Public Act 101-0027

HB1438 Enrolled LRB101 04919 JRG 49928 b

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois,

represented in the General Assembly:

ARTICLE 1.

SHORT TITLE; FINDINGS; DEFINITIONS

Section 1-1. Short title. This Act may be cited as the

Cannabis Regulation and Tax Act.

Section 1-5. Findings.

(a) In the interest of allowing law enforcement to focus on

violent and property crimes, generating revenue for education,

substance abuse prevention and treatment, freeing public

resources to invest in communities and other public purposes,

and individual freedom, the General Assembly finds and declares

that the use of cannabis should be legal for persons 21 years

of age or older and should be taxed in a manner similar to

alcohol.

(b) In the interest of the health and public safety of the

residents of Illinois, the General Assembly further finds and

declares that cannabis should be regulated in a manner similar

to alcohol so that:

(1) persons will have to show proof of age before

purchasing cannabis;

(2) selling, distributing, or transferring cannabis to

minors and other persons under 21 years of age shall remain

illegal;

(3) driving under the influence of cannabis shall

remain illegal;

(4) legitimate, taxpaying business people, and not

criminal actors, will conduct sales of cannabis;

(5) cannabis sold in this State will be tested,

labeled, and subject to additional regulation to ensure

that purchasers are informed and protected; and

(6) purchasers will be informed of any known health

risks associated with the use of cannabis, as concluded by

evidence-based, peer reviewed research.

(c) The General Assembly further finds and declares that it

is necessary to ensure consistency and fairness in the

application of this Act throughout the State and that,

therefore, the matters addressed by this Act are, except as

specified in this Act, matters of statewide concern.

(d) The General Assembly further finds and declares that

this Act shall not diminish the State's duties and commitment

to seriously ill patients registered under the Compassionate

Use of Medical Cannabis Pilot Program Act, nor alter the

protections granted to them.

(e) The General Assembly supports and encourages labor

neutrality in the cannabis industry and further finds and

declares that employee workplace safety shall not be diminished

and employer workplace policies shall be interpreted broadly to

protect employee safety.

Section 1-10. Definitions. In this Act:

"Adult Use Cultivation Center License" means a license

issued by the Department of Agriculture that permits a person

to act as a cultivation center under this Act and any

administrative rule made in furtherance of this Act.

"Adult Use Dispensing Organization License" means a

license issued by the Department of Financial and Professional

Regulation that permits a person to act as a dispensing

organization under this Act and any administrative rule made in

furtherance of this Act.

"Advertise" means to engage in promotional activities

including, but not limited to: newspaper, radio, Internet and

electronic media, and television advertising; the distribution

of fliers and circulars; and the display of window and interior

signs.

"BLS Region" means a region in Illinois used by the United

States Bureau of Labor Statistics to gather and categorize

certain employment and wage data. The 17 such regions in

Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,

Champaign-Urbana, Chicago-Naperville-Elgin, Danville,

Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,

Rockford, St. Louis, Springfield, Northwest Illinois

nonmetropolitan area, West Central Illinois nonmetropolitan

area, East Central Illinois nonmetropolitan area, and South

Illinois nonmetropolitan area.

"Cannabis" means marijuana, hashish, and other substances

that are identified as including any parts of the plant

Cannabis sativa and including derivatives or subspecies, such

as indica, of all strains of cannabis, whether growing or not;

the seeds thereof, the resin extracted from any part of the

plant; and any compound, manufacture, salt, derivative,

mixture, or preparation of the plant, its seeds, or resin,

including tetrahydrocannabinol (THC) and all other naturally

produced cannabinol derivatives, whether produced directly or

indirectly by extraction; however, "cannabis" does not include

the mature stalks of the plant, fiber produced from the stalks,

oil or cake made from the seeds of the plant, any other

compound, manufacture, salt, derivative, mixture, or

preparation of the mature stalks (except the resin extracted

from it), fiber, oil or cake, or the sterilized seed of the

plant that is incapable of germination. "Cannabis" does not

include industrial hemp as defined and authorized under the

Industrial Hemp Act. "Cannabis" also means concentrate and

cannabis-infused products.

"Cannabis business establishment" means a cultivation

center, craft grower, processing organization, dispensing

organization, or transporting organization.

"Cannabis concentrate" means a product derived from

cannabis that is produced by extracting cannabinoids from the

plant through the use of propylene glycol, glycerin, butter,

olive oil or other typical cooking fats; water, ice, or dry

ice; or butane, propane, CO2, ethanol, or isopropanol. The use

of any other solvent is expressly prohibited unless and until

it is approved by the Department of Agriculture.

"Cannabis container" means a sealed, traceable, container,

or package used for the purpose of containment of cannabis or

cannabis-infused product during transportation.

"Cannabis flower" means marijuana, hashish, and other

substances that are identified as including any parts of the

plant Cannabis sativa and including derivatives or subspecies,

such as indica, of all strains of cannabis; including raw kief,

leaves, and buds, but not resin that has been extracted from

any part of such plant; nor any compound, manufacture, salt,

derivative, mixture, or preparation of such plant, its seeds,

or resin.

"Cannabis-infused product" means a beverage, food, oil,

ointment, tincture, topical formulation, or another product

containing cannabis that is not intended to be smoked.

"Cannabis plant monitoring system" or "plant monitoring

system" means a system that includes, but is not limited to,

testing and data collection established and maintained by the

cultivation center, craft grower, or processing organization

and that is available to the Department of Revenue, the

Department of Agriculture, the Department of Financial and

Professional Regulation, and the Department of State Police for

the purposes of documenting each cannabis plant and monitoring

plant development throughout the life cycle of a cannabis plant

cultivated for the intended use by a customer from seed

planting to final packaging.

"Cannabis testing facility" means an entity registered by

the Department of Agriculture to test cannabis for potency and

contaminants.

"Clone" means a plant section from a female cannabis plant

not yet rootbound, growing in a water solution or other

propagation matrix, that is capable of developing into a new

plant.

"Community College Cannabis Vocational Training Pilot

Program faculty participant" means a person who is 21 years of

age or older, licensed by the Department of Agriculture, and is

employed or contracted by an Illinois community college to

provide student instruction using cannabis plants at an

Illinois Community College.

"Community College Cannabis Vocational Training Pilot

Program faculty participant Agent Identification Card" means a

document issued by the Department of Agriculture that

identifies a person as Community College Cannabis Vocational

Training Pilot Program faculty participant.

"Conditional Adult Use Dispensing Organization License"

means a license awarded to top-scoring applicants for an Adult

Use Dispensing Organization License that reserves the right to

an adult use dispensing organization license if the applicant

meets certain conditions described in this Act, but does not

entitle the recipient to begin purchasing or selling cannabis

or cannabis-infused products.

"Conditional Adult Use Cultivation Center License" means a

license awarded to top-scoring applicants for an Adult Use

Cultivation Center License that reserves the right to an Adult

Use Cultivation Center License if the applicant meets certain

conditions as determined by the Department of Agriculture by

rule, but does not entitle the recipient to begin growing,

processing, or selling cannabis or cannabis-infused products.

"Craft grower" means a facility operated by an organization

or business that is licensed by the Department of Agriculture

to cultivate, dry, cure, and package cannabis and perform other

necessary activities to make cannabis available for sale at a

dispensing organization or use at a processing organization. A

craft grower may contain up to 5,000 square feet of canopy

space on its premises for plants in the flowering state. The

Department of Agriculture may authorize an increase or decrease

of flowering stage cultivation space in increments of 3,000

square feet by rule based on market need, craft grower

capacity, and the licensee's history of compliance or

noncompliance, with a maximum space of 14,000 square feet for

cultivating plants in the flowering stage, which must be

cultivated in all stages of growth in an enclosed and secure

area. A craft grower may share premises with a processing

organization or a dispensing organization, or both, provided

each licensee stores currency and cannabis or cannabis-infused

products in a separate secured vault to which the other

licensee does not have access or all licensees sharing a vault

share more than 50% of the same ownership.

"Craft grower agent" means a principal officer, board

member, employee, or other agent of a craft grower who is 21

years of age or older.

"Craft Grower Agent Identification Card" means a document

issued by the Department of Agriculture that identifies a

person as a craft grower agent.

"Cultivation center" means a facility operated by an

organization or business that is licensed by the Department of

Agriculture to cultivate, process, transport (unless otherwise

limited by this Act), and perform other necessary activities to

provide cannabis and cannabis-infused products to cannabis

business establishments.

"Cultivation center agent" means a principal officer,

board member, employee, or other agent of a cultivation center

who is 21 years of age or older.

"Cultivation Center Agent Identification Card" means a

document issued by the Department of Agriculture that

identifies a person as a cultivation center agent.

"Currency" means currency and coin of the United States.

"Dispensary" means a facility operated by a dispensing

organization at which activities licensed by this Act may

occur.

"Dispensing organization" means a facility operated by an

organization or business that is licensed by the Department of

Financial and Professional Regulation to acquire cannabis from

a cultivation center, craft grower, processing organization,

or another dispensary for the purpose of selling or dispensing

cannabis, cannabis-infused products, cannabis seeds,

paraphernalia, or related supplies under this Act to purchasers

or to qualified registered medical cannabis patients and

caregivers. As used in this Act, dispensary organization shall

include a registered medical cannabis organization as defined

in the Compassionate Use of Medical Cannabis Pilot Program Act

or its successor Act that has obtained an Early Approval Adult

Use Dispensing Organization License.

"Dispensing organization agent" means a principal officer,

employee, or agent of a dispensing organization who is 21 years

of age or older.

"Dispensing organization agent identification card" means

a document issued by the Department of Financial and

Professional Regulation that identifies a person as a

dispensing organization agent.

"Disproportionately Impacted Area" means a census tract or

comparable geographic area that satisfies the following

criteria as determined by the Department of Commerce and

Economic Opportunity, that:

(1) meets at least one of the following criteria:

(A) the area has a poverty rate of at least 20%

according to the latest federal decennial census; or

(B) 75% or more of the children in the area

participate in the federal free lunch program

according to reported statistics from the State Board

of Education; or

(C) at least 20% of the households in the area

receive assistance under the Supplemental Nutrition

Assistance Program; or

(D) the area has an average unemployment rate, as

determined by the Illinois Department of Employment

Security, that is more than 120% of the national

unemployment average, as determined by the United

States Department of Labor, for a period of at least 2

consecutive calendar years preceding the date of the

application; and

(2) has high rates of arrest, conviction, and

incarceration related to the sale, possession, use,

cultivation, manufacture, or transport of cannabis.

"Early Approval Adult Use Cultivation Center License"

means a license that permits a medical cannabis cultivation

center licensed under the Compassionate Use of Medical Cannabis

Pilot Program Act as of the effective date of this Act to begin

cultivating, infusing, packaging, transporting (unless

otherwise provided in this Act), and selling cannabis to

cannabis business establishments for resale to purchasers as

permitted by this Act as of January 1, 2020.

"Early Approval Adult Use Dispensing Organization License"

means a license that permits a medical cannabis dispensing

organization licensed under the Compassionate Use of Medical

Cannabis Pilot Program Act as of the effective date of this Act

to begin selling cannabis to purchasers as permitted by this

Act as of January 1, 2020.

"Early Approval Adult Use Dispensing Organization at a

secondary site" means a license that permits a medical cannabis

dispensing organization licensed under the Compassionate Use

of Medical Cannabis Pilot Program Act as of the effective date

of this Act to begin selling cannabis to purchasers as

permitted by this Act on January 1, 2020 at a different

dispensary location from its existing registered medical

dispensary location.

"Enclosed, locked facility" means a room, greenhouse,

building, or other enclosed area equipped with locks or other

security devices that permit access only by cannabis business

establishment agents working for the licensed cannabis

business establishment or acting pursuant to this Act to

cultivate, process, store, or distribute cannabis.

"Enclosed, locked space" means a closet, room, greenhouse,

building or other enclosed area equipped with locks or other

security devices that permit access only by authorized

individuals under this Act. "Enclosed, locked space" may

include:

(1) a space within a residential building that (i) is

the primary residence of the individual cultivating 5 or

fewer cannabis plants that are more than 5 inches tall and

(ii) includes sleeping quarters and indoor plumbing. The

space must only be accessible by a key or code that is

different from any key or code that can be used to access

the residential building from the exterior; or

(2) a structure, such as a shed or greenhouse, that

lies on the same plot of land as a residential building

that (i) includes sleeping quarters and indoor plumbing and

(ii) is used as a primary residence by the person

cultivating 5 or fewer cannabis plants that are more than 5

inches tall, such as a shed or greenhouse. The structure

must remain locked when it is unoccupied by people.

"Financial institution" has the same meaning as "financial

organization" as defined in Section 1501 of the Illinois Income

Tax Act, and also includes the holding companies, subsidiaries,

and affiliates of such financial organizations.

"Flowering stage" means the stage of cultivation where and

when a cannabis plant is cultivated to produce plant material

for cannabis products. This includes mature plants as follows:

(1) if greater than 2 stigmas are visible at each

internode of the plant; or

(2) if the cannabis plant is in an area that has been

intentionally deprived of light for a period of time

intended to produce flower buds and induce maturation, from

the moment the light deprivation began through the

remainder of the marijuana plant growth cycle.

"Individual" means a natural person.

"Infuser organization" or "infuser" means a facility

operated by an organization or business that is licensed by the

Department of Agriculture to directly incorporate cannabis or

cannabis concentrate into a product formulation to produce a

cannabis-infused product.

"Kief" means the resinous crystal-like trichomes that are

found on cannabis and that are accumulated, resulting in a

higher concentration of cannabinoids, untreated by heat or

pressure, or extracted using a solvent.

"Labor peace agreement" means an agreement between a

cannabis business establishment and any labor organization

recognized under the National Labor Relations Act, referred to

in this Act as a bona fide labor organization, that prohibits

labor organizations and members from engaging in picketing,

work stoppages, boycotts, and any other economic interference

with the cannabis business establishment. This agreement means

that the cannabis business establishment has agreed not to

disrupt efforts by the bona fide labor organization to

communicate with, and attempt to organize and represent, the

cannabis business establishment's employees. The agreement

shall provide a bona fide labor organization access at

reasonable times to areas in which the cannabis business

establishment's employees work, for the purpose of meeting with

employees to discuss their right to representation, employment

rights under State law, and terms and conditions of employment.

This type of agreement shall not mandate a particular method of

election or certification of the bona fide labor organization.

"Limited access area" means a building, room, or other area

under the control of a cannabis dispensing organization

licensed under this Act and upon the licensed premises with

access limited to purchasers, dispensing organization owners

and other dispensing organization agents, or service

professionals conducting business with the dispensing

organization.

"Member of an impacted family" means an individual who has

a parent, legal guardian, child, spouse, or dependent, or was a

dependent of an individual who, prior to the effective date of

this Act, was arrested for, convicted of, or adjudicated

delinquent for any offense that is eligible for expungement

under this Act.

"Mother plant" means a cannabis plant that is cultivated or

maintained for the purpose of generating clones, and that will

not be used to produce plant material for sale to an infuser or

dispensing organization.

"Ordinary public view" means within the sight line with

normal visual range of a person, unassisted by visual aids,

from a public street or sidewalk adjacent to real property, or

from within an adjacent property.

"Ownership and control" means ownership of at least 51% of

the business, including corporate stock if a corporation, and

control over the management and day-to-day operations of the

business and an interest in the capital, assets, and profits

and losses of the business proportionate to percentage of

ownership.

"Person" means a natural individual, firm, partnership,

association, joint stock company, joint venture, public or

private corporation, limited liability company, or a receiver,

executor, trustee, guardian, or other representative appointed

by order of any court.

"Possession limit" means the amount of cannabis under

Section 10-10 that may be possessed at any one time by a person

21 years of age or older or who is a registered qualifying

medical cannabis patient or caregiver under the Compassionate

Use of Medical Cannabis Pilot Program Act.

"Principal officer" includes a cannabis business

establishment applicant or licensed cannabis business

establishment's board member, owner with more than 1% interest

of the total cannabis business establishment or more than 5%

interest of the total cannabis business establishment of a

publicly traded company, president, vice president, secretary,

treasurer, partner, officer, member, manager member, or person

with a profit sharing, financial interest, or revenue sharing

arrangement. The definition includes a person with authority to

control the cannabis business establishment, a person who

assumes responsibility for the debts of the cannabis business

establishment and who is further defined in this Act.

"Primary residence" means a dwelling where a person usually

stays or stays more often than other locations. It may be

determined by, without limitation, presence, tax filings;

address on an Illinois driver's license, an Illinois

Identification Card, or an Illinois Person with a Disability

Identification Card; or voter registration. No person may have

more than one primary residence.

"Processing organization" or "processor" means a facility

operated by an organization or business that is licensed by the

Department of Agriculture to either extract constituent

chemicals or compounds to produce cannabis concentrate or

incorporate cannabis or cannabis concentrate into a product

formulation to produce a cannabis product.

"Processing organization agent" means a principal officer,

board member, employee, or agent of a processing organization.

"Processing organization agent identification card" means

a document issued by the Department of Agriculture that

identifies a person as a processing organization agent.

"Purchaser" means a person 21 years of age or older who

acquires cannabis for a valuable consideration. "Purchaser"

does not include a cardholder under the Compassionate Use of

Medical Cannabis Pilot Program Act.

"Qualified Social Equity Applicant" means a Social Equity

Applicant who has been awarded a conditional license under this

Act to operate a cannabis business establishment.

"Resided" means an individual's primary residence was

located within the relevant geographic area as established by 2

of the following:

(1) a signed lease agreement that includes the

applicant's name;

(2) a property deed that includes the applicant's name;

(3) school records;

(4) a voter registration card;

(5) an Illinois driver's license, an Illinois

Identification Card, or an Illinois Person with a

Disability Identification Card;

(6) a paycheck stub;

(7) a utility bill; or

(8) any other proof of residency or other information

necessary to establish residence as provided by rule.

"Smoking" means the inhalation of smoke caused by the

combustion of cannabis.

"Social Equity Applicant" means an applicant that is an

Illinois resident that meets one of the following criteria:

(1) an applicant with at least 51% ownership and

control by one or more individuals who have resided for at

least 5 of the preceding 10 years in a Disproportionately

Impacted Area;

(2) an applicant with at least 51% ownership and

control by one or more individuals who:

(i) have been arrested for, convicted of, or

adjudicated delinquent for any offense that is

eligible for expungement under this Act; or

(ii) is a member of an impacted family;

(3) for applicants with a minimum of 10 full-time

employees, an applicant with at least 51% of current

employees who:

(i) currently reside in a Disproportionately

Impacted Area; or

(ii) have been arrested for, convicted of, or

adjudicated delinquent for any offense that is

eligible for expungement under this Act or member of an

impacted family.

Nothing in this Act shall be construed to preempt or limit

the duties of any employer under the Job Opportunities for

Qualified Applicants Act. Nothing in this Act shall permit an

employer to require an employee to disclose sealed or expunged

offenses, unless otherwise required by law.

"Tincture" means a cannabis-infused solution, typically

comprised of alcohol, glycerin, or vegetable oils, derived

either directly from the cannabis plant or from a processed

cannabis extract. A tincture is not an alcoholic liquor as

defined in the Liquor Control Act of 1934. A tincture shall

include a calibrated dropper or other similar device capable of

accurately measuring servings.

"Transporting organization" or "transporter" means an

organization or business that is licensed by the Department of

Agriculture to transport cannabis on behalf of a cannabis

business establishment or a community college licensed under

the Community College Cannabis Vocational Training Pilot

Program.

"Transporting organization agent" means a principal

officer, board member, employee, or agent of a transporting

organization.

"Transporting organization agent identification card"

means a document issued by the Department of Agriculture that

identifies a person as a transporting organization agent.

"Unit of local government" means any county, city, village,

or incorporated town.

"Vegetative stage" means the stage of cultivation in which

a cannabis plant is propagated to produce additional cannabis

plants or reach a sufficient size for production. This includes

seedlings, clones, mothers, and other immature cannabis plants

as follows:

(1) if the cannabis plant is in an area that has not

been intentionally deprived of light for a period of time

intended to produce flower buds and induce maturation, it

has no more than 2 stigmas visible at each internode of the

cannabis plant; or

(2) any cannabis plant that is cultivated solely for

the purpose of propagating clones and is never used to

produce cannabis.

ARTICLE 5.

AUTHORITY

Section 5-5. Sharing of authority. Notwithstanding any

provision or law to the contrary, any authority granted to any

State agency or State employees or appointees under the

Compassionate Use of Medical Cannabis Pilot Program Act shall

be shared by any State agency or State employees or appointees

given authority to license, discipline, revoke, regulate, or

make rules under this Act.

Section 5-10. Department of Agriculture. The Department of

Agriculture shall administer and enforce provisions of this Act

relating to the oversight and registration of cultivation

centers, craft growers, infuser organizations, and

transporting organizations and agents, including the issuance

of identification cards and establishing limits on potency or

serving size for cannabis or cannabis products. The Department

of Agriculture may suspend or revoke the license of, or impose

other penalties upon cultivation centers, craft growers,

infuser organizations, transporting organizations, and their

principal officers, Agents-in-Charge, and agents for

violations of this Act and any rules adopted under this Act.

Section 5-15. Department of Financial and Professional

Regulation. The Department of Financial and Professional

Regulation shall enforce the provisions of this Act relating to

the oversight and registration of dispensing organizations and

agents, including the issuance of identification cards for

dispensing organization agents. The Department of Financial

and Professional Regulation may suspend or revoke the license

of, or impose other penalties upon, dispensing organizations

for violations of this Act and any rules adopted under this

Act.

Section 5-20. Background checks.

(a) Through the Department of State Police, the licensing

or issuing Department shall conduct a criminal history record

check of the prospective principal officers, board members, and

agents of a cannabis business establishment applying for a

license or identification card under this Act.

Each cannabis business establishment prospective principal

officer, board member, or agent shall submit his or her

fingerprints to the Department of State Police in the form and

manner prescribed by the Department of State Police.

Such fingerprints shall be transmitted through a live scan

fingerprint vendor licensed by the Department of Financial and

Professional Regulation. These fingerprints shall be checked

against the fingerprint records now and hereafter filed in the

Department of State Police and Federal Bureau of Investigation

criminal history records databases. The Department of State

Police shall charge a fee for conducting the criminal history

record check, which shall be deposited into the State Police

Services Fund and shall not exceed the actual cost of the State

and national criminal history record check. The Department of

State Police shall furnish, pursuant to positive

identification, all Illinois conviction information and shall

forward the national criminal history record information to:

(i) the Department of Agriculture, with respect to a

cultivation center, craft grower, infuser organization, or

transporting organization; or

(ii) the Department of Financial and Professional

Regulation, with respect to a dispensing organization.

(b) When applying for the initial license or identification

card, the background checks for all prospective principal

officers, board members, and agents shall be completed before

submitting the application to the licensing or issuing agency.

(c) All applications for licensure under this Act by

applicants with criminal convictions shall be subject to

Sections 2105-131, 2105-135, and 2105-205 of the Department of

Professional Regulation Law of the Civil Administrative Code of

Illinois.

Section 5-25. Department of Public Health to make health

warning recommendations.

(a) The Department of Public Health shall make

recommendations to the Department of Agriculture and the

Department of Financial and Professional Regulation on

appropriate health warnings for dispensaries and advertising,

which may apply to all cannabis products, including item-type

specific labeling or warning requirements, regulate the

facility where cannabis-infused products are made, regulate

cannabis-infused products as provided in subsection (e) of

Section 55-5, and facilitate the Adult Use Cannabis Health

Advisory Committee.

(b) An Adult Use Cannabis Health Advisory Committee is

hereby created and shall meet at least twice annually. The

Chairperson may schedule meetings more frequently upon his or

her initiative or upon the request of a Committee member.

Meetings may be held in person or by teleconference. The

Committee shall discuss and monitor changes in drug use data in

Illinois and the emerging science and medical information

relevant to the health effects associated with cannabis use and

may provide recommendations to the Department of Human Services

about public health awareness campaigns and messages. The

Committee shall include the following members appointed by the

Governor and shall represent the geographic, ethnic, and racial

diversity of the State:

(1) The Director of Public Health, or his or her

designee, who shall serve as the Chairperson.

(2) The Secretary of Human Services, or his or her

designee, who shall serve as the Co-Chairperson.

(3) A representative of the poison control center.

(4) A pharmacologist.

(5) A pulmonologist.

(6) An emergency room physician.

(7) An emergency medical technician, paramedic, or

other first responder.

(8) A nurse practicing in a school-based setting.

(9) A psychologist.

(10) A neonatologist.

(11) An obstetrician-gynecologist.

(12) A drug epidemiologist.

(13) A medical toxicologist.

(14) An addiction psychiatrist.

(15) A pediatrician.

(16) A representative of a statewide professional

public health organization.

(17) A representative of a statewide hospital/health

system association.

(18) An individual registered as a patient in the

Compassionate Use of Medical Cannabis Pilot Program.

(19) An individual registered as a caregiver in the

Compassionate Use of Medical Cannabis Pilot Program.

(20) A representative of an organization focusing on

cannabis-related policy.

(21) A representative of an organization focusing on

the civil liberties of individuals who reside in Illinois.

(22) A representative of the criminal defense or civil

aid community of attorneys serving Disproportionately

Impacted Areas.

(23) A representative of licensed cannabis business

establishments.

(24) A Social Equity Applicant.

(c) The Committee shall provide a report by September 30,

2021, and every year thereafter, to the General Assembly. The

Department of Public Health shall make the report available on

its website.

Section 5-30. Department of Human Services. The Department

of Human Services shall identify evidence-based programs for

preventive mental health, the prevention or treatment of

alcohol abuse, tobacco use, illegal drug use (including

prescription drugs), and cannabis use by pregnant women, and

make policy recommendations, as appropriate, to the Adult Use

Cannabis Health Advisory Committee. The Department of Human

Services shall develop and disseminate educational materials

for purchasers based on recommendations received from the

Department of Public Health and the Adult Use Cannabis Health

Advisory Committee.

Section 5-45. Illinois Cannabis Regulation Oversight

Officer.

(a) The position of Illinois Cannabis Regulation Oversight

Officer is created within the Department of Financial and

Professional Regulation under the Secretary of Financial and

Professional Regulation. The Illinois Cannabis Regulation

Oversight Officer shall be appointed by the Governor with the

advice and consent of the Senate. The term of office of the

Officer shall expire on the third Monday of January in

odd-numbered years provided that he or she shall hold office

until a successor is appointed and qualified. In case of

vacancy in office during the recess of the Senate, the Governor

shall make a temporary appointment until the next meeting of

the Senate, when the Governor shall nominate some person to

fill the office, and any person so nominated who is confirmed

by the Senate shall hold office during the remainder of the

term and until his or her successor is appointed and qualified.

(b) The Illinois Cannabis Regulation Oversight Officer

may:

(1) maintain a staff;

(2) make recommendations for policy, statute, and rule

changes;

(3) collect data both in Illinois and outside Illinois

regarding the regulation of cannabis;

(4) compile or assist in the compilation of any reports

required by this Act;

(5) ensure the coordination of efforts between various

State agencies involved in regulating and taxing the sale

of cannabis in Illinois; and

(6) encourage, promote, suggest, and report best

practices for ensuring diversity in the cannabis industry

in Illinois.

(c) The Illinois Cannabis Regulation Oversight Officer

shall not:

(1) participate in the issuance of any business

licensing or the making of awards; or

(2) participate in any adjudicative decision-making

process involving licensing or licensee discipline.

(d) Any funding required for the Illinois Cannabis

Regulation Oversight Officer, its staff, or its activities

shall be drawn from the Cannabis Regulation Fund.

(e) The Illinois Cannabis Regulation Oversight Officer

shall commission and publish a disparity and availability study

by March 1, 2021 that: (1) evaluates whether there exists

discrimination in the State's cannabis industry; and (2) if so,

evaluates the impact of such discrimination on the State and

includes recommendations to the Department of Financial and

Professional Regulation and the Department of Agriculture for

reducing or eliminating any identified barriers to entry in the

cannabis market. The Illinois Cannabis Regulation Oversight

Officer shall forward a copy of its findings and

recommendations to the Department of Financial and

Professional Regulation, the Department of Agriculture, the

Department of Commerce and Economic Opportunity, the General

Assembly, and the Governor.

(f) The Illinois Cannabis Regulation Oversight Officer may

compile, collect, or otherwise gather data necessary for the

administration of this Act and to carry out the Officer's duty

relating to the recommendation of policy changes. The Illinois

Cannabis Regulation Oversight Officer may direct the

Department of Agriculture, Department of Financial and

Professional Regulation, Department of Public Health,

Department of Human Services, and Department of Commerce and

Economic Opportunity to assist in the compilation, collection,

and data gathering authorized pursuant to this subsection. The

Illinois Cannabis Regulation Oversight Officer shall compile

all of the data into a single report and submit the report to

the Governor and the General Assembly and publish the report on

its website.

ARTICLE 7.

SOCIAL EQUITY IN THE CANNABIS INDUSTRY

Section 7-1. Findings.

(a) The General Assembly finds that the medical cannabis

industry, established in 2014 through the Compassionate Use of

Medical Cannabis Pilot Program Act, has shown that additional

efforts are needed to reduce barriers to ownership. Through

that program, 55 licenses for dispensing organizations and 20

licenses for cultivation centers have been issued. Those

licenses are held by only a small number of businesses, the

ownership of which does not sufficiently meet the General

Assembly's interest in business ownership that reflects the

population of the State of Illinois and that demonstrates the

need to reduce barriers to entry for individuals and

communities most adversely impacted by the enforcement of

cannabis-related laws.

(b) In the interest of establishing a legal cannabis

industry that is equitable and accessible to those most

adversely impacted by the enforcement of drug-related laws in

this State, including cannabis-related laws, the General

Assembly finds and declares that a social equity program should

be established.

(c) The General Assembly also finds and declares that

individuals who have been arrested or incarcerated due to drug

laws suffer long-lasting negative consequences, including

impacts to employment, business ownership, housing, health,

and long-term financial well-being.

(d) The General Assembly also finds and declares that

family members, especially children, and communities of those

who have been arrested or incarcerated due to drug laws, suffer

from emotional, psychological, and financial harms as a result

of such arrests or incarcerations.

(e) Furthermore, the General Assembly finds and declares

that certain communities have disproportionately suffered the

harms of enforcement of cannabis-related laws. Those

communities face greater difficulties accessing traditional

banking systems and capital for establishing businesses.

(f) The General Assembly also finds that individuals who

have resided in areas of high poverty suffer negative

consequences, including barriers to entry in employment,

business ownership, housing, health, and long-term financial

well-being.

(g) The General Assembly also finds and declares that

promotion of business ownership by individuals who have resided

in areas of high poverty and high enforcement of

cannabis-related laws furthers an equitable cannabis industry.

(h) Therefore, in the interest of remedying the harms

resulting from the disproportionate enforcement of

cannabis-related laws, the General Assembly finds and declares

that a social equity program should offer, among other things,

financial assistance and license application benefits to

individuals most directly and adversely impacted by the

enforcement of cannabis-related laws who are interested in

starting cannabis business establishments.

Section 7-10. Cannabis Business Development Fund.

(a) There is created in the State treasury a special fund,

which shall be held separate and apart from all other State

moneys, to be known as the Cannabis Business Development Fund.

The Cannabis Business Development Fund shall be exclusively

used for the following purposes:

(1) to provide low-interest rate loans to Social Equity

Applicants to pay for ordinary and necessary expenses to

start and operate a cannabis business establishment

permitted by this Act;

(2) to provide grants to Qualified Social Equity

Applicants to pay for ordinary and necessary expenses to

start and operate a cannabis business establishment

permitted by this Act;

(3) to compensate the Department of Commerce and

Economic Opportunity for any costs related to the provision

of low-interest loans and grants to Qualified Social Equity

Applicants;

(4) to pay for outreach that may be provided or

targeted to attract and support Social Equity Applicants;

(5) (blank);

(6) to conduct any study or research concerning the

participation of minorities, women, veterans, or people

with disabilities in the cannabis industry, including,

without limitation, barriers to such individuals entering

the industry as equity owners of cannabis business

establishments;

(7) (blank); and

(8) to assist with job training and technical

assistance for residents in Disproportionately Impacted

Areas.

(b) All moneys collected under Sections 15-15 and 15-20 for

Early Approval Adult Use Dispensing Organization Licenses

issued before January 1, 2021 and remunerations made as a

result of transfers of permits awarded to Qualified Social

Equity Applicants shall be deposited into the Cannabis Business

Development Fund.

(c) As soon as practical after July 1, 2019, the

Comptroller shall order and the Treasurer shall transfer

$12,000,000 from the Compassionate Use of Medical Cannabis Fund

to the Cannabis Business Development Fund.

(d) Notwithstanding any other law to the contrary, the

Cannabis Business Development Fund is not subject to sweeps,

administrative charge-backs, or any other fiscal or budgetary

maneuver that would in any way transfer any amounts from the

Cannabis Business Development Fund into any other fund of the

State.

Section 7-15. Loans and grants to Social Equity Applicants.

(a) The Department of Commerce and Economic Opportunity

shall establish grant and loan programs, subject to

appropriations from the Cannabis Business Development Fund,

for the purposes of providing financial assistance, loans,

grants, and technical assistance to Social Equity Applicants.

(b) The Department of Commerce and Economic Opportunity has

the power to:

(1) provide Cannabis Social Equity loans and grants

from appropriations from the Cannabis Business Development

Fund to assist Social Equity Applicants in gaining entry

to, and successfully operating in, the State's regulated

cannabis marketplace;

(2) enter into agreements that set forth terms and

conditions of the financial assistance, accept funds or

grants, and engage in cooperation with private entities and

agencies of State or local government to carry out the

purposes of this Section;

(3) fix, determine, charge, and collect any premiums,

fees, charges, costs and expenses, including application

fees, commitment fees, program fees, financing charges, or

publication fees in connection with its activities under

this Section;

(4) coordinate assistance under these loan programs

with activities of the Illinois Department of Financial and

Professional Regulation, the Illinois Department of

Agriculture, and other agencies as needed to maximize the

effectiveness and efficiency of this Act;

(5) provide staff, administration, and related support

required to administer this Section;

(6) take whatever actions are necessary or appropriate

to protect the State's interest in the event of bankruptcy,

default, foreclosure, or noncompliance with the terms and

conditions of financial assistance provided under this

Section, including the ability to recapture funds if the

recipient is found to be noncompliant with the terms and

conditions of the financial assistance agreement;

(7) establish application, notification, contract, and

other forms, procedures, or rules deemed necessary and

appropriate; and

(8) utilize vendors or contract work to carry out the

purposes of this Act.

(c) Loans made under this Section:

(1) shall only be made if, in the Department's

judgment, the project furthers the goals set forth in this

Act; and

(2) shall be in such principal amount and form and

contain such terms and provisions with respect to security,

insurance, reporting, delinquency charges, default

remedies, and other matters as the Department shall

determine appropriate to protect the public interest and to

be consistent with the purposes of this Section. The terms

and provisions may be less than required for similar loans

not covered by this Section.

(d) Grants made under this Section shall be awarded on a

competitive and annual basis under the Grant Accountability and

Transparency Act. Grants made under this Section shall further

and promote the goals of this Act, including promotion of

Social Equity Applicants, job training and workforce

development, and technical assistance to Social Equity

Applicants.

(e) Beginning January 1, 2021 and each year thereafter, the

Department shall annually report to the Governor and the

General Assembly on the outcomes and effectiveness of this

Section that shall include the following:

(1) the number of persons or businesses receiving

financial assistance under this Section;

(2) the amount in financial assistance awarded in the

aggregate, in addition to the amount of loans made that are

outstanding and the amount of grants awarded;

(3) the location of the project engaged in by the

person or business; and

(4) if applicable, the number of new jobs and other

forms of economic output created as a result of the

financial assistance.

(f) The Department of Commerce and Economic Opportunity

shall include engagement with individuals with limited English

proficiency as part of its outreach provided or targeted to

attract and support Social Equity Applicants.

Section 7-20. Fee waivers.

(a) For Social Equity Applicants, the Department of

Financial and Professional Regulation and the Department of

Agriculture shall waive 50% of any nonrefundable license

application fees, any nonrefundable fees associated with

purchasing a license to operate a cannabis business

establishment, and any surety bond or other financial

requirements, provided a Social Equity Applicant meets the

following qualifications at the time the payment is due:

(1) the applicant, including all individuals and

entities with 10% or greater ownership and all parent

companies, subsidiaries, and affiliates, has less than a

total of $750,000 of income in the previous calendar year;

and

(2) the applicant, including all individuals and

entities with 10% or greater ownership and all parent

companies, subsidiaries, and affiliates, has no more than 2

other licenses for cannabis business establishments in the

State of Illinois.

(b) The Department of Financial and Professional

Regulation and the Department of Agriculture may require Social

Equity Applicants to attest that they meet the requirements for

a fee waiver as provided in subsection (a) and to provide

evidence of annual total income in the previous calendar year.

(c) If the Department of Financial and Professional

Regulation or the Department of Agriculture determines that an

applicant who applied as a Social Equity Applicant is not

eligible for such status, the applicant shall be provided an

additional 10 days to provide alternative evidence that he or

she qualifies as a Social Equity Applicant. Alternatively, the

applicant may pay the remainder of the waived fee and be

considered as a non-Social Equity Applicant. If the applicant

cannot do either, then the Departments may keep the initial

application fee and the application shall not be graded.

Section 7-25. Transfer of license awarded to Social Equity

Applicant.

(a) In the event a Social Equity Applicant seeks to

transfer, sell, or grant a cannabis business establishment

license within 5 years after it was issued to a person or

entity that does not qualify as a Social Equity Applicant, the

transfer agreement shall require the new license holder to pay

the Cannabis Business Development Fund an amount equal to:

(1) any fees that were waived by any State agency based

on the applicant's status as a Social Equity Applicant, if

applicable;

(2) any outstanding amount owed by the Qualified Social

Equity Applicant for a loan through the Cannabis Business

Development Fund, if applicable; and

(3) the full amount of any grants that the Qualified

Social Equity Applicant received from the Department of

Commerce and Economic Opportunity, if applicable.

(b) Transfers of cannabis business establishment licenses

awarded to a Social Equity Applicant are subject to all other

provisions of this Act, the Compassionate Use of Medical

Cannabis Pilot Program Act, and rules regarding transfers.

Section 7-30. Reporting. By January 1, 2021, and on January

1 of every year thereafter, or upon request by the Illinois

Cannabis Regulation Oversight Officer, each cannabis business

establishment licensed under this Act shall report to the

Illinois Cannabis Regulation Oversight Officer, on a form to be

provided by the Illinois Cannabis Regulation Oversight

Officer, information that will allow it to assess the extent of

diversity in the medical and adult use cannabis industry and

methods for reducing or eliminating any identified barriers to

entry, including access to capital. The information to be

collected shall be designed to identify the following:

(1) the number and percentage of licenses provided to

Social Equity Applicants and to businesses owned by

minorities, women, veterans, and people with disabilities;

(2) the total number and percentage of employees in the

cannabis industry who meet the criteria in (3)(i) or

(3)(ii) in the definition of Social Equity Applicant or who

are minorities, women, veterans, or people with

disabilities;

(3) the total number and percentage of contractors and

subcontractors in the cannabis industry that meet the

definition of a Social Equity Applicant or who are owned by

minorities, women, veterans, or people with disabilities,

if known to the cannabis business establishment; and

(4) recommendations on reducing or eliminating any

identified barriers to entry, including access to capital,

in the cannabis industry.

ARTICLE 10.

PERSONAL USE OF CANNABIS

Section 10-5. Personal use of cannabis; restrictions on

cultivation; penalties.

(a) Beginning January 1, 2020, notwithstanding any other

provision of law, and except as otherwise provided in this Act,

the following acts are not a violation of this Act and shall

not be a criminal or civil offense under State law or the

ordinances of any unit of local government of this State or be

a basis for seizure or forfeiture of assets under State law for

persons other than natural individuals under 21 years of age:

(1) possession, consumption, use, purchase, obtaining,

or transporting an amount of cannabis for personal use that

does not exceed the possession limit under Section 10-10 or

otherwise in accordance with the requirements of this Act;

(2) cultivation of cannabis for personal use in

accordance with the requirements of this Act; and

(3) controlling property if actions that are

authorized by this Act occur on the property in accordance

with this Act.

(a-1) Beginning January 1, 2020, notwithstanding any other

provision of law, and except as otherwise provided in this Act,

possessing, consuming, using, purchasing, obtaining, or

transporting an amount of cannabis purchased or produced in

accordance with this Act that does not exceed the possession

limit under subsection (a) of Section 10-10 shall not be a

basis for seizure or forfeiture of assets under State law.

(b) Cultivating cannabis for personal use is subject to the

following limitations:

(1) An Illinois resident 21 years of age or older who

is a registered qualifying patient under the Compassionate

Use of Medical Cannabis Pilot Program Act may cultivate

cannabis plants, with a limit of 5 plants that are more

than 5 inches tall, per household without a cultivation

center or craft grower license. In this Section, "resident"

means a person who has been domiciled in the State of

Illinois for a period of 30 days before cultivation.

(2) Cannabis cultivation must take place in an

enclosed, locked space.

(3) Adult registered qualifying patients may purchase

cannabis seeds from a dispensary for the purpose of home

cultivation. Seeds may not be given or sold to any other

person.

(4) Cannabis plants shall not be stored or placed in a

location where they are subject to ordinary public view, as

defined in this Act. A registered qualifying patient who

cultivates cannabis under this Section shall take

reasonable precautions to ensure the plants are secure from

unauthorized access, including unauthorized access by a

person under 21 years of age.

(5) Cannabis cultivation may occur only on residential

property lawfully in possession of the cultivator or with

the consent of the person in lawful possession of the

property. An owner or lessor of residential property may

prohibit the cultivation of cannabis by a lessee.

(6) (Blank).

(7) A dwelling, residence, apartment, condominium

unit, enclosed, locked space, or piece of property not

divided into multiple dwelling units shall not contain more

than 5 plants at any one time.

(8) Cannabis plants may only be tended by registered

qualifying patients who reside at the residence, or their

authorized agent attending to the residence for brief

periods, such as when the qualifying patient is temporarily

away from the residence.

(9) A registered qualifying patient who cultivates

more than the allowable number of cannabis plants, or who

sells or gives away cannabis plants, cannabis, or

cannabis-infused products produced under this Section, is

liable for penalties as provided by law, including the

Cannabis Control Act, in addition to loss of home

cultivation privileges as established by rule.

Section 10-10. Possession limit.

(a) Except if otherwise authorized by this Act, for a

person who is 21 years of age or older and a resident of this

State, the possession limit is as follows:

(1) 30 grams of cannabis flower;

(2) no more than 500 milligrams of THC contained in

cannabis-infused product;

(3) 5 grams of cannabis concentrate; and

(4) for registered qualifying patients, any cannabis

produced by cannabis plants grown under subsection (b) of

Section 10-5, provided any amount of cannabis produced in

excess of 30 grams of raw cannabis or its equivalent must

remain secured within the residence or residential

property in which it was grown.

(b) For a person who is 21 years of age or older and who is

not a resident of this State, the possession limit is:

(1) 15 grams of cannabis flower;

(2) 2.5 grams of cannabis concentrate; and

(3) 250 milligrams of THC contained in a

cannabis-infused product.

(c) The possession limits found in subsections (a) and (b)

of this Section are to be considered cumulative.

(d) No person shall knowingly obtain, seek to obtain, or

possess an amount of cannabis from a dispensing organization or

craft grower that would cause him or her to exceed the

possession limit under this Section, including cannabis that is

cultivated by a person under this Act or obtained under the

Compassionate Use of Medical Cannabis Pilot Program Act.

Section 10-15. Persons under 21 years of age.

