Illinois General Assembly - Full Text of HB4195
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Full Text of HB4195  102nd General Assembly

HB4195 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4195

 

Introduced 10/26/2021, by Rep. La Shawn K. Ford

 

SYNOPSIS AS INTRODUCED:
 
410 ILCS 705/1-10
410 ILCS 705/15-100
410 ILCS 705/30-30
410 ILCS 705/35-25

    Amends the Cannabis Regulation and Tax Act. Provides that premises may be shared between up to 3 craft growers, an infuser organization, a cultivation center, a dispensing organization, or any combination thereof, provided that specified requirements are met. Effective immediately.


LRB102 20848 CPF 29729 b

 

 

A BILL FOR

 

HB4195LRB102 20848 CPF 29729 b

1    AN ACT concerning health.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Cannabis Regulation and Tax Act is amended
5by changing Sections 1-10, 15-100, 30-30, and 35-25 as
6follows:
 
7    (410 ILCS 705/1-10)
8    Sec. 1-10. Definitions. In this Act:
9    "Adult Use Cultivation Center License" means a license
10issued by the Department of Agriculture that permits a person
11to act as a cultivation center under this Act and any
12administrative rule made in furtherance of this Act.
13    "Adult Use Dispensing Organization License" means a
14license issued by the Department of Financial and Professional
15Regulation that permits a person to act as a dispensing
16organization under this Act and any administrative rule made
17in furtherance of this Act.
18    "Advertise" means to engage in promotional activities
19including, but not limited to: newspaper, radio, Internet and
20electronic media, and television advertising; the distribution
21of fliers and circulars; billboard advertising; and the
22display of window and interior signs. "Advertise" does not
23mean exterior signage displaying only the name of the licensed

 

 

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1cannabis business establishment.
2    "BLS Region" means a region in Illinois used by the United
3States Bureau of Labor Statistics to gather and categorize
4certain employment and wage data. The 17 such regions in
5Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
6Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
7Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
8Rockford, St. Louis, Springfield, Northwest Illinois
9nonmetropolitan area, West Central Illinois nonmetropolitan
10area, East Central Illinois nonmetropolitan area, and South
11Illinois nonmetropolitan area.
12    "Cannabis" means marijuana, hashish, and other substances
13that are identified as including any parts of the plant
14Cannabis sativa and including derivatives or subspecies, such
15as indica, of all strains of cannabis, whether growing or not;
16the seeds thereof, the resin extracted from any part of the
17plant; and any compound, manufacture, salt, derivative,
18mixture, or preparation of the plant, its seeds, or resin,
19including tetrahydrocannabinol (THC) and all other naturally
20produced cannabinol derivatives, whether produced directly or
21indirectly by extraction; however, "cannabis" does not include
22the mature stalks of the plant, fiber produced from the
23stalks, oil or cake made from the seeds of the plant, any other
24compound, manufacture, salt, derivative, mixture, or
25preparation of the mature stalks (except the resin extracted
26from it), fiber, oil or cake, or the sterilized seed of the

 

 

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1plant that is incapable of germination. "Cannabis" does not
2include industrial hemp as defined and authorized under the
3Industrial Hemp Act. "Cannabis" also means cannabis flower,
4concentrate, and cannabis-infused products.
5    "Cannabis business establishment" means a cultivation
6center, craft grower, processing organization, infuser
7organization, dispensing organization, or transporting
8organization.
9    "Cannabis concentrate" means a product derived from
10cannabis that is produced by extracting cannabinoids,
11including tetrahydrocannabinol (THC), from the plant through
12the use of propylene glycol, glycerin, butter, olive oil or
13other typical cooking fats; water, ice, or dry ice; or butane,
14propane, CO2, ethanol, or isopropanol and with the intended
15use of smoking or making a cannabis-infused product. The use
16of any other solvent is expressly prohibited unless and until
17it is approved by the Department of Agriculture.
18    "Cannabis container" means a sealed, traceable, container,
19or package used for the purpose of containment of cannabis or
20cannabis-infused product during transportation.
21    "Cannabis flower" means marijuana, hashish, and other
22substances that are identified as including any parts of the
23plant Cannabis sativa and including derivatives or subspecies,
24such as indica, of all strains of cannabis; including raw
25kief, leaves, and buds, but not resin that has been extracted
26from any part of such plant; nor any compound, manufacture,

