Rep. La Shawn K. Ford

Filed: 5/19/2023

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1559

2    AMENDMENT NO. ______. Amend Senate Bill 1559 by replacing
3everything after the enacting clause with the following:
 
4
"Article 1.

 
5    Section 1-5. The Cannabis Regulation and Tax Act is
6amended by changing Section 1-10 as follows:
 
7    (410 ILCS 705/1-10)
8    Sec. 1-10. Definitions. In this Act:
9    "Adult Use Cultivation Center License" means a license
10issued by the Department of Agriculture that permits a person
11to act as a cultivation center under this Act and any
12administrative rule made in furtherance of this Act.
13    "Adult Use Dispensing Organization License" means a
14license issued by the Department of Financial and Professional
15Regulation that permits a person to act as a dispensing

 

 

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1organization under this Act and any administrative rule made
2in furtherance of this Act.
3    "Advertise" means to engage in promotional activities
4including, but not limited to: newspaper, radio, Internet and
5electronic media, and television advertising; the distribution
6of fliers and circulars; billboard advertising; and the
7display of window and interior signs. "Advertise" does not
8mean exterior signage displaying only the name of the licensed
9cannabis business establishment.
10    "Application points" means the number of points a
11Dispensary Applicant receives on an application for a
12Conditional Adult Use Dispensing Organization License.
13    "BLS Region" means a region in Illinois used by the United
14States Bureau of Labor Statistics to gather and categorize
15certain employment and wage data. The 17 such regions in
16Illinois are: Bloomington (DeWitt County; McLean County), Cape
17Girardeau (Alexander County), Carbondale-Marion (Jackson
18County; Williamson County), Champaign-Urbana (Champaign
19County; Ford County; Piatt County), Chicago-Naperville-Elgin
20(Cook County; DeKalb County; DuPage County; Grundy County;
21Kane County; Kendall County; Lake County; McHenry County; Will
22County), Danville (Vermilion County), Davenport-Moline-Rock
23Island (Henry County; Mercer County; Rock Island County),
24Decatur (Macon County), Kankakee (Kankakee County), Peoria
25(Marshall County; Peoria County; Stark County; Tazewell
26County; Woodford County), Rockford (Boone County; Winnebago

 

 

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1County), St. Louis (Bond County; Calhoun County; Clinton
2County; Jersey County; Madison County; Macoupin County; Monroe
3County; St. Clair County), Springfield (Menard County;
4Sangamon County), Northwest Illinois nonmetropolitan area
5(Bureau County; Carroll County; Jo Daviess County; LaSalle
6County; Lee County; Ogle County; Putnam County; Stephenson
7County; Whiteside County), West Central Illinois
8nonmetropolitan area (Adams County; Brown County; Cass County;
9Christian County; Fulton County; Greene County; Hancock
10County; Henderson County; Knox County; Livingston County;
11Logan County; Mason County; McDonough County; Montgomery
12County; Morgan County; Moultrie County; Pike County; Schuyler
13County; Scott County; Shelby County; Warren County), East
14Central Illinois nonmetropolitan area (Clark County; Clay
15County; Coles County; Crawford County; Cumberland County;
16Douglas County; Edgar County; Effingham County; Fayette
17County; Iroquois County; Jasper County; Lawrence County;
18Marion County; Richland County), and South Illinois
19nonmetropolitan area (Edwards County; Franklin County;
20Gallatin County; Hamilton County; Hardin County; Jefferson
21County; Johnson County; Massac County; Perry County; Pope
22County; Pulaski County; Randolph County; Saline County; Union
23County; Wabash County; Washington County; Wayne County; White
24County).
25    "By lot" means a randomized method of choosing between 2
26or more Eligible Tied Applicants or 2 or more Qualifying

 

 

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

 

 

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

 

 

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1processing, preparing, testing, analyzing, packaging,
2repackaging, storing, containing, concealing, ingesting, or
3otherwise introducing cannabis into the human body.
4    "Cannabis plant monitoring system" or "plant monitoring
5system" means a system that includes, but is not limited to,
6testing and data collection established and maintained by the
7cultivation center, craft grower, or processing organization
8and that is available to the Department of Revenue, the
9Department of Agriculture, the Department of Financial and
10Professional Regulation, and the Illinois State Police for the
11purposes of documenting each cannabis plant and monitoring
12plant development throughout the life cycle of a cannabis
13plant cultivated for the intended use by a customer from seed
14planting to final packaging.
15    "Cannabis testing facility" means an entity registered by
16the Department of Agriculture to test cannabis for potency and
17contaminants.
18    "Clone" means a plant section from a female cannabis plant
19not yet rootbound, growing in a water solution or other
20propagation matrix, that is capable of developing into a new
21plant.
22    "Community College Cannabis Vocational Training Pilot
23Program faculty participant" means a person who is 21 years of
24age or older, licensed by the Department of Agriculture, and
25is employed or contracted by an Illinois community college to
26provide student instruction using cannabis plants at an

 

 

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1Illinois Community College.
2    "Community College Cannabis Vocational Training Pilot
3Program faculty participant Agent Identification Card" means a
4document issued by the Department of Agriculture that
5identifies a person as a Community College Cannabis Vocational
6Training Pilot Program faculty participant.
7    "Conditional Adult Use Dispensing Organization License"
8means a contingent license awarded to applicants for an Adult
9Use Dispensing Organization License that reserves the right to
10an Adult Use Dispensing Organization License if the applicant
11meets certain conditions described in this Act, but does not
12entitle the recipient to begin purchasing or selling cannabis
13or cannabis-infused products.
14    "Conditional Adult Use Cultivation Center License" means a
15license awarded to top-scoring applicants for an Adult Use
16Cultivation Center License that reserves the right to an Adult
17Use Cultivation Center License if the applicant meets certain
18conditions as determined by the Department of Agriculture by
19rule, but does not entitle the recipient to begin growing,
20processing, or selling cannabis or cannabis-infused products.
21    "Craft grower" means a facility operated by an
22organization or business that is licensed by the Department of
23Agriculture to cultivate, dry, cure, and package cannabis and
24perform other necessary activities to make cannabis available
25for sale at a dispensing organization or use at a processing
26organization. A craft grower may contain up to 14,000 5,000

 

 

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1square feet of canopy space on its premises for plants in the
2flowering state. The Department of Agriculture may authorize
3an increase or decrease of flowering stage cultivation space
4in increments of 3,000 square feet by rule based on market
5need, craft grower capacity, and the licensee's history of
6compliance or noncompliance, with a maximum space of 14,000
7square feet for cultivating plants in the flowering stage,
8which must be cultivated in all stages of growth in an enclosed
9and secure area. A craft grower may share premises with a
10processing organization or a dispensing organization, or both,
11provided each licensee stores currency and cannabis or
12cannabis-infused products in a separate secured vault to which
13the other licensee does not have access or all licensees
14sharing a vault share more than 50% of the same ownership.
15    "Craft grower agent" means a principal officer, board
16member, employee, or other agent of a craft grower who is 21
17years of age or older.
18    "Craft Grower Agent Identification Card" means a document
19issued by the Department of Agriculture that identifies a
20person as a craft grower agent.
21    "Cultivation center" means a facility operated by an
22organization or business that is licensed by the Department of
23Agriculture to cultivate, process, transport (unless otherwise
24limited by this Act), and perform other necessary activities
25to provide cannabis and cannabis-infused products to cannabis
26business establishments.

 

 

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1    "Cultivation center agent" means a principal officer,
2board member, employee, or other agent of a cultivation center
3who is 21 years of age or older.
4    "Cultivation Center Agent Identification Card" means a
5document issued by the Department of Agriculture that
6identifies a person as a cultivation center agent.
7    "Currency" means currency and coin of the United States.
8    "Dispensary" means a facility operated by a dispensing
9organization at which activities licensed by this Act may
10occur.
11    "Dispensary Applicant" means the Proposed Dispensing
12Organization Name as stated on an application for a
13Conditional Adult Use Dispensing Organization License.
14    "Dispensing organization" means a facility operated by an
15organization or business that is licensed by the Department of
16Financial and Professional Regulation to acquire cannabis from
17a cultivation center, craft grower, processing organization,
18or another dispensary for the purpose of selling or dispensing
19cannabis, cannabis-infused products, cannabis seeds,
20paraphernalia, or related supplies under this Act to
21purchasers or to qualified registered medical cannabis
22patients and caregivers. As used in this Act, "dispensing
23organization" includes a registered medical cannabis
24organization as defined in the Compassionate Use of Medical
25Cannabis Program Act or its successor Act that has obtained an
26Early Approval Adult Use Dispensing Organization License.

 

 

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1    "Dispensing organization agent" means a principal officer,
2employee, or agent of a dispensing organization who is 21
3years of age or older.
4    "Dispensing organization agent identification card" means
5a document issued by the Department of Financial and
6Professional Regulation that identifies a person as a
7dispensing organization agent.
8    "Disproportionately Impacted Area" means a census tract or
9comparable geographic area that satisfies the following
10criteria as determined by the Department of Commerce and
11Economic Opportunity, that:
12        (1) meets at least one of the following criteria:
13            (A) the area has a poverty rate of at least 20%
14        according to the latest federal decennial census; or
15            (B) 75% or more of the children in the area
16        participate in the federal free lunch program
17        according to reported statistics from the State Board
18        of Education; or
19            (C) at least 20% of the households in the area
20        receive assistance under the Supplemental Nutrition
21        Assistance Program; or
22            (D) the area has an average unemployment rate, as
23        determined by the Illinois Department of Employment
24        Security, that is more than 120% of the national
25        unemployment average, as determined by the United
26        States Department of Labor, for a period of at least 2

 

 

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1        consecutive calendar years preceding the date of the
2        application; and
3        (2) has high rates of arrest, conviction, and
4    incarceration related to the sale, possession, use,
5    cultivation, manufacture, or transport of cannabis.
6    "Early Approval Adult Use Cultivation Center License"
7means a license that permits a medical cannabis cultivation
8center licensed under the Compassionate Use of Medical
9Cannabis Program Act as of the effective date of this Act to
10begin cultivating, infusing, packaging, transporting (unless
11otherwise provided in this Act), processing, and selling
12cannabis or cannabis-infused product to cannabis business
13establishments for resale to purchasers as permitted by this
14Act as of January 1, 2020.
15    "Early Approval Adult Use Dispensing Organization License"
16means a license that permits a medical cannabis dispensing
17organization licensed under the Compassionate Use of Medical
18Cannabis Program Act as of the effective date of this Act to
19begin selling cannabis or cannabis-infused product to
20purchasers as permitted by this Act as of January 1, 2020.
21    "Early Approval Adult Use Dispensing Organization at a
22secondary site" means a license that permits a medical
23cannabis dispensing organization licensed under the
24Compassionate Use of Medical Cannabis Program Act as of the
25effective date of this Act to begin selling cannabis or
26cannabis-infused product to purchasers as permitted by this

 

 

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1Act on January 1, 2020 at a different dispensary location from
2its existing registered medical dispensary location.
3    "Eligible Tied Applicant" means a Tied Applicant that is
4eligible to participate in the process by which a remaining
5available license is distributed by lot pursuant to a Tied
6Applicant Lottery.
7    "Enclosed, locked facility" means a room, greenhouse,
8building, or other enclosed area equipped with locks or other
9security devices that permit access only by cannabis business
10establishment agents working for the licensed cannabis
11business establishment or acting pursuant to this Act to
12cultivate, process, store, or distribute cannabis.
13    "Enclosed, locked space" means a closet, room, greenhouse,
14building, or other enclosed area equipped with locks or other
15security devices that permit access only by authorized
16individuals under this Act. "Enclosed, locked space" may
17include:
18        (1) a space within a residential building that (i) is
19    the primary residence of the individual cultivating 5 or
20    fewer cannabis plants that are more than 5 inches tall and
21    (ii) includes sleeping quarters and indoor plumbing. The
22    space must only be accessible by a key or code that is
23    different from any key or code that can be used to access
24    the residential building from the exterior; or
25        (2) a structure, such as a shed or greenhouse, that
26    lies on the same plot of land as a residential building

 

 

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1    that (i) includes sleeping quarters and indoor plumbing
2    and (ii) is used as a primary residence by the person
3    cultivating 5 or fewer cannabis plants that are more than
4    5 inches tall, such as a shed or greenhouse. The structure
5    must remain locked when it is unoccupied by people.
6    "Financial institution" has the same meaning as "financial
7organization" as defined in Section 1501 of the Illinois
8Income Tax Act, and also includes the holding companies,
9subsidiaries, and affiliates of such financial organizations.
10    "Flowering stage" means the stage of cultivation where and
11when a cannabis plant is cultivated to produce plant material
12for cannabis products. This includes mature plants as follows:
13        (1) if greater than 2 stigmas are visible at each
14    internode of the plant; or
15        (2) if the cannabis plant is in an area that has been
16    intentionally deprived of light for a period of time
17    intended to produce flower buds and induce maturation,
18    from the moment the light deprivation began through the
19    remainder of the marijuana plant growth cycle.
20    "Individual" means a natural person.
21    "Infuser organization" or "infuser" means a facility
22operated by an organization or business that is licensed by
23the Department of Agriculture to directly incorporate cannabis
24or cannabis concentrate into a product formulation to produce
25a cannabis-infused product.
26    "Kief" means the resinous crystal-like trichomes that are

 

 

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1found on cannabis and that are accumulated, resulting in a
2higher concentration of cannabinoids, untreated by heat or
3pressure, or extracted using a solvent.
4    "Labor peace agreement" means an agreement between a
5cannabis business establishment and any labor organization
6recognized under the National Labor Relations Act, referred to
7in this Act as a bona fide labor organization, that prohibits
8labor organizations and members from engaging in picketing,
9work stoppages, boycotts, and any other economic interference
10with the cannabis business establishment. This agreement means
11that the cannabis business establishment has agreed not to
12disrupt efforts by the bona fide labor organization to
13communicate with, and attempt to organize and represent, the
14cannabis business establishment's employees. The agreement
15shall provide a bona fide labor organization access at
16reasonable times to areas in which the cannabis business
17establishment's employees work, for the purpose of meeting
18with employees to discuss their right to representation,
19employment rights under State law, and terms and conditions of
20employment. This type of agreement shall not mandate a
21particular method of election or certification of the bona
22fide labor organization.
23    "Limited access area" means a room or other area under the
24control of a cannabis dispensing organization licensed under
25this Act and upon the licensed premises where cannabis sales
26occur with access limited to purchasers, dispensing

 

 

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1organization owners and other dispensing organization agents,
2or service professionals conducting business with the
3dispensing organization, or, if sales to registered qualifying
4patients, caregivers, provisional patients, and Opioid
5Alternative Pilot Program participants licensed pursuant to
6the Compassionate Use of Medical Cannabis Program Act are also
7permitted at the dispensary, registered qualifying patients,
8caregivers, provisional patients, and Opioid Alternative Pilot
9Program participants.
10    "Member of an impacted family" means an individual who has
11a parent, legal guardian, child, spouse, or dependent, or was
12a dependent of an individual who, prior to the effective date
13of this Act, was arrested for, convicted of, or adjudicated
14delinquent for any offense that is eligible for expungement
15under this Act.
16    "Mother plant" means a cannabis plant that is cultivated
17or maintained for the purpose of generating clones, and that
18will not be used to produce plant material for sale to an
19infuser or dispensing organization.
20    "Ordinary public view" means within the sight line with
21normal visual range of a person, unassisted by visual aids,
22from a public street or sidewalk adjacent to real property, or
23from within an adjacent property.
24    "Ownership and control" means ownership of at least 51% of
25the business, including corporate stock if a corporation, and
26control over the management and day-to-day operations of the

 

 

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1business and an interest in the capital, assets, and profits
2and losses of the business proportionate to percentage of
3ownership.
4    "Person" means a natural individual, firm, partnership,
5association, joint stock company, joint venture, public or
6private corporation, limited liability company, or a receiver,
7executor, trustee, guardian, or other representative appointed
8by order of any court.
9    "Possession limit" means the amount of cannabis under
10Section 10-10 that may be possessed at any one time by a person
1121 years of age or older or who is a registered qualifying
12medical cannabis patient or caregiver under the Compassionate
13Use of Medical Cannabis Program Act.
14    "Principal officer" includes a cannabis business
15establishment applicant or licensed cannabis business
16establishment's board member, owner with more than 1% interest
17of the total cannabis business establishment or more than 5%
18interest of the total cannabis business establishment of a
19publicly traded company, president, vice president, secretary,
20treasurer, partner, officer, member, manager member, or person
21with a profit sharing, financial interest, or revenue sharing
22arrangement. The definition includes a person with authority
23to control the cannabis business establishment, a person who
24assumes responsibility for the debts of the cannabis business
25establishment and who is further defined in this Act.
26    "Primary residence" means a dwelling where a person

 

 

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1usually stays or stays more often than other locations. It may
2be determined by, without limitation, presence, tax filings;
3address on an Illinois driver's license, an Illinois
4Identification Card, or an Illinois Person with a Disability
5Identification Card; or voter registration. No person may have
6more than one primary residence.
7    "Processing organization" or "processor" means a facility
8operated by an organization or business that is licensed by
9the Department of Agriculture to either extract constituent
10chemicals or compounds to produce cannabis concentrate or
11incorporate cannabis or cannabis concentrate into a product
12formulation to produce a cannabis product.
13    "Processing organization agent" means a principal officer,
14board member, employee, or agent of a processing organization.
15    "Processing organization agent identification card" means
16a document issued by the Department of Agriculture that
17identifies a person as a processing organization agent.
18    "Purchaser" means a person 21 years of age or older who
19acquires cannabis for a valuable consideration. "Purchaser"
20does not include a cardholder under the Compassionate Use of
21Medical Cannabis Program Act.
22    "Qualifying Applicant" means an applicant that submitted
23an application pursuant to Section 15-30 that received at
24least 85% of 250 application points available under Section
2515-30 as the applicant's final score and meets the definition
26of "Social Equity Applicant" as set forth under this Section.

 

 

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1    "Qualifying Social Equity Justice Involved Applicant"
2means an applicant that submitted an application pursuant to
3Section 15-30 that received at least 85% of 250 application
4points available under Section 15-30 as the applicant's final
5score and meets the criteria of either paragraph (1) or (2) of
6the definition of "Social Equity Applicant" as set forth under
7this Section.
8    "Qualified Social Equity Applicant" means a Social Equity
9Applicant who has been awarded a conditional license under
10this Act to operate a cannabis business establishment.
11    "Resided" means an individual's primary residence was
12located within the relevant geographic area as established by
132 of the following:
14        (1) a signed lease agreement that includes the
15    applicant's name;
16        (2) a property deed that includes the applicant's
17    name;
18        (3) school records;
19        (4) a voter registration card;
20        (5) an Illinois driver's license, an Illinois
21    Identification Card, or an Illinois Person with a
22    Disability Identification Card;
23        (6) a paycheck stub;
24        (7) a utility bill;
25        (8) tax records; or
26        (9) any other proof of residency or other information

 

 

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1    necessary to establish residence as provided by rule.
2    "Smoking" means the inhalation of smoke caused by the
3combustion of cannabis.
4    "Social Equity Applicant" means an applicant that is an
5Illinois resident that meets one of the following criteria:
6        (1) an applicant with at least 51% ownership and
7    control by one or more individuals who have resided for at
8    least 5 of the preceding 10 years in a Disproportionately
9    Impacted Area;
10        (2) an applicant with at least 51% ownership and
11    control by one or more individuals who:
12            (i) have been arrested for, convicted of, or
13        adjudicated delinquent for any offense that is
14        eligible for expungement under this Act; or
15            (ii) is a member of an impacted family;
16        (3) for applicants with a minimum of 10 full-time
17    employees, an applicant with at least 51% of current
18    employees who:
19            (i) currently reside in a Disproportionately
20        Impacted Area; or
21            (ii) have been arrested for, convicted of, or
22        adjudicated delinquent for any offense that is
23        eligible for expungement under this Act or member of
24        an impacted family.
25    Nothing in this Act shall be construed to preempt or limit
26the duties of any employer under the Job Opportunities for

 

 

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1Qualified Applicants Act. Nothing in this Act shall permit an
2employer to require an employee to disclose sealed or expunged
3offenses, unless otherwise required by law.
4    "Tied Applicant" means an application submitted by a
5Dispensary Applicant pursuant to Section 15-30 that received
6the same number of application points under Section 15-30 as
7the Dispensary Applicant's final score as one or more
8top-scoring applications in the same BLS Region and would have
9been awarded a license but for the one or more other
10top-scoring applications that received the same number of
11application points. Each application for which a Dispensary
12Applicant was required to pay a required application fee for
13the application period ending January 2, 2020 shall be
14considered an application of a separate Tied Applicant.
15    "Tied Applicant Lottery" means the process established
16under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
17Use Dispensing Organization Licenses pursuant to Sections
1815-25 and 15-30 among Eligible Tied Applicants.
19    "Tincture" means a cannabis-infused solution, typically
20comprised of alcohol, glycerin, or vegetable oils, derived
21either directly from the cannabis plant or from a processed
22cannabis extract. A tincture is not an alcoholic liquor as
23defined in the Liquor Control Act of 1934. A tincture shall
24include a calibrated dropper or other similar device capable
25of accurately measuring servings.
26    "Transporting organization" or "transporter" means an

 

 

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1organization or business that is licensed by the Department of
2Agriculture to transport cannabis or cannabis-infused product
3on behalf of a cannabis business establishment or a community
4college licensed under the Community College Cannabis
5Vocational Training Pilot Program.
6    "Transporting organization agent" means a principal
7officer, board member, employee, or agent of a transporting
8organization.
9    "Transporting organization agent identification card"
10means a document issued by the Department of Agriculture that
11identifies a person as a transporting organization agent.
12    "Unit of local government" means any county, city,
13village, or incorporated town.
14    "Vegetative stage" means the stage of cultivation in which
15a cannabis plant is propagated to produce additional cannabis
16plants or reach a sufficient size for production. This
17includes seedlings, clones, mothers, and other immature
18cannabis plants as follows:
19        (1) if the cannabis plant is in an area that has not
20    been intentionally deprived of light for a period of time
21    intended to produce flower buds and induce maturation, it
22    has no more than 2 stigmas visible at each internode of the
23    cannabis plant; or
24        (2) any cannabis plant that is cultivated solely for
25    the purpose of propagating clones and is never used to
26    produce cannabis.

 

 

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1(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
2102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
35-13-22.)
 
4
Article 3.

 
5    Section 3-5. The Compassionate Use of Medical Cannabis
6Program Act is amended by adding Section 136 as follows:
 
7    (410 ILCS 130/136 new)
8    Sec. 136. Pickup or drive-through locations. Registered
9qualifying patients and designated caregivers under this Act
10may use pickup or drive-through locations, as authorized under
11subsection (d) of Section 15-85 of the Cannabis Regulation and
12Tax Act.
 
13    Section 3-10. The Cannabis Regulation and Tax Act is
14amended by changing Sections 15-15, 15-20, 15-70, 15-85, and
1515-100 as follows:
 
16    (410 ILCS 705/15-15)
17    Sec. 15-15. Early Approval Adult Use Dispensing
18Organization License.
19    (a) Any medical cannabis dispensing organization holding a
20valid registration under the Compassionate Use of Medical
21Cannabis Program Act as of the effective date of this Act may,

 

 

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

 

 

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

 

 

10300SB1559ham001- 25 -LRB103 29878 BMS 62285 a

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

 

 

10300SB1559ham001- 26 -LRB103 29878 BMS 62285 a

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

 

 

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1        (2) the Early Approval Adult Use Dispensing
2    Organization has obtained the approval of the municipality
3    or, if outside the boundaries of a municipality in an
4    unincorporated area of the county, the approval of the
5    county where the existing license is located to move to
6    another location within that unit of local government.
7    At no time may an Early Approval Adult Use Dispensing
8Organization dispensary licensed under this Section operate in
9a separate facility from its associated medical cannabis
10dispensing organization dispensary licensed under the
11Compassionate Use of Medical Cannabis Act. The relocation of
12an Early Approval Adult Use Dispensing Organization License
13under this subsection shall be subject to Sections 55-25 and
1455-28 of this Act.
15    (c) The license fee required by paragraph (1) of
16subsection (b) of this Section shall be in addition to any
17license fee required for the renewal of a registered medical
18cannabis dispensing organization license.
19    (d) Applicants must submit all required information,
20including the requirements in subsection (b) of this Section,
21to the Department. Failure by an applicant to submit all
22required information may result in the application being
23disqualified.
24    (e) If the Department receives an application that fails
25to provide the required elements contained in subsection (b),
26the Department shall issue a deficiency notice to the

 

 

10300SB1559ham001- 28 -LRB103 29878 BMS 62285 a

1applicant. The applicant shall have 10 calendar days from the
2date of the deficiency notice to submit complete information.
3Applications that are still incomplete after this opportunity
4to cure may be disqualified.
5    (f) If an applicant meets all the requirements of
6subsection (b) of this Section, the Department shall issue the
7Early Approval Adult Use Dispensing Organization License
8within 14 days of receiving a completed application unless:
9        (1) The licensee or a principal officer is delinquent
10    in filing any required tax returns or paying any amounts
11    owed to the State of Illinois;
12        (2) The Secretary of Financial and Professional
13    Regulation determines there is reason, based on documented
14    compliance violations, the licensee is not entitled to an
15    Early Approval Adult Use Dispensing Organization License;
16    or
17        (3) Any principal officer fails to register and remain
18    in compliance with this Act or the Compassionate Use of
19    Medical Cannabis Program Act.
20    (g) A registered medical cannabis dispensing organization
21that obtains an Early Approval Adult Use Dispensing
22Organization License may begin selling cannabis,
23cannabis-infused products, paraphernalia, and related items to
24purchasers under the rules of this Act no sooner than January
251, 2020.
26    (h) A dispensing organization holding a medical cannabis

 

 

10300SB1559ham001- 29 -LRB103 29878 BMS 62285 a

1dispensing organization license issued under the Compassionate
2Use of Medical Cannabis Program Act must maintain an adequate
3supply of cannabis and cannabis-infused products for purchase
4by qualifying patients, caregivers, provisional patients, and
5Opioid Alternative Pilot Program participants. For the
6purposes of this subsection, "adequate supply" means a monthly
7inventory level that is comparable in type and quantity to
8those medical cannabis products provided to patients and
9caregivers on an average monthly basis for the 6 months before
10the effective date of this Act.
11    (i) If there is a shortage of cannabis or cannabis-infused
12products or availability of pickup or drive-through options is
13offered under Section 15-85, a dispensing organization holding
14both a dispensing organization license under the Compassionate
15Use of Medical Cannabis Program Act and this Act shall
16prioritize serving qualifying patients, caregivers,
17provisional patients, and Opioid Alternative Pilot Program
18participants before serving purchasers, including by offering
19dedicated parking or time slots for qualifying patients.
20    (j) Notwithstanding any law or rule to the contrary, a
21person that holds a medical cannabis dispensing organization
22license issued under the Compassionate Use of Medical Cannabis
23Program Act and an Early Approval Adult Use Dispensing
24Organization License may permit purchasers into a limited
25access area as that term is defined in administrative rules
26made under the authority in the Compassionate Use of Medical

 

 

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

 

 

10300SB1559ham001- 31 -LRB103 29878 BMS 62285 a

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

 

 

10300SB1559ham001- 32 -LRB103 29878 BMS 62285 a

1organization licensed under this Section may engage in all
2activities authorized by this Article to be performed by a
3dispensing organization agent.
4    (o) If the Department suspends, permanently revokes, or
5otherwise disciplines the Early Approval Adult Use Dispensing
6Organization License of a dispensing organization that also
7holds a medical cannabis dispensing organization license
8issued under the Compassionate Use of Medical Cannabis Program
9Act, the Department may consider the suspension, permanent
10revocation, or other discipline of the medical cannabis
11dispensing organization license.
12    (p) All fees collected pursuant to this Section shall be
13deposited into the Cannabis Regulation Fund, unless otherwise
14specified.
15(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
16102-98, eff. 7-15-21.)
 