(a) Nothing in this Act is intended to permit the transfer

of cannabis, with or without remuneration, to a person under 21

years of age, or to allow a person under 21 years of age to

purchase, possess, use, process, transport, grow, or consume

cannabis except where authorized by the Compassionate Use of

Medical Cannabis Pilot Program Act or by the Community College

Cannabis Vocational Pilot Program.

(b) Notwithstanding any other provisions of law

authorizing the possession of medical cannabis, nothing in this

Act authorizes a person who is under 21 years of age to possess

cannabis. A person under 21 years of age with cannabis in his

or her possession is guilty of a civil law violation as

outlined in paragraph (a) of Section 4 of the Cannabis Control

Act.

(c) If the person under the age of 21 was in a motor

vehicle at the time of the offense, the Secretary of State may

suspend or revoke the driving privileges of any person for a

violation of this Section under Section 6-206 of the Illinois

Vehicle Code and the rules adopted under it.

(d) It is unlawful for any parent or guardian to knowingly

permit his or her residence, any other private property under

his or her control, or any vehicle, conveyance, or watercraft

under his or her control to be used by an invitee of the

parent's child or the guardian's ward, if the invitee is under

the age of 21, in a manner that constitutes a violation of this

Section. A parent or guardian is deemed to have knowingly

permitted his or her residence, any other private property

under his or her control, or any vehicle, conveyance, or

watercraft under his or her control to be used in violation of

this Section if he or she knowingly authorizes or permits

consumption of cannabis by underage invitees. Any person who

violates this subsection (d) is guilty of a Class A misdemeanor

and the person's sentence shall include, but shall not be

limited to, a fine of not less than $500. If a violation of

this subsection (d) directly or indirectly results in great

bodily harm or death to any person, the person violating this

subsection is guilty of a Class 4 felony. In this subsection

(d), where the residence or other property has an owner and a

tenant or lessee, the trier of fact may infer that the

residence or other property is occupied only by the tenant or

lessee.

Section 10-20. Identification; false identification;

penalty.

(a) To protect personal privacy, the Department of

Financial and Professional Regulation shall not require a

purchaser to provide a dispensing organization with personal

information other than government-issued identification to

determine the purchaser's age, and a dispensing organization

shall not obtain and record personal information about a

purchaser without the purchaser's consent. A dispensing

organization shall use an electronic reader or electronic

scanning device to scan a purchaser's government-issued

identification, if applicable, to determine the purchaser's

age and the validity of the identification. Any identifying or

personal information of a purchaser obtained or received in

accordance with this Section shall not be retained, used,

shared or disclosed for any purpose except as authorized by

this Act.

(b) A person who is under 21 years of age may not present

or offer to a cannabis business establishment or the cannabis

business establishment's principal or employee any written or

oral evidence of age that is false, fraudulent, or not actually

the person's own, for the purpose of:

(1) purchasing, attempting to purchase, or otherwise

obtaining or attempting to obtain cannabis or any cannabis

product; or

(2) gaining access to a cannabis business

establishment.

(c) A violation of this Section is a Class A misdemeanor

consistent with Section 6-20 of the Liquor Control Act of 1934.

(d) The Secretary of State may suspend or revoke the

driving privileges of any person for a violation of this

Section under Section 6-206 of the Illinois Vehicle Code and

the rules adopted under it.

(e) No agent or employee of the licensee shall be

disciplined or discharged for selling or furnishing cannabis or

cannabis products to a person under 21 years of age if the

agent or employee demanded and was shown, before furnishing

cannabis or cannabis products to a person under 21 years of

age, adequate written evidence of age and identity of the

person. This subsection (e) does not apply if the agent or

employee accepted the written evidence knowing it to be false

or fraudulent. Adequate written evidence of age and identity of

the person is a document issued by a federal, State, county, or

municipal government, or subdivision or agency thereof,

including, but not limited to, a motor vehicle operator's

license, a registration certificate issued under the Military

Selective Service Act, or an identification card issued to a

member of the Armed Forces. Proof that the licensee or his or

her employee or agent was shown and reasonably relied upon such

written evidence in any transaction forbidden by this Section

is an affirmative defense in any criminal prosecution therefor

or to any proceedings for the suspension or revocation of any

license based thereon.

Section 10-25. Immunities and presumptions related to the

use of cannabis by purchasers.

(a) A purchaser who is 21 years of age or older is not

subject to arrest, prosecution, denial of any right or

privilege, or other punishment including, but not limited to,

any civil penalty or disciplinary action taken by an

occupational or professional licensing board, based solely on

the use of cannabis if (1) the purchaser possesses an amount of

cannabis that does not exceed the possession limit under

Section 10-10 and, if the purchaser is licensed, certified, or

registered to practice any trade or profession under any Act

and (2) the use of cannabis does not impair that person when he

or she is engaged in the practice of the profession for which

he or she is licensed, certified, or registered.

(b) A purchaser 21 years of age or older is not subject to

arrest, prosecution, denial of any right or privilege, or other

punishment, including, but not limited to, any civil penalty or

disciplinary action taken by an occupational or professional

licensing board, based solely for (i) selling cannabis

paraphernalia if employed and licensed as a dispensing agent by

a dispensing organization or (ii) being in the presence or

vicinity of the use of cannabis as allowed under this Act.

(c) Mere possession of, or application for, an agent

identification card or license does not constitute probable

cause or reasonable suspicion to believe that a crime has been

committed, nor shall it be used as the sole basis to support

the search of the person, property, or home of the person

possessing or applying for the agent identification card. The

possession of, or application for, an agent identification card

does not preclude the existence of probable cause if probable

cause exists based on other grounds.

(d) No person employed by the State of Illinois shall be

subject to criminal or civil penalties for taking any action in

good faith in reliance on this Act when acting within the scope

of his or her employment. Representation and indemnification

shall be provided to State employees as set forth in Section 2

of the State Employee Indemnification Act.

(e) No law enforcement or correctional agency, nor any

person employed by a law enforcement or correctional agency,

shall be subject to criminal or civil liability, except for

willful and wanton misconduct, as a result of taking any action

within the scope of the official duties of the agency or person

to prohibit or prevent the possession or use of cannabis by a

person incarcerated at a correctional facility, jail, or

municipal lockup facility, on parole or mandatory supervised

release, or otherwise under the lawful jurisdiction of the

agency or person.

(f) For purposes of receiving medical care, including organ

transplants, a person's use of cannabis under this Act does not

constitute the use of an illicit substance or otherwise

disqualify a person from medical care.

Section 10-30. Discrimination prohibited.

(a) Neither the presence of cannabinoid components or

metabolites in a person's bodily fluids nor possession of

cannabis-related paraphernalia, nor conduct related to the use

of cannabis or the participation in cannabis-related

activities lawful under this Act by a custodial or noncustodial

parent, grandparent, legal guardian, foster parent, or other

person charged with the well-being of a child, shall form the

sole or primary basis or supporting basis for any action or

proceeding by a child welfare agency or in a family or juvenile

court, any adverse finding, adverse evidence, or restriction of

any right or privilege in a proceeding related to adoption of a

child, acting as a foster parent of a child, or a person's

fitness to adopt a child or act as a foster parent of a child,

or serve as the basis of any adverse finding, adverse evidence,

or restriction of any right of privilege in a proceeding

related to guardianship, conservatorship, trusteeship, the

execution of a will, or the management of an estate, unless the

person's actions in relation to cannabis created an

unreasonable danger to the safety of the minor or otherwise

show the person to not be competent as established by clear and

convincing evidence. This subsection applies only to conduct

protected under this Act.

(b) No landlord may be penalized or denied any benefit

under State law for leasing to a person who uses cannabis under

this Act.

(c) Nothing in this Act may be construed to require any

person or establishment in lawful possession of property to

allow a guest, client, lessee, customer, or visitor to use

cannabis on or in that property.

Section 10-35. Limitations and penalties.

(a) This Act does not permit any person to engage in, and

does not prevent the imposition of any civil, criminal, or

other penalties for engaging in, any of the following conduct:

(1) undertaking any task under the influence of

cannabis when doing so would constitute negligence,

professional malpractice, or professional misconduct;

(2) possessing cannabis:

(A) in a school bus, unless permitted for a

qualifying patient or caregiver pursuant to the

Compassionate Use of Medical Cannabis Pilot Program

Act;

(B) on the grounds of any preschool or primary or

secondary school, unless permitted for a qualifying

patient or caregiver pursuant to the Compassionate Use

of Medical Cannabis Pilot Program Act;

(C) in any correctional facility;

(D) in a vehicle not open to the public unless the

cannabis is in a reasonably secured, sealed container

and reasonably inaccessible while the vehicle is

moving; or

(E) in a private residence that is used at any time

to provide licensed child care or other similar social

service care on the premises;

(3) using cannabis:

(A) in a school bus, unless permitted for a

qualifying patient or caregiver pursuant to the

Compassionate Use of Medical Cannabis Pilot Program

Act;

(B) on the grounds of any preschool or primary or

secondary school, unless permitted for a qualifying

patient or caregiver pursuant to the Compassionate Use

of Medical Cannabis Pilot Program Act;

(C) in any correctional facility;

(D) in any motor vehicle;

(E) in a private residence that is used at any time

to provide licensed child care or other similar social

service care on the premises;

(F) in any public place; or

(G) knowingly in close physical proximity to

anyone under 21 years of age who is not a registered

medical cannabis patient under the Compassionate Use

of Medical Cannabis Pilot Program Act;

(4) smoking cannabis in any place where smoking is

prohibited under the Smoke Free Illinois Act;

(5) operating, navigating, or being in actual physical

control of any motor vehicle, aircraft, or motorboat while

using or under the influence of cannabis in violation of

Section 11-501 or 11-502.1 of the Illinois Vehicle Code;

(6) facilitating the use of cannabis by any person who

is not allowed to use cannabis under this Act or the

Compassionate Use of Medical Cannabis Pilot Program Act;

(7) transferring cannabis to any person contrary to

this Act or the Compassionate Use of Medical Cannabis Pilot

Program Act;

(8) the use of cannabis by a law enforcement officer,

corrections officer, probation officer, or firefighter

while on duty; or

(9) the use of cannabis by a person who has a school

bus permit or a Commercial Driver's License while on duty.

As used in this Section, "public place" means any place

where a person could reasonably be expected to be observed by

others. "Public place" includes all parts of buildings owned in

whole or in part, or leased, by the State or a unit of local

government. "Public place" does not include a private residence

unless the private residence is used to provide licensed child

care, foster care, or other similar social service care on the

premises.

(b) Nothing in this Act shall be construed to prevent the

arrest or prosecution of a person for reckless driving or

driving under the influence of cannabis if probable cause

exists.

(c) Nothing in this Act shall prevent a private business

from restricting or prohibiting the use of cannabis on its

property, including areas where motor vehicles are parked.

(d) Nothing in this Act shall require an individual or

business entity to violate the provisions of federal law,

including colleges or universities that must abide by the

Drug-Free Schools and Communities Act Amendments of 1989, that

require campuses to be drug free.

Section 10-40. Restore, Reinvest, and Renew Program.

(a) The General Assembly finds that in order to address the

disparities described below, aggressive approaches and

targeted resources to support local design and control of

community-based responses to these outcomes are required. To

carry out this intent, the Restore, Reinvest, and Renew (R3)

Program is created for the following purposes:

(1) to directly address the impact of economic

disinvestment, violence, and the historical overuse of

criminal justice responses to community and individual

needs by providing resources to support local design and

control of community-based responses to these impacts;

(2) to substantially reduce both the total amount of

gun violence and concentrated poverty in this State;

(3) to protect communities from gun violence through

targeted investments and intervention programs, including

economic growth and improving family violence prevention,

community trauma treatment rates, gun injury victim

services, and public health prevention activities;

(4) to promote employment infrastructure and capacity

building related to the social determinants of health in

the eligible community areas.

(b) In this Section, "Authority" means the Illinois

Criminal Justice Information Authority in coordination with

the Justice, Equity, and Opportunity Initiative of the

Lieutenant Governor's Office.

(c) Eligibility of R3 Areas. Within 180 days after the

effective date of this Act, the Authority shall identify as

eligible, areas in this State by way of historically recognized

geographic boundaries, to be designated by the Restore,

Reinvest, and Renew Program Board as R3 Areas and therefore

eligible to apply for R3 funding. Local groups within R3 Areas

will be eligible to apply for State funding through the

Restore, Reinvest, and Renew Program Board. Qualifications for

designation as an R3 Area are as follows:

(1) Based on an analysis of data, communities in this

State that are high need, underserved, disproportionately

impacted by historical economic disinvestment, and ravaged

by violence as indicated by the highest rates of gun

injury, unemployment, child poverty rates, and commitments

to and returns from the Illinois Department of Corrections.

(2) The Authority shall send to the Legislative Audit

Commission and make publicly available its analysis and

identification of eligible R3 Areas and shall recalculate

he eligibility data every 4 years. On an annual basis, the

Authority shall analyze data and indicate if data covering

any R3 Area or portion of an Area has, for 4 consecutive

years, substantially deviated from the average of

statewide data on which the original calculation was made

to determine the Areas, including disinvestment, violence,

gun injury, unemployment, child poverty rates, or

commitments to or returns from the Illinois Department of

Corrections.

(d) The Restore, Reinvest, and Renew Program Board shall

encourage collaborative partnerships within each R3 Area to

minimize multiple partnerships per Area.

(e) The Restore, Reinvest, and Renew Program Board is

created and shall reflect the diversity of the State of

Illinois, including geographic, racial, and ethnic diversity.

Using the data provided by the Authority, the Restore,

Reinvest, and Renew Program Board shall be responsible for

designating the R3 Area boundaries and for the selection and

oversight of R3 Area grantees. The Restore, Reinvest, and Renew

Program Board ex officio members shall, within 4 months after

the effective date of this Act, convene the Board to appoint a

full Restore, Reinvest, and Renew Program Board and oversee,

provide guidance to, and develop an administrative structure

for the R3 Program.

(1) The ex officio members are:

(A) The Lieutenant Governor, or his or her

designee, who shall serve as chair.

(B) The Attorney General, or his or her

designee.

(C) The Director of Commerce and Economic

Opportunity, or his or her designee.

(D) The Director of Public Health, or his or

her designee.

(E) The Director of Corrections, or his or her

designee.

(F) The Executive Director of the Illinois

Criminal Justice Information Authority, or his or

her designee.

(G) The Director of Employment Security, or

his or her designee.

(H) The Secretary of Human Services, or his or

her designee.

(I) A member of the Senate, designated by the

President of the Senate.

(J) A member of the House of Representatives,

designated by the Speaker of the House of

Representatives.

(K) A member of the Senate, designated by the

Minority Leader of the Senate.

(L) A member of the House of Representatives,

designated by the Minority Leader of the House of

Representatives.

(2) Within 90 days after the R3 Areas have been

designated by the Restore, Reinvest, and Renew Program

Board, the following members shall be appointed to the

Board by the R3 board chair:

(A) public officials of municipal geographic

jurisdictions in the State that include an R3 Area, or

their designees;

(B) 4 community-based providers or community

development organization representatives who provide

services to treat violence and address the social

determinants of health, or promote community

investment, including, but not limited to, services

such as job placement and training, educational

services, workforce development programming, and

wealth building. The community-based organization

representatives shall work primarily in jurisdictions

that include an R3 Area and no more than 2

representatives shall work primarily in Cook County.

At least one of the community-based providers shall

have expertise in providing services to an immigrant

population;

(C) Two experts in the field of violence reduction;

(D) One male who has previously been incarcerated

and is over the age of 24 at time of appointment;

(E) One female who has previously been

incarcerated and is over the age of 24 at time of

appointment;

(F) Two individuals who have previously been

incarcerated and are between the ages of 17 and 24 at

time of appointment.

As used in this paragraph (2), "an individual who has

been previously incarcerated" means a person who has been

convicted of or pled guilty to one or more felonies, who

was sentenced to a term of imprisonment, and who has

completed his or her sentence. Board members shall serve

without compensation and may be reimbursed for reasonable

expenses incurred in the performance of their duties from

funds appropriated for that purpose. Once all its members

have been appointed as outlined in items (A) through (F) of

this paragraph (2), the Board may exercise any power,

perform any function, take any action, or do anything in

furtherance of its purposes and goals upon the appointment

of a quorum of its members. The Board terms of the non-ex

officio and General Assembly Board members shall end 4

years from the date of appointment.

(f) Within 12 months after the effective date of this Act,

the Board shall:

(1) develop a process to solicit applications from

eligible R3 Areas;

(2) develop a standard template for both planning and

implementation activities to be submitted by R3 Areas to

the State;

(3) identify resources sufficient to support the full

administration and evaluation of the R3 Program, including

building and sustaining core program capacity at the

community and State levels;

(4) review R3 Area grant applications and proposed

agreements and approve the distribution of resources;

(5) develop a performance measurement system that

focuses on positive outcomes;

(6) develop a process to support ongoing monitoring and

evaluation of R3 programs; and

(7) deliver an annual report to the General Assembly

and to the Governor to be posted on the Governor's Office

and General Assembly websites and provide to the public an

annual report on its progress.

(g) R3 Area grants.

(1) Grant funds shall be awarded by the Illinois

Criminal Justice Information Authority, in coordination

with the R3 board, based on the likelihood that the plan

will achieve the outcomes outlined in subsection (a) and

consistent with the requirements of the Grant

Accountability and Transparency Act. The R3 Program shall

also facilitate the provision of training and technical

assistance for capacity building within and among R3 Areas.

(2) R3 Program Board grants shall be used to address

economic development, violence prevention services,

re-entry services, youth development, and civil legal aid.

(3) The Restore, Reinvest, and Renew Program Board and

the R3 Area grantees shall, within a period of no more than

120 days from the completion of planning activities

described in this Section, finalize an agreement on the

plan for implementation. Implementation activities may:

(A) have a basis in evidence or best practice

research or have evaluations demonstrating the

capacity to address the purpose of the program in

subsection (a);

(B) collect data from the inception of planning

activities through implementation, with data

collection technical assistance when needed, including

cost data and data related to identified meaningful

short-term, mid-term, and long-term goals and metrics;

(C) report data to the Restore, Reinvest, and Renew

Program Board biannually; and

(D) report information as requested by the R3

Program Board.

Section 10-50. Employment; employer liability.

(a) Nothing in this Act shall prohibit an employer from

adopting reasonable zero tolerance or drug free workplace

policies, or employment policies concerning drug testing,

smoking, consumption, storage, or use of cannabis in the

workplace or while on call provided that the policy is applied

in a nondiscriminatory manner.

(b) Nothing in this Act shall require an employer to permit

an employee to be under the influence of or use cannabis in the

employer's workplace or while performing the employee's job

duties or while on call.

(c) Nothing in this Act shall limit or prevent an employer

from disciplining an employee or terminating employment of an

employee for violating an employer's employment policies or

workplace drug policy.

(d) An employer may consider an employee to be impaired or

under the influence of cannabis if the employer has a good

faith belief that an employee manifests specific, articulable

symptoms while working that decrease or lessen the employee's

performance of the duties or tasks of the employee's job

position, including symptoms of the employee's speech,

physical dexterity, agility, coordination, demeanor,

irrational or unusual behavior, or negligence or carelessness

in operating equipment or machinery; disregard for the safety

of the employee or others, or involvement in any accident that

results in serious damage to equipment or property; disruption

of a production or manufacturing process; or carelessness that

results in any injury to the employee or others. If an employer

elects to discipline an employee on the basis that the employee

is under the influence or impaired by cannabis, the employer

must afford the employee a reasonable opportunity to contest

the basis of the determination.

(e) Nothing in this Act shall be construed to create or

imply a cause of action for any person against an employer for:

(1) actions, including but not limited to subjecting an

employee or applicant to reasonable drug and alcohol

testing under the employer's workplace drug policy,

including an employee's refusal to be tested or to

cooperate in testing procedures or disciplining or

termination of employment, based on the employer's good

faith belief that an employee used or possessed cannabis in

the employer's workplace or while performing the

employee's job duties or while on call in violation of the

employer's employment policies;

(2) actions, including discipline or termination of

employment, based on the employer's good faith belief that

an employee was impaired as a result of the use of

cannabis, or under the influence of cannabis, while at the

employer's workplace or while performing the employee's

job duties or while on call in violation of the employer's

workplace drug policy; or

(3) injury, loss, or liability to a third party if the

employer neither knew nor had reason to know that the

employee was impaired.

(f) Nothing in this Act shall be construed to enhance or

diminish protections afforded by any other law, including but

not limited to the Compassionate Use of Medical Cannabis Pilot

Program Act or the Opioid Alternative Pilot Program.

(g) Nothing in this Act shall be construed to interfere

with any federal, State, or local restrictions on employment

including, but not limited to, the United States Department of

Transportation regulation 49 CFR 40.151(e) or impact an

employer's ability to comply with federal or State law or cause

it to lose a federal or State contract or funding.

(h) As used in this Section, "workplace" means the

employer's premises, including any building, real property,

and parking area under the control of the employer or area used

by an employee while in performance of the employee's job

duties, and vehicles, whether leased, rented, or owned.

"Workplace" may be further defined by the employer's written

employment policy, provided that the policy is consistent with

this Section.

(i) For purposes of this Section, an employee is deemed "on

call" when such employee is scheduled with at least 24 hours'

notice by his or her employer to be on standby or otherwise

responsible for performing tasks related to his or her

employment either at the employer's premises or other

previously designated location by his or her employer or

supervisor to perform a work-related task.

ARTICLE 15.

LICENSE AND REGULATION OF DISPENSING ORGANIZATIONS

Section 15-5. Authority.

(a) In this Article, "Department" means the Department of

Financial and Professional Regulation.

(b) It is the duty of the Department to administer and

enforce the provisions of this Act relating to the licensure

and oversight of dispensing organizations and dispensing

organization agents unless otherwise provided in this Act.

(c) No person shall operate a dispensing organization for

the purpose of serving purchasers of cannabis or cannabis

products without a license issued under this Article by the

Department. No person shall be an officer, director, manager,

or employee of a dispensing organization without having been

issued a dispensing organization agent card by the Department.

(d) Subject to the provisions of this Act, the Department

may exercise the following powers and duties:

(1) Prescribe forms to be issued for the administration

and enforcement of this Article.

(2) Examine, inspect, and investigate the premises,

operations, and records of dispensing organization

applicants and licensees.

(3) Conduct investigations of possible violations of

this Act pertaining to dispensing organizations and

dispensing organization agents.

(4) Conduct hearings on proceedings to refuse to issue

or renew licenses or to revoke, suspend, place on

probation, reprimand, or otherwise discipline a license

under this Article or take other nondisciplinary action.

(5) Adopt rules required for the administration of this

Article.

Section 15-10. Medical cannabis dispensing organization

exemption. This Article does not apply to medical cannabis

dispensing organizations registered under the Compassionate

Use of Medical Cannabis Pilot Program Act, except where

otherwise specified.

Section 15-15. Early Approval Adult Use Dispensing

Organization License.

(a) Any medical cannabis dispensing organization holding a

valid registration under the Compassionate Use of Medical

Cannabis Pilot Program Act as of the effective date of this Act

may, within 60 days of the effective date of this Act, apply to

the Department for an Early Approval Adult Use Dispensing

Organization License to serve purchasers at any medical

cannabis dispensing location in operation on the effective date

of this Act, pursuant to this Section.

(b) A medical cannabis dispensing organization seeking

issuance of an Early Approval Adult Use Dispensing Organization

License to serve purchasers at any medical cannabis dispensing

location in operation as of the effective date of this Act

shall submit an application on forms provided by the

Department. The application must be submitted by the same

person or entity that holds the medical cannabis dispensing

organization registration and include the following:

(1) Payment of a nonrefundable fee of $30,000 to be

deposited into the Cannabis Regulation Fund;

(2) Proof of registration as a medical cannabis

dispensing organization that is in good standing;

(3) Certification that the applicant will comply with

the requirements contained in the Compassionate Use of

Medical Cannabis Pilot Program Act except as provided in

this Act;

(4) The legal name of the dispensing organization;

(5) The physical address of the dispensing

organization;

(6) The name, address, social security number, and date

of birth of each principal officer and board member of the

dispensing organization, each of whom must be at least 21

years of age;

(7) A nonrefundable Cannabis Business Development Fee

equal to 3% of the dispensing organization's total sales

between June 1, 2018 to June 1, 2019, or $100,000,

whichever is less, to be deposited into the Cannabis

Business Development Fund; and

(8) Identification of one of the following Social

Equity Inclusion Plans to be completed by March 31, 2021:

(A) Make a contribution of 3% of total sales from

June 1, 2018 to June 1, 2019, or $100,000, whichever is

less, to the Cannabis Business Development Fund. This

is in addition to the fee required by item (7) of this

subsection (b);

(B) Make a grant of 3% of total sales from June 1,

2018 to June 1, 2019, or $100,000, whichever is less,

to a cannabis industry training or education program at

an Illinois community college as defined in the Public

Community College Act;

(C) Make a donation of $100,000 or more to a

program that provides job training services to persons

recently incarcerated or that operates in a

Disproportionately Impacted Area;

(D) Participate as a host in a cannabis business

establishment incubator program approved by the

Department of Commerce and Economic Opportunity, and

in which an Early Approval Adult Use Dispensing

Organization License holder agrees to provide a loan of

at least $100,000 and mentorship to incubate a licensee

that qualifies as a Social Equity Applicant for at

least a year. As used in this Section, "incubate" means

providing direct financial assistance and training

necessary to engage in licensed cannabis industry

activity similar to that of the host licensee. The

Early Approval Adult Use Dispensing Organization

License holder or the same entity holding any other

licenses issued pursuant to this Act shall not take an

ownership stake of greater than 10% in any business

receiving incubation services to comply with this

subsection. If an Early Approval Adult Use Dispensing

Organization License holder fails to find a business to

incubate to comply with this subsection before its

Early Approval Adult Use Dispensing Organization

License expires, it may opt to meet the requirement of

this subsection by completing another item from this

subsection; or

(E) Participate in a sponsorship program for at

least 2 years approved by the Department of Commerce

and Economic Opportunity in which an Early Approval

Adult Use Dispensing Organization License holder

agrees to provide an interest-free loan of at least

$200,000 to a Social Equity Applicant. The sponsor

shall not take an ownership stake in any cannabis

business establishment receiving sponsorship services

to comply with this subsection.

(c) The license fee required by paragraph (1) of subsection

(b) of this Section shall be in addition to any license fee

required for the renewal of a registered medical cannabis

dispensing organization license.

(d) Applicants must submit all required information,

including the requirements in subsection (b) of this Section,

to the Department. Failure by an applicant to submit all

required information may result in the application being

disqualified.

(e) If the Department receives an application that fails to

provide the required elements contained in subsection (b), the

Department shall issue a deficiency notice to the applicant.

The applicant shall have 10 calendar days from the date of the

deficiency notice to submit complete information. Applications

that are still incomplete after this opportunity to cure may be

disqualified.

(f) If an applicant meets all the requirements of

subsection (b) of this Section, the Department shall issue the

Early Approval Adult Use Dispensing Organization License

within 14 days of receiving a completed application unless:

(1) The licensee or a principal officer is delinquent

in filing any required tax returns or paying any amounts

owed to the State of Illinois;

(2) The Secretary of Financial and Professional

Regulation determines there is reason, based on documented

compliance violations, the licensee is not entitled to an

Early Approval Adult Use Dispensing Organization License;

or

(3) Any principal officer fails to register and remain

in compliance with this Act or the Compassionate Use of

Medical Cannabis Pilot Program Act.

(g) A registered medical cannabis dispensing organization

that obtains an Early Approval Adult Use Dispensing

Organization License may begin selling cannabis,

cannabis-infused products, paraphernalia, and related items to

purchasers under the rules of this Act no sooner than January

1, 2020.

(h) A dispensing organization holding a medical cannabis

dispensing organization license issued under the Compassionate

Use of Medical Cannabis Pilot Program Act must maintain an

adequate supply of cannabis and cannabis-infused products for

purchase by qualifying patients, caregivers, provisional

patients, and Opioid Alternative Pilot Program participants.

For the purposes of this subsection, "adequate supply" means a

monthly inventory level that is comparable in type and quantity

to those medical cannabis products provided to patients and

caregivers on an average monthly basis for the 6 months before

the effective date of this Act.

(i) If there is a shortage of cannabis or cannabis-infused

products, a dispensing organization holding both a dispensing

organization license under the Compassionate Use of Medical

Cannabis Pilot Program Act and this Act shall prioritize

serving qualifying patients, caregivers, provisional patients,

and Opioid Alternative Pilot Program participants before

serving purchasers.

(j) Notwithstanding any law or rule to the contrary, a

person that holds a medical cannabis dispensing organization

license issued under the Compassionate Use of Medical Cannabis

Pilot Program Act and an Early Approval Adult Use Dispensing

Organization License may permit purchasers into a limited

access area as that term is defined in administrative rules

made under the authority in the Compassionate Use of Medical

Cannabis Pilot Program Act.

(k) An Early Approval Adult Use Dispensing Organization

License is valid until March 31, 2021. A dispensing

organization that obtains an Early Approval Adult Use

Dispensing Organization License shall receive written or

electronic notice 90 days before the expiration of the license

that the license will expire, and inform the license holder

that it may renew its Early Approval Adult Use Dispensing

Organization License. The Department shall renew the Early

Approval Adult Use Dispensing Organization License within 60

days of the renewal application being deemed complete if:

(1) the dispensing organization submits an application

and the required nonrefundable renewal fee of $30,000, to

be deposited into the Cannabis Regulation Fund;

(2) the Department has not suspended or revoked the

Early Approval Adult Use Dispensing Organization License

or a medical cannabis dispensing organization license on

the same premises for violations of this Act, the

Compassionate Use of Medical Cannabis Pilot Program Act, or

rules adopted pursuant to those Acts; and

(3) the dispensing organization has completed a Social

Equity Inclusion Plan as required by paragraph (8) of

subsection (b) of this Section.

(l) The Early Approval Adult Use Dispensing Organization

License renewed pursuant to subsection (k) of this Section

shall expire March 31, 2022. The Early Approval Adult Use

Dispensing Organization Licensee shall receive written or

electronic notice 90 days before the expiration of the license

that the license will expire, and inform the license holder

that it may apply for an Adult Use Dispensing Organization

License. The Department shall grant an Adult Use Dispensing

Organization License within 60 days of an application being

deemed complete if the applicant has met all of the criteria in

Section 15-36.

(m) If a dispensary fails to submit an application for an

Adult Use Dispensing Organization License before the

expiration of the Early Approval Adult Use Dispensing

Organization License pursuant to subsection (k) of this

Section, the dispensing organization shall cease serving

purchasers and cease all operations until it receives an Adult

Use Dispensing Organization License.

(n) A dispensing organization agent who holds a valid

dispensing organization agent identification card issued under

the Compassionate Use of Medical Cannabis Pilot Program Act and

is an officer, director, manager, or employee of the dispensing

organization licensed under this Section may engage in all

activities authorized by this Article to be performed by a

dispensing organization agent.

(o) All fees collected pursuant to this Section shall be

deposited into the Cannabis Regulation Fund, unless otherwise

specified.

Section 15-20. Early Approval Adult Use Dispensing

Organization License; secondary site.

(a) If the Department suspends or revokes the Early

Approval Adult Use Dispensing Organization License of a

dispensing organization that also holds a medical cannabis

dispensing organization license issued under the Compassionate

Use of Medical Cannabis Pilot Program Act, the Department may

consider the suspension or revocation as grounds to take

disciplinary action against the medical cannabis dispensing

organization license.

(a-5) If, within 360 days of the effective date of this

Act, a dispensing organization is unable to find a location

within the BLS Regions prescribed in subsection (a) of this

Section in which to operate an Early Approval Adult Use

Dispensing Organization at a secondary site because no

jurisdiction within the prescribed area allows the operation of

an Adult Use Cannabis Dispensing Organization, the Department

of Financial and Professional Regulation may waive the

geographic restrictions of subsection (a) of this Section and

specify another BLS Region into which the dispensary may be

placed.

(b) Any medical cannabis dispensing organization holding a

valid registration under the Compassionate Use of Medical

Cannabis Pilot Program Act as of the effective date of this Act

may, within 60 days of the effective date of this Act, apply to

the Department for an Early Approval Adult Use Dispensing

Organization License to operate a dispensing organization to

serve purchasers at a secondary site not within 1,500 feet of

another medical cannabis dispensing organization or adult use

dispensing organization. The Early Approval Adult Use

Dispensing Organization secondary site shall be within any BLS

region that shares territory with the dispensing organization

district to which the medical cannabis dispensing organization

is assigned under the administrative rules for dispensing

organizations under the Compassionate Use of Medical Cannabis

Pilot Program Act.

(c) A medical cannabis dispensing organization seeking

issuance of an Early Approval Adult Use Dispensing Organization

License at a secondary site to serve purchasers at a secondary

site as prescribed in subsection (b) of this Section shall

submit an application on forms provided by the Department. The

application must meet or include the following qualifications:

(1) a payment of a nonrefundable application fee of

$30,000;

(2) proof of registration as a medical cannabis

dispensing organization that is in good standing;

(3) submission of the application by the same person or

entity that holds the medical cannabis dispensing

organization registration;

(4) the legal name of the medical cannabis dispensing

organization;

(5) the physical address of the medical cannabis

dispensing organization and the proposed physical address

of the secondary site;

(6) a copy of the current local zoning ordinance

Sections relevant to dispensary operations and

documentation of the approval, the conditional approval or

the status of a request for zoning approval from the local

zoning office that the proposed dispensary location is in

compliance with the local zoning rules;

(7) a plot plan of the dispensary drawn to scale. The

applicant shall submit general specifications of the

building exterior and interior layout;

(8) a statement that the dispensing organization

agrees to respond to the Department's supplemental

requests for information;

(9) for the building or land to be used as the proposed

dispensary:

(A) if the property is not owned by the applicant,

a written statement from the property owner and

landlord, if any, certifying consent that the

applicant may operate a dispensary on the premises; or

(B) if the property is owned by the applicant,

confirmation of ownership;

(10) a copy of the proposed operating bylaws;

(11) a copy of the proposed business plan that complies

with the requirements in this Act, including, at a minimum,

the following:

(A) a description of services to be offered; and

(B) a description of the process of dispensing

cannabis;

(12) a copy of the proposed security plan that complies

with the requirements in this Article, including:

(A) a description of the delivery process by which

cannabis will be received from a transporting

organization, including receipt of manifests and

protocols that will be used to avoid diversion, theft,

or loss at the dispensary acceptance point; and

(B) the process or controls that will be

implemented to monitor the dispensary, secure the

premises, agents, patients, and currency, and prevent

the diversion, theft, or loss of cannabis; and

(C) the process to ensure that access to the

restricted access areas is restricted to, registered

agents, service professionals, transporting

organization agents, Department inspectors, and

security personnel;

(13) a proposed inventory control plan that complies

with this Section;

(14) the name, address, social security number, and

date of birth of each principal officer and board member of

the dispensing organization; each of those individuals

shall be at least 21 years of age;

(15) a nonrefundable Cannabis Business Development Fee

equal to $200,000, to be deposited into the Cannabis

Business Development Fund; and

(16) a commitment to completing one of the following

Social Equity Inclusion Plans in subsection (d).

(d) Before receiving an Early Approval Adult Use Dispensing

Organization License at a secondary site, a dispensing

organization shall indicate the Social Equity Inclusion Plan

that the applicant plans to achieve before the expiration of

the Early Approval Adult Use Dispensing Organization License

from the list below:

(1) make a contribution of 3% of total sales from June

1, 2018 to June 1, 2019, or $100,000, whichever is less, to

the Cannabis Business Development Fund. This is in addition

to the fee required by paragraph (16) of subsection (c) of

this Section;

(2) make a grant of 3% of total sales from June 1, 2018

to June 1, 2019, or $100,000, whichever is less, to a

cannabis industry training or education program at an

Illinois community college as defined in the Public

Community College Act;

(3) make a donation of $100,000 or more to a program

that provides job training services to persons recently

incarcerated or that operates in a Disproportionately

Impacted Area;

(4) participate as a host in a cannabis business

establishment incubator program approved by the Department

of Commerce and Economic Opportunity, and in which an Early

Approval Adult Use Dispensing Organization License at a

secondary site holder agrees to provide a loan of at least

$100,000 and mentorship to incubate a licensee that

qualifies as a Social Equity Applicant for at least a year.

In this paragraph (4), "incubate" means providing direct

financial assistance and training necessary to engage in

licensed cannabis industry activity similar to that of the

host licensee. The Early Approval Adult Use Dispensing

Organization License holder or the same entity holding any

other licenses issued under this Act shall not take an

ownership stake of greater than 10% in any business

receiving incubation services to comply with this

subsection. If an Early Approval Adult Use Dispensing

Organization License at a secondary site holder fails to

find a business to incubate in order to comply with this

subsection before its Early Approval Adult Use Dispensing

Organization License at a secondary site expires, it may

opt to meet the requirement of this subsection by

completing another item from this subsection before the

expiration of its Early Approval Adult Use Dispensing

Organization License at a secondary site to avoid a

penalty; or

(5) participate in a sponsorship program for at least 2

years approved by the Department of Commerce and Economic

Opportunity in which an Early Approval Adult Use Dispensing

Organization License at a secondary site holder agrees to

provide an interest-free loan of at least $200,000 to a

Social Equity Applicant. The sponsor shall not take an

ownership stake of greater than 10% in any business

receiving sponsorship services to comply with this

subsection.

(e) The license fee required by paragraph (1) of subsection

(c) of this Section is in addition to any license fee required

for the renewal of a registered medical cannabis dispensing

organization license.

(f) Applicants must submit all required information,

including the requirements in subsection (c) of this Section,

to the Department. Failure by an applicant to submit all

required information may result in the application being

disqualified.

(g) If the Department receives an application that fails to

provide the required elements contained in subsection (c), the

Department shall issue a deficiency notice to the applicant.

The applicant shall have 10 calendar days from the date of the

deficiency notice to submit complete information. Applications

that are still incomplete after this opportunity to cure may be

disqualified.

(h) Once all required information and documents have been

submitted, the Department will review the application. The

Department may request revisions and retains final approval

over dispensary features. Once the application is complete and

meets the Department's approval, the Department shall

conditionally approve the license. Final approval is

contingent on the build-out and Department inspection.

(i) Upon submission of the Early Approval Adult Use

Dispensing Organization at a secondary site application, the

applicant shall request an inspection and the Department may

inspect the Early Approval Adult Use Dispensing Organization's

secondary site to confirm compliance with the application and

this Act.

(j) The Department shall only issue an Early Approval Adult

Use Dispensing Organization License at a secondary site after

the completion of a successful inspection.

(k) If an applicant passes the inspection under this

Section, the Department shall issue the Early Approval Adult

Use Dispensing Organization License at a secondary site within

10 business days unless:

(1) The licensee; principal officer, board member, or

person having a financial or voting interest of 5% or

greater in the licensee; or agent is delinquent in filing

any required tax returns or paying any amounts owed to the

State of Illinois; or

(2) The Secretary of Financial and Professional

Regulation determines there is reason, based on documented

compliance violations, the licensee is not entitled to an

Early Approval Adult Use Dispensing Organization License

at its secondary site.

(l) Once the Department has issued a license, the

dispensing organization shall notify the Department of the

proposed opening date.

(m) A registered medical cannabis dispensing organization

that obtains an Early Approval Adult Use Dispensing

Organization License at a secondary site may begin selling

cannabis, cannabis-infused products, paraphernalia, and

related items to purchasers under the rules of this Act no

sooner than January 1, 2020.

(n) If there is a shortage of cannabis or cannabis-infused

products, a dispensing organization holding both a dispensing

organization license under the Compassionate Use of Medical

Cannabis Pilot Program Act and this Article shall prioritize

serving qualifying patients and caregivers before serving

purchasers.

(o) An Early Approval Adult Use Dispensing Organization

License at a secondary site is valid until March 31, 2021. A

dispensing organization that obtains an Early Approval Adult

Use Dispensing Organization License at a secondary site shall

receive written or electronic notice 90 days before the

expiration of the license that the license will expire, and

inform the license holder that it may renew its Early Approval

Adult Use Dispensing Organization License at a secondary site.

The Department shall renew an Early Approval Adult Use

Dispensing Organization License at a secondary site within 60

days of submission of the renewal application being deemed

complete if:

(1) the dispensing organization submits an application

and the required nonrefundable renewal fee of $30,000, to

be deposited into the Cannabis Regulation Fund;

(2) the Department has not suspended or revoked the

Early Approval Adult Use Dispensing Organization License

or a medical cannabis dispensing organization license held

by the same person or entity for violating this Act or

rules adopted under this Act or the Compassionate Use of

Medical Cannabis Pilot Program Act or rules adopted under

that Act; and

(3) the dispensing organization has completed a Social

Equity Inclusion Plan as required by paragraph (16) of

subsection (c) of this Section.

(p) The Early Approval Adult Use Dispensing Organization

Licensee at a secondary site renewed pursuant to subsection (o)

shall receive written or electronic notice 90 days before the

expiration of the license that the license will expire, and

inform the license holder that it may apply for an Adult Use

Dispensing Organization License. The Department shall grant an

Adult Use Dispensing Organization License within 60 days of an

application being deemed complete if the applicant has meet all

of the criteria in Section 15-36.

(q) If a dispensing organization fails to submit an

application for renewal of an Early Approval Adult Use

Dispensing Organization License or for an Adult Use Dispensing

Organization License before the expiration dates provided in

subsections (o) and (p) of this Section, the dispensing

organization shall cease serving purchasers until it receives a

renewal or an Adult Use Dispensing Organization License.

(r) A dispensing organization agent who holds a valid

dispensing organization agent identification card issued under

the Compassionate Use of Medical Cannabis Pilot Program Act and

is an officer, director, manager, or employee of the dispensing

organization licensed under this Section may engage in all

activities authorized by this Article to be performed by a

dispensing organization agent.

(s) If the Department suspends or revokes the Early

Approval Adult Use Dispensing Organization License of a

dispensing organization that also holds a medical cannabis

dispensing organization license issued under the Compassionate

Use of Medical Cannabis Pilot Program Act, the Department may

consider the suspension or revocation as grounds to take

disciplinary action against the medical cannabis dispensing

organization.

(t) All fees or fines collected from an Early Approval

Adult Use Dispensary Organization License at a secondary site

holder as a result of a disciplinary action in the enforcement

of this Act shall be deposited into the Cannabis Regulation

Fund and be appropriated to the Department for the ordinary and

contingent expenses of the Department in the administration and

enforcement of this Section.

Section 15-25. Awarding of Conditional Adult Use

Dispensing Organization Licenses prior to January 1, 2021.

(a) The Department shall issue up to 75 Conditional Adult

Use Dispensing Organization Licenses before May 1, 2020.

(b) The Department shall make the application for a

Conditional Adult Use Dispensing Organization License

available no later than October 1, 2019 and shall accept

applications no later than January 1, 2020.