 

 

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1salt, derivative, mixture, or preparation of such plant, its
2seeds, or resin.
3    "Cannabis-infused product" means a beverage, food, oil,
4ointment, tincture, topical formulation, or another product
5containing cannabis or cannabis concentrate that is not
6intended to be smoked.
7    "Cannabis paraphernalia" means equipment, products, or
8materials intended to be used for planting, propagating,
9cultivating, growing, harvesting, manufacturing, producing,
10processing, preparing, testing, analyzing, packaging,
11repackaging, storing, containing, concealing, ingesting, or
12otherwise introducing cannabis into the human body.
13    "Cannabis plant monitoring system" or "plant monitoring
14system" means a system that includes, but is not limited to,
15testing and data collection established and maintained by the
16cultivation center, craft grower, or processing organization
17and that is available to the Department of Revenue, the
18Department of Agriculture, the Department of Financial and
19Professional Regulation, and the Department of State Police
20for the purposes of documenting each cannabis plant and
21monitoring plant development throughout the life cycle of a
22cannabis plant cultivated for the intended use by a customer
23from seed planting to final packaging.
24    "Cannabis testing facility" means an entity registered by
25the Department of Agriculture to test cannabis for potency and
26contaminants.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

HB4195- 14 -LRB102 20848 CPF 29729 b

1from within an adjacent property.
2    "Ownership and control" means ownership of at least 51% of
3the business, including corporate stock if a corporation, and
4control over the management and day-to-day operations of the
5business and an interest in the capital, assets, and profits
6and losses of the business proportionate to percentage of
7ownership.
8    "Person" means a natural individual, firm, partnership,
9association, joint stock company, joint venture, public or
10private corporation, limited liability company, or a receiver,
11executor, trustee, guardian, or other representative appointed
12by order of any court.
13    "Possession limit" means the amount of cannabis under
14Section 10-10 that may be possessed at any one time by a person
1521 years of age or older or who is a registered qualifying
16medical cannabis patient or caregiver under the Compassionate
17Use of Medical Cannabis Program Act.
18    "Principal officer" includes a cannabis business
19establishment applicant or licensed cannabis business
20establishment's board member, owner with more than 1% interest
21of the total cannabis business establishment or more than 5%
22interest of the total cannabis business establishment of a
23publicly traded company, president, vice president, secretary,
24treasurer, partner, officer, member, manager member, or person
25with a profit sharing, financial interest, or revenue sharing
26arrangement. The definition includes a person with authority

 

 

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

 

 

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1Applicant who has been awarded a conditional license under
2this Act to operate a cannabis business establishment.
3    "Resided" means an individual's primary residence was
4located within the relevant geographic area as established by
52 of the following:
6        (1) a signed lease agreement that includes the
7    applicant's name;
8        (2) a property deed that includes the applicant's
9    name;
10        (3) school records;
11        (4) a voter registration card;
12        (5) an Illinois driver's license, an Illinois
13    Identification Card, or an Illinois Person with a
14    Disability Identification Card;
15        (6) a paycheck stub;
16        (7) a utility bill;
17        (8) tax records; or
18        (9) any other proof of residency or other information
19    necessary to establish residence as provided by rule.
20    "Smoking" means the inhalation of smoke caused by the
21combustion of cannabis.
22    "Social Equity Applicant" means an applicant that is an
23Illinois resident that meets one of the following criteria:
24        (1) an applicant with at least 51% ownership and
25    control by one or more individuals who have resided for at
26    least 5 of the preceding 10 years in a Disproportionately

 

 

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1    Impacted Area;
2        (2) an applicant with at least 51% ownership and
3    control by one or more individuals who:
4            (i) have been arrested for, convicted of, or
5        adjudicated delinquent for any offense that is
6        eligible for expungement under this Act; or
7            (ii) is a member of an impacted family;
8        (3) for applicants with a minimum of 10 full-time
9    employees, an applicant with at least 51% of current
10    employees who:
11            (i) currently reside in a Disproportionately
12        Impacted Area; or
13            (ii) have been arrested for, convicted of, or
14        adjudicated delinquent for any offense that is
15        eligible for expungement under this Act or member of
16        an impacted family.
17    Nothing in this Act shall be construed to preempt or limit
18the duties of any employer under the Job Opportunities for
19Qualified Applicants Act. Nothing in this Act shall permit an
20employer to require an employee to disclose sealed or expunged
21offenses, unless otherwise required by law.
22    "Tincture" means a cannabis-infused solution, typically
23comprised of alcohol, glycerin, or vegetable oils, derived
24either directly from the cannabis plant or from a processed
25cannabis extract. A tincture is not an alcoholic liquor as
26defined in the Liquor Control Act of 1934. A tincture shall