17    (410 ILCS 705/15-20)
18    Sec. 15-20. Early Approval Adult Use Dispensing
19Organization License; secondary site.
20    (a) Any medical cannabis dispensing organization holding a
21valid registration under the Compassionate Use of Medical
22Cannabis Program Act as of the effective date of this Act may,
23within 60 days of the effective date of this Act, apply to the
24Department for an Early Approval Adult Use Dispensing
25Organization License to operate a dispensing organization to

 

 

10300SB1559ham001- 33 -LRB103 29878 BMS 62285 a

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

 

 

10300SB1559ham001- 34 -LRB103 29878 BMS 62285 a

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

 

 

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

 

 

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1            (C) the process to ensure that access to the
2        restricted access areas is restricted to, registered
3        agents, service professionals, transporting
4        organization agents, Department inspectors, and
5        security personnel;
6        (13) a proposed inventory control plan that complies
7    with this Section;
8        (14) the name, address, social security number, and
9    date of birth of each principal officer and board member
10    of the dispensing organization; each of those individuals
11    shall be at least 21 years of age;
12        (15) a nonrefundable Cannabis Business Development Fee
13    equal to $200,000, to be deposited into the Cannabis
14    Business Development Fund; and
15        (16) a commitment to completing one of the following
16    Social Equity Inclusion Plans in subsection (d).
17    (d) Before receiving an Early Approval Adult Use
18Dispensing Organization License at a secondary site, a
19dispensing organization shall indicate the Social Equity
20Inclusion Plan that the applicant plans to achieve before the
21expiration of the Early Approval Adult Use Dispensing
22Organization License from the list below:
23        (1) make a contribution of 3% of total sales from June
24    1, 2018 to June 1, 2019, or $100,000, whichever is less, to
25    the Cannabis Business Development Fund. This is in
26    addition to the fee required by paragraph (16) of

 

 

10300SB1559ham001- 37 -LRB103 29878 BMS 62285 a

1    subsection (c) of this Section;
2        (2) make a grant of 3% of total sales from June 1, 2018
3    to June 1, 2019, or $100,000, whichever is less, to a
4    cannabis industry training or education program at an
5    Illinois community college as defined in the Public
6    Community College Act;
7        (3) make a donation of $100,000 or more to a program
8    that provides job training services to persons recently
9    incarcerated or that operates in a Disproportionately
10    Impacted Area;
11        (4) participate as a host in a cannabis business
12    establishment incubator program approved by the Department
13    of Commerce and Economic Opportunity, and in which an
14    Early Approval Adult Use Dispensing Organization License
15    at a secondary site holder agrees to provide a loan of at
16    least $100,000 and mentorship to incubate, for at least a
17    year, a Social Equity Applicant intending to seek a
18    license or a licensee that qualifies as a Social Equity
19    Applicant. In this paragraph (4), "incubate" means
20    providing direct financial assistance and training
21    necessary to engage in licensed cannabis industry activity
22    similar to that of the host licensee. The Early Approval
23    Adult Use Dispensing Organization License holder or the
24    same entity holding any other licenses issued under this
25    Act shall not take an ownership stake of greater than 10%
26    in any business receiving incubation services to comply

 

 

10300SB1559ham001- 38 -LRB103 29878 BMS 62285 a

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

 

 

10300SB1559ham001- 39 -LRB103 29878 BMS 62285 a

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

 

 

10300SB1559ham001- 40 -LRB103 29878 BMS 62285 a

1after the completion of a successful inspection.
2    (k) If an applicant passes the inspection under this
3Section, the Department shall issue the Early Approval Adult
4Use Dispensing Organization License at a secondary site within
510 business days unless:
6        (1) The licensee, any principal officer or board
7    member of the licensee, or any person having a financial
8    or voting interest of 5% or greater in the licensee is
9    delinquent in filing any required tax returns or paying
10    any amounts owed to the State of Illinois; or
11        (2) The Secretary of Financial and Professional
12    Regulation determines there is reason, based on documented
13    compliance violations, the licensee is not entitled to an
14    Early Approval Adult Use Dispensing Organization License
15    at its secondary site.
16    (l) Once the Department has issued a license, the
17dispensing organization shall notify the Department of the
18proposed opening date.
19    (m) A registered medical cannabis dispensing organization
20that obtains an Early Approval Adult Use Dispensing
21Organization License at a secondary site may begin selling
22cannabis, cannabis-infused products, paraphernalia, and
23related items to purchasers under the rules of this Act no
24sooner than January 1, 2020.
25    (n) If there is a shortage of cannabis or cannabis-infused
26products or availability of pickup or drive-through options is

 

 

10300SB1559ham001- 41 -LRB103 29878 BMS 62285 a

1offered under Section 15-85, a dispensing organization holding
2both a dispensing organization license under the Compassionate
3Use of Medical Cannabis Program Act and this Article shall
4prioritize serving qualifying patients and caregivers before
5serving purchasers, including by offering dedicated parking or
6time slots for qualifying patients.
7    (o) An Early Approval Adult Use Dispensing Organization
8License at a secondary site is valid until March 31, 2021. A
9dispensing organization that obtains an Early Approval Adult
10Use Dispensing Organization License at a secondary site shall
11receive written or electronic notice 90 days before the
12expiration of the license that the license will expire, and
13inform the license holder that it may renew its Early Approval
14Adult Use Dispensing Organization License at a secondary site.
15The Department shall renew an Early Approval Adult Use
16Dispensing Organization License at a secondary site within 60
17days of submission of the renewal application being deemed
18complete if:
19        (1) the dispensing organization submits an application
20    and the required nonrefundable renewal fee of $30,000, to
21    be deposited into the Cannabis Regulation Fund;
22        (2) the Department has not suspended or permanently
23    revoked the Early Approval Adult Use Dispensing
24    Organization License or a medical cannabis dispensing
25    organization license held by the same person or entity for
26    violating this Act or rules adopted under this Act or the

 

 

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

 

 

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1dispensing organization agent identification card issued under
2the Compassionate Use of Medical Cannabis Program Act and is
3an officer, director, manager, or employee of the dispensing
4organization licensed under this Section may engage in all
5activities authorized by this Article to be performed by a
6dispensing organization agent.
7    (s) If the Department suspends, permanently revokes, or
8otherwise disciplines the Early Approval Adult Use Dispensing
9Organization License of a dispensing organization that also
10holds a medical cannabis dispensing organization license
11issued under the Compassionate Use of Medical Cannabis Program
12Act, the Department may consider the suspension, permanent
13revocation, or other discipline as grounds to take
14disciplinary action against the medical cannabis dispensing
15organization.
16    (t) All fees collected pursuant to this Section shall be
17deposited into the Cannabis Regulation Fund, unless otherwise
18specified.
19(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
20    (410 ILCS 705/15-70)
21    Sec. 15-70. Operational requirements; prohibitions.
22    (a) A dispensing organization shall operate in accordance
23with the representations made in its application and license
24materials. It shall be in compliance with this Act and rules.
25    (b) A dispensing organization must include the legal name

 

 

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1of the dispensary on the packaging of any cannabis product it
2sells.
3    (c) All cannabis, cannabis-infused products, and cannabis
4seeds must be obtained from an Illinois registered adult use
5cultivation center, craft grower, infuser, or another
6dispensary.
7    (d) Dispensing organizations are prohibited from selling
8any product containing alcohol except tinctures, which must be
9limited to containers that are no larger than 100 milliliters.
10    (e) A dispensing organization shall inspect and count
11product received from a transporting organization, adult use
12cultivation center, craft grower, infuser organization, or
13other dispensing organization before dispensing it.
14    (f) A dispensing organization may only accept cannabis
15deliveries into a restricted access area. Deliveries may not
16be accepted through the public or limited access areas unless
17otherwise approved by the Department.
18    (g) A dispensing organization shall maintain compliance
19with State and local building, fire, and zoning requirements
20or regulations.
21    (h) A dispensing organization shall submit a list to the
22Department of the names of all service professionals that will
23work at the dispensary. The list shall include a description
24of the type of business or service provided. Changes to the
25service professional list shall be promptly provided. No
26service professional shall work in the dispensary until the

 

 

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1name is provided to the Department on the service professional
2list.
3    (i) A dispensing organization's license allows for a
4dispensary to be operated only at a single location.
5    (j) A dispensary may operate between 6 a.m. and 10 p.m.
6local time.
7    (k) A dispensing organization must keep all lighting
8outside and inside the dispensary in good working order and
9wattage sufficient for security cameras.
10    (l) A dispensing organization must keep all air treatment
11systems that will be installed to reduce odors in good working
12order.
13    (m) A dispensing organization must contract with a private
14security contractor that is licensed under Section 10-5 of the
15Private Detective, Private Alarm, Private Security,
16Fingerprint Vendor, and Locksmith Act of 2004 to provide
17on-site security at all hours of the dispensary's operation.
18    (n) A dispensing organization shall ensure that any
19building or equipment used by a dispensing organization for
20the storage or sale of cannabis is maintained in a clean and
21sanitary condition.
22    (o) The dispensary shall be free from infestation by
23insects, rodents, or pests.
24    (p) A dispensing organization shall not:
25        (1) Produce or manufacture cannabis;
26        (2) Accept a cannabis product from an adult use

 

 

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1    cultivation center, craft grower, infuser, dispensing
2    organization, or transporting organization unless it is
3    pre-packaged and labeled in accordance with this Act and
4    any rules that may be adopted pursuant to this Act;
5        (3) Obtain cannabis or cannabis-infused products from
6    outside the State of Illinois;
7        (4) Sell cannabis or cannabis-infused products to a
8    purchaser unless the dispensing organization is licensed
9    under the Compassionate Use of Medical Cannabis Program
10    Act, and the individual is registered under the
11    Compassionate Use of Medical Cannabis Program or the
12    purchaser has been verified to be 21 years of age or older;
13        (5) Enter into an exclusive agreement with any adult
14    use cultivation center, craft grower, or infuser.
15    Dispensaries shall provide consumers an assortment of
16    products from various cannabis business establishment
17    licensees such that the inventory available for sale at
18    any dispensary from any single cultivation center, craft
19    grower, processor, transporter, or infuser entity shall
20    not be more than 40% of the total inventory available for
21    sale. For the purpose of this subsection, a cultivation
22    center, craft grower, processor, or infuser shall be
23    considered part of the same entity if the licensees share
24    at least one principal officer. The Department may request
25    that a dispensary diversify its products as needed or
26    otherwise discipline a dispensing organization for

 

 

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1    violating this requirement;
2        (6) Refuse to conduct business with an adult use
3    cultivation center, craft grower, transporting
4    organization, or infuser that has the ability to properly
5    deliver the product and is permitted by the Department of
6    Agriculture, on the same terms as other adult use
7    cultivation centers, craft growers, infusers, or
8    transporters with whom it is dealing;
9        (7) (Blank); Operate drive-through windows;
10        (8) Allow for the dispensing of cannabis or
11    cannabis-infused products in vending machines;
12        (9) Transport cannabis to residences or transport
13    cannabis to other locations where purchasers may be for
14    delivery, except for the limited circumstances provided in
15    paragraph (5.5) of subsection (c) of Section 15-100;
16        (10) Enter into agreements to allow persons who are
17    not dispensing organization agents to deliver cannabis or
18    to transport cannabis to purchasers;
19        (11) Operate a dispensary if its video surveillance
20    equipment is inoperative;
21        (12) Operate a dispensary if the point-of-sale
22    equipment is inoperative;
23        (13) Operate a dispensary if the State's cannabis
24    electronic verification system is inoperative;
25        (14) Have fewer than 2 people working at the
26    dispensary at any time while the dispensary is open;

 

 

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1        (15) Be located within 1,500 feet of the property line
2    of a pre-existing dispensing organization, unless the
3    applicant is a Social Equity Applicant or Social Equity
4    Justice Involved Applicant located or seeking to locate
5    within 1,500 feet of a dispensing organization licensed
6    under Section 15-15 or Section 15-20;
7        (16) Sell clones or any other live plant material;
8        (17) Sell cannabis, cannabis concentrate, or
9    cannabis-infused products in combination or bundled with
10    each other or any other items for one price, and each item
11    of cannabis, concentrate, or cannabis-infused product must
12    be separately identified by quantity and price on the
13    receipt;
14        (18) Violate any other requirements or prohibitions
15    set by Department rules.
16    (q) It is unlawful for any person having an Early Approval
17Adult Use Cannabis Dispensing Organization License, a
18Conditional Adult Use Cannabis Dispensing Organization, an
19Adult Use Dispensing Organization License, or a medical
20cannabis dispensing organization license issued under the
21Compassionate Use of Medical Cannabis Program Act or any
22officer, associate, member, representative, or agent of such
23licensee to accept, receive, or borrow money or anything else
24of value or accept or receive credit (other than merchandising
25credit in the ordinary course of business for a period not to
26exceed 30 days) directly or indirectly from any adult use

 

 

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1cultivation center, craft grower, infuser, or transporting
2organization in exchange for preferential placement on the
3dispensing organization's shelves, display cases, or website.
4This includes anything received or borrowed or from any
5stockholders, officers, agents, or persons connected with an
6adult use cultivation center, craft grower, infuser, or
7transporting organization.
8    (r) It is unlawful for any person having an Early Approval
9Adult Use Cannabis Dispensing Organization License, a
10Conditional Adult Use Cannabis Dispensing Organization, an
11Adult Use Dispensing Organization License, or a medical
12cannabis dispensing organization license issued under the
13Compassionate Use of Medical Cannabis Program to enter into
14any contract with any person licensed to cultivate, process,
15or transport cannabis whereby such dispensing organization
16agrees not to sell any cannabis cultivated, processed,
17transported, manufactured, or distributed by any other
18cultivator, transporter, or infuser, and any provision in any
19contract violative of this Section shall render the whole of
20such contract void and no action shall be brought thereon in
21any court.
22(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
23102-98, eff. 7-15-21.)
 
24    (410 ILCS 705/15-85)
25    Sec. 15-85. Dispensing cannabis.

 

 

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

 

 

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1        applicable) of cannabis or cannabis-infused product
2        dispensed;
3            (iv) The date and time the cannabis was dispensed.
4    (b) A dispensing organization shall refuse to sell
5cannabis or cannabis-infused products to any person unless the
6person produces a valid identification showing that the person
7is 21 years of age or older. A medical cannabis dispensing
8organization may sell cannabis or cannabis-infused products to
9a person who is under 21 years of age if the sale complies with
10the provisions of the Compassionate Use of Medical Cannabis
11Program Act and rules.
12    (c) For the purposes of this Section, valid identification
13must:
14        (1) Be valid and unexpired;
15        (2) Contain a photograph and the date of birth of the
16    person.
17    (d) Notwithstanding any other provision of law, a
18dispensing organization may offer pickup or drive-through
19locations of cannabis or cannabis-infused products in
20accordance with Section 15-100.
21(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
22102-98, eff. 7-15-21.)
 
23    (410 ILCS 705/15-100)
24    Sec. 15-100. Security.
25    (a) A dispensing organization shall implement security

 

 

10300SB1559ham001- 52 -LRB103 29878 BMS 62285 a

1measures to deter and prevent entry into and theft of cannabis
2or currency.
3    (b) A dispensing organization shall submit any changes to
4the floor plan or security plan to the Department for
5pre-approval. All cannabis shall be maintained and stored in a
6restricted access area during construction.
7    (c) The dispensing organization shall implement security
8measures to protect the premises, purchasers, and dispensing
9organization agents including, but not limited to the
10following:
11        (1) Establish a locked door or barrier between the
12    facility's entrance and the limited access area;
13        (2) Prevent individuals from remaining on the premises
14    if they are not engaging in activity permitted by this Act
15    or rules;
16        (3) Develop a policy that addresses the maximum
17    capacity and purchaser flow in the waiting rooms and
18    limited access areas;
19        (4) Dispose of cannabis in accordance with this Act
20    and rules;
21        (5) During hours of operation, store and dispense all
22    cannabis in from the restricted access area. During
23    operational hours, cannabis shall be stored in an enclosed
24    locked room or cabinet and accessible only to specifically
25    authorized dispensing organization agents;
26        (5.5) During hours of operation, dispense all cannabis

 

 

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1    from the restricted access area, a drive-through window of
2    the restricted access area, or a pickup location in close
3    proximity to the restricted access area. All orders in a
4    pickup or drive-through location must be placed in
5    advance. No in-person or on-site ordering is permitted for
6    a pickup or drive-through location. Dispensing
7    organizations shall confirm that the purchaser, registered
8    qualifying patient, or designated caregiver complies with
9    Section 15-85. For purposes of this paragraph, "close
10    proximity" means an area contiguous to the real property
11    of the dispensary, such as a sidewalk or parking lot;
12        (6) When the dispensary is closed, store all cannabis
13    and currency in a reinforced vault room in the restricted
14    access area and in a manner as to prevent diversion,
15    theft, or loss;
16        (7) Keep the reinforced vault room and any other
17    equipment or cannabis storage areas securely locked and
18    protected from unauthorized entry;
19        (8) Keep an electronic daily log of dispensing
20    organization agents with access to the reinforced vault
21    room and knowledge of the access code or combination;
22        (9) Keep all locks and security equipment in good
23    working order;
24        (10) Maintain an operational security and alarm system
25    at all times;
26        (11) Prohibit keys, if applicable, from being left in

 

 

10300SB1559ham001- 54 -LRB103 29878 BMS 62285 a

1    the locks, or stored or placed in a location accessible to
2    persons other than specifically authorized personnel;
3        (12) Prohibit accessibility of security measures,
4    including combination numbers, passwords, or electronic or
5    biometric security systems to persons other than
6    specifically authorized dispensing organization agents;
7        (13) Ensure that the dispensary interior and exterior
8    premises are sufficiently lit to facilitate surveillance;
9        (14) Ensure that trees, bushes, and other foliage
10    outside of the dispensary premises do not allow for a
11    person or persons to conceal themselves from sight;
12        (15) Develop emergency policies and procedures for
13    securing all product and currency following any instance
14    of diversion, theft, or loss of cannabis, and conduct an
15    assessment to determine whether additional safeguards are
16    necessary; and
17        (16) Develop sufficient additional safeguards in
18    response to any special security concerns, or as required
19    by the Department.
20    (d) The Department may request or approve alternative
21security provisions that it determines are an adequate
22substitute for a security requirement specified in this
23Article. Any additional protections may be considered by the
24Department in evaluating overall security measures.
25    (e) A dispensing organization may share premises with a
26craft grower or an infuser organization, or both, provided

 

 

10300SB1559ham001- 55 -LRB103 29878 BMS 62285 a

1each licensee stores currency and cannabis or cannabis-infused
2products in a separate secured vault to which the other
3licensee does not have access or all licensees sharing a vault
4share more than 50% of the same ownership.
5    (f) A dispensing organization shall provide additional
6security as needed and in a manner appropriate for the
7community where it operates.
8    (g) Restricted access areas.
9        (1) All restricted access areas must be identified by
10    the posting of a sign that is a minimum of 12 inches by 12
11    inches and that states "Do Not Enter - Restricted Access
12    Area - Authorized Personnel Only" in lettering no smaller
13    than one inch in height.
14        (2) All restricted access areas shall be clearly
15    described in the floor plan of the premises, in the form
16    and manner determined by the Department, reflecting walls,
17    partitions, counters, and all areas of entry and exit. The
18    floor plan shall show all storage, disposal, and retail
19    sales areas.
20        (3) All restricted access areas must be secure, with
21    locking devices that prevent access from the limited
22    access areas.
23    (h) Security and alarm.
24        (1) A dispensing organization shall have an adequate
25    security plan and security system to prevent and detect
26    diversion, theft, or loss of cannabis, currency, or

 

 

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1    unauthorized intrusion using commercial grade equipment
2    installed by an Illinois licensed private alarm contractor
3    or private alarm contractor agency that shall, at a
4    minimum, include:
5            (i) A perimeter alarm on all entry points and
6        glass break protection on perimeter windows;
7            (ii) Security shatterproof tinted film on exterior
8        windows;
9            (iii) A failure notification system that provides
10        an audible, text, or visual notification of any
11        failure in the surveillance system, including, but not
12        limited to, panic buttons, alarms, and video
13        monitoring system. The failure notification system
14        shall provide an alert to designated dispensing
15        organization agents within 5 minutes after the
16        failure, either by telephone or text message;
17            (iv) A duress alarm, panic button, and alarm, or
18        holdup alarm and after-hours intrusion detection alarm
19        that by design and purpose will directly or indirectly
20        notify, by the most efficient means, the Public Safety
21        Answering Point for the law enforcement agency having
22        primary jurisdiction;
23            (v) Security equipment to deter and prevent
24        unauthorized entrance into the dispensary, including
25        electronic door locks on the limited and restricted
26        access areas that include devices or a series of

 

 

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1        devices to detect unauthorized intrusion that may
2        include a signal system interconnected with a radio
3        frequency method, cellular, private radio signals or
4        other mechanical or electronic device.
5        (2) All security system equipment and recordings shall
6    be maintained in good working order, in a secure location
7    so as to prevent theft, loss, destruction, or alterations.
8        (3) Access to surveillance monitoring recording
9    equipment shall be limited to persons who are essential to
10    surveillance operations, law enforcement authorities
11    acting within their jurisdiction, security system service
12    personnel, and the Department. A current list of
13    authorized dispensing organization agents and service
14    personnel that have access to the surveillance equipment
15    must be available to the Department upon request.
16        (4) All security equipment shall be inspected and
17    tested at regular intervals, not to exceed one month from
18    the previous inspection, and tested to ensure the systems
19    remain functional.
20        (5) The security system shall provide protection
21    against theft and diversion that is facilitated or hidden
22    by tampering with computers or electronic records.
23        (6) The dispensary shall ensure all access doors are
24    not solely controlled by an electronic access panel to
25    ensure that locks are not released during a power outage.
26    (i) To monitor the dispensary, the dispensing organization

 

 

10300SB1559ham001- 58 -LRB103 29878 BMS 62285 a

1shall incorporate continuous electronic video monitoring
2including the following:
3        (1) All monitors must be 19 inches or greater;
4        (2) Unobstructed video surveillance of all enclosed
5    dispensary areas, unless prohibited by law, including all
6    points of entry and exit that shall be appropriate for the
7    normal lighting conditions of the area under surveillance.
8    The cameras shall be directed so all areas are captured,
9    including, but not limited to, safes, vaults, sales areas,
10    and areas where cannabis is stored, handled, dispensed, or
11    destroyed. Cameras shall be angled to allow for facial
12    recognition, the capture of clear and certain
13    identification of any person entering or exiting the
14    dispensary area and in lighting sufficient during all
15    times of night or day;
16        (3) Unobstructed video surveillance of outside areas,
17    the storefront, and the parking lot, that shall be
18    appropriate for the normal lighting conditions of the area
19    under surveillance. Cameras shall be angled so as to allow
20    for the capture of facial recognition, clear and certain
21    identification of any person entering or exiting the
22    dispensary and the immediate surrounding area, and license
23    plates of vehicles in the parking lot;
24        (4) 24-hour recordings from all video cameras
25    available for immediate viewing by the Department upon
26    request. Recordings shall not be destroyed or altered and

 

 

10300SB1559ham001- 59 -LRB103 29878 BMS 62285 a

1    shall be retained for at least 90 days. Recordings shall
2    be retained as long as necessary if the dispensing
3    organization is aware of the loss or theft of cannabis or a
4    pending criminal, civil, or administrative investigation
5    or legal proceeding for which the recording may contain
6    relevant information;
7        (5) The ability to immediately produce a clear, color
8    still photo from the surveillance video, either live or
9    recorded;
10        (6) A date and time stamp embedded on all video
11    surveillance recordings. The date and time shall be
12    synchronized and set correctly and shall not significantly
13    obscure the picture;
14        (7) The ability to remain operational during a power
15    outage and ensure all access doors are not solely
16    controlled by an electronic access panel to ensure that
17    locks are not released during a power outage;
18        (8) All video surveillance equipment shall allow for
19    the exporting of still images in an industry standard
20    image format, including .jpg, .bmp, and .gif. Exported
21    video shall have the ability to be archived in a
22    proprietary format that ensures authentication of the
23    video and guarantees that no alteration of the recorded
24    image has taken place. Exported video shall also have the
25    ability to be saved in an industry standard file format
26    that can be played on a standard computer operating

 

 

10300SB1559ham001- 60 -LRB103 29878 BMS 62285 a

1    system. All recordings shall be erased or destroyed before
2    disposal;
3        (9) The video surveillance system shall be operational
4    during a power outage with a 4-hour minimum battery
5    backup;
6        (10) A video camera or cameras recording at each
7    point-of-sale location allowing for the identification of
8    the dispensing organization agent distributing the
9    cannabis and any purchaser. The camera or cameras shall
10    capture the sale, the individuals and the computer
11    monitors used for the sale;
12        (11) A failure notification system that provides an
13    audible and visual notification of any failure in the
14    electronic video monitoring system; and
15        (12) All electronic video surveillance monitoring must
16    record at least the equivalent of 8 frames per second and
17    be available as recordings to the Department and the
18    Illinois State Police 24 hours a day via a secure
19    web-based portal with reverse functionality.
20    (j) The requirements contained in this Act are minimum
21requirements for operating a dispensing organization. The
22Department may establish additional requirements by rule.
23(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
24102-538, eff. 8-20-21.)
 
