian to knowingly
17permit the parent's or guardian's residence, any other private
18property under the parent's or guardian's control, or any
19vehicle, conveyance, or watercraft under the parent's or
20guardian's control, to be used by an invitee under the age of
2121 who is an invitee of the parent's child or the guardian's
22ward in a manner that constitutes a violation of this Section.
23A parent or guardian is deemed to have knowingly permitted the
24parent's or guardian's residence, any other private property
25under the parent's or guardian's control, or any vehicle,

 

 

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1conveyance, or watercraft under the parent's or guardian's
2control to be used in violation of this Section if the parent
3or guardian knowingly authorizes or permits consumption of
4hemp concentrate derived product by underage invitees. Any
5person who violates this subsection is guilty of a Class A
6misdemeanor and the person's sentence shall include, but shall
7not be limited to, a fine of not less than $500. If a violation
8of this subsection directly or indirectly results in great
9bodily harm or death to any person, the person violating this
10subsection is guilty of a Class 4 felony. In this subsection,
11where the residence or other property has an owner and a tenant
12or lessee, the trier of fact may infer that the residence or
13other property is occupied only by the tenant or lessee.
 
14    Section 45-15. Identification; false identification;
15penalty.
16    (a) To protect personal privacy, the Department may not
17require a purchaser to provide a hemp concentrate retailer or
18hemp retailer that meets the qualifications of a Social Equity
19Applicant with personal information other than
20government-issued identification to determine the purchaser's
21age, and a hemp concentrate retailer or hemp retailer that
22meets the qualifications of a Social Equity Applicant may not
23obtain and record personal information about a purchaser
24without the purchaser's consent. A hemp concentrate retailer
25or hemp retailer that meets the qualifications of a Social

 

 

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1Equity Applicant shall use an electronic reader or electronic
2scanning device to scan a purchaser's government-issued
3identification, if applicable, to determine the purchaser's
4age and the validity of the identification. Any identifying or
5personal information of a purchaser obtained or received in
6accordance with this Section shall not be retained, used,
7shared or disclosed for any purpose except as authorized by
8this Act.
9    (b) A person who is under 21 years of age may not present
10or offer to a hemp business establishment or the hemp business
11establishment's principal or employee any written or oral
12evidence of age that is false, fraudulent, or not actually the
13person'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
19consistent with Section 6-20 of the Liquor Control Act of
201934.
21    (d) The Secretary of State may suspend or revoke the
22driving privileges of any person for a violation of this
23Section under Section 6-206 of the Illinois Vehicle Code and
24the rules adopted under it.
25    (e) An agent or employee of the licensee may not be
26disciplined or discharged for selling or furnishing hemp

 

 

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1concentrate derived products to a person under 21 years of age
2if the agent or employee demanded and was shown, before
3furnishing hemp concentrate derived products to a person under
421 years of age, adequate written evidence of age and identity
5of the person. This subsection does not apply if the agent or
6employee accepted the written evidence knowing it to be false
7or fraudulent. Adequate written evidence of age and identity
8of the person is a document issued by a federal, State, county,
9or municipal government, or subdivision or agency thereof,
10including, but not limited to, a motor vehicle operator's
11license, a registration certificate issued under the Military
12Selective Service Act, or an identification card issued to a
13member of the Armed Forces. Proof that the licensee or his or
14her employee or agent was shown and reasonably relied upon
15such written evidence in any transaction forbidden by this
16Section is an affirmative defense in any criminal prosecution
17therefor or to any proceedings for the suspension or
18revocation of any license based thereon.
 
19    Section 45-20. Immunities and presumptions related to the
20use of hemp concentrate derived products by purchasers.
21    (a) A purchaser who is 21 years of age or older is not
22subject to arrest, prosecution, denial of any right or
23privilege, or other punishment, including, but not limited to,
24a civil penalty or disciplinary action taken by an
25occupational or professional licensing board, based solely on

 

 