 

 

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1include a calibrated dropper or other similar device capable
2of accurately measuring servings.
3    "Transporting organization" or "transporter" means an
4organization or business that is licensed by the Department of
5Agriculture to transport cannabis or cannabis-infused product
6on behalf of a cannabis business establishment or a community
7college licensed under the Community College Cannabis
8Vocational Training Pilot Program.
9    "Transporting organization agent" means a principal
10officer, board member, employee, or agent of a transporting
11organization.
12    "Transporting organization agent identification card"
13means a document issued by the Department of Agriculture that
14identifies a person as a transporting organization agent.
15    "Unit of local government" means any county, city,
16village, or incorporated town.
17    "Vegetative stage" means the stage of cultivation in which
18a cannabis plant is propagated to produce additional cannabis
19plants or reach a sufficient size for production. This
20includes seedlings, clones, mothers, and other immature
21cannabis plants as follows:
22        (1) if the cannabis plant is in an area that has not
23    been intentionally deprived of light for a period of time
24    intended to produce flower buds and induce maturation, it
25    has no more than 2 stigmas visible at each internode of the
26    cannabis plant; or

 

 

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1        (2) any cannabis plant that is cultivated solely for
2    the purpose of propagating clones and is never used to
3    produce cannabis.
4(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
5    (410 ILCS 705/15-100)
6    Sec. 15-100. Security.
7    (a) A dispensing organization shall implement security
8measures to deter and prevent entry into and theft of cannabis
9or currency.
10    (b) A dispensing organization shall submit any changes to
11the floor plan or security plan to the Department for
12pre-approval. All cannabis shall be maintained and stored in a
13restricted access area during construction.
14    (c) The dispensing organization shall implement security
15measures to protect the premises, purchasers, and dispensing
16organization agents including, but not limited to the
17following:
18        (1) Establish a locked door or barrier between the
19    facility's entrance and the limited access area;
20        (2) Prevent individuals from remaining on the premises
21    if they are not engaging in activity permitted by this Act
22    or rules;
23        (3) Develop a policy that addresses the maximum
24    capacity and purchaser flow in the waiting rooms and
25    limited access areas;

 

 

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1        (4) Dispose of cannabis in accordance with this Act
2    and rules;
3        (5) During hours of operation, store and dispense all
4    cannabis from the restricted access area. During
5    operational hours, cannabis shall be stored in an enclosed
6    locked room or cabinet and accessible only to specifically
7    authorized dispensing organization agents;
8        (6) When the dispensary is closed, store all cannabis
9    and currency in a reinforced vault room in the restricted
10    access area and in a manner as to prevent diversion,
11    theft, or loss;
12        (7) Keep the reinforced vault room and any other
13    equipment or cannabis storage areas securely locked and
14    protected from unauthorized entry;
15        (8) Keep an electronic daily log of dispensing
16    organization agents with access to the reinforced vault
17    room and knowledge of the access code or combination;
18        (9) Keep all locks and security equipment in good
19    working order;
20        (10) Maintain an operational security and alarm system
21    at all times;
22        (11) Prohibit keys, if applicable, from being left in
23    the locks, or stored or placed in a location accessible to
24    persons other than specifically authorized personnel;
25        (12) Prohibit accessibility of security measures,
26    including combination numbers, passwords, or electronic or

 

 

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

 

 