25
Article 4.

 

 

 

10300SB1559ham001- 61 -LRB103 29878 BMS 62285 a

1    Section 4-5. The Compassionate Use of Medical Cannabis
2Program Act is amended by changing Sections 10, 85, 105, 115,
3and 120 and by adding Section 103 as follows:
 
4    (410 ILCS 130/10)
5    Sec. 10. Definitions. The following terms, as used in this
6Act, shall have the meanings set forth in this Section:
7    (a) "Adequate supply" means:
8        (1) 2.5 ounces of usable cannabis during a period of
9    14 days and that is derived solely from an intrastate
10    source.
11        (2) Subject to the rules of the Department of Public
12    Health, a patient may apply for a waiver where a
13    certifying health care professional provides a substantial
14    medical basis in a signed, written statement asserting
15    that, based on the patient's medical history, in the
16    certifying health care professional's professional
17    judgment, 2.5 ounces is an insufficient adequate supply
18    for a 14-day period to properly alleviate the patient's
19    debilitating medical condition or symptoms associated with
20    the debilitating medical condition.
21        (3) This subsection may not be construed to authorize
22    the possession of more than 2.5 ounces at any time without
23    authority from the Department of Public Health.
24        (4) The pre-mixed weight of medical cannabis used in

 

 

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1    making a cannabis infused product shall apply toward the
2    limit on the total amount of medical cannabis a registered
3    qualifying patient may possess at any one time.
4    (a-5) "Advanced practice registered nurse" means a person
5who is licensed under the Nurse Practice Act as an advanced
6practice registered nurse and has a controlled substances
7license under Article III of the Illinois Controlled
8Substances Act.
9    (b) "Cannabis" has the meaning given that term in Section
103 of the Cannabis Control Act.
11    (c) "Cannabis plant monitoring system" means a system that
12includes, but is not limited to, testing and data collection
13established and maintained by the registered cultivation
14center and available to the Department for the purposes of
15documenting each cannabis plant and for monitoring plant
16development throughout the life cycle of a cannabis plant
17cultivated for the intended use by a qualifying patient from
18seed planting to final packaging.
19    (d) "Cardholder" means a qualifying patient or a
20designated caregiver who has been issued and possesses a valid
21registry identification card by the Department of Public
22Health.
23    (d-5) "Certifying health care professional" means a
24physician, an advanced practice registered nurse, or a
25physician assistant.
26    (e) "Cultivation center" means a facility operated by an

 

 

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1organization or business that is registered by the Department
2of Agriculture to perform necessary activities to provide only
3registered medical cannabis dispensing organizations with
4usable medical cannabis.
5    (f) "Cultivation center agent" has the same meaning as
6"cultivation center agent" under the Cannabis Regulation and
7Tax Act means a principal officer, board member, employee, or
8agent of a registered cultivation center who is 21 years of age
9or older and has not been convicted of an excluded offense.
10    (g) "Cultivation center agent identification card" means a
11document issued by the Department of Agriculture that
12identifies a person as a cultivation center agent.
13    (h) "Debilitating medical condition" means one or more of
14the following:
15        (1) cancer, glaucoma, positive status for human
16    immunodeficiency virus, acquired immune deficiency
17    syndrome, hepatitis C, amyotrophic lateral sclerosis,
18    Crohn's disease (including, but not limited to, ulcerative
19    colitis), agitation of Alzheimer's disease,
20    cachexia/wasting syndrome, muscular dystrophy, severe
21    fibromyalgia, spinal cord disease, including but not
22    limited to arachnoiditis, Tarlov cysts, hydromyelia,
23    syringomyelia, Rheumatoid arthritis, fibrous dysplasia,
24    spinal cord injury, traumatic brain injury and
25    post-concussion syndrome, Multiple Sclerosis,
26    Arnold-Chiari malformation and Syringomyelia,

 

 

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1    Spinocerebellar Ataxia (SCA), Parkinson's, Tourette's,
2    Myoclonus, Dystonia, Reflex Sympathetic Dystrophy, RSD
3    (Complex Regional Pain Syndromes Type I), Causalgia, CRPS
4    (Complex Regional Pain Syndromes Type II),
5    Neurofibromatosis, Chronic Inflammatory Demyelinating
6    Polyneuropathy, Sjogren's syndrome, Lupus, Interstitial
7    Cystitis, Myasthenia Gravis, Hydrocephalus, nail-patella
8    syndrome, residual limb pain, seizures (including those
9    characteristic of epilepsy), post-traumatic stress
10    disorder (PTSD), autism, chronic pain, irritable bowel
11    syndrome, migraines, osteoarthritis, anorexia nervosa,
12    Ehlers-Danlos Syndrome, Neuro-Behcet's Autoimmune
13    Disease, neuropathy, polycystic kidney disease, superior
14    canal dehiscence syndrome, or the treatment of these
15    conditions;
16        (1.5) terminal illness with a diagnosis of 6 months or
17    less; if the terminal illness is not one of the qualifying
18    debilitating medical conditions, then the certifying
19    health care professional shall on the certification form
20    identify the cause of the terminal illness; or
21        (2) any other debilitating medical condition or its
22    treatment that is added by the Department of Public Health
23    by rule as provided in Section 45.
24    (i) "Designated caregiver" means a person who: (1) is at
25least 21 years of age; (2) has agreed to assist with a
26patient's medical use of cannabis; (3) has not been convicted

 

 

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1of an excluded offense; and (4) assists no more than one
2registered qualifying patient with his or her medical use of
3cannabis.
4    (j) "Dispensing organization agent identification card"
5has the same meaning as "dispensing organization agent
6identification card" under the Cannabis Regulation and Tax Act
7means a document issued by the Department of Financial and
8Professional Regulation that identifies a person as a medical
9cannabis dispensing organization agent.
10    (k) "Enclosed, locked facility" means a room, greenhouse,
11building, or other enclosed area equipped with locks or other
12security devices that permit access only by a cultivation
13center's agents or a dispensing organization's agent working
14for the registered cultivation center or the registered
15dispensing organization to cultivate, store, and distribute
16cannabis for registered qualifying patients.
17    (l) (Blank). "Excluded offense" for cultivation center
18agents and dispensing organizations means:
19        (1) a violent crime defined in Section 3 of the Rights
20    of Crime Victims and Witnesses Act or a substantially
21    similar offense that was classified as a felony in the
22    jurisdiction where the person was convicted; or
23        (2) a violation of a state or federal controlled
24    substance law, the Cannabis Control Act, or the
25    Methamphetamine Control and Community Protection Act that
26    was classified as a felony in the jurisdiction where the

 

 

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1    person was convicted, except that the registering
2    Department may waive this restriction if the person
3    demonstrates to the registering Department's satisfaction
4    that his or her conviction was for the possession,
5    cultivation, transfer, or delivery of a reasonable amount
6    of cannabis intended for medical use. This exception does
7    not apply if the conviction was under state law and
8    involved a violation of an existing medical cannabis law.
9    For purposes of this subsection, the Department of Public
10Health shall determine by emergency rule within 30 days after
11the effective date of this amendatory Act of the 99th General
12Assembly what constitutes a "reasonable amount".
13    (l-5) (Blank).
14    (l-10) "Illinois Cannabis Tracking System" means a
15web-based system established and maintained by the Department
16of Public Health that is available to the Department of
17Agriculture, the Department of Financial and Professional
18Regulation, the Illinois State Police, and registered medical
19cannabis dispensing organizations on a 24-hour basis to upload
20written certifications for Opioid Alternative Pilot Program
21participants, to verify Opioid Alternative Pilot Program
22participants, to verify Opioid Alternative Pilot Program
23participants' available cannabis allotment and assigned
24dispensary, and the tracking of the date of sale, amount, and
25price of medical cannabis purchased by an Opioid Alternative
26Pilot Program participant.

 

 

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1    (m) "Medical cannabis cultivation center registration"
2means a registration issued by the Department of Agriculture.
3    (n) "Medical cannabis container" means a sealed,
4traceable, food compliant, tamper resistant, tamper evident
5container, or package used for the purpose of containment of
6medical cannabis from a cultivation center to a dispensing
7organization.
8    (o) "Medical cannabis dispensing organization", or
9"dispensing organization", or "dispensary organization" means
10a facility operated by an organization or business that is
11registered by the Department of Financial and Professional
12Regulation to acquire medical cannabis from a registered
13cultivation center for the purpose of dispensing cannabis,
14paraphernalia, or related supplies and educational materials
15to registered qualifying patients, individuals with a
16provisional registration for qualifying patient cardholder
17status, or an Opioid Alternative Pilot Program participant.
18    (p) "Dispensing Medical cannabis dispensing organization
19agent" or "dispensing organization agent" has the same meaning
20as "dispensing organization agent" under the Cannabis
21Regulation and Tax Act means a principal officer, board
22member, employee, or agent of a registered medical cannabis
23dispensing organization who is 21 years of age or older and has
24not been convicted of an excluded offense.
25    (q) "Medical cannabis infused product" means food, oils,
26ointments, or other products containing usable cannabis that

 

 

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1are not smoked.
2    (r) "Medical use" means the acquisition; administration;
3delivery; possession; transfer; transportation; or use of
4cannabis to treat or alleviate a registered qualifying
5patient's debilitating medical condition or symptoms
6associated with the patient's debilitating medical condition.
7    (r-5) "Opioid" means a narcotic drug or substance that is
8a Schedule II controlled substance under paragraph (1), (2),
9(3), or (5) of subsection (b) or under subsection (c) of
10Section 206 of the Illinois Controlled Substances Act.
11    (r-10) "Opioid Alternative Pilot Program participant"
12means an individual who has received a valid written
13certification to participate in the Opioid Alternative Pilot
14Program for a medical condition for which an opioid has been or
15could be prescribed by a certifying health care professional
16based on generally accepted standards of care.
17    (s) "Physician" means a doctor of medicine or doctor of
18osteopathy licensed under the Medical Practice Act of 1987 to
19practice medicine and who has a controlled substances license
20under Article III of the Illinois Controlled Substances Act.
21It does not include a licensed practitioner under any other
22Act including but not limited to the Illinois Dental Practice
23Act.
24    (s-1) "Physician assistant" means a physician assistant
25licensed under the Physician Assistant Practice Act of 1987
26and who has a controlled substances license under Article III

 

 

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1of the Illinois Controlled Substances Act.
2    (s-5) "Provisional registration" means a document issued
3by the Department of Public Health to a qualifying patient who
4has submitted: (1) an online application and paid a fee to
5participate in Compassionate Use of Medical Cannabis Program
6pending approval or denial of the patient's application; or
7(2) a completed application for terminal illness.
8    (t) "Qualifying patient" means a person who has been
9diagnosed by a certifying health care professional as having a
10debilitating medical condition.
11    (u) "Registered" means licensed, permitted, or otherwise
12certified by the Department of Agriculture, Department of
13Public Health, or Department of Financial and Professional
14Regulation.
15    (v) "Registry identification card" means a document issued
16by the Department of Public Health that identifies a person as
17a registered qualifying patient or registered designated
18caregiver.
19    (w) "Usable cannabis" means the seeds, leaves, buds, and
20flowers of the cannabis plant and any mixture or preparation
21thereof, but does not include the stalks, and roots of the
22plant. It does not include the weight of any non-cannabis
23ingredients combined with cannabis, such as ingredients added
24to prepare a topical administration, food, or drink.
25    (x) "Verification system" means a Web-based system
26established and maintained by the Department of Public Health

 

 

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1that is available to the Department of Agriculture, the
2Department of Financial and Professional Regulation, law
3enforcement personnel, and registered medical cannabis
4dispensing organization agents on a 24-hour basis for the
5verification of registry identification cards, the tracking of
6delivery of medical cannabis to medical cannabis dispensing
7organizations, and the tracking of the date of sale, amount,
8and price of medical cannabis purchased by a registered
9qualifying patient.
10    (y) "Written certification" means a document dated and
11signed by a certifying health care professional, stating (1)
12that the qualifying patient has a debilitating medical
13condition and specifying the debilitating medical condition
14the qualifying patient has; and (2) that (A) the certifying
15health care professional is treating or managing treatment of
16the patient's debilitating medical condition; or (B) an Opioid
17Alternative Pilot Program participant has a medical condition
18for which opioids have been or could be prescribed. A written
19certification shall be made only in the course of a bona fide
20health care professional-patient relationship, after the
21certifying health care professional has completed an
22assessment of either a qualifying patient's medical history or
23Opioid Alternative Pilot Program participant, reviewed
24relevant records related to the patient's debilitating
25condition, and conducted a physical examination.
26    (z) "Bona fide health care professional-patient

 

 

10300SB1559ham001- 71 -LRB103 29878 BMS 62285 a

1relationship" means a relationship established at a hospital,
2certifying health care professional's office, or other health
3care facility in which the certifying health care professional
4has an ongoing responsibility for the assessment, care, and
5treatment of a patient's debilitating medical condition or a
6symptom of the patient's debilitating medical condition.
7    A veteran who has received treatment at a VA hospital
8shall be deemed to have a bona fide health care
9professional-patient relationship with a VA certifying health
10care professional if the patient has been seen for his or her
11debilitating medical condition at the VA Hospital in
12accordance with VA Hospital protocols.
13    A bona fide health care professional-patient relationship
14under this subsection is a privileged communication within the
15meaning of Section 8-802 of the Code of Civil Procedure.
16(Source: P.A. 100-1114, eff. 8-28-18; 101-363, eff. 8-9-19.)
 
17    (410 ILCS 130/85)
18    Sec. 85. Issuance and denial of medical cannabis
19cultivation permit.
20    (a) The Department of Agriculture may register up to 22
21cultivation center registrations for operation. The Department
22of Agriculture may not issue more than one registration per
23each Illinois State Police District boundary as specified on
24the date of January 1, 2013. The Department of Agriculture may
25not issue less than the 22 registrations if there are

 

 

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1qualified applicants who have applied with the Department.
2    (b) The registrations shall be issued and renewed annually
3as determined by administrative rule.
4    (c) The Department of Agriculture shall determine a
5registration fee by rule.
6    (d) A cultivation center may only operate if it has been
7issued a valid registration from the Department of
8Agriculture. When applying for a cultivation center
9registration, the applicant shall submit the following in
10accordance with Department of Agriculture rules:
11        (1) the proposed legal name of the cultivation center;
12        (2) the proposed physical address of the cultivation
13    center and description of the enclosed, locked facility as
14    it applies to cultivation centers where medical cannabis
15    will be grown, harvested, manufactured, packaged, or
16    otherwise prepared for distribution to a dispensing
17    organization;
18        (3) the name, address, and date of birth of each
19    principal officer and board member of the cultivation
20    center, provided that all those individuals shall be at
21    least 21 years of age;
22        (4) any instance in which a business that any of the
23    prospective board members of the cultivation center had
24    managed or served on the board of the business and was
25    convicted, fined, censured, or had a registration or
26    license suspended or revoked in any administrative or

 

 

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1    judicial proceeding;
2        (5) cultivation, inventory, and packaging plans;
3        (6) proposed operating by-laws that include procedures
4    for the oversight of the cultivation center, development
5    and implementation of a plant monitoring system, medical
6    cannabis container tracking system, accurate record
7    keeping, staffing plan, and security plan reviewed by the
8    Illinois State Police that are in accordance with the
9    rules issued by the Department of Agriculture under this
10    Act. A physical inventory shall be performed of all plants
11    and medical cannabis containers on a weekly basis;
12        (7) experience with agricultural cultivation
13    techniques and industry standards;
14        (8) any academic degrees, certifications, or relevant
15    experience with related businesses;
16        (9) the identity of every person, association, trust,
17    or corporation having any direct or indirect pecuniary
18    interest in the cultivation center operation with respect
19    to which the registration is sought. If the disclosed
20    entity is a trust, the application shall disclose the
21    names and addresses of the beneficiaries; if a
22    corporation, the names and addresses of all stockholders
23    and directors; if a partnership, the names and addresses
24    of all partners, both general and limited;
25        (10) verification from the Illinois State Police that
26    all background checks of the principal officer, board

 

 

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1    members, and registered agents have been conducted and
2    those individuals have not been convicted of an excluded
3    offense;
4        (11) provide a copy of the current local zoning
5    ordinance to the Department of Agriculture and verify that
6    proposed cultivation center is in compliance with the
7    local zoning rules issued in accordance with Section 140;
8        (12) an application fee set by the Department of
9    Agriculture by rule; and
10        (13) any other information required by Department of
11    Agriculture rules, including, but not limited to a
12    cultivation center applicant's experience with the
13    cultivation of agricultural or horticultural products,
14    operating an agriculturally related business, or operating
15    a horticultural business.
16    (e) An application for a cultivation center permit must be
17denied if any of the following conditions are met:
18        (1) the applicant failed to submit the materials
19    required by this Section, including if the applicant's
20    plans do not satisfy the security, oversight, inventory,
21    or recordkeeping rules issued by the Department of
22    Agriculture;
23        (2) the applicant would not be in compliance with
24    local zoning rules issued in accordance with Section 140;
25        (3) (blank) one or more of the prospective principal
26    officers or board members has been convicted of an

 

 

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1    excluded offense;
2        (4) one or more of the prospective principal officers
3    or board members has served as a principal officer or
4    board member for a registered dispensing organization or
5    cultivation center that has had its registration revoked;
6        (5) one or more of the principal officers or board
7    members is under 21 years of age;
8        (6) (blank) a principal officer or board member of the
9    cultivation center has been convicted of a felony under
10    the laws of this State, any other state, or the United
11    States;
12        (7) (blank) a principal officer or board member of the
13    cultivation center has been convicted of any violation of
14    Article 28 of the Criminal Code of 2012, or substantially
15    similar laws of any other jurisdiction; or
16        (8) the person has submitted an application for a
17    certificate under this Act which contains false
18    information.
19(Source: P.A. 102-538, eff. 8-20-21.)
 
20    (410 ILCS 130/103 new)
21    Sec. 103. Cultivation center agent identification cards
22and dispensing organization agent identification cards.
23    (a) The Department of Agriculture shall follow the
24requirements set forth in Section 20-35 of the Cannabis
25Regulation and Tax Act regarding the issuance and

 

 

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1administration of cultivation center agent identification
2cards under this Act.
3    (b) The Department of Financial and Professional
4Regulation shall follow the requirements set forth in Section
515-40 of the Cannabis Regulation and Tax Act regarding the
6issuance and administration of dispensing organization agent
7identification cards under this Act.
 
8    (410 ILCS 130/105)
9    Sec. 105. Requirements; prohibitions; penalties for
10cultivation centers.
11    (a) The operating documents of a registered cultivation
12center shall include procedures for the oversight of the
13cultivation center, a cannabis plant monitoring system
14including a physical inventory recorded weekly, a cannabis
15container system including a physical inventory recorded
16weekly, accurate record keeping, and a staffing plan.
17    (b) A registered cultivation center shall implement a
18security plan reviewed by the Illinois State Police and
19including but not limited to: facility access controls,
20perimeter intrusion detection systems, personnel
21identification systems, 24-hour surveillance system to monitor
22the interior and exterior of the registered cultivation center
23facility and accessible to authorized law enforcement and the
24Department of Agriculture in real-time.
25    (c) A registered cultivation center may not be located

 

 

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1within 2,500 feet of the property line of a pre-existing
2public or private preschool or elementary or secondary school
3or day care center, day care home, group day care home, part
4day child care facility, or an area zoned for residential use.
5    (d) All cultivation of cannabis for distribution to a
6registered dispensing organization must take place in an
7enclosed, locked facility as it applies to cultivation centers
8at the physical address provided to the Department of
9Agriculture during the registration process. The cultivation
10center location shall only be accessed by the cultivation
11center agents working for the registered cultivation center,
12Department of Agriculture staff performing inspections,
13Department of Public Health staff performing inspections, law
14enforcement or other emergency personnel, and contractors
15working on jobs unrelated to medical cannabis, such as
16installing or maintaining security devices or performing
17electrical wiring.
18    (e) A cultivation center may not sell or distribute any
19cannabis to any individual or entity other than another
20cultivation center, a dispensing organization registered under
21this Act, or a laboratory licensed by the Department of
22Agriculture.
23    (f) All harvested cannabis intended for distribution to a
24dispensing organization must be packaged in a labeled medical
25cannabis container and entered into a data collection system.
26    (g) (Blank). No person who has been convicted of an

 

 

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1excluded offense may be a cultivation center agent.
2    (h) Registered cultivation centers are subject to random
3inspection by the Illinois State Police.
4    (i) Registered cultivation centers are subject to random
5inspections by the Department of Agriculture and the
6Department of Public Health.
7    (j) A cultivation center agent shall notify local law
8enforcement, the Illinois State Police, and the Department of
9Agriculture within 24 hours of the discovery of any loss or
10theft. Notification shall be made by phone or in-person, or by
11written or electronic communication.
12    (k) A cultivation center shall comply with all State and
13federal rules and regulations regarding the use of pesticides.
14(Source: P.A. 101-363, eff. 8-9-19; 102-538, eff. 8-20-21.)
 
15    (410 ILCS 130/115)
16    Sec. 115. Registration of dispensing organizations.
17    (a) The Department of Financial and Professional
18Regulation may issue up to 60 dispensing organization
19registrations for operation. The Department of Financial and
20Professional Regulation may not issue less than the 60
21registrations if there are qualified applicants who have
22applied with the Department of Financial and Professional
23Regulation. The organizations shall be geographically
24dispersed throughout the State to allow all registered
25qualifying patients reasonable proximity and access to a

 

 

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1dispensing organization.
2    (a-5) The Department of Financial and Professional
3Regulation shall adopt rules to create a registration process
4for Social Equity Justice Involved Applicants and Qualifying
5Applicants, a streamlined application, and a Social Equity
6Justice Involved Medical Lottery under Section 115.5 to issue
7the remaining available 5 dispensing organization
8registrations for operation. For purposes of this Section:
9    "Disproportionately Impacted Area" means a census tract or
10comparable geographic area that satisfies the following
11criteria as determined by the Department of Commerce and
12Economic Opportunity, that:
13        (1) meets at least one of the following criteria:
14            (A) the area has a poverty rate of at least 20%
15        according to the latest federal decennial census; or
16            (B) 75% or more of the children in the area
17        participate in the federal free lunch program
18        according to reported statistics from the State Board
19        of Education; or
20            (C) at least 20% of the households in the area
21        receive assistance under the Supplemental Nutrition
22        Assistance Program; or
23            (D) the area has an average unemployment rate, as
24        determined by the Illinois Department of Employment
25        Security, that is more than 120% of the national
26        unemployment average, as determined by the United

 

 

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1        States Department of Labor, for a period of at least 2
2        consecutive calendar years preceding the date of the
3        application; and
4        (2) has high rates of arrest, conviction, and
5    incarceration related to sale, possession, use,
6    cultivation, manufacture, or transport of cannabis.
7    "Qualifying Applicant" means an applicant that: (i)
8submitted an application pursuant to Section 15-30 of the
9Cannabis Regulation and Tax Act that received at least 85% of
10250 application points available under Section 15-30 of the
11Cannabis Regulation and Tax Act as the applicant's final
12score; (ii) received points at the conclusion of the scoring
13process for meeting the definition of a "Social Equity
14Applicant" as set forth under the Cannabis Regulation and Tax
15Act; and (iii) is an applicant that did not receive a
16Conditional Adult Use Dispensing Organization License through
17a Qualifying Applicant Lottery pursuant to Section 15-35 of
18the Cannabis Regulation and Tax Act or any Tied Applicant
19Lottery conducted under the Cannabis Regulation and Tax Act.
20    "Social Equity Justice Involved Applicant" means an
21applicant that is an Illinois resident and one of the
22following:
23        (1) an applicant with at least 51% ownership and
24    control by one or more individuals who have resided for at
25    least 5 of the preceding 10 years in a Disproportionately
26    Impacted Area;

 

 

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1        (2) an applicant with at least 51% of ownership and
2    control by one or more individuals who have been arrested
3    for, convicted of, or adjudicated delinquent for any
4    offense that is eligible for expungement under subsection
5    (i) of Section 5.2 of the Criminal Identification Act; or
6        (3) an applicant with at least 51% ownership and
7    control by one or more members of an impacted family.
8    (b) A dispensing organization may only operate if it has
9been issued a registration from the Department of Financial
10and Professional Regulation. The Department of Financial and
11Professional Regulation shall adopt rules establishing the
12procedures for applicants for dispensing organizations.
13    (c) When applying for a dispensing organization
14registration, the applicant shall submit, at a minimum, the
15following in accordance with Department of Financial and
16Professional Regulation rules:
17        (1) a non-refundable application fee established by
18    rule;
19        (2) the proposed legal name of the dispensing
20    organization;
21        (3) the proposed physical address of the dispensing
22    organization;
23        (4) the name, address, and date of birth of each
24    principal officer and board member of the dispensing
25    organization, provided that all those individuals shall be
26    at least 21 years of age;

 

 

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1        (5) (blank);
2        (6) (blank); and
3        (7) (blank).
4    (d) The Department of Financial and Professional
5Regulation shall conduct a background check of the prospective
6dispensing organization agents in order to carry out this
7Section. The Department of State Police shall charge a fee for
8conducting the criminal history record check, which shall be
9deposited in the State Police Services Fund and shall not
10exceed the actual cost of the record check. Each person
11applying as a dispensing organization agent shall submit a
12full set of fingerprints to the Department of State Police for
13the purpose of obtaining a State and federal criminal records
14check. These fingerprints shall be checked against the
15fingerprint records now and hereafter, to the extent allowed
16by law, filed in the Department of State Police and Federal
17Bureau of Investigation criminal history records databases.
18The Department of State Police shall furnish, following
19positive identification, all Illinois conviction information
20to the Department of Financial and Professional Regulation.
21    (e) A dispensing organization must pay a registration fee
22set by the Department of Financial and Professional
23Regulation.
24    (f) An application for a medical cannabis dispensing
25organization registration must be denied if any of the
26following conditions are met:

 

 

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1        (1) the applicant failed to submit the materials
2    required by this Section, including if the applicant's
3    plans do not satisfy the security, oversight, or
4    recordkeeping rules issued by the Department of Financial
5    and Professional Regulation;
6        (2) the applicant would not be in compliance with
7    local zoning rules issued in accordance with Section 140;
8        (3) the applicant does not meet the requirements of
9    Section 130;
10        (4) (blank); one or more of the prospective principal
11    officers or board members has been convicted of an
12    excluded offense;
13        (5) one or more of the prospective principal officers
14    or board members has served as a principal officer or
15    board member for a registered medical cannabis dispensing
16    organization that has had its registration revoked; and
17        (6) one or more of the principal officers or board
18    members is under 21 years of age.
19(Source: P.A. 101-363, eff. 8-9-19; 102-98, eff. 7-15-21.)
 
20    (410 ILCS 130/120)
21    Sec. 120. Dispensing organization agent identification
22card.
23    (a) The Department of Financial and Professional
24Regulation shall:
25        (1) verify the information contained in an application

 

 

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1    or renewal for a dispensing organization agent
2    identification card submitted under this Act, and approve
3    or deny an application or renewal, within 30 days of
4    receiving a completed application or renewal application
5    and all supporting documentation required by rule;
6        (2) issue a dispensing organization agent
7    identification card to a qualifying agent within 15
8    business days of approving the application or renewal;
9        (3) enter the registry identification number of the
10    dispensing organization where the agent works; and
11        (4) allow for an electronic application process, and
12    provide a confirmation by electronic or other methods that
13    an application has been submitted.
14    (b) A dispensing agent must keep his or her identification
15card visible at all times when on the property of a dispensing
16organization.
17    (c) The dispensing organization agent identification cards
18shall contain the following:
19        (1) the name of the cardholder;
20        (2) the date of issuance and expiration date of the
21    dispensing organization agent identification cards;
22        (3) a random 10 digit alphanumeric identification
23    number containing at least 4 numbers and at least 4
24    letters; that is unique to the holder; and
25        (4) a photograph of the cardholder.
26    (d) The dispensing organization agent identification cards

 

 

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1shall be immediately returned to the dispensing organization
2upon termination of employment.
3    (e) Any card lost by a dispensing organization agent shall
4be reported to the Illinois State Police and the Department of
5Financial and Professional Regulation immediately upon
6discovery of the loss.
7    (f) (Blank). An applicant shall be denied a dispensing
8organization agent identification card if he or she has been
9convicted of an excluded offense.
10(Source: P.A. 98-122, eff. 1-1-14; 98-1172, eff. 1-12-15.)
 