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1the use of hemp concentrate derived products if (i) the
2purchaser possesses an amount of hemp concentrate derived
3products or cannabis that does not exceed the possession limit
4under Section 45-5 and if the purchaser is licensed,
5certified, or registered to practice any trade or profession
6under any Act and (ii) the use of hemp concentrate derived
7products does not impair that person when he or she is engaged
8in the practice of the profession for which he or she is
9licensed, certified, or registered.
10    (b) A purchaser 21 years of age or older is not subject to
11arrest, prosecution, denial of any right or privilege, or
12other punishment, including, but not limited to, a civil
13penalty or disciplinary action taken by an occupational or
14professional licensing board, based solely for (i) selling
15hemp cannabinoid paraphernalia if employed and licensed as a
16hemp concentrate retail agent or dispensing agent by a hemp
17concentrate retailer or hemp retailer that meets the
18qualifications of a Social Equity Applicant, (ii) being in the
19presence or vicinity of the use of hemp concentrate derived
20product or hemp concentrate derived product paraphernalia as
21allowed under this Act, or (iii) possessing hemp concentrate
22derived product paraphernalia.
23    (c) Mere possession of, or application for, an agent
24identification card or license does not constitute probable
25cause or reasonable suspicion to believe that a crime has been
26committed, nor shall it be used as the sole basis to support

 

 

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1the search of the person, property, or home of the person
2possessing or applying for the agent identification card. The
3possession of, or application for, an agent identification
4card does not preclude the existence of probable cause if
5probable cause exists based on other grounds.
6    (d) A person employed by the State is not subject to
7criminal or civil penalties for taking any action in good
8faith in reliance on this Act when acting within the scope of
9the person's employment. Representation and indemnification
10shall be provided to State employees as set forth in Section 2
11of the State Employee Indemnification Act.
12    (e) A law enforcement or correctional agency, or a person
13employed by a law enforcement or correctional agency, is not
14subject to criminal or civil liability, except for willful and
15wanton misconduct, as a result of taking any action within the
16scope of the official duties of the agency or person to
17prohibit or prevent the possession or use of hemp concentrate
18derived product by a person incarcerated at a correctional
19facility, jail, or municipal lockup facility, on parole or
20mandatory supervised release, or otherwise under the lawful
21jurisdiction of the agency or person.
22    (f) For purposes of receiving medical care, including
23organ transplants, a person's use of hemp concentrate product
24under this Act does not constitute the use of an illicit
25substance 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
3in a person's bodily fluids, possession of hemp concentrate
4derived product-related paraphernalia, or conduct related to
5the use of hemp concentrate derived product or the
6participation in hemp concentrate derived product-related
7activities lawful under this Act by a custodial or
8noncustodial parent, grandparent, legal guardian, foster
9parent, or other person charged with the well-being of a child
10may not form the sole or primary basis or supporting basis for
11any action or proceeding by a child welfare agency or in a
12family or juvenile court, an adverse finding, adverse
13evidence, or a restriction of any right or privilege in a
14proceeding related to adoption of a child, acting as a foster
15parent of a child, or a person's fitness to adopt a child or
16act as a foster parent of a child, or serve as the basis of any
17adverse finding, adverse evidence, or restriction of any right
18of privilege in a proceeding related to guardianship,
19conservatorship, trusteeship, the execution of a will, or the
20management of an estate unless the person's actions in
21relation to hemp concentrate derived product created an
22unreasonable danger to the safety of the minor or otherwise
23show the person to not be competent as established by clear and
24convincing evidence. This subsection applies only to conduct
25protected under this Act.
26    (b) A landlord may not be penalized or denied any benefit

 

 

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1under State law for leasing to a person who uses hemp
2concentrate derived product under this Act.
3    (c) Nothing in this Act may be construed to require a
4person or establishment in lawful possession of property to
5allow a guest, client, lessee, customer, or visitor to use
6hemp concentrate derived product on or in that property,
7including on any land owned in whole or in part or managed in
8whole 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
11does not prevent the imposition of any civil, criminal, or
12other 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
24where a person could reasonably be expected to be observed by
25others. "Public place" includes all parts of buildings owned
26or leased, in whole or in part, by the State or a unit of local

 

 

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1government and all areas in a park, recreation area, wildlife
2area, or playground owned, leased, or managed, in whole or in
3part, by the State or a unit of local government. "Public
4place" does not include a private residence unless the private
5residence is used to provide licensed child care, foster care,
6or other similar social service care on the premises.
7    (b) Nothing in this Act shall be construed to prevent the
8arrest or prosecution of a person for reckless driving or
9driving under the influence of hemp concentrate derived
10product, operating a watercraft under the influence of hemp
11concentrate derived product, or operating a snowmobile under
12the influence of hemp concentrate derived product if probable
13cause exists.
14    (c) Nothing in this Act prevents a private business from
15restricting or prohibiting the use of hemp concentrate derived
16product on its property, including areas where motor vehicles
17are parked.
18    (d) Nothing in this Act requires an individual or business
19entity to violate the provisions of federal law, including
20colleges or universities that must abide by the Drug-Free
21Schools and Communities Act Amendments of 1989, that require
22campuses to be drug free.
23    (e) To the extent that this Section conflicts with any
24applicable collective bargaining agreement, the provisions of
25the collective bargaining agreement prevails. Nothing in this
26Act shall be construed to limit in any way the right to

 

 

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1collectively bargain over the subject matters contained in
2this Act.
 