HB4195- 22 -LRB102 20848 CPF 29729 b

1have access or all licensees sharing a vault share more than
250% of the same ownership.
3    (f) A dispensing organization shall provide additional
4security as needed and in a manner appropriate for the
5community where it operates.
6    (g) Restricted access areas.
7        (1) All restricted access areas must be identified by
8    the posting of a sign that is a minimum of 12 inches by 12
9    inches and that states "Do Not Enter - Restricted Access
10    Area - Authorized Personnel Only" in lettering no smaller
11    than one inch in height.
12        (2) All restricted access areas shall be clearly
13    described in the floor plan of the premises, in the form
14    and manner determined by the Department, reflecting walls,
15    partitions, counters, and all areas of entry and exit. The
16    floor plan shall show all storage, disposal, and retail
17    sales areas.
18        (3) All restricted access areas must be secure, with
19    locking devices that prevent access from the limited
20    access areas.
21    (h) Security and alarm.
22        (1) A dispensing organization shall have an adequate
23    security plan and security system to prevent and detect
24    diversion, theft, or loss of cannabis, currency, or
25    unauthorized intrusion using commercial grade equipment
26    installed by an Illinois licensed private alarm contractor

 

 

HB4195- 23 -LRB102 20848 CPF 29729 b

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

 

 

HB4195- 24 -LRB102 20848 CPF 29729 b

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

 

 

HB4195- 25 -LRB102 20848 CPF 29729 b

1        (1) All monitors must be 19 inches or greater;
2        (2) Unobstructed video surveillance of all enclosed
3    dispensary areas, unless prohibited by law, including all
4    points of entry and exit that shall be appropriate for the
5    normal lighting conditions of the area under surveillance.
6    The cameras shall be directed so all areas are captured,
7    including, but not limited to, safes, vaults, sales areas,
8    and areas where cannabis is stored, handled, dispensed, or
9    destroyed. Cameras shall be angled to allow for facial
10    recognition, the capture of clear and certain
11    identification of any person entering or exiting the
12    dispensary area and in lighting sufficient during all
13    times of night or day;
14        (3) Unobstructed video surveillance of outside areas,
15    the storefront, and the parking lot, that shall be
16    appropriate for the normal lighting conditions of the area
17    under surveillance. Cameras shall be angled so as to allow
18    for the capture of facial recognition, clear and certain
19    identification of any person entering or exiting the
20    dispensary and the immediate surrounding area, and license
21    plates of vehicles in the parking lot;
22        (4) 24-hour recordings from all video cameras
23    available for immediate viewing by the Department upon
24    request. Recordings shall not be destroyed or altered and
25    shall be retained for at least 90 days. Recordings shall
26    be retained as long as necessary if the dispensing

 

 

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

 

 

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1        (9) The video surveillance system shall be operational
2    during a power outage with a 4-hour minimum battery
3    backup;
4        (10) A video camera or cameras recording at each
5    point-of-sale location allowing for the identification of
6    the dispensing organization agent distributing the
7    cannabis and any purchaser. The camera or cameras shall
8    capture the sale, the individuals and the computer
9    monitors used for the sale;
10        (11) A failure notification system that provides an
11    audible and visual notification of any failure in the
12    electronic video monitoring system; and
13        (12) All electronic video surveillance monitoring must
14    record at least the equivalent of 8 frames per second and
15    be available as recordings to the Department and the
16    Illinois State Police 24 hours a day via a secure
17    web-based portal with reverse functionality.
18    (j) The requirements contained in this Act are minimum
19requirements for operating a dispensing organization. The
20Department may establish additional requirements by rule.
21(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
22102-538, eff. 8-20-21.)
 
23    (410 ILCS 705/30-30)
24    Sec. 30-30. Craft grower requirements; prohibitions.
25    (a) The operating documents of a craft grower shall

 

 

HB4195- 28 -LRB102 20848 CPF 29729 b

1include procedures for the oversight of the craft grower, a
2cannabis plant monitoring system including a physical
3inventory recorded weekly, accurate recordkeeping, and a
4staffing plan.
5    (b) A craft grower shall implement a security plan
6reviewed by the Department of State Police that includes, but
7is not limited to: facility access controls, perimeter
8intrusion detection systems, personnel identification systems,
9and a 24-hour surveillance system to monitor the interior and
10exterior of the craft grower facility and that is accessible
11to authorized law enforcement and the Department of
12Agriculture in real time.
13    (c) All cultivation of cannabis by a craft grower must
14take place in an enclosed, locked facility at the physical
15address provided to the Department of Agriculture during the
16licensing process. The craft grower location shall only be
17accessed by the agents working for the craft grower, the
18Department of Agriculture staff performing inspections, the
19Department of Public Health staff performing inspections,
20State and local law enforcement or other emergency personnel,
21contractors working on jobs unrelated to cannabis, such as
22installing or maintaining security devices or performing
23electrical wiring, transporting organization agents as
24provided in this Act, or participants in the incubator
25program, individuals in a mentoring or educational program
26approved by the State, or other individuals as provided by