11    (410 ILCS 130/100 rep.)
12    Section 4-10. The Compassionate Use of Medical Cannabis
13Program Act is amended by repealing Section 100.
 
14    Section 4-15. The Cannabis Regulation and Tax Act is
15amended by changing Section 15-40 as follows:
 
16    (410 ILCS 705/15-40)
17    Sec. 15-40. Dispensing organization agent identification
18card; agent training.
19    (a) The Department shall:
20        (1) verify the information contained in an application
21    or renewal for a dispensing organization agent
22    identification card submitted under this Article, and
23    approve or deny an application or renewal, within 30 days

 

 

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1    of receiving a completed application or renewal
2    application and all supporting documentation required by
3    rule;
4        (2) issue a dispensing organization agent
5    identification card to a qualifying agent within 15
6    business days of approving the application or renewal;
7        (3) enter the registry identification number of the
8    dispensing organization where the agent works;
9        (4) within one year from the effective date of this
10    Act, allow for an electronic application process and
11    provide a confirmation by electronic or other methods that
12    an application has been submitted; and
13        (5) collect a $100 nonrefundable fee from the
14    applicant to be deposited into the Cannabis Regulation
15    Fund.
16    (b) A dispensing organization agent must keep his or her
17identification card visible at all times when in the
18dispensary.
19    (c) The dispensing organization agent identification cards
20shall contain the following:
21        (1) the name of the cardholder;
22        (2) the date of issuance and expiration date of the
23    dispensing organization agent identification cards;
24        (3) a random 10-digit alphanumeric identification
25    number containing at least 4 numbers and at least 4
26    letters that is unique to the cardholder; and

 

 

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1        (4) a photograph of the cardholder.
2    (d) The dispensing organization agent identification cards
3shall be immediately returned to the dispensing organization
4upon termination of employment.
5    (e) The Department shall not issue an agent identification
6card if the applicant is delinquent in filing any required tax
7returns or paying any amounts owed to the State of Illinois.
8    (f) Any card lost by a dispensing organization agent shall
9be reported to the Illinois State Police and the Department
10immediately upon discovery of the loss.
11    (g) An applicant shall be denied a dispensing organization
12agent identification card renewal if he or she fails to
13complete the training provided for in this Section.
14    (h) A dispensing organization agent shall only be required
15to hold one card for the same employer regardless of what type
16of dispensing organization license the employer holds.
17    (i) Cannabis retail sales training requirements.
18        (1) Within 90 days of September 1, 2019, or 90 days of
19    employment, whichever is later, all owners, managers,
20    employees, and agents involved in the handling or sale of
21    cannabis or cannabis-infused product employed by an adult
22    use dispensing organization or medical cannabis dispensing
23    organization as defined in Section 10 of the Compassionate
24    Use of Medical Cannabis Program Act shall attend and
25    successfully complete a Responsible Vendor Program.
26        (2) Each owner, manager, employee, and agent of an

 

 

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1    adult use dispensing organization or medical cannabis
2    dispensing organization shall successfully complete the
3    program annually.
4        (3) Responsible Vendor Program Training modules shall
5    include at least 2 hours of instruction time approved by
6    the Department including:
7            (i) Health and safety concerns of cannabis use,
8        including the responsible use of cannabis, its
9        physical effects, onset of physiological effects,
10        recognizing signs of impairment, and appropriate
11        responses in the event of overconsumption.
12            (ii) Training on laws and regulations on driving
13        while under the influence and operating a watercraft
14        or snowmobile while under the influence.
15            (iii) Sales to minors prohibition. Training shall
16        cover all relevant Illinois laws and rules.
17            (iv) Quantity limitations on sales to purchasers.
18        Training shall cover all relevant Illinois laws and
19        rules.
20            (v) Acceptable forms of identification. Training
21        shall include:
22                (I) How to check identification; and
23                (II) Common mistakes made in verification;
24            (vi) Safe storage of cannabis;
25            (vii) Compliance with all inventory tracking
26        system regulations;

 

 

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1            (viii) Waste handling, management, and disposal;
2            (ix) Health and safety standards;
3            (x) Maintenance of records;
4            (xi) Security and surveillance requirements;
5            (xii) Permitting inspections by State and local
6        licensing and enforcement authorities;
7            (xiii) Privacy issues;
8            (xiv) Packaging and labeling requirement for sales
9        to purchasers; and
10            (xv) Other areas as determined by rule.
11    (j) Blank.
12    (k) Upon the successful completion of the Responsible
13Vendor Program, the provider shall deliver proof of completion
14either through mail or electronic communication to the
15dispensing organization, which shall retain a copy of the
16certificate.
17    (l) The license of a dispensing organization or medical
18cannabis dispensing organization whose owners, managers,
19employees, or agents fail to comply with this Section may be
20suspended or permanently revoked under Section 15-145 or may
21face other disciplinary action.
22    (m) The regulation of dispensing organization and medical
23cannabis dispensing employer and employee training is an
24exclusive function of the State, and regulation by a unit of
25local government, including a home rule unit, is prohibited.
26This subsection (m) is a denial and limitation of home rule

 

 

10300SB1559ham001- 90 -LRB103 29878 BMS 62285 a

1powers and functions under subsection (h) of Section 6 of
2Article VII of the Illinois Constitution.
3    (n) Persons seeking Department approval to offer the
4training required by paragraph (3) of subsection (i) may apply
5for such approval between August 1 and August 15 of each
6odd-numbered year in a manner prescribed by the Department.
7    (o) Persons seeking Department approval to offer the
8training required by paragraph (3) of subsection (i) shall
9submit a nonrefundable application fee of $2,000 to be
10deposited into the Cannabis Regulation Fund or a fee as may be
11set by rule. Any changes made to the training module shall be
12approved by the Department.
13    (p) The Department shall not unreasonably deny approval of
14a training module that meets all the requirements of paragraph
15(3) of subsection (i). A denial of approval shall include a
16detailed description of the reasons for the denial.
17    (q) Any person approved to provide the training required
18by paragraph (3) of subsection (i) shall submit an application
19for re-approval between August 1 and August 15 of each
20odd-numbered year and include a nonrefundable application fee
21of $2,000 to be deposited into the Cannabis Regulation Fund or
22a fee as may be set by rule.
23    (r) All persons applying to become or renewing their
24registrations to be agents, including agents-in-charge and
25principal officers, shall disclose any disciplinary action
26taken against them that may have occurred in Illinois, another

 

 

10300SB1559ham001- 91 -LRB103 29878 BMS 62285 a

1state, or another country in relation to their employment at a
2cannabis business establishment or at any cannabis cultivation
3center, processor, infuser, dispensary, or other cannabis
4business establishment.
5    (s) An agent applicant may begin employment at a
6dispensing organization while the agent applicant's
7identification card application is pending. Upon approval, the
8Department shall issue the agent's identification card to the
9agent. If denied, the dispensing organization and the agent
10applicant shall be notified and the agent applicant must cease
11all activity at the dispensing organization immediately.
12    (t) All notifications of acceptance or denial for
13applications under this Section shall be sent electronically
14to the agent applicant within 30 days after the submission of a
15completed application.
16(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
17102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
185-13-22.)
 
19
Article 5.

 
20    Section 5-5. The Compassionate Use of Medical Cannabis
21Program Act is amended by changing Section 35 as follows:
 
22    (410 ILCS 130/35)
23    Sec. 35. Certifying health care professional requirements.

 

 

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1    (a) A certifying health care professional who certifies a
2debilitating medical condition for a qualifying patient shall
3comply with all of the following requirements:
4        (1) The certifying health care professional shall be
5    currently licensed under the Medical Practice Act of 1987
6    to practice medicine in all its branches, the Nurse
7    Practice Act, or the Physician Assistant Practice Act of
8    1987, shall be in good standing, and must hold a
9    controlled substances license under Article III of the
10    Illinois Controlled Substances Act.
11        (2) A certifying health care professional certifying a
12    patient's condition shall comply with generally accepted
13    standards of medical practice, the provisions of the Act
14    under which he or she is licensed and all applicable
15    rules.
16        (3) The physical examination required by this Act may
17    not be performed by remote means, including telemedicine.
18        (4) The certifying health care professional shall
19    maintain a record-keeping system for all patients for whom
20    the certifying health care professional has certified the
21    patient's medical condition. These records shall be
22    accessible to and subject to review by the Department of
23    Public Health and the Department of Financial and
24    Professional Regulation upon request.
25    (b) A certifying health care professional may not:
26        (1) accept, solicit, or offer any form of remuneration

 

 

10300SB1559ham001- 93 -LRB103 29878 BMS 62285 a

1    from or to a qualifying patient, primary caregiver,
2    cultivation center, or dispensing organization, including
3    each principal officer, board member, agent, and employee,
4    to certify a patient, other than accepting payment from a
5    patient for the fee associated with the required
6    examination, except for the limited purpose of performing
7    a medical cannabis-related research study;
8        (1.5) accept, solicit, or offer any form of
9    remuneration from or to a medical cannabis cultivation
10    center or dispensary organization for the purposes of
11    referring a patient to a specific dispensary organization;
12        (1.10) engage in any activity that is prohibited under
13    Section 22.2 of the Medical Practice Act of 1987,
14    regardless of whether the certifying health care
15    professional is a physician, advanced practice registered
16    nurse, or physician assistant;
17        (2) offer a discount of any other item of value to a
18    qualifying patient who uses or agrees to use a particular
19    primary caregiver or dispensing organization to obtain
20    medical cannabis;
21        (3) conduct a personal physical examination of a
22    patient for purposes of diagnosing a debilitating medical
23    condition at a location where medical cannabis is sold or
24    distributed or at the address of a principal officer,
25    agent, or employee or a medical cannabis organization;
26        (4) hold a direct or indirect economic interest in a

 

 

10300SB1559ham001- 94 -LRB103 29878 BMS 62285 a

1    cultivation center or dispensing organization if he or she
2    recommends the use of medical cannabis to qualified
3    patients or is in a partnership or other fee or
4    profit-sharing relationship with a certifying health care
5    professional who recommends medical cannabis, except for
6    the limited purpose of performing a medical
7    cannabis-related research study;
8        (5) serve on the board of directors or as an employee
9    of a cultivation center or dispensing organization;
10        (6) refer patients to a cultivation center, a
11    dispensing organization, or a registered designated
12    caregiver; or
13        (7) advertise in a cultivation center or a dispensing
14    organization.
15    (c) The Department of Public Health may with reasonable
16cause refer a certifying health care professional, who has
17certified a debilitating medical condition of a patient, to
18the Illinois Department of Financial and Professional
19Regulation for potential violations of this Section.
20    (d) Any violation of this Section or any other provision
21of this Act or rules adopted under this Act is a violation of
22the certifying health care professional's licensure act.
23    (e) A certifying health care professional who certifies a
24debilitating medical condition for a qualifying patient may
25notify the Department of Public Health in writing: (1) if the
26certifying health care professional has reason to believe

 

 

10300SB1559ham001- 95 -LRB103 29878 BMS 62285 a

1either that the registered qualifying patient has ceased to
2suffer from a debilitating medical condition; (2) that the
3bona fide health care professional-patient relationship has
4terminated; or (3) that continued use of medical cannabis
5would result in contraindication with the patient's other
6medication. The registered qualifying patient's registry
7identification card shall be revoked by the Department of
8Public Health after receiving the certifying health care
9professional's notification.
10    (f) Nothing in this Act shall preclude a certifying health
11care professional from referring a patient for health
12services, except when the referral is limited to certification
13purposes only, under this Act.
14(Source: P.A. 101-363, eff. 8-9-19; 102-558, eff. 8-20-21.)
 
15
Article 6.

 
16    Section 6-5. The Cannabis Regulation and Tax Act is
17amended by changing Sections 1-10 and 50-5 as follows:
 
18    (410 ILCS 705/1-10)
19    Sec. 1-10. Definitions. In this Act:
20    "Adult Use Cultivation Center License" means a license
21issued by the Department of Agriculture that permits a person
22to act as a cultivation center under this Act and any
23administrative rule made in furtherance of this Act.

 

 

10300SB1559ham001- 96 -LRB103 29878 BMS 62285 a

1    "Adult Use Dispensing Organization License" means a
2license issued by the Department of Financial and Professional
3Regulation that permits a person to act as a dispensing
4organization under this Act and any administrative rule made
5in furtherance of this Act.
6    "Advertise" means to engage in promotional activities
7including, but not limited to: newspaper, radio, Internet and
8electronic media, and television advertising; the distribution
9of fliers and circulars; billboard advertising; and the
10display of window and interior signs. "Advertise" does not
11mean exterior signage displaying only the name of the licensed
12cannabis business establishment.
13    "Application points" means the number of points a
14Dispensary Applicant receives on an application for a
15Conditional Adult Use Dispensing Organization License.
16    "BLS Region" means a region in Illinois used by the United
17States Bureau of Labor Statistics to gather and categorize
18certain employment and wage data. The 17 such regions in
19Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
20Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
21Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
22Rockford, St. Louis, Springfield, Northwest Illinois
23nonmetropolitan area, West Central Illinois nonmetropolitan
24area, East Central Illinois nonmetropolitan area, and South
25Illinois nonmetropolitan area.
26    "By lot" means a randomized method of choosing between 2

 

 

10300SB1559ham001- 97 -LRB103 29878 BMS 62285 a

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

 

 

10300SB1559ham001- 98 -LRB103 29878 BMS 62285 a

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

 

 

10300SB1559ham001- 99 -LRB103 29878 BMS 62285 a

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

 

 

10300SB1559ham001- 100 -LRB103 29878 BMS 62285 a

1    "Community College Cannabis Vocational Training Pilot
2Program faculty participant" means a person who is 21 years of
3age or older, licensed by the Department of Agriculture, and
4is employed or contracted by an Illinois community college to
5provide student instruction using cannabis plants at an
6Illinois Community College.
7    "Community College Cannabis Vocational Training Pilot
8Program faculty participant Agent Identification Card" means a
9document issued by the Department of Agriculture that
10identifies a person as a Community College Cannabis Vocational
11Training Pilot Program faculty participant.
12    "Conditional Adult Use Dispensing Organization License"
13means a contingent license awarded to applicants for an Adult
14Use Dispensing Organization License that reserves the right to
15an Adult Use Dispensing Organization License if the applicant
16meets certain conditions described in this Act, but does not
17entitle the recipient to begin purchasing or selling cannabis
18or cannabis-infused products.
19    "Conditional Adult Use Cultivation Center License" means a
20license awarded to top-scoring applicants for an Adult Use
21Cultivation Center License that reserves the right to an Adult
22Use Cultivation Center License if the applicant meets certain
23conditions as determined by the Department of Agriculture by
24rule, but does not entitle the recipient to begin growing,
25processing, or selling cannabis or cannabis-infused products.
26    "Craft grower" means a facility operated by an

 

 

10300SB1559ham001- 101 -LRB103 29878 BMS 62285 a

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

 

 

10300SB1559ham001- 102 -LRB103 29878 BMS 62285 a

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

 

 

10300SB1559ham001- 103 -LRB103 29878 BMS 62285 a

1patients and caregivers. As used in this Act, "dispensing
2organization" includes a registered medical cannabis
3organization as defined in the Compassionate Use of Medical
4Cannabis Program Act or its successor Act that has obtained an
5Early Approval Adult Use Dispensing Organization License.
6    "Dispensing organization agent" means a principal officer,
7employee, or agent of a dispensing organization who is 21
8years of age or older.
9    "Dispensing organization agent identification card" means
10a document issued by the Department of Financial and
11Professional Regulation that identifies a person as a
12dispensing organization agent.
13    "Disproportionately Impacted Area" means a census tract or
14comparable geographic area that satisfies the following
15criteria as determined by the Department of Commerce and
16Economic Opportunity, that:
17        (1) meets at least one of the following criteria:
18            (A) the area has a poverty rate of at least 20%
19        according to the latest federal decennial census; or
20            (B) 75% or more of the children in the area
21        participate in the federal free lunch program
22        according to reported statistics from the State Board
23        of Education; or
24            (C) at least 20% of the households in the area
25        receive assistance under the Supplemental Nutrition
26        Assistance Program; or

 

 

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1            (D) the area has an average unemployment rate, as
2        determined by the Illinois Department of Employment
3        Security, that is more than 120% of the national
4        unemployment average, as determined by the United
5        States Department of Labor, for a period of at least 2
6        consecutive calendar years preceding the date of the
7        application; and
8        (2) has high rates of arrest, conviction, and
9    incarceration related to the sale, possession, use,
10    cultivation, manufacture, or transport of cannabis.
11    "Early Approval Adult Use Cultivation Center License"
12means a license that permits a medical cannabis cultivation
13center licensed under the Compassionate Use of Medical
14Cannabis Program Act as of the effective date of this Act to
15begin cultivating, infusing, packaging, transporting (unless
16otherwise provided in this Act), processing, and selling
17cannabis or cannabis-infused product to cannabis business
18establishments for resale to purchasers as permitted by this
19Act as of January 1, 2020.
20    "Early Approval Adult Use Dispensing Organization License"
21means a license that permits a medical cannabis dispensing
22organization licensed under the Compassionate Use of Medical
23Cannabis Program Act as of the effective date of this Act to
24begin selling cannabis or cannabis-infused product to
25purchasers as permitted by this Act as of January 1, 2020.
26    "Early Approval Adult Use Dispensing Organization at a

 

 

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1secondary site" means a license that permits a medical
2cannabis dispensing organization licensed under the
3Compassionate Use of Medical Cannabis Program Act as of the
4effective date of this Act to begin selling cannabis or
5cannabis-infused product to purchasers as permitted by this
6Act on January 1, 2020 at a different dispensary location from
7its existing registered medical dispensary location.
8    "Eligible Tied Applicant" means a Tied Applicant that is
9eligible to participate in the process by which a remaining
10available license is distributed by lot pursuant to a Tied
11Applicant Lottery.
12    "Enclosed, locked facility" means a room, greenhouse,
13building, or other enclosed area equipped with locks or other
14security devices that permit access only by cannabis business
15establishment agents working for the licensed cannabis
16business establishment or acting pursuant to this Act to
17cultivate, process, store, or distribute cannabis.
18    "Enclosed, locked space" means a closet, room, greenhouse,
19building, or other enclosed area equipped with locks or other
20security devices that permit access only by authorized
21individuals under this Act. "Enclosed, locked space" may
22include:
23        (1) a space within a residential building that (i) is
24    the primary residence of the individual cultivating 5 or
25    fewer cannabis plants that are more than 5 inches tall and
26    (ii) includes sleeping quarters and indoor plumbing. The

 

 

10300SB1559ham001- 106 -LRB103 29878 BMS 62285 a

1    space must only be accessible by a key or code that is
2    different from any key or code that can be used to access
3    the residential building from the exterior; or
4        (2) a structure, such as a shed or greenhouse, that
5    lies on the same plot of land as a residential building
6    that (i) includes sleeping quarters and indoor plumbing
7    and (ii) is used as a primary residence by the person
8    cultivating 5 or fewer cannabis plants that are more than
9    5 inches tall, such as a shed or greenhouse. The structure
10    must remain locked when it is unoccupied by people.
11    "Financial institution" has the same meaning as "financial
12organization" as defined in Section 1501 of the Illinois
13Income Tax Act, and also includes the holding companies,
14subsidiaries, and affiliates of such financial organizations.
15    "Flowering stage" means the stage of cultivation where and
16when a cannabis plant is cultivated to produce plant material
17for cannabis products. This includes mature plants as follows:
18        (1) if greater than 2 stigmas are visible at each
19    internode of the plant; or
20        (2) if the cannabis plant is in an area that has been
21    intentionally deprived of light for a period of time
22    intended to produce flower buds and induce maturation,
23    from the moment the light deprivation began through the
24    remainder of the marijuana plant growth cycle.
25    "Individual" means a natural person.
26    "Infuser organization" or "infuser" means a facility

 

 

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1operated by an organization or business that is licensed by
2the Department of Agriculture to directly incorporate cannabis
3or cannabis concentrate into a product formulation to produce
4a cannabis-infused product.
5    "Kief" means the resinous crystal-like trichomes that are
6found on cannabis and that are accumulated, resulting in a
7higher concentration of cannabinoids, untreated by heat or
8pressure, or extracted using a solvent.
9    "Labor peace agreement" means an agreement between a
10cannabis business establishment and any labor organization
11recognized under the National Labor Relations Act, referred to
12in this Act as a bona fide labor organization, that prohibits
13labor organizations and members from engaging in picketing,
14work stoppages, boycotts, and any other economic interference
15with the cannabis business establishment. This agreement means
16that the cannabis business establishment has agreed not to
17disrupt efforts by the bona fide labor organization to
18communicate with, and attempt to organize and represent, the
19cannabis business establishment's employees. The agreement
20shall provide a bona fide labor organization access at
21reasonable times to areas in which the cannabis business
22establishment's employees work, for the purpose of meeting
23with employees to discuss their right to representation,
24employment rights under State law, and terms and conditions of
25employment. This type of agreement shall not mandate a
26particular method of election or certification of the bona

 

 

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1fide labor organization.
2    "Limited access area" means a room or other area under the
3control of a cannabis dispensing organization licensed under
4this Act and upon the licensed premises where cannabis sales
5occur with access limited to purchasers, dispensing
6organization owners and other dispensing organization agents,
7or service professionals conducting business with the
8dispensing organization, or, if sales to registered qualifying
9patients, caregivers, provisional patients, and Opioid
10Alternative Pilot Program participants licensed pursuant to
11the Compassionate Use of Medical Cannabis Program Act are also
12permitted at the dispensary, registered qualifying patients,
13caregivers, provisional patients, and Opioid Alternative Pilot
14Program participants.
15    "Member of an impacted family" means an individual who has
16a parent, legal guardian, child, spouse, or dependent, or was
17a dependent of an individual who, prior to the effective date
18of this Act, was arrested for, convicted of, or adjudicated
19delinquent for any offense that is eligible for expungement
20under this Act.
21    "Mother plant" means a cannabis plant that is cultivated
22or maintained for the purpose of generating clones, and that
23will not be used to produce plant material for sale to an
24infuser or dispensing organization.
25    "Ordinary public view" means within the sight line with
26normal visual range of a person, unassisted by visual aids,

 

 

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1from a public street or sidewalk adjacent to real property, or
2from within an adjacent property.
3    "Ownership and control" means ownership of at least 51% of
4the business, including corporate stock if a corporation, and
5control over the management and day-to-day operations of the
6business and an interest in the capital, assets, and profits
7and losses of the business proportionate to percentage of
8ownership.
9    "Person" means a natural individual, firm, partnership,
10association, joint stock company, joint venture, public or
11private corporation, limited liability company, or a receiver,
12executor, trustee, guardian, or other representative appointed
13by order of any court.
14    "Possession limit" means the amount of cannabis under
15Section 10-10 that may be possessed at any one time by a person
1621 years of age or older or who is a registered qualifying
17medical cannabis patient or caregiver under the Compassionate
18Use of Medical Cannabis Program Act.
19    "Principal officer" includes a cannabis business
20establishment applicant or licensed cannabis business
21establishment's board member, owner with more than 1% interest
22of the total cannabis business establishment or more than 5%
23interest of the total cannabis business establishment of a
24publicly traded company, president, vice president, secretary,
25treasurer, partner, officer, member, manager member, or person
26with a profit sharing, financial interest, or revenue sharing

 

 

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1arrangement. The definition includes a person with authority
2to control the cannabis business establishment, a person who
3assumes responsibility for the debts of the cannabis business
4establishment and who is further defined in this Act.
5    "Primary residence" means a dwelling where a person
6usually stays or stays more often than other locations. It may
7be determined by, without limitation, presence, tax filings;
8address on an Illinois driver's license, an Illinois
9Identification Card, or an Illinois Person with a Disability
10Identification Card; or voter registration. No person may have
11more than one primary residence.
12    "Processing organization" or "processor" means a facility
13operated by an organization or business that is licensed by
14the Department of Agriculture to either extract constituent
15chemicals or compounds to produce cannabis concentrate or
16incorporate cannabis or cannabis concentrate into a product
17formulation to produce a cannabis product.
18    "Processing organization agent" means a principal officer,
19board member, employee, or agent of a processing organization.
20    "Processing organization agent identification card" means
21a document issued by the Department of Agriculture that
22identifies a person as a processing organization agent.
23    "Purchaser" means a person 21 years of age or older who
24acquires cannabis for a valuable consideration. "Purchaser"
25does not include a cardholder under the Compassionate Use of
26Medical Cannabis Program Act.