(c) To ensure the geographic dispersion of Conditional

Adult Use Dispensing Organization License holders, the

following number of licenses shall be awarded in each BLS

Region as determined by each region's percentage of the State's

population:

(1) Bloomington: 1

(2) Cape Girardeau: 1

(3) Carbondale-Marion: 1

(4) Champaign-Urbana: 1

(5) Chicago-Naperville-Elgin: 47

(6) Danville: 1

(7) Davenport-Moline-Rock Island: 1

(8) Decatur: 1

(9) Kankakee: 1

(10) Peoria: 3

(11) Rockford: 2

(12) St. Louis: 4

(13) Springfield: 1

(14) Northwest Illinois nonmetropolitan: 3

(15) West Central Illinois nonmetropolitan: 3

(16) East Central Illinois nonmetropolitan: 2

(17) South Illinois nonmetropolitan: 2

(d) An applicant seeking issuance of a Conditional Adult

Use Dispensing Organization License shall submit an

application on forms provided by the Department. An applicant

must meet the following requirements:

(1) Payment of a nonrefundable application fee of

$5,000 for each license for which the applicant is

applying, which shall be deposited into the Cannabis

Regulation Fund;

(2) Certification that the applicant will comply with

the requirements contained in this Act;

(3) The legal name of the proposed dispensing

organization;

(4) A statement that the dispensing organization

agrees to respond to the Department's supplemental

requests for information;

(5) From each principal officer, a statement

indicating whether that person:

(A) has previously held or currently holds an

ownership interest in a cannabis business

establishment in Illinois; or

(B) has held an ownership interest in a dispensing

organization or its equivalent in another state or

territory of the United States that had the dispensing

organization registration or license suspended,

revoked, placed on probationary status, or subjected

to other disciplinary action;

(6) Disclosure of whether any principal officer has

ever filed for bankruptcy or defaulted on spousal support

or child support obligation;

(7) A resume for each principal officer, including

whether that person has an academic degree, certification,

or relevant experience with a cannabis business

establishment or in a related industry;

(8) A description of the training and education that

will be provided to dispensing organization agents;

(9) A copy of the proposed operating bylaws;

(10) A copy of the proposed business plan that complies

with the requirements in this Act, including, at a minimum,

the following:

(A) A description of services to be offered; and

(B) A description of the process of dispensing

cannabis;

(11) A copy of the proposed security plan that complies

with the requirements in this Article, including:

(A) The process or controls that will be

implemented to monitor the dispensary, secure the

premises, agents, and currency, and prevent the

diversion, theft, or loss of cannabis; and

(B) The process to ensure that access to the

restricted access areas is restricted to, registered

agents, service professionals, transporting

organization agents, Department inspectors, and

security personnel;

(12) A proposed inventory control plan that complies

with this Section;

(13) A proposed floor plan, a square footage estimate,

and a description of proposed security devices, including,

without limitation, cameras, motion detectors, servers,

video storage capabilities, and alarm service providers;

(14) The name, address, social security number, and

date of birth of each principal officer and board member of

the dispensing organization; each of those individuals

shall be at least 21 years of age;

(15) Evidence of the applicant's status as a Social

Equity Applicant, if applicable, and whether a Social

Equity Applicant plans to apply for a loan or grant issued

by the Department of Commerce and Economic Opportunity;

(16) The address, telephone number, and email address

of the applicant's principal place of business, if

applicable. A post office box is not permitted;

(17) Written summaries of any information regarding

instances in which a business or not-for-profit that a

prospective board member previously managed or served on

were fined or censured, or any instances in which a

business or not-for-profit that a prospective board member

previously managed or served on had its registration

suspended or revoked in any administrative or judicial

proceeding;

(18) A plan for community engagement;

(19) Procedures to ensure accurate recordkeeping and

security measures that are in accordance with this Article

and Department rules;

(20) The estimated volume of cannabis it plans to store

at the dispensary;

(21) A description of the features that will provide

accessibility to purchasers as required by the Americans

with Disabilities Act;

(22) A detailed description of air treatment systems

that will be installed to reduce odors;

(23) A reasonable assurance that the issuance of a

license will not have a detrimental impact on the community

in which the applicant wishes to locate;

(24) The dated signature of each principal officer;

(25) A description of the enclosed, locked facility

where cannabis will be stored by the dispensing

organization;

(26) Signed statements from each dispensing

organization agent stating that he or she will not divert

cannabis;

(27) The number of licenses it is applying for in each

BLS Region;

(28) A diversity plan that includes a narrative of at

least 2,500 words that establishes a goal of diversity in

ownership, management, employment, and contracting to

ensure that diverse participants and groups are afforded

equality of opportunity;

(29) A contract with a private security contractor that

is licensed under Section 10-5 of the Private Detective,

Private Alarm, Private Security, Fingerprint Vendor, and

Locksmith Act of 2004 in order for the dispensary to have

adequate security at its facility; and

(30) Other information deemed necessary by the

Illinois Cannabis Regulation Oversight Officer to conduct

the disparity and availability study referenced in

subsection (e) of Section 5-45.

(e) An applicant who receives a Conditional Adult Use

Dispensing Organization License under this Section has 180 days

from the date of award to identify a physical location for the

dispensing organization retail storefront. Before a

conditional licensee receives an authorization to build out the

dispensing organization from the Department, the Department

shall inspect the physical space selected by the conditional

licensee. The Department shall verify the site is suitable for

public access, the layout promotes the safe dispensing of

cannabis, the location is sufficient in size, power allocation,

lighting, parking, handicapped accessible parking spaces,

accessible entry and exits as required by the Americans with

Disabilities Act, product handling, and storage. The applicant

shall also provide a statement of reasonable assurance that the

issuance of a license will not have a detrimental impact on the

community. The applicant shall also provide evidence that the

location is not within 1,500 feet of an existing dispensing

organization. If an applicant is unable to find a suitable

physical address in the opinion of the Department within 180

days of the issuance of the Conditional Adult Use Dispensing

Organization License, the Department may extend the period for

finding a physical address another 180 days if the Conditional

Adult Use Dispensing Organization License holder demonstrates

concrete attempts to secure a location and a hardship. If the

Department denies the extension or the Conditional Adult Use

Dispensing Organization License holder is unable to find a

location or become operational within 360 days of being awarded

a conditional license, the Department shall rescind the

conditional license and award it to the next highest scoring

applicant in the BLS Region for which the license was assigned,

provided the applicant receiving the license: (i) confirms a

continued interest in operating a dispensing organization;

(ii) can provide evidence that the applicant continues to meet

the financial requirements provided in subsection (c) of this

Section; and (iii) has not otherwise become ineligible to be

awarded a dispensing organization license. If the new awardee

is unable to accept the Conditional Adult Use Dispensing

Organization License, the Department shall award the

Conditional Adult Use Dispensing Organization License to the

next highest scoring applicant in the same manner. The new

awardee shall be subject to the same required deadlines as

provided in this subsection.

(e-5) If, within 180 days of being awarded a Conditional

Adult Use Dispensing Organization license, a dispensing

organization is unable to find a location within the BLS Region

in which it was awarded a Conditional Adult Use Dispensing

Organization license because no jurisdiction within the BLS

Region allows for the operation of an Adult Use Dispensing

Organization, the Department of Financial and Professional

Regulation may authorize the Conditional Adult Use Dispensing

Organization License holder to transfer its license to a BLS

Region specified by the Department.

(f) A dispensing organization that is awarded a Conditional

Adult Use Dispensing Organization License pursuant to the

criteria in Section 15-30 shall not purchase, possess, sell, or

dispense cannabis or cannabis-infused products until the

person has received an Adult Use Dispensing Organization

License issued by the Department pursuant to Section 15-36 of

this Act. The Department shall not issue an Adult Use

Dispensing Organization License until:

(1) the Department has inspected the dispensary site

and proposed operations and verified that they are in

compliance with this Act and local zoning laws; and

(2) the Conditional Adult Use Dispensing Organization

License holder has paid a registration fee of $60,000, or a

prorated amount accounting for the difference of time

between when the Adult Use Dispensing Organization License

is issued and March 31 of the next even-numbered year.

(g) The Department shall conduct a background check of the

prospective organization agents in order to carry out this

Article. The Department of State Police shall charge the

applicant a fee for conducting the criminal history record

check, which shall be deposited into the State Police Services

Fund and shall not exceed the actual cost of the record check.

Each person applying as a dispensing organization agent shall

submit a full set of fingerprints to the Department of State

Police for the purpose of obtaining a State and federal

criminal records check. These fingerprints shall be checked

against the fingerprint records now and hereafter, to the

extent allowed by law, filed in the Department of State Police

and Federal Bureau of Identification criminal history records

databases. The Department of State Police shall furnish,

following positive identification, all Illinois conviction

information to the Department.

Section 15-30. Selection criteria for conditional licenses

awarded under Section 15-25.

(a) Applicants for a Conditional Adult Use Dispensing

Organization License must submit all required information,

including the information required in Section 15-25, to the

Department. Failure by an applicant to submit all required

information may result in the application being disqualified.

(b) If the Department receives an application that fails to

provide the required elements contained in this Section, the

Department shall issue a deficiency notice to the applicant.

The applicant shall have 10 calendar days from the date of the

deficiency notice to resubmit the incomplete information.

Applications that are still incomplete after this opportunity

to cure will not be scored and will be disqualified.

(c) The Department will award up to 250 points to complete

applications based on the sufficiency of the applicant's

responses to required information. Applicants will be awarded

points based on a determination that the application

satisfactorily includes the following elements:

(1) Suitability of Employee Training Plan (15 points).

The plan includes an employee training plan that

demonstrates that employees will understand the rules

and laws to be followed by dispensary employees, have

knowledge of any security measures and operating

procedures of the dispensary, and are able to advise

purchasers on how to safely consume cannabis and use

individual products offered by the dispensary.

(2) Security and Recordkeeping (65 points).

(A) The security plan accounts for the prevention

of the theft or diversion of cannabis. The security

plan demonstrates safety procedures for dispensary

agents and purchasers, and safe delivery and storage of

cannabis and currency. It demonstrates compliance with

all security requirements in this Act and rules.

(B) A plan for recordkeeping, tracking, and

monitoring inventory, quality control, and other

policies and procedures that will promote standard

recordkeeping and discourage unlawful activity. This

plan includes the applicant's strategy to communicate

with the Department and the Department of State Police

on the destruction and disposal of cannabis. The plan

must also demonstrate compliance with this Act and

rules.

(C) The security plan shall also detail which

private security contractor licensed under Section

10-5 of the Private Detective, Private Alarm, Private

Security, Fingerprint Vendor, and Locksmith Act of

2004 the dispensary will contract with in order to

provide adequate security at its facility.

(3) Applicant's Business Plan, Financials, Operating

and Floor Plan (65 points).

(A) The business plan shall describe, at a minimum,

how the dispensing organization will be managed on a

long-term basis. This shall include a description of

the dispensing organization's point-of-sale system,

purchases and denials of sale, confidentiality, and

products and services to be offered. It will

demonstrate compliance with this Act and rules.

(B) The operating plan shall include, at a minimum,

best practices for day-to-day dispensary operation and

staffing. The operating plan may also include

information about employment practices, including

information about the percentage of full-time

employees who will be provided a living wage.

(C) The proposed floor plan is suitable for public

access, the layout promotes safe dispensing of

cannabis, is compliant with the Americans with

Disabilities Act and the Environmental Barriers Act,

and facilitates safe product handling and storage.

(4) Knowledge and Experience (30 points).

(A) The applicant's principal officers must

demonstrate experience and qualifications in business

management or experience with the cannabis industry.

This includes ensuring optimal safety and accuracy in

the dispensing and sale of cannabis.

(B) The applicant's principal officers must

demonstrate knowledge of various cannabis product

strains or varieties and describe the types and

quantities of products planned to be sold. This

includes confirmation of whether the dispensing

organization plans to sell cannabis paraphernalia or

edibles.

(C) Knowledge and experience may be demonstrated

through experience in other comparable industries that

reflect on applicant's ability to operate a cannabis

business establishment.

(5) Status as a Social Equity Applicant (50 points).

The applicant meets the qualifications for a

Social Equity Applicant as set forth in this Act.

(6) Labor and employment practices (5 points): The

applicant may describe plans to provide a safe, healthy,

and economically beneficial working environment for its

agents, including, but not limited to, codes of conduct,

health care benefits, educational benefits, retirement

benefits, living wage standards, and entering a labor peace

agreement with employees.

(7) Environmental Plan (5 points): The applicant may

demonstrate an environmental plan of action to minimize the

carbon footprint, environmental impact, and resource needs

for the dispensary, which may include, without limitation,

recycling cannabis product packaging.

(8) Illinois owner (5 points): The applicant is 51% or

more owned and controlled by an Illinois resident, who can

prove residency in each of the past 5 years with tax

records.

(9) Status as veteran (5 points): The applicant is 51%

or more controlled and owned by an individual or

individuals who meet the qualifications of a veteran as

defined by Section 45-57 of the Illinois Procurement Code.

(10) A diversity plan (5 points): that includes a

narrative of not more than 2,500 words that establishes a

goal of diversity in ownership, management, employment,

and contracting to ensure that diverse participants and

groups are afforded equality of opportunity.

(d) The Department may also award up to 2 bonus points for

a plan to engage with the community. The applicant may

demonstrate a desire to engage with its community by

participating in one or more of, but not limited to, the

following actions: (i) establishment of an incubator program

designed to increase participation in the cannabis industry by

persons who would qualify as Social Equity Applicants; (ii)

providing financial assistance to substance abuse treatment

centers; (iii) educating children and teens about the potential

harms of cannabis use; or (iv) other measures demonstrating a

commitment to the applicant's community. Bonus points will only

be awarded if the Department receives applications that receive

an equal score for a particular region.

(e) The Department may verify information contained in each

application and accompanying documentation to assess the

applicant's veracity and fitness to operate a dispensing

organization.

(f) The Department may, in its discretion, refuse to issue

an authorization to any applicant:

(1) Who is unqualified to perform the duties required

of the applicant;

(2) Who fails to disclose or states falsely any

information called for in the application;

(3) Who has been found guilty of a violation of this

Act, or whose medical cannabis dispensing organization,

medical cannabis cultivation organization, or Early

Approval Adult Use Dispensing Organization License, or

Early Approval Adult Use Dispensing Organization License

at a secondary site, or Early Approval Cultivation Center

License was suspended, restricted, revoked, or denied for

just cause, or the applicant's cannabis business

establishment license was suspended, restricted, revoked,

or denied in any other state; or

(4) Who has engaged in a pattern or practice of unfair

or illegal practices, methods, or activities in the conduct

of owning a cannabis business establishment or other

business.

(g) The Department shall deny the license if any principal

officer, board member, or person having a financial or voting

interest of 5% or greater in the licensee is delinquent in

filing any required tax returns or paying any amounts owed to

the State of Illinois.

(h) The Department shall verify an applicant's compliance

with the requirements of this Article and rules before issuing

a dispensing organization license.

(i) Should the applicant be awarded a license, the

information and plans provided in the application, including

any plans submitted for bonus points, shall become a condition

of the Conditional Adult Use Dispensing Organization Licenses,

except as otherwise provided by this Act or rule. Dispensing

organizations have a duty to disclose any material changes to

the application. The Department shall review all material

changes disclosed by the dispensing organization, and may

re-evaluate its prior decision regarding the awarding of a

license, including, but not limited to, suspending or revoking

a license. Failure to comply with the conditions or

requirements in the application may subject the dispensing

organization to discipline, up to and including suspension or

revocation of its authorization or license by the Department.

(j) If an applicant has not begun operating as a dispensing

organization within one year of the issuance of the Conditional

Adult Use Dispensing Organization License, the Department may

revoke the Conditional Adult Use Dispensing Organization

License and award it to the next highest scoring applicant in

the BLS Region if a suitable applicant indicates a continued

interest in the license or begin a new selection process to

award a Conditional Adult Use Dispensing Organization License.

(k) The Department shall deny an application if granting

that application would result in a single person or entity

having a direct or indirect financial interest in more than 10

Early Approval Adult Use Dispensing Organization Licenses,

Conditional Adult Use Dispensing Organization Licenses, or

Adult Use Dispensing Organization Licenses. Any entity that is

awarded a license that results in a single person or entity

having a direct or indirect financial interest in more than 10

licenses shall forfeit the most recently issued license and

suffer a penalty to be determined by the Department, unless the

entity declines the license at the time it is awarded.

Section 15-35. Conditional Adult Use Dispensing

Organization License after January 1, 2021.

(a) In addition to any of the licenses issued in Sections

15-15, Section 15-20, or Section 15-25 of this Act, by December

21, 2021, the Department shall issue up to 110 Conditional

Adult Use Dispensing Organization Licenses, pursuant to the

application process adopted under this Section. Prior to

issuing such licenses, the Department may adopt rules through

emergency rulemaking in accordance with subsection (gg) of

Section 5-45 of the Illinois Administrative Procedure Act. The

General Assembly finds that the adoption of rules to regulate

cannabis use is deemed an emergency and necessary for the

public interest, safety, and welfare. Such rules may:

(1) Modify or change the BLS Regions as they apply to

this Article or modify or raise the number of Adult

Conditional Use Dispensing Organization Licenses assigned

to each region based on the following factors:

(A) Purchaser wait times;

(B) Travel time to the nearest dispensary for

potential purchasers;

(C) Percentage of cannabis sales occurring in

Illinois not in the regulated market using data from

the Substance Abuse and Mental Health Services

Administration, National Survey on Drug Use and

Health, Illinois Behavioral Risk Factor Surveillance

System, and tourism data from the Illinois Office of

Tourism to ascertain total cannabis consumption in

Illinois compared to the amount of sales in licensed

dispensing organizations;

(D) Whether there is an adequate supply of cannabis

and cannabis-infused products to serve registered

medical cannabis patients;

(E) Population increases or shifts;

(F) Density of dispensing organizations in a

region;

(G) The Department's capacity to appropriately

regulate additional licenses;

(H) The findings and recommendations from the

disparity and availability study commissioned by the

Illinois Cannabis Regulation Oversight Officer in

subsection (e) of Section 5-45 to reduce or eliminate

any identified barriers to entry in the cannabis

industry; and

(I) Any other criteria the Department deems

relevant.

(2) Modify or change the licensing application process

to reduce or eliminate the barriers identified in the

disparity and availability study commissioned by the

Illinois Cannabis Regulation Oversight Officer and make

modifications to remedy evidence of discrimination.

(b) After January 1, 2022, the Department may by rule

modify or raise the number of Adult Use Dispensing Organization

Licenses assigned to each region, and modify or change the

licensing application process to reduce or eliminate barriers

based on the criteria in subsection (a). At no time shall the

Department issue more than 500 Adult Use Dispensary

Organization Licenses.

Section 15-36. Adult Use Dispensing Organization License.

(a) A person is only eligible to receive an Adult Use

Dispensing Organization if the person has been awarded a

Conditional Adult Use Dispensing Organization License pursuant

to this Act or has renewed its license pursuant to subsection

(k) of Section 15-15 or subsection (p) of Section 15-20.

(b) The Department shall not issue an Adult Use Dispensing

Organization License until:

(1) the Department has inspected the dispensary site

and proposed operations and verified that they are in

compliance with this Act and local zoning laws;

(2) the Conditional Adult Use Dispensing Organization

License holder has paid a registration fee of $60,000 or a

prorated amount accounting for the difference of time

between when the Adult Use Dispensing Organization License

is issued and March 31 of the next even-numbered year; and

(3) the Conditional Adult Use Dispensing Organization

License holder has met all the requirements in the Act and

rules.

(c) No person or entity shall hold any legal, equitable,

ownership, or beneficial interest, directly or indirectly, of

more than 10 dispensing organizations licensed under this

Article. Further, no person or entity that is:

(1) employed by, is an agent of, or participates in the

management of a dispensing organization or registered

medical cannabis dispensing organization;

(2) a principal officer of a dispensing organization or

registered medical cannabis dispensing organization; or

(3) an entity controlled by or affiliated with a

principal officer of a dispensing organization or

registered medical cannabis dispensing organization;

shall hold any legal, equitable, ownership, or beneficial

interest, directly or indirectly, in a dispensing organization

that would result in such person or entity owning or

participating in the management of more than 10 dispensing

organizations. For the purpose of this subsection,

participating in management may include, without limitation,

controlling decisions regarding staffing, pricing, purchasing,

marketing, store design, hiring, and website design.

(d) The Department shall deny an application if granting

that application would result in a person or entity obtaining

direct or indirect financial interest in more than 10 Early

Approval Adult Use Dispensing Organization Licenses,

Conditional Adult Use Dispensing Organization Licenses, Adult

Use Dispensing Organization Licenses, or any combination

thereof. If a person or entity is awarded a Conditional Adult

Use Dispensing Organization License that would cause the person

or entity to be in violation of this subsection, he, she, or it

shall choose which license application it wants to abandon and

such licenses shall become available to the next qualified

applicant in the region in which the abandoned license was

awarded.

Section 15-40. Dispensing organization agent

identification card; agent training.

(a) The Department shall:

(1) Verify the information contained in an application

or renewal for a dispensing organization agent

identification card submitted under this Article, and

approve or deny an application or renewal, within 30 days

of receiving a completed application or renewal

application and all supporting documentation required by

rule;

(2) Issue a dispensing organization agent

identification card to a qualifying agent within 15

business days of approving the application or renewal;

(3) Enter the registry identification number of the

dispensing organization where the agent works;

(4) Within one year from the effective date of this

Act, allow for an electronic application process and

provide a confirmation by electronic or other methods that

an application has been submitted; and

(5) Collect a $100 nonrefundable fee from the applicant

to be deposited into the Cannabis Regulation Fund.

(b) A dispensing agent must keep his or her identification

card visible at all times when on the property of the

dispensing organization.

(c) The dispensing organization agent identification cards

shall contain the following:

(1) The name of the cardholder;

(2) The date of issuance and expiration date of the

dispensing organization agent identification cards;

(3) A random 10-digit alphanumeric identification

number containing at least 4 numbers and at least 4 letters

that is unique to the cardholder; and

(4) A photograph of the cardholder.

(d) The dispensing organization agent identification cards

shall be immediately returned to the dispensing organization

upon termination of employment.

(e) The Department shall not issue an agent identification

card if the applicant is delinquent in filing any required tax

returns or paying any amounts owed to the State of Illinois.

(f) Any card lost by a dispensing organization agent shall

be reported to the Department of State Police and the

Department immediately upon discovery of the loss.

(g) An applicant shall be denied a dispensing organization

agent identification card if he or she fails to complete the

training provided for in this Section.

(h) A dispensing organization agent shall only be required

to hold one card for the same employer regardless of what type

of dispensing organization license the employer holds.

(i) Cannabis retail sales training requirements.

(1) Within 90 days of September 1, 2019, or 90 days of

employment, whichever is later, all owners, managers,

employees, and agents involved in the handling or sale of

cannabis or cannabis-infused product employed by an adult

use dispensing organization or medical cannabis dispensing

organization as defined in Section 10 of the Compassionate

Use of Medical Cannabis Pilot Program Act shall attend and

successfully complete a Responsible Vendor Program.

(2) Each owner, manager, employee, and agent of an

adult use dispensing organization or medical cannabis

dispensing organization shall successfully complete the

program annually.

(3) Responsible Vendor Program Training modules shall

include at least 2 hours of instruction time approved by

the Department including:

(i) Health and safety concerns of cannabis use,

including the responsible use of cannabis, its

physical effects, onset of physiological effects,

recognizing signs of impairment, and appropriate

responses in the event of overconsumption.

(ii) Training on laws and regulations on driving

while under the influence.

(iii) Sales to minors prohibition. Training shall

cover all relevant Illinois laws and rules.

(iv) Quantity limitations on sales to purchasers.

Training shall cover all relevant Illinois laws and

rules.

(v) Acceptable forms of identification. Training

shall include:

(I) How to check identification; and

(II) Common mistakes made in verification;

(vi) Safe storage of cannabis;

(vii) Compliance with all inventory tracking

system regulations;

(viii) Waste handling, management, and disposal;

(ix) Health and safety standards;

(x) Maintenance of records;

(xi) Security and surveillance requirements;

(xii) Permitting inspections by State and local

licensing and enforcement authorities;

(xiii) Privacy issues;

(xiv) Packaging and labeling requirement for sales

to purchasers; and

(xv) Other areas as determined by rule.

(j)BLANK.

(k) Upon the successful completion of the Responsible

Vendor Program, the provider shall deliver proof of completion

either through mail or electronic communication to the

dispensing organization, which shall retain a copy of the

certificate.

(l) The license of a dispensing organization or medical

cannabis dispensing organization whose owners, managers,

employees, or agents fail to comply with this Section may be

suspended or revoked under Section 15-145 or may face other

disciplinary action.

(m) The regulation of dispensing organization and medical

cannabis dispensing employer and employee training is an

exclusive function of the State, and regulation by a unit of

local government, including a home rule unit, is prohibited.

This subsection (m) is a denial and limitation of home rule

powers and functions under subsection (h) of Section 6 of

Article VII of the Illinois Constitution.

(n) Persons seeking Department approval to offer the

training required by paragraph (3) of subsection (i) may apply

for such approval between August 1 and August 15 of each

odd-numbered year in a manner prescribed by the Department.

(o) Persons seeking Department approval to offer the

training required by paragraph (3) of subsection (i) shall

submit a non-refundable application fee of $2,000 to be

deposited into the Cannabis Regulation Fund or a fee as may be

set by rule. Any changes made to the training module shall be

approved by the Department.

(p) The Department shall not unreasonably deny approval of

a training module that meets all the requirements of paragraph

(3) of subsection (i). A denial of approval shall include a

detailed description of the reasons for the denial.

(q) Any person approved to provide the training required by

paragraph (3) of subsection (i) shall submit an application for

re-approval between August 1 and August 15 of each odd-numbered

year and include a non-refundable application fee of $2,000 to

be deposited into the Cannabis Regulation Fund or a fee as may

be set by rule.

Section 15-45. Renewal.

(a) Adult Use Dispensing Organization Licenses shall

expire on March 31 of even-numbered years.

(b) Agent identification cards shall expire one year from

the date they are issued.

(c) Licensees and dispensing agents shall submit a renewal

application as provided by the Department and pay the required

renewal fee. The Department shall require an agent, employee,

contracting, and subcontracting diversity report and an

environmental impact report with its renewal application. No

license or agent identification card shall be renewed if it is

currently under revocation or suspension for violation of this

Article or any rules that may be adopted under this Article or

the licensee, principal officer, board member, person having a

financial or voting interest of 5% or greater in the licensee,

or agent is delinquent in filing any required tax returns or

paying any amounts owed to the State of Illinois.

(d) Renewal fees are:

(1) For a dispensing organization, $60,000, to be

deposited into the Cannabis Regulation Fund.

(2) For an agent identification card, $100, to be

deposited into the Cannabis Regulation Fund.

(e) If a dispensing organization fails to renew its license

before expiration, the dispensing organization shall cease

operations until the license is renewed.

(f) If a dispensing organization agent fails to renew his

or her registration before its expiration, he or she shall

cease to perform duties authorized by this Article at a

dispensing organization until his or her registration is

renewed.

(g) Any dispensing organization that continues to operate

or dispensing agent that continues to perform duties authorized

by this Article at a dispensing organization that fails to

renew its license is subject to penalty as provided in this

Article, or any rules that may be adopted pursuant to this

Article.

(h) The Department shall not renew a license if the

applicant is delinquent in filing any required tax returns or

paying any amounts owed to the State of Illinois. The

Department shall not renew a dispensing agent identification

card if the applicant is delinquent in filing any required tax

returns or paying any amounts owed to the State of Illinois.

Section 15-50. Disclosure of ownership and control.

(a) Each dispensing organization applicant and licensee

shall file and maintain a Table of Organization, Ownership and

Control with the Department. The Table of Organization,

Ownership and Control shall contain the information required by

this Section in sufficient detail to identify all owners,

directors, and principal officers, and the title of each

principal officer or business entity that, through direct or

indirect means, manages, owns, or controls the applicant or

licensee.

(b) The Table of Organization, Ownership and Control shall

identify the following information:

(1) The management structure, ownership, and control

of the applicant or license holder including the name of

each principal officer or business entity, the office or

position held, and the percentage ownership interest, if

any. If the business entity has a parent company, the name

of each owner, board member, and officer of the parent

company and his or her percentage ownership interest in the

parent company and the dispensing organization.

(2) If the applicant or licensee is a business entity

with publicly traded stock, the identification of

ownership shall be provided as required in subsection (c).

(c) If a business entity identified in subsection (b) is a

publicly traded company, the following information shall be

provided in the Table of Organization, Ownership and Control:

(1) The name and percentage of ownership interest of

each individual or business entity with ownership of more

than 5% of the voting shares of the entity, to the extent

such information is known or contained in 13D or 13G

Securities and Exchange Commission filings.

(2) To the extent known, the names and percentage of

interest of ownership of persons who are relatives of one

another and who together exercise control over or own more

than 10% of the voting shares of the entity.

(d) A dispensing organization with a parent company or

companies, or partially owned or controlled by another entity

must disclose to the Department the relationship and all

owners, board members, officers, or individuals with control or

management of those entities. A dispensing organization shall

not shield its ownership or control from the Department.

(e) All principal officers must submit a complete online

application with the Department within 14 days of the

dispensing organization being licensed by the Department or

within 14 days of Department notice of approval as a new

principal officer.

(f) A principal officer may not allow his or her

registration to expire.

(g) A dispensing organization separating with a principal

officer must do so under this Act. The principal officer must

communicate the separation to the Department within 5 business

days.

(h) A principal officer not in compliance with the

requirements of this Act shall be removed from his or her

position with the dispensing organization or shall otherwise

terminate his or her affiliation. Failure to do so may subject

the dispensing organization to discipline, suspension, or

revocation of its license by the Department.

(i) It is the responsibility of the dispensing organization

and its principal officers to promptly notify the Department of

any change of the principal place of business address, hours of

operation, change in ownership or control, or a change of the

dispensing organization's primary or secondary contact

information. Any changes must be made to the Department in

writing.

Section 15-55. Financial responsibility. Evidence of

financial responsibility is a requirement for the issuance,

maintenance, or reactivation of a license under this Article.

Evidence of financial responsibility shall be used to guarantee

that the dispensing organization timely and successfully

completes dispensary construction, operates in a manner that

provides an uninterrupted supply of cannabis, faithfully pays

registration renewal fees, keeps accurate books and records,

makes regularly required reports, complies with State tax

requirements, and conducts the dispensing organization in

conformity with this Act and rules. Evidence of financial

responsibility shall be provided by one of the following:

(1) Establishing and maintaining an escrow or surety

account in a financial institution in the amount of

$50,000, with escrow terms, approved by the Department,

that it shall be payable to the Department in the event of

circumstances outlined in this Act and rules.

(A) A financial institution may not return money in

an escrow or surety account to the dispensing

organization that established the account or a

representative of the organization unless the

organization or representative presents a statement

issued by the Department indicating that the account

may be released.

(B) The escrow or surety account shall not be

canceled on less than 30 days' notice in writing to the

Department, unless otherwise approved by the

Department. If an escrow or surety account is canceled

and the registrant fails to secure a new account with

the required amount on or before the effective date of

cancellation, the registrant's registration may be

revoked. The total and aggregate liability of the

surety on the bond is limited to the amount specified

in the escrow or surety account.

(2) Providing a surety bond in the amount of $50,000,

naming the dispensing organization as principal of the

bond, with terms, approved by the Department, that the bond

defaults to the Department in the event of circumstances

outlined in this Act and rules. Bond terms shall include:

(A) The business name and registration number on

the bond must correspond exactly with the business name

and registration number in the Department's records.

(B) The bond must be written on a form approved by

the Department.

(C) A copy of the bond must be received by the

Department within 90 days after the effective date.

(D) The bond shall not be canceled by a surety on

less than 30 days' notice in writing to the Department.

If a bond is canceled and the registrant fails to file

a new bond with the Department in the required amount

on or before the effective date of cancellation, the

registrant's registration may be revoked. The total

and aggregate liability of the surety on the bond is

limited to the amount specified in the bond.

Section 15-60. Changes to a dispensing organization.

(a) A license shall be issued to the specific dispensing

organization identified on the application and for the specific

location proposed. The license is valid only as designated on

the license and for the location for which it is issued.

(b) A dispensing organization may only add principal

officers after being approved by the Department.

(c) A dispensing organization shall provide written notice

of the removal of a principal officer within 5 business days

after removal. The notice shall include the written agreement

of the principal officer being removed, unless otherwise

approved by the Department, and allocation of ownership shares

after removal in an updated ownership chart.

(d) A dispensing organization shall provide a written

request to the Department for the addition of principal

officers. A dispensing organization shall submit proposed

principal officer applications on forms approved by the

Department.

(e) All proposed new principal officers shall be subject to

the requirements of this Act, this Article, and any rules that

may be adopted pursuant to this Act.

(f) The Department may prohibit the addition of a principal

officer to a dispensing organization for failure to comply with

this Act, this Article, and any rules that may be adopted

pursuant to this Act.

(g) A dispensing organization may not assign a license.

(h) A dispensing organization may not transfer a license

without prior Department approval. Such approval may be

withheld if the person to whom the license is being transferred

does not commit to the same or a similar community engagement

plan provided as part of the dispensing organization's

application under paragraph (18) of subsection (d) of Section

15-25, and such transferee's license shall be conditional upon

that commitment.

(i) With the addition or removal of principal officers, the

Department will review the ownership structure to determine

whether the change in ownership has had the effect of a

transfer of the license. The dispensing organization shall

supply all ownership documents requested by the Department.

(j) A dispensing organization may apply to the Department

to approve a sale of the dispensing organization. A request to

sell the dispensing organization must be on application forms

provided by the Department. A request for an approval to sell a

dispensing organization must comply with the following:

(1) New application materials shall comply with this

Act and any rules that may be adopted pursuant to this Act;

(2) Application materials shall include a change of

ownership fee of $5,000 to be deposited into the Cannabis

Regulation Fund;

(3) The application materials shall provide proof that

the transfer of ownership will not have the effect of

granting any of the owners or principal officers direct or

indirect ownership or control of more than 10 adult use

dispensing organization licenses;

(4) New principal officers shall each complete the

proposed new principal officer application;

(5) If the Department approves the application

materials and proposed new principal officer applications,

it will perform an inspection before approving the sale and

issuing the dispensing organization license;

(6) If a new license is approved, the Department will

issue a new license number and certificate to the new

dispensing organization.

(k) The dispensing organization shall provide the

Department with the personal information for all new dispensing

organizations agents as required in this Article and all new

dispensing organization agents shall be subject to the

requirements of this Article. A dispensing organization agent

must obtain an agent identification card from the Department

before beginning work at a dispensary.

(l) Before remodeling, expansion, reduction, or other

physical, noncosmetic alteration of a dispensary, the

dispensing organization must notify the Department and confirm

the alterations are in compliance with this Act and any rules

that may be adopted pursuant to this Act.

Section 15-65. Administration.

(a) A dispensing organization shall establish, maintain,

and comply with written policies and procedures as submitted in

the Business, Financial and Operating plan as required in this

Article or by rules established by the Department, and approved

by the Department, for the security, storage, inventory, and

distribution of cannabis. These policies and procedures shall

include methods for identifying, recording, and reporting

diversion, theft, or loss, and for correcting errors and

inaccuracies in inventories. At a minimum, dispensing

organizations shall ensure the written policies and procedures

provide for the following:

(1) Mandatory and voluntary recalls of cannabis

products. The policies shall be adequate to deal with

recalls due to any action initiated at the request of the

Department and any voluntary action by the dispensing

organization to remove defective or potentially defective

cannabis from the market or any action undertaken to

promote public health and safety, including:

(i) A mechanism reasonably calculated to contact

purchasers who have, or likely have, obtained the

product from the dispensary, including information on

the policy for return of the recalled product;

(ii) A mechanism to identify and contact the adult

use cultivation center, craft grower, or infuser that

manufactured the cannabis;

(iii) Policies for communicating with the

Department, the Department of Agriculture, and the

Department of Public Health within 24 hours of

discovering defective or potentially defective

cannabis; and

(iv) Policies for destruction of any recalled

cannabis product;

(2) Responses to local, State, or national

emergencies, including natural disasters, that affect the

security or operation of a dispensary;

(3) Segregation and destruction of outdated, damaged,

deteriorated, misbranded, or adulterated cannabis. This

procedure shall provide for written documentation of the

cannabis disposition;

(4) Ensure the oldest stock of a cannabis product is

distributed first. The procedure may permit deviation from

this requirement, if such deviation is temporary and

appropriate;

(5) Training of dispensing organization agents in the

provisions of this Act and rules, to effectively operate

the point-of-sale system and the State's verification

system, proper inventory handling and tracking, specific

uses of cannabis or cannabis-infused products, instruction

regarding regulatory inspection preparedness and law

enforcement interaction, awareness of the legal

requirements for maintaining status as an agent, and other

topics as specified by the dispensing organization or the

Department. The dispensing organization shall maintain

evidence of all training provided to each agent in its

files that is subject to inspection and audit by the

Department. The dispensing organization shall ensure

agents receive a minimum of 8 hours of training subject to

the requirements in subsection (i) of Section 15-40

annually, unless otherwise approved by the Department;

(6) Maintenance of business records consistent with

industry standards, including bylaws, consents, manual or

computerized records of assets and liabilities, audits,

monetary transactions, journals, ledgers, and supporting

documents, including agreements, checks, invoices,

receipts, and vouchers. Records shall be maintained in a

manner consistent with this Act and shall be retained for 5

years;

(7) Inventory control, including:

(i) Tracking purchases and denials of sale;

(ii) Disposal of unusable or damaged cannabis as

required by this Act and rules; and

(8) Purchaser education and support, including:

(i) Whether possession of cannabis is illegal

under federal law;

(ii) Current educational information issued by the

Department of Public Health about the health risks

associated with the use or abuse of cannabis;

(iii) Information about possible side effects;

(iv) Prohibition on smoking cannabis in public

places; and

(v) Offering any other appropriate purchaser

education or support materials.

(b) BLANK.

(c) A dispensing organization shall maintain copies of the

policies and procedures on the dispensary premises and provide

copies to the Department upon request. The dispensing

organization shall review the dispensing organization policies

and procedures at least once every 12 months from the issue

date of the license and update as needed due to changes in

industry standards or as requested by the Department.

(d) A dispensing organization shall ensure that each

principal officer and each dispensing organization agent has a

current agent identification card in the agent's immediate

possession when the agent is at the dispensary.

(e) A dispensing organization shall provide prompt written

notice to the Department, including the date of the event, when

a dispensing organization agent no longer is employed by the

dispensing organization.

(f) A dispensing organization shall promptly document and

report any loss or theft of cannabis from the dispensary to the

Department of State Police and the Department. It is the duty

of any dispensing organization agent who becomes aware of the

loss or theft to report it as provided in this Article.

(g) A dispensing organization shall post the following

information in a conspicuous location in an area of the

dispensary accessible to consumers:

(1) The dispensing organization's license;

(2) The hours of operation.

(h) Signage that shall be posted inside the premises.

(1) All dispensing organizations must display a

placard that states the following: "Cannabis consumption

can impair cognition and driving, is for adult use only,

may be habit forming, and should not be used by pregnant or

breastfeeding women.".

(2) Any dispensing organization that sells edible

cannabis-infused products must display a placard that

states the following:

(A) "Edible cannabis-infused products were

produced in a kitchen that may also process common food

allergens."; and

(B) "The effects of cannabis products can vary from

person to person, and it can take as long as two hours

to feel the effects of some cannabis-infused products.

Carefully review the portion size information and

warnings contained on the product packaging before

consuming.".

(3) All of the required signage in this subsection (h)

shall be no smaller than 24 inches tall by 36 inches wide,

with typed letters no smaller than 2 inches. The signage

shall be clearly visible and readable by customers. The

signage shall be placed in the area where cannabis and

cannabis-infused products are sold and may be translated

into additional languages as needed. The Department may

require a dispensary to display the required signage in a

different language, other than English, if the Secretary

deems it necessary.

(i) A dispensing organization shall prominently post

notices inside the dispensing organization that state

activities that are strictly prohibited and punishable by law,

including, but not limited to:

(1) No minors permitted on the premises unless the

minor is a minor qualifying patient under the Compassionate

Use of Medical Cannabis Pilot Program Act;

(2) Distribution to persons under the age of 21 is

prohibited;

(3) Transportation of cannabis or cannabis products

across state lines is prohibited.

Section 15-70. Operational requirements; prohibitions.

(a) A dispensing organization shall operate in accordance

with the representations made in its application and license

materials. It shall be in compliance with this Act and rules.

(b) A dispensing organization must include the legal name

of the dispensary on the packaging of any cannabis product it

sells.

(c) All cannabis, cannabis-infused products, and cannabis

seeds must be obtained from an Illinois registered adult use

cultivation center, craft grower, infuser, or another

dispensary.

(d) Dispensing organizations are prohibited from selling

any product containing alcohol except tinctures, which must be

limited to containers that are no larger than 100 milliliters.

(e) A dispensing organization shall inspect and count

product received by the adult use cultivation center before

dispensing it.

(f) A dispensing organization may only accept cannabis

deliveries into a restricted access area. Deliveries may not be

accepted through the public or limited access areas unless

otherwise approved by the Department.

(g) A dispensing organization shall maintain compliance

with State and local building, fire, and zoning requirements or

regulations.

(h) A dispensing organization shall submit a list to the

Department of the names of all service professionals that will

work at the dispensary. The list shall include a description of

the type of business or service provided. Changes to the

service professional list shall be promptly provided. No

service professional shall work in the dispensary until the

name is provided to the Department on the service professional

list.

(i) A dispensing organization's license allows for a

dispensary to be operated only at a single location.

(j) A dispensary may operate between 6 a.m. and 10 p.m.

local time.

(k) A dispensing organization must keep all lighting

outside and inside the dispensary in good working order and

wattage sufficient for security cameras.

(l) A dispensing organization shall ensure that any

building or equipment used by a dispensing organization for the

storage or sale of cannabis is maintained in a clean and

sanitary condition.

(m) The dispensary shall be free from infestation by

insects, rodents, or pests.

(n) A dispensing organization shall not:

(1) Produce or manufacture cannabis;

(2) Accept a cannabis product from an adult use

cultivation center, craft grower, infuser, dispensing

organization, or transporting organization unless it is

pre-packaged and labeled in accordance with this Act and

any rules that may be adopted pursuant to this Act;

(3) Obtain cannabis or cannabis-infused products from

outside the State of Illinois;

(4) Sell cannabis or cannabis-infused products to a

purchaser unless the dispensary organization is licensed

under the Compassionate Use of Medical Cannabis Pilot

Program, and the individual is registered under the

Compassionate Use of Medical Cannabis Pilot Program or the

purchaser has been verified to be over the age of 21;

(5) Enter into an exclusive agreement with any adult

use cultivation center, craft grower, or infuser.

Dispensaries shall provide consumers an assortment of

products from various cannabis business establishment

licensees such that the inventory available for sale at any

dispensary from any single cultivation center, craft

grower, processor, or infuser entity shall not be more than

40% of the total inventory available for sale. For the

purpose of this subsection, a cultivation center, craft

grower, processor, or infuser shall be considered part of

the same entity if the licensees share at least one

principal officer. The Department may request that a

dispensary diversify its products as needed or otherwise

discipline a dispensing organization for violating this

requirement;

(6) Refuse to conduct business with an adult use

cultivation center, craft grower, transporting

organization, or infuser that has the ability to properly

deliver the product and is permitted by the Department of

Agriculture, on the same terms as other adult use

cultivation centers, craft growers, infusers, or

transporters with whom it is dealing;

(7) Operate drive-through windows;

(8) Allow for the dispensing of cannabis or

cannabis-infused products in vending machines;

(9) Transport cannabis to residences or other

locations where purchasers may be for delivery;

(10) Enter into agreements to allow persons who are not

dispensing organization agents to deliver cannabis or to

transport cannabis to purchasers.

(11) Operate a dispensary if its video surveillance

equipment is inoperative;

(12) Operate a dispensary if the point-of-sale

equipment is inoperative;

(13) Operate a dispensary if the State's cannabis

electronic verification system is inoperative;

(14) Have fewer than 2 people working at the dispensary

at any time while the dispensary is open;

(15) Be located within 1,500 feet of the property line

of a pre-existing dispensing organization;

(16) Sell clones or any other live plant material;

(17) Sell cannabis, cannabis concentrate, or

cannabis-infused products in combination or bundled with

each other or any other items for one price, and each item

of cannabis, concentrate, or cannabis-infused product must

be separately identified by quantity and price on the

receipt;

(18) Violate any other requirements or prohibitions

set by Department rules.