 

 

HB4195- 29 -LRB102 20848 CPF 29729 b

1rule. However, if a craft grower shares a premises with an
2infuser or dispensing organization, agents from those other
3licensees may access the craft grower portion of the premises
4if that is the location of common bathrooms, lunchrooms,
5locker rooms, or other areas of the building where work or
6cultivation of cannabis is not performed. At no time may an
7infuser or dispensing organization agent perform work at a
8craft grower without being a registered agent of the craft
9grower.
10    (d) A craft grower may not sell or distribute any cannabis
11to any person other than a cultivation center, a craft grower,
12an infuser organization, a dispensing organization, or as
13otherwise authorized by rule.
14    (e) A craft grower may not be located in an area zoned for
15residential use.
16    (f) A craft grower may not either directly or indirectly
17discriminate in price between different cannabis business
18establishments that are purchasing a like grade, strain,
19brand, and quality of cannabis or cannabis-infused product.
20Nothing in this subsection (f) prevents a craft grower from
21pricing cannabis differently based on differences in the cost
22of manufacturing or processing, the quantities sold, such as
23volume discounts, or the way the products are delivered.
24    (g) All cannabis harvested by a craft grower and intended
25for distribution to a dispensing organization must be entered
26into a data collection system, packaged and labeled under

 

 

HB4195- 30 -LRB102 20848 CPF 29729 b

1Section 55-21, and, if distribution is to a dispensing
2organization that does not share a premises with the
3dispensing organization receiving the cannabis, placed into a
4cannabis container for transport. All cannabis harvested by a
5craft grower and intended for distribution to a cultivation
6center, to an infuser organization, or to a craft grower with
7which it does not share a premises, must be packaged in a
8labeled cannabis container and entered into a data collection
9system before transport.
10    (h) Craft growers are subject to random inspections by the
11Department of Agriculture, local safety or health inspectors,
12and the Department of State Police.
13    (i) A craft grower agent shall notify local law
14enforcement, the Department of State Police, and the
15Department of Agriculture within 24 hours of the discovery of
16any loss or theft. Notification shall be made by phone, in
17person, or written or electronic communication.
18    (j) A craft grower shall comply with all State and any
19applicable federal rules and regulations regarding the use of
20pesticides.
21    (k) A craft grower or craft grower agent shall not
22transport cannabis or cannabis-infused products to any other
23cannabis business establishment without a transport
24organization license unless:
25        (i) If the craft grower is located in a county with a
26    population of 3,000,000 or more, the cannabis business

 

 

HB4195- 31 -LRB102 20848 CPF 29729 b

1    establishment receiving the cannabis is within 2,000 feet
2    of the property line of the craft grower;
3        (ii) If the craft grower is located in a county with a
4    population of more than 700,000 but fewer than 3,000,000,
5    the cannabis business establishment receiving the cannabis
6    is within 2 miles of the craft grower; or
7        (iii) If the craft grower is located in a county with a
8    population of fewer than 700,000, the cannabis business
9    establishment receiving the cannabis is within 15 miles of
10    the craft grower.
11    (l) A craft grower may enter into a contract with a
12transporting organization to transport cannabis to a
13cultivation center, a craft grower, an infuser organization, a
14dispensing organization, or a laboratory.
15    (m) No person or entity shall hold any legal, equitable,
16ownership, or beneficial interest, directly or indirectly, of
17more than 3 craft grower licenses. Further, no person or
18entity that is employed by, an agent of, or has a contract to
19receive payment from or participate in the management of a
20craft grower, is a principal officer of a craft grower, or
21entity controlled by or affiliated with a principal officer of
22a craft grower shall hold any legal, equitable, ownership, or
23beneficial interest, directly or indirectly, in a craft grower
24license that would result in the person or entity owning or
25controlling in combination with any craft grower, principal
26officer of a craft grower, or entity controlled or affiliated

 

 