 

 

10300SB1559ham001- 111 -LRB103 29878 BMS 62285 a

1    "Qualifying Applicant" means an applicant that submitted
2an application pursuant to Section 15-30 that received at
3least 85% of 250 application points available under Section
415-30 as the applicant's final score and meets the definition
5of "Social Equity Applicant" as set forth under this Section.
6    "Qualifying Social Equity Justice Involved Applicant"
7means an applicant that submitted an application pursuant to
8Section 15-30 that received at least 85% of 250 application
9points available under Section 15-30 as the applicant's final
10score and meets the criteria of either paragraph (1) or (2) of
11the definition of "Social Equity Applicant" as set forth under
12this Section.
13    "Qualified Social Equity Applicant" means a Social Equity
14Applicant who has been awarded a conditional license under
15this Act to operate a cannabis business establishment.
16    "Resided" means an individual's primary residence was
17located within the relevant geographic area as established by
182 of the following:
19        (1) a signed lease agreement that includes the
20    applicant's name;
21        (2) a property deed that includes the applicant's
22    name;
23        (3) school records;
24        (4) a voter registration card;
25        (5) an Illinois driver's license, an Illinois
26    Identification Card, or an Illinois Person with a

 

 

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1    Disability Identification Card;
2        (6) a paycheck stub;
3        (7) a utility bill;
4        (8) tax records; or
5        (9) any other proof of residency or other information
6    necessary to establish residence as provided by rule.
7    "Smoking" means the inhalation of smoke caused by the
8combustion of cannabis.
9    "Social Equity Applicant" means an applicant that is an
10Illinois resident that meets one of the following criteria:
11        (1) an applicant with at least 51% ownership and
12    control by one or more individuals who have resided for at
13    least 5 of the preceding 10 years in a Disproportionately
14    Impacted Area;
15        (2) an applicant with at least 51% ownership and
16    control by one or more individuals who:
17            (i) have been arrested for, convicted of, or
18        adjudicated delinquent for any offense that is
19        eligible for expungement under this Act; or
20            (ii) is a member of an impacted family;
21        (3) for applicants with a minimum of 10 full-time
22    employees, an applicant with at least 51% of current
23    employees who:
24            (i) currently reside in a Disproportionately
25        Impacted Area; or
26            (ii) have been arrested for, convicted of, or

 

 

10300SB1559ham001- 113 -LRB103 29878 BMS 62285 a

1        adjudicated delinquent for any offense that is
2        eligible for expungement under this Act or member of
3        an impacted family.
4    Nothing in this Act shall be construed to preempt or limit
5the duties of any employer under the Job Opportunities for
6Qualified Applicants Act. Nothing in this Act shall permit an
7employer to require an employee to disclose sealed or expunged
8offenses, unless otherwise required by law.
9    "Tied Applicant" means an application submitted by a
10Dispensary Applicant pursuant to Section 15-30 that received
11the same number of application points under Section 15-30 as
12the Dispensary Applicant's final score as one or more
13top-scoring applications in the same BLS Region and would have
14been awarded a license but for the one or more other
15top-scoring applications that received the same number of
16application points. Each application for which a Dispensary
17Applicant was required to pay a required application fee for
18the application period ending January 2, 2020 shall be
19considered an application of a separate Tied Applicant.
20    "Tied Applicant Lottery" means the process established
21under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
22Use Dispensing Organization Licenses pursuant to Sections
2315-25 and 15-30 among Eligible Tied Applicants.
24    "Tincture" means a cannabis-infused solution, typically
25comprised of alcohol, glycerin, or vegetable oils, derived
26either directly from the cannabis plant or from a processed

 

 

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1cannabis extract. A tincture is not an alcoholic liquor as
2defined in the Liquor Control Act of 1934. A tincture shall
3include a calibrated dropper or other similar device capable
4of accurately measuring servings.
5    "Transporting organization" or "transporter" means an
6organization or business that is licensed by the Department of
7Agriculture to transport cannabis or cannabis-infused product
8on behalf of a cannabis business establishment or a community
9college licensed under the Community College Cannabis
10Vocational Training Pilot Program.
11    "Transporting organization agent" means a principal
12officer, board member, employee, or agent of a transporting
13organization.
14    "Transporting organization agent identification card"
15means a document issued by the Department of Agriculture that
16identifies a person as a transporting organization agent.
17    "Unit of local government" means any county, city,
18village, or incorporated town.
19    "Vegetative stage" means the stage of cultivation in which
20a cannabis plant is propagated to produce additional cannabis
21plants or reach a sufficient size for production. This
22includes seedlings, clones, mothers, and other immature
23cannabis plants as follows:
24        (1) if the cannabis plant is in an area that has not
25    been intentionally deprived of light for a period of time
26    intended to produce flower buds and induce maturation, it

 

 

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1    has no more than 2 stigmas visible at each internode of the
2    cannabis plant; or
3        (2) any cannabis plant that is cultivated solely for
4    the purpose of propagating clones and is never used to
5    produce cannabis.
6(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
7102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
85-13-22.)
 
9    (410 ILCS 705/50-5)
10    Sec. 50-5. Laboratory testing.
11    (a) Notwithstanding any other provision of law, the
12following acts, when performed by a licensed cannabis testing
13facility with a current, valid license registration, or a
14person 21 years of age or older who is acting in his or her
15capacity as an owner, employee, or agent of a cannabis testing
16facility, are not unlawful and shall not be an offense under
17Illinois law or be a basis for seizure or forfeiture of assets
18under Illinois law:
19        (1) possessing, repackaging, transporting, storing, or
20    displaying cannabis or cannabis-infused products;
21        (2) receiving or transporting cannabis or
22    cannabis-infused products from a cannabis business
23    establishment, a community college licensed under the
24    Community College Cannabis Vocational Training Pilot
25    Program, or a person 21 years of age or older; and

 

 

10300SB1559ham001- 116 -LRB103 29878 BMS 62285 a

1        (3) returning or transporting cannabis or
2    cannabis-infused products to a cannabis business
3    establishment, a community college licensed under the
4    Community College Cannabis Vocational Training Pilot
5    Program, or a person 21 years of age or older.
6    (b)(1) No laboratory shall handle, test, or analyze
7cannabis unless approved by the Department of Agriculture in
8accordance with this Section.
9    (2) No laboratory shall be approved to handle, test, or
10analyze cannabis unless the laboratory:
11        (A) is accredited by a private laboratory accrediting
12    organization;
13        (B) is independent from all other persons involved in
14    the cannabis industry in Illinois and no person with a
15    direct or indirect interest in the laboratory has a direct
16    or indirect financial, management, or other interest in an
17    Illinois cultivation center, craft grower, dispensary,
18    infuser, transporter, certifying physician, or any other
19    entity in the State that may benefit from the production,
20    manufacture, dispensing, sale, purchase, or use of
21    cannabis; and
22        (C) has employed at least one person to oversee and be
23    responsible for the laboratory testing who has earned,
24    from a college or university accredited by a national or
25    regional certifying authority, at least:
26            (i) a master's level degree in chemical or

 

 

10300SB1559ham001- 117 -LRB103 29878 BMS 62285 a

1        biological sciences and a minimum of 2 years'
2        post-degree laboratory experience; or
3            (ii) a bachelor's degree in chemical or biological
4        sciences and a minimum of 4 years' post-degree
5        laboratory experience.
6    (3) Each independent testing laboratory that claims to be
7accredited must provide the Department of Agriculture with a
8copy of the most recent annual inspection report granting
9accreditation and every annual report thereafter.
10    (c) Immediately before manufacturing or natural processing
11of any cannabis or cannabis-infused product or packaging
12cannabis for sale to a dispensary, each batch shall be made
13available by the cultivation center, craft grower, or infuser
14for an employee of an approved laboratory to select a random
15sample, which shall be tested by the approved laboratory for:
16        (1) microbiological contaminants;
17        (2) mycotoxins;
18        (3) pesticide active ingredients;
19        (4) residual solvent; and
20        (5) an active ingredient analysis.
21    (d) The Department of Agriculture may select a random
22sample that shall, for the purposes of conducting an active
23ingredient analysis, be tested by the Department of
24Agriculture for verification of label information.
25    (e) A laboratory shall immediately return or dispose of
26any cannabis upon the completion of any testing, use, or

 

 

10300SB1559ham001- 118 -LRB103 29878 BMS 62285 a

1research. If cannabis is disposed of, it shall be done in
2compliance with Department of Agriculture rule.
3    (f) If a sample of cannabis does not pass the
4microbiological, mycotoxin, pesticide chemical residue, or
5solvent residue test, based on the standards established by
6the Department of Agriculture, the following shall apply:
7        (1) If the sample failed the pesticide chemical
8    residue test, the entire batch from which the sample was
9    taken shall, if applicable, be recalled as provided by
10    rule.
11        (2) If the sample failed any other test, the batch may
12    be used to make a CO2-based or solvent based extract. After
13    processing, the CO2-based or solvent based extract must
14    still pass all required tests.
15    (g) The Department of Agriculture shall establish
16standards for microbial, mycotoxin, pesticide residue, solvent
17residue, or other standards for the presence of possible
18contaminants, in addition to labeling requirements for
19contents and potency.
20    (h) The laboratory shall file with the Department of
21Agriculture an electronic copy of each laboratory test result
22for any batch that does not pass the microbiological,
23mycotoxin, or pesticide chemical residue test, at the same
24time that it transmits those results to the cultivation
25center. In addition, the laboratory shall maintain the
26laboratory test results for at least 5 years and make them

 

 

10300SB1559ham001- 119 -LRB103 29878 BMS 62285 a

1available at the Department of Agriculture's request.
2    (i) A cultivation center, craft grower, and infuser shall
3provide to a dispensing organization the laboratory test
4results for each batch of cannabis product purchased by the
5dispensing organization, if sampled. Each dispensing
6organization must have those laboratory results available upon
7request to purchasers.
8    (j) The Department of Agriculture may adopt rules related
9to testing in furtherance of this Act.
10(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
11
Article 9.

 
12    Section 9-5. The Cannabis Regulation and Tax Act is
13amended by changing Sections 15-25, 15-35, and 15-35.10 as
14follows:
 
15    (410 ILCS 705/15-25)
16    Sec. 15-25. Awarding of Conditional Adult Use Dispensing
17Organization Licenses prior to January 1, 2021.
18    (a) The Department shall issue up to 75 Conditional Adult
19Use Dispensing Organization Licenses before May 1, 2020.
20    (b) The Department shall make the application for a
21Conditional Adult Use Dispensing Organization License
22available no later than October 1, 2019 and shall accept
23applications no later than January 1, 2020.

 

 

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1    (c) To ensure the geographic dispersion of Conditional
2Adult Use Dispensing Organization License holders, the
3following number of licenses shall be awarded in each BLS
4Region as determined by each region's percentage of the
5State's population:
6        (1) Bloomington: 1
7        (2) Cape Girardeau: 1
8        (3) Carbondale-Marion: 1
9        (4) Champaign-Urbana: 1
10        (5) Chicago-Naperville-Elgin: 47
11        (6) Danville: 1
12        (7) Davenport-Moline-Rock Island: 1
13        (8) Decatur: 1
14        (9) Kankakee: 1
15        (10) Peoria: 3
16        (11) Rockford: 2
17        (12) St. Louis: 4
18        (13) Springfield: 1
19        (14) Northwest Illinois nonmetropolitan: 3
20        (15) West Central Illinois nonmetropolitan: 3
21        (16) East Central Illinois nonmetropolitan: 2
22        (17) South Illinois nonmetropolitan: 2
23    (d) An applicant seeking issuance of a Conditional Adult
24Use Dispensing Organization License shall submit an
25application on forms provided by the Department. An applicant
26must meet the following requirements:

 

 

10300SB1559ham001- 121 -LRB103 29878 BMS 62285 a

1        (1) Payment of a nonrefundable application fee of
2    $5,000 for each license for which the applicant is
3    applying, which shall be deposited into the Cannabis
4    Regulation Fund;
5        (2) Certification that the applicant will comply with
6    the requirements contained in this Act;
7        (3) The legal name of the proposed dispensing
8    organization;
9        (4) A statement that the dispensing organization
10    agrees to respond to the Department's supplemental
11    requests for information;
12        (5) From each principal officer, a statement
13    indicating whether that person:
14            (A) has previously held or currently holds an
15        ownership interest in a cannabis business
16        establishment in Illinois; or
17            (B) has held an ownership interest in a dispensing
18        organization or its equivalent in another state or
19        territory of the United States that had the dispensing
20        organization registration or license suspended,
21        revoked, placed on probationary status, or subjected
22        to other disciplinary action;
23        (6) Disclosure of whether any principal officer has
24    ever filed for bankruptcy or defaulted on spousal support
25    or child support obligation;
26        (7) A resume for each principal officer, including

 

 

10300SB1559ham001- 122 -LRB103 29878 BMS 62285 a

1    whether that person has an academic degree, certification,
2    or relevant experience with a cannabis business
3    establishment or in a related industry;
4        (8) A description of the training and education that
5    will be provided to dispensing organization agents;
6        (9) A copy of the proposed operating bylaws;
7        (10) A copy of the proposed business plan that
8    complies with the requirements in this Act, including, at
9    a minimum, the following:
10            (A) A description of services to be offered; and
11            (B) A description of the process of dispensing
12        cannabis;
13        (11) A copy of the proposed security plan that
14    complies with the requirements in this Article, including:
15            (A) The process or controls that will be
16        implemented to monitor the dispensary, secure the
17        premises, agents, and currency, and prevent the
18        diversion, theft, or loss of cannabis; and
19            (B) The process to ensure that access to the
20        restricted access areas is restricted to, registered
21        agents, service professionals, transporting
22        organization agents, Department inspectors, and
23        security personnel;
24        (12) A proposed inventory control plan that complies
25    with this Section;
26        (13) A proposed floor plan, a square footage estimate,

 

 

10300SB1559ham001- 123 -LRB103 29878 BMS 62285 a

1    and a description of proposed security devices, including,
2    without limitation, cameras, motion detectors, servers,
3    video storage capabilities, and alarm service providers;
4        (14) The name, address, social security number, and
5    date of birth of each principal officer and board member
6    of the dispensing organization; each of those individuals
7    shall be at least 21 years of age;
8        (15) Evidence of the applicant's status as a Social
9    Equity Applicant, if applicable, and whether a Social
10    Equity Applicant plans to apply for a loan or grant issued
11    by the Department of Commerce and Economic Opportunity;
12        (16) The address, telephone number, and email address
13    of the applicant's principal place of business, if
14    applicable. A post office box is not permitted;
15        (17) Written summaries of any information regarding
16    instances in which a business or not-for-profit that a
17    prospective board member previously managed or served on
18    were fined or censured, or any instances in which a
19    business or not-for-profit that a prospective board member
20    previously managed or served on had its registration
21    suspended or revoked in any administrative or judicial
22    proceeding;
23        (18) A plan for community engagement;
24        (19) Procedures to ensure accurate recordkeeping and
25    security measures that are in accordance with this Article
26    and Department rules;

 

 

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1        (20) The estimated volume of cannabis it plans to
2    store at the dispensary;
3        (21) A description of the features that will provide
4    accessibility to purchasers as required by the Americans
5    with Disabilities Act;
6        (22) A detailed description of air treatment systems
7    that will be installed to reduce odors;
8        (23) A reasonable assurance that the issuance of a
9    license will not have a detrimental impact on the
10    community in which the applicant wishes to locate;
11        (24) The dated signature of each principal officer;
12        (25) A description of the enclosed, locked facility
13    where cannabis will be stored by the dispensing
14    organization;
15        (26) Signed statements from each dispensing
16    organization agent stating that he or she will not divert
17    cannabis;
18        (27) The number of licenses it is applying for in each
19    BLS Region;
20        (28) A diversity plan that includes a narrative of at
21    least 2,500 words that establishes a goal of diversity in
22    ownership, management, employment, and contracting to
23    ensure that diverse participants and groups are afforded
24    equality of opportunity;
25        (29) A contract with a private security contractor
26    agency that is licensed under Section 10-5 of the Private

 

 

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1    Detective, Private Alarm, Private Security, Fingerprint
2    Vendor, and Locksmith Act of 2004 in order for the
3    dispensary to have adequate security at its facility; and
4        (30) Other information deemed necessary by the
5    Illinois Cannabis Regulation Oversight Officer to conduct
6    the disparity and availability study referenced in
7    subsection (e) of Section 5-45.
8    (e) An applicant who receives a Conditional Adult Use
9Dispensing Organization License under this Section has 180
10days from the date of award to identify a physical location for
11the dispensing organization retail storefront. The applicant
12shall provide evidence that the location is not within 1,500
13feet of an existing dispensing organization, unless the
14applicant is a Social Equity Applicant or Social Equity
15Justice Involved Applicant located or seeking to locate within
161,500 feet of a dispensing organization licensed under Section
1715-15 or Section 15-20. If an applicant is unable to find a
18suitable physical address in the opinion of the Department
19within 180 days of the issuance of the Conditional Adult Use
20Dispensing Organization License, the Department may extend the
21period for finding a physical address an additional 540
22another 180 days if the Conditional Adult Use Dispensing
23Organization License holder demonstrates concrete attempts to
24secure a location and a hardship. If the Department denies the
25extension or the Conditional Adult Use Dispensing Organization
26License holder is unable to find a location or become

 

 

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1operational within 720 360 days of being awarded a conditional
2license, the Department shall rescind the conditional license
3and award it to the next highest scoring applicant in the BLS
4Region for which the license was assigned, provided the
5applicant receiving the license: (i) confirms a continued
6interest in operating a dispensing organization; (ii) can
7provide evidence that the applicant continues to meet all
8requirements for holding a Conditional Adult Use Dispensing
9Organization License set forth in this Act; and (iii) has not
10otherwise become ineligible to be awarded a dispensing
11organization license. If the new awardee is unable to accept
12the Conditional Adult Use Dispensing Organization License, the
13Department shall award the Conditional Adult Use Dispensing
14Organization License to the next highest scoring applicant in
15the same manner. The new awardee shall be subject to the same
16required deadlines as provided in this subsection.
17    (e-5) If, within 720 180 days of being awarded a
18Conditional Adult Use Dispensing Organization License, a
19dispensing organization is unable to find a location within
20the BLS Region in which it was awarded a Conditional Adult Use
21Dispensing Organization License because no jurisdiction within
22the BLS Region allows for the operation of an Adult Use
23Dispensing Organization, the Department of Financial and
24Professional Regulation may authorize the Conditional Adult
25Use Dispensing Organization License holder to transfer its
26license to a BLS Region specified by the Department.

 

 

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1    (f) A dispensing organization that is awarded a
2Conditional Adult Use Dispensing Organization License pursuant
3to the criteria in Section 15-30 shall not purchase, possess,
4sell, or dispense cannabis or cannabis-infused products until
5the person has received an Adult Use Dispensing Organization
6License issued by the Department pursuant to Section 15-36 of
7this Act.
8    (g) The Department shall conduct a background check of the
9prospective organization agents in order to carry out this
10Article. The Illinois State Police shall charge the applicant
11a fee for conducting the criminal history record check, which
12shall be deposited into the State Police Services Fund and
13shall not exceed the actual cost of the record check. Each
14person applying as a dispensing organization agent shall
15submit a full set of fingerprints to the Illinois State Police
16for the purpose of obtaining a State and federal criminal
17records check. These fingerprints shall be checked against the
18fingerprint records now and hereafter, to the extent allowed
19by law, filed in the Illinois State Police and Federal Bureau
20of Identification criminal history records databases. The
21Illinois State Police shall furnish, following positive
22identification, all Illinois conviction information to the
23Department.
24(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
25102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
265-13-22.)
 

 

 

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1    (410 ILCS 705/15-35)
2    Sec. 15-35. Qualifying Applicant Lottery for Conditional
3Adult Use Dispensing Organization Licenses.
4    (a) In addition to any of the licenses issued under
5Section 15-15, Section 15-20, Section 15-25, Section 15-30.20,
6or Section 15-35.10 of this Act, within 10 business days after
7the resulting final scores for all scored applications
8pursuant to Sections 15-25 and 15-30 are released, the
9Department shall issue up to 55 Conditional Adult Use
10Dispensing Organization Licenses by lot, pursuant to the
11application process adopted under this Section. In order to be
12eligible to be awarded a Conditional Adult Use Dispensing
13Organization License by lot under this Section, a Dispensary
14Applicant must be a Qualifying Applicant.
15    The licenses issued under this Section shall be awarded in
16each BLS Region in the following amounts:
17        (1) Bloomington: 1.
18        (2) Cape Girardeau: 1.
19        (3) Carbondale-Marion: 1.
20        (4) Champaign-Urbana: 1.
21        (5) Chicago-Naperville-Elgin: 36.
22        (6) Danville: 1.
23        (7) Davenport-Moline-Rock Island: 1.
24        (8) Decatur: 1.
25        (9) Kankakee: 1.

 

 

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1        (10) Peoria: 2.
2        (11) Rockford: 1.
3        (12) St. Louis: 3.
4        (13) Springfield: 1.
5        (14) Northwest Illinois nonmetropolitan: 1.
6        (15) West Central Illinois nonmetropolitan: 1.
7        (16) East Central Illinois nonmetropolitan: 1.
8        (17) South Illinois nonmetropolitan: 1.
9    (a-5) Prior to issuing licenses under subsection (a), the
10Department may adopt rules through emergency rulemaking in
11accordance with subsection (kk) of Section 5-45 of the
12Illinois Administrative Procedure Act. The General Assembly
13finds that the adoption of rules to regulate cannabis use is
14deemed an emergency and necessary for the public interest,
15safety, and welfare.
16    (b) The Department shall distribute the available licenses
17established under this Section subject to the following:
18        (1) The drawing by lot for all available licenses
19    issued under this Section shall occur on the same day when
20    practicable.
21        (2) Within each BLS Region, the first Qualifying
22    Applicant drawn will have the first right to an available
23    license. The second Qualifying Applicant drawn will have
24    the second right to an available license. The same pattern
25    will continue for each subsequent Qualifying Applicant
26    drawn.

 

 

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1        (3) The process for distributing available licenses
2    under this Section shall be recorded by the Department in
3    a format selected by the Department.
4        (4) A Dispensary Applicant is prohibited from becoming
5    a Qualifying Applicant if a principal officer resigns
6    after the resulting final scores for all scored
7    applications pursuant to Sections 15-25 and 15-30 are
8    released.
9        (5) No Qualifying Applicant may be awarded more than 2
10    Conditional Adult Use Dispensing Organization Licenses at
11    the conclusion of a lottery conducted under this Section.
12        (6) No individual may be listed as a principal officer
13    of more than 2 Conditional Adult Use Dispensing
14    Organization Licenses awarded under this Section.
15        (7) If, upon being selected for an available license
16    established under this Section, a Qualifying Applicant
17    exceeds the limits under paragraph (5) or (6), the
18    Qualifying Applicant must choose which license to abandon
19    and notify the Department in writing within 5 business
20    days. If the Qualifying Applicant does not notify the
21    Department as required, the Department shall refuse to
22    issue the Qualifying Applicant all available licenses
23    established under this Section obtained by lot in all BLS
24    Regions.
25        (8) If, upon being selected for an available license
26    established under this Section, a Qualifying Applicant has

 

 

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

 

 

10300SB1559ham001- 132 -LRB103 29878 BMS 62285 a

1within 1,500 feet of a dispensing organization licensed under
2Section 15-15 or Section 15-20. If an applicant is unable to
3find a suitable physical address in the opinion of the
4Department within 180 days from the issuance of the
5Conditional Adult Use Dispensing Organization License, the
6Department may extend the period for finding a physical
7address an additional 540 another 180 days if the Conditional
8Adult Use Dispensing Organization License holder demonstrates
9a concrete attempt to secure a location and a hardship. If the
10Department denies the extension or the Conditional Adult Use
11Dispensing Organization License holder is unable to find a
12location or become operational within 720 360 days of being
13awarded a Conditional Adult Use Dispensing Organization
14License under this Section, the Department shall rescind the
15Conditional Adult Use Dispensing Organization License and
16award it pursuant to subsection (b), provided the applicant
17receiving the Conditional Adult Use Dispensing Organization
18License: (i) confirms a continued interest in operating a
19dispensing organization; (ii) can provide evidence that the
20applicant continues to meet all requirements for holding a
21Conditional Adult Use Dispensing Organization License set
22forth in this Act; and (iii) has not otherwise become
23ineligible to be awarded a Conditional Adult Use Dispensing
24Organization License. If the new awardee is unable to accept
25the Conditional Adult Use Dispensing Organization License, the
26Department shall award the Conditional Adult Use Dispensing

 

 

10300SB1559ham001- 133 -LRB103 29878 BMS 62285 a

1Organization License pursuant to subsection (b). The new
2awardee shall be subject to the same required deadlines as
3provided in this subsection.
4    (d) If, within 720 180 days of being awarded a Conditional
5Adult Use Dispensing Organization License, a dispensing
6organization is unable to find a location within the BLS
7Region in which it was awarded a Conditional Adult Use
8Dispensing Organization License because no jurisdiction within
9the BLS Region allows for the operation of an Adult Use
10Dispensing Organization, the Department may authorize the
11Conditional Adult Use Dispensing Organization License holder
12to transfer its Conditional Adult Use Dispensing Organization
13License to a BLS Region specified by the Department.
14    (e) A dispensing organization that is awarded a
15Conditional Adult Use Dispensing Organization License under
16this Section shall not purchase, possess, sell, or dispense
17cannabis or cannabis-infused products until the dispensing
18organization has received an Adult Use Dispensing Organization
19License issued by the Department pursuant to Section 15-36.
20    (f) The Department shall conduct a background check of the
21prospective dispensing organization agents in order to carry
22out this Article. The Illinois State Police shall charge the
23applicant a fee for conducting the criminal history record
24check, which shall be deposited into the State Police Services
25Fund and shall not exceed the actual cost of the record check.
26Each person applying as a dispensing organization agent shall

 

 

10300SB1559ham001- 134 -LRB103 29878 BMS 62285 a

1submit a full set of fingerprints to the Illinois State Police
2for the purpose of obtaining a State and federal criminal
3records check. These fingerprints shall be checked against the
4fingerprint records now and hereafter, to the extent allowed
5by law, filed with the Illinois State Police and the Federal
6Bureau of Investigation criminal history records databases.
7The Illinois State Police shall furnish, following positive
8identification, all Illinois conviction information to the
9Department.
10    (g) The Department may verify information contained in
11each application and accompanying documentation to assess the
12applicant's veracity and fitness to operate a dispensing
13organization.
14    (h) The Department may, in its discretion, refuse to issue
15authorization to an applicant who meets any of the following
16criteria:
17        (1) An applicant who is unqualified to perform the
18    duties required of the applicant.
19        (2) An applicant who fails to disclose or states
20    falsely any information called for in the application.
21        (3) An applicant who has been found guilty of a
22    violation of this Act, who has had any disciplinary order
23    entered against the applicant by the Department, who has
24    entered into a disciplinary or nondisciplinary agreement
25    with the Department, whose medical cannabis dispensing
26    organization, medical cannabis cultivation organization,

 

 

10300SB1559ham001- 135 -LRB103 29878 BMS 62285 a

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

 

 

10300SB1559ham001- 136 -LRB103 29878 BMS 62285 a

1of the Conditional Adult Use Dispensing Organization License
2and any Adult Use Dispensing Organization License issued to
3the holder of the Conditional Adult Use Dispensing
4Organization License, except as otherwise provided by this Act
5or by rule. A dispensing organization has a duty to disclose
6any material changes to the application. The Department shall
7review all material changes disclosed by the dispensing
8organization and may reevaluate its prior decision regarding
9the awarding of a Conditional Adult Use Dispensing
10Organization License, including, but not limited to,
11suspending or permanently revoking a Conditional Adult Use
12Dispensing Organization License. Failure to comply with the
13conditions or requirements in the application may subject the
14dispensing organization to discipline up to and including
15suspension or permanent revocation of its authorization or
16Conditional Adult Use Dispensing Organization License by the
17Department.
18    (l) If an applicant has not begun operating as a
19dispensing organization within one year after the issuance of
20the Conditional Adult Use Dispensing Organization License
21under this Section, the Department may permanently revoke the
22Conditional Adult Use Dispensing Organization License and
23award it to the next highest scoring applicant in the BLS
24Region if a suitable applicant indicates a continued interest
25in the Conditional Adult Use Dispensing Organization License
26or may begin a new selection process to award a Conditional

 

 

10300SB1559ham001- 137 -LRB103 29878 BMS 62285 a

1Adult Use Dispensing Organization License.
2(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
3102-98, eff. 7-15-21.)
 