(o) It is unlawful for any person having an Early Approval

Adult Use Cannabis Dispensing Organization License, a

Conditional Adult Use Cannabis Dispensing Organization, an

Adult Use Dispensing Organization License, or a medical

cannabis dispensing organization license issued under the

Compassionate Use of Medical Cannabis Pilot Program or any

officer, associate, member, representative, or agent of such

licensee to accept, receive, or borrow money or anything else

of value or accept or receive credit (other than merchandising

credit in the ordinary course of business for a period not to

exceed 30 days) directly or indirectly from any adult use

cultivation center, craft grower, infuser, or transporting

organization. This includes anything received or borrowed or

from any stockholders, officers, agents, or persons connected

with an adult use cultivation center, craft grower, infuser, or

transporting organization. This also excludes any received or

borrowed in exchange for preferential placement by the

dispensing organization, including preferential placement on

the dispensing organization's shelves, display cases, or

website.

(p) It is unlawful for any person having an Early Approval

Adult Use Cannabis Dispensing Organization License, a

Conditional Adult Use Cannabis Dispensing Organization, an

Adult Use Dispensing Organization License, or a medical

cannabis dispensing organization license issued under the

Compassionate Use of Medical Cannabis Pilot Program to enter

into any contract with any person licensed to cultivate,

process, or transport cannabis whereby such dispensary

organization agrees not to sell any cannabis cultivated,

processed, transported, manufactured, or distributed by any

other cultivator, transporter, or infuser, and any provision in

any contract violative of this Section shall render the whole

of such contract void and no action shall be brought thereon in

any court.

Section 15-75. Inventory control system.

(a) A dispensing organization agent-in-charge shall have

primary oversight of the dispensing organization's cannabis

inventory verification system, and its point-of-sale system.

The inventory point-of-sale system shall be real-time,

web-based, and accessible by the Department at any time. The

point-of-sale system shall track, at a minimum the date of

sale, amount, price, and currency.

(b) A dispensing organization shall establish an account

with the State's verification system that documents:

(1) Each sales transaction at the time of sale and each

day's beginning inventory, acquisitions, sales, disposal,

and ending inventory.

(2) Acquisition of cannabis and cannabis-infused

products from a licensed adult use cultivation center,

craft grower, infuser, or transporter, including:

(i) A description of the products, including the

quantity, strain, variety, and batch number of each

product received;

(ii) The name and registry identification number

of the licensed adult use cultivation center, craft

grower, or infuser providing the cannabis and

cannabis-infused products;

(iii) The name and registry identification number

of the licensed adult use cultivation center, craft

grower, infuser, or transportation agent delivering

the cannabis;

(iv) The name and registry identification number

of the dispensing organization agent receiving the

cannabis; and

(v) The date of acquisition.

(3) The disposal of cannabis, including:

(i) A description of the products, including the

quantity, strain, variety, batch number, and reason

for the cannabis being disposed;

(ii) The method of disposal; and

(iii) The date and time of disposal.

(c) Upon cannabis delivery, a dispensing organization

shall confirm the product's name, strain name, weight, and

identification number on the manifest matches the information

on the cannabis product label and package. The product name

listed and the weight listed in the State's verification system

shall match the product packaging.

(d) The agent-in-charge shall conduct daily inventory

reconciliation documenting and balancing cannabis inventory by

confirming the State's verification system matches the

dispensing organization's point-of-sale system and the amount

of physical product at the dispensary.

(1) A dispensing organization must receive Department

approval before completing an inventory adjustment. It

shall provide a detailed reason for the adjustment.

Inventory adjustment documentation shall be kept at the

dispensary for 2 years from the date performed.

(2) If the dispensing organization identifies an

imbalance in the amount of cannabis after the daily

inventory reconciliation due to mistake, the dispensing

organization shall determine how the imbalance occurred

and immediately upon discovery take and document

corrective action. If the dispensing organization cannot

identify the reason for the mistake within 2 calendar days

after first discovery, it shall inform the Department

immediately in writing of the imbalance and the corrective

action taken to date. The dispensing organization shall

work diligently to determine the reason for the mistake.

(3) If the dispensing organization identifies an

imbalance in the amount of cannabis after the daily

inventory reconciliation or through other means due to

theft, criminal activity, or suspected criminal activity,

the dispensing organization shall immediately determine

how the reduction occurred and take and document corrective

action. Within 24 hours after the first discovery of the

reduction due to theft, criminal activity, or suspected

criminal activity, the dispensing organization shall

inform the Department and the Department of State Police in

writing.

(4) The dispensing organization shall file an annual

compilation report with the Department, including a

financial statement that shall include, but not be limited

to, an income statement, balance sheet, profit and loss

statement, statement of cash flow, wholesale cost and

sales, and any other documentation requested by the

Department in writing. The financial statement shall

include any other information the Department deems

necessary in order to effectively administer this Act and

all rules, orders, and final decisions promulgated under

this Act. Statements required by this Section shall be

filed with the Department within 60 days after the end of

the calendar year. The compilation report shall include a

letter authored by a licensed certified public accountant

that it has been reviewed and is accurate based on the

information provided. The dispensing organization,

financial statement, and accompanying documents are not

required to be audited unless specifically requested by the

Department.

(e) A dispensing organization shall:

(1) Maintain the documentation required in this

Section in a secure locked location at the dispensing

organization for 5 years from the date on the document;

(2) Provide any documentation required to be

maintained in this Section to the Department for review

upon request; and

(3) If maintaining a bank account, retain for a period

of 5 years a record of each deposit or withdrawal from the

account.

(f) If a dispensing organization chooses to have a return

policy for cannabis and cannabis products, the dispensing

organization shall seek prior approval from the Department.

Section 15-80. Storage requirements.

(a) Authorized on-premises storage. A dispensing

organization must store inventory on its premises. All

inventory stored on the premises must be secured in a

restricted access area and tracked consistently with the

inventory tracking rules.

(b) A dispensary shall be of suitable size and construction

to facilitate cleaning, maintenance, and proper operations.

(c) A dispensary shall maintain adequate lighting,

ventilation, temperature, humidity control, and equipment.

(d) Containers storing cannabis that have been tampered

with, damaged, or opened shall be labeled with the date opened

and quarantined from other cannabis products in the vault until

they are disposed.

(e) Cannabis that was tampered with, expired, or damaged

shall not be stored at the premises for more than 7 calendar

days.

(f) Cannabis samples shall be in a sealed container.

Samples shall be maintained in the restricted access area.

(g) The dispensary storage areas shall be maintained in

accordance with the security requirements in this Act and

rules.

(h) Cannabis must be stored at appropriate temperatures and

under appropriate conditions to help ensure that its packaging,

strength, quality, and purity are not adversely affected.

Section 15-85. Dispensing cannabis.

(a) Before a dispensing organization agent dispenses

cannabis to a purchaser, the agent shall:

(1) Verify the age of the purchaser by checking a

government-issued identification card by use of an

electronic reader or electronic scanning device to scan a

purchaser's government-issued identification, if

applicable, to determine the purchaser's age and the

validity of the identification;

(2) Verify the validity of the government-issued

identification card;

(3) Offer any appropriate purchaser education or

support materials;

(4) Enter the following information into the State's

cannabis electronic verification system:

(i) The dispensing organization agent's

identification number;

(ii) The dispensing organization's identification

number;

(iii) The amount, type (including strain, if

applicable) of cannabis or cannabis-infused product

dispensed;

(iv) The date and time the cannabis was dispensed.

(b) A dispensing organization shall refuse to sell cannabis

or cannabis-infused products to any person unless the person

produces a valid identification showing that the person is 21

years of age or older. A medical cannabis dispensing

organization may sell cannabis or cannabis-infused products to

a person who is under 21 years of age if the sale complies with

the provisions of the Compassionate Use of Medical Cannabis

Pilot Program Act and rules.

(c) For the purposes of this Section, valid identification

must:

(1) Be valid and unexpired;

(2) Contain a photograph and the date of birth of the

person.

Section 15-90. Destruction and disposal of cannabis.

(a) Cannabis and cannabis-infused products must be

destroyed by rendering them unusable using methods approved by

the Department that comply with this Act and rules.

(b) Cannabis waste rendered unusable must be promptly

disposed according to this Act and rules. Disposal of the

cannabis waste rendered unusable may be delivered to a

permitted solid waste facility for final disposition.

Acceptable permitted solid waste facilities include, but are

not limited to:

(1) Compostable mixed waste: Compost, anaerobic

digester, or other facility with approval of the

jurisdictional health department.

(2) Noncompostable mixed waste: Landfill, incinerator,

or other facility with approval of the jurisdictional

health department.

(c) All waste and unusable product shall be weighed,

recorded, and entered into the inventory system before

rendering it unusable. All waste and unusable cannabis

concentrates and cannabis-infused products shall be recorded

and entered into the inventory system before rendering it

unusable. Verification of this event shall be performed by an

agent-in-charge and conducted in an area with video

surveillance.

(d) Electronic documentation of destruction and disposal

shall be maintained for a period of at least 5 years.

Section 15-95. Agent-in-charge.

(a) Every dispensing organization shall designate, at a

minimum, one agent-in-charge for each licensed dispensary. The

designated agent-in-charge must hold a dispensing organization

agent identification card. Maintaining an agent-in-charge is a

continuing requirement for the license, except as provided in

subsection (f).

(b) The agent-in-charge shall be a principal officer or a

full-time agent of the dispensing organization and shall manage

the dispensary. Managing the dispensary includes, but is not

limited to, responsibility for opening and closing the

dispensary, delivery acceptance, oversight of sales and

dispensing organization agents, recordkeeping, inventory,

dispensing organization agent training, and compliance with

this Act and rules. Participation in affairs also includes the

responsibility for maintaining all files subject to audit or

inspection by the Department at the dispensary.

(c) The agent-in-charge is responsible for promptly

notifying the Department of any change of information required

to be reported to the Department.

(d) In determining whether an agent-in-charge manages the

dispensary, the Department may consider the responsibilities

identified in this Section, the number of dispensing

organization agents under the supervision of the

agent-in-charge, and the employment relationship between the

agent-in-charge and the dispensing organization, including the

existence of a contract for employment and any other relevant

fact or circumstance.

(e) The agent-in-charge is responsible for notifying the

Department of a change in the employment status of all

dispensing organization agents within 5 business days after the

change, including notice to the Department if the termination

of an agent was for diversion of product or theft of currency.

(f) In the event of the separation of an agent-in-charge

due to death, incapacity, termination, or any other reason and

if the dispensary does not have an active agent-in-charge, the

dispensing organization shall immediately contact the

Department and request a temporary certificate of authority

allowing the continuing operation. The request shall include

the name of an interim agent-in-charge until a replacement is

identified, or shall include the name of the replacement. The

Department shall issue the temporary certificate of authority

promptly after it approves the request. If a dispensing

organization fails to promptly request a temporary certificate

of authority after the separation of the agent-in-charge, its

registration shall cease until the Department approves the

temporary certificate of authority or registers a new

agent-in-charge. No temporary certificate of authority shall

be valid for more than 90 days. The succeeding agent-in-charge

shall register with the Department in compliance with this

Article. Once the permanent succeeding agent-in-charge is

registered with the Department, the temporary certificate of

authority is void. No temporary certificate of authority shall

be issued for the separation of an agent-in-charge due to

disciplinary action by the Department related to his or her

conduct on behalf of the dispensing organization.

(g) The dispensing organization agent-in-charge

registration shall expire one year from the date it is issued.

The agent-in-charge's registration shall be renewed annually.

The Department shall review the dispensing organization's

compliance history when determining whether to grant the

request to renew.

(h) Upon termination of an agent-in-charge's employment,

the dispensing organization shall immediately reclaim the

dispensing agent identification card. The dispensing

organization shall promptly return the identification card to

the Department.

(i) The Department may deny an application or renewal or

discipline or revoke an agent-in-charge identification card

for any of the following reasons:

(1) Submission of misleading, incorrect, false, or

fraudulent information in the application or renewal

application;

(2) Violation of the requirements of this Act or rules;

(3) Fraudulent use of the agent-in-charge

identification card;

(4) Selling, distributing, transferring in any manner,

or giving cannabis to any unauthorized person;

(5) Theft of cannabis, currency, or any other items

from a dispensary.

(6) Tampering with, falsifying, altering, modifying,

or duplicating an agent-in-charge identification card;

(7) Tampering with, falsifying, altering, or modifying

the surveillance video footage, point-of-sale system, or

the State's verification system;

(8) Failure to notify the Department immediately upon

discovery that the agent-in-charge identification card has

been lost, stolen, or destroyed;

(9) Failure to notify the Department within 5 business

days after a change in the information provided in the

application for an agent-in-charge identification card;

(10) Conviction of a felony offense in accordance with

Sections 2105-131, 2105-135, and 2105-205 of the

Department of Professional Regulation Law of the Civil

Administrative Code of Illinois or any incident listed in

this Act or rules following the issuance of an

agent-in-charge identification card;

(11) Dispensing to purchasers in amounts above the

limits provided in this Act; or

(12) Delinquency in filing any required tax returns or

paying any amounts owed to the State of Illinois

Section 15-100. Security.

(a) A dispensing organization shall implement security

measures to deter and prevent entry into and theft of cannabis

or currency.

(b) A dispensing organization shall submit any changes to

the floor plan or security plan to the Department for

pre-approval. All cannabis shall be maintained and stored in a

restricted access area during construction.

(c) The dispensing organization shall implement security

measures to protect the premises, purchasers, and dispensing

organization agents including, but not limited to the

following:

(1) Establish a locked door or barrier between the

facility's entrance and the limited access area;

(2) Prevent individuals from remaining on the premises

if they are not engaging in activity permitted by this Act

or rules;

(3) Develop a policy that addresses the maximum

capacity and purchaser flow in the waiting rooms and

limited access areas;

(4) Dispose of cannabis in accordance with this Act and

rules;

(5) During hours of operation, store and dispense all

cannabis from the restricted access area. During

operational hours, cannabis shall be stored in an enclosed

locked room or cabinet and accessible only to specifically

authorized dispensing organization agents;

(6) When the dispensary is closed, store all cannabis

and currency in a reinforced vault room in the restricted

access area and in a manner as to prevent diversion, theft,

or loss;

(7) Keep the reinforced vault room and any other

equipment or cannabis storage areas securely locked and

protected from unauthorized entry;

(8) Keep an electronic daily log of dispensing

organization agents with access to the reinforced vault

room and knowledge of the access code or combination;

(9) Keep all locks and security equipment in good

working order;

(10) Maintain an operational security and alarm system

at all times;

(11) Prohibit keys, if applicable, from being left in

the locks, or stored or placed in a location accessible to

persons other than specifically authorized personnel;

(12) Prohibit accessibility of security measures,

including combination numbers, passwords, or electronic or

biometric security systems to persons other than

specifically authorized dispensing organization agents;

(13) Ensure that the dispensary interior and exterior

premises are sufficiently lit to facilitate surveillance;

(14) Ensure that trees, bushes, and other foliage

outside of the dispensary premises do not allow for a

person or persons to conceal themselves from sight;

(15) Develop emergency policies and procedures for

securing all product and currency following any instance of

diversion, theft, or loss of cannabis, and conduct an

assessment to determine whether additional safeguards are

necessary; and

(16) Develop sufficient additional safeguards in

response to any special security concerns, or as required

by the Department.

(d) The Department may request or approve alternative

security provisions that it determines are an adequate

substitute for a security requirement specified in this

Article. Any additional protections may be considered by the

Department in evaluating overall security measures.

(e) A dispensary organization may share premises with a

craft grower or an infuser organization, or both, provided each

licensee stores currency and cannabis or cannabis-infused

products in a separate secured vault to which the other

licensee does not have access or all licensees sharing a vault

share more than 50% of the same ownership.

(f) A dispensing organization shall provide additional

security as needed and in a manner appropriate for the

community where it operates.

(g) Restricted access areas.

(1) All restricted access areas must be identified by

the posting of a sign that is a minimum of 12 inches by 12

inches and that states "Do Not Enter - Restricted Access

Area - Authorized Personnel Only" in lettering no smaller

than one inch in height.

(2) All restricted access areas shall be clearly

described in the floor plan of the premises, in the form

and manner determined by the Department, reflecting walls,

partitions, counters, and all areas of entry and exit. The

floor plan shall show all storage, disposal, and retail

sales areas.

(3) All restricted access areas must be secure, with

locking devices that prevent access from the limited access

areas.

(h) Security and alarm.

(1) A dispensing organization shall have an adequate

security plan and security system to prevent and detect

diversion, theft, or loss of cannabis, currency, or

unauthorized intrusion using commercial grade equipment

installed by an Illinois licensed private alarm contractor

or private alarm contractor agency that shall, at a

minimum, include:

(i) A perimeter alarm on all entry points and glass

break protection on perimeter windows;

(ii) Security shatterproof tinted film on exterior

windows;

(iii) A failure notification system that provides

an audible, text, or visual notification of any failure

in the surveillance system, including, but not limited

to, panic buttons, alarms, and video monitoring

system. The failure notification system shall provide

an alert to designated dispensing organization agents

within 5 minutes after the failure, either by telephone

or text message;

(iv) A duress alarm, panic button, and alarm, or

holdup alarm and after-hours intrusion detection alarm

that by design and purpose will directly or indirectly

notify, by the most efficient means, the Public Safety

Answering Point for the law enforcement agency having

primary jurisdiction;

(v) Security equipment to deter and prevent

unauthorized entrance into the dispensary, including

electronic door locks on the limited and restricted

access areas that include devices or a series of

devices to detect unauthorized intrusion that may

include a signal system interconnected with a radio

frequency method, cellular, private radio signals or

other mechanical or electronic device.

(2) All security system equipment and recordings shall

be maintained in good working order, in a secure location

so as to prevent theft, loss, destruction, or alterations.

(3) Access to surveillance monitoring recording

equipment shall be limited to persons who are essential to

surveillance operations, law enforcement authorities

acting within their jurisdiction, security system service

personnel, and the Department. A current list of authorized

dispensing organization agents and service personnel that

have access to the surveillance equipment must be available

to the Department upon request.

(4) All security equipment shall be inspected and

tested at regular intervals, not to exceed one month from

the previous inspection, and tested to ensure the systems

remain functional.

(5) The security system shall provide protection

against theft and diversion that is facilitated or hidden

by tampering with computers or electronic records.

(6) The dispensary shall ensure all access doors are

not solely controlled by an electronic access panel to

ensure that locks are not released during a power outage.

(i) To monitor the dispensary, the dispensing organization

shall incorporate continuous electronic video monitoring

including the following:

(1) All monitors must be 19 inches or greater;

(2) Unobstructed video surveillance of all enclosed

dispensary areas, unless prohibited by law, including all

points of entry and exit that shall be appropriate for the

normal lighting conditions of the area under surveillance.

The cameras shall be directed so all areas are captured,

including, but not limited to, safes, vaults, sales areas,

and areas where cannabis is stored, handled, dispensed, or

destroyed. Cameras shall be angled to allow for facial

recognition, the capture of clear and certain

identification of any person entering or exiting the

dispensary area and in lighting sufficient during all times

of night or day;

(3) Unobstructed video surveillance of outside areas,

the storefront, and the parking lot, that shall be

appropriate for the normal lighting conditions of the area

under surveillance. Cameras shall be angled so as to allow

for the capture of facial recognition, clear and certain

identification of any person entering or exiting the

dispensary and the immediate surrounding area, and license

plates of vehicles in the parking lot;

(4) 24-hour recordings from all video cameras

available for immediate viewing by the Department upon

request. Recordings shall not be destroyed or altered and

shall be retained for at least 90 days. Recordings shall be

retained as long as necessary if the dispensing

organization is aware of the loss or theft of cannabis or a

pending criminal, civil, or administrative investigation

or legal proceeding for which the recording may contain

relevant information;

(5) The ability to immediately produce a clear, color

still photo from the surveillance video, either live or

recorded;

(6) A date and time stamp embedded on all video

surveillance recordings. The date and time shall be

synchronized and set correctly and shall not significantly

obscure the picture;

(7) The ability to remain operational during a power

outage and ensure all access doors are not solely

controlled by an electronic access panel to ensure that

locks are not released during a power outage;

(8) All video surveillance equipment shall allow for

the exporting of still images in an industry standard image

format, including .jpg, .bmp, and .gif. Exported video

shall have the ability to be archived in a proprietary

format that ensures authentication of the video and

guarantees that no alteration of the recorded image has

taken place. Exported video shall also have the ability to

be saved in an industry standard file format that can be

played on a standard computer operating system. All

recordings shall be erased or destroyed before disposal;

(9) The video surveillance system shall be operational

during a power outage with a 4-hour minimum battery backup;

(10) A video camera or cameras recording at each

point-of-sale location allowing for the identification of

the dispensing organization agent distributing the

cannabis and any purchaser. The camera or cameras shall

capture the sale, the individuals and the computer monitors

used for the sale;

(11) A failure notification system that provides an

audible and visual notification of any failure in the

electronic video monitoring system; and

(12) All electronic video surveillance monitoring must

record at least the equivalent of 8 frames per second and

be available as recordings to the Department and the

Department of State Police 24 hours a day via a secure

web-based portal with reverse functionality.

(j) The requirements contained in this Act are minimum

requirements for operating a dispensing organization. The

Department may establish additional requirements by rule.

Section 15-110. Recordkeeping.

(a) Dispensing organization records must be maintained

electronically for 3 years and be available for inspection by

the Department upon request. Required written records include,

but are not limited to, the following:

(1) Operating procedures;

(2) Inventory records, policies, and procedures;

(3) Security records;

(4) Audit records;

(5) Staff training plans and completion documentation;

(6) Staffing plan; and

(7) Business records, including but not limited to:

(i) Assets and liabilities;

(ii) Monetary transactions;

(iii) Written or electronic accounts, including

bank statements, journals, ledgers, and supporting

documents, agreements, checks, invoices, receipts, and

vouchers; and

(iv) Any other financial accounts reasonably

related to the dispensary operations.

(b) Storage and transfer of records. If a dispensary closes

due to insolvency, revocation, bankruptcy, or for any other

reason, all records must be preserved at the expense of the

dispensing organization for at least 3 years in a form and

location in Illinois acceptable to the Department. The

dispensing organization shall keep the records longer if

requested by the Department. The dispensing organization shall

notify the Department of the location where the dispensary

records are stored or transferred.

Section 15-120. Closure of a dispensary.

(a) If a dispensing organization decides not to renew its

license or decides to close its business, it shall promptly

notify the Department not less than 3 months before the

effective date of the closing date or as otherwise authorized

by the Department.

(b) The dispensing organization shall work with the

Department to develop a closure plan that addresses, at a

minimum, the transfer of business records, transfer of cannabis

products, and anything else the Department finds necessary.

Section 15-125. Fees. After January 1, 2022, the Department

may by rule modify any fee established under this Article.

Section 15-135. Investigations.

(a) Dispensing organizations are subject to random and

unannounced dispensary inspections and cannabis testing by the

Department, the Department of State Police, and local law

enforcement.

(b) The Department and its authorized representatives may

enter any place, including a vehicle, in which cannabis is

held, stored, dispensed, sold, produced, delivered,

transported, manufactured, or disposed of and inspect, in a

reasonable manner, the place and all pertinent equipment,

containers and labeling, and all things including records,

files, financial data, sales data, shipping data, pricing data,

personnel data, research, papers, processes, controls, and

facility, and inventory any stock of cannabis and obtain

samples of any cannabis or cannabis-infused product, any labels

or containers for cannabis, or paraphernalia.

(c) The Department may conduct an investigation of an

applicant, application, dispensing organization, principal

officer, dispensary agent, third party vendor, or any other

party associated with a dispensing organization for an alleged

violation of this Act or rules or to determine qualifications

to be granted a registration by the Department.

(d) The Department may require an applicant or holder of

any license issued pursuant to this Article to produce

documents, records, or any other material pertinent to the

investigation of an application or alleged violations of this

Act or rules. Failure to provide the required material may be

grounds for denial or discipline.

(e) Every person charged with preparation, obtaining, or

keeping records, logs, reports, or other documents in

connection with this Act and rules and every person in charge,

or having custody, of those documents shall, upon request by

the Department, make the documents immediately available for

inspection and copying by the Department, the Department's

authorized representative, or others authorized by law to

review the documents.

Section 15-140. Citations. The Department may issue

nondisciplinary citations for minor violations. Any such

citation issued by the Department may be accompanied by a fee.

The fee shall not exceed $20,000 per violation. The citation

shall be issued to the licensee and shall contain the

licensee's name and address, the licensee's license number, a

brief factual statement, the Sections of the law allegedly

violated, and the fee, if any, imposed. The citation must

clearly state that the licensee may choose, in lieu of

accepting the citation, to request a hearing. If the licensee

does not dispute the matter in the citation with the Department

within 30 days after the citation is served, then the citation

shall become final and not subject to appeal. The penalty shall

be a fee or other conditions as established by rule.

Section 15-145. Grounds for discipline.

(a) The Department may deny issuance, refuse to renew or

restore, or may reprimand, place on probation, suspend, revoke,

or take other disciplinary or nondisciplinary action against

any license or agent identification card or may impose a fine

for any of the following:

(1) Material misstatement in furnishing information to

the Department;

(2) Violations of this Act or rules;

(3) Obtaining an authorization or license by fraud or

misrepresentation;

(4) A pattern of conduct that demonstrates

incompetence or that the applicant has engaged in conduct

or actions that would constitute grounds for discipline

under the Act;

(5) Aiding or assisting another person in violating any

provision of this Act or rules;

(6) Failing to respond to a written request for

information by the Department within 30 days;

(7) Engaging in unprofessional, dishonorable, or

unethical conduct of a character likely to deceive,

defraud, or harm the public;

(8) Adverse action by another United States

jurisdiction or foreign nation;

(9) A finding by the Department that the licensee,

after having his or her license placed on suspended or

probationary status, has violated the terms of the

suspension or probation;

(10) Conviction, entry of a plea of guilty, nolo

contendere, or the equivalent in a State or federal court

of a principal officer or agent-in-charge of a felony

offense in accordance with Sections 2105-131, 2105-135,

and 2105-205 of the Department of Professional Regulation

Law of the Civil Administrative Code of Illinois;

(11) Excessive use or addiction to alcohol, narcotics,

stimulants, or any other chemical agent or drug;

(12) A finding by the Department of a discrepancy in a

Department audit of cannabis;

(13) A finding by the Department of a discrepancy in a

Department audit of capital or funds;

(14) A finding by the Department of acceptance of

cannabis from a source other than an Adult Use Cultivation

Center, craft grower, infuser, or transporting

organization licensed by the Department of Agriculture, or

a dispensing organization licensed by the Department;

(15) An inability to operate using reasonable

judgment, skill, or safety due to physical or mental

illness or other impairment or disability, including,

without limitation, deterioration through the aging

process or loss of motor skills or mental incompetence;

(16) Failing to report to the Department within the

time frames established, or if not identified, 14 days, of

any adverse action taken against the dispensing

organization or an agent by a licensing jurisdiction in any

state or any territory of the United States or any foreign

jurisdiction, any governmental agency, any law enforcement

agency or any court defined in this Section;

(17) Any violation of the dispensing organization's

policies and procedures submitted to the Department

annually as a condition for licensure;

(18) Failure to inform the Department of any change of

address within 10 business days;

(19) Disclosing customer names, personal information,

or protected health information in violation of any State

or federal law;

(20) Operating a dispensary before obtaining a license

from the Department;

(21) Performing duties authorized by this Act prior to

receiving a license to perform such duties;

(22) Dispensing cannabis when prohibited by this Act or

rules;

(23) Any fact or condition that, if it had existed at

the time of the original application for the license, would

have warranted the denial of the license;

(24) Permitting a person without a valid agent

identification card to perform licensed activities under

this Act;

(25) Failure to assign an agent-in-charge as required

by this Article;

(26) Failure to provide the training required by

paragraph (3) of subsection (i) of Section 15-40 within the

provided timeframe

(27) Personnel insufficient in number or unqualified

in training or experience to properly operate the

dispensary business;

(28) Any pattern of activity that causes a harmful

impact on the community; and

(29) Failing to prevent diversion, theft, or loss of

cannabis.

(b) All fines and fees imposed under this Section shall be

paid within 60 days after the effective date of the order

imposing the fine or as otherwise specified in the order.

(c) A circuit court order establishing that an

agent-in-charge or principal officer holding an agent

identification card is subject to involuntary admission as that

term is defined in Section 1-119 or 1-119.1 of the Mental

Health and Developmental Disabilities Code shall operate as a

suspension of that card.

Section 15-150. Temporary suspension.

(a) The Secretary of Financial and Professional Regulation

may temporarily suspend a dispensing organization license or an

agent registration without a hearing if the Secretary finds

that public safety or welfare requires emergency action. The

Secretary shall cause the temporary suspension by issuing a

suspension notice in connection with the institution of

proceedings for a hearing.

(b) If the Secretary temporarily suspends a license or

agent registration without a hearing, the licensee or agent is

entitled to a hearing within 45 days after the suspension

notice has been issued. The hearing shall be limited to the

issues cited in the suspension notice, unless all parties agree

otherwise.

(c) If the Department does not hold a hearing with 45 days

after the date the suspension notice was issued, then the

suspended license or registration shall be automatically

reinstated and the suspension vacated.

(d) The suspended licensee or agent may seek a continuance

of the hearing date, during which time the suspension remains

in effect and the license or registration shall not be

automatically reinstated.

(e) Subsequently discovered causes of action by the

Department after the issuance of the suspension notice may be

filed as a separate notice of violation. The Department is not

precluded from filing a separate action against the suspended

licensee or agent.

Section 15-155. Consent to administrative supervision

order. In appropriate cases, the Department may resolve a

complaint against a licensee or agent through the issuance of a

consent order for administrative supervision. A license or

agent subject to a consent order shall be considered by the

Department to hold a license or registration in good standing.

Section 15-160. Notice; hearing.

(a) The Department shall, before disciplining an applicant

or licensee, at least 30 days before the date set for the

hearing: (i) notify the accused in writing of the charges made

and the time and place for the hearing on the charges; (ii)

direct him or her to file a written answer to the charges under

oath within 20 days after service; and (iii) inform the

applicant or licensee that failure to answer will result in a

default being entered against the applicant or licensee.

(b) At the time and place fixed in the notice, the hearing

officer appointed by the Secretary shall proceed to hear the

charges, and the parties or their counsel shall be accorded

ample opportunity to present any pertinent statements,

testimony, evidence, and arguments. The hearing officer may

continue the hearing from time to time. In case the person,

after receiving the notice, fails to file an answer, his or her

license may, in the discretion of the Secretary, having first

received the recommendation of the hearing officer, be

suspended, revoked, or placed on probationary status, or be

subject to whatever disciplinary action the Secretary

considers proper, including a fine, without hearing, if that

act or acts charged constitute sufficient grounds for that

action under this Act.

(c) The written notice and any notice in the subsequent

proceeding may be served by regular mail or email to the

licensee's or applicant's address of record.

Section 15-165. Subpoenas; oaths. The Department shall

have the power to subpoena and bring before it any person and

to take testimony either orally or by deposition, or both, with

the same fees and mileage and in the same manner as prescribed

by law in judicial proceedings in civil cases in courts in this

State. The Secretary or the hearing officer shall each have the

power to administer oaths to witnesses at any hearings that the

Department is authorized to conduct.

Section 15-170. Hearing; motion for rehearing.

(a) The hearing officer shall hear evidence in support of

the formal charges and evidence produced by the licensee. At

the conclusion of the hearing, the hearing officer shall

present to the Secretary a written report of his or her

findings of fact, conclusions of law, and recommendations.

(b) At the conclusion of the hearing, a copy of the hearing

officer's report shall be served upon the applicant or licensee

by the Department, either personally or as provided in this Act

for the service of a notice of hearing. Within 20 calendar days

after service, the applicant or licensee may present to the

Department a motion in writing for rehearing, which shall

specify the particular grounds for rehearing. The Department

may respond to the motion for rehearing within 20 calendar days

after its service on the Department. If no motion for rehearing

is filed, then, upon the expiration of the time specified for

filing such motion or upon denial of a motion for rehearing,

the Secretary may enter an order in accordance with the

recommendation of the hearing officer. If the applicant or

licensee orders from the reporting service and pays for a

transcript of the record within the time for filing a motion

for rehearing, the 20-day period within which a motion may be

filed shall commence upon the delivery of the transcript to the

applicant or licensee.

(c) If the Secretary disagrees in any regard with the

report of the hearing officer, the Secretary may issue an order

contrary to the report.

(d) Whenever the Secretary is not satisfied that

substantial justice has been done, the Secretary may order a

rehearing by the same or another hearing officer.

(e) At any point in any investigation or disciplinary

proceeding under in this Article, both parties may agree to a

negotiated consent order. The consent order shall be final upon

signature of the Secretary.

Section 15-175. Review under the Administrative Review

Law.

(a) All final administrative decisions of the Department

hereunder shall be subject to judicial review under the

provisions of the Administrative Review Law, and all amendment

and modifications thereof. The term "administrative decision"

is defined as in Section 3-101 of the Code of Civil Procedure.

(b) Proceedings for judicial review shall be commenced in

the circuit court of the county in which the party applying for

review resides, but if the party is not a resident of Illinois,

the venue shall be in Sangamon County.

(c) The Department shall not be required to certify any

record to the court, file any answer in court, or otherwise

appear in any court in a judicial review proceeding, unless and

until the Department has received from the plaintiff payment of

the costs of furnishing and certifying the record, which costs

shall be determined by the Department. Failure on the part of

the plaintiff to file a receipt in court shall be grounds for

dismissal of the action.

ARTICLE 20.

ADULT USE CULTIVATION CENTERS

Section 20-1. Definition. In this Article, "Department"

means the Department of Agriculture.

Section 20-5. Issuance of licenses. On or after July 1,

2021, the Department of Agriculture by rule may:

(1) Modify or change the number of cultivation center

licenses available, which shall at no time exceed 30

cultivation center licenses. In determining whether to

exercise the authority granted by this subsection, the

Department of Agriculture must consider the following

factors:

(A) The percentage of cannabis sales occurring in

Illinois not in the regulated market using data from

the Substance Abuse and Mental Health Services

Administration, National Survey on Drug Use and

Health, Illinois Behavioral Risk Factor Surveillance

System, and tourism data from the Illinois Office of

Tourism to ascertain total cannabis consumption in

Illinois compared to the amount of sales in licensed

dispensing organizations;

(B) Whether there is an adequate supply of cannabis

and cannabis-infused products to serve registered

medical cannabis patients;

(C) Whether there is an adequate supply of cannabis

and cannabis-infused products to serve purchasers;

(D) Whether there is an oversupply of cannabis in

Illinois leading to trafficking of cannabis to any

other state;

(E) Population increases or shifts;

(F) Changes to federal law;

(G) Perceived security risks of increasing the

number or location of cultivation centers;

(H) The past security records of cultivation

centers;

(I) The Department of Agriculture's capacity to

appropriately regulate additional licensees;

(J) The findings and recommendations from the

disparity and availability study commissioned by the

Illinois Cannabis Regulation Oversight Officer

referenced in subsection (e) of Section 5-45 to reduce

or eliminate any identified barriers to entry in the

cannabis industry; and

(K) Any other criteria the Department of

Agriculture deems relevant.

(2) Modify or change the licensing application process

to reduce or eliminate the barriers identified in the

disparity and availability study commission by the

Illinois Cannabis Regulation Oversight Officer and shall

make modifications to remedy evidence of discrimination.

Section 20-10. Early Approval of Adult Use Cultivation

Center License.

(a) Any medical cannabis cultivation center registered and

in good standing under the Compassionate Use of Medical

Cannabis Pilot Program Act as of the effective date of this Act

may, within 60 days of the effective date of this Act but no

later than 180 days from the effective date of this Act, apply

to the Department of Agriculture for an Early Approval Adult

Use Cultivation Center License to produce cannabis and

cannabis-infused products at its existing facilities as of the

effective date of this Act.

(b) A medical cannabis cultivation center seeking issuance

of an Early Approval Adult Use Cultivation Center License shall

submit an application on forms provided by the Department of

Agriculture. The application must meet or include the following

qualifications:

(1) Payment of a nonrefundable application fee of

$100,000 to be deposited into the Cannabis Regulation Fund;

(2) Proof of registration as a medical cannabis

cultivation center that is in good standing;

(3) Submission of the application by the same person or

entity that holds the medical cannabis cultivation center

registration;

(4) Certification that the applicant will comply with

the requirements of Section 20-30;

(5) The legal name of the cultivation center;

(6) The physical address of the cultivation center;

(7) The name, address, social security number, and date

of birth of each principal officer and board member of the

cultivation center; each of those individuals shall be at

least 21 years of age;

(8) A nonrefundable Cannabis Business Development Fee

equal to 5% of the cultivation center's total sales between

June 1, 2018 to June 1, 2019 or $750,000, whichever is

less, but at not less than $250,000, to be deposited into

the Cannabis Business Development Fund; and

(9) A commitment to completing one of the following

Social Equity Inclusion Plans provided for in this

subsection (b) before the expiration of the Early Approval

Adult Use Cultivation Center License:

(A) A contribution of 5% of the cultivation

center's total sales from June 1, 2018 to June 1, 2019,

or $100,000, whichever is less, to one of the

following:

(i) the Cannabis Business Development Fund.

This is in addition to the fee required by item (8)

of this subsection (b);

(ii) a cannabis industry training or education

program at an Illinois community college as

defined in the Public Community College Act;

(iii) a program that provides job training

services to persons recently incarcerated or that

operates in a Disproportionately Impacted Area.

(B) Participate as a host in a cannabis business

incubator program for at least one year approved by the

Department of Commerce and Economic Opportunity, and

in which an Early Approval Adult Use Cultivation Center

License holder agrees to provide a loan of at least

$100,000 and mentorship to incubate a licensee that

qualifies as a Social Equity Applicant. As used in this

Section, "incubate" means providing direct financial

assistance and training necessary to engage in

licensed cannabis industry activity similar to that of

the host licensee. The Early Approval Adult Use

Cultivation Center License holder or the same entity

holding any other licenses issued pursuant to this Act

shall not take an ownership stake of greater than 10%

in any business receiving incubation services to

comply with this subsection. If an Early Approval Adult

Use Cultivation Center License holder fails to find a

business to incubate to comply with this subsection

before its Early Approval Adult Use Cultivation Center

License expires, it may opt to meet the requirement of

this subsection by completing another item from this

subsection prior to the expiration of its Early

Approval Adult Use Cultivation Center License to avoid

a penalty.

(c) An Early Approval Adult Use Cultivation Center License

is valid until March 31, 2021. A cultivation center that

obtains an Early Approval Adult Use Cultivation Center License

shall receive written or electronic notice 90 days before the

expiration of the license that the license will expire, and

inform the license holder that it may renew its Early Approval

Adult Use Cultivation Center License. The Department of

Agriculture shall grant a renewal of an Early Approval Adult

Use Cultivation Center License within 60 days of submission of

an application if:

(1) the cultivation center submits an application and

the required renewal fee of $100,000 for an Early Approval

Adult Use Cultivation Center License;

(2) the Department of Agriculture has not suspended the

license of the cultivation center or suspended or revoked

the license for violating this Act or rules adopted under

this Act; and

(3) the cultivation center has completed a Social

Equity Inclusion Plan as required by item (9) of subsection

(b) of this Section.

(c-5) The Early Approval Adult Use Cultivation Center

License renewed pursuant to subsection (c) of this Section

shall expire March 31, 2022. The Early Approval Adult Use

Cultivation Center Licensee shall receive written or

electronic notice 90 days before the expiration of the license

that the license will expire, and inform the license holder

that it may apply for an Adult Use Cultivation Center License.

The Department of Agriculture shall grant an Adult Use

Dispensing Organization License within 60 days of an

application being deemed complete if the applicant meets all of

the criteria in Section 20-21.

(d) The license fee required by paragraph (1) of subsection

(c) of this Section shall be in addition to any license fee

required for the renewal of a registered medical cannabis

cultivation center license that expires during the effective

period of the Early Approval Adult Use Cultivation Center

License.

(e) Applicants must submit all required information,

including the requirements in subsection (b) of this Section,

to the Department of Agriculture. Failure by an applicant to

submit all required information may result in the application

being disqualified.

(f) If the Department of Agriculture receives an

application with missing information, the Department may issue

a deficiency notice to the applicant. The applicant shall have

10 calendar days from the date of the deficiency notice to

submit complete information. Applications that are still

incomplete after this opportunity to cure may be disqualified.

(g) If an applicant meets all the requirements of

subsection (b) of this Section, the Department of Agriculture

shall issue the Early Approval Adult Use Cultivation Center

License within 14 days of receiving the application unless:

(1) The licensee; principal officer, board member, or

person having a financial or voting interest of 5% or

greater in the licensee; or agent is delinquent in filing

any required tax returns or paying any amounts owed to the

State of Illinois;

(2) The Director of Agriculture determines there is

reason, based on an inordinate number of documented

compliance violations, the licensee is not entitled to an

Early Approval Adult Use Cultivation Center License; or

(3) The licensee fails to commit to the Social Equity

Inclusion Plan.

(h) A cultivation center may begin producing cannabis and

cannabis-infused products once the Early Approval Adult Use

Cultivation Center License is approved. A cultivation center

that obtains an Early Approval Adult Use Cultivation Center

License may begin selling cannabis and cannabis-infused

products on December 1, 2019.

(i) An Early Approval Adult Use Cultivation Center License

holder must continue to produce and provide an adequate supply

of cannabis and cannabis-infused products for purchase by

qualifying patients and caregivers. For the purposes of this

subsection, "adequate supply" means a monthly production level

that is comparable in type and quantity to those medical

cannabis products produced for patients and caregivers on an

average monthly basis for the 6 months before the effective

date of this Act.

(j) If there is a shortage of cannabis or cannabis-infused

products, a license holder shall prioritize patients

registered under the Compassionate Use of Medical Cannabis

Pilot Program Act over adult use purchasers.

(k) If an Early Approval Adult Use Cultivation Center

licensee fails to submit an application for an Adult Use

Cultivation Center License before the expiration of the Early

Approval Adult Use Cultivation Center License pursuant to

subsection (c-5) of this Section, the cultivation center shall

cease adult use cultivation until it receives an Adult Use

Cultivation Center License.

(l) A cultivation center agent who holds a valid

cultivation center agent identification card issued under the

Compassionate Use of Medical Cannabis Pilot Program Act and is

an officer, director, manager, or employee of the cultivation

center licensed under this Section may engage in all activities

authorized by this Article to be performed by a cultivation

center agent.

(m) If the Department of Agriculture suspends or revokes

the Early Approval Adult Use Cultivation Center License of a

cultivation center that also holds a medical cannabis

cultivation center license issued under the Compassionate Use

of Medical Cannabis Pilot Program Act, the Department of

Agriculture may suspend or revoke the medical cannabis

cultivation center license concurrently with the Early

Approval Adult Use Cultivation Center License.

(n) All fees or fines collected from an Early Approval

Adult Use Cultivation Center License holder as a result of a

disciplinary action in the enforcement of this Act shall be

deposited into the Cannabis Regulation Fund.

Section 20-15. Conditional Adult Use Cultivation Center

application.