3    Section 45-35. Employment; employer liability.
4    (a) Nothing in this Act prohibits an employer from
5adopting reasonable zero-tolerance or drug-free workplace
6policies or employment policies concerning drug testing,
7smoking, consumption, storage, or use of hemp concentrate
8derived products in the workplace or while on call if the
9policy is applied in a nondiscriminatory manner.
10    (b) Nothing in this Act requires an employer to permit an
11employee to be under the influence of or use hemp concentrate
12derived product in the employer's workplace or while
13performing the employee's job duties or while on call.
14    (c) Nothing in this Act limits or prevents an employer
15from disciplining an employee or terminating employment of an
16employee for violating an employer's employment policies or
17workplace drug policy.
18    (d) An employer may consider an employee to be impaired or
19under the influence of hemp concentrate derived product if the
20employer has a good faith belief that an employee manifests
21specific, articulable symptoms while working that decrease or
22lessen the employee's performance of the duties or tasks of
23the employee's job position, including symptoms of the
24employee's speech, physical dexterity, agility, coordination,
25demeanor, irrational or unusual behavior, or negligence or

 

 

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1carelessness in operating equipment or machinery; disregard
2for the safety of the employee or others; involvement in any
3accident that results in serious damage to equipment or
4property; disruption of a production or manufacturing process;
5or carelessness that results in any injury to the employee or
6others. If an employer elects to discipline an employee on the
7basis that the employee is under the influence or impaired by
8hemp concentrate derived products, the employer must afford
9the employee a reasonable opportunity to contest the basis of
10the determination.
11    (e) Nothing in this Act shall be construed to create or
12imply a cause of action for any person against an employer for:
13        (1) actions taken pursuant to an employer's reasonable
14    workplace drug policy, including, but not limited to,
15    subjecting an employee or applicant to reasonable drug and
16    alcohol testing, reasonable and nondiscriminatory random
17    drug testing, and discipline, termination of employment,
18    or withdrawal of a job offer due to a failure of a drug
19    test;
20        (2) actions based on the employer's good faith belief
21    that an employee used or possessed 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
11diminish protections afforded by any other law, including, but
12not limited to, the Compassionate Use of Medical Cannabis
13Program Act or the Opioid Alternative Pilot Program.
14    (g) Nothing in this Act shall be construed to interfere
15with any federal, State, or local restrictions on employment,
16including, but not limited to, the United States Department of
17Transportation regulation 49 CFR 40.151(e), or impact an
18employer's ability to comply with federal or State law or
19cause 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
15of this Act, except that it does not include cannabis that is
16subject to tax under the Compassionate Use of Medical Cannabis
17Program Act.
18    "Craft grower" has the meaning given to that term in the
19Cannabis Regulation and Tax Act.
20    "Cultivation center" has the meaning given to that term in
21the 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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1Cannabis Regulation and Tax Act.
2    "Gross receipts" from the sales of intermediate hemp
3products by a processor means the total selling price or the
4amount of such sales, as defined in this Article. In the case
5of charges and time sales, the amount thereof shall be
6included only when payments are received by the processor.
7    "Infuser" has the meaning given to that term in the
8Cannabis Regulation and Tax Act.
9    "Person" means a natural individual, firm, partnership,
10association, joint stock company, joint adventure, public or
11private corporation, limited liability company, or a receiver,
12executor, trustee, guardian, or other representative appointed
13by order of any court.
14    "Processor" or "taxpayer" means a cultivation center,
15craft grower, or hemp processor who is subject to tax under
16this Article.
17    "Selling price" means the consideration for a sale valued
18in money whether received in money or otherwise, including
19cash, credits, property, and services, and shall be determined
20without any deduction on account of the cost of the property
21sold, the cost of materials used, labor or service cost, or any
22other expense whatsoever, but does not include separately
23stated charges identified on the invoice by cultivators to
24reimburse themselves for their tax liability under this
25Article.
 