4    (410 ILCS 705/15-35.10)
5    Sec. 15-35.10. Social Equity Justice Involved Lottery for
6Conditional Adult Use Dispensing Organization Licenses.
7    (a) In addition to any of the licenses issued under
8Section 15-15, Section 15-20, Section 15-25, Section 15-30.20,
9or Section 15-35, within 10 business days after the resulting
10final scores for all scored applications pursuant to Sections
1115-25 and 15-30 are released, the Department shall issue up to
1255 Conditional Adult Use Dispensing Organization Licenses by
13lot, pursuant to the application process adopted under this
14Section. In order to be eligible to be awarded a Conditional
15Adult Use Dispensing Organization License by lot, a Dispensary
16Applicant must be a Qualifying Social Equity Justice Involved
17Applicant.
18    The licenses issued under this Section shall be awarded in
19each BLS Region in the following amounts:
20        (1) Bloomington: 1.
21        (2) Cape Girardeau: 1.
22        (3) Carbondale-Marion: 1.
23        (4) Champaign-Urbana: 1.
24        (5) Chicago-Naperville-Elgin: 36.
25        (6) Danville: 1.

 

 

10300SB1559ham001- 138 -LRB103 29878 BMS 62285 a

1        (7) Davenport-Moline-Rock Island: 1.
2        (8) Decatur: 1.
3        (9) Kankakee: 1.
4        (10) Peoria: 2.
5        (11) Rockford: 1.
6        (12) St. Louis: 3.
7        (13) Springfield: 1.
8        (14) Northwest Illinois nonmetropolitan: 1.
9        (15) West Central Illinois nonmetropolitan: 1.
10        (16) East Central Illinois nonmetropolitan: 1.
11        (17) South Illinois nonmetropolitan: 1.
12    (a-5) Prior to issuing licenses under subsection (a), the
13Department may adopt rules through emergency rulemaking in
14accordance with subsection (kk) of Section 5-45 of the
15Illinois Administrative Procedure Act. The General Assembly
16finds that the adoption of rules to regulate cannabis use is
17deemed an emergency and necessary for the public interest,
18safety, and welfare.
19    (b) The Department shall distribute the available licenses
20established under this Section subject to the following:
21        (1) The drawing by lot for all available licenses
22    established under this Section shall occur on the same day
23    when practicable.
24        (2) Within each BLS Region, the first Qualifying
25    Social Equity Justice Involved Applicant drawn will have
26    the first right to an available license. The second

 

 

10300SB1559ham001- 139 -LRB103 29878 BMS 62285 a

1    Qualifying Social Equity Justice Involved Applicant drawn
2    will have the second right to an available license. The
3    same pattern will continue for each subsequent applicant
4    drawn.
5        (3) The process for distributing available licenses
6    under this Section shall be recorded by the Department in
7    a format selected by the Department.
8        (4) A Dispensary Applicant is prohibited from becoming
9    a Qualifying Social Equity Justice Involved Applicant if a
10    principal officer resigns after the resulting final scores
11    for all scored applications pursuant to Sections 15-25 and
12    15-30 are released.
13        (5) No Qualifying Social Equity Justice Involved
14    Applicant may be awarded more than 2 Conditional Adult Use
15    Dispensing Organization Licenses at the conclusion of a
16    lottery conducted under this Section.
17        (6) No individual may be listed as a principal officer
18    of more than 2 Conditional Adult Use Dispensing
19    Organization Licenses awarded under this Section.
20        (7) If, upon being selected for an available license
21    established under this Section, a Qualifying Social Equity
22    Justice Involved Applicant exceeds the limits under
23    paragraph (5) or (6), the Qualifying Social Equity Justice
24    Involved Applicant must choose which license to abandon
25    and notify the Department in writing within 5 business
26    days on forms prescribed by the Department. If the

 

 

10300SB1559ham001- 140 -LRB103 29878 BMS 62285 a

1    Qualifying Social Equity Justice Involved Applicant does
2    not notify the Department as required, the Department
3    shall refuse to issue the Qualifying Social Equity Justice
4    Involved Applicant all available licenses established
5    under this Section obtained by lot in all BLS Regions.
6        (8) If, upon being selected for an available license
7    established under this Section, a Qualifying Social Equity
8    Justice Involved Applicant has a principal officer who is
9    a principal officer in more than 10 Early Approval Adult
10    Use Dispensing Organization Licenses, Conditional Adult
11    Use Dispensing Organization Licenses, Adult Use Dispensing
12    Organization Licenses, or any combination thereof, the
13    licensees and the Qualifying Social Equity Justice
14    Involved Applicant listing that principal officer must
15    choose which license to abandon pursuant to subsection (d)
16    of Section 15-36 and notify the Department in writing
17    within 5 business days on forms prescribed by the
18    Department. If the Dispensary Applicant or licensees do
19    not notify the Department as required, the Department
20    shall refuse to issue the Qualifying Social Equity Justice
21    Involved Applicant all available licenses established
22    under this Section obtained by lot in all BLS Regions.
23        (9) All available licenses that have been abandoned
24    under paragraph (7) or (8) shall be distributed to the
25    next Qualifying Social Equity Justice Involved Applicant
26    drawn by lot.

 

 

10300SB1559ham001- 141 -LRB103 29878 BMS 62285 a

1    Any and all rights conferred or obtained under this
2subsection shall be limited to the provisions of this
3subsection.
4    (c) An applicant who receives a Conditional Adult Use
5Dispensing Organization License under this Section has 180
6days from the date of the award to identify a physical location
7for the dispensing organization's retail storefront. The
8applicant shall provide evidence that the location is not
9within 1,500 feet of an existing dispensing organization,
10unless the applicant is a Social Equity Applicant or Social
11Equity Justice Involved Applicant located or seeking to locate
12within 1,500 feet of a dispensing organization licensed under
13Section 15-15 or Section 15-20. If an applicant is unable to
14find a suitable physical address in the opinion of the
15Department within 180 days from the issuance of the
16Conditional Adult Use Dispensing Organization License, the
17Department may extend the period for finding a physical
18address an additional 540 another 180 days if the Conditional
19Adult Use Dispensing Organization License holder demonstrates
20a concrete attempt to secure a location and a hardship. If the
21Department denies the extension or the Conditional Adult Use
22Dispensing Organization License holder is unable to find a
23location or become operational within 720 360 days of being
24awarded a Conditional Adult Use Dispensing Organization
25License under this Section, the Department shall rescind the
26Conditional Adult Use Dispensing Organization License and

 

 

10300SB1559ham001- 142 -LRB103 29878 BMS 62285 a

1award it pursuant to subsection (b) and notify the new awardee
2at the email address provided in the awardee's application,
3provided the applicant receiving the Conditional Adult Use
4Dispensing Organization License: (i) confirms a continued
5interest in operating a dispensing organization; (ii) can
6provide evidence that the applicant continues to meet all
7requirements for holding a Conditional Adult Use Dispensing
8Organization License set forth in this Act; and (iii) has not
9otherwise become ineligible to be awarded a Conditional Adult
10Use Dispensing Organization License. If the new awardee is
11unable to accept the Conditional Adult Use Dispensing
12Organization License, the Department shall award the
13Conditional Adult Use Dispensing Organization License pursuant
14to subsection (b). The new awardee shall be subject to the same
15required deadlines as provided in this subsection.
16    (d) If, within 180 days of being awarded a Conditional
17Adult Use Dispensing Organization License, a dispensing
18organization is unable to find a location within the BLS
19Region in which it was awarded a Conditional Adult Use
20Dispensing Organization License under this Section because no
21jurisdiction within the BLS Region allows for the operation of
22an Adult Use Dispensing Organization, the Department may
23authorize the Conditional Adult Use Dispensing Organization
24License holder to transfer its Conditional Adult Use
25Dispensing Organization License to a BLS Region specified by
26the Department.

 

 

10300SB1559ham001- 143 -LRB103 29878 BMS 62285 a

1    (e) A dispensing organization that is awarded a
2Conditional Adult Use Dispensing Organization License under
3this Section shall not purchase, possess, sell, or dispense
4cannabis or cannabis-infused products until the dispensing
5organization has received an Adult Use Dispensing Organization
6License issued by the Department pursuant to Section 15-36.
7    (f) The Department shall conduct a background check of the
8prospective dispensing organization agents in order to carry
9out this Article. The Illinois State Police shall charge the
10applicant a fee for conducting the criminal history record
11check, which shall be deposited into the State Police Services
12Fund and shall not exceed the actual cost of the record check.
13Each person applying as a dispensing organization agent shall
14submit a full set of fingerprints to the Illinois State Police
15for the purpose of obtaining a State and federal criminal
16records check. These fingerprints shall be checked against the
17fingerprint records now and hereafter, to the extent allowed
18by law, filed with the Illinois State Police and the Federal
19Bureau of Investigation criminal history records databases.
20The Illinois State Police shall furnish, following positive
21identification, all Illinois conviction information to the
22Department.
23    (g) The Department may verify information contained in
24each application and accompanying documentation to assess the
25applicant's veracity and fitness to operate a dispensing
26organization.

 

 

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1    (h) The Department may, in its discretion, refuse to issue
2an authorization to an applicant who meets any of the
3following criteria:
4        (1) An applicant who is unqualified to perform the
5    duties required of the applicant.
6        (2) An applicant who fails to disclose or states
7    falsely any information called for in the application.
8        (3) An applicant who has been found guilty of a
9    violation of this Act, who has had any disciplinary order
10    entered against the applicant by the Department, who has
11    entered into a disciplinary or nondisciplinary agreement
12    with the Department, whose medical cannabis dispensing
13    organization, medical cannabis cultivation organization,
14    Early Approval Adult Use Dispensing Organization License,
15    Early Approval Adult Use Dispensing Organization License
16    at a secondary site, Early Approval Cultivation Center
17    License, Conditional Adult Use Dispensing Organization
18    License, or Adult Use Dispensing Organization License was
19    suspended, restricted, revoked, or denied for just cause,
20    or whose cannabis business establishment license was
21    suspended, restricted, revoked, or denied in any other
22    state.
23        (4) An applicant who has engaged in a pattern or
24    practice of unfair or illegal practices, methods, or
25    activities in the conduct of owning a cannabis business
26    establishment or other business.

 

 

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1    (i) The Department shall deny the license if any principal
2officer, board member, or person having a financial or voting
3interest of 5% or greater in the licensee is delinquent in
4filing any required tax return or paying any amount owed to the
5State of Illinois.
6    (j) The Department shall verify an applicant's compliance
7with the requirements of this Article and rules adopted under
8this Article before issuing a Conditional Adult Use Dispensing
9Organization License.
10    (k) If an applicant is awarded a Conditional Adult Use
11Dispensing Organization License under this Section, the
12information and plans provided in the application, including
13any plans submitted for bonus points, shall become a condition
14of the Conditional Adult Use Dispensing Organization License
15and any Adult Use Dispensing Organization License issued to
16the holder of the Conditional Adult Use Dispensing
17Organization License, except as otherwise provided by this Act
18or by rule. Dispensing organizations have a duty to disclose
19any material changes to the application. The Department shall
20review all material changes disclosed by the dispensing
21organization and may reevaluate its prior decision regarding
22the awarding of a Conditional Adult Use Dispensing
23Organization License, including, but not limited to,
24suspending or permanently revoking a Conditional Adult Use
25Dispensing Organization License. Failure to comply with the
26conditions or requirements in the application may subject the

 

 

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1dispensing organization to discipline up to and including
2suspension or permanent revocation of its authorization or
3Conditional Adult Use Dispensing Organization License by the
4Department.
5    (l) If an applicant has not begun operating as a
6dispensing organization within one year after the issuance of
7the Conditional Adult Use Dispensing Organization License
8under this Section, the Department may permanently revoke the
9Conditional Adult Use Dispensing Organization License and
10award it to the next highest scoring applicant in the BLS
11Region if a suitable applicant indicates a continued interest
12in the Conditional Adult Use Dispensing Organization License
13or may begin a new selection process to award a Conditional
14Adult Use Dispensing Organization License.
15(Source: P.A. 102-98, eff. 7-15-21.)
 
16
Article 12.

 
17    Section 12-5. The Cannabis Regulation and Tax Act is
18amended by changing Section 40-5 as follows:
 
19    (410 ILCS 705/40-5)
20    Sec. 40-5. Issuance of licenses.
21    (a) The Department shall issue transporting licenses
22through a process provided for in this Article no later than
23July 1, 2020. Entities awarded a license under this Section

 

 

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1may defer paying the associated license fee for a period of no
2more than 2 years.
3    (b) The Department shall make the application for
4transporting organization licenses available on January 7,
52020 and shall receive such applications no later than March
615, 2020. The Department of Agriculture shall make available
7such applications on every January 7 thereafter or if that
8date falls on a weekend or holiday, the business day
9immediately succeeding the weekend or holiday and shall
10receive such applications no later than March 15 or the
11succeeding business day thereafter.
12(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
13
Article 13.

 
14    Section 13-5. The Cannabis Regulation and Tax Act is
15amended by changing Section 40-5 as follows:
 
16    (410 ILCS 705/40-5)
17    Sec. 40-5. Issuance of licenses.
18    (a) The Department shall issue transporting licenses
19through a process provided for in this Article no later than
20July 1, 2020.
21    (b) The Department shall make the application for
22transporting organization licenses available on January 7,
232020 and shall receive such applications no later than March

 

 

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115, 2020. The Department of Agriculture shall make available
2such applications on every January 7 thereafter or if that
3date falls on a weekend or holiday, the business day
4immediately succeeding the weekend or holiday and shall
5receive such applications no later than March 15 or the
6succeeding business day thereafter.
7    (c) From January 1, 2024 through January 1, 2026, the
8Department shall not issue any transporting licenses other
9than those issued under subsection (a) before the effective
10date of this amendatory Act of the 103rd General Assembly.
11(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
12
Article 14.

 
13    Section 14-5. The Illinois Income Tax Act is amended by
14changing Section 203 as follows:
 
15    (35 ILCS 5/203)  (from Ch. 120, par. 2-203)
16    Sec. 203. Base income defined.
17    (a) Individuals.
18        (1) In general. In the case of an individual, base
19    income means an amount equal to the taxpayer's adjusted
20    gross income for the taxable year as modified by paragraph
21    (2).
22        (2) Modifications. The adjusted gross income referred
23    to in paragraph (1) shall be modified by adding thereto

 

 

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1    the sum of the following amounts:
2            (A) An amount equal to all amounts paid or accrued
3        to the taxpayer as interest or dividends during the
4        taxable year to the extent excluded from gross income
5        in the computation of adjusted gross income, except
6        stock dividends of qualified public utilities
7        described in Section 305(e) of the Internal Revenue
8        Code;
9            (B) An amount equal to the amount of tax imposed by
10        this Act to the extent deducted from gross income in
11        the computation of adjusted gross income for the
12        taxable year;
13            (C) An amount equal to the amount received during
14        the taxable year as a recovery or refund of real
15        property taxes paid with respect to the taxpayer's
16        principal residence under the Revenue Act of 1939 and
17        for which a deduction was previously taken under
18        subparagraph (L) of this paragraph (2) prior to July
19        1, 1991, the retrospective application date of Article
20        4 of Public Act 87-17. In the case of multi-unit or
21        multi-use structures and farm dwellings, the taxes on
22        the taxpayer's principal residence shall be that
23        portion of the total taxes for the entire property
24        which is attributable to such principal residence;
25            (D) An amount equal to the amount of the capital
26        gain deduction allowable under the Internal Revenue

 

 

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1        Code, to the extent deducted from gross income in the
2        computation of adjusted gross income;
3            (D-5) An amount, to the extent not included in
4        adjusted gross income, equal to the amount of money
5        withdrawn by the taxpayer in the taxable year from a
6        medical care savings account and the interest earned
7        on the account in the taxable year of a withdrawal
8        pursuant to subsection (b) of Section 20 of the
9        Medical Care Savings Account Act or subsection (b) of
10        Section 20 of the Medical Care Savings Account Act of
11        2000;
12            (D-10) For taxable years ending after December 31,
13        1997, an amount equal to any eligible remediation
14        costs that the individual deducted in computing
15        adjusted gross income and for which the individual
16        claims a credit under subsection (l) of Section 201;
17            (D-15) For taxable years 2001 and thereafter, an
18        amount equal to the bonus depreciation deduction taken
19        on the taxpayer's federal income tax return for the
20        taxable year under subsection (k) of Section 168 of
21        the Internal Revenue Code;
22            (D-16) If the taxpayer sells, transfers, abandons,
23        or otherwise disposes of property for which the
24        taxpayer was required in any taxable year to make an
25        addition modification under subparagraph (D-15), then
26        an amount equal to the aggregate amount of the

 

 

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1        deductions taken in all taxable years under
2        subparagraph (Z) with respect to that property.
3            If the taxpayer continues to own property through
4        the last day of the last tax year for which a
5        subtraction is allowed with respect to that property
6        under subparagraph (Z) and for which the taxpayer was
7        allowed in any taxable year to make a subtraction
8        modification under subparagraph (Z), then an amount
9        equal to that subtraction modification.
10            The taxpayer is required to make the addition
11        modification under this subparagraph only once with
12        respect to any one piece of property;
13            (D-17) An amount equal to the amount otherwise
14        allowed as a deduction in computing base income for
15        interest paid, accrued, or incurred, directly or
16        indirectly, (i) for taxable years ending on or after
17        December 31, 2004, to a foreign person who would be a
18        member of the same unitary business group but for the
19        fact that foreign person's business activity outside
20        the United States is 80% or more of the foreign
21        person's total business activity and (ii) for taxable
22        years ending on or after December 31, 2008, to a person
23        who would be a member of the same unitary business
24        group but for the fact that the person is prohibited
25        under Section 1501(a)(27) from being included in the
26        unitary business group because he or she is ordinarily

 

 

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1        required to apportion business income under different
2        subsections of Section 304. The addition modification
3        required by this subparagraph shall be reduced to the
4        extent that dividends were included in base income of
5        the unitary group for the same taxable year and
6        received by the taxpayer or by a member of the
7        taxpayer's unitary business group (including amounts
8        included in gross income under Sections 951 through
9        964 of the Internal Revenue Code and amounts included
10        in gross income under Section 78 of the Internal
11        Revenue Code) with respect to the stock of the same
12        person to whom the interest was paid, accrued, or
13        incurred.
14            This paragraph shall not apply to the following:
15                (i) an item of interest paid, accrued, or
16            incurred, directly or indirectly, to a person who
17            is subject in a foreign country or state, other
18            than a state which requires mandatory unitary
19            reporting, to a tax on or measured by net income
20            with respect to such interest; or
21                (ii) an item of interest paid, accrued, or
22            incurred, directly or indirectly, to a person if
23            the taxpayer can establish, based on a
24            preponderance of the evidence, both of the
25            following:
26                    (a) the person, during the same taxable

 

 

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1                year, paid, accrued, or incurred, the interest
2                to a person that is not a related member, and
3                    (b) the transaction giving rise to the
4                interest expense between the taxpayer and the
5                person did not have as a principal purpose the
6                avoidance of Illinois income tax, and is paid
7                pursuant to a contract or agreement that
8                reflects an arm's-length interest rate and
9                terms; or
10                (iii) the taxpayer can establish, based on
11            clear and convincing evidence, that the interest
12            paid, accrued, or incurred relates to a contract
13            or agreement entered into at arm's-length rates
14            and terms and the principal purpose for the
15            payment is not federal or Illinois tax avoidance;
16            or
17                (iv) an item of interest paid, accrued, or
18            incurred, directly or indirectly, to a person if
19            the taxpayer establishes by clear and convincing
20            evidence that the adjustments are unreasonable; or
21            if the taxpayer and the Director agree in writing
22            to the application or use of an alternative method
23            of apportionment under Section 304(f).
24                Nothing in this subsection shall preclude the
25            Director from making any other adjustment
26            otherwise allowed under Section 404 of this Act

 

 

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1            for any tax year beginning after the effective
2            date of this amendment provided such adjustment is
3            made pursuant to regulation adopted by the
4            Department and such regulations provide methods
5            and standards by which the Department will utilize
6            its authority under Section 404 of this Act;
7            (D-18) An amount equal to the amount of intangible
8        expenses and costs otherwise allowed as a deduction in
9        computing base income, and that were paid, accrued, or
10        incurred, directly or indirectly, (i) for taxable
11        years ending on or after December 31, 2004, to a
12        foreign person who would be a member of the same
13        unitary business group but for the fact that the
14        foreign person's business activity outside the United
15        States is 80% or more of that person's total business
16        activity and (ii) for taxable years ending on or after
17        December 31, 2008, to a person who would be a member of
18        the same unitary business group but for the fact that
19        the person is prohibited under Section 1501(a)(27)
20        from being included in the unitary business group
21        because he or she is ordinarily required to apportion
22        business income under different subsections of Section
23        304. The addition modification required by this
24        subparagraph shall be reduced to the extent that
25        dividends were included in base income of the unitary
26        group for the same taxable year and received by the

 

 

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1        taxpayer or by a member of the taxpayer's unitary
2        business group (including amounts included in gross
3        income under Sections 951 through 964 of the Internal
4        Revenue Code and amounts included in gross income
5        under Section 78 of the Internal Revenue Code) with
6        respect to the stock of the same person to whom the
7        intangible expenses and costs were directly or
8        indirectly paid, incurred, or accrued. The preceding
9        sentence does not apply to the extent that the same
10        dividends caused a reduction to the addition
11        modification required under Section 203(a)(2)(D-17) of
12        this Act. As used in this subparagraph, the term
13        "intangible expenses and costs" includes (1) expenses,
14        losses, and costs for, or related to, the direct or
15        indirect acquisition, use, maintenance or management,
16        ownership, sale, exchange, or any other disposition of
17        intangible property; (2) losses incurred, directly or
18        indirectly, from factoring transactions or discounting
19        transactions; (3) royalty, patent, technical, and
20        copyright fees; (4) licensing fees; and (5) other
21        similar expenses and costs. For purposes of this
22        subparagraph, "intangible property" includes patents,
23        patent applications, trade names, trademarks, service
24        marks, copyrights, mask works, trade secrets, and
25        similar types of intangible assets.
26            This paragraph shall not apply to the following:

 

 

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1                (i) any item of intangible expenses or costs
2            paid, accrued, or incurred, directly or
3            indirectly, from a transaction with a person who
4            is subject in a foreign country or state, other
5            than a state which requires mandatory unitary
6            reporting, to a tax on or measured by net income
7            with respect to such item; or
8                (ii) any item of intangible expense or cost
9            paid, accrued, or incurred, directly or
10            indirectly, if the taxpayer can establish, based
11            on a preponderance of the evidence, both of the
12            following:
13                    (a) the person during the same taxable
14                year paid, accrued, or incurred, the
15                intangible expense or cost to a person that is
16                not a related member, and
17                    (b) the transaction giving rise to the
18                intangible expense or cost between the
19                taxpayer and the person did not have as a
20                principal purpose the avoidance of Illinois
21                income tax, and is paid pursuant to a contract
22                or agreement that reflects arm's-length terms;
23                or
24                (iii) any item of intangible expense or cost
25            paid, accrued, or incurred, directly or
26            indirectly, from a transaction with a person if

 

 

10300SB1559ham001- 157 -LRB103 29878 BMS 62285 a

1            the taxpayer establishes by clear and convincing
2            evidence, that the adjustments are unreasonable;
3            or if the taxpayer and the Director agree in
4            writing to the application or use of an
5            alternative method of apportionment under Section
6            304(f);
7                Nothing in this subsection shall preclude the
8            Director from making any other adjustment
9            otherwise allowed under Section 404 of this Act
10            for any tax year beginning after the effective
11            date of this amendment provided such adjustment is
12            made pursuant to regulation adopted by the
13            Department and such regulations provide methods
14            and standards by which the Department will utilize
15            its authority under Section 404 of this Act;
16            (D-19) For taxable years ending on or after
17        December 31, 2008, an amount equal to the amount of
18        insurance premium expenses and costs otherwise allowed
19        as a deduction in computing base income, and that were
20        paid, accrued, or incurred, directly or indirectly, to
21        a person who would be a member of the same unitary
22        business group but for the fact that the person is
23        prohibited under Section 1501(a)(27) from being
24        included in the unitary business group because he or
25        she is ordinarily required to apportion business
26        income under different subsections of Section 304. The

 

 

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1        addition modification required by this subparagraph
2        shall be reduced to the extent that dividends were
3        included in base income of the unitary group for the
4        same taxable year and received by the taxpayer or by a
5        member of the taxpayer's unitary business group
6        (including amounts included in gross income under
7        Sections 951 through 964 of the Internal Revenue Code
8        and amounts included in gross income under Section 78
9        of the Internal Revenue Code) with respect to the
10        stock of the same person to whom the premiums and costs
11        were directly or indirectly paid, incurred, or
12        accrued. The preceding sentence does not apply to the
13        extent that the same dividends caused a reduction to
14        the addition modification required under Section
15        203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
16        Act;
17            (D-20) For taxable years beginning on or after
18        January 1, 2002 and ending on or before December 31,
19        2006, in the case of a distribution from a qualified
20        tuition program under Section 529 of the Internal
21        Revenue Code, other than (i) a distribution from a
22        College Savings Pool created under Section 16.5 of the
23        State Treasurer Act or (ii) a distribution from the
24        Illinois Prepaid Tuition Trust Fund, an amount equal
25        to the amount excluded from gross income under Section
26        529(c)(3)(B). For taxable years beginning on or after

 

 

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1        January 1, 2007, in the case of a distribution from a
2        qualified tuition program under Section 529 of the
3        Internal Revenue Code, other than (i) a distribution
4        from a College Savings Pool created under Section 16.5
5        of the State Treasurer Act, (ii) a distribution from
6        the Illinois Prepaid Tuition Trust Fund, or (iii) a
7        distribution from a qualified tuition program under
8        Section 529 of the Internal Revenue Code that (I)
9        adopts and determines that its offering materials
10        comply with the College Savings Plans Network's
11        disclosure principles and (II) has made reasonable
12        efforts to inform in-state residents of the existence
13        of in-state qualified tuition programs by informing
14        Illinois residents directly and, where applicable, to
15        inform financial intermediaries distributing the
16        program to inform in-state residents of the existence
17        of in-state qualified tuition programs at least
18        annually, an amount equal to the amount excluded from
19        gross income under Section 529(c)(3)(B).
20            For the purposes of this subparagraph (D-20), a
21        qualified tuition program has made reasonable efforts
22        if it makes disclosures (which may use the term
23        "in-state program" or "in-state plan" and need not
24        specifically refer to Illinois or its qualified
25        programs by name) (i) directly to prospective
26        participants in its offering materials or makes a

 

 

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1        public disclosure, such as a website posting; and (ii)
2        where applicable, to intermediaries selling the
3        out-of-state program in the same manner that the
4        out-of-state program distributes its offering
5        materials;
6            (D-20.5) For taxable years beginning on or after
7        January 1, 2018, in the case of a distribution from a
8        qualified ABLE program under Section 529A of the
9        Internal Revenue Code, other than a distribution from
10        a qualified ABLE program created under Section 16.6 of
11        the State Treasurer Act, an amount equal to the amount
12        excluded from gross income under Section 529A(c)(1)(B)
13        of the Internal Revenue Code;
14            (D-21) For taxable years beginning on or after
15        January 1, 2007, in the case of transfer of moneys from
16        a qualified tuition program under Section 529 of the
17        Internal Revenue Code that is administered by the
18        State to an out-of-state program, an amount equal to
19        the amount of moneys previously deducted from base
20        income under subsection (a)(2)(Y) of this Section;
21            (D-21.5) For taxable years beginning on or after
22        January 1, 2018, in the case of the transfer of moneys
23        from a qualified tuition program under Section 529 or
24        a qualified ABLE program under Section 529A of the
25        Internal Revenue Code that is administered by this
26        State to an ABLE account established under an