HB4195- 32 -LRB102 20848 CPF 29729 b

1with a principal officer of a craft grower by which he, she, or
2it is employed, is an agent of, or participates in the
3management of more than 3 craft grower licenses.
4    (n) It is unlawful for any person having a craft grower
5license or any officer, associate, member, representative, or
6agent of the licensee to offer or deliver money, or anything
7else of value, directly or indirectly, to any person having an
8Early Approval Adult Use Dispensing Organization License, a
9Conditional Adult Use Dispensing Organization License, an
10Adult Use Dispensing Organization License, or a medical
11cannabis dispensing organization license issued under the
12Compassionate Use of Medical Cannabis Program Act, or to any
13person connected with or in any way representing, or to any
14member of the family of, the person holding an Early Approval
15Adult Use Dispensing Organization License, a Conditional Adult
16Use Dispensing Organization License, an Adult Use Dispensing
17Organization License, or a medical cannabis dispensing
18organization license issued under the Compassionate Use of
19Medical Cannabis Program Act, or to any stockholders in any
20corporation engaged in the retail sale of cannabis, or to any
21officer, manager, agent, or representative of the Early
22Approval Adult Use Dispensing Organization License, a
23Conditional Adult Use Dispensing Organization License, an
24Adult Use Dispensing Organization License, or a medical
25cannabis dispensing organization license issued under the
26Compassionate Use of Medical Cannabis Program Act to obtain

 

 

HB4195- 33 -LRB102 20848 CPF 29729 b

1preferential placement within the dispensing organization,
2including, without limitation, on shelves and in display cases
3where purchasers can view products, or on the dispensing
4organization's website.
5    (o) A craft grower shall not be located within 1,500 feet
6of another craft grower or a cultivation center, unless the
7craft grower shares premises with up to 2 other craft growers,
8an infuser organization, a dispensing organization, or any
9combination thereof as provided under the definition of "craft
10grower" in Section 1-10 or under subsection (e) of Section
1115-100 or subsection (l) of Section 35-25.
12    (p) A craft grower may process cannabis, cannabis
13concentrates, and cannabis-infused products.
14    (q) A craft grower must comply with any other requirements
15or prohibitions set by administrative rule of the Department
16of Agriculture.
17(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
18    (410 ILCS 705/35-25)
19    Sec. 35-25. Infuser organization requirements;
20prohibitions.
21    (a) The operating documents of an infuser shall include
22procedures for the oversight of the infuser, an inventory
23monitoring system including a physical inventory recorded
24weekly, accurate recordkeeping, and a staffing plan.
25    (b) An infuser shall implement a security plan reviewed by

 

 

HB4195- 34 -LRB102 20848 CPF 29729 b

1the Department of State Police that includes, but is not
2limited to: facility access controls, perimeter intrusion
3detection systems, personnel identification systems, and a
424-hour surveillance system to monitor the interior and
5exterior of the infuser facility and that is accessible to
6authorized law enforcement, the Department of Public Health,
7and the Department of Agriculture in real time.
8    (c) All processing of cannabis by an infuser must take
9place in an enclosed, locked facility at the physical address
10provided to the Department of Agriculture during the licensing
11process. The infuser location shall only be accessed by the
12agents working for the infuser, the Department of Agriculture
13staff performing inspections, the Department of Public Health
14staff performing inspections, State and local law enforcement
15or other emergency personnel, contractors working on jobs
16unrelated to cannabis, such as installing or maintaining
17security devices or performing electrical wiring, transporting
18organization agents as provided in this Act, participants in
19the incubator program, individuals in a mentoring or
20educational program approved by the State, local safety or
21health inspectors, or other individuals as provided by rule.
22However, if an infuser shares a premises with a craft grower or
23dispensing organization, agents from these other licensees may
24access the infuser portion of the premises if that is the
25location of common bathrooms, lunchrooms, locker rooms, or
26other areas of the building where processing of cannabis is

 

 