(a) If the Department of Agriculture makes available

additional cultivation center licenses pursuant to Section

20-5, applicants for a Conditional Adult Use Cultivation Center

License shall electronically submit the following in such form

as the Department of Agriculture may direct:

(1) the nonrefundable application fee set by rule by

the Department of Agriculture, to be deposited into the

Cannabis Regulation Fund;

(2) the legal name of the cultivation center;

(3) the proposed physical address of the cultivation

center;

(4) the name, address, social security number, and date

of birth of each principal officer and board member of the

cultivation center; each principal officer and board

member shall be at least 21 years of age;

(5) the details of any administrative or judicial

proceeding in which any of the principal officers or board

members of the cultivation center (i) pled guilty, were

convicted, fined, or had a registration or license

suspended or revoked, or (ii) managed or served on the

board of a business or non-profit organization that pled

guilty, was convicted, fined, or had a registration or

license suspended or revoked;

(6) proposed operating bylaws that include procedures

for the oversight of the cultivation center, including the

development and implementation of a plant monitoring

system, accurate recordkeeping, staffing plan, and

security plan approved by the Department of State Police

that are in accordance with the rules issued by the

Department of Agriculture under this Act. A physical

inventory shall be performed of all plants and cannabis on

a weekly basis by the cultivation center;

(7) verification from the Department of State Police

that all background checks of the prospective principal

officers, board members, and agents of the cannabis

business establishment have been conducted;

(8) a copy of the current local zoning ordinance or

permit and verification that the proposed cultivation

center is in compliance with the local zoning rules and

distance limitations established by the local

jurisdiction;

(9) proposed employment practices, in which the

applicant must demonstrate a plan of action to inform,

hire, and educate minorities, women, veterans, and persons

with disabilities, engage in fair labor practices, and

provide worker protections;

(10) whether an applicant can demonstrate experience

in or business practices that promote economic empowerment

in Disproportionately Impacted Areas;

(11) experience with the cultivation of agricultural

or horticultural products, operating an agriculturally

related business, or operating a horticultural business;

(12) a description of the enclosed, locked facility

where cannabis will be grown, harvested, manufactured,

processed, packaged, or otherwise prepared for

distribution to a dispensing organization;

(13) a survey of the enclosed, locked facility,

including the space used for cultivation;

(14) cultivation, processing, inventory, and packaging

plans;

(15) a description of the applicant's experience with

agricultural cultivation techniques and industry

standards;

(16) a list of any academic degrees, certifications, or

relevant experience of all prospective principal officers,

board members, and agents of the related business;

(17) the identity of every person having a financial or

voting interest of 5% or greater in the cultivation center

operation with respect to which the license is sought,

whether a trust, corporation, partnership, limited

liability company, or sole proprietorship, including the

name and address of each person;

(18) a plan describing how the cultivation center will

address each of the following:

(i) energy needs, including estimates of monthly

electricity and gas usage, to what extent it will

procure energy from a local utility or from on-site

generation, and if it has or will adopt a sustainable

energy use and energy conservation policy;

(ii) water needs, including estimated water draw

and if it has or will adopt a sustainable water use and

water conservation policy; and

(iii) waste management, including if it has or will

adopt a waste reduction policy;

(19) a diversity plan that includes a narrative of not

more than 2,500 words that establishes a goal of diversity

in ownership, management, employment, and contracting to

ensure that diverse participants and groups are afforded

equality of opportunity;

(20) any other information required by rule;

(21) a recycling plan:

(A) Purchaser packaging, including cartridges,

shall be accepted by the applicant and recycled.

(B) Any recyclable waste generated by the cannabis

cultivation facility shall be recycled per applicable

State and local laws, ordinances, and rules.

(C) Any cannabis waste, liquid waste, or hazardous

waste shall be disposed of in accordance with 8 Ill.

Adm. Code 1000.460, except, to the greatest extent

feasible, all cannabis plant waste will be rendered

unusable by grinding and incorporating the cannabis

plant waste with compostable mixed waste to be disposed

of in accordance with 8 Ill Adm. Code 1000.460(g)(1);

(22) commitment to comply with local waste provisions:

a cultivation facility must remain in compliance with

applicable State and federal environmental requirements,

including, but not limited to:

(A) storing, securing, and managing all

recyclables and waste, including organic waste

composed of or containing finished cannabis and

cannabis products, in accordance with applicable State

and local laws, ordinances, and rules; and

(B) Disposing liquid waste containing cannabis or

byproducts of cannabis processing in compliance with

all applicable State and federal requirements,

including, but not limited to, the cannabis

cultivation facility's permits under Title X of the

Environmental Protection Act; and

(23) a commitment to a technology standard for resource

efficiency of the cultivation center facility.

(A) A cannabis cultivation facility commits to use

resources efficiently, including energy and water. For

the following, a cannabis cultivation facility commits

to meet or exceed the technology standard identified in

items (i), (ii), (iii), and (iv), which may be modified

by rule:

(i) lighting systems, including light bulbs;

(ii) HVAC system;

(iii) water application system to the crop;

and

(iv) filtration system for removing

contaminants from wastewater.

(B) Lighting. The Lighting Power Densities (LPD)

for cultivation space commits to not exceed an average

of 36 watts per gross square foot of active and growing

space canopy, or all installed lighting technology

shall meet a photosynthetic photon efficacy (PPE) of no

less than 2.2 micromoles per joule fixture and shall be

featured on the DesignLights Consortium (DLC)

Horticultural Specification Qualified Products List

(QPL). In the event that DLC requirement for minimum

efficacy exceeds 2.2 micromoles per joule fixture,

that PPE shall become the new standard.

(C) HVAC.

(i) For cannabis grow operations with less

than 6,000 square feet of canopy, the licensee

commits that all HVAC units will be

high-efficiency ductless split HVAC units, or

other more energy efficient equipment.

(ii) For cannabis grow operations with 6,000

square feet of canopy or more, the licensee commits

that all HVAC units will be variable refrigerant

flow HVAC units, or other more energy efficient

equipment.

(D) Water application.

(i) The cannabis cultivation facility commits

to use automated watering systems, including, but

not limited to, drip irrigation and flood tables,

to irrigate cannabis crop.

(ii) The cannabis cultivation facility commits

to measure runoff from watering events and report

this volume in its water usage plan, and that on

average, watering events shall have no more than

20% of runoff of water.

(E) Filtration. The cultivator commits that HVAC

condensate, dehumidification water, excess runoff, and

other wastewater produced by the cannabis cultivation

facility shall be captured and filtered to the best of

the facility's ability to achieve the quality needed to

be reused in subsequent watering rounds.

(F) Reporting energy use and efficiency as

required by rule.

(b) Applicants must submit all required information,

including the information required in Section 20-10, to the

Department of Agriculture. Failure by an applicant to submit

all required information may result in the application being

disqualified.

(c) If the Department of Agriculture receives an

application with missing information, the Department of

Agriculture may issue a deficiency notice to the applicant. The

applicant shall have 10 calendar days from the date of the

deficiency notice to resubmit the incomplete information.

Applications that are still incomplete after this opportunity

to cure will not be scored and will be disqualified.

(e) A cultivation center that is awarded a Conditional

Adult Use Cultivation Center License pursuant to the criteria

in Section 20-20 shall not grow, purchase, possess, or sell

cannabis or cannabis-infused products until the person has

received an Adult Use Cultivation Center License issued by the

Department of Agriculture pursuant to Section 20-21 of this

Act.

Section 20-20. Conditional Adult Use License scoring

applications.

(a) The Department of Agriculture shall by rule develop a

system to score cultivation center applications to

administratively rank applications based on the clarity,

organization, and quality of the applicant's responses to

required information. Applicants shall be awarded points based

on the following categories:

(1) Suitability of the proposed facility;

(2) Suitability of employee training plan;

(3) Security and recordkeeping;

(4) Cultivation plan;

(5) Product safety and labeling plan;

(6) Business plan;

(7) The applicant's status as a Social Equity

Applicant, which shall constitute no less than 20% of total

available points;

(8) Labor and employment practices, which shall

constitute no less than 2% of total available points;

(9) Environmental plan as described in paragraphs

(18), (21), (22), and (23) of subsection (a) of Section

20-15;

(10) The applicant is 51% or more owned and controlled

by an individual or individuals who have been an Illinois

resident for the past 5 years as proved by tax records;

(11) The applicant is 51% or more controlled and owned

by an individual or individuals who meet the qualifications

of a veteran as defined by Section 45-57 of the Illinois

Procurement Code;

(12) a diversity plan that includes a narrative of not

more than 2,500 words that establishes a goal of diversity

in ownership, management, employment, and contracting to

ensure that diverse participants and groups are afforded

equality of opportunity; and

(13) Any other criteria the Department of Agriculture

may set by rule for points.

(b) The Department may also award bonus points for the

applicant's plan to engage with the community. Bonus points

will only be awarded if the Department receives applications

that receive an equal score for a particular region.

(c) Should the applicant be awarded a cultivation center

license, the information and plans that an applicant provided

in its application, including any plans submitted for the

acquiring of bonus points, becomes a mandatory condition of the

permit. Any variation from or failure to perform such plans may

result in discipline, including the revocation or nonrenewal of

a license.

(d) Should the applicant be awarded a cultivation center

license, it shall pay a fee of $100,000 prior to receiving the

license, to be deposited into the Cannabis Regulation Fund. The

Department of Agriculture may by rule adjust the fee in this

Section after January 1, 2021.

Section 20-21. Adult Use Cultivation Center License.

(a) A person or entity is only eligible to receive an Adult

Use Cultivation Center License if the person or entity has

first been awarded a Conditional Adult Use Cultivation Center

License pursuant to this Act or the person or entity has

renewed its Early Approval Cultivation Center License pursuant

to subsection (c) of Section 20-10.

(b) The Department of Agriculture shall not issue an Adult

Use Cultivation Center License until:

(1) the Department of Agriculture has inspected the

cultivation center site and proposed operations and

verified that they are in compliance with this Act and

local zoning laws;

(2) the Conditional Adult Use Cultivation Center

License holder has paid a registration fee of $100,000 or a

prorated amount accounting for the difference of time

between when the Adult Use Cultivation Center License is

issued and March 31 of the next even-numbered year; and

(3) The Conditional Adult Use Cultivation Center

License holder has met all the requirements in the Act and

rules.

Section 20-25. Denial of application. An application for a

cultivation center license must be denied if any of the

following conditions are met:

(1) the applicant failed to submit the materials

required by this Article;

(2) the applicant would not be in compliance with local

zoning rules;

(3) one or more of the prospective principal officers

or board members causes a violation of Section 20-30;

(4) one or more of the principal officers or board

members is under 21 years of age;

(5) the person has submitted an application for a

permit under this Act that contains false information; or

(6) the licensee, principal officer, board member, or

person having a financial or voting interest of 5% or

greater in the licensee, or the agent is delinquent in

filing any required tax returns or paying any amounts owed

to the State of Illinois.

Section 20-30. Cultivation center requirements;

prohibitions.

(a) The operating documents of a cultivation center shall

include procedures for the oversight of the cultivation center

a cannabis plant monitoring system including a physical

inventory recorded weekly, accurate recordkeeping, and a

staffing plan.

(b) A cultivation center shall implement a security plan

reviewed by the Department of State Police that includes, but

is not limited to: facility access controls, perimeter

intrusion detection systems, personnel identification systems,

24-hour surveillance system to monitor the interior and

exterior of the cultivation center facility and accessibility

to authorized law enforcement, the Department of Public Health

where processing takes place, and the Department of Agriculture

in real time.

(c) All cultivation of cannabis by a cultivation center

must take place in an enclosed, locked facility at the physical

address provided to the Department of Agriculture during the

licensing process. The cultivation center location shall only

be accessed by the agents working for the cultivation center,

the Department of Agriculture staff performing inspections,

the Department of Public Health staff performing inspections,

local and State law enforcement or other emergency personnel,

contractors working on jobs unrelated to cannabis, such as

installing or maintaining security devices or performing

electrical wiring, transporting organization agents as

provided in this Act, individuals in a mentoring or educational

program approved by the State, or other individuals as provided

by rule.

(d) A cultivation center may not sell or distribute any

cannabis or cannabis-infused products to any person other than

a dispensing organization, craft grower, infusing

organization, transporter, or as otherwise authorized by rule.

(e) A cultivation center may not either directly or

indirectly discriminate in price between different dispensing

organizations, craft growers, or infuser organizations that

are purchasing a like grade, strain, brand, and quality of

cannabis or cannabis-infused product. Nothing in this

subsection (e) prevents a cultivation centers from pricing

cannabis differently based on differences in the cost of

manufacturing or processing, the quantities sold, such as

volume discounts, or the way the products are delivered.

(f) All cannabis harvested by a cultivation center and

intended for distribution to a dispensing organization must be

entered into a data collection system, packaged and labeled

under Section 55-21, and placed into a cannabis container for

transport. All cannabis harvested by a cultivation center and

intended for distribution to a craft grower or infuser

organization must be packaged in a labeled cannabis container

and entered into a data collection system before transport.

(g) Cultivation centers are subject to random inspections

by the Department of Agriculture, the Department of Public

Health, local safety or health inspectors, and the Department

of State Police.

(h) A cultivation center agent shall notify local law

enforcement, the Department of State Police, and the Department

of Agriculture within 24 hours of the discovery of any loss or

theft. Notification shall be made by phone or in person, or by

written or electronic communication.

(i) A cultivation center shall comply with all State and

any applicable federal rules and regulations regarding the use

of pesticides on cannabis plants.

(j) No person or entity shall hold any legal, equitable,

ownership, or beneficial interest, directly or indirectly, of

more than 3 cultivation centers licensed under this Article.

Further, no person or entity that is employed by, an agent of,

has a contract to receive payment in any form from a

cultivation center, is a principal officer of a cultivation

center, or entity controlled by or affiliated with a principal

officer of a cultivation shall hold any legal, equitable,

ownership, or beneficial interest, directly or indirectly, in a

cultivation that would result in the person or entity owning or

controlling in combination with any cultivation center,

principal officer of a cultivation center, or entity controlled

or affiliated with a principal officer of a cultivation center

by which he, she, or it is employed, is an agent of, or

participates in the management of, more than 3 cultivation

center licenses.

(k) A cultivation center may not contain more than 210,000

square feet of canopy space for plants in the flowering stage

for cultivation of adult use cannabis as provided in this Act.

(l) A cultivation center may process cannabis, cannabis

concentrates, and cannabis-infused products.

(m) Beginning July 1, 2020, a cultivation center shall not

transport cannabis to a craft grower, dispensing organization,

infuser organization, or laboratory licensed under this Act,

unless it has obtained a transporting organization license.

(n) It is unlawful for any person having a cultivation

center license or any officer, associate, member,

representative, or agent of such licensee to offer or deliver

money, or anything else of value, directly or indirectly to any

person having an Early Approval Adult Use Dispensing

Organization License, a Conditional Adult Use Dispensing

Organization License, an Adult Use Dispensing Organization

License, or a medical cannabis dispensing organization license

issued under the Compassionate Use of Medical Cannabis Pilot

Program Act, or to any person connected with or in any way

representing, or to any member of the family of, such person

holding an Early Approval Adult Use Dispensing Organization

License, a Conditional Adult Use Dispensing Organization

License, an Adult Use Dispensing Organization License, or a

medical cannabis dispensing organization license issued under

the Compassionate Use of Medical Cannabis Pilot Program Act, or

to any stockholders in any corporation engaged in the retail

sale of cannabis, or to any officer, manager, agent, or

representative of the Early Approval Adult Use Dispensing

Organization License, a Conditional Adult Use Dispensing

Organization License, an Adult Use Dispensing Organization

License, or a medical cannabis dispensing organization license

issued under the Compassionate Use of Medical Cannabis Pilot

Program Act to obtain preferential placement within the

dispensing organization, including, without limitation, on

shelves and in display cases where purchasers can view

products, or on the dispensing organization's website.

(o) A cultivation center must comply with any other

requirements or prohibitions set by administrative rule of the

Department of Agriculture.

Section 20-35. Cultivation center agent identification

card.

(a) The Department of Agriculture shall:

(1) establish by rule the information required in an

initial application or renewal application for an agent

identification card submitted under this Act and the

nonrefundable fee to accompany the initial application or

renewal application;

(2) verify the information contained in an initial

application or renewal application for an agent

identification card submitted under this Act, and approve

or deny an application within 30 days of receiving a

completed initial application or renewal application and

all supporting documentation required by rule;

(3) issue an agent identification card to a qualifying

agent within 15 business days of approving the initial

application or renewal application;

(4) enter the license number of the cultivation center

where the agent works; and

(5) allow for an electronic initial application and

renewal application process, and provide a confirmation by

electronic or other methods that an application has been

submitted. The Department of Agriculture may by rule

require prospective agents to file their applications by

electronic means and provide notices to the agents by

electronic means.

(b) An agent must keep his or her identification card

visible at all times when on the property of the cultivation

center at which the agent is employed.

(c) The agent identification cards shall contain the

following:

(1) the name of the cardholder;

(2) the date of issuance and expiration date of the

identification card;

(3) a random 10-digit alphanumeric identification

number containing at least 4 numbers and at least 4 letters

that is unique to the holder;

(4) a photograph of the cardholder; and

(5) the legal name of the cultivation center employing

the agent.

(d) An agent identification card shall be immediately

returned to the cultivation center of the agent upon

termination of his or her employment.

(e) Any agent identification card lost by a cultivation

center agent shall be reported to the Department of State

Police and the Department of Agriculture immediately upon

discovery of the loss.

(f) The Department of Agriculture shall not issue an agent

identification card if the applicant is delinquent in filing

any required tax returns or paying any amounts owed to the

State of Illinois.

Section 20-40. Cultivation center background checks.

(a) Through the Department of State Police, the Department

of Agriculture shall conduct a background check of the

prospective principal officers, board members, and agents of a

cultivation center applying for a license or identification

card under this Act. The Department of State Police shall

charge a fee set by rule for conducting the criminal history

record check, which shall be deposited into the State Police

Services Fund and shall not exceed the actual cost of the

record check. In order to carry out this provision, each

cultivation center prospective principal officer, board

member, or agent shall submit a full set of fingerprints to the

Department of State Police for the purpose of obtaining a State

and federal criminal records check. These fingerprints shall be

checked against the fingerprint records now and hereafter, to

the extent allowed by law, filed in the Department of State

Police and Federal Bureau of Investigation criminal history

records databases. The Department of State Police shall

furnish, following positive identification, all conviction

information to the Department of Agriculture.

(b) When applying for the initial license or identification

card, the background checks for all prospective principal

officers, board members, and agents shall be completed before

submitting the application to the licensing or issuing agency.

Section 20-45. Renewal of cultivation center licenses and

agent identification cards.

(a) Licenses and identification cards issued under this Act

shall be renewed annually. A cultivation center shall receive

written or electronic notice 90 days before the expiration of

its current license that the license will expire. The

Department of Agriculture shall grant a renewal within 45 days

of submission of a renewal application if:

(1) the cultivation center submits a renewal

application and the required nonrefundable renewal fee of

$100,000, or another amount as the Department of

Agriculture may set by rule after January 1, 2021, to be

deposited into the Cannabis Regulation Fund.

(2) the Department of Agriculture has not suspended the

license of the cultivation center or suspended or revoked

the license for violating this Act or rules adopted under

this Act;

(3) the cultivation center has continued to operate in

accordance with all plans submitted as part of its

application and approved by the Department of Agriculture

or any amendments thereto that have been approved by the

Department of Agriculture;

(4) the cultivation center has submitted an agent,

employee, contracting, and subcontracting diversity report

as required by the Department; and

(5) the cultivation center has submitted an

environmental impact report.

(b) If a cultivation center fails to renew its license

before expiration, it shall cease operations until its license

is renewed.

(c) If a cultivation center agent fails to renew his or her

identification card before its expiration, he or she shall

cease to work as an agent of the cultivation center until his

or her identification card is renewed.

(d) Any cultivation center that continues to operate, or

any cultivation center agent who continues to work as an agent,

after the applicable license or identification card has expired

without renewal is subject to the penalties provided under

Section 45-5.

Section 20-50. Cultivator taxes; returns.

(a) A tax is imposed upon the privilege of cultivating and

processing adult use cannabis at the rate of 7% of the gross

receipts from the sale of cannabis by a cultivator to a

dispensing organization. The sale of any adult use product that

contains any amount of cannabis or any derivative thereof is

subject to the tax under this Section on the full selling price

of the product. The proceeds from this tax shall be deposited

into the Cannabis Regulation Fund. This tax shall be paid by

the cultivator who makes the first sale and is not the

responsibility of a dispensing organization, qualifying

patient, or purchaser.

(b)In the administration of and compliance with this

Section, the Department of Revenue and persons who are subject

to this Section: (i) have the same rights, remedies,

privileges, immunities, powers, and duties, (ii) are subject to

the same conditions, restrictions, limitations, penalties, and

definitions of terms, and (iii) shall employ the same modes of

procedure as are set forth in the Cannabis Cultivation

Privilege Tax Law and the Uniform Penalty and Interest Act as

if those provisions were set forth in this Section.

(c)The tax imposed under this Act shall be in addition to

all other occupation or privilege taxes imposed by the State of

Illinois or by any municipal corporation or political

subdivision thereof.

ARTICLE 25.

COMMUNITY COLLEGE CANNABIS VOCATIONAL PILOT PROGRAM

Section 25-1. Definitions In this Article:

"Board" means the Illinois Community College Board.

"Career in Cannabis Certificate" or "Certificate" means

the certification awarded to a community college student who

completes a prescribed course of study in cannabis and cannabis

business industry related classes and curriculum at a community

college awarded a Community College Cannabis Vocational Pilot

Program license.

"Community college" means a public community college

organized under the Public Community College Act.

"Department" means the Department of Agriculture.

"Licensee" means a community college awarded a Community

College Cannabis Vocational Pilot Program license under this

Article.

"Program" means the Community College Cannabis Vocational

Pilot Program.

"Program license" means a Community College Cannabis

Vocational Pilot Program license issued to a community college

under this Article.

Section 25-5. Administration.

(a) The Department shall establish and administer the

Program in coordination with the Illinois Community College

Board. The Department may issue up to 8 Program licenses by

September 1, 2020.

(b) Beginning with the 2021-2022 academic year, and subject

to subsection (h) of Section 2-12 of the Public Community

College Act, community colleges awarded Program licenses may

offer qualifying students a Career in Cannabis Certificate,

which includes, but is not limited to, courses that allow

participating students to work with, study, and grow live

cannabis plants so as to prepare students for a career in the

legal cannabis industry, and to instruct participating

students on the best business practices, professional

responsibility, and legal compliance of the cannabis business

industry.

(c) The Board may issue rules pertaining to the provisions

in this Act.

(d) Notwithstanding any other provision of this Act,

students shall be at least 18 years old in order to enroll in a

licensee's Career in Cannabis Certificate's prescribed course

of study.

Section 25-10. Issuance of Community College Cannabis

Vocational Pilot Program licenses.

(a) The Department shall issue rules regulating the

selection criteria for applicants by January 1, 2020. The

Department shall make the application for a Program license

available no later than February 1, 2020, and shall require

that applicants submit the completed application no later than

July 1, 2020.

(b) The Department shall by rule develop a system to score

Program licenses to administratively rank applications based

on the clarity, organization, and quality of the applicant's

responses to required information. Applicants shall be awarded

points that are based on or that meet the following categories:

(1) Geographic diversity of the applicants;

(2) Experience and credentials of the applicant's

faculty;

(3) At least 5 Program license awardees must have a

student population that is more than 50% low-income in each

of the past 4 years;

(4) Security plan, including a requirement that all

cannabis plants be in an enclosed, locked facility;

(5) Curriculum plan, including processing and testing

curriculum for the Career in Cannabis Certificate;

(6) Career advising and placement plan for

participating students; and

(7) Any other criteria the Department may set by rule.

Section 25-15. Community College Cannabis Vocational Pilot

Program requirements and prohibitions.

(a) Licensees shall not have more than 50 flowering

cannabis plants at any one time.

(b) The agent-in-charge shall keep a vault log of the

licensee's enclosed, locked facility or facilities, including

but not limited to, the person entering the site location, the

time of entrance, the time of exit, and any other information

the Department may set by rule.

(c) Cannabis shall not be removed from the licensee's

facility, except for the limited purpose of shipping a sample

to a laboratory registered under this Act.

(d) The licensee shall limit keys, access cards, or an

access code to the licensee's enclosed, locked facility, or

facilities, to cannabis curriculum faculty and college

security personnel with a bona fide need to access the facility

for emergency purposes.

(e) A transporting organization may transport cannabis

produced pursuant to this Article to a laboratory registered

under this Act. All other cannabis produced by the licensee

that was not shipped to a registered laboratory shall be

destroyed within 5 weeks of being harvested.

(f) Licensees shall subscribe to the Department of

Agriculture's cannabis plant monitoring system.

(g) Licensees shall maintain a weekly inventory system.

(h) No student participating in the cannabis curriculum

necessary to obtain a Certificate may be in the licensee's

facility unless a faculty agent-in-charge is also physically

present in the facility.

(i) Licensees shall conduct post-certificate follow up

surveys and record participating students' job placements

within the cannabis business industry within a year of the

student's completion.

(j) The Illinois Community College Board shall report

annually to the Department on the race, ethnicity, and gender

of all students participating in the cannabis curriculum

necessary to obtain a Certificate, and of those students who

obtain a Certificate.

Section 25-20. Faculty.

(a) All faculty members shall be required to maintain

registration as an agent-in-charge and have a valid agent

identification card prior to teaching or participating in the

licensee's cannabis curriculum that involves instruction

offered in the enclosed, locked facility or facilities.

(b) All faculty receiving an agent-in-charge or agent

identification card must successfully pass a background check

required by Section 5-20 prior to participating in a licensee's

cannabis curriculum that involves instruction offered in the

enclosed, locked facility.

Section 25-25. Enforcement.

(a) The Department has the authority to suspend or revoke

any faculty agent-in-charge or agent identification card for

any violation found under this Article.

(b) The Department has the authority to suspend or revoke

any Program license for any violation found under this Article.

(c) The Board shall revoke the authority to offer the

Certificate of any community college that has had its license

revoked by the Department.

Section 25-30. Inspection rights.

(a) A licensee's enclosed, locked facilities are subject to

random inspections by the Department and the Department of

State Police.

(b) Nothing in this Section shall be construed to give the

Department or the Department of State Police a right of

inspection or access to any location on the licensee's premises

beyond the facilities licensed under this Article.

Section 25-35. Community College Cannabis Vocational

Training Pilot Program faculty participant agent

identification card.

(a) The Department shall:

(1) establish by rule the information required in an

initial application or renewal application for an agent

identification card submitted under this Article and the

nonrefundable fee to accompany the initial application or

renewal application;

(2) verify the information contained in an initial

application or renewal application for an agent

identification card submitted under this Article, and

approve or deny an application within 30 days of receiving

a completed initial application or renewal application and

all supporting documentation required by rule;

(3) issue an agent identification card to a qualifying

agent within 15 business days of approving the initial

application or renewal application;

(4) enter the license number of the community college

where the agent works; and

(5) allow for an electronic initial application and

renewal application process, and provide a confirmation by

electronic or other methods that an application has been

submitted. Each Department may by rule require prospective

agents to file their applications by electronic means and

to provide notices to the agents by electronic means.

(b) An agent must keep his or her identification card

visible at all times when in the enclosed, locked facility, or

facilities for which he or she is an agent.

(c) The agent identification cards shall contain the

following:

(1) the name of the cardholder;

(2) the date of issuance and expiration date of the

identification card;

(3) a random 10-digit alphanumeric identification

number containing at least 4 numbers and at least 4 letters

that is unique to the holder;

(4) a photograph of the cardholder; and

(5) the legal name of the community college employing

the agent.

(d) An agent identification card shall be immediately

returned to the community college of the agent upon termination

of his or her employment.

(e) Any agent identification card lost shall be reported to

the Department of State Police and the Department of

Agriculture immediately upon discovery of the loss.

Section 25-40. Study. By December 31, 2025, the Illinois

Cannabis Regulation Oversight Officer, in coordination with

the Board, must issue a report to the Governor and the General

Assembly which includes, but is not limited to, the following:

(1) Number of security incidents or infractions at each

licensee and any action taken or not taken;

(2) Statistics, based on race, ethnicity, gender, and

participating community college of:

(A) students enrolled in career in cannabis

classes;

(B) successful completion rates by community

college students for the Certificate;

(C) postgraduate job placement of students who

obtained a Certificate, including both cannabis

business establishment jobs and non-cannabis business

establishment jobs; and

(3) Any other relevant information.

Section 25-45. Repeal. This Article is repealed on July 1,

2026.

ARTICLE 30.

CRAFT GROWERS

Section 30-3. Definition. In this Article, "Department"

means the Department of Agriculture.

Section 30-5. Issuance of licenses.

(a) The Department of Agriculture shall issue up to 40

craft grower licenses by July 1, 2020. Any person or entity

awarded a license pursuant to this subsection shall only hold

one craft grower license and may not sell that license until

after December 21, 2021.

(b) By December 21, 2021, the Department of Agriculture

shall issue up to 60 additional craft grower licenses. Any

person or entity awarded a license pursuant to this subsection

shall not hold more than 2 craft grower licenses. The person or

entity awarded a license pursuant to this subsection or

subsection (a) of this Section may sell its craft grower

license subject to the restrictions of this Act or as

determined by administrative rule. Prior to issuing such

licenses, the Department may adopt rules through emergency

rulemaking in accordance with subsection (gg) of Section 5-45

of the Illinois Administrative Procedure Act, to modify or

raise the number of craft grower licenses assigned to each

region and modify or change the licensing application process

to reduce or eliminate barriers. The General Assembly finds

that the adoption of rules to regulate cannabis use is deemed

an emergency and necessary for the public interest, safety, and

welfare. In determining whether to exercise the authority

granted by this subsection, the Department of Agriculture must

consider the following factors:

(1) The percentage of cannabis sales occurring in

Illinois not in the regulated market using data from the

Substance Abuse and Mental Health Services Administration,

National Survey on Drug Use and Health, Illinois Behavioral

Risk Factor Surveillance System, and tourism data from the

Illinois Office of Tourism to ascertain total cannabis

consumption in Illinois compared to the amount of sales in

licensed dispensing organizations;

(2) Whether there is an adequate supply of cannabis and

cannabis-infused products to serve registered medical

cannabis patients;

(3) Whether there is an adequate supply of cannabis and

cannabis-infused products to serve purchasers;

(4) Whether there is an oversupply of cannabis in

Illinois leading to trafficking of cannabis to states where

the sale of cannabis is not permitted by law;

(5) Population increases or shifts;

(6) The density of craft growers in any area of the

State;

(7) Perceived security risks of increasing the number

or location of craft growers;

(8) The past safety record of craft growers;

(9) The Department of Agriculture's capacity to

appropriately regulate additional licensees;

(10) The findings and recommendations from the

disparity and availability study commissioned by the

Illinois Cannabis Regulation Oversight Officer to reduce

or eliminate any identified barriers to entry in the

cannabis industry; and

(11) Any other criteria the Department of Agriculture

deems relevant.

(c) After January 1, 2022, the Department of Agriculture

may by rule modify or raise the number of craft grower licenses

assigned to each region, and modify or change the licensing

application process to reduce or eliminate barriers based on

the criteria in subsection (b). At no time may the number of

craft grower licenses exceed 150. Any person or entity awarded

a license pursuant to this subsection shall not hold more than

3 craft grower licenses. A person or entity awarded a license

pursuant to this subsection or subsection (a) or subsection (b)

of this Section may sell its craft grower license or licenses

subject to the restrictions of this Act or as determined by

administrative rule.

Section 30-10. Application.

(a) When applying for a license, the applicant shall

electronically submit the following in such form as the

Department of Agriculture may direct:

(1) the nonrefundable application fee of $5,000 to be

deposited into the Cannabis Regulation Fund, or another

amount as the Department of Agriculture may set by rule

after January 1, 2021;

(2) the legal name of the craft grower;

(3) the proposed physical address of the craft grower;

(4) the name, address, social security number, and date

of birth of each principal officer and board member of the

craft grower; each principal officer and board member shall

be at least 21 years of age;

(5) the details of any administrative or judicial

proceeding in which any of the principal officers or board

members of the craft grower (i) pled guilty, were

convicted, fined, or had a registration or license

suspended or revoked or (ii) managed or served on the board

of a business or non-profit organization that pled guilty,

was convicted, fined, or had a registration or license

suspended or revoked;

(6) proposed operating bylaws that include procedures

for the oversight of the craft grower, including the

development and implementation of a plant monitoring

system, accurate recordkeeping, staffing plan, and

security plan approved by the Department of State Police

that are in accordance with the rules issued by the

Department of Agriculture under this Act; a physical

inventory shall be performed of all plants and on a weekly

basis by the craft grower;

(7) verification from the Department of State Police

that all background checks of the prospective principal

officers, board members, and agents of the cannabis

business establishment have been conducted;

(8) a copy of the current local zoning ordinance or

permit and verification that the proposed craft grower is

in compliance with the local zoning rules and distance

limitations established by the local jurisdiction;

(9) proposed employment practices, in which the

applicant must demonstrate a plan of action to inform,

hire, and educate minorities, women, veterans, and persons

with disabilities, engage in fair labor practices, and

provide worker protections;

(10) whether an applicant can demonstrate experience

in or business practices that promote economic empowerment

in Disproportionately Impacted Areas;

(11) experience with the cultivation of agricultural

or horticultural products, operating an agriculturally

related business, or operating a horticultural business;

(12) a description of the enclosed, locked facility

where cannabis will be grown, harvested, manufactured,

packaged, or otherwise prepared for distribution to a

dispensing organization or other cannabis business

establishment;

(13) a survey of the enclosed, locked facility,

including the space used for cultivation;

(14) cultivation, processing, inventory, and packaging

plans;

(15) a description of the applicant's experience with

agricultural cultivation techniques and industry

standards;

(16) a list of any academic degrees, certifications, or

relevant experience of all prospective principal officers,

board members, and agents of the related business;

(17) the identity of every person having a financial or

voting interest of 5% or greater in the craft grower

operation, whether a trust, corporation, partnership,

limited liability company, or sole proprietorship,

including the name and address of each person;

(18) a plan describing how the craft grower will

address each of the following:

(i) energy needs, including estimates of monthly

electricity and gas usage, to what extent it will

procure energy from a local utility or from on-site

generation, and if it has or will adopt a sustainable

energy use and energy conservation policy;

(ii) water needs, including estimated water draw

and if it has or will adopt a sustainable water use and

water conservation policy; and

(iii) waste management, including if it has or will

adopt a waste reduction policy;

(19) a recycling plan:

(A) Purchaser packaging, including cartridges,

shall be accepted by the applicant and recycled.

(B) Any recyclable waste generated by the craft

grower facility shall be recycled per applicable State

and local laws, ordinances, and rules.

(C) Any cannabis waste, liquid waste, or hazardous

waste shall be disposed of in accordance with 8 Ill.

Adm. Code 1000.460, except, to the greatest extent

feasible, all cannabis plant waste will be rendered

unusable by grinding and incorporating the cannabis

plant waste with compostable mixed waste to be disposed

of in accordance with 8 Ill Adm. Code 1000.460(g)(1).

(20) a commitment to comply with local waste

provisions: a craft grower facility must remain in

compliance with applicable State and federal environmental

requirements, including, but not limited to:

(A) storing, securing, and managing all

recyclables and waste, including organic waste

composed of or containing finished cannabis and

cannabis products, in accordance with applicable State

and local laws, ordinances, and rules; and

(B) Disposing liquid waste containing cannabis or

byproducts of cannabis processing in compliance with

all applicable State and federal requirements,

including, but not limited to, the cannabis

cultivation facility's permits under Title X of the

Environmental Protection Act.

(21) a commitment to a technology standard for resource

efficiency of the craft grower facility.

(A) A craft grower facility commits to use

resources efficiently, including energy and water. For

the following, a cannabis cultivation facility commits

to meet or exceed the technology standard identified in

paragraphs (i), (ii), (iii), and (iv), which may be

modified by rule:

(i) lighting systems, including light bulbs;

(ii) HVAC system;

(iii) water application system to the crop;

and

(iv) filtration system for removing

contaminants from wastewater.

(B) Lighting. The Lighting Power Densities (LPD)

for cultivation space commits to not exceed an average

of 36 watts per gross square foot of active and growing

space canopy, or all installed lighting technology

shall meet a photosynthetic photon efficacy (PPE) of no

less than 2.2 micromoles per joule fixture and shall be

featured on the DesignLights Consortium (DLC)

Horticultural Specification Qualified Products List

(QPL). In the event that DLC requirement for minimum

efficacy exceeds 2.2 micromoles per joule fixture,

that PPE shall become the new standard.

(C) HVAC.

(i) For cannabis grow operations with less

than 6,000 square feet of canopy, the licensee

commits that all HVAC units will be

high-efficiency ductless split HVAC units, or

other more energy efficient equipment.

(ii) For cannabis grow operations with 6,000

square feet of canopy or more, the licensee commits

that all HVAC units will be variable refrigerant

flow HVAC units, or other more energy efficient

equipment.

(D) Water application.

(i) The craft grower facility commits to use

automated watering systems, including, but not

limited to, drip irrigation and flood tables, to

irrigate cannabis crop.

(ii) The craft grower facility commits to

measure runoff from watering events and report

this volume in its water usage plan, and that on

average, watering events shall have no more than

20% of runoff of water.

(E) Filtration. The craft grower commits that HVAC

condensate, dehumidification water, excess runoff, and

other wastewater produced by the craft grower facility

shall be captured and filtered to the best of the

facility's ability to achieve the quality needed to be

reused in subsequent watering rounds.

(F) Reporting energy use and efficiency as

required by rule; and

(22) any other information required by rule.

(b) Applicants must submit all required information,

including the information required in Section 30-15, to the

Department of Agriculture. Failure by an applicant to submit

all required information may result in the application being

disqualified.

(c) If the Department of Agriculture receives an

application with missing information, the Department of

Agriculture may issue a deficiency notice to the applicant. The

applicant shall have 10 calendar days from the date of the

deficiency notice to resubmit the incomplete information.

Applications that are still incomplete after this opportunity

to cure will not be scored and will be disqualified.

Section 30-15. Scoring applications.

(a) The Department of Agriculture shall by rule develop a

system to score craft grower applications to administratively

rank applications based on the clarity, organization, and

quality of the applicant's responses to required information.

Applicants shall be awarded points based on the following

categories:

(1) Suitability of the proposed facility;

(2) Suitability of the employee training plan;

(3) Security and recordkeeping;

(4) Cultivation plan;

(5) Product safety and labeling plan;

(6) Business plan;

(7) The applicant's status as a Social Equity

Applicant, which shall constitute no less than 20% of total

available points;

(8) Labor and employment practices, which shall

constitute no less than 2% of total available points;

(9) Environmental plan as described in paragraphs

(18), (19), (20), and (21) of subsection (a) of Section

30-10;

(10) The applicant is 51% or more owned and controlled

by an individual or individuals who have been an Illinois

resident for the past 5 years as proved by tax records;

(11) The applicant is 51% or more controlled and owned

by an individual or individuals who meet the qualifications

of a veteran as defined in Section 45-57 of the Illinois

Procurement Code;

(12) A diversity plan that includes a narrative of not

more than 2,500 words that establishes a goal of diversity

in ownership, management, employment, and contracting to

ensure that diverse participants and groups are afforded

equality of opportunity; and

(13) Any other criteria the Department of Agriculture

may set by rule for points.

(b) The Department may also award up to 2 bonus points for

the applicant's plan to engage with the community. The

applicant may demonstrate a desire to engage with its community

by participating in one or more of, but not limited to, the

following actions: (i) establishment of an incubator program

designed to increase participation in the cannabis industry by

persons who would qualify as Social Equity Applicants; (ii)

providing financial assistance to substance abuse treatment

centers; (iii) educating children and teens about the potential

harms of cannabis use; or (iv) other measures demonstrating a

commitment to the applicant's community. Bonus points will only

be awarded if the Department receives applications that receive

an equal score for a particular region.

(c) Should the applicant be awarded a craft grower license,

the information and plans that an applicant provided in its

application, including any plans submitted for the acquiring of

bonus points, shall be a mandatory condition of the license.

Any variation from or failure to perform such plans may result

in discipline, including the revocation or nonrenewal of a

license.

(d) Should the applicant be awarded a craft grower license,

the applicant shall pay a prorated fee of $40,000 prior to

receiving the license, to be deposited into the Cannabis

Regulation Fund. The Department of Agriculture may by rule

adjust the fee in this Section after January 1, 2021.

Section 30-20. Issuance of license to certain persons

prohibited.

(a) No craft grower license issued by the Department of

Agriculture shall be issued to a person who is licensed by any

licensing authority as a cultivation center, or to any

partnership, corporation, limited liability company, or trust

or any subsidiary, affiliate, or any other form of business

enterprise having more than 10% legal, equitable, or beneficial

interest, directly or indirectly, in a person licensed in this

State as a cultivation center, or to any principal officer,

agent, employee, or human being with any form of ownership or

control over a cultivation center except for a person who owns

no more than 5% of the outstanding shares of a cultivation

center whose shares are publicly traded on an exchange within

the meaning of the Securities Exchange Act of 1934.

(b) A person who is licensed in this State as a craft

grower, or any partnership, corporation, limited liability

company, or trust or any subsidiary, affiliate, or agent

thereof, or any other form of business enterprise licensed in

this State as a craft grower shall not have more than 10%

legal, equitable, or beneficial interest, directly or

indirectly, in a person licensed as a cultivation center, nor

shall any partnership, corporation, limited liability company,

or trust or any subsidiary, affiliate, or any other form of

business enterprise having any legal, equitable, or beneficial

interest, directly or indirectly, in a person licensed in this

State as a craft grower or a craft grower agent be a principal

officer, agent, employee, or human being with any form of

ownership or control over a cultivation center except for a

person who owns no more than 5% of the outstanding shares of a

cultivation center whose shares are publicly traded on an

exchange within the meaning of the Securities Exchange Act of

1934.

Section 30-25. Denial of application. An application for a

craft grower license must be denied if any of the following

conditions are met:

(1) the applicant failed to submit the materials

required by this Article;

(2) the applicant would not be in compliance with local

zoning rules;

(3) one or more of the prospective principal officers

or board members causes a violation of Section 30-20 of

this Article;

(4) one or more of the principal officers or board

members is under 21 years of age;

(5) the person has submitted an application for a

license under this Act that contains false information; or

(6) the licensee; principal officer, board member, or

person having a financial or voting interest of 5% or

greater in the licensee; or agent is delinquent in filing

any required tax returns or paying any amounts owed to the

State of Illinois.

Section 30-30. Craft grower requirements; prohibitions.

(a) The operating documents of a craft grower shall include

procedures for the oversight of the craft grower, a cannabis

plant monitoring system including a physical inventory

recorded weekly, accurate recordkeeping, and a staffing plan.

(b) A craft grower shall implement a security plan reviewed

by the Department of State Police that includes, but is not

limited to: facility access controls, perimeter intrusion

detection systems, personnel identification systems, and a

24-hour surveillance system to monitor the interior and

exterior of the craft grower facility and that is accessible to

authorized law enforcement and the Department of Agriculture in

real time.

(c) All cultivation of cannabis by a craft grower must take

place in an enclosed, locked facility at the physical address

provided to the Department of Agriculture during the licensing

process. The craft grower location shall only be accessed by

the agents working for the craft grower, the Department of

Agriculture staff performing inspections, the Department of

Public Health staff performing inspections, State and local law

enforcement or other emergency personnel, contractors working

on jobs unrelated to cannabis, such as installing or

maintaining security devices or performing electrical wiring,

transporting organization agents as provided in this Act, or

participants in the incubator program, individuals in a

mentoring or educational program approved by the State, or

other individuals as provided by rule. However, if a craft

grower shares a premises with an infuser or dispensing

organization, agents from those other licensees may access the

craft grower portion of the premises if that is the location of

common bathrooms, lunchrooms, locker rooms, or other areas of

the building where work or cultivation of cannabis is not

performed. At no time may an infuser or dispensing organization

agent perform work at a craft grower without being a registered

agent of the craft grower.