 

 

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1        out-of-state ABLE account program, an amount equal to
2        the contribution component of the transferred amount
3        that was previously deducted from base income under
4        subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
5        Section;
6            (D-22) For taxable years beginning on or after
7        January 1, 2009, and prior to January 1, 2018, in the
8        case of a nonqualified withdrawal or refund of moneys
9        from a qualified tuition program under Section 529 of
10        the Internal Revenue Code administered by the State
11        that is not used for qualified expenses at an eligible
12        education institution, an amount equal to the
13        contribution component of the nonqualified withdrawal
14        or refund that was previously deducted from base
15        income under subsection (a)(2)(y) of this Section,
16        provided that the withdrawal or refund did not result
17        from the beneficiary's death or disability. For
18        taxable years beginning on or after January 1, 2018:
19        (1) in the case of a nonqualified withdrawal or
20        refund, as defined under Section 16.5 of the State
21        Treasurer Act, of moneys from a qualified tuition
22        program under Section 529 of the Internal Revenue Code
23        administered by the State, an amount equal to the
24        contribution component of the nonqualified withdrawal
25        or refund that was previously deducted from base
26        income under subsection (a)(2)(Y) of this Section, and

 

 

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1        (2) in the case of a nonqualified withdrawal or refund
2        from a qualified ABLE program under Section 529A of
3        the Internal Revenue Code administered by the State
4        that is not used for qualified disability expenses, an
5        amount equal to the contribution component of the
6        nonqualified withdrawal or refund that was previously
7        deducted from base income under subsection (a)(2)(HH)
8        of this Section;
9            (D-23) An amount equal to the credit allowable to
10        the taxpayer under Section 218(a) of this Act,
11        determined without regard to Section 218(c) of this
12        Act;
13            (D-24) For taxable years ending on or after
14        December 31, 2017, an amount equal to the deduction
15        allowed under Section 199 of the Internal Revenue Code
16        for the taxable year;
17            (D-25) In the case of a resident, an amount equal
18        to the amount of tax for which a credit is allowed
19        pursuant to Section 201(p)(7) of this Act;
20    and by deducting from the total so obtained the sum of the
21    following amounts:
22            (E) For taxable years ending before December 31,
23        2001, any amount included in such total in respect of
24        any compensation (including but not limited to any
25        compensation paid or accrued to a serviceman while a
26        prisoner of war or missing in action) paid to a

 

 

10300SB1559ham001- 163 -LRB103 29878 BMS 62285 a

1        resident by reason of being on active duty in the Armed
2        Forces of the United States and in respect of any
3        compensation paid or accrued to a resident who as a
4        governmental employee was a prisoner of war or missing
5        in action, and in respect of any compensation paid to a
6        resident in 1971 or thereafter for annual training
7        performed pursuant to Sections 502 and 503, Title 32,
8        United States Code as a member of the Illinois
9        National Guard or, beginning with taxable years ending
10        on or after December 31, 2007, the National Guard of
11        any other state. For taxable years ending on or after
12        December 31, 2001, any amount included in such total
13        in respect of any compensation (including but not
14        limited to any compensation paid or accrued to a
15        serviceman while a prisoner of war or missing in
16        action) paid to a resident by reason of being a member
17        of any component of the Armed Forces of the United
18        States and in respect of any compensation paid or
19        accrued to a resident who as a governmental employee
20        was a prisoner of war or missing in action, and in
21        respect of any compensation paid to a resident in 2001
22        or thereafter by reason of being a member of the
23        Illinois National Guard or, beginning with taxable
24        years ending on or after December 31, 2007, the
25        National Guard of any other state. The provisions of
26        this subparagraph (E) are exempt from the provisions

 

 

10300SB1559ham001- 164 -LRB103 29878 BMS 62285 a

1        of Section 250;
2            (F) An amount equal to all amounts included in
3        such total pursuant to the provisions of Sections
4        402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
5        408 of the Internal Revenue Code, or included in such
6        total as distributions under the provisions of any
7        retirement or disability plan for employees of any
8        governmental agency or unit, or retirement payments to
9        retired partners, which payments are excluded in
10        computing net earnings from self employment by Section
11        1402 of the Internal Revenue Code and regulations
12        adopted pursuant thereto;
13            (G) The valuation limitation amount;
14            (H) An amount equal to the amount of any tax
15        imposed by this Act which was refunded to the taxpayer
16        and included in such total for the taxable year;
17            (I) An amount equal to all amounts included in
18        such total pursuant to the provisions of Section 111
19        of the Internal Revenue Code as a recovery of items
20        previously deducted from adjusted gross income in the
21        computation of taxable income;
22            (J) An amount equal to those dividends included in
23        such total which were paid by a corporation which
24        conducts business operations in a River Edge
25        Redevelopment Zone or zones created under the River
26        Edge Redevelopment Zone Act, and conducts

 

 

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1        substantially all of its operations in a River Edge
2        Redevelopment Zone or zones. This subparagraph (J) is
3        exempt from the provisions of Section 250;
4            (K) An amount equal to those dividends included in
5        such total that were paid by a corporation that
6        conducts business operations in a federally designated
7        Foreign Trade Zone or Sub-Zone and that is designated
8        a High Impact Business located in Illinois; provided
9        that dividends eligible for the deduction provided in
10        subparagraph (J) of paragraph (2) of this subsection
11        shall not be eligible for the deduction provided under
12        this subparagraph (K);
13            (L) For taxable years ending after December 31,
14        1983, an amount equal to all social security benefits
15        and railroad retirement benefits included in such
16        total pursuant to Sections 72(r) and 86 of the
17        Internal Revenue Code;
18            (M) With the exception of any amounts subtracted
19        under subparagraph (N), an amount equal to the sum of
20        all amounts disallowed as deductions by (i) Sections
21        171(a)(2) and 265(a)(2) of the Internal Revenue Code,
22        and all amounts of expenses allocable to interest and
23        disallowed as deductions by Section 265(a)(1) of the
24        Internal Revenue Code; and (ii) for taxable years
25        ending on or after August 13, 1999, Sections
26        171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the

 

 

10300SB1559ham001- 166 -LRB103 29878 BMS 62285 a

1        Internal Revenue Code, plus, for taxable years ending
2        on or after December 31, 2011, Section 45G(e)(3) of
3        the Internal Revenue Code and, for taxable years
4        ending on or after December 31, 2008, any amount
5        included in gross income under Section 87 of the
6        Internal Revenue Code; the provisions of this
7        subparagraph are exempt from the provisions of Section
8        250;
9            (N) An amount equal to all amounts included in
10        such total which are exempt from taxation by this
11        State either by reason of its statutes or Constitution
12        or by reason of the Constitution, treaties or statutes
13        of the United States; provided that, in the case of any
14        statute of this State that exempts income derived from
15        bonds or other obligations from the tax imposed under
16        this Act, the amount exempted shall be the interest
17        net of bond premium amortization;
18            (O) An amount equal to any contribution made to a
19        job training project established pursuant to the Tax
20        Increment Allocation Redevelopment Act;
21            (P) An amount equal to the amount of the deduction
22        used to compute the federal income tax credit for
23        restoration of substantial amounts held under claim of
24        right for the taxable year pursuant to Section 1341 of
25        the Internal Revenue Code or of any itemized deduction
26        taken from adjusted gross income in the computation of

 

 

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1        taxable income for restoration of substantial amounts
2        held under claim of right for the taxable year;
3            (Q) An amount equal to any amounts included in
4        such total, received by the taxpayer as an
5        acceleration in the payment of life, endowment or
6        annuity benefits in advance of the time they would
7        otherwise be payable as an indemnity for a terminal
8        illness;
9            (R) An amount equal to the amount of any federal or
10        State bonus paid to veterans of the Persian Gulf War;
11            (S) An amount, to the extent included in adjusted
12        gross income, equal to the amount of a contribution
13        made in the taxable year on behalf of the taxpayer to a
14        medical care savings account established under the
15        Medical Care Savings Account Act or the Medical Care
16        Savings Account Act of 2000 to the extent the
17        contribution is accepted by the account administrator
18        as provided in that Act;
19            (T) An amount, to the extent included in adjusted
20        gross income, equal to the amount of interest earned
21        in the taxable year on a medical care savings account
22        established under the Medical Care Savings Account Act
23        or the Medical Care Savings Account Act of 2000 on
24        behalf of the taxpayer, other than interest added
25        pursuant to item (D-5) of this paragraph (2);
26            (U) For one taxable year beginning on or after

 

 

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1        January 1, 1994, an amount equal to the total amount of
2        tax imposed and paid under subsections (a) and (b) of
3        Section 201 of this Act on grant amounts received by
4        the taxpayer under the Nursing Home Grant Assistance
5        Act during the taxpayer's taxable years 1992 and 1993;
6            (V) Beginning with tax years ending on or after
7        December 31, 1995 and ending with tax years ending on
8        or before December 31, 2004, an amount equal to the
9        amount paid by a taxpayer who is a self-employed
10        taxpayer, a partner of a partnership, or a shareholder
11        in a Subchapter S corporation for health insurance or
12        long-term care insurance for that taxpayer or that
13        taxpayer's spouse or dependents, to the extent that
14        the amount paid for that health insurance or long-term
15        care insurance may be deducted under Section 213 of
16        the Internal Revenue Code, has not been deducted on
17        the federal income tax return of the taxpayer, and
18        does not exceed the taxable income attributable to
19        that taxpayer's income, self-employment income, or
20        Subchapter S corporation income; except that no
21        deduction shall be allowed under this item (V) if the
22        taxpayer is eligible to participate in any health
23        insurance or long-term care insurance plan of an
24        employer of the taxpayer or the taxpayer's spouse. The
25        amount of the health insurance and long-term care
26        insurance subtracted under this item (V) shall be

 

 

10300SB1559ham001- 169 -LRB103 29878 BMS 62285 a

1        determined by multiplying total health insurance and
2        long-term care insurance premiums paid by the taxpayer
3        times a number that represents the fractional
4        percentage of eligible medical expenses under Section
5        213 of the Internal Revenue Code of 1986 not actually
6        deducted on the taxpayer's federal income tax return;
7            (W) For taxable years beginning on or after
8        January 1, 1998, all amounts included in the
9        taxpayer's federal gross income in the taxable year
10        from amounts converted from a regular IRA to a Roth
11        IRA. This paragraph is exempt from the provisions of
12        Section 250;
13            (X) For taxable year 1999 and thereafter, an
14        amount equal to the amount of any (i) distributions,
15        to the extent includible in gross income for federal
16        income tax purposes, made to the taxpayer because of
17        his or her status as a victim of persecution for racial
18        or religious reasons by Nazi Germany or any other Axis
19        regime or as an heir of the victim and (ii) items of
20        income, to the extent includible in gross income for
21        federal income tax purposes, attributable to, derived
22        from or in any way related to assets stolen from,
23        hidden from, or otherwise lost to a victim of
24        persecution for racial or religious reasons by Nazi
25        Germany or any other Axis regime immediately prior to,
26        during, and immediately after World War II, including,

 

 

10300SB1559ham001- 170 -LRB103 29878 BMS 62285 a

1        but not limited to, interest on the proceeds
2        receivable as insurance under policies issued to a
3        victim of persecution for racial or religious reasons
4        by Nazi Germany or any other Axis regime by European
5        insurance companies immediately prior to and during
6        World War II; provided, however, this subtraction from
7        federal adjusted gross income does not apply to assets
8        acquired with such assets or with the proceeds from
9        the sale of such assets; provided, further, this
10        paragraph shall only apply to a taxpayer who was the
11        first recipient of such assets after their recovery
12        and who is a victim of persecution for racial or
13        religious reasons by Nazi Germany or any other Axis
14        regime or as an heir of the victim. The amount of and
15        the eligibility for any public assistance, benefit, or
16        similar entitlement is not affected by the inclusion
17        of items (i) and (ii) of this paragraph in gross income
18        for federal income tax purposes. This paragraph is
19        exempt from the provisions of Section 250;
20            (Y) For taxable years beginning on or after
21        January 1, 2002 and ending on or before December 31,
22        2004, moneys contributed in the taxable year to a
23        College Savings Pool account under Section 16.5 of the
24        State Treasurer Act, except that amounts excluded from
25        gross income under Section 529(c)(3)(C)(i) of the
26        Internal Revenue Code shall not be considered moneys

 

 

10300SB1559ham001- 171 -LRB103 29878 BMS 62285 a

1        contributed under this subparagraph (Y). For taxable
2        years beginning on or after January 1, 2005, a maximum
3        of $10,000 contributed in the taxable year to (i) a
4        College Savings Pool account under Section 16.5 of the
5        State Treasurer Act or (ii) the Illinois Prepaid
6        Tuition Trust Fund, except that amounts excluded from
7        gross income under Section 529(c)(3)(C)(i) of the
8        Internal Revenue Code shall not be considered moneys
9        contributed under this subparagraph (Y). For purposes
10        of this subparagraph, contributions made by an
11        employer on behalf of an employee, or matching
12        contributions made by an employee, shall be treated as
13        made by the employee. This subparagraph (Y) is exempt
14        from the provisions of Section 250;
15            (Z) For taxable years 2001 and thereafter, for the
16        taxable year in which the bonus depreciation deduction
17        is taken on the taxpayer's federal income tax return
18        under subsection (k) of Section 168 of the Internal
19        Revenue Code and for each applicable taxable year
20        thereafter, an amount equal to "x", where:
21                (1) "y" equals the amount of the depreciation
22            deduction taken for the taxable year on the
23            taxpayer's federal income tax return on property
24            for which the bonus depreciation deduction was
25            taken in any year under subsection (k) of Section
26            168 of the Internal Revenue Code, but not

 

 

10300SB1559ham001- 172 -LRB103 29878 BMS 62285 a

1            including the bonus depreciation deduction;
2                (2) for taxable years ending on or before
3            December 31, 2005, "x" equals "y" multiplied by 30
4            and then divided by 70 (or "y" multiplied by
5            0.429); and
6                (3) for taxable years ending after December
7            31, 2005:
8                    (i) for property on which a bonus
9                depreciation deduction of 30% of the adjusted
10                basis was taken, "x" equals "y" multiplied by
11                30 and then divided by 70 (or "y" multiplied
12                by 0.429);
13                    (ii) for property on which a bonus
14                depreciation deduction of 50% of the adjusted
15                basis was taken, "x" equals "y" multiplied by
16                1.0;
17                    (iii) for property on which a bonus
18                depreciation deduction of 100% of the adjusted
19                basis was taken in a taxable year ending on or
20                after December 31, 2021, "x" equals the
21                depreciation deduction that would be allowed
22                on that property if the taxpayer had made the
23                election under Section 168(k)(7) of the
24                Internal Revenue Code to not claim bonus
25                depreciation on that property; and
26                    (iv) for property on which a bonus

 

 

10300SB1559ham001- 173 -LRB103 29878 BMS 62285 a

1                depreciation deduction of a percentage other
2                than 30%, 50% or 100% of the adjusted basis
3                was taken in a taxable year ending on or after
4                December 31, 2021, "x" equals "y" multiplied
5                by 100 times the percentage bonus depreciation
6                on the property (that is, 100(bonus%)) and
7                then divided by 100 times 1 minus the
8                percentage bonus depreciation on the property
9                (that is, 100(1–bonus%)).
10            The aggregate amount deducted under this
11        subparagraph in all taxable years for any one piece of
12        property may not exceed the amount of the bonus
13        depreciation deduction taken on that property on the
14        taxpayer's federal income tax return under subsection
15        (k) of Section 168 of the Internal Revenue Code. This
16        subparagraph (Z) is exempt from the provisions of
17        Section 250;
18            (AA) If the taxpayer sells, transfers, abandons,
19        or otherwise disposes of property for which the
20        taxpayer was required in any taxable year to make an
21        addition modification under subparagraph (D-15), then
22        an amount equal to that addition modification.
23            If the taxpayer continues to own property through
24        the last day of the last tax year for which a
25        subtraction is allowed with respect to that property
26        under subparagraph (Z) and for which the taxpayer was

 

 

10300SB1559ham001- 174 -LRB103 29878 BMS 62285 a

1        required in any taxable year to make an addition
2        modification under subparagraph (D-15), then an amount
3        equal to that addition modification.
4            The taxpayer is allowed to take the deduction
5        under this subparagraph only once with respect to any
6        one piece of property.
7            This subparagraph (AA) is exempt from the
8        provisions of Section 250;
9            (BB) Any amount included in adjusted gross income,
10        other than salary, received by a driver in a
11        ridesharing arrangement using a motor vehicle;
12            (CC) The amount of (i) any interest income (net of
13        the deductions allocable thereto) taken into account
14        for the taxable year with respect to a transaction
15        with a taxpayer that is required to make an addition
16        modification with respect to such transaction under
17        Section 203(a)(2)(D-17), 203(b)(2)(E-12),
18        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
19        the amount of that addition modification, and (ii) any
20        income from intangible property (net of the deductions
21        allocable thereto) taken into account for the taxable
22        year with respect to a transaction with a taxpayer
23        that is required to make an addition modification with
24        respect to such transaction under Section
25        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
26        203(d)(2)(D-8), but not to exceed the amount of that

 

 

10300SB1559ham001- 175 -LRB103 29878 BMS 62285 a

1        addition modification. This subparagraph (CC) is
2        exempt from the provisions of Section 250;
3            (DD) An amount equal to the interest income taken
4        into account for the taxable year (net of the
5        deductions allocable thereto) with respect to
6        transactions with (i) a foreign person who would be a
7        member of the taxpayer's unitary business group but
8        for the fact that the foreign person's business
9        activity outside the United States is 80% or more of
10        that person's total business activity and (ii) for
11        taxable years ending on or after December 31, 2008, to
12        a person who would be a member of the same unitary
13        business group but for the fact that the person is
14        prohibited under Section 1501(a)(27) from being
15        included in the unitary business group because he or
16        she is ordinarily required to apportion business
17        income under different subsections of Section 304, but
18        not to exceed the addition modification required to be
19        made for the same taxable year under Section
20        203(a)(2)(D-17) for interest paid, accrued, or
21        incurred, directly or indirectly, to the same person.
22        This subparagraph (DD) is exempt from the provisions
23        of Section 250;
24            (EE) An amount equal to the income from intangible
25        property taken into account for the taxable year (net
26        of the deductions allocable thereto) with respect to

 

 

10300SB1559ham001- 176 -LRB103 29878 BMS 62285 a

1        transactions with (i) a foreign person who would be a
2        member of the taxpayer's unitary business group but
3        for the fact that the foreign person's business
4        activity outside the United States is 80% or more of
5        that person's total business activity and (ii) for
6        taxable years ending on or after December 31, 2008, to
7        a person who would be a member of the same unitary
8        business group but for the fact that the person is
9        prohibited under Section 1501(a)(27) from being
10        included in the unitary business group because he or
11        she is ordinarily required to apportion business
12        income under different subsections of Section 304, but
13        not to exceed the addition modification required to be
14        made for the same taxable year under Section
15        203(a)(2)(D-18) for intangible expenses and costs
16        paid, accrued, or incurred, directly or indirectly, to
17        the same foreign person. This subparagraph (EE) is
18        exempt from the provisions of Section 250;
19            (FF) An amount equal to any amount awarded to the
20        taxpayer during the taxable year by the Court of
21        Claims under subsection (c) of Section 8 of the Court
22        of Claims Act for time unjustly served in a State
23        prison. This subparagraph (FF) is exempt from the
24        provisions of Section 250;
25            (GG) For taxable years ending on or after December
26        31, 2011, in the case of a taxpayer who was required to

 

 

10300SB1559ham001- 177 -LRB103 29878 BMS 62285 a

1        add back any insurance premiums under Section
2        203(a)(2)(D-19), such taxpayer may elect to subtract
3        that part of a reimbursement received from the
4        insurance company equal to the amount of the expense
5        or loss (including expenses incurred by the insurance
6        company) that would have been taken into account as a
7        deduction for federal income tax purposes if the
8        expense or loss had been uninsured. If a taxpayer
9        makes the election provided for by this subparagraph
10        (GG), the insurer to which the premiums were paid must
11        add back to income the amount subtracted by the
12        taxpayer pursuant to this subparagraph (GG). This
13        subparagraph (GG) is exempt from the provisions of
14        Section 250;
15            (HH) For taxable years beginning on or after
16        January 1, 2018 and prior to January 1, 2028, a maximum
17        of $10,000 contributed in the taxable year to a
18        qualified ABLE account under Section 16.6 of the State
19        Treasurer Act, except that amounts excluded from gross
20        income under Section 529(c)(3)(C)(i) or Section
21        529A(c)(1)(C) of the Internal Revenue Code shall not
22        be considered moneys contributed under this
23        subparagraph (HH). For purposes of this subparagraph
24        (HH), contributions made by an employer on behalf of
25        an employee, or matching contributions made by an
26        employee, shall be treated as made by the employee;

 

 

10300SB1559ham001- 178 -LRB103 29878 BMS 62285 a

1        and
2            (II) For taxable years that begin on or after
3        January 1, 2021 and begin before January 1, 2026, the
4        amount that is included in the taxpayer's federal
5        adjusted gross income pursuant to Section 61 of the
6        Internal Revenue Code as discharge of indebtedness
7        attributable to student loan forgiveness and that is
8        not excluded from the taxpayer's federal adjusted
9        gross income pursuant to paragraph (5) of subsection
10        (f) of Section 108 of the Internal Revenue Code; and .
11            (JJ) For taxable years beginning on or after
12        January 1, 2023, for any cannabis establishment
13        operating in this State and licensed under the
14        Cannabis Regulation and Tax Act or any cannabis
15        cultivation center or medical cannabis dispensing
16        organization operating in this State and licensed
17        under the Compassionate Use of Medical Cannabis
18        Program Act, an amount equal to the deductions that
19        were disallowed under Section 280E of the Internal
20        Revenue Code for the taxable year and that would not be
21        added back under this subsection. The provisions of
22        this subparagraph (JJ) are exempt from the provisions
23        of Section 250.
 
24    (b) Corporations.
25        (1) In general. In the case of a corporation, base

 

 

10300SB1559ham001- 179 -LRB103 29878 BMS 62285 a

1    income means an amount equal to the taxpayer's taxable
2    income for the taxable year as modified by paragraph (2).
3        (2) Modifications. The taxable income referred to in
4    paragraph (1) shall be modified by adding thereto the sum
5    of the following amounts:
6            (A) An amount equal to all amounts paid or accrued
7        to the taxpayer as interest and all distributions
8        received from regulated investment companies during
9        the taxable year to the extent excluded from gross
10        income in the computation of taxable income;
11            (B) An amount equal to the amount of tax imposed by
12        this Act to the extent deducted from gross income in
13        the computation of taxable income for the taxable
14        year;
15            (C) In the case of a regulated investment company,
16        an amount equal to the excess of (i) the net long-term
17        capital gain for the taxable year, over (ii) the
18        amount of the capital gain dividends designated as
19        such in accordance with Section 852(b)(3)(C) of the
20        Internal Revenue Code and any amount designated under
21        Section 852(b)(3)(D) of the Internal Revenue Code,
22        attributable to the taxable year (this amendatory Act
23        of 1995 (Public Act 89-89) is declarative of existing
24        law and is not a new enactment);
25            (D) The amount of any net operating loss deduction
26        taken in arriving at taxable income, other than a net

 

 

10300SB1559ham001- 180 -LRB103 29878 BMS 62285 a

1        operating loss carried forward from a taxable year
2        ending prior to December 31, 1986;
3            (E) For taxable years in which a net operating
4        loss carryback or carryforward from a taxable year
5        ending prior to December 31, 1986 is an element of
6        taxable income under paragraph (1) of subsection (e)
7        or subparagraph (E) of paragraph (2) of subsection
8        (e), the amount by which addition modifications other
9        than those provided by this subparagraph (E) exceeded
10        subtraction modifications in such earlier taxable
11        year, with the following limitations applied in the
12        order that they are listed:
13                (i) the addition modification relating to the
14            net operating loss carried back or forward to the
15            taxable year from any taxable year ending prior to
16            December 31, 1986 shall be reduced by the amount
17            of addition modification under this subparagraph
18            (E) which related to that net operating loss and
19            which was taken into account in calculating the
20            base income of an earlier taxable year, and
21                (ii) the addition modification relating to the
22            net operating loss carried back or forward to the
23            taxable year from any taxable year ending prior to
24            December 31, 1986 shall not exceed the amount of
25            such carryback or carryforward;
26            For taxable years in which there is a net

 

 

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1        operating loss carryback or carryforward from more
2        than one other taxable year ending prior to December
3        31, 1986, the addition modification provided in this
4        subparagraph (E) shall be the sum of the amounts
5        computed independently under the preceding provisions
6        of this subparagraph (E) for each such taxable year;
7            (E-5) For taxable years ending after December 31,
8        1997, an amount equal to any eligible remediation
9        costs that the corporation deducted in computing
10        adjusted gross income and for which the corporation
11        claims a credit under subsection (l) of Section 201;
12            (E-10) For taxable years 2001 and thereafter, an
13        amount equal to the bonus depreciation deduction taken
14        on the taxpayer's federal income tax return for the
15        taxable year under subsection (k) of Section 168 of
16        the Internal Revenue Code;
17            (E-11) If the taxpayer sells, transfers, abandons,
18        or otherwise disposes of property for which the
19        taxpayer was required in any taxable year to make an
20        addition modification under subparagraph (E-10), then
21        an amount equal to the aggregate amount of the
22        deductions taken in all taxable years under
23        subparagraph (T) with respect to that property.
24            If the taxpayer continues to own property through
25        the last day of the last tax year for which a
26        subtraction is allowed with respect to that property

 

 

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1        under subparagraph (T) and for which the taxpayer was
2        allowed in any taxable year to make a subtraction
3        modification under subparagraph (T), then an amount
4        equal to that subtraction modification.
5            The taxpayer is required to make the addition
6        modification under this subparagraph only once with
7        respect to any one piece of property;
8            (E-12) An amount equal to the amount otherwise
9        allowed as a deduction in computing base income for
10        interest paid, accrued, or incurred, directly or
11        indirectly, (i) for taxable years ending on or after
12        December 31, 2004, to a foreign person who would be a
13        member of the same unitary business group but for the
14        fact the foreign person's business activity outside
15        the United States is 80% or more of the foreign
16        person's total business activity and (ii) for taxable
17        years ending on or after December 31, 2008, to a person
18        who would be a member of the same unitary business
19        group but for the fact that the person is prohibited
20        under Section 1501(a)(27) from being included in the
21        unitary business group because he or she is ordinarily
22        required to apportion business income under different
23        subsections of Section 304. The addition modification
24        required by this subparagraph shall be reduced to the
25        extent that dividends were included in base income of
26        the unitary group for the same taxable year and

