Illinois General Assembly - Full Text of HB4309
Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Full Text of HB4309  102nd General Assembly

HB4309 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4309

 

Introduced 1/5/2022, by Rep. Sonya M. Harper

 

SYNOPSIS AS INTRODUCED:
 
410 ILCS 705/15-70
410 ILCS 705/20-30

    Amends the Cannabis Regulation and Tax Act. Provides that, notwithstanding any other provision of law, dispensing organizations and cultivation centers must have at least 40% of ancillary services required for their operation, including accounting, janitorial, and printing services, provided under contract with at least one business that has received certification under the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.


LRB102 20705 CPF 29583 b

 

 

A BILL FOR

 

HB4309LRB102 20705 CPF 29583 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 15-70 and 20-30 as follows:
 
6    (410 ILCS 705/15-70)
7    Sec. 15-70. Operational requirements; prohibitions.
8    (a) A dispensing organization shall operate in accordance
9with the representations made in its application and license
10materials. It shall be in compliance with this Act and rules.
11    (b) A dispensing organization must include the legal name
12of the dispensary on the packaging of any cannabis product it
13sells.
14    (c) All cannabis, cannabis-infused products, and cannabis
15seeds must be obtained from an Illinois registered adult use
16cultivation center, craft grower, infuser, or another
17dispensary.
18    (d) Dispensing organizations are prohibited from selling
19any product containing alcohol except tinctures, which must be
20limited to containers that are no larger than 100 milliliters.
21    (e) A dispensing organization shall inspect and count
22product received from a transporting organization, adult use
23cultivation center, craft grower, infuser organization, or

 

 

HB4309- 2 -LRB102 20705 CPF 29583 b

1other dispensing organization before dispensing it.
2    (f) A dispensing organization may only accept cannabis
3deliveries into a restricted access area. Deliveries may not
4be accepted through the public or limited access areas unless
5otherwise approved by the Department.
6    (g) A dispensing organization shall maintain compliance
7with State and local building, fire, and zoning requirements
8or regulations.
9    (h) A dispensing organization shall submit a list to the
10Department of the names of all service professionals that will
11work at the dispensary. The list shall include a description
12of the type of business or service provided. Changes to the
13service professional list shall be promptly provided. No
14service professional shall work in the dispensary until the
15name is provided to the Department on the service professional
16list.
17    (i) A dispensing organization's license allows for a
18dispensary to be operated only at a single location.
19    (j) A dispensary may operate between 6 a.m. and 10 p.m.
20local time.
21    (k) A dispensing organization must keep all lighting
22outside and inside the dispensary in good working order and
23wattage sufficient for security cameras.
24    (l) A dispensing organization must keep all air treatment
25systems that will be installed to reduce odors in good working
26order.

 

 

HB4309- 3 -LRB102 20705 CPF 29583 b

1    (m) A dispensing organization must contract with a private
2security contractor that is licensed under Section 10-5 of the
3Private Detective, Private Alarm, Private Security,
4Fingerprint Vendor, and Locksmith Act of 2004 to provide
5on-site security at all hours of the dispensary's operation.
6    (n) A dispensing organization shall ensure that any
7building or equipment used by a dispensing organization for
8the storage or sale of cannabis is maintained in a clean and
9sanitary condition.
10    (o) The dispensary shall be free from infestation by
11insects, rodents, or pests.
12    (p) A dispensing organization shall not:
13        (1) Produce or manufacture cannabis;
14        (2) Accept a cannabis product from an adult use
15    cultivation center, craft grower, infuser, dispensing
16    organization, or transporting organization unless it is
17    pre-packaged and labeled in accordance with this Act and
18    any rules that may be adopted pursuant to this Act;
19        (3) Obtain cannabis or cannabis-infused products from
20    outside the State of Illinois;
21        (4) Sell cannabis or cannabis-infused products to a
22    purchaser unless the dispensing organization is licensed
23    under the Compassionate Use of Medical Cannabis Program
24    Act, and the individual is registered under the
25    Compassionate Use of Medical Cannabis Program or the
26    purchaser has been verified to be 21 years of age or older;

 

 

HB4309- 4 -LRB102 20705 CPF 29583 b

1        (5) Enter into an exclusive agreement with any adult
2    use cultivation center, craft grower, or infuser.
3    Dispensaries shall provide consumers an assortment of
4    products from various cannabis business establishment
5    licensees such that the inventory available for sale at
6    any dispensary from any single cultivation center, craft
7    grower, processor, transporter, or infuser entity shall
8    not be more than 40% of the total inventory available for
9    sale. For the purpose of this subsection, a cultivation
10    center, craft grower, processor, or infuser shall be
11    considered part of the same entity if the licensees share
12    at least one principal officer. The Department may request
13    that a dispensary diversify its products as needed or
14    otherwise discipline a dispensing organization for
15    violating this requirement;
16        (6) Refuse to conduct business with an adult use
17    cultivation center, craft grower, transporting
18    organization, or infuser that has the ability to properly
19    deliver the product and is permitted by the Department of
20    Agriculture, on the same terms as other adult use
21    cultivation centers, craft growers, infusers, or
22    transporters with whom it is dealing;
23        (7) Operate drive-through windows;
24        (8) Allow for the dispensing of cannabis or
25    cannabis-infused products in vending machines;
26        (9) Transport cannabis to residences or other