 

 

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1    Section 50-10. Tax imposed.
2    (a) Beginning September 1, 2024, a tax is imposed upon the
3privilege of processing hemp products into intermediate hemp
4products at the rate of 7% of the gross receipts from the first
5sale of intermediate hemp products by a processor. The sale of
6any product that contains any amount of intermediate hemp
7product or any derivative thereof is subject to the tax under
8this Section on the full selling price of the product. The
9Department may determine the selling price of the intermediate
10hemp product when the seller and purchaser are affiliated
11persons, when the sale and purchase of intermediate hemp
12products are not an arm's length transaction, or when
13intermediate hemp products are transferred by a craft grower
14to the craft grower's or infuser or processing organization
15and a value is not established for the cannabis. The value
16determined by the Department shall be commensurate with the
17actual price received for products of like quality, character,
18and use in the area. If there are no sales of intermediate hemp
19products of like quality, character, and use in the same area,
20then the Department shall establish a reasonable value based
21on sales of products of like quality, character, and use in
22other areas of the State, taking into consideration any other
23relevant factors.
24    (b) The intermediate hemp product procession tax imposed
25under this Article is solely the responsibility of the
26processor who makes the first sale and is not the

 

 

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1responsibility of a subsequent purchaser, hemp retailer, hemp
2concentrate retailer, hemp extract retailer, hemp concentrate
3infuser, or an infuser. Persons subject to the tax imposed
4under this Article may, however, reimburse themselves for
5their tax liability hereunder by separately stating
6reimbursement for their tax liability as an additional charge.
7    (c) The tax imposed under this Article shall be in
8addition to all other occupation, privilege, or excise taxes
9imposed by the State of Illinois or by any unit of local
10government.
 
11    Section 50-15. Registration of processor. Every processor
12subject to the tax under this Article shall apply to the
13Department for a certificate of registration under this
14Article. All applications for registration under this Article
15shall be made by electronic means in the form and manner
16required by the Department. For that purpose, the provisions
17of Section 2a of the Retailers' Occupation Tax Act are
18incorporated into this Article to the extent not inconsistent
19with this Article. In addition, no certificate of registration
20shall be issued under this Article unless the applicant is
21licensed under this Act.
 
22    Section 50-20. Returns. Return and payment of intermediate
23hemp product processing tax. Each person who is required to
24pay the tax imposed by this Article shall make a return to the

 

 

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1Department on or before the 20th day of each month for the
2preceding 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
2be made under this Article shall be by electronic means.
3Taxpayers who demonstrate hardship in paying electronically
4may petition the Department to waive the electronic payment
5requirement. The Department may require a separate return for
6the tax under this Article or combine the return for the tax
7under this Article with the return for the tax under the
8Compassionate Use of Medical Cannabis Program Act, the
9Cannabis Regulation and Tax Act, or both. If the return for the
10tax under this Article is combined with the return for tax
11under the Compassionate Use of Medical Cannabis Program Act,
12the Cannabis Regulation and Tax Act, or both, then the
13vendor's discount allowed under this Section and any cap on
14that discount shall apply to the combined return. The taxpayer
15making the return provided for in this Section shall also pay
16to the Department, in accordance with this Section, the amount
17of tax imposed by this Article, less a discount of 1.75%, but
18not to exceed $1,000 per return period, which is allowed to
19reimburse the taxpayer for the expenses incurred in keeping
20records, collecting tax, preparing and filing returns,
21remitting the tax, and supplying data to the Department upon
22request. No discount may be claimed by a taxpayer on returns
23not timely filed and for taxes not timely remitted. No
24discount may be claimed by a taxpayer for any return that is
25not filed electronically. No discount may be claimed by a
26taxpayer for any payment that is not made electronically

 

 