HB4195- 35 -LRB102 20848 CPF 29729 b

1not performed. At no time may a craft grower or dispensing
2organization agent perform work at an infuser without being a
3registered agent of the infuser.
4    (d) An infuser may not sell or distribute any cannabis to
5any person other than a dispensing organization, or as
6otherwise authorized by rule.
7    (e) An infuser may not either directly or indirectly
8discriminate in price between different cannabis business
9establishments that are purchasing a like grade, strain,
10brand, and quality of cannabis or cannabis-infused product.
11Nothing in this subsection (e) prevents an infuser from
12pricing cannabis differently based on differences in the cost
13of manufacturing or processing, the quantities sold, such
14volume discounts, or the way the products are delivered.
15    (f) All cannabis infused by an infuser and intended for
16distribution to a dispensing organization must be entered into
17a data collection system, packaged and labeled under Section
1855-21, and, if distribution is to a dispensing organization
19that does not share a premises with the infuser, placed into a
20cannabis container for transport. All cannabis produced by an
21infuser and intended for distribution to a cultivation center,
22infuser organization, or craft grower with which it does not
23share a premises, must be packaged in a labeled cannabis
24container and entered into a data collection system before
25transport.
26    (g) Infusers are subject to random inspections by the

 

 

HB4195- 36 -LRB102 20848 CPF 29729 b

1Department of Agriculture, the Department of Public Health,
2the Department of State Police, and local law enforcement.
3    (h) An infuser agent shall notify local law enforcement,
4the Department of State Police, and the Department of
5Agriculture within 24 hours of the discovery of any loss or
6theft. Notification shall be made by phone, in person, or by
7written or electronic communication.
8    (i) An infuser organization may not be located in an area
9zoned for residential use.
10    (j) An infuser or infuser agent shall not transport
11cannabis or cannabis-infused products to any other cannabis
12business establishment without a transport organization
13license unless:
14        (i) If the infuser is located in a county with a
15    population of 3,000,000 or more, the cannabis business
16    establishment receiving the cannabis or cannabis-infused
17    product is within 2,000 feet of the property line of the
18    infuser;
19        (ii) If the infuser is located in a county with a
20    population of more than 700,000 but fewer than 3,000,000,
21    the cannabis business establishment receiving the cannabis
22    or cannabis-infused product is within 2 miles of the
23    infuser; or
24        (iii) If the infuser is located in a county with a
25    population of fewer than 700,000, the cannabis business
26    establishment receiving the cannabis or cannabis-infused

 

 

HB4195- 37 -LRB102 20848 CPF 29729 b

1    product is within 15 miles of the infuser.
2    (k) An infuser may enter into a contract with a
3transporting organization to transport cannabis to a
4dispensing organization or a laboratory.
5    (l) An infuser organization may share premises with up to
63 craft growers, a cultivation center, a dispensing
7organization, or any combination thereof a craft grower or a
8dispensing organization, or both, provided each licensee
9stores currency and cannabis or cannabis-infused products in a
10separate secured vault to which the other licensee does not
11have access or all licensees sharing a vault share more than
1250% of the same ownership.
13    (m) It is unlawful for any person or entity having an
14infuser organization license or any officer, associate,
15member, representative or agent of such licensee to offer or
16deliver money, or anything else of value, directly or
17indirectly to any person having an Early Approval Adult Use
18Dispensing Organization License, a Conditional Adult Use
19Dispensing Organization License, an Adult Use Dispensing
20Organization License, or a medical cannabis dispensing
21organization license issued under the Compassionate Use of
22Medical Cannabis Program Act, or to any person connected with
23or in any way representing, or to any member of the family of,
24such person holding an Early Approval Adult Use Dispensing
25Organization License, a Conditional Adult Use Dispensing
26Organization License, an Adult Use Dispensing Organization

 

 

HB4195- 38 -LRB102 20848 CPF 29729 b

1License, or a medical cannabis dispensing organization license
2issued under the Compassionate Use of Medical Cannabis Program
3Act, or to any stockholders in any corporation engaged the
4retail sales of cannabis, or to any officer, manager, agent,
5or representative of the Early Approval Adult Use Dispensing
6Organization License, a Conditional Adult Use Dispensing
7Organization License, an Adult Use Dispensing Organization
8License, or a medical cannabis dispensing organization license
9issued under the Compassionate Use of Medical Cannabis Program
10Act to obtain preferential placement within the dispensing
11organization, including, without limitation, on shelves and in
12display cases where purchasers can view products, or on the
13dispensing organization's website.
14    (n) At no time shall an infuser organization or an infuser
15agent perform the extraction of cannabis concentrate from
16cannabis flower.
17(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.