 

 

HB4309- 5 -LRB102 20705 CPF 29583 b

1    locations where purchasers may be for delivery;
2        (10) Enter into agreements to allow persons who are
3    not dispensing organization agents to deliver cannabis or
4    to transport cannabis to purchasers;
5        (11) Operate a dispensary if its video surveillance
6    equipment is inoperative;
7        (12) Operate a dispensary if the point-of-sale
8    equipment is inoperative;
9        (13) Operate a dispensary if the State's cannabis
10    electronic verification system is inoperative;
11        (14) Have fewer than 2 people working at the
12    dispensary at any time while the dispensary is open;
13        (15) Be located within 1,500 feet of the property line
14    of a pre-existing dispensing organization, unless the
15    applicant is a Social Equity Applicant or Social Equity
16    Justice Involved Applicant located or seeking to locate
17    within 1,500 feet of a dispensing organization licensed
18    under Section 15-15 or Section 15-20;
19        (16) Sell clones or any other live plant material;
20        (17) Sell cannabis, cannabis concentrate, or
21    cannabis-infused products in combination or bundled with
22    each other or any other items for one price, and each item
23    of cannabis, concentrate, or cannabis-infused product must
24    be separately identified by quantity and price on the
25    receipt;
26        (18) Violate any other requirements or prohibitions

 

 

HB4309- 6 -LRB102 20705 CPF 29583 b

1    set by Department rules.
2    (q) It is unlawful for any person having an Early Approval
3Adult Use Cannabis Dispensing Organization License, a
4Conditional Adult Use Cannabis Dispensing Organization, an
5Adult Use Dispensing Organization License, or a medical
6cannabis dispensing organization license issued under the
7Compassionate Use of Medical Cannabis Program Act or any
8officer, associate, member, representative, or agent of such
9licensee to accept, receive, or borrow money or anything else
10of value or accept or receive credit (other than merchandising
11credit in the ordinary course of business for a period not to
12exceed 30 days) directly or indirectly from any adult use
13cultivation center, craft grower, infuser, or transporting
14organization in exchange for preferential placement on the
15dispensing organization's shelves, display cases, or website.
16This includes anything received or borrowed or from any
17stockholders, officers, agents, or persons connected with an
18adult use cultivation center, craft grower, infuser, or
19transporting organization.
20    (r) It is unlawful for any person having an Early Approval
21Adult Use Cannabis Dispensing Organization License, a
22Conditional Adult Use Cannabis Dispensing Organization, an
23Adult Use Dispensing Organization License, or a medical
24cannabis dispensing organization license issued under the
25Compassionate Use of Medical Cannabis Program to enter into
26any contract with any person licensed to cultivate, process,

 

 

HB4309- 7 -LRB102 20705 CPF 29583 b

1or transport cannabis whereby such dispensing organization
2agrees not to sell any cannabis cultivated, processed,
3transported, manufactured, or distributed by any other
4cultivator, transporter, or infuser, and any provision in any
5contract violative of this Section shall render the whole of
6such contract void and no action shall be brought thereon in
7any court.
8    (s) Notwithstanding any other provision of law, a
9dispensing organization must have at least 40% of ancillary
10services required for its operation, including, but not
11limited to, accounting, janitorial, and printing services,
12provided under contract with at least one business that has
13received certification under the Business Enterprise for
14Minorities, Women, and Persons with Disabilities Act.
15    In this subsection:
16    "Business" has the same meaning as provided in Section 2
17of the Business Enterprise for Minorities, Women, and Persons
18with Disabilities Act.
19    "Certification" has the same meaning as provided in
20Section 2 of the Business Enterprise for Minorities, Women,
21and Persons with Disabilities Act.
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 705/20-30)
25    Sec. 20-30. Cultivation center requirements; prohibitions.