10300SB0776sam001- 208 -LRB103 03232 RJT 73288 a

1unless a waiver has been granted under this Section. Any
2amount that is required to be shown or reported on any return
3or other document under this Article shall, if the amount is
4not a whole-dollar amount, be increased to the nearest
5whole-dollar amount if the fractional part of a dollar is
6$0.50 or more and decreased to the nearest whole-dollar amount
7if the fractional part of a dollar is less than $0.50. If a
8total amount of less than $1 is payable, refundable, or
9creditable, 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.
11Notwithstanding any other provision of this Article concerning
12the time within which a taxpayer may file a return, any such
13taxpayer who ceases to engage in the kind of business that
14makes the person responsible for filing returns under this
15Article shall file a final return under this Article with the
16Department within one month after discontinuing such business.
17    Each taxpayer under this Article shall make estimated
18payments to the Department on or before the 7th, 15th, 22nd,
19and last day of the month during which tax liability to the
20Department is incurred. The payments shall be in an amount not
21less than the lower of either 22.5% of the taxpayer's actual
22tax liability for the month or 25% of the taxpayer's actual tax
23liability for the same calendar month of the preceding year.
24The amount of the quarter-monthly payments shall be credited
25against the final tax liability of the taxpayer's return for
26that month. If any quarter-monthly payment is not paid at the

 

 

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1time or in the amount required by this Section, then the
2taxpayer shall be liable for penalties and interest on the
3difference between the minimum amount due as a payment and the
4amount of the quarter-monthly payment actually and timely
5paid, except insofar as the taxpayer has previously made
6payments for that month to the Department in excess of the
7minimum payments previously due as provided in this Section.
8    If any payment provided for in this Section exceeds the
9taxpayer's liabilities under this Article, as shown on an
10original monthly return, the Department shall, if requested by
11the taxpayer, issue to the taxpayer a credit memorandum no
12later than 30 days after the date of payment. The credit
13evidenced by the credit memorandum may be assigned by the
14taxpayer to a similar taxpayer under this Act, in accordance
15with reasonable rules to be prescribed by the Department. If
16no such request is made, the taxpayer may credit the excess
17payment against tax liability subsequently to be remitted to
18the Department under this Act, in accordance with reasonable
19rules prescribed by the Department. If the Department
20subsequently determines that all or any part of the credit
21taken was not actually due to the taxpayer, the taxpayer's
22discount shall be reduced, if necessary, to reflect the
23difference between the credit taken and that actually due, and
24that taxpayer shall be liable for penalties and interest on
25the difference.
26    If a taxpayer fails to sign a return within 30 days after

 

 

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1the proper notice and demand for signature by the Department
2is received by the taxpayer, the return shall be considered
3valid and any amount shown to be due on the return shall be
4deemed assessed.
 
5    Section 50-25. Infuser and hemp concentrate infuser
6information returns. If it is deemed necessary for the
7administration of this Article, the Department may adopt rules
8that require infusers or hemp concentrate infusers to file
9information returns regarding the sale of hemp concentrate
10derived products by infusers or hemp concentrate infusers to
11dispensaries or hemp concentrate retailers. The Department may
12require infusers or hemp concentrate infusers to file all
13information returns by electronic means.
 
14    Section 50-30. Deposit of proceeds. All moneys received by
15the Department under this Article shall be deposited into the
16Cannabis Regulation Fund.
 
17    Section 50-35. Department administration and enforcement.
18The Department shall administer and enforce this Article,
19collect all taxes, penalties, and interest due under this
20Article, dispose of taxes, penalties, and interest so
21collected in the manner provided in this Article, and
22determine all rights to credit memoranda arising on account of
23the erroneous payment of tax, penalty, or interest under this

 

 

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1Article. In the administration of, and compliance with, this
2Article, the Department and persons who are subject to this
3Article shall have the same rights, remedies, privileges,
4immunities, powers, and duties, shall be subject to the same
5conditions, restrictions, limitations, penalties, and
6definitions of terms, and shall employ the same modes of
7procedure as are prescribed in Sections 1, 2-40, 2a, 2b, 2i, 4,
85, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 6d, 7, 8,
99, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
10and all of the provisions of the Uniform Penalty and Interest
11Act that are not inconsistent with this Article, as fully as if
12those provisions were set forth in this Article. As used in
13this Section, references in the Retailers' Occupation Tax Act
14to 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
17intermediate hemp product issued by a processor to a cannabis
18or hemp business establishment shall contain the processor's
19certificate of registration number assigned under this
20Article, date, invoice number, purchaser's name and address,
21selling price, amount of intermediate hemp product, hemp
22concentrate, hemp extract, hemp extract derived product, or
23hemp concentrate derived product and any other reasonable
24information as the Department may provide by rule is necessary
25for the administration of this Article. Processors shall

 

 

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1retain the invoices for inspection by the Department.
 