(d) A craft grower may not sell or distribute any cannabis

to any person other than a cultivation center, a craft grower,

an infuser organization, a dispensing organization, or as

otherwise authorized by rule.

(e) A craft grower may not be located in an area zoned for

residential use.

(f) A craft grower may not either directly or indirectly

discriminate in price between different cannabis business

establishments that are purchasing a like grade, strain, brand,

and quality of cannabis or cannabis-infused product. Nothing in

this subsection (f) prevents a craft grower from pricing

cannabis differently based on differences in the cost of

manufacturing or processing, the quantities sold, such as

volume discounts, or the way the products are delivered.

(g) All cannabis harvested by a craft grower and intended

for distribution to a dispensing organization must be entered

into a data collection system, packaged and labeled under

Section 55-21, and, if distribution is to a dispensing

organization that does not share a premises with the dispensing

organization receiving the cannabis, placed into a cannabis

container for transport. All cannabis harvested by a craft

grower and intended for distribution to a cultivation center,

to an infuser organization, or to a craft grower with which it

does not share a premises, must be packaged in a labeled

cannabis container and entered into a data collection system

before transport.

(h) Craft growers are subject to random inspections by the

Department of Agriculture, local safety or health inspectors,

and the Department of State Police.

(i) A craft grower agent shall notify local law

enforcement, the Department of State Police, and the Department

of Agriculture within 24 hours of the discovery of any loss or

theft. Notification shall be made by phone, in person, or

written or electronic communication.

(j) A craft grower shall comply with all State and any

applicable federal rules and regulations regarding the use of

pesticides.

(k) A craft grower or craft grower agent shall not

transport cannabis or cannabis-infused products to any other

cannabis business establishment without a transport

organization license unless:

(i) If the craft grower is located in a county with a

population of 3,000,000 or more, the cannabis business

establishment receiving the cannabis is within 2,000 feet

of the property line of the craft grower;

(ii) If the craft grower is located in a county with a

population of more than 700,000 but fewer than 3,000,000,

the cannabis business establishment receiving the cannabis

is within 2 miles of the craft grower; or

(iii) If the craft grower is located in a county with a

population of fewer the 700,000, the cannabis business

establishment receiving the cannabis is within 15 miles of

the craft grower.

(l) A craft grower may enter into a contract with a

transporting organization to transport cannabis to a

cultivation center, a craft grower, an infuser organization, a

dispensing organization, or a laboratory.

(m) No person or entity shall hold any legal, equitable,

ownership, or beneficial interest, directly or indirectly, of

more than 3 craft grower licenses. Further, no person or entity

that is employed by, an agent of, or has a contract to receive

payment from or participate in the management of a craft

grower, is a principal officer of a craft grower, or entity

controlled by or affiliated with a principal officer of a craft

grower shall hold any legal, equitable, ownership, or

beneficial interest, directly or indirectly, in a craft grower

license that would result in the person or entity owning or

controlling in combination with any craft grower, principal

officer of a craft grower, or entity controlled or affiliated

with a principal officer of a craft grower by which he, she, or

it is employed, is an agent of, or participates in the

management of more than 3 craft grower licenses.

(n) It is unlawful for any person having a craft grower

license or any officer, associate, member, representative, or

agent of the licensee to offer or deliver money, or anything

else of value, directly or indirectly, to any person having an

Early Approval Adult Use Dispensing Organization License, a

Conditional Adult Use Dispensing Organization License, an

Adult Use Dispensing Organization License, or a medical

cannabis dispensing organization license issued under the

Compassionate Use of Medical Cannabis Pilot Program Act, or to

any person connected with or in any way representing, or to any

member of the family of, the person holding an Early Approval

Adult Use Dispensing Organization License, a Conditional Adult

Use Dispensing Organization License, an Adult Use Dispensing

Organization License, or a medical cannabis dispensing

organization license issued under the Compassionate Use of

Medical Cannabis Pilot Program Act, or to any stockholders in

any corporation engaged in the retail sale of cannabis, or to

any officer, manager, agent, or representative of the Early

Approval Adult Use Dispensing Organization License, a

Conditional Adult Use Dispensing Organization License, an

Adult Use Dispensing Organization License, or a medical

cannabis dispensing organization license issued under the

Compassionate Use of Medical Cannabis Pilot Program Act to

obtain preferential placement within the dispensing

organization, including, without limitation, on shelves and in

display cases where purchasers can view products, or on the

dispensing organization's website.

(o) A craft grower shall not be located within 1,500 feet

of another craft grower or a cultivation center.

(p) A graft grower may process cannabis, cannabis

concentrates, and cannabis-infused products.

(q) A craft grower must comply with any other requirements

or prohibitions set by administrative rule of the Department of

Agriculture.

Section 30-35. Craft grower agent identification card.

(a) The Department of Agriculture shall:

(1) establish by rule the information required in an

initial application or renewal application for an agent

identification card submitted under this Act and the

nonrefundable fee to accompany the initial application or

renewal application;

(2) verify the information contained in an initial

application or renewal application for an agent

identification card submitted under this Act and approve or

deny an application within 30 days of receiving a completed

initial application or renewal application and all

supporting documentation required by rule;

(3) issue an agent identification card to a qualifying

agent within 15 business days of approving the initial

application or renewal application;

(4) enter the license number of the craft grower where

the agent works; and

(5) allow for an electronic initial application and

renewal application process, and provide a confirmation by

electronic or other methods that an application has been

submitted. The Department of Agriculture may by rule

require prospective agents to file their applications by

electronic means and provide notices to the agents by

electronic means.

(b) An agent must keep his or her identification card

visible at all times when on the property of a cannabis

business establishment, including the craft grower

organization for which he or she is an agent.

(c) The agent identification cards shall contain the

following:

(1) the name of the cardholder;

(2) the date of issuance and expiration date of the

identification card;

(3) a random 10-digit alphanumeric identification

number containing at least 4 numbers and at least 4 letters

that is unique to the holder;

(4) a photograph of the cardholder; and

(5) the legal name of the craft grower organization

employing the agent.

(d) An agent identification card shall be immediately

returned to the cannabis business establishment of the agent

upon termination of his or her employment.

(e) Any agent identification card lost by a craft grower

agent shall be reported to the Department of State Police and

the Department of Agriculture immediately upon discovery of the

loss.

Section 30-40. Craft grower background checks.

(a) Through the Department of State Police, the Department

of Agriculture shall conduct a background check of the

prospective principal officers, board members, and agents of a

craft grower applying for a license or identification card

under this Act. The Department of State Police shall charge a

fee set by rule for conducting the criminal history record

check, which shall be deposited into the State Police Services

Fund and shall not exceed the actual cost of the record check.

In order to carry out this Section, each craft grower

organization's prospective principal officer, board member, or

agent shall submit a full set of fingerprints to the Department

of State Police for the purpose of obtaining a State and

federal criminal records check. These fingerprints shall be

checked against the fingerprint records now and hereafter, to

the extent allowed by law, filed in the Department of State

Police and Federal Bureau of Investigation criminal history

records databases. The Department of State Police shall

furnish, following positive identification, all conviction

information to the Department of Agriculture.

(b) When applying for the initial license or identification

card, the background checks for all prospective principal

officers, board members, and agents shall be completed before

submitting the application to the licensing or issuing agency.

Section 30-45. Renewal of craft grower licenses and agent

identification cards.

(a) Licenses and identification cards issued under this Act

shall be renewed annually. A craft grower shall receive written

or electronic notice 90 days before the expiration of its

current license that the license will expire. The Department of

Agriculture shall grant a renewal within 45 days of submission

of a renewal application if:

(1) the craft grower submits a renewal application and

the required nonrefundable renewal fee of $40,000, or

another amount as the Department of Agriculture may set by

rule after January 1, 2021;

(2) the Department of Agriculture has not suspended the

license of the craft grower or suspended or revoked the

license for violating this Act or rules adopted under this

Act;

(3) the craft grower has continued to operate in

accordance with all plans submitted as part of its

application and approved by the Department of Agriculture

or any amendments thereto that have been approved by the

Department of Agriculture;

(4) the craft grower has submitted an agent, employee,

contracting, and subcontracting diversity report as

required by the Department; and

(5) the craft grower has submitted an environmental

impact report.

(b) If a craft grower fails to renew its license before

expiration, it shall cease operations until its license is

renewed.

(c) If a craft grower agent fails to renew his or her

identification card before its expiration, he or she shall

cease to work as an agent of the craft grower organization

until his or her identification card is renewed.

(d) Any craft grower that continues to operate, or any

craft grower agent who continues to work as an agent, after the

applicable license or identification card has expired without

renewal is subject to the penalties provided under Section

45-5.

(e) All fees or fines collected from the renewal of a craft

grower license shall be deposited into the Cannabis Regulation

Fund.

Section 30-50. Craft grower taxes; returns.

(a) A tax is imposed upon the privilege of cultivating and

processing adult use cannabis at the rate of 7% of the gross

receipts from the sale of cannabis by a craft grower to a

dispensing organization. The sale of any adult use product that

contains any amount of cannabis or any derivative thereof is

subject to the tax under this Section on the full selling price

of the product. The proceeds from this tax shall be deposited

into the Cannabis Regulation Fund. This tax shall be paid by

the craft grower who makes the first sale and is not the

responsibility of a dispensing organization, qualifying

patient, or purchaser.

(b)In the administration of and compliance with this

Section, the Department of Revenue and persons who are subject

to this Section: (i) have the same rights, remedies,

privileges, immunities, powers, and duties, (ii) are subject to

the same conditions, restrictions, limitations, penalties, and

definitions of terms, and (iii) shall employ the same modes of

procedure as are set forth in the Cannabis Cultivation

Privilege Tax Law and the Uniform Penalty and Interest Act as

if those provisions were set forth in this Section.

(c)The tax imposed under this Act shall be in addition to

all other occupation or privilege taxes imposed by the State of

Illinois or by any municipal corporation or political

subdivision thereof.

ARTICLE 35.

INFUSER ORGANIZATIONS

Section 35-3. Definitions. In this Article:

"Department" means the Department of Agriculture.

Section 35-5. Issuance of licenses.

(a) The Department of Agriculture shall issue up to 40

infuser licenses through a process provided for in this Article

no later than July 1, 2020.

(b) The Department of Agriculture shall make the

application for infuser licenses available on January 7, 2020,

or if that date falls on a weekend or holiday, the business day

immediately succeeding the weekend or holiday and every January

7 or succeeding business day thereafter, and shall receive such

applications no later than March 15, 2020, or, if that date

falls on a weekend or holiday, the business day immediately

succeeding the weekend or holiday and every March 15 or

succeeding business day thereafter.

(c) By December 21, 2021, the Department of Agriculture may

issue up to 60 additional infuser licenses. Prior to issuing

such licenses, the Department may adopt rules through emergency

rulemaking in accordance with subsection (gg) of Section 5-45

of the Illinois Administrative Procedure Act, to modify or

raise the number of infuser licenses and modify or change the

licensing application process to reduce or eliminate barriers.

The General Assembly finds that the adoption of rules to

regulate cannabis use is deemed an emergency and necessary for

the public interest, safety, and welfare.

In determining whether to exercise the authority granted by

this subsection, the Department of Agriculture must consider

the following factors:

(1) the percentage of cannabis sales occurring in

Illinois not in the regulated market using data from the

Substance Abuse and Mental Health Services Administration,

National Survey on Drug Use and Health, Illinois Behavioral

Risk Factor Surveillance System, and tourism data from the

Illinois Office of Tourism to ascertain total cannabis

consumption in Illinois compared to the amount of sales in

licensed dispensing organizations;

(2) whether there is an adequate supply of cannabis and

cannabis-infused products to serve registered medical

cannabis patients;

(3) whether there is an adequate supply of cannabis and

cannabis-infused products to sere purchasers:

(4) whether there is an oversupply of cannabis in

Illinois leading to trafficking of cannabis to any other

state;

(5) population increases or shifts;

(6) changes to federal law;

(7) perceived security risks of increasing the number

or location of infuser organizations;

(8) the past security records of infuser

organizations;

(9) the Department of Agriculture's capacity to

appropriately regulate additional licenses;

(10) the findings and recommendations from the

disparity and availability study commissioned by the

Illinois Cannabis Regulation Oversight Officer to reduce

or eliminate any identified barriers to entry in the

cannabis industry; and

(11) any other criteria the Department of Agriculture

deems relevant.

(d) After January 1, 2022, the Department of Agriculture

may by rule modify or raise the number of infuser licenses, and

modify or change the licensing application process to reduce or

eliminate barriers based on the criteria in subsection (c).

Section 35-10. Application.

(a) When applying for a license, the applicant shall

electronically submit the following in such form as the

Department of Agriculture may direct:

(1) the nonrefundable application fee of $5,000 or,

after January 1, 2021, another amount as set by rule by the

Department of Agriculture, to be deposited into the

Cannabis Regulation Fund;

(2) the legal name of the infuser;

(3) the proposed physical address of the infuser;

(4) the name, address, social security number, and date

of birth of each principal officer and board member of the

infuser; each principal officer and board member shall be

at least 21 years of age;

(5) the details of any administrative or judicial

proceeding in which any of the principal officers or board

members of the infuser (i) pled guilty, were convicted,

fined, or had a registration or license suspended or

revoked, or (ii) managed or served on the board of a

business or non-profit organization that pled guilty, was

convicted, fined, or had a registration or license

suspended or revoked;

(6) proposed operating bylaws that include procedures

for the oversight of the infuser, including the development

and implementation of a plant monitoring system, accurate

recordkeeping, staffing plan, and security plan approved

by the Department of State Police that are in accordance

with the rules issued by the Department of Agriculture

under this Act; a physical inventory of all cannabis shall

be performed on a weekly basis by the infuser;

(7) verification from the Department of State Police

that all background checks of the prospective principal

officers, board members, and agents of the infuser

organization have been conducted;

(8) a copy of the current local zoning ordinance and

verification that the proposed infuser is in compliance

with the local zoning rules and distance limitations

established by the local jurisdiction;

(9) proposed employment practices, in which the

applicant must demonstrate a plan of action to inform,

hire, and educate minorities, women, veterans, and persons

with disabilities, engage in fair labor practices, and

provide worker protections;

(10) whether an applicant can demonstrate experience

in or business practices that promote economic empowerment

in Disproportionately Impacted Areas;

(11) experience with infusing products with cannabis

concentrate;

(12) a description of the enclosed, locked facility

where cannabis will be infused, packaged, or otherwise

prepared for distribution to a dispensing organization or

other infuser;

(13) processing, inventory, and packaging plans;

(14) a description of the applicant's experience with

operating a commercial kitchen or laboratory preparing

products for human consumption;

(15) a list of any academic degrees, certifications, or

relevant experience of all prospective principal officers,

board members, and agents of the related business;

(16) the identity of every person having a financial or

voting interest of 5% or greater in the infuser operation

with respect to which the license is sought, whether a

trust, corporation, partnership, limited liability

company, or sole proprietorship, including the name and

address of each person;

(17) a plan describing how the infuser will address

each of the following:

(i) energy needs, including estimates of monthly

electricity and gas usage, to what extent it will

procure energy from a local utility or from on-site

generation, and if it has or will adopt a sustainable

energy use and energy conservation policy;

(ii) water needs, including estimated water draw,

and if it has or will adopt a sustainable water use and

water conservation policy; and

(iii) waste management, including if it has or will

adopt a waste reduction policy;

(18) a recycling plan:

(A) a commitment that any recyclable waste

generated by the infuser shall be recycled per

applicable State and local laws, ordinances, and

rules; and

(B) a commitment to comply with local waste

provisions. An infuser commits to remain in compliance

with applicable State and federal environmental

requirements, including, but not limited to, storing,

securing, and managing all recyclables and waste,

including organic waste composed of or containing

finished cannabis and cannabis products, in accordance

with applicable State and local laws, ordinances, and

rules; and

(19) any other information required by rule.

(b) Applicants must submit all required information,

including the information required in Section 35-15, to the

Department of Agriculture. Failure by an applicant to submit

all required information may result in the application being

disqualified.

(c) If the Department of Agriculture receives an

application with missing information, the Department of

Agriculture may issue a deficiency notice to the applicant. The

applicant shall have 10 calendar days from the date of the

deficiency notice to resubmit the incomplete information.

Applications that are still incomplete after this opportunity

to cure will not be scored and will be disqualified.

Section 35-15. Issuing licenses.

(a) The Department of Agriculture shall by rule develop a

system to score infuser applications to administratively rank

applications based on the clarity, organization, and quality of

the applicant's responses to required information. Applicants

shall be awarded points based on the following categories:

(1) Suitability of the proposed facility;

(2) Suitability of the employee training plan;

(3) Security and recordkeeping plan;

(4) Infusing plan;

(5) Product safety and labeling plan;

(6) Business plan;

(7) The applicant's status as a Social Equity

Applicant, which shall constitute no less than 20% of total

available points;

(8) Labor and employment practices, which shall

constitute no less than 2% of total available points;

(9) Environmental plan as described in paragraphs (17)

and (18) of subsection (a) of Section 35-10;

(10) The applicant is 51% or more owned and controlled

by an individual or individuals who have been an Illinois

resident for the past 5 years as proved by tax records;

(11) The applicant is 51% or more controlled and owned

by an individual or individuals who meet the qualifications

of a veteran as defined by Section 45-57 of the Illinois

Procurement Code; and

(12) A diversity plan that includes a narrative of not

more than 2,500 words that establishes a goal of diversity

in ownership, management, employment, and contracting to

ensure that diverse participants and groups are afforded

equality of opportunity; and

(13) Any other criteria the Department of Agriculture

may set by rule for points.

(b) The Department may also award up to 2 bonus points for

the applicant's plan to engage with the community. The

applicant may demonstrate a desire to engage with its community

by participating in one or more of, but not limited to, the

following actions: (i) establishment of an incubator program

designed to increase participation in the cannabis industry by

persons who would qualify as Social Equity Applicants; (ii)

providing financial assistance to substance abuse treatment

centers; (iii) educating children and teens about the potential

harms of cannabis use; or (iv) other measures demonstrating a

commitment to the applicant's community. Bonus points will only

be awarded if the Department receives applications that receive

an equal score for a particular region.

(c) Should the applicant be awarded an infuser license, the

information and plans that an applicant provided in its

application, including any plans submitted for the acquiring of

bonus points, becomes a mandatory condition of the permit. Any

variation from or failure to perform such plans may result in

discipline, including the revocation or nonrenewal of a

license.

(d) Should the applicant be awarded an infuser organization

license, it shall pay a fee of $5,000 prior to receiving the

license, to be deposited into the Cannabis Regulation Fund. The

Department of Agriculture may by rule adjust the fee in this

Section after January 1, 2021.

Section 35-20. Denial of application. An application for an

infuser license shall be denied if any of the following

conditions are met:

(1) the applicant failed to submit the materials

required by this Article;

(2) the applicant would not be in compliance with local

zoning rules or permit requirements;

(3) one or more of the prospective principal officers

or board members causes a violation of Section 35-25.

(4) one or more of the principal officers or board

members is under 21 years of age;

(5) the person has submitted an application for a

license under this Act or this Article that contains false

information; or

(6) if the licensee; principal officer, board member,

or person having a financial or voting interest of 5% or

greater in the licensee; or agent is delinquent in filing

any required tax returns or paying any amounts owed to the

State of Illinois.

Section 35-25. Infuser organization requirements;

prohibitions.

(a) The operating documents of an infuser shall include

procedures for the oversight of the infuser, an inventory

monitoring system including a physical inventory recorded

weekly, accurate recordkeeping, and a staffing plan.

(b) An infuser shall implement a security plan reviewed by

the Department of State Police that includes, but is not

limited to: facility access controls, perimeter intrusion

detection systems, personnel identification systems, and a

24-hour surveillance system to monitor the interior and

exterior of the infuser facility and that is accessible to

authorized law enforcement, the Department of Public Health,

and the Department of Agriculture in real time.

(c) All processing of cannabis by an infuser must take

place in an enclosed, locked facility at the physical address

provided to the Department of Agriculture during the licensing

process. The infuser location shall only be accessed by the

agents working for the infuser, the Department of Agriculture

staff performing inspections, the Department of Public Health

staff performing inspections, State and local law enforcement

or other emergency personnel, contractors working on jobs

unrelated to cannabis, such as installing or maintaining

security devices or performing electrical wiring, transporting

organization agents as provided in this Act, participants in

the incubator program, individuals in a mentoring or

educational program approved by the State, local safety or

health inspectors, or other individuals as provided by rule.

However, if an infuser shares a premises with a craft grower or

dispensing organization, agents from these other licensees may

access the infuser portion of the premises if that is the

location of common bathrooms, lunchrooms, locker rooms, or

other areas of the building where processing of cannabis is not

performed. At no time may a craft grower or dispensing

organization agent perform work at an infuser without being a

registered agent of the infuser.

(d) An infuser may not sell or distribute any cannabis to

any person other than a dispensing organization, or as

otherwise authorized by rule.

(e) An infuser may not either directly or indirectly

discriminate in price between different cannabis business

establishments that are purchasing a like grade, strain, brand,

and quality of cannabis or cannabis-infused product. Nothing in

this subsection (e) prevents an infuser from pricing cannabis

differently based on differences in the cost of manufacturing

or processing, the quantities sold, such volume discounts, or

the way the products are delivered.

(f) All cannabis infused by an infuser and intended for

distribution to a dispensing organization must be entered into

a data collection system, packaged and labeled under Section

55-21, and, if distribution is to a dispensing organization

that does not share a premises with the infuser, placed into a

cannabis container for transport. All cannabis produced by an

infuser and intended for distribution to a cultivation center,

infuser organization, or craft grower with which it does not

share a premises, must be packaged in a labeled cannabis

container and entered into a data collection system before

transport.

(g) Infusers are subject to random inspections by the

Department of Agriculture, the Department of Public Health, the

Department of State Police, and local law enforcement.

(h) An infuser agent shall notify local law enforcement,

the Department of State Police, and the Department of

Agriculture within 24 hours of the discovery of any loss or

theft. Notification shall be made by phone, in person, or by

written or electronic communication.

(i) An infuser organization may not be located in an area

zoned for residential use.

(j) An infuser or infuser agent shall not transport

cannabis or cannabis-infused products to any other cannabis

business establishment without a transport organization

license unless:

(i) If the infuser is located in a county with a

population of 3,000,000 or more, the cannabis business

establishment receiving the cannabis or cannabis-infused

product is within 2,000 feet of the property line of the

infuser;

(ii) If the infuser is located in a county with a

population of more than 700,000 but fewer than 3,000,000,

the cannabis business establishment receiving the cannabis

or cannabis-infused product is within 2 miles of the

infuser; or

(iii) If the infuser is located in a county with a

population of fewer than 700,000, the cannabis business

establishment receiving the cannabis or cannabis-infused

product is within 15 miles of the infuser.

(k) An infuser may enter into a contract with a

transporting organization to transport cannabis to a

dispensing organization or a laboratory.

(l) An infuser organization may share premises with a craft

grower or a dispensing organization, or both, provided each

licensee stores currency and cannabis or cannabis-infused

products in a separate secured vault to which the other

licensee does not have access or all licensees sharing a vault

share more than 50% of the same ownership.

(m) It is unlawful for any person or entity having an

infuser organization license or any officer, associate,

member, representative or agent of such licensee to offer or

deliver money, or anything else of value, directly or

indirectly to any person having an Early Approval Adult Use

Dispensing Organization License, a Conditional Adult Use

Dispensing Organization License, an Adult Use Dispensing

Organization License, or a medical cannabis dispensing

organization license issued under the Compassionate Use of

Medical Cannabis Pilot Program Act, or to any person connected

with or in any way representing, or to any member of the family

of, such person holding an Early Approval Adult Use Dispensing

Organization License, a Conditional Adult Use Dispensing

Organization License, an Adult Use Dispensing Organization

License, or a medical cannabis dispensing organization license

issued under the Compassionate Use of Medical Cannabis Pilot

Program Act, or to any stockholders in any corporation engaged

the retail sales of cannabis, or to any officer, manager,

agent, or representative of the Early Approval Adult Use

Dispensing Organization License, a Conditional Adult Use

Dispensing Organization License, an Adult Use Dispensing

Organization License, or a medical cannabis dispensing

organization license issued under the Compassionate Use of

Medical Cannabis Pilot Program Act to obtain preferential

placement within the dispensing organization, including,

without limitation, on shelves and in display cases where

purchasers can view products, or on the dispensing

organization's website.

(n) At no time shall an infuser organization or an infuser

agent perform the extraction of cannabis concentrate from

cannabis flower.

Section 35-30. Infuser agent identification card.

(a) The Department of Agriculture shall:

(1) establish by rule the information required in an

initial application or renewal application for an agent

identification card submitted under this Act and the

nonrefundable fee to accompany the initial application or

renewal application;

(2) verify the information contained in an initial

application or renewal application for an agent

identification card submitted under this Act, and approve

or deny an application within 30 days of receiving a

completed initial application or renewal application and

all supporting documentation required by rule;

(3) issue an agent identification card to a qualifying

agent within 15 business days of approving the initial

application or renewal application;

(4) enter the license number of the infuser where the

agent works; and

(5) allow for an electronic initial application and

renewal application process, and provide a confirmation by

electronic or other methods that an application has been

submitted. The Department of Agriculture may by rule

require prospective agents to file their applications by

electronic means and provide notices to the agents by

electronic means.

(b) An agent must keep his or her identification card

visible at all times when on the property of a cannabis

business establishment including the cannabis business

establishment for which he or she is an agent.

(c) The agent identification cards shall contain the

following:

(1) the name of the cardholder;

(2) the date of issuance and expiration date of the

identification card;

(3) a random 10-digit alphanumeric identification

number containing at least 4 numbers and at least 4 letters

that is unique to the holder;

(4) a photograph of the cardholder; and

(5) the legal name of the infuser organization

employing the agent.

(d) An agent identification card shall be immediately

returned to the infuser organization of the agent upon

termination of his or her employment.

(e) Any agent identification card lost by a transporting

agent shall be reported to the Department of State Police and

the Department of Agriculture immediately upon discovery of the

loss.

Section 35-31. Ensuring an adequate supply of raw materials

to serve infusers.

(a) As used in this Section, "raw materials" includes, but

is not limited to, CO2 hash oil, "crude", "distillate", or any

other cannabis concentrate extracted from cannabis flower by

use of a solvent or a mechanical process.

(b) The Department of Agriculture may by rule design a

method for assessing whether licensed infusers have access to

an adequate supply of reasonably affordable raw materials,

which may include but not be limited to: (i) a survey of

infusers; (ii) a market study on the sales trends of

cannabis-infused products manufactured by infusers; and (iii)

the costs cultivation centers and craft growers assume for the

raw materials they use in any cannabis-infused products they

manufacture.

(c) The Department of Agriculture shall perform an

assessment of whether infusers have access to an adequate

supply of reasonably affordable raw materials that shall start

no sooner than January 1, 2022 and shall conclude no later than

April 1, 2022. The Department of Agriculture may rely on data

from the Illinois Cannabis Regulation Oversight Officer as part

of this assessment.

(d) The Department of Agriculture shall perform an

assessment of whether infusers have access to an adequate

supply of reasonably affordable raw materials that shall start

no sooner than January 1, 2023 and shall conclude no later than

April 1, 2023. The Department of Agriculture may rely on data

from the Cannabis Regulation Oversight Officer as part of this

assessment.

(e) The Department of Agriculture may by rule adopt

measures to ensure infusers have access to an adequate supply

of reasonably affordable raw materials necessary for the

manufacture of cannabis-infused products. Such measures may

include, but not be limited to (i) requiring cultivation

centers and craft growers to set aside a minimum amount of raw

materials for the wholesale market or (ii) enabling infusers to

apply for a processor license to extract raw materials from

cannabis flower.

(f) If the Department of Agriculture determines processor

licenses may be available to infusing organizations based upon

findings made pursuant to subsection (e), infuser

organizations may submit to the Department of Agriculture on

forms provided by the Department of Agriculture the following

information as part of an application to receive a processor

license:

(1) experience with the extraction, processing, or

infusing of oils similar to those derived from cannabis, or

other business practices to be performed by the infuser;

(2) a description of the applicant's experience with

manufacturing equipment and chemicals to be used in

processing;

(3) expertise in relevant scientific fields;

(4) a commitment that any cannabis waste, liquid waste,

or hazardous waste shall be disposed of in accordance with

8 Ill. Adm. Code 1000.460, except, to the greatest extent

feasible, all cannabis plant waste will be rendered

unusable by grinding and incorporating the cannabis plant

waste with compostable mixed waste to be disposed of in

accordance with Ill. Adm. Code 1000.460(g)(1); and

(5) any other information the Department of

Agriculture deems relevant.

(g) The Department of Agriculture may only issue an

infusing organization a processor license if, based on the

information pursuant to subsection (f) and any other criteria

set by the Department of Agriculture, which may include but not

be limited an inspection of the site where processing would

occur, the Department of Agriculture is reasonably certain the

infusing organization will process cannabis in a safe and

compliant manner.

Section 35-35. Infuser organization background checks.

(a) Through the Department of State Police, the Department

of Agriculture shall conduct a background check of the

prospective principal officers, board members, and agents of an

infuser applying for a license or identification card under

this Act. The Department of State Police shall charge a fee set

by rule for conducting the criminal history record check, which

shall be deposited into the State Police Services Fund and

shall not exceed the actual cost of the record check. In order

to carry out this provision, each infuser organization's

prospective principal officer, board member, or agent shall

submit a full set of fingerprints to the Department of State

Police for the purpose of obtaining a State and federal

criminal records check. These fingerprints shall be checked

against the fingerprint records now and hereafter, to the

extent allowed by law, filed in the Department of State Police

and Federal Bureau of Investigation criminal history records

databases. The Department of State Police shall furnish,

following positive identification, all conviction information

to the Department of Agriculture.

(b) When applying for the initial license or identification

card, the background checks for all prospective principal

officers, board members, and agents shall be completed before

submitting the application to the licensing or issuing agency.

Section 35-40. Renewal of infuser organization licenses

and agent identification cards.

(a) Licenses and identification cards issued under this Act

shall be renewed annually. An infuser organization shall

receive written or electronic notice 90 days before the

expiration of its current license that the license will expire.

The Department of Agriculture shall grant a renewal within 45

days of submission of a renewal application if:

(1) the infuser organization submits a renewal

application and the required nonrefundable renewal fee of

$20,000, or, after January 1, 2021, another amount set by

rule by the Department of Agriculture, to be deposited into

the Cannabis Regulation Fund;

(2) the Department of Agriculture has not suspended or

revoked the license of the infuser organization for

violating this Act or rules adopted under this Act;

(3) the infuser organization has continued to operate

in accordance with all plans submitted as part of its

application and approved by the Department of Agriculture

or any amendments thereto that have been approved by the

Department of Agriculture;

(4) The infuser has submitted an agent, employee,

contracting, and subcontracting diversity report as

required by the Department; and

(5) The infuser has submitted an environmental impact

report.

(b) If an infuser organization fails to renew its license

before expiration, it shall cease operations until its license

is renewed.

(c) If an infuser organization agent fails to renew his or

her identification card before its expiration, he or she shall

cease to work as an agent of the infuser organization until his

or her identification card is renewed.

(d) Any infuser organization that continues to operate, or

any infuser organization agent who continues to work as an

agent, after the applicable license or identification card has

expired without renewal is subject to the penalties provided

under Section 35-25.

(e) The Department shall not renew a license or an agent

identification card if the applicant is delinquent in filing

any required tax returns or paying any amounts owed to the

State of Illinois.

ARTICLE 40.

TRANSPORTING ORGANIZATIONS

Section 40-1. Definition. In this Article, "Department"

means the Department of Agriculture.

Section 40-5. Issuance of licenses.

(a) The Department shall issue transporting licenses

through a process provided for in this Article no later than

July 1, 2020.

(b) The Department shall make the application for

transporting organization licenses available on January 7,

2020 and shall receive such applications no later than March

15, 2020. Thereafter, the Department of Agriculture shall make

available such applications on every January 7 thereafter or if

that date falls on a weekend or holiday, the business day

immediately succeeding the weekend or holiday and shall receive

such applications no later than March 15 or the succeeding

business day thereafter.

Section 40-10. Application.

(a) When applying for a transporting organization license,

the applicant shall electronically submit the following in such

form as the Department of Agriculture may direct:

(1) the nonrefundable application fee of $5,000 or,

after January 1, 2021, another amount as set by rule by the

Department of Agriculture, to be deposited into the

Cannabis Regulation Fund;

(2) the legal name of the transporting organization;

(3) the proposed physical address of the transporting

organization, if one is proposed;

(4) the name, address, social security number, and date

of birth of each principal officer and board member of the

transporting organization; each principal officer and

board member shall be at least 21 years of age;

(5) the details of any administrative or judicial

proceeding in which any of the principal officers or board

members of the transporting organization (i) pled guilty,

were convicted, fined, or had a registration or license

suspended or revoked, or (ii) managed or served on the

board of a business or non-profit organization that pled

guilty, was convicted, fined, or had a registration or

license suspended or revoked;

(6) proposed operating bylaws that include procedures

for the oversight of the transporting organization,

including the development and implementation of an

accurate recordkeeping plan, staffing plan, and security

plan approved by the Department of State Police that are in

accordance with the rules issued by the Department of

Agriculture under this Act; a physical inventory shall be

performed of all cannabis on a weekly basis by the

transporting organization;

(7) verification from the Department of State Police

that all background checks of the prospective principal

officers, board members, and agents of the transporting

organization have been conducted;

(8) a copy of the current local zoning ordinance or

permit and verification that the proposed transporting

organization is in compliance with the local zoning rules

and distance limitations established by the local

jurisdiction, if the transporting organization has a

business address;

(9) proposed employment practices, in which the

applicant must demonstrate a plan of action to inform,

hire, and educate minorities, women, veterans, and persons

with disabilities, engage in fair labor practices, and

provide worker protections;

(10) whether an applicant can demonstrate experience

in or business practices that promote economic empowerment

in Disproportionately Impacted Areas;

(11) the number and type of equipment the transporting

organization will use to transport cannabis and

cannabis-infused products;

(12) loading, transporting, and unloading plans;

(13) a description of the applicant's experience in the

distribution or security business;

(14) the identity of every person having a financial or

voting interest of 5% or more in the transporting

organization with respect to which the license is sought,

whether a trust, corporation, partnership, limited

liability company, or sole proprietorship, including the

name and address of each person; and

(15) any other information required by rule.

(b) Applicants must submit all required information,

including the information required in Section 40-35 to the

Department. Failure by an applicant to submit all required

information may result in the application being disqualified.

(c) If the Department receives an application with missing

information, the Department of Agriculture may issue a

deficiency notice to the applicant. The applicant shall have 10

calendar days from the date of the deficiency notice to

resubmit the incomplete information. Applications that are

still incomplete after this opportunity to cure will not be

scored and will be disqualified.

Section 40-15. Issuing licenses.

(a) The Department of Agriculture shall by rule develop a

system to score transporter applications to administratively

rank applications based on the clarity, organization, and

quality of the applicant's responses to required information.

Applicants shall be awarded points based on the following

categories:

(1) Suitability of employee training plan;

(2) Security and recordkeeping plan;

(3) Business plan;

(4) The applicant's status as a Social Equity

Applicant, which shall constitute no less than 20% of total

available points;

(5) Labor and employment practices, which shall

constitute no less than 2% of total available points;

(6) Environmental plan that demonstrates an

environmental plan of action to minimize the carbon

footprint, environmental impact, and resource needs for

the transporter, which may include, without limitation,

recycling cannabis product packaging;

(7) the applicant is 51% or more owned and controlled

by an individual or individuals who have been an Illinois

resident for the past 5 years as proved by tax records;

(8) The applicant is 51% or more controlled and owned

by an individual or individuals who meet the qualifications

of a veteran as defined by Section 45-57 of the Illinois

Procurement Code;

(9) a diversity plan that includes a narrative of not

more than 2,500 words that establishes a goal of diversity

in ownership, management, employment, and contracting to

ensure that diverse participants and groups are afforded

equality of opportunity; and

(10) Any other criteria the Department of Agriculture

may set by rule for points.

(b) The Department may also award up to 2 bonus points for

the applicant's plan to engage with the community. The

applicant may demonstrate a desire to engage with its community

by participating in one or more of, but not limited to, the

following actions: (i) establishment of an incubator program

designed to increase participation in the cannabis industry by

persons who would qualify as Social Equity Applicants; (ii)

providing financial assistance to substance abuse treatment

centers; (iii) educating children and teens about the potential

harms of cannabis use; or (iv) other measures demonstrating a

commitment to the applicant's community. Bonus points will only

be awarded if the Department receives applications that receive

an equal score for a particular region.

(c) Applicants for transportation organization licenses

that score at least 85% of available points according to the

system developed by rule and meet all other requirements for a

transporter license shall be issued a license by the Department

of Agriculture within 60 days of receiving the application.

Applicants that were registered as medical cannabis

cultivation centers prior to January 1, 2020 and who meet all

other requirements for a transporter license shall be issued a

license by the Department of Agriculture within 60 days of

receiving the application.

(d) Should the applicant be awarded a transportation

organization license, the information and plans that an

applicant provided in its application, including any plans

submitted for the acquiring of bonus points, shall be a

mandatory condition of the permit. Any variation from or

failure to perform such plans may result in discipline,

including the revocation or nonrenewal of a license.

(e) Should the applicant be awarded a transporting

organization license, the applicant shall pay a prorated fee of

$10,000 prior to receiving the license, to be deposited into

the Cannabis Regulation Fund. The Department of Agriculture may

by rule adjust the fee in this Section after January 1, 2021.

Section 40-20. Denial of application. An application for a

transportation organization license shall be denied if any of

the following conditions are met:

(1) the applicant failed to submit the materials

required by this Article;

(2) the applicant would not be in compliance with local

zoning rules or permit requirements;

(3) one or more of the prospective principal officers

or board members causes a violation of Section 40-25;

(4) one or more of the principal officers or board

members is under 21 years of age;

(5) the person has submitted an application for a

license under this Act that contains false information; or

(6) the licensee, principal officer, board member, or

person having a financial or voting interest of 5% or

greater in the licensee is delinquent in filing any

required tax returns or paying any amounts owed to the

State of Illinois.

Section 40-25. Transporting organization requirements;

prohibitions.

(a) The operating documents of a transporting organization

shall include procedures for the oversight of the transporter,

an inventory monitoring system including a physical inventory

recorded weekly, accurate recordkeeping, and a staffing plan.

(b) A transporting organization may not transport cannabis

or cannabis-infused products to any person other than a

cultivation center, a craft grower, an infuser organization, a

dispensing organization, a testing facility, or as otherwise

authorized by rule.

(c) All cannabis transported by a transporting

organization must be entered into a data collection system and

placed into a cannabis container for transport.

(d) Transporters are subject to random inspections by the

Department of Agriculture, the Department of Public Health, and

the Department of State Police.

(e) A transporting organization agent shall notify local

law enforcement, the Department of State Police, and the

Department of Agriculture within 24 hours of the discovery of

any loss or theft. Notification shall be made by phone, in

person, or by written or electronic communication.

(f) No person under the age of 21 years shall be in a

commercial vehicle or trailer transporting cannabis goods.

(g) No person or individual who is not a transporting

organization agent shall be in a vehicle while transporting

cannabis goods.

(h) Transporters may not use commercial motor vehicles with

a weight rating of over 10,001 pounds.

(i) It is unlawful for any person to offer or deliver

money, or anything else of value, directly or indirectly, to

any of the following persons to obtain preferential placement

within the dispensing organization, including, without

limitation, on shelves and in display cases where purchasers

can view products, or on the dispensing organization's website:

(1) a person having a transporting organization

license, or any officer, associate, member,

representative, or agent of the licensee;

(2) a person having an Early Applicant Adult Use

Dispensing Organization License, an Adult Use Dispensing

Organization License, or a medical cannabis dispensing

organization license issued under the Compassionate Use of

Medical Cannabis Pilot Program Act;

(3) a person connected with or in any way representing,

or a member of the family of, a person holding an Early

Applicant Adult Use Dispensing Organization License, an

Adult Use Dispensing Organization License, or a medical

cannabis dispensing organization license issued under the

Compassionate Use of Medical Cannabis Pilot Program Act; or

(4) a stockholder, officer, manager, agent, or

representative of a corporation engaged in the retail sale

of cannabis, an Early Applicant Adult Use Dispensing

Organization License, an Adult Use Dispensing Organization

License, or a medical cannabis dispensing organization

license issued under the Compassionate Use of Medical

Cannabis Pilot Program Act.

(j) A transportation organization agent must keep his or

her identification card visible at all times when on the

property of a cannabis business establishment and during the

transportation of cannabis when acting under his or her duties

as a transportation organization agent. During these times, the

transporter organization agent must also provide the

identification card upon request of any law enforcement officer

engaged in his or her official duties.

(k) A copy of the transporting organization's registration

and a manifest for the delivery shall be present in any vehicle

transporting cannabis.

(l) Cannabis shall be transported so it is not visible or

recognizable from outside the vehicle.

(m) A vehicle transporting cannabis must not bear any

markings to indicate the vehicle contains cannabis or bear the

name or logo of the cannabis business establishment.

(n) Cannabis must be transported in an enclosed, locked

storage compartment that is secured or affixed to the vehicle.

(o) The Department of Agriculture may, by rule, impose any

other requirements or prohibitions on the transportation of

cannabis.

Section 40-30. Transporting agent identification card.

(a) The Department of Agriculture shall:

(1) establish by rule the information required in an

initial application or renewal application for an agent

identification card submitted under this Act and the

nonrefundable fee to accompany the initial application or

renewal application;

(2) verify the information contained in an initial

application or renewal application for an agent

identification card submitted under this Act and approve or

deny an application within 30 days of receiving a completed

initial application or renewal application and all

supporting documentation required by rule;

(3) issue an agent identification card to a qualifying

agent within 15 business days of approving the initial

application or renewal application;

(4) enter the license number of the transporting

organization where the agent works; and

(5) allow for an electronic initial application and

renewal application process, and provide a confirmation by

electronic or other methods that an application has been

submitted. The Department of Agriculture may by rule

require prospective agents to file their applications by

electronic means and provide notices to the agents by

electronic means.

(b) An agent must keep his or her identification card

visible at all times when on the property of a cannabis

business establishment, including the cannabis business

establishment for which he or she is an agent.

(c) The agent identification cards shall contain the

following:

(1) the name of the cardholder;

(2) the date of issuance and expiration date of the

identification card;

(3) a random 10-digit alphanumeric identification

number containing at least 4 numbers and at least 4 letters

that is unique to the holder;

(4) a photograph of the cardholder; and

(5) the legal name of the transporter organization

employing the agent.

(d) An agent identification card shall be immediately

returned to the transporter organization of the agent upon

termination of his or her employment.

(e) Any agent identification card lost by a transporting

agent shall be reported to the Department of State Police and

the Department of Agriculture immediately upon discovery of the

loss.

(f) An application for an agent identification card shall

be denied if the applicant is delinquent in filing any required

tax returns or paying any amounts owed to the State of

Illinois.

Section 40-35. Transporting organization background

checks.

(a) Through the Department of State Police, the Department

of Agriculture shall conduct a background check of the

prospective principal officers, board members, and agents of a

transporter applying for a license or identification card under

this Act. The Department of State Police shall charge a fee set

by rule for conducting the criminal history record check, which

shall be deposited into the State Police Services Fund and

shall not exceed the actual cost of the record check. In order

to carry out this provision, each transporter organization's

prospective principal officer, board member, or agent shall

submit a full set of fingerprints to the Department of State

Police for the purpose of obtaining a State and federal

criminal records check. These fingerprints shall be checked

against the fingerprint records now and hereafter, to the

extent allowed by law, filed in the Department of State Police

and Federal Bureau of Investigation criminal history records

databases. The Department of State Police shall furnish,

following positive identification, all conviction information

to the Department of Agriculture.