 

 

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1        received by the taxpayer or by a member of the
2        taxpayer's unitary business group (including amounts
3        included in gross income pursuant to Sections 951
4        through 964 of the Internal Revenue Code and amounts
5        included in gross income under Section 78 of the
6        Internal Revenue Code) with respect to the stock of
7        the same person to whom the interest was paid,
8        accrued, or incurred.
9            This paragraph shall not apply to the following:
10                (i) an item of interest paid, accrued, or
11            incurred, directly or indirectly, to a person who
12            is subject in a foreign country or state, other
13            than a state which requires mandatory unitary
14            reporting, to a tax on or measured by net income
15            with respect to such interest; or
16                (ii) an item of interest paid, accrued, or
17            incurred, directly or indirectly, to a person if
18            the taxpayer can establish, based on a
19            preponderance of the evidence, both of the
20            following:
21                    (a) the person, during the same taxable
22                year, paid, accrued, or incurred, the interest
23                to a person that is not a related member, and
24                    (b) the transaction giving rise to the
25                interest expense between the taxpayer and the
26                person did not have as a principal purpose the

 

 

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1                avoidance of Illinois income tax, and is paid
2                pursuant to a contract or agreement that
3                reflects an arm's-length interest rate and
4                terms; or
5                (iii) the taxpayer can establish, based on
6            clear and convincing evidence, that the interest
7            paid, accrued, or incurred relates to a contract
8            or agreement entered into at arm's-length rates
9            and terms and the principal purpose for the
10            payment is not federal or Illinois tax avoidance;
11            or
12                (iv) an item of interest paid, accrued, or
13            incurred, directly or indirectly, to a person if
14            the taxpayer establishes by clear and convincing
15            evidence that the adjustments are unreasonable; or
16            if the taxpayer and the Director agree in writing
17            to the application or use of an alternative method
18            of apportionment under Section 304(f).
19                Nothing in this subsection shall preclude the
20            Director from making any other adjustment
21            otherwise allowed under Section 404 of this Act
22            for any tax year beginning after the effective
23            date of this amendment provided such adjustment is
24            made pursuant to regulation adopted by the
25            Department and such regulations provide methods
26            and standards by which the Department will utilize

 

 

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1            its authority under Section 404 of this Act;
2            (E-13) An amount equal to the amount of intangible
3        expenses and costs otherwise allowed as a deduction in
4        computing base income, and that were paid, accrued, or
5        incurred, directly or indirectly, (i) for taxable
6        years ending on or after December 31, 2004, to a
7        foreign person who would be a member of the same
8        unitary business group but for the fact that the
9        foreign person's business activity outside the United
10        States is 80% or more of that person's total business
11        activity and (ii) for taxable years ending on or after
12        December 31, 2008, to a person who would be a member of
13        the same unitary business group but for the fact that
14        the person is prohibited under Section 1501(a)(27)
15        from being included in the unitary business group
16        because he or she is ordinarily required to apportion
17        business income under different subsections of Section
18        304. The addition modification required by this
19        subparagraph shall be reduced to the extent that
20        dividends were included in base income of the unitary
21        group for the same taxable year and received by the
22        taxpayer or by a member of the taxpayer's unitary
23        business group (including amounts included in gross
24        income pursuant to Sections 951 through 964 of the
25        Internal Revenue Code and amounts included in gross
26        income under Section 78 of the Internal Revenue Code)

 

 

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1        with respect to the stock of the same person to whom
2        the intangible expenses and costs were directly or
3        indirectly paid, incurred, or accrued. The preceding
4        sentence shall not apply to the extent that the same
5        dividends caused a reduction to the addition
6        modification required under Section 203(b)(2)(E-12) of
7        this Act. As used in this subparagraph, the term
8        "intangible expenses and costs" includes (1) expenses,
9        losses, and costs for, or related to, the direct or
10        indirect acquisition, use, maintenance or management,
11        ownership, sale, exchange, or any other disposition of
12        intangible property; (2) losses incurred, directly or
13        indirectly, from factoring transactions or discounting
14        transactions; (3) royalty, patent, technical, and
15        copyright fees; (4) licensing fees; and (5) other
16        similar expenses and costs. For purposes of this
17        subparagraph, "intangible property" includes patents,
18        patent applications, trade names, trademarks, service
19        marks, copyrights, mask works, trade secrets, and
20        similar types of intangible assets.
21            This paragraph shall not apply to the following:
22                (i) any item of intangible expenses or costs
23            paid, accrued, or incurred, directly or
24            indirectly, from a transaction with a person who
25            is subject in a foreign country or state, other
26            than a state which requires mandatory unitary

 

 

10300SB1559ham001- 187 -LRB103 29878 BMS 62285 a

1            reporting, to a tax on or measured by net income
2            with respect to such item; or
3                (ii) any item of intangible expense or cost
4            paid, accrued, or incurred, directly or
5            indirectly, if the taxpayer can establish, based
6            on a preponderance of the evidence, both of the
7            following:
8                    (a) the person during the same taxable
9                year paid, accrued, or incurred, the
10                intangible expense or cost to a person that is
11                not a related member, and
12                    (b) the transaction giving rise to the
13                intangible expense or cost between the
14                taxpayer and the person did not have as a
15                principal purpose the avoidance of Illinois
16                income tax, and is paid pursuant to a contract
17                or agreement that reflects arm's-length terms;
18                or
19                (iii) any item of intangible expense or cost
20            paid, accrued, or incurred, directly or
21            indirectly, from a transaction with a person if
22            the taxpayer establishes by clear and convincing
23            evidence, that the adjustments are unreasonable;
24            or if the taxpayer and the Director agree in
25            writing to the application or use of an
26            alternative method of apportionment under Section

 

 

10300SB1559ham001- 188 -LRB103 29878 BMS 62285 a

1            304(f);
2                Nothing in this subsection shall preclude the
3            Director from making any other adjustment
4            otherwise allowed under Section 404 of this Act
5            for any tax year beginning after the effective
6            date of this amendment provided such adjustment is
7            made pursuant to regulation adopted by the
8            Department and such regulations provide methods
9            and standards by which the Department will utilize
10            its authority under Section 404 of this Act;
11            (E-14) For taxable years ending on or after
12        December 31, 2008, an amount equal to the amount of
13        insurance premium expenses and costs otherwise allowed
14        as a deduction in computing base income, and that were
15        paid, accrued, or incurred, directly or indirectly, to
16        a person who would be a member of the same unitary
17        business group but for the fact that the person is
18        prohibited under Section 1501(a)(27) from being
19        included in the unitary business group because he or
20        she is ordinarily required to apportion business
21        income under different subsections of Section 304. The
22        addition modification required by this subparagraph
23        shall be reduced to the extent that dividends were
24        included in base income of the unitary group for the
25        same taxable year and received by the taxpayer or by a
26        member of the taxpayer's unitary business group

 

 

10300SB1559ham001- 189 -LRB103 29878 BMS 62285 a

1        (including amounts included in gross income under
2        Sections 951 through 964 of the Internal Revenue Code
3        and amounts included in gross income under Section 78
4        of the Internal Revenue Code) with respect to the
5        stock of the same person to whom the premiums and costs
6        were directly or indirectly paid, incurred, or
7        accrued. The preceding sentence does not apply to the
8        extent that the same dividends caused a reduction to
9        the addition modification required under Section
10        203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
11        Act;
12            (E-15) For taxable years beginning after December
13        31, 2008, any deduction for dividends paid by a
14        captive real estate investment trust that is allowed
15        to a real estate investment trust under Section
16        857(b)(2)(B) of the Internal Revenue Code for
17        dividends paid;
18            (E-16) An amount equal to the credit allowable to
19        the taxpayer under Section 218(a) of this Act,
20        determined without regard to Section 218(c) of this
21        Act;
22            (E-17) For taxable years ending on or after
23        December 31, 2017, an amount equal to the deduction
24        allowed under Section 199 of the Internal Revenue Code
25        for the taxable year;
26            (E-18) for taxable years beginning after December

 

 

10300SB1559ham001- 190 -LRB103 29878 BMS 62285 a

1        31, 2018, an amount equal to the deduction allowed
2        under Section 250(a)(1)(A) of the Internal Revenue
3        Code for the taxable year;
4            (E-19) for taxable years ending on or after June
5        30, 2021, an amount equal to the deduction allowed
6        under Section 250(a)(1)(B)(i) of the Internal Revenue
7        Code for the taxable year;
8            (E-20) for taxable years ending on or after June
9        30, 2021, an amount equal to the deduction allowed
10        under Sections 243(e) and 245A(a) of the Internal
11        Revenue Code for the taxable year.
12    and by deducting from the total so obtained the sum of the
13    following amounts:
14            (F) An amount equal to the amount of any tax
15        imposed by this Act which was refunded to the taxpayer
16        and included in such total for the taxable year;
17            (G) An amount equal to any amount included in such
18        total under Section 78 of the Internal Revenue Code;
19            (H) In the case of a regulated investment company,
20        an amount equal to the amount of exempt interest
21        dividends as defined in subsection (b)(5) of Section
22        852 of the Internal Revenue Code, paid to shareholders
23        for the taxable year;
24            (I) With the exception of any amounts subtracted
25        under subparagraph (J), an amount equal to the sum of
26        all amounts disallowed as deductions by (i) Sections

 

 

10300SB1559ham001- 191 -LRB103 29878 BMS 62285 a

1        171(a)(2) and 265(a)(2) and amounts disallowed as
2        interest expense by Section 291(a)(3) of the Internal
3        Revenue Code, and all amounts of expenses allocable to
4        interest and disallowed as deductions by Section
5        265(a)(1) of the Internal Revenue Code; and (ii) for
6        taxable years ending on or after August 13, 1999,
7        Sections 171(a)(2), 265, 280C, 291(a)(3), and
8        832(b)(5)(B)(i) of the Internal Revenue Code, plus,
9        for tax years ending on or after December 31, 2011,
10        amounts disallowed as deductions by Section 45G(e)(3)
11        of the Internal Revenue Code and, for taxable years
12        ending on or after December 31, 2008, any amount
13        included in gross income under Section 87 of the
14        Internal Revenue Code and the policyholders' share of
15        tax-exempt interest of a life insurance company under
16        Section 807(a)(2)(B) of the Internal Revenue Code (in
17        the case of a life insurance company with gross income
18        from a decrease in reserves for the tax year) or
19        Section 807(b)(1)(B) of the Internal Revenue Code (in
20        the case of a life insurance company allowed a
21        deduction for an increase in reserves for the tax
22        year); the provisions of this subparagraph are exempt
23        from the provisions of Section 250;
24            (J) An amount equal to all amounts included in
25        such total which are exempt from taxation by this
26        State either by reason of its statutes or Constitution

 

 

10300SB1559ham001- 192 -LRB103 29878 BMS 62285 a

1        or by reason of the Constitution, treaties or statutes
2        of the United States; provided that, in the case of any
3        statute of this State that exempts income derived from
4        bonds or other obligations from the tax imposed under
5        this Act, the amount exempted shall be the interest
6        net of bond premium amortization;
7            (K) An amount equal to those dividends included in
8        such total which were paid by a corporation which
9        conducts business operations in a River Edge
10        Redevelopment Zone or zones created under the River
11        Edge Redevelopment Zone Act and conducts substantially
12        all of its operations in a River Edge Redevelopment
13        Zone or zones. This subparagraph (K) is exempt from
14        the provisions of Section 250;
15            (L) An amount equal to those dividends included in
16        such total that were paid by a corporation that
17        conducts business operations in a federally designated
18        Foreign Trade Zone or Sub-Zone and that is designated
19        a High Impact Business located in Illinois; provided
20        that dividends eligible for the deduction provided in
21        subparagraph (K) of paragraph 2 of this subsection
22        shall not be eligible for the deduction provided under
23        this subparagraph (L);
24            (M) For any taxpayer that is a financial
25        organization within the meaning of Section 304(c) of
26        this Act, an amount included in such total as interest

 

 

10300SB1559ham001- 193 -LRB103 29878 BMS 62285 a

1        income from a loan or loans made by such taxpayer to a
2        borrower, to the extent that such a loan is secured by
3        property which is eligible for the River Edge
4        Redevelopment Zone Investment Credit. To determine the
5        portion of a loan or loans that is secured by property
6        eligible for a Section 201(f) investment credit to the
7        borrower, the entire principal amount of the loan or
8        loans between the taxpayer and the borrower should be
9        divided into the basis of the Section 201(f)
10        investment credit property which secures the loan or
11        loans, using for this purpose the original basis of
12        such property on the date that it was placed in service
13        in the River Edge Redevelopment Zone. The subtraction
14        modification available to the taxpayer in any year
15        under this subsection shall be that portion of the
16        total interest paid by the borrower with respect to
17        such loan attributable to the eligible property as
18        calculated under the previous sentence. This
19        subparagraph (M) is exempt from the provisions of
20        Section 250;
21            (M-1) For any taxpayer that is a financial
22        organization within the meaning of Section 304(c) of
23        this Act, an amount included in such total as interest
24        income from a loan or loans made by such taxpayer to a
25        borrower, to the extent that such a loan is secured by
26        property which is eligible for the High Impact

 

 

10300SB1559ham001- 194 -LRB103 29878 BMS 62285 a

1        Business Investment Credit. To determine the portion
2        of a loan or loans that is secured by property eligible
3        for a Section 201(h) investment credit to the
4        borrower, the entire principal amount of the loan or
5        loans between the taxpayer and the borrower should be
6        divided into the basis of the Section 201(h)
7        investment credit property which secures the loan or
8        loans, using for this purpose the original basis of
9        such property on the date that it was placed in service
10        in a federally designated Foreign Trade Zone or
11        Sub-Zone located in Illinois. No taxpayer that is
12        eligible for the deduction provided in subparagraph
13        (M) of paragraph (2) of this subsection shall be
14        eligible for the deduction provided under this
15        subparagraph (M-1). The subtraction modification
16        available to taxpayers in any year under this
17        subsection shall be that portion of the total interest
18        paid by the borrower with respect to such loan
19        attributable to the eligible property as calculated
20        under the previous sentence;
21            (N) Two times any contribution made during the
22        taxable year to a designated zone organization to the
23        extent that the contribution (i) qualifies as a
24        charitable contribution under subsection (c) of
25        Section 170 of the Internal Revenue Code and (ii)
26        must, by its terms, be used for a project approved by

 

 

10300SB1559ham001- 195 -LRB103 29878 BMS 62285 a

1        the Department of Commerce and Economic Opportunity
2        under Section 11 of the Illinois Enterprise Zone Act
3        or under Section 10-10 of the River Edge Redevelopment
4        Zone Act. This subparagraph (N) is exempt from the
5        provisions of Section 250;
6            (O) An amount equal to: (i) 85% for taxable years
7        ending on or before December 31, 1992, or, a
8        percentage equal to the percentage allowable under
9        Section 243(a)(1) of the Internal Revenue Code of 1986
10        for taxable years ending after December 31, 1992, of
11        the amount by which dividends included in taxable
12        income and received from a corporation that is not
13        created or organized under the laws of the United
14        States or any state or political subdivision thereof,
15        including, for taxable years ending on or after
16        December 31, 1988, dividends received or deemed
17        received or paid or deemed paid under Sections 951
18        through 965 of the Internal Revenue Code, exceed the
19        amount of the modification provided under subparagraph
20        (G) of paragraph (2) of this subsection (b) which is
21        related to such dividends, and including, for taxable
22        years ending on or after December 31, 2008, dividends
23        received from a captive real estate investment trust;
24        plus (ii) 100% of the amount by which dividends,
25        included in taxable income and received, including,
26        for taxable years ending on or after December 31,

 

 

10300SB1559ham001- 196 -LRB103 29878 BMS 62285 a

1        1988, dividends received or deemed received or paid or
2        deemed paid under Sections 951 through 964 of the
3        Internal Revenue Code and including, for taxable years
4        ending on or after December 31, 2008, dividends
5        received from a captive real estate investment trust,
6        from any such corporation specified in clause (i) that
7        would but for the provisions of Section 1504(b)(3) of
8        the Internal Revenue Code be treated as a member of the
9        affiliated group which includes the dividend
10        recipient, exceed the amount of the modification
11        provided under subparagraph (G) of paragraph (2) of
12        this subsection (b) which is related to such
13        dividends. For taxable years ending on or after June
14        30, 2021, (i) for purposes of this subparagraph, the
15        term "dividend" does not include any amount treated as
16        a dividend under Section 1248 of the Internal Revenue
17        Code, and (ii) this subparagraph shall not apply to
18        dividends for which a deduction is allowed under
19        Section 245(a) of the Internal Revenue Code. This
20        subparagraph (O) is exempt from the provisions of
21        Section 250 of this Act;
22            (P) An amount equal to any contribution made to a
23        job training project established pursuant to the Tax
24        Increment Allocation Redevelopment Act;
25            (Q) An amount equal to the amount of the deduction
26        used to compute the federal income tax credit for

 

 

10300SB1559ham001- 197 -LRB103 29878 BMS 62285 a

1        restoration of substantial amounts held under claim of
2        right for the taxable year pursuant to Section 1341 of
3        the Internal Revenue Code;
4            (R) On and after July 20, 1999, in the case of an
5        attorney-in-fact with respect to whom an interinsurer
6        or a reciprocal insurer has made the election under
7        Section 835 of the Internal Revenue Code, 26 U.S.C.
8        835, an amount equal to the excess, if any, of the
9        amounts paid or incurred by that interinsurer or
10        reciprocal insurer in the taxable year to the
11        attorney-in-fact over the deduction allowed to that
12        interinsurer or reciprocal insurer with respect to the
13        attorney-in-fact under Section 835(b) of the Internal
14        Revenue Code for the taxable year; the provisions of
15        this subparagraph are exempt from the provisions of
16        Section 250;
17            (S) For taxable years ending on or after December
18        31, 1997, in the case of a Subchapter S corporation, an
19        amount equal to all amounts of income allocable to a
20        shareholder subject to the Personal Property Tax
21        Replacement Income Tax imposed by subsections (c) and
22        (d) of Section 201 of this Act, including amounts
23        allocable to organizations exempt from federal income
24        tax by reason of Section 501(a) of the Internal
25        Revenue Code. This subparagraph (S) is exempt from the
26        provisions of Section 250;

 

 

10300SB1559ham001- 198 -LRB103 29878 BMS 62285 a

1            (T) For taxable years 2001 and thereafter, for the
2        taxable year in which the bonus depreciation deduction
3        is taken on the taxpayer's federal income tax return
4        under subsection (k) of Section 168 of the Internal
5        Revenue Code and for each applicable taxable year
6        thereafter, an amount equal to "x", where:
7                (1) "y" equals the amount of the depreciation
8            deduction taken for the taxable year on the
9            taxpayer's federal income tax return on property
10            for which the bonus depreciation deduction was
11            taken in any year under subsection (k) of Section
12            168 of the Internal Revenue Code, but not
13            including the bonus depreciation deduction;
14                (2) for taxable years ending on or before
15            December 31, 2005, "x" equals "y" multiplied by 30
16            and then divided by 70 (or "y" multiplied by
17            0.429); and
18                (3) for taxable years ending after December
19            31, 2005:
20                    (i) for property on which a bonus
21                depreciation deduction of 30% of the adjusted
22                basis was taken, "x" equals "y" multiplied by
23                30 and then divided by 70 (or "y" multiplied
24                by 0.429);
25                    (ii) for property on which a bonus
26                depreciation deduction of 50% of the adjusted

 

 

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1                basis was taken, "x" equals "y" multiplied by
2                1.0;
3                    (iii) for property on which a bonus
4                depreciation deduction of 100% of the adjusted
5                basis was taken in a taxable year ending on or
6                after December 31, 2021, "x" equals the
7                depreciation deduction that would be allowed
8                on that property if the taxpayer had made the
9                election under Section 168(k)(7) of the
10                Internal Revenue Code to not claim bonus
11                depreciation on that property; and
12                    (iv) for property on which a bonus
13                depreciation deduction of a percentage other
14                than 30%, 50% or 100% of the adjusted basis
15                was taken in a taxable year ending on or after
16                December 31, 2021, "x" equals "y" multiplied
17                by 100 times the percentage bonus depreciation
18                on the property (that is, 100(bonus%)) and
19                then divided by 100 times 1 minus the
20                percentage bonus depreciation on the property
21                (that is, 100(1–bonus%)).
22            The aggregate amount deducted under this
23        subparagraph in all taxable years for any one piece of
24        property may not exceed the amount of the bonus
25        depreciation deduction taken on that property on the
26        taxpayer's federal income tax return under subsection

 

 

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1        (k) of Section 168 of the Internal Revenue Code. This
2        subparagraph (T) is exempt from the provisions of
3        Section 250;
4            (U) If the taxpayer sells, transfers, abandons, or
5        otherwise disposes of property for which the taxpayer
6        was required in any taxable year to make an addition
7        modification under subparagraph (E-10), then an amount
8        equal to that addition modification.
9            If the taxpayer continues to own property through
10        the last day of the last tax year for which a
11        subtraction is allowed with respect to that property
12        under subparagraph (T) and for which the taxpayer was
13        required in any taxable year to make an addition
14        modification under subparagraph (E-10), then an amount
15        equal to that addition modification.
16            The taxpayer is allowed to take the deduction
17        under this subparagraph only once with respect to any
18        one piece of property.
19            This subparagraph (U) is exempt from the
20        provisions of Section 250;
21            (V) The amount of: (i) any interest income (net of
22        the deductions allocable thereto) taken into account
23        for the taxable year with respect to a transaction
24        with a taxpayer that is required to make an addition
25        modification with respect to such transaction under
26        Section 203(a)(2)(D-17), 203(b)(2)(E-12),

 

 

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1        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
2        the amount of such addition modification, (ii) any
3        income from intangible property (net of the deductions
4        allocable thereto) taken into account for the taxable
5        year with respect to a transaction with a taxpayer
6        that is required to make an addition modification with
7        respect to such transaction under Section
8        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
9        203(d)(2)(D-8), but not to exceed the amount of such
10        addition modification, and (iii) any insurance premium
11        income (net of deductions allocable thereto) taken
12        into account for the taxable year with respect to a
13        transaction with a taxpayer that is required to make
14        an addition modification with respect to such
15        transaction under Section 203(a)(2)(D-19), Section
16        203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
17        203(d)(2)(D-9), but not to exceed the amount of that
18        addition modification. This subparagraph (V) is exempt
19        from the provisions of Section 250;
20            (W) An amount equal to the interest income taken
21        into account for the taxable year (net of the
22        deductions allocable thereto) with respect to
23        transactions with (i) a foreign person who would be a
24        member of the taxpayer's unitary business group but
25        for the fact that the foreign person's business
26        activity outside the United States is 80% or more of

 

 

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1        that person's total business activity and (ii) for
2        taxable years ending on or after December 31, 2008, to
3        a person who would be a member of the same unitary
4        business group but for the fact that the person is
5        prohibited under Section 1501(a)(27) from being
6        included in the unitary business group because he or
7        she is ordinarily required to apportion business
8        income under different subsections of Section 304, but
9        not to exceed the addition modification required to be
10        made for the same taxable year under Section
11        203(b)(2)(E-12) for interest paid, accrued, or
12        incurred, directly or indirectly, to the same person.
13        This subparagraph (W) is exempt from the provisions of
14        Section 250;
15            (X) An amount equal to the income from intangible
16        property taken into account for the taxable year (net
17        of the deductions allocable thereto) with respect to
18        transactions with (i) a foreign person who would be a
19        member of the taxpayer's unitary business group but
20        for the fact that the foreign person's business
21        activity outside the United States is 80% or more of
22        that person's total business activity and (ii) for
23        taxable years ending on or after December 31, 2008, to
24        a person who would be a member of the same unitary
25        business group but for the fact that the person is
26        prohibited under Section 1501(a)(27) from being

 

 

10300SB1559ham001- 203 -LRB103 29878 BMS 62285 a

1        included in the unitary business group because he or
2        she is ordinarily required to apportion business
3        income under different subsections of Section 304, but
4        not to exceed the addition modification required to be
5        made for the same taxable year under Section
6        203(b)(2)(E-13) for intangible expenses and costs
7        paid, accrued, or incurred, directly or indirectly, to
8        the same foreign person. This subparagraph (X) is
9        exempt from the provisions of Section 250;
10            (Y) For taxable years ending on or after December
11        31, 2011, in the case of a taxpayer who was required to
12        add back any insurance premiums under Section
13        203(b)(2)(E-14), such taxpayer may elect to subtract
14        that part of a reimbursement received from the
15        insurance company equal to the amount of the expense
16        or loss (including expenses incurred by the insurance
17        company) that would have been taken into account as a
18        deduction for federal income tax purposes if the
19        expense or loss had been uninsured. If a taxpayer
20        makes the election provided for by this subparagraph
21        (Y), the insurer to which the premiums were paid must
22        add back to income the amount subtracted by the
23        taxpayer pursuant to this subparagraph (Y). This
24        subparagraph (Y) is exempt from the provisions of
25        Section 250; and
26            (Z) The difference between the nondeductible

 

 

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1        controlled foreign corporation dividends under Section
2        965(e)(3) of the Internal Revenue Code over the
3        taxable income of the taxpayer, computed without
4        regard to Section 965(e)(2)(A) of the Internal Revenue
5        Code, and without regard to any net operating loss
6        deduction. This subparagraph (Z) is exempt from the
7        provisions of Section 250; and .
8            (AA) For taxable years beginning on or after
9        January 1, 2023, for any cannabis establishment
10        operating in this State and licensed under the
11        Cannabis Regulation and Tax Act or any cannabis
12        cultivation center or medical cannabis dispensing
13        organization operating in this State and licensed
14        under the Compassionate Use of Medical Cannabis
15        Program Act, an amount equal to the deductions that
16        were disallowed under Section 280E of the Internal
17        Revenue Code for the taxable year and that would not be
18        added back under this subsection. The provisions of
19        this subparagraph (AA) are exempt from the provisions
20        of Section 250.
21        (3) Special rule. For purposes of paragraph (2)(A),
22    "gross income" in the case of a life insurance company,
23    for tax years ending on and after December 31, 1994, and
24    prior to December 31, 2011, shall mean the gross
25    investment income for the taxable year and, for tax years
26    ending on or after December 31, 2011, shall mean all

 

 

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1    amounts included in life insurance gross income under
2    Section 803(a)(3) of the Internal Revenue Code.
 
3    (c) Trusts and estates.
4        (1) In general. In the case of a trust or estate, base
5    income means an amount equal to the taxpayer's taxable
6    income for the taxable year as modified by paragraph (2).
7        (2) Modifications. Subject to the provisions of
8    paragraph (3), the taxable income referred to in paragraph
9    (1) shall be modified by adding thereto the sum of the
10    following amounts:
11            (A) An amount equal to all amounts paid or accrued
12        to the taxpayer as interest or dividends during the
13        taxable year to the extent excluded from gross income
14        in the computation of taxable income;
15            (B) In the case of (i) an estate, $600; (ii) a
16        trust which, under