2    Section 50-45. Rules. The Department may adopt rules
3related 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
8delta-9-tetrahydrocannabinol dominant product, the sum of the
9percentage of delta-9-tetrahydrocannabinol plus .877
10multiplied by the percentage of tetrahydrocannabinolic acid.
11    "Cannabis retailer" means a dispensing organization that
12sells cannabis or hemp concentrate derived product for use and
13not 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
17term in Article 1 of the Cannabis Regulation and Tax Act.
18    "Person" means a natural individual, firm, partnership,
19association, joint stock company, joint adventure, public or
20private corporation, limited liability company, or a receiver,
21executor, trustee, guardian, or other representative appointed
22by order of any court.
23    "Infuser organization" and "infuser" have the meanings

 

 

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1given to those terms in Article 1 of the Cannabis Regulation
2and Tax Act.
3    "Purchase price" means the consideration paid for a
4purchase of cannabis, valued in money, whether received in
5money or otherwise, including cash, gift cards, credits, and
6property and shall be determined without any deduction on
7account of the cost of materials used, labor or service costs,
8or any other expense whatsoever. "Purchase price" does not
9include 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
22derived products for a valuable consideration.
23    "Taxpayer" means a hemp concentrate derived product
24retailer who is required to collect the tax imposed under this
25Article.
 

 

 

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1    Section 55-10. Tax imposed.
2    (a) Beginning January 1, 2024, a tax is imposed upon
3purchasers for the privilege of using hemp concentrate derived
4products 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
18of hemp concentrate is subject to the tax under subsection (a)
19on the full purchase price of the product.
20    (c) The tax imposed by this Article is not imposed with
21respect to any transaction in interstate commerce, to the
22extent the transaction may not, under the Constitution and
23statutes of the United States, be made the subject of taxation
24by this State.
25    (d) The tax imposed under this Article shall be in
26addition to all other occupation, privilege, or excise taxes

 

 

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1imposed by the State or by any municipal corporation or
2political subdivision thereof.
3    (e) The tax imposed under this Article may not be imposed
4on any purchase by a purchaser if the hemp concentrate
5retailer or dispensing organization is prohibited by federal
6or State Constitution, treaty, convention, statute, or court
7decision from collecting the tax from the purchaser.
 
8    Section 55-15. Bundling of taxable and nontaxable items;
9prohibition; taxation. If a hemp concentrate derived product
10retailer sells hemp concentrate derived products in
11combination or bundled with items that are not subject to tax
12under this Act for one price in violation of the prohibition on
13this activity in Article 15, then the tax under this Act is
14imposed 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
17from the purchaser by the hemp concentrate derived product
18retailer at the rate stated in Section 55-10 with respect to
19hemp concentrate derived products sold by the hemp concentrate
20derived product retailer to the purchaser and shall be
21remitted to the Department as provided in Section 55-30. Hemp
22concentrate derived product retailers shall collect the tax
23from purchasers by adding the tax to the amount of the purchase
24price received from the purchaser for selling hemp concentrate

 

 

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1derived products to the purchaser. The tax imposed by this
2Article shall, when collected, be stated as a distinct item
3separate and apart from the purchase price of the hemp
4concentrate derived products.
5    (b) If a hemp concentrate derived product retailer
6collects the hemp concentrate derived product excise tax
7measured by a purchase price that is not subject to the
8intermediate hemp product processing tax, or, if a hemp
9concentrate derived product retailer, in collecting hemp
10concentrate derived product excise tax measured by a purchase
11price that is subject to tax under this Act, collects more from
12the purchaser than the required amount of the hemp concentrate
13derived product excise tax on the transaction, the purchaser
14may request and obtain a refund of that amount from the hemp
15concentrate derived product retailer. If, however, that amount
16is not refunded to the purchaser for any reason, the hemp
17concentrate derived product retailer is liable to pay that
18amount to the Department.
19    (c) Any person purchasing hemp concentrate derived
20products subject to tax under this Article as to which there
21has been no charge made to the person of the tax imposed by
22Section 55-10 shall make payment of the tax imposed by Section
2355-10 in the form and manner provided by the Department not
24later than the 20th day of the month following the month of
25purchase of the hemp concentrate derived products.
 

 

 

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1    Section 55-25. Registration of hemp concentrate derived
2product retailers. Every hemp concentrate derived product
3retailer required to collect the tax under this Article shall
4apply to the Department for a certificate of registration
5under this Article. All applications for registration under
6this Article shall be made by electronic means in the form and
7manner required by the Department. For that purpose, the
8