(b) When applying for the initial license or identification

card, the background checks for all prospective principal

officers, board members, and agents shall be completed before

submitting the application to the Department of Agriculture.

Section 40-40. Renewal of transporting organization

licenses and agent identification cards.

(a) Licenses and identification cards issued under this Act

shall be renewed annually. A transporting organization shall

receive written or electronic notice 90 days before the

expiration of its current license that the license will expire.

The Department of Agriculture shall grant a renewal within 45

days of submission of a renewal application if:

(1) the transporting organization submits a renewal

application and the required nonrefundable renewal fee of

$10,000, or after January 1, 2021, another amount set by

rule by the Department of Agriculture, to be deposited into

the Cannabis Regulation Fund;

(2) the Department of Agriculture has not suspended or

revoked the license of the transporting organization for

violating this Act or rules adopted under this Act;

(3) the transporting organization has continued to

operate in accordance with all plans submitted as part of

its application and approved by the Department of

Agriculture or any amendments thereto that have been

approved by the Department of Agriculture; and

(4) the transporter has submitted an agent, employee,

contracting, and subcontracting diversity report as

required by the Department.

(b) If a transporting organization fails to renew its

license before expiration, it shall cease operations until its

license is renewed.

(c) If a transporting organization agent fails to renew his

or her identification card before its expiration, he or she

shall cease to work as an agent of the transporter organization

until his or her identification card is renewed.

(d) Any transporting organization that continues to

operate, or any transporting organization agent who continues

to work as an agent, after the applicable license or

identification card has expired without renewal is subject to

the penalties provided under Section 45-5.

(e) The Department shall not renew a license or an agent

identification card if the applicant is delinquent in filing

any required tax returns or paying any amounts owed to the

State of Illinois.

ARTICLE 45.

ENFORCEMENT AND IMMUNITIES

Section 45-5. License suspension; revocation; other

penalties.

(a) Notwithstanding any other criminal penalties related

to the unlawful possession of cannabis, the Department of

Financial and Professional Regulation and the Department of

Agriculture may revoke, suspend, place on probation,

reprimand, issue cease and desist orders, refuse to issue or

renew a license, or take any other disciplinary or

nondisciplinary action as each department may deem proper with

regard to a cannabis business establishment or cannabis

business establishment agent, including fines not to exceed:

(1) $50,000 for each violation of this Act or rules

adopted under this Act by a cultivation center or

cultivation center agent;

(2) $10,000 for each violation of this Act or rules

adopted under this Act by a dispensing organization or

dispensing organization agent;

(3) $15,000 for each violation of this Act or rules

adopted under this Act by a craft grower or craft grower

agent;

(4) $10,000 for each violation of this Act or rules

adopted under this Act by an infuser organization or

infuser organization agent; and

(5) $10,000 for each violation of this Act or rules

adopted under this Act by a transporting organization or

transporting organization agent.

(b) The Department of Financial and Professional

Regulation and the Department of Agriculture, as the case may

be, shall consider licensee cooperation in any agency or other

investigation in its determination of penalties imposed under

this Section.

(c) The procedures for disciplining a cannabis business

establishment or cannabis business establishment agent and for

administrative hearings shall be determined by rule, and shall

provide for the review of final decisions under the

Administrative Review Law.

(d) The Attorney General may also enforce a violation of

Section 55-20, Section 55-21, and Section 15-155 as an unlawful

practice under the Consumer Fraud and Deceptive Business

Practices Act.

Section 45-10. Immunities and presumptions related to the

handling of cannabis by cannabis business establishments and

their agents.

(a) A cultivation center, craft grower, infuser

organization, or transporting organization is not subject to:

(i) prosecution; (ii) search or inspection, except by the

Department of Agriculture, the Department of Public Health, or

State or local law enforcement under this Act; (iii) seizure;

(iv) penalty in any manner, including, but not limited to,

civil penalty; (v) denial of any right or privilege; or (vi)

disciplinary action by a business licensing board or entity for

acting under this Act and rules adopted under this Act to

acquire, possess, cultivate, manufacture, process, deliver,

transfer, transport, supply, or sell cannabis or cannabis

paraphernalia under this Act.

(b) A licensed cultivation center agent, licensed craft

grower agent, licensed infuser organization agent, or licensed

transporting organization agent is not subject to: (i)

prosecution; (ii) search; (iii) penalty in any manner,

including, but not limited to, civil penalty; (iv) denial of

any right or privilege; or (v) disciplinary action by a

business licensing board or entity, for engaging in

cannabis-related activities authorized under this Act and

rules adopted under this Act.

(c) A dispensing organization is not subject to: (i)

prosecution; (ii) search or inspection, except by the

Department of Financial and Professional Regulation, or State

or local law enforcement under this Act; (iii) seizure; (iv)

penalty in any manner, including, but not limited to, civil

penalty; (v) denial of any right or privilege; or (vi)

disciplinary action by a business licensing board or entity,

for acting under this Act and rules adopted under this Act to

acquire, possess, or dispense cannabis, cannabis-infused

products, cannabis paraphernalia, or related supplies, and

educational materials under this Act.

(d) A licensed dispensing organization agent is not subject

to: (i) prosecution; (ii) search; or (iii) penalty in any

manner, or denial of any right or privilege, including, but not

limited to, civil penalty or disciplinary action by a business

licensing board or entity, for working for a dispensing

organization under this Act and rules adopted under this Act.

(e) Any cannabis, cannabis-infused product, cannabis

paraphernalia, legal property, or interest in legal property

that is possessed, owned, or used in connection with the use of

cannabis as allowed under this Act, or acts incidental to that

use, may not be seized or forfeited. This Act does not prevent

the seizure or forfeiture of cannabis exceeding the amounts

allowed under this Act, nor does it prevent seizure or

forfeiture if the basis for the action is unrelated to the

cannabis that is possessed, manufactured, transferred, or used

under this Act.

(f) Nothing in this Act shall preclude local or State law

enforcement agencies from searching a cultivation center,

craft grower, infuser organization, transporting organization,

or dispensing organization if there is probable cause to

believe that the criminal laws of this State have been violated

and the search is conducted in conformity with the Illinois

Constitution, the Constitution of the United States, and

applicable law.

(g) Nothing in this Act shall preclude the Attorney General

or other authorized government agency from investigating or

bringing a civil action against a cannabis business

establishment, or an agent thereof, for a violation of State

law, including, but not limited to, civil rights violations and

violations of the Consumer Fraud and Deceptive Business

Practices Act.

Section 45-15. State standards and requirements. Any

standards, requirements, and rules regarding the health and

safety, environmental protection, testing, security, food

safety, and worker protections established by the State shall

be the minimum standards for all licensees under this Act

statewide, where applicable. Knowing violations of any State or

local law, ordinance, or rule conferring worker protections or

legal rights on the employees of a licensee may be grounds for

disciplinary action under this Act, in addition to penalties

established elsewhere.

Section 45-20. Violation of tax Acts; refusal, revocation,

or suspension of license or agent identification card.

(a) In addition to other grounds specified in this Act, the

Department of Agriculture and Department of Financial and

Professional Regulation, upon notification by the Department

of Revenue, shall refuse the issuance or renewal of a license

or agent identification card, or suspend or revoke the license

or agent identification card, of any person, for any of the

following violations of any tax Act administered by the

Department of Revenue:

(1) Failure to file a tax return.

(2) The filing of a fraudulent return.

(3) Failure to pay all or part of any tax or penalty

finally determined to be due.

(4) Failure to keep books and records.

(5) Failure to secure and display a certificate or

sub-certificate of registration, if required.

(6) Willful violation of any rule or regulation of the

Department relating to the administration and enforcement

of tax liability.

(b) After all violations of any of items (1) through (6) of

subsection (a) have been corrected or resolved, the Department

shall, upon request of the applicant or, if not requested, may

notify the entities listed in subsection (a) that the

violations have been corrected or resolved. Upon receiving

notice from the Department that a violation of any of items (1)

through (6) of subsection (a) have been corrected or otherwise

resolved to the Department of Revenue's satisfaction, the

Department of Agriculture and the Department of Financial and

Professional Regulation may issue or renew the license or agent

identification card, or vacate an order of suspension or

revocation.

ARTICLE 50.

LABORATORY TESTING

Section 50-5. Laboratory testing.

(a) Notwithstanding any other provision of law, the

following acts, when performed by a cannabis testing facility

with a current, valid registration, or a person 21 years of age

or older who is acting in his or her capacity as an owner,

employee, or agent of a cannabis testing facility, are not

unlawful and shall not be an offense under Illinois law or be a

basis for seizure or forfeiture of assets under Illinois law:

(1) possessing, repackaging, transporting, storing, or

displaying cannabis or cannabis-infused products;

(2) receiving or transporting cannabis or

cannabis-infused products from a cannabis business

establishment, a community college licensed under the

Community College Cannabis Vocational Training Pilot

Program, or a person 21 years of age or older; and

(3) returning or transporting cannabis or

cannabis-infused products to a cannabis business

establishment, a community college licensed under the

Community College Cannabis Vocational Training Pilot

Program, or a person 21 years of age or older.

(b)(1) No laboratory shall handle, test, or analyze

cannabis unless approved by the Department of Agriculture in

accordance with this Section.

(2) No laboratory shall be approved to handle, test, or

analyze cannabis unless the laboratory:

(A) is accredited by a private laboratory accrediting

organization;

(B) is independent from all other persons involved in

the cannabis industry in Illinois and no person with a

direct or indirect interest in the laboratory has a direct

or indirect financial, management, or other interest in an

Illinois cultivation center, craft grower, dispensary,

infuser, transporter, certifying physician, or any other

entity in the State that may benefit from the production,

manufacture, dispensing, sale, purchase, or use of

cannabis; and

(C) has employed at least one person to oversee and be

responsible for the laboratory testing who has earned, from

a college or university accredited by a national or

regional certifying authority, at least:

(i) a master's level degree in chemical or

biological sciences and a minimum of 2 years'

post-degree laboratory experience; or

(ii) a bachelor's degree in chemical or biological

sciences and a minimum of 4 years' post-degree

laboratory experience.

(3) Each independent testing laboratory that claims to be

accredited must provide the Department of Agriculture with a

copy of the most recent annual inspection report granting

accreditation and every annual report thereafter.

(c) Immediately before manufacturing or natural processing

of any cannabis or cannabis-infused product or packaging

cannabis for sale to a dispensary, each batch shall be made

available by the cultivation center, craft grower, or infuser

for an employee of an approved laboratory to select a random

sample, which shall be tested by the approved laboratory for:

(1) microbiological contaminants;

(2) mycotoxins;

(3) pesticide active ingredients;

(4) residual solvent; and

(5) an active ingredient analysis.

(d) The Department of Agriculture may select a random

sample that shall, for the purposes of conducting an active

ingredient analysis, be tested by the Department of Agriculture

for verification of label information.

(e) A laboratory shall immediately return or dispose of any

cannabis upon the completion of any testing, use, or research.

If cannabis is disposed of, it shall be done in compliance with

Department of Agriculture rule.

(f) If a sample of cannabis does not pass the

microbiological, mycotoxin, pesticide chemical residue, or

solvent residue test, based on the standards established by the

Department of Agriculture, the following shall apply:

(1) If the sample failed the pesticide chemical residue

test, the entire batch from which the sample was taken

shall, if applicable, be recalled as provided by rule.

(2) If the sample failed any other test, the batch may

be used to make a CO2-based or solvent based extract. After

processing, the CO2-based or solvent based extract must

still pass all required tests.

(g) The Department of Agriculture shall establish

standards for microbial, mycotoxin, pesticide residue, solvent

residue, or other standards for the presence of possible

contaminants, in addition to labeling requirements for

contents and potency.

(h) The laboratory shall file with the Department of

Agriculture an electronic copy of each laboratory test result

for any batch that does not pass the microbiological,

mycotoxin, or pesticide chemical residue test, at the same time

that it transmits those results to the cultivation center. In

addition, the laboratory shall maintain the laboratory test

results for at least 5 years and make them available at the

Department of Agriculture's request.

(i) A cultivation center, craft grower, and infuser shall

provide to a dispensing organization the laboratory test

results for each batch of cannabis product purchased by the

dispensing organization, if sampled. Each dispensary

organization must have those laboratory results available upon

request to purchasers.

(j) The Department of Agriculture may adopt rules related

to testing in furtherance of this Act.

ARTICLE 55.

GENERAL PROVISIONS

Section 55-5. Preparation of cannabis-infused products.

(a) The Department of Agriculture may regulate the

production of cannabis-infused products by a cultivation

center, a craft grower, an infuser organization, or a

dispensing organization and establish rules related to

refrigeration, hot-holding, and handling of cannabis-infused

products. All cannabis-infused products shall meet the

packaging and labeling requirements contained in Section

55-21.

(b) Cannabis-infused products for sale or distribution at a

dispensing organization must be prepared by an approved agent

of a cultivation center or infuser organization.

(c) A cultivation center or infuser organization that

prepares cannabis-infused products for sale or distribution by

a dispensing organization shall be under the operational

supervision of a Department of Public Health certified food

service sanitation manager.

(d) Dispensing organizations may not manufacture, process,

or produce cannabis-infused products.

(e) The Department of Public Health shall adopt and enforce

rules for the manufacture and processing of cannabis-infused

products, and for that purpose it may at all times enter every

building, room, basement, enclosure, or premises occupied or

used, or suspected of being occupied or used, for the

production, preparation, manufacture for sale, storage, sale,

processing, distribution, or transportation of

cannabis-infused products, and to inspect the premises

together with all utensils, fixtures, furniture, and machinery

used for the preparation of these products.

(f) The Department of Agriculture shall by rule establish a

maximum level of THC that may be contained in each serving of

cannabis-infused product, and within the product package.

(g) If a local public health agency has a reasonable belief

that a cannabis-infused product poses a public health hazard,

it may refer the cultivation center, craft grower, or infuser

that manufactured or processed the cannabis-infused product to

the Department of Public Health. If the Department of Public

Health finds that a cannabis-infused product poses a health

hazard, it may bring an action for immediate injunctive relief

to require that action be taken as the court may deem necessary

to meet the hazard of the cultivation facility or seek other

relief as provided by rule.

Section 55-10. Maintenance of inventory. All dispensing

organizations authorized to serve both registered qualifying

patients and caregivers and purchasers are required to report

which cannabis and cannabis-infused products are purchased for

sale under the Compassionate Use of Medical Cannabis Pilot

Program Act, and which cannabis and cannabis-infused products

are purchased under this Act. Nothing in this Section prohibits

a registered qualifying patient under the Compassionate Use of

Medical Cannabis Pilot Program Act from purchasing cannabis as

a purchaser under this Act.

Section 55-15. Destruction of cannabis.

(a) All cannabis byproduct, scrap, and harvested cannabis

not intended for distribution to a dispensing organization must

be destroyed and disposed of under rules adopted by the

Department of Agriculture under this Act. Documentation of

destruction and disposal shall be retained at the cultivation

center, craft grower, infuser organization, transporter, or

testing facility as applicable for a period of not less than 5

years.

(b) A cultivation center, craft grower, or infuser

organization shall, before destruction, notify the Department

of Agriculture and the Department of State Police. A dispensing

organization shall, before destruction, notify the Department

of Financial and Professional Regulation and the Department of

State Police. The Department of Agriculture may by rule require

that an employee of the Department of Agriculture or the

Department of Financial and Professional Regulation be present

during the destruction of any cannabis byproduct, scrap, and

harvested cannabis, as applicable.

(c) The cultivation center, craft grower, infuser

organization, or dispensing organization shall keep a record of

the date of destruction and how much was destroyed.

(d) A dispensing organization shall destroy all cannabis,

including cannabis-infused products, not sold to purchasers.

Documentation of destruction and disposal shall be retained at

the dispensing organization for a period of not less than 5

years.

Section 55-20. Advertising and promotions.

(a) No cannabis business establishment nor any other person

or entity shall engage in advertising that contains any

statement or illustration that:

(1) is false or misleading;

(2) promotes overconsumption of cannabis or cannabis

products;

(3) depicts the actual consumption of cannabis or

cannabis products;

(4) depicts a person under 21 years of age consuming

cannabis;

(5) makes any health, medicinal, or therapeutic claims

about cannabis or cannabis-infused products;

(6) includes the image of a cannabis leaf or bud; or

(7) includes any image designed or likely to appeal to

minors, including cartoons, toys, animals, or children, or

any other likeness to images, characters, or phrases that

is designed in any manner to be appealing to or encourage

consumption of persons under 21 years of age.

(b) No cannabis business establishment nor any other person

or entity shall place or maintain, or cause to be placed or

maintained, an advertisement of cannabis or a cannabis-infused

product in any form or through any medium:

(1) within 1,000 feet of the perimeter of school

grounds, a playground, a recreation center or facility, a

child care center, a public park or public library, or a

game arcade to which admission is not restricted to persons

21 years of age or older;

(2) on or in a public transit vehicle or public transit

shelter;

(3) on or in publicly owned or publicly operated

property; or

(4) that contains information that:

(A) is false or misleading;

(B) promotes excessive consumption;

(C) depicts a person under 21 years of age

consuming cannabis;

(D) includes the image of a cannabis leaf; or

(E) includes any image designed or likely to appeal

to minors, including cartoons, toys, animals, or

children, or any other likeness to images, characters,

or phrases that are popularly used to advertise to

children, or any imitation of candy packaging or

labeling, or that promotes consumption of cannabis.

(c) Subsections (a) and (b) do not apply to an educational

message.

(d) Sales promotions. No cannabis business establishment

nor any other person or entity may encourage the sale of

cannabis or cannabis products by giving away cannabis or

cannabis products, by conducting games or competitions related

to the consumption of cannabis or cannabis products, or by

providing promotional materials or activities of a manner or

type that would be appealing to children.

Section 55-21. Cannabis product packaging and labeling.

(a) Each cannabis product produced for sale shall be

registered with the Department of Agriculture on forms provided

by the Department of Agriculture. Each product registration

shall include a label and the required registration fee at the

rate established by the Department of Agriculture for a

comparable medical cannabis product, or as established by rule.

The registration fee is for the name of the product offered for

sale and one fee shall be sufficient for all package sizes.

(b) All harvested cannabis intended for distribution to a

cannabis enterprise must be packaged in a sealed, labeled

container.

(c) Any product containing cannabis shall be packaged in a

sealed, odor-proof, and child-resistant cannabis container

consistent with current standards, including the Consumer

Product Safety Commission standards referenced by the Poison

Prevention Act.

(d) All cannabis-infused products shall be individually

wrapped or packaged at the original point of preparation. The

packaging of the cannabis-infused product shall conform to the

labeling requirements of the Illinois Food, Drug and Cosmetic

Act, in addition to the other requirements set forth in this

Section.

(e) Each cannabis product shall be labeled before sale and

each label shall be securely affixed to the package and shall

state in legible English and any languages required by the

Department of Agriculture:

(1) The name and post office box of the registered

cultivation center or craft grower where the item was

manufactured;

(2) The common or usual name of the item and the

registered name of the cannabis product that was registered

with the Department of Agriculture under subsection (a);

(3) A unique serial number that will match the product

with a cultivation center or craft grower batch and lot

number to facilitate any warnings or recalls the Department

of Agriculture, cultivation center, or craft grower deems

appropriate;

(4) The date of final testing and packaging, if

sampled, and the identification of the independent testing

laboratory;

(5) The date of harvest and "use by" date;

(6) The quantity (in ounces or grams) of cannabis

contained in the product;

(7) A pass/fail rating based on the laboratory's

microbiological, mycotoxins, and pesticide and solvent

residue analyses, if sampled.

(8) Content list.

(A) A list of the following, including the minimum

and maximum percentage content by weight for

subdivisions (d)(8)(A)(i) through (iv):

(i) delta-9-tetrahydrocannabinol (THC);

(ii) tetrahydrocannabinolic acid (THCA);

(iii) cannabidiol (CBD);

(iv) cannabidiolic acid (CBDA); and

(v) all other ingredients of the item,

including any colors, artificial flavors, and

preservatives, listed in descending order by

predominance of weight shown with common or usual

names.

(B) The acceptable tolerances for the minimum

percentage printed on the label for any of subdivisions

(d)(8)(A)(i) through (iv) shall not be below 85% or

above 115% of the labeled amount;

(f) Packaging must not contain information that:

(1) is false or misleading;

(2) promotes excessive consumption;

(3) depicts a person under 21 years of age consuming

cannabis;

(4) includes the image of a cannabis leaf;

(5) includes any image designed or likely to appeal to

minors, including cartoons, toys, animals, or children, or

any other likeness to images, characters, or phrases that

are popularly used to advertise to children, or any

packaging or labeling that bears reasonable resemblance to

any product available for consumption as a commercially

available candy, or that promotes consumption of cannabis;

(6) contains any seal, flag, crest, coat of arms, or

other insignia likely to mislead the purchaser to believe

that the product has been endorsed, made, or used by the

State of Illinois or any of its representatives except

where authorized by this Act.

(g) Cannabis products produced by concentrating or

extracting ingredients from the cannabis plant shall contain

the following information, where applicable:

(1) If solvents were used to create the concentrate or

extract, a statement that discloses the type of extraction

method, including any solvents or gases used to create the

concentrate or extract; and

(2) Any other chemicals or compounds used to produce or

were added to the concentrate or extract.

(h) All cannabis products must contain warning statements

established for purchasers, of a size that is legible and

readily visible to a consumer inspecting a package, which may

not be covered or obscured in any way. The Department of Public

Health shall define and update appropriate health warnings for

packages including specific labeling or warning requirements

for specific cannabis products.

(i) Unless modified by rule to strengthen or respond to new

evidence and science, the following warnings shall apply to all

cannabis products unless modified by rule: "This product

contains cannabis and is intended for use by adults 21 and

over. Its use can impair cognition and may be habit forming.

This product should not be used by pregnant or breastfeeding

women. It is unlawful to sell or provide this item to any

individual, and it may not be transported outside the State of

Illinois. It is illegal to operate a motor vehicle while under

the influence of cannabis. Possession or use of this product

may carry significant legal penalties in some jurisdictions and

under federal law.".

(j) Warnings for each of the following product types must

be present on labels when offered for sale to a purchaser:

(1) Cannabis that may be smoked must contain a

statement that "Smoking is hazardous to your health.".

(2) Cannabis-infused products (other than those

intended for topical application) must contain a statement

"CAUTION: This product contains cannabis, and intoxication

following use may be delayed 2 or more hours. This product

was produced in a facility that cultivates cannabis, and

that may also process common food allergens.".

(3) Cannabis-infused products intended for topical

application must contain a statement "DO NOT EAT" in bold,

capital letters.

(k) Each cannabis-infused product intended for consumption

must be individually packaged, must include the total milligram

content of THC and CBD, and may not include more than a total

of 100 milligrams of THC per package. A package may contain

multiple servings of 10 milligrams of THC, and indicated by

scoring, wrapping, or by other indicators designating

individual serving sizes. The Department of Agriculture may

change the total amount of THC allowed for each package, or the

total amount of THC allowed for each serving size, by rule.

(l) No individual other than the purchaser may alter or

destroy any labeling affixed to the primary packaging of

cannabis or cannabis-infused products.

(m) For each commercial weighing and measuring device used

at a facility, the cultivation center or craft grower must:

(1) Ensure that the commercial device is licensed under

the Weights and Measures Act and the associated

administrative rules (8 Ill. Adm. Code 600);

(2) Maintain documentation of the licensure of the

commercial device; and

(3) Provide a copy of the license of the commercial

device to the Department of Agriculture for review upon

request.

(n) It is the responsibility of the Department to ensure

that packaging and labeling requirements, including product

warnings, are enforced at all times for products provided to

purchasers. Product registration requirements and container

requirements may be modified by rule by the Department of

Agriculture.

(o) Labeling, including warning labels, may be modified by

rule by the Department of Agriculture.

Section 55-25. Local ordinances. Unless otherwise provided

under this Act or otherwise in accordance with State law:

(1) A unit of local government, including a home rule

unit or any non-home rule county within the unincorporated

territory of the county, may enact reasonable zoning

ordinances or resolutions, not in conflict with this Act or

rules adopted pursuant to this Act, regulating cannabis

business establishments. No unit of local government,

including a home rule unit or any non-home rule county

within the unincorporated territory of the county, may

prohibit home cultivation or unreasonably prohibit use of

cannabis authorized by this Act.

(2) A unit of local government, including a home rule

unit or any non-home rule county within the unincorporated

territory of the county, may enact ordinances or rules not

in conflict with this Act or with rules adopted pursuant to

this Act governing the time, place, manner, and number of

cannabis business establishment operations, including

minimum distance limitations between cannabis business

establishments and locations it deems sensitive, including

colleges and universities, through the use of conditional

use permits. A unit of local government, including a home

rule unit, may establish civil penalties for violation of

an ordinance or rules governing the time, place, and manner

of operation of a cannabis business establishment or a

conditional use permit in the jurisdiction of the unit of

local government. No unit of local government, including a

home rule unit or non-home rule county within an

unincorporated territory of the county, may unreasonably

restrict the time, place, manner, and number of cannabis

business establishment operations authorized by this Act.

(3) A unit of local government, including a home rule

unit, or any non-home rule county within the unincorporated

territory of the county may regulate the on-premises

consumption of cannabis at or in a cannabis business

establishment within its jurisdiction in a manner

consistent with this Act. A cannabis business

establishment or other entity authorized or permitted by a

unit of local government to allow on-site consumption shall

not be deemed a public place within the meaning of the

Smoke Free Illinois Act.

(4) A unit of local government, including a home rule

unit or any non-home rule county within the unincorporated

territory of the county, may not regulate the activities

described in paragraph (1), (2), or (3) in a manner more

restrictive than the regulation of those activities by the

State under this Act. This Section is a limitation under

subsection (i) of Section 6 of Article VII of the Illinois

Constitution on the concurrent exercise by home rule units

of powers and functions exercised by the State.

(5) A unit of local government, including a home rule

unit or any non-home rule county within the unincorporated

territory of the county, may enact ordinances to prohibit

or significantly limit a cannabis business establishment's

location.

Section 55-28. Restricted cannabis zones.

(a) As used in this Section:

"Legal voter" means a person:

(1) who is duly registered to vote in a municipality

with a population of over 500,000;

(2) whose name appears on a poll list compiled by the

city board of election commissioners since the last

preceding election, regardless of whether the election was

a primary, general, or special election;

(3) who, at the relevant time, is a resident of the

address at which he or she is registered to vote; and

(4) whose address, at the relevant time, is located in

the precinct where such person seeks to circulate or sign a

petition under this Section.

As used in the definition of "legal voter", "relevant time"

means any time that:

(i) a notice of intent is filed, pursuant to subsection

(c) of this Section, to initiate the petition process under

this Section;

(ii) the petition is circulated for signature in the

applicable precinct; or

(iii) the petition is signed by registered voters in

the applicable precinct.

"Petition" means the petition described in this Section.

"Precinct" means the smallest constituent territory within

a municipality with a population of over 500,000 in which

electors vote as a unit at the same polling place in any

election governed by the Election Code.

"Restricted cannabis zone" means a precinct within which

home cultivation, one or more types of cannabis business

establishments, or both has been prohibited pursuant to an

ordinance initiated by a petition under this Section.

(b) The legal voters of any precinct within a municipality

with a population of over 500,000 may petition their local

alderman, using a petition form made available online by the

city clerk, to introduce an ordinance establishing the precinct

as a restricted zone. Such petition shall specify whether it

seeks an ordinance to prohibit, within the precinct: (i) home

cultivation; (ii) one or more types of cannabis business

establishments; or (iii) home cultivation and one or more types

of cannabis business establishments.

Upon receiving a petition containing the signatures of at

least 25% of the registered voters of the precinct, and

concluding that the petition is legally sufficient following

the posting and review process in subsection (c) of this

Section, the city clerk shall notify the local alderman of the

ward in which the precinct is located. Upon being notified,

that alderman, following an assessment of relevant factors

within the precinct, including but not limited to, its

geography, density and character, the prevalence of

residentially zoned property, current licensed cannabis

business establishments in the precinct, the current amount of

home cultivation in the precinct, and the prevailing viewpoint

with regard to the issue raised in the petition, may introduce

an ordinance to the municipality's governing body creating a

restricted cannabis zone in that precinct.

(c) A person seeking to initiate the petition process

described in this Section shall first submit to the city clerk

notice of intent to do so, on a form made available online by

the city clerk. That notice shall include a description of the

potentially affected area and the scope of the restriction

sought. The city clerk shall publicly post the submitted notice

online.

To be legally sufficient, a petition must contain the

requisite number of valid signatures and all such signatures

must be obtained within 90 days of the date that the city clerk

publicly posts the notice of intent. Upon receipt, the city

clerk shall post the petition on the municipality's website for

a 30-day comment period. The city clerk is authorized to take

all necessary and appropriate steps to verify the legal

sufficiency of a submitted petition. Following the petition

review and comment period, the city clerk shall publicly post

online the status of the petition as accepted or rejected, and

if rejected, the reasons therefor. If the city clerk rejects a

petition as legally insufficient, a minimum of 12 months must

elapse from the time the city clerk posts the rejection notice

before a new notice of intent for that same precinct may be

submitted.

(d) Notwithstanding any law to the contrary, the

municipality may enact an ordinance creating a restricted

cannabis zone. The ordinance shall:

(1) identify the applicable precinct boundaries as of

the date of the petition;

(2) state whether the ordinance prohibits within the

defined boundaries of the precinct, and in what

combination: (A) one or more types of cannabis business

establishments; or (B) home cultivation;

(3) be in effect for 4 years, unless repealed earlier;

and

(4) once in effect, be subject to renewal by ordinance

at the expiration of the 4-year period without the need for

another supporting petition.

Section 55-30. Confidentiality.

(a) Information provided by the cannabis business

establishment licensees or applicants to the Department of

Agriculture, the Department of Public Health, the Department of

Financial and Professional Regulation, the Department of

Commerce and Economic Opportunity, or other agency shall be

limited to information necessary for the purposes of

administering this Act. The information is subject to the

provisions and limitations contained in the Freedom of

Information Act and may be disclosed in accordance with Section

55-65.

(b) The following information received and records kept by

the Department of Agriculture, the Department of Public Health,

the Department of State Police, and the Department of Financial

and Professional Regulation for purposes of administering this

Article are subject to all applicable federal privacy laws, are

confidential and exempt from disclosure under the Freedom of

Information Act, except as provided in this Act, and not

subject to disclosure to any individual or public or private

entity, except to the Department of Financial and Professional

Regulation, the Department of Agriculture, the Department of

Public Health, and the Department of State Police as necessary

to perform official duties under this Article. The following

information received and kept by the Department of Financial

and Professional Regulation or the Department of Agriculture,

excluding any existing or non-existing Illinois or national

criminal history record information, may be disclosed to the

Department of Public Health, the Department of Agriculture, the

Department of Revenue, or the Department of State Police upon

request:

(1) Applications and renewals, their contents, and

supporting information submitted by or on behalf of

dispensing organizations in compliance with this Article,

including their physical addresses;

(2) Any plans, procedures, policies, or other records

relating to dispensing organization security;

(3) Information otherwise exempt from disclosure by

State or federal law.

(c) The name and address of a dispensing organization

licensed under this Act shall be subject to disclosure under

the Freedom of Information Act. The name and cannabis business

establishment address of the person or entity holding each

cannabis business establishment license shall be subject to

disclosure.

(d) All information collected by the Department of

Financial and Professional Regulation in the course of an

examination, inspection, or investigation of a licensee or

applicant, including, but not limited to, any complaint against

a licensee or applicant filed with the Department and

information collected to investigate any such complaint, shall

be maintained for the confidential use of the Department and

shall not be disclosed, except as otherwise provided in the

Act. A formal complaint against a licensee by the Department or

any disciplinary order issued by the Department against a

licensee or applicant shall be a public record, except as

otherwise prohibited by law, as required by law, or as

necessary to enforce the provisions of this Act. Complaints

from consumers or members of the general public received

regarding a specific, named licensee or complaints regarding

conduct by unlicensed entities shall be subject to disclosure

under the Freedom of Information Act

(e) The Department of Agriculture, the Department of State

Police, and the Department of Financial and Professional

Regulation shall not share or disclose any existing or

non-existing Illinois or national criminal history record

information to any person or entity not expressly authorized by

this Act. As used in this Section, "any existing or

non-existing Illinois or national criminal history record

information" means any Illinois or national criminal history

record information, including but not limited to the lack of or

non-existence of these records.

(f) Each Department responsible for licensure under this

Act shall publish on the Department's website a list of the

ownership information of cannabis business establishment

licensees under the Department's jurisdiction. The list shall

include, but is not limited to: the name of the person or

entity holding each cannabis business establishment license;

and the address at which the entity is operating under this

Act. This list shall be published and updated monthly.

Section 55-35. Administrative rulemaking.

(a) No later than 180 days after the effective date of this

Act, the Department of Agriculture, the Department of State

Police, the Department of Financial and Professional

Regulation, the Department of Revenue, the Department of

Commerce and Economic Opportunity, and the Treasurer's Office

shall adopt permanent rules in accordance with their

responsibilities under this Act. The Department of

Agriculture, the Department of State Police, the Department of

Financial and Professional Regulation, the Department of

Revenue, and the Department of Commerce and Economic

Opportunity may adopt rules necessary to regulate personal

cannabis use through the use of emergency rulemaking in

accordance with subsection (gg) of Section 5-45 of the Illinois

Administrative Procedure Act. The General Assembly finds that

the adoption of rules to regulate cannabis use is deemed an

emergency and necessary for the public interest, safety, and

welfare.

(b) The Department of Agriculture rules may address, but

are not limited to, the following matters related to

cultivation centers, craft growers, infuser organizations, and

transporting organizations with the goal of protecting against

diversion and theft, without imposing an undue burden on the

cultivation centers, craft growers, infuser organizations, or

transporting organizations:

(1) oversight requirements for cultivation centers,

craft growers, infuser organizations, and transporting

organizations;

(2) recordkeeping requirements for cultivation

centers, craft growers, infuser organizations, and

transporting organizations;

(3) security requirements for cultivation centers,

craft growers, infuser organizations, and transporting

organizations, which shall include that each cultivation

center, craft grower, infuser organization, and

transporting organization location must be protected by a

fully operational security alarm system;

(4) standards for enclosed, locked facilities under

this Act;

(5) procedures for suspending or revoking the

identification cards of agents of cultivation centers,

craft growers, infuser organizations, and transporting

organizations that commit violations of this Act or the

rules adopted under this Section;

(6) rules concerning the intrastate transportation of

cannabis from a cultivation center, craft grower, infuser

organization, and transporting organization to a

dispensing organization;

(7) standards concerning the testing, quality,

cultivation, and processing of cannabis; and

(8) any other matters under oversight by the Department

of Agriculture as are necessary for the fair, impartial,

stringent, and comprehensive administration of this Act.

(c) The Department of Financial and Professional

Regulation rules may address, but are not limited to, the

following matters related to dispensing organizations, with

the goal of protecting against diversion and theft, without

imposing an undue burden on the dispensing organizations:

(1) oversight requirements for dispensing

organizations;

(2) recordkeeping requirements for dispensing

organizations;

(3) security requirements for dispensing

organizations, which shall include that each dispensing

organization location must be protected by a fully

operational security alarm system;

(4) procedures for suspending or revoking the licenses

of dispensing organization agents that commit violations

of this Act or the rules adopted under this Act;

(5) any other matters under oversight by the Department

of Financial and Professional Regulation that are

necessary for the fair, impartial, stringent, and

comprehensive administration of this Act.

(d) The Department of Revenue rules may address, but are

not limited to, the following matters related to the payment of

taxes by cannabis business establishments:

(1) recording of sales;

(2) documentation of taxable income and expenses;

(3) transfer of funds for the payment of taxes; or

(4) any other matter under the oversight of the

Department of Revenue.

(e) The Department of Commerce and Economic Opportunity

rules may address, but are not limited to, a loan program or

grant program to assist Social Equity Applicants access the

capital needed to start a cannabis business establishment. The

names of recipients and the amounts of any moneys received

through a loan program or grant program shall be a public

record.

(f) The Department of State Police rules may address

enforcement of its authority under this Act. The Department of

State Police shall not make rules that infringe on the

exclusive authority of the Department of Financial and

Professional Regulation or the Department of Agriculture over

licensees under this Act.

(g) The Department of Public Health shall develop and

disseminate:

(1) educational information about the health risks

associated with the use of cannabis; and

(2) one or more public education campaigns in

coordination with local health departments and community

organizations, including one or more prevention campaigns

directed at children, adolescents, parents, and pregnant

or breastfeeding women, to inform them of the potential

health risks associated with intentional or unintentional

cannabis use.

Section 55-40. Enforcement.

(a) If the Department of Agriculture, Department of State

Police, Department of Financial and Professional Regulation,

Department of Commerce and Economic Opportunity, or Department

of Revenue fails to adopt rules to implement this Act within

the times provided in this Act, any citizen may commence a

mandamus action in the circuit court to compel the agencies to

perform the actions mandated under Section 55-35.

(b) If the Department of Agriculture or the Department of

Financial and Professional Regulation fails to issue a valid

agent identification card in response to a valid initial

application or renewal application submitted under this Act or

fails to issue a verbal or written notice of denial of the

application within 30 days of its submission, the agent

identification card is deemed granted and a copy of the agent

identification initial application or renewal application

shall be deemed a valid agent identification card.

(c) Authorized employees of State or local law enforcement

agencies shall immediately notify the Department of

Agriculture and the Department of Financial and Professional

Regulation when any person in possession of an agent

identification card has been convicted of or pled guilty to

violating this Act.

Section 55-45. Administrative hearings.

(a) Administrative hearings related to the duties and

responsibilities assigned to the Department of Public Health

shall be conducted under the Department of Public Health's

rules governing administrative hearings.

(b) Administrative hearings related to the duties and

responsibilities assigned to the Department of Financial and

Professional Regulation and dispensing organization agents

shall be conducted under the Department of Financial and

Professional Regulation's rules governing administrative

hearings.

(c) Administrative hearings related to the duties and

responsibilities assigned to the Department of Agriculture,

cultivation centers, or cultivation center agents shall be

conducted under the Department of Agriculture's rules

governing administrative hearings.

Section 55-50. Petition for rehearing. Within 20 days after

the service of any order or decision of the Department of

Public Health, the Department of Agriculture, the Department of

Financial and Professional Regulation, or the Department of

State Police upon any party to the proceeding, the party may

apply for a rehearing in respect to any matters determined by

them under this Act, except for decisions made under the

Cannabis Cultivation Privilege Tax Law, the Cannabis Purchaser

Excise Tax Law, the County Cannabis Retailers' Occupation Tax

Law, and the Municipal Cannabis Retailers' Occupation Tax Law,

which shall be governed by the provisions of those Laws. If a

rehearing is granted, an agency shall hold the rehearing and

render a decision within 30 days from the filing of the

application for rehearing with the agency. The time for holding

such rehearing and rendering a decision may be extended for a

period not to exceed 30 days, for good cause shown, and by

notice in writing to all parties of interest. If an agency

fails to act on the application for rehearing within 30 days,

or the date the time for rendering a decision was extended for

good cause shown, the order or decision of the agency is final.

No action for the judicial review of any order or decision of

an agency shall be allowed unless the party commencing such

action has first filed an application for a rehearing and the

agency has acted or failed to act upon the application. Only

one rehearing may be granted by an agency on application of any

one party.

Section 55-55. Review of administrative decisions. All

final administrative decisions of the Department of Public

Health, the Department of Agriculture, the Department of

Financial and Professional Regulation, and the Department of

State Police are subject to judicial review under the

Administrative Review Law and the rules adopted under that Law.

The term "administrative decision" is defined as in Section

3-101 of the Code of Civil Procedure.

Section 55-60. Suspension or revocation of a license.

(a) The Department of Financial and Professional

Regulation or the Department of Agriculture may suspend or

revoke a license for a violation of this Act or a rule adopted

in accordance with this Act by the Department of Agriculture

and the Department of Financial and Professional Regulation.

(b) The Department of Agriculture and the Department of

Financial and Professional Regulation may suspend or revoke an

agent identification card for a violation of this Act or a rule

adopted in accordance with this Act.

Section 55-65. Financial institutions.

(a) A financial institution that provides financial

services customarily provided by financial institutions to a

cannabis business establishment authorized under this Act or

the Compassionate Use of Medical Cannabis Pilot Program Act, or

to a person that is affiliated with such cannabis business

establishment, is exempt from any criminal law of this State as

it relates to cannabis-related conduct authorized under State

law.

(b) Upon request of a financial institution, a cannabis

business establishment or proposed cannabis business

establishment may provide to the financial institution the

following information:

(1) Whether a cannabis business establishment with

which the financial institution is doing or is considering

doing business holds a license under this Act or the

Compassionate Use of Medical Cannabis Pilot Program Act;

(2) The name of any other business or individual

affiliate with the cannabis business establishment;

(3) A copy of the application, and any supporting

documentation submitted with the application, for a

license or a permit submitted on behalf of the proposed

cannabis business establishment;

(4) If applicable, data relating to sales and the

volume of product sold by the cannabis business

establishment;

(5) Any past or pending violation by the person of this

Act, the Compassionate Use of Medical Cannabis Pilot

Program Act, or the rules adopted under these Acts where

applicable; and

(6) Any penalty imposed upon the person for violating

this Act, the Compassionate Use of Medical Cannabis Pilot

Program Act, or the rules adopted under these Acts.

(c) (Blank).

(d) (Blank).

(e) Information received by a financial institution under

this Section is confidential. Except as otherwise required or

permitted by this Act, State law or rule, or federal law or

regulation, a financial institution may not make the

information available to any person other than:

(1) the customer to whom the information applies;

(2) a trustee, conservator, guardian, personal

representative, or agent of the customer to whom the

information applies; a federal or State regulator when

requested in connection with an examination of the

financial institution or if otherwise necessary for

complying with federal or State law;

(3) a federal or State regulator when requested in

connection with an examination of the financial

institution or if otherwise necessary for complying with

federal or State law; and

(4) a third party performing services for the financial

institution, provided the third party is performing such

services under a written agreement that expressly or by

operation of law prohibits the third party's sharing and

use of such confidential information for any purpose other

than as provided in its agreement to provide services to

the financial institution.

Section 55-75. Contracts enforceable. It is the public

policy of this State that contracts related to the operation of

a lawful cannabis business establishment under this Act are

enforceable. It is the public policy of this State that no

contract entered into by a lawful cannabis business

establishment or its agents on behalf of a cannabis business

establishment, or by those who allow property to be used by a

cannabis business establishment, shall be unenforceable on the

basis that cultivating, obtaining, manufacturing, processing,

distributing, dispensing, transporting, selling, possessing,

or using cannabis or hemp is prohibited by federal law.

Section 55-80. Annual reports.

(a) The Department of Financial and Professional

Regulation shall submit to the General Assembly and Governor a

report, by September 30 of each year, that does not disclose

any information identifying information about cultivation

centers, craft growers, infuser organizations, transporting

organizations, or dispensing organizations, but does contain,

at a minimum, all of the following information for the previous

fiscal year:

(1) The number of licenses issued to dispensing

organizations by county, or, in counties with greater than

3,000,000 residents, by zip code;

(2) The total number of dispensing organization owners

that are Social Equity Applicants or minority persons,

women, or persons with disabilities as those terms are

defined in the Business Enterprise for Minorities, Women,

and Persons with Disabilities Act;

(3) The total number of revenues received from

dispensing organizations, segregated from revenues

received from dispensing organizations under the

Compassionate Use of Medical Cannabis Pilot Program Act by

county, separated by source of revenue;

(4) The total amount of revenue received from

dispensing organizations that share a premises or majority

ownership with a craft grower;

(5) The total amount of revenue received from

dispensing organizations that share a premises or majority

ownership with an infuser; and

(6) An analysis of revenue generated from taxation,

licensing, and other fees for the State, including

recommendations to change the tax rate applied.