 

 

HB4309- 8 -LRB102 20705 CPF 29583 b

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

 

 

HB4309- 9 -LRB102 20705 CPF 29583 b

1mentoring or educational program approved by the State, or
2other individuals as provided by rule.
3    (d) A cultivation center may not sell or distribute any
4cannabis or cannabis-infused products to any person other than
5a dispensing organization, craft grower, infuser organization,
6transporter, or as otherwise authorized by rule.
7    (e) A cultivation center may not either directly or
8indirectly discriminate in price between different dispensing
9organizations, craft growers, or infuser organizations that
10are purchasing a like grade, strain, brand, and quality of
11cannabis or cannabis-infused product. Nothing in this
12subsection (e) prevents a cultivation center from pricing
13cannabis differently based on differences in the cost of
14manufacturing or processing, the quantities sold, such as
15volume discounts, or the way the products are delivered.
16    (f) All cannabis harvested by a cultivation center and
17intended for distribution to a dispensing organization must be
18entered into a data collection system, packaged and labeled
19under Section 55-21, and placed into a cannabis container for
20transport. All cannabis harvested by a cultivation center and
21intended for distribution to a craft grower or infuser
22organization must be packaged in a labeled cannabis container
23and entered into a data collection system before transport.
24    (g) Cultivation centers are subject to random inspections
25by the Department of Agriculture, the Department of Public
26Health, local safety or health inspectors, the Illinois State

 

 

HB4309- 10 -LRB102 20705 CPF 29583 b

1Police, or as provided by rule.
2    (h) A cultivation center agent shall notify local law
3enforcement, the Illinois State Police, and the Department of
4Agriculture within 24 hours of the discovery of any loss or
5theft. Notification shall be made by phone or in person, or by
6written or electronic communication.
7    (i) A cultivation center shall comply with all State and
8any applicable federal rules and regulations regarding the use
9of pesticides on cannabis plants.
10    (j) No person or entity shall hold any legal, equitable,
11ownership, or beneficial interest, directly or indirectly, of
12more than 3 cultivation centers licensed under this Article.
13Further, no person or entity that is employed by, an agent of,
14has a contract to receive payment in any form from a
15cultivation center, is a principal officer of a cultivation
16center, or entity controlled by or affiliated with a principal
17officer of a cultivation shall hold any legal, equitable,
18ownership, or beneficial interest, directly or indirectly, in
19a cultivation that would result in the person or entity owning
20or controlling in combination with any cultivation center,
21principal officer of a cultivation center, or entity
22controlled or affiliated with a principal officer of a
23cultivation center by which he, she, or it is employed, is an
24agent of, or participates in the management of, more than 3
25cultivation center licenses.
26    (k) A cultivation center may not contain more than 210,000

 

 

HB4309- 11 -LRB102 20705 CPF 29583 b

1square feet of canopy space for plants in the flowering stage
2for cultivation of adult use cannabis as provided in this Act.
3    (l) A cultivation center may process cannabis, cannabis
4concentrates, and cannabis-infused products.
5    (m) Beginning July 1, 2020, a cultivation center shall not
6transport cannabis or cannabis-infused products to a craft
7grower, dispensing organization, infuser organization, or
8laboratory licensed under this Act, unless it has obtained a
9transporting organization license.
10    (n) It is unlawful for any person having a cultivation
11center license or any officer, associate, member,
12representative, or agent of such licensee to offer or deliver
13money, or anything else of value, directly or indirectly to
14any person having an Early Approval Adult Use Dispensing
15Organization License, a Conditional Adult Use Dispensing
16Organization License, an Adult Use Dispensing Organization
17License, or a medical cannabis dispensing organization license
18issued under the Compassionate Use of Medical Cannabis Program
19Act, or to any person connected with or in any way
20representing, or to any member of the family of, such person
21holding an Early Approval Adult Use Dispensing Organization
22License, a Conditional Adult Use Dispensing Organization
23License, an Adult Use Dispensing Organization License, or a
24medical cannabis dispensing organization license issued under
25the Compassionate Use of Medical Cannabis Program Act, or to
26any stockholders in any corporation engaged in the retail sale

 

 

HB4309- 12 -LRB102 20705 CPF 29583 b

1of cannabis, or to any officer, manager, agent, or
2representative of the Early Approval Adult Use Dispensing
3Organization License, a Conditional Adult Use Dispensing
4Organization License, an Adult Use Dispensing Organization
5License, or a medical cannabis dispensing organization license
6issued under the Compassionate Use of Medical Cannabis Program
7Act to obtain preferential placement within the dispensing
8organization, including, without limitation, on shelves and in
9display cases where purchasers can view products, or on the
10dispensing organization's website.
11    (o) A cultivation center must comply with any other
12requirements or prohibitions set by administrative rule of the
13Department of Agriculture.
14    (p) Notwithstanding any other provision of law, a
15cultivation center must have at least 40% of ancillary
16services required for its operation, including, but not
17limited to, accounting, janitorial, and printing services,
18provided under contract with at least one business that has
19received certification under the Business Enterprise for
20Minorities, Women, and Persons with Disabilities Act.
21    In this subsection:
22    "Business" has the same meaning as provided in Section 2
23of the Business Enterprise for Minorities, Women, and Persons
24with Disabilities Act.
25    "Certification" has the same meaning as provided in
26Section 2 of the Business Enterprise for Minorities, Women,

 

 

HB4309- 13 -LRB102 20705 CPF 29583 b

1and Persons with Disabilities Act.
2(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
3102-98, eff. 7-15-21; 102-538, eff. 8-20-21; revised 11-9-21.)