(b) The Department of Agriculture shall submit to the

General Assembly and Governor a report, by September 30 of each

year, that does not disclose any information identifying

information about cultivation centers, craft growers, infuser

organizations, transporting organizations, or dispensing

organizations, but does contain, at a minimum, all of the

following information for the previous fiscal year:

(1) The number of licenses issued to cultivation

centers, craft growers, infusers, and transporters by

license type, and, in counties with more than 3,000,000

residents, by zip code;

(2) The total number of cultivation centers, craft

growers, infusers, and transporters by license type that

are Social Equity Applicants or minority persons, women, or

persons with disabilities as those terms are defined in the

Business Enterprise for Minorities, Women, and Persons

with Disabilities Act;

(3) The total amount of revenue received from

cultivation centers, craft growers, infusers, and

transporters, separated by license types and source of

revenue;

(4) The total amount of revenue received from craft

growers and infusers that share a premises or majority

ownership with a dispensing organization;

(5) The total amount of revenue received from craft

growers that share a premises or majority ownership with an

infuser, but do not share a premises or ownership with a

dispensary;

(6) The total amount of revenue received from infusers

that share a premises or majority ownership with a craft

grower, but do not share a premises or ownership with a

dispensary;

(7) The total amount of revenue received from craft

growers that share a premises or majority ownership with a

dispensing organization, but do not share a premises or

ownership with an infuser;

(8) The total amount of revenue received from infusers

that share a premises or majority ownership with a

dispensing organization, but do not share a premises or

ownership with a craft grower;

(9) The total amount of revenue received from

transporters; and

(10) An analysis of revenue generated from taxation,

licensing, and other fees for the State, including

recommendations to change the tax rate applied.

(c) The Department of State Police shall submit to the

General Assembly and Governor a report, by September 30 of each

year that contains, at a minimum, all of the following

information for the previous fiscal year:

(1) The effect of regulation and taxation of cannabis

on law enforcement resources;

(2) The impact of regulation and taxation of cannabis

on highway safety and rates of impaired driving, where

impairment was determined based on failure of a field

sobriety test;

(3) The available and emerging methods for detecting

the metabolites for delta-9-tetrahydrocannabinol in bodily

fluids, including, without limitation, blood and saliva;

(4) The effectiveness of current DUI laws and

recommendations for improvements to policy to better

ensure safe highways and fair laws.

(d) The Adult Use Cannabis Health Advisory Committee shall

submit to the General Assembly and Governor a report, by

September 30 of each year, that does not disclose any

identifying information about any individuals, but does

contain, at a minimum:

(1) Self-reported youth cannabis use, as published in

the most recent Illinois Youth Survey available;

(2) Self-reported adult cannabis use, as published in

the most recent Behavioral Risk Factor Surveillance Survey

available;

(3) Hospital room admissions and hospital utilization

rates caused by cannabis consumption, including the

presence or detection of other drugs;

(4) Overdoses of cannabis and poison control data,

including the presence of other drugs that may have

contributed;

(5) Incidents of impaired driving caused by the

consumption of cannabis or cannabis products, including

the presence of other drugs or alcohol that may have

contributed to the impaired driving;

(6) Prevalence of infants born testing positive for

cannabis or delta-9-tetrahydrocannabinol, including

demographic and racial information on which infants are

tested;

(7) Public perceptions of use and risk of harm;

(8) Revenue collected from cannabis taxation and how

that revenue was used;

(9) Cannabis retail licenses granted and locations;

(10) Cannabis-related arrests; and

(11) The number of individuals completing required bud

tender training.

(e) Each agency or committee submitting reports under this

Section may consult with one another in the preparation of each

report.

Section 55-85. Medical cannabis.

(a) Nothing in this Act shall be construed to limit any

privileges or rights of a medical cannabis patient including

minor patients, primary caregiver, medical cannabis

cultivation center, or medical cannabis dispensing

organization under the Compassionate Use of Medical Cannabis

Pilot Program Act, and where there is conflict between this Act

and the Compassionate Use of Medical Cannabis Pilot Program Act

as they relate to medical cannabis patients, the Compassionate

Use of Medical Cannabis Pilot Program Act shall prevail.

(b) Dispensary locations that obtain an Early Approval

Adult Use Dispensary Organization License or an Adult Use

Dispensary Organization License in accordance with this Act at

the same location as a medical cannabis dispensing organization

registered under the Compassionate Use of Medical Cannabis

Pilot Program Act shall maintain an inventory of medical

cannabis and medical cannabis products on a monthly basis that

is substantially similar in variety and quantity to the

products offered at the dispensary during the 6-month period

immediately before the effective date of this Act.

(c) Beginning June 30, 2020, the Department of Agriculture

shall make a quarterly determination whether inventory

requirements established for dispensaries in subsection (b)

should be adjusted due to changing patient need.

Section 55-90. Home rule preemption. Except as otherwise

provided in this Act, the regulation and licensing of the

activities described in this Act are exclusive powers and

functions of the State. Except as otherwise provided in this

Act, a unit of local government, including a home rule unit,

may not regulate or license the activities described in this

Act. This Section is a denial and limitation of home rule

powers and functions under subsection (h) of Section 6 of

Article VII of the Illinois Constitution.

Section 55-95. Conflict of interest. A person is ineligible

to apply for, hold, or own financial or voting interest in any

cannabis business license under this Act if, within a 2-year

period from the effective date of this Act, the person or his

or her spouse or immediately family member was a member of the

General Assembly or a State employee at an agency that

regulates cannabis business establishment license holders who

participated personally and substantially in the award of

licenses under this Act. A person who violates this Section

shall be guilty under subsection (b) of Section 50-5 of the

State Officials and Employees Ethics Act.

ARTICLE 60.

CANNABIS CULTIVATION PRIVILEGE TAX

Section 60-1. Short title. This Article may be referred to

as the Cannabis Cultivation Privilege Tax Law.

Section 60-5. Definitions. In this Article:

"Cannabis" has the meaning given to that term in Article 1

of this Act, except that it does not include cannabis that is

subject to tax under the Compassionate Use of Medical Cannabis

Pilot Program Act.

"Craft grower" has the meaning given to that term in

Article 1 of this Act.

"Cultivation center" has the meaning given to that term in

Article 1 of this Act.

"Cultivator" or "taxpayer" means a cultivation center or

craft grower who is subject to tax under this Article.

"Department" means the Department of Revenue.

"Director" means the Director of Revenue.

"Dispensing organization" or "dispensary" has the meaning

given to that term in Article 1 of this Act.

"Gross receipts" from the sales of cannabis by a cultivator

means the total selling price or the amount of such sales, as

defined in this Article. In the case of charges and time sales,

the amount thereof shall be included only when payments are

received by the cultivator.

"Person" means a natural individual, firm, partnership,

association, joint stock company, joint adventure, public or

private corporation, limited liability company, or a receiver,

executor, trustee, guardian, or other representative appointed

by order of any court.

"Infuser" means "infuser organization" or "infuser" as

defined in Article 1 of this Act.

"Selling price" or "amount of sale" means the consideration

for a sale valued in money whether received in money or

otherwise, including cash, credits, property, and services,

and shall be determined without any deduction on account of the

cost of the property sold, the cost of materials used, labor or

service cost, or any other expense whatsoever, but does not

include separately stated charges identified on the invoice by

cultivators to reimburse themselves for their tax liability

under this Article.

Section 60-10. Tax imposed.

(a) Beginning September 1, 2019, a tax is imposed upon the

privilege of cultivating cannabis at the rate of 7% of the

gross receipts from the first sale of cannabis by a cultivator.

The sale of any product that contains any amount of cannabis or

any derivative thereof is subject to the tax under this Section

on the full selling price of the product. The Department may

determine the selling price of the cannabis when the seller and

purchaser are affiliated persons, when the sale and purchase of

cannabis is not an arm's length transaction, or when cannabis

is transferred by a craft grower to the craft grower's

dispensing organization or infuser or processing organization

and a value is not established for the cannabis. The value

determined by the Department shall be commensurate with the

actual price received for products of like quality, character,

and use in the area. If there are no sales of cannabis of like

quality, character, and use in the same area, then the

Department shall establish a reasonable value based on sales of

products of like quality, character, and use in other areas of

the State, taking into consideration any other relevant

factors.

(b) The Cannabis Cultivation Privilege Tax imposed under

this Article is solely the responsibility of the cultivator who

makes the first sale and is not the responsibility of a

subsequent purchaser, a dispensing organization, or an

infuser. Persons subject to the tax imposed under this Article

may, however, reimburse themselves for their tax liability

hereunder by separately stating reimbursement for their tax

liability as an additional charge.

(c) The tax imposed under this Article shall be in addition

to all other occupation, privilege, or excise taxes imposed by

the State of Illinois or by any unit of local government.

Section 60-15. Registration of cultivators. Every

cultivator and craft grower subject to the tax under this

Article shall apply to the Department of Revenue for a

certificate of registration under this Article. All

applications for registration under this Article shall be made

by electronic means in the form and manner required by the

Department. For that purpose, the provisions of Section 2a of

the Retailers' Occupation Tax Act are incorporated into this

Article to the extent not inconsistent with this Article. In

addition, no certificate of registration shall be issued under

this Article unless the applicant is licensed under this Act.

Section 60-20. Return and payment of cannabis cultivation

privilege tax. Each person who is required to pay the tax

imposed by this Article shall make a return to the Department

on or before the 20th day of each month for the preceding

calendar month stating the following:

(1) the taxpayer's name;

(2) the address of the taxpayer's principal place of

business and the address of the principal place of business

(if that is a different address) from which the taxpayer is

engaged in the business of cultivating cannabis subject to

tax under this Article;

(3) the total amount of receipts received by the

taxpayer during the preceding calendar month from sales of

cannabis subject to tax under this Article by the taxpayer

during the preceding calendar month;

(4) the total amount received by the taxpayer during

the preceding calendar month on charge and time sales of

cannabis subject to tax imposed under this Article by the

taxpayer before the month for which the return is filed;

(5) deductions allowed by law;

(6) gross receipts that were received by the taxpayer

during the preceding calendar month and upon the basis of

which the tax is imposed;

(7) the amount of tax due;

(8) the signature of the taxpayer; and

(9) any other information as the Department may

reasonably require.

All returns required to be filed and payments required to

be made under this Article shall be by electronic means.

Taxpayers who demonstrate hardship in paying electronically

may petition the Department to waive the electronic payment

requirement. The Department may require a separate return for

the tax under this Article or combine the return for the tax

under this Article with the return for the tax under the

Compassionate Use of Medical Cannabis Pilot Program Act. If the

return for the tax under this Article is combined with the

return for tax under the Compassionate Use of Medical Cannabis

Pilot Program Act, then the vendor's discount allowed under

this Section and any cap on that discount shall apply to the

combined return. The taxpayer making the return provided for in

this Section shall also pay to the Department, in accordance

with this Section, the amount of tax imposed by this Article,

less a discount of 1.75%, but not to exceed $1,000 per return

period, which is allowed to reimburse the taxpayer for the

expenses incurred in keeping records, collecting tax,

preparing and filing returns, remitting the tax, and supplying

data to the Department upon request. No discount may be claimed

by a taxpayer on returns not timely filed and for taxes not

timely remitted. No discount may be claimed by a taxpayer for

any return that is not filed electronically. No discount may be

claimed by a taxpayer for any payment that is not made

electronically, unless a waiver has been granted under this

Section. Any amount that is required to be shown or reported on

any return or other document under this Article shall, if the

amount is not a whole-dollar amount, be increased to the

nearest whole-dollar amount if the fractional part of a dollar

is $0.50 or more and decreased to the nearest whole-dollar

amount if the fractional part of a dollar is less than $0.50.

If a total amount of less than $1 is payable, refundable, or

creditable, the amount shall be disregarded if it is less than

$0.50 and shall be increased to $1 if it is $0.50 or more.

Notwithstanding any other provision of this Article concerning

the time within which a taxpayer may file a return, any such

taxpayer who ceases to engage in the kind of business that

makes the person responsible for filing returns under this

Article shall file a final return under this Article with the

Department within one month after discontinuing such business.

Each taxpayer under this Article shall make estimated

payments to the Department on or before the 7th, 15th, 22nd,

and last day of the month during which tax liability to the

Department is incurred. The payments shall be in an amount not

less than the lower of either 22.5% of the taxpayer's actual

tax liability for the month or 25% of the taxpayer's actual tax

liability for the same calendar month of the preceding year.

The amount of the quarter-monthly payments shall be credited

against the final tax liability of the taxpayer's return for

that month. If any quarter-monthly payment is not paid at the

time or in the amount required by this Section, then the

taxpayer shall be liable for penalties and interest on the

difference between the minimum amount due as a payment and the

amount of the quarter-monthly payment actually and timely paid,

except insofar as the taxpayer has previously made payments for

that month to the Department in excess of the minimum payments

previously due as provided in this Section.

If any payment provided for in this Section exceeds the

taxpayer's liabilities under this Article, as shown on an

original monthly return, the Department shall, if requested by

the taxpayer, issue to the taxpayer a credit memorandum no

later than 30 days after the date of payment. The credit

evidenced by the credit memorandum may be assigned by the

taxpayer to a similar taxpayer under this Act, in accordance

with reasonable rules to be prescribed by the Department. If no

such request is made, the taxpayer may credit the excess

payment against tax liability subsequently to be remitted to

the Department under this Act, in accordance with reasonable

rules prescribed by the Department. If the Department

subsequently determines that all or any part of the credit

taken was not actually due to the taxpayer, the taxpayer's

discount shall be reduced, if necessary, to reflect the

difference between the credit taken and that actually due, and

that taxpayer shall be liable for penalties and interest on the

difference.

If a taxpayer fails to sign a return within 30 days after

the proper notice and demand for signature by the Department is

received by the taxpayer, the return shall be considered valid

and any amount shown to be due on the return shall be deemed

assessed.

Section 60-25. Infuser information returns. If it is deemed

necessary for the administration of this Article, the

Department may adopt rules that require infusers to file

information returns regarding the sale of cannabis by infusers

to dispensaries. The Department may require infusers to file

all information returns by electronic means.

Section 60-30. Deposit of proceeds. All moneys received by

the Department under this Article shall be deposited into the

Cannabis Regulation Fund.

Section 60-35. Department administration and enforcement.

The Department shall have full power to administer and enforce

this Article, to collect all taxes, penalties, and interest due

hereunder, to dispose of taxes, penalties and interest so

collected in the manner hereinafter provided, and to determine

all rights to credit memoranda, arising on account of the

erroneous payment of tax, penalty, or interest hereunder. In

the administration of, and compliance with, this Article, the

Department and persons who are subject to this Article shall

have the same rights, remedies, privileges, immunities,

powers, and duties, and be subject to the same conditions,

restrictions, limitations, penalties, and definitions of

terms, and employ the same modes of procedure, as are

prescribed in Sections 1, 2-40, 2a, 2b, 2i, 4, 5, 5a, 5b, 5c,

5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a,

12, and 13 of the Retailers' Occupation Tax Act and all of the

provisions of the Uniform Penalty and Interest Act, which are

not inconsistent with this Article, as fully as if those

provisions were set forth herein. For purposes of this Section,

references in the Retailers' Occupation Tax Act to a "sale of

tangible personal property at retail" mean the "sale of

cannabis by a cultivator".

Section 60-40. Invoices. Every sales invoice for cannabis

issued by a cultivator to a cannabis business establishment

shall contain the cultivator's certificate of registration

number assigned under this Article, date, invoice number,

purchaser's name and address, selling price, amount of

cannabis, concentrate, or cannabis-infused product, and any

other reasonable information as the Department may provide by

rule is necessary for the administration of this Article.

Cultivators shall retain the invoices for inspection by the

Department.

Section 60-45. Rules. The Department may adopt rules

related to the enforcement of this Article.

ARTICLE 65.

CANNABIS PURCHASER EXCISE TAX

Section 65-1. Short title. This Article may be referred to

as the Cannabis Purchaser Excise Tax Law.

Section 65-5. Definitions. In this Article:

"Adjusted delta-9-tetrahydrocannabinol level" means, for a

delta-9-tetrahydrocannabinol dominant product, the sum of the

percentage of delta-9-tetrahydrocannabinol plus .877

multiplied by the percentage of tetrahydrocannabinolic acid.

"Cannabis" has the meaning given to that term in Article 1

of this Act, except that it does not include cannabis that is

subject to tax under the Compassionate Use of Medical Cannabis

Pilot Program Act.

"Cannabis-infused product" means beverage food, oils,

ointments, tincture, topical formulation, or another product

containing cannabis that is not intended to be smoked.

"Cannabis retailer" means a dispensing organization that

sells cannabis for use and not for resale.

"Craft grower" has the meaning given to that term in

Article 1 of this Act.

"Department" means the Department of Revenue.

"Director" means the Director of Revenue.

"Dispensing organization" or "dispensary" has the meaning

given to that term in Article 1 of this Act.

"Person" means a natural individual, firm, partnership,

association, joint stock company, joint adventure, public or

private corporation, limited liability company, or a receiver,

executor, trustee, guardian, or other representative appointed

by order of any court.

"Infuser organization" or "infuser" means a facility

operated by an organization or business that is licensed by the

Department of Agriculture to directly incorporate cannabis or

cannabis concentrate into a product formulation to produce a

cannabis-infused product.

"Purchase price" means the consideration paid for a

purchase of cannabis, valued in money, whether received in

money or otherwise, including cash, gift cards, credits, and

property and shall be determined without any deduction on

account of the cost of materials used, labor or service costs,

or any other expense whatsoever. However, "purchase price" does

not include consideration paid for:

(1) any charge for a payment that is not honored by a

financial institution;

(2) any finance or credit charge, penalty or charge for

delayed payment, or discount for prompt payment; and

(3) any amounts added to a purchaser's bill because of

charges made under the tax imposed by this Article, the

Municipal Cannabis Retailers' Occupation Tax Law, the

County Cannabis Retailers' Occupation Tax Law, the

Retailers' Occupation Tax Act, the Use Tax Act, the Service

Occupation Tax Act, the Service Use Tax Act, or any locally

imposed occupation or use tax.

"Purchaser" means a person who acquires cannabis for a

valuable consideration.

"Taxpayer" means a cannabis retailer who is required to

collect the tax imposed under this Article.

Section 65-10. Tax imposed.

(a) Beginning January 1, 2020, a tax is imposed upon

purchasers for the privilege of using cannabis at the following

rates:

(1) Any cannabis, other than a cannabis-infused

product, with an adjusted delta-9-tetrahydrocannabinol

level at or below 35% shall be taxed at a rate of 10% of the

purchase price;

(2) Any cannabis, other than a cannabis-infused

product, with an adjusted delta-9-tetrahydrocannabinol

level above 35% shall be taxed at a rate of 25% of the

purchase price; and

(3) A cannabis-infused product shall be taxed at a rate

of 20% of the purchase price.

(b) The purchase of any product that contains any amount of

cannabis or any derivative thereof is subject to the tax under

subsection (a) of this Section on the full purchase price of

the product.

(c) The tax imposed under this Section is not imposed on

cannabis that is subject to tax under the Compassionate Use of

Medical Cannabis Pilot Program Act. The tax imposed by this

Section is not imposed with respect to any transaction in

interstate commerce, to the extent the transaction may not,

under the Constitution and statutes of the United States, be

made the subject of taxation by this State.

(d) The tax imposed under this Article shall be in addition

to all other occupation, privilege, or excise taxes imposed by

the State of Illinois or by any municipal corporation or

political subdivision thereof.

(e) The tax imposed under this Article shall not be imposed

on any purchase by a purchaser if the cannabis retailer is

prohibited by federal or State Constitution, treaty,

convention, statute, or court decision from collecting the tax

from the purchaser.

Section 65-11. Bundling of taxable and nontaxable items;

prohibition; taxation. If a cannabis retailer sells cannabis,

concentrate, or cannabis-infused products in combination or

bundled with items that are not subject to tax under this Act

for one price in violation of the prohibition on this activity

under Section 15-70, then the tax under this Act is imposed on

the purchase price of the entire bundled product.

Section 65-15. Collection of tax.

(a) The tax imposed by this Article shall be collected from

the purchaser by the cannabis retailer at the rate stated in

Section 65-10 with respect to cannabis sold by the cannabis

retailer to the purchaser, and shall be remitted to the

Department as provided in Section 65-30. All sales to a

purchaser who is not a cardholder under the Compassionate Use

of Medical Cannabis Pilot Program Act are presumed subject to

tax collection. Cannabis retailers shall collect the tax from

purchasers by adding the tax to the amount of the purchase

price received from the purchaser for selling cannabis to the

purchaser. The tax imposed by this Article shall, when

collected, be stated as a distinct item separate and apart from

the purchase price of the cannabis.

(b) If a cannabis retailer collects Cannabis Purchaser

Excise Tax measured by a purchase price that is not subject to

Cannabis Purchaser Excise Tax, or if a cannabis retailer, in

collecting Cannabis Purchaser Excise Tax measured by a purchase

price that is subject to tax under this Act, collects more from

the purchaser than the required amount of the Cannabis

Purchaser Excise Tax on the transaction, the purchaser shall

have a legal right to claim a refund of that amount from the

cannabis retailer. If, however, that amount is not refunded to

the purchaser for any reason, the cannabis retailer is liable

to pay that amount to the Department.

(c) Any person purchasing cannabis subject to tax under

this Article as to which there has been no charge made to him

or her of the tax imposed by Section 65-10 shall make payment

of the tax imposed by Section 65-10 in the form and manner

provided by the Department not later than the 20th day of the

month following the month of purchase of the cannabis.

Section 65-20. Registration of cannabis retailers. Every

cannabis retailer required to collect the tax under this

Article shall apply to the Department for a certificate of

registration under this Article. All applications for

registration under this Article shall be made by electronic

means in the form and manner required by the Department. For

that purpose, the provisions of Section 2a of the Retailers'

Occupation Tax Act are incorporated into this Article to the

extent not inconsistent with this Article. In addition, no

certificate of registration shall be issued under this Article

unless the applicant is licensed under this Act.

Section 65-25. Tax collected as debt owed to State. Any

cannabis retailer required to collect the tax imposed by this

Article shall be liable to the Department for the tax, whether

or not the tax has been collected by the cannabis retailer, and

any such tax shall constitute a debt owed by the cannabis

retailer to this State. To the extent that a cannabis retailer

required to collect the tax imposed by this Act has actually

collected that tax, the tax is held in trust for the benefit of

the Department.

Section 65-30. Return and payment of tax by cannabis

retailer. Each cannabis retailer that is required or authorized

to collect the tax imposed by this Article shall make a return

to the Department, by electronic means, on or before the 20th

day of each month for the preceding calendar month stating the

following:

(1) the cannabis retailer's name;

(2) the address of the cannabis retailer's principal

place of business and the address of the principal place of

business (if that is a different address) from which the

cannabis retailer engaged in the business of selling

cannabis subject to tax under this Article;

(3) the total purchase price received by the cannabis

retailer for cannabis subject to tax under this Article;

(4) the amount of tax due at each rate;

(5) the signature of the cannabis retailer; and

(6) any other information as the Department may

reasonably require.

All returns required to be filed and payments required to

be made under this Article shall be by electronic means.

Cannabis retailers who demonstrate hardship in paying

electronically may petition the Department to waive the

electronic payment requirement.

Any amount that is required to be shown or reported on any

return or other document under this Article shall, if the

amount is not a whole-dollar amount, be increased to the

nearest whole-dollar amount if the fractional part of a dollar

is $0.50 or more and decreased to the nearest whole-dollar

amount if the fractional part of a dollar is less than $0.50.

If a total amount of less than $1 is payable, refundable, or

creditable, the amount shall be disregarded if it is less than

$0.50 and shall be increased to $1 if it is $0.50 or more.

The cannabis retailer making the return provided for in

this Section shall also pay to the Department, in accordance

with this Section, the amount of tax imposed by this Article,

less a discount of 1.75%, but not to exceed $1,000 per return

period, which is allowed to reimburse the cannabis retailer for

the expenses incurred in keeping records, collecting tax,

preparing and filing returns, remitting the tax, and supplying

data to the Department upon request. No discount may be claimed

by a cannabis retailer on returns not timely filed and for

taxes not timely remitted. No discount may be claimed by a

taxpayer for any return that is not filed electronically. No

discount may be claimed by a taxpayer for any payment that is

not made electronically, unless a waiver has been granted under

this Section.

Notwithstanding any other provision of this Article

concerning the time within which a cannabis retailer may file a

return, any such cannabis retailer who ceases to engage in the

kind of business that makes the person responsible for filing

returns under this Article shall file a final return under this

Article with the Department within one month after

discontinuing the business.

Each cannabis retailer shall make estimated payments to the

Department on or before the 7th, 15th, 22nd, and last day of

the month during which tax liability to the Department is

incurred. The payments shall be in an amount not less than the

lower of either 22.5% of the cannabis retailer's actual tax

liability for the month or 25% of the cannabis retailer's

actual tax liability for the same calendar month of the

preceding year. The amount of the quarter-monthly payments

shall be credited against the final tax liability of the

cannabis retailer's return for that month. If any such

quarter-monthly payment is not paid at the time or in the

amount required by this Section, then the cannabis retailer

shall be liable for penalties and interest on the difference

between the minimum amount due as a payment and the amount of

the quarter-monthly payment actually and timely paid, except

insofar as the cannabis retailer has previously made payments

for that month to the Department in excess of the minimum

payments previously due as provided in this Section.

If any payment provided for in this Section exceeds the

taxpayer's liabilities under this Article, as shown on an

original monthly return, the Department shall, if requested by

the taxpayer, issue to the taxpayer a credit memorandum no

later than 30 days after the date of payment. The credit

evidenced by the credit memorandum may be assigned by the

taxpayer to a similar taxpayer under this Article, in

accordance with reasonable rules to be prescribed by the

Department. If no such request is made, the taxpayer may credit

the excess payment against tax liability subsequently to be

remitted to the Department under this Article, in accordance

with reasonable rules prescribed by the Department. If the

Department subsequently determines that all or any part of the

credit taken was not actually due to the taxpayer, the

taxpayer's discount shall be reduced, if necessary, to reflect

the difference between the credit taken and that actually due,

and that taxpayer shall be liable for penalties and interest on

the difference. If a cannabis retailer fails to sign a return

within 30 days after the proper notice and demand for signature

by the Department is received by the cannabis retailer, the

return shall be considered valid and any amount shown to be due

on the return shall be deemed assessed.

Section 65-35. Deposit of proceeds. All moneys received by

the Department under this Article shall be paid into the

Cannabis Regulation Fund.

Section 65-36. Recordkeeping; books and records.

(a) Every retailer of cannabis, whether or not the retailer

has obtained a certificate of registration under Section 65-20,

shall keep complete and accurate records of cannabis held,

purchased, sold, or otherwise disposed of, and shall preserve

and keep all invoices, bills of lading, sales records, and

copies of bills of sale, returns, and other pertinent papers

and documents relating to the purchase, sale, or disposition of

cannabis. Such records need not be maintained on the licensed

premises but must be maintained in the State of Illinois.

However, all original invoices or copies thereof covering

purchases of cannabis must be retained on the licensed premises

for a period of 90 days after such purchase, unless the

Department has granted a waiver in response to a written

request in cases where records are kept at a central business

location within the State of Illinois. The Department shall

adopt rules regarding the eligibility for a waiver, revocation

of a waiver, and requirements and standards for maintenance and

accessibility of records located at a central location under a

waiver provided under this Section.

(b) Books, records, papers, and documents that are required

by this Article to be kept shall, at all times during the usual

business hours of the day, be subject to inspection by the

Department or its duly authorized agents and employees. The

books, records, papers, and documents for any period with

respect to which the Department is authorized to issue a notice

of tax liability shall be preserved until the expiration of

that period.

Section 65-38. Violations and penalties.

(a) When the amount due is under $300, any retailer of

cannabis who fails to file a return, willfully fails or refuses

to make any payment to the Department of the tax imposed by

this Article, or files a fraudulent return, or any officer or

agent of a corporation engaged in the business of selling

cannabis to purchasers located in this State who signs a

fraudulent return filed on behalf of the corporation, or any

accountant or other agent who knowingly enters false

information on the return of any taxpayer under this Article is

guilty of a Class 4 felony.

(b) When the amount due is $300 or more, any retailer of

cannabis who files, or causes to be filed, a fraudulent return,

or any officer or agent of a corporation engaged in the

business of selling cannabis to purchasers located in this

State who files or causes to be filed or signs or causes to be

signed a fraudulent return filed on behalf of the corporation,

or any accountant or other agent who knowingly enters false

information on the return of any taxpayer under this Article is

guilty of a Class 3 felony.

(c) Any person who violates any provision of Section 65-20,

fails to keep books and records as required under this Article,

or willfully violates a rule of the Department for the

administration and enforcement of this Article is guilty of a

Class 4 felony. A person commits a separate offense on each day

that he or she engages in business in violation of Section

65-20 or a rule of the Department for the administration and

enforcement of this Article. If a person fails to produce the

books and records for inspection by the Department upon

request, a prima facie presumption shall arise that the person

has failed to keep books and records as required under this

Article. A person who is unable to rebut this presumption is in

violation of this Article and is subject to the penalties

provided in this Section.

(d) Any person who violates any provision of Sections

65-20, fails to keep books and records as required under this

Article, or willfully violates a rule of the Department for the

administration and enforcement of this Article, is guilty of a

business offense and may be fined up to $5,000. If a person

fails to produce books and records for inspection by the

Department upon request, a prima facie presumption shall arise

that the person has failed to keep books and records as

required under this Article. A person who is unable to rebut

this presumption is in violation of this Article and is subject

to the penalties provided in this Section. A person commits a

separate offense on each day that he or she engages in business

in violation of Section 65-20.

(e) Any taxpayer or agent of a taxpayer who with the intent

to defraud purports to make a payment due to the Department by

issuing or delivering a check or other order upon a real or

fictitious depository for the payment of money, knowing that it

will not be paid by the depository, is guilty of a deceptive

practice in violation of Section 17-1 of the Criminal Code of

2012.

(f) Any person who fails to keep books and records or fails

to produce books and records for inspection, as required by

Section 65-36, is liable to pay to the Department, for deposit

in the Tax Compliance and Administration Fund, a penalty of

$1,000 for the first failure to keep books and records or

failure to produce books and records for inspection, as

required by Section 65-36, and $3,000 for each subsequent

failure to keep books and records or failure to produce books

and records for inspection, as required by Section 65-36.

(g) Any person who knowingly acts as a retailer of cannabis

in this State without first having obtained a certificate of

registration to do so in compliance with Section 65-20 of this

Article shall be guilty of a Class 4 felony.

(h) A person commits the offense of tax evasion under this

Article when he or she knowingly attempts in any manner to

evade or defeat the tax imposed on him or her or on any other

person, or the payment thereof, and he or she commits an

affirmative act in furtherance of the evasion. As used in this

Section, "affirmative act in furtherance of the evasion" means

an act designed in whole or in part to (i) conceal,

misrepresent, falsify, or manipulate any material fact or (ii)

tamper with or destroy documents or materials related to a

person's tax liability under this Article. Two or more acts of

sales tax evasion may be charged as a single count in any

indictment, information, or complaint and the amount of tax

deficiency may be aggregated for purposes of determining the

amount of tax that is attempted to be or is evaded and the

period between the first and last acts may be alleged as the

date of the offense.

(1) When the amount of tax, the assessment or payment

of which is attempted to be or is evaded is less than $500,

a person is guilty of a Class 4 felony.

(2) When the amount of tax, the assessment or payment

of which is attempted to be or is evaded is $500 or more

but less than $10,000, a person is guilty of a Class 3

felony.

(3) When the amount of tax, the assessment or payment

of which is attempted to be or is evaded is $10,000 or more

but less than $100,000, a person is guilty of a Class 2

felony.

(4) When the amount of tax, the assessment or payment

of which is attempted to be or is evaded is $100,000 or

more, a person is guilty of a Class 1 felony.

Any person who knowingly sells, purchases, installs,

transfers, possesses, uses, or accesses any automated sales

suppression device, zapper, or phantom-ware in this State is

guilty of a Class 3 felony.

As used in this Section:

"Automated sales suppression device" or "zapper" means a

software program that falsifies the electronic records of an

electronic cash register or other point-of-sale system,

including, but not limited to, transaction data and transaction

reports. The term includes the software program, any device

that carries the software program, or an Internet link to the

software program.

"Phantom-ware" means a hidden programming option embedded

in the operating system of an electronic cash register or

hardwired into an electronic cash register that can be used to

create a second set of records or that can eliminate or

manipulate transaction records in an electronic cash register.

"Electronic cash register" means a device that keeps a

register or supporting documents through the use of an

electronic device or computer system designed to record

transaction data for the purpose of computing, compiling, or

processing retail sales transaction data in any manner.

"Transaction data" includes: items purchased by a

purchaser; the price of each item; a taxability determination

for each item; a segregated tax amount for each taxed item; the

amount of cash or credit tendered; the net amount returned to

the customer in change; the date and time of the purchase; the

name, address, and identification number of the vendor; and the

receipt or invoice number of the transaction.

"Transaction report" means a report that documents,

without limitation, the sales, taxes, or fees collected, media

totals, and discount voids at an electronic cash register and

that is printed on a cash register tape at the end of a day or

shift, or a report that documents every action at an electronic

cash register and is stored electronically.

A prosecution for any act in violation of this Section may

be commenced at any time within 5 years of the commission of

that act.

(i) The Department may adopt rules to administer the

penalties under this Section.

(j) Any person whose principal place of business is in this

State and who is charged with a violation under this Section

shall be tried in the county where his or her principal place

of business is located unless he or she asserts a right to be

tried in another venue.

(k) Except as otherwise provided in subsection (h), a

prosecution for a violation described in this Section may be

commenced within 3 years after the commission of the act

constituting the violation.

Section 65-40. Department administration and enforcement.

The Department shall have full power to administer and enforce

this Article, to collect all taxes and penalties due hereunder,

to dispose of taxes and penalties so collected in the manner

hereinafter provided, and to determine all rights to credit

memoranda, arising on account of the erroneous payment of tax

or penalty hereunder.

In the administration of, and compliance with, this

Article, the Department and persons who are subject to this

Article shall have the same rights, remedies, privileges,

immunities, powers, and duties, and be subject to the same

conditions, restrictions, limitations, penalties, and

definitions of terms, and employ the same modes of procedure,

as are prescribed in Sections 2, 3-55, 3a, 4, 5, 7, 10a, 11,

12a, 12b, 14, 15, 19, 20, 21, and 22 of the Use Tax Act and

Sections 1, 2-12, 2b, 4 (except that the time limitation

provisions shall run from the date when the tax is due rather

than from the date when gross receipts are received), 5 (except

that the time limitation provisions on the issuance of notices

of tax liability shall run from the date when the tax is due

rather than from the date when gross receipts are received and

except that in the case of a failure to file a return required

by this Act, no notice of tax liability shall be issued on and

after each July 1 and January 1 covering tax due with that

return during any month or period more than 6 years before that

July 1 or January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g,

5h, 5j, 6d, 7, 8, 9, 10, 11, and 12 of the Retailers'

Occupation Tax Act and all of the provisions of the Uniform

Penalty and Interest Act, which are not inconsistent with this

Article, as fully as if those provisions were set forth herein.

References in the incorporated Sections of the Retailers'

Occupation Tax Act and the Use Tax Act to retailers, to

sellers, or to persons engaged in the business of selling

tangible personal property mean cannabis retailers when used in

this Article. References in the incorporated Sections to sales

of tangible personal property mean sales of cannabis subject to

tax under this Article when used in this Article.

Section 65-41. Arrest; search and seizure without warrant.

Any duly authorized employee of the Department: (i) may arrest

without warrant any person committing in his or her presence a

violation of any of the provisions of this Article; (ii) may

without a search warrant inspect all cannabis located in any

place of business; (iii) may seize any cannabis in the

possession of the retailer in violation of this Act; and (iv)

may seize any cannabis on which the tax imposed by Article 60

of this Act has not been paid. The cannabis so seized is

subject to confiscation and forfeiture as provided in Sections

65-42 and 65-43.

Section 65-42. Seizure and forfeiture. After seizing any

cannabis as provided in Section 65-41, the Department must hold

a hearing and determine whether the retailer was properly

registered to sell the cannabis at the time of its seizure by

the Department. The Department shall give not less than 20

days' notice of the time and place of the hearing to the owner

of the cannabis, if the owner is known, and also to the person

in whose possession the cannabis was found, if that person is

known and if the person in possession is not the owner of the

cannabis. If neither the owner nor the person in possession of

the cannabis is known, the Department must cause publication of

the time and place of the hearing to be made at least once in

each week for 3 weeks successively in a newspaper of general

circulation in the county where the hearing is to be held.

If, as the result of the hearing, the Department determines

that the retailer was not properly registered at the time the

cannabis was seized, the Department must enter an order

declaring the cannabis confiscated and forfeited to the State,

to be held by the Department for disposal by it as provided in

Section 65-43. The Department must give notice of the order to

the owner of the cannabis, if the owner is known, and also to

the person in whose possession the cannabis was found, if that

person is known and if the person in possession is not the

owner of the cannabis. If neither the owner nor the person in

possession of the cannabis is known, the Department must cause

publication of the order to be made at least once in each week

for 3 weeks successively in a newspaper of general circulation

in the county where the hearing was held.

Section 65-43. Search warrant; issuance and return;

process; confiscation of cannabis; forfeitures.

(a) If a peace officer of this State or any duly authorized

officer or employee of the Department has reason to believe

that any violation of this Article or a rule of the Department

for the administration and enforcement of this Article has

occurred and that the person violating this Article or rule has

in that person's possession any cannabis in violation of this

Article or a rule of the Department for the administration and

enforcement of this Article, that peace officer or officer or

employee of the Department may file or cause to be filed his or

her complaint in writing, verified by affidavit, with any court

within whose jurisdiction the premises to be searched are

situated, stating the facts upon which the belief is founded,

the premises to be searched, and the property to be seized, and

procure a search warrant and execute that warrant. Upon the

execution of the search warrant, the peace officer, or officer

or employee of the Department, executing the search warrant

shall make due return of the warrant to the court issuing the

warrant, together with an inventory of the property taken under

the warrant. The court must then issue process against the

owner of the property if the owner is known; otherwise, process

must be issued against the person in whose possession the

property is found, if that person is known. In case of

inability to serve process upon the owner or the person in

possession of the property at the time of its seizure, notice

of the proceedings before the court must be given in the same

manner as required by the law governing cases of attachment.

Upon the return of the process duly served or upon the posting

or publishing of notice made, as appropriate, the court or

jury, if a jury is demanded, shall proceed to determine whether

the property so seized was held or possessed in violation of

this Article or a rule of the Department for the administration

and enforcement of this Article. If a violation is found,

judgment shall be entered confiscating the property and

forfeiting it to the State and ordering its delivery to the

Department. In addition, the court may tax and assess the costs

of the proceedings.

(b) When any cannabis has been declared forfeited to the

State by the Department, as provided in Section 65-42 and this

Section, and when all proceedings for the judicial review of

the Department's decision have terminated, the Department

shall, to the extent that its decision is sustained on review,

destroy or maintain and use such cannabis in an undercover

capacity.

(c) The Department may, before any destruction of cannabis,

permit the true holder of trademark rights in the cannabis to

inspect such cannabis in order to assist the Department in any

investigation regarding such cannabis.

Section 65-45. Cannabis retailers; purchase and possession

of cannabis. Cannabis retailers shall purchase cannabis for

resale only from cannabis business establishments as

authorized by this Act.

Section 65-50. Rulemaking. The Department may adopt rules

in accordance with the Illinois Administrative Procedure Act

and prescribe forms relating to the administration and

enforcement of this Article as it deems appropriate.

ARTICLE 900.

AMENDATORY PROVISIONS

Section 900-5. The Illinois Administrative Procedure Act

is amended by changing Section 5-45 as follows:

(5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)

Sec. 5-45. Emergency rulemaking.

(a) "Emergency" means the existence of any situation that

any agency finds reasonably constitutes a threat to the public

interest, safety, or welfare.

(b) If any agency finds that an emergency exists that

requires adoption of a rule upon fewer days than is required by

Section 5-40 and states in writing its reasons for that

finding, the agency may adopt an emergency rule without prior

notice or hearing upon filing a notice of emergency rulemaking

with the Secretary of State under Section 5-70. The notice

shall include the text of the emergency rule and shall be

published in the Illinois Register. Consent orders or other

court orders adopting settlements negotiated by an agency may

be adopted under this Section. Subject to applicable

constitutional or statutory provisions, an emergency rule

becomes effective immediately upon filing under Section 5-65 or

at a stated date less than 10 days thereafter. The agency's

finding and a statement of the specific reasons for the finding

shall be filed with the rule. The agency shall take reasonable

and appropriate measures to make emergency rules known to the

persons who may be affected by them.

(c) An emergency rule may be effective for a period of not

longer than 150 days, but the agency's authority to adopt an

identical rule under Section 5-40 is not precluded. No

emergency rule may be adopted more than once in any 24-month

period, except that this limitation on the number of emergency

rules that may be adopted in a 24-month period does not apply

to (i) emergency rules that make additions to and deletions

from the Drug Manual under Section 5-5.16 of the Illinois

Public Aid Code or the generic drug formulary under Section

3.14 of the Illinois Food, Drug and Cosmetic Act, (ii)

emergency rules adopted by the Pollution Control Board before

July 1, 1997 to implement portions of the Livestock Management

Facilities Act, (iii) emergency rules adopted by the Illinois

Department of Public Health under subsections (a) through (i)

of Section 2 of the Department of Public Health Act when

necessary to protect the public's health, (iv) emergency rules

adopted pursuant to subsection (n) of this Section, (v)

emergency rules adopted pursuant to subsection (o) of this

Section, or (vi) emergency rules adopted pursuant to subsection

(c-5) of this Section. Two or more emergency rules having

substantially the same purpose and effect shall be deemed to be

a single rule for purposes of this Section.

(c-5) To facilitate the maintenance of the program of group

health benefits provided to annuitants, survivors, and retired

employees under the State Employees Group Insurance Act of

1971, rules to alter the contributions to be paid by the State,

annuitants, survivors, retired employees, or any combination

of those entities, for that program of group health benefits,

shall be adopted as emergency rules. The adoption of those

rules shall be considered an emergency and necessary for the

public interest, safety, and welfare.

(d) In order to provide for the expeditious and timely

implementation of the State's fiscal year 1999 budget,

emergency rules to implement any provision of Public Act 90-587

or 90-588 or any other budget initiative for fiscal year 1999

may be adopted in accordance with this Section by the agency

charged with administering that provision or initiative,

except that the 24-month limitation on the adoption of

emergency rules and the provisions of Sections 5-115 and 5-125

do not apply to rules adopted under this subsection (d). The

adoption of emergency rules authorized by this subsection (d)

shall be deemed to be necessary for the public interest,

safety, and welfare.

(e) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2000 budget,

emergency rules to implement any provision of Public Act 91-24

or any other budget initiative for fiscal year 2000 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (e). The adoption of

emergency rules authorized by this subsection (e) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(f) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2001 budget,

emergency rules to implement any provision of Public Act 91-712

or any other budget initiative for fiscal year 2001 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (f). The adoption of

emergency rules authorized by this subsection (f) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(g) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2002 budget,

emergency rules to implement any provision of Public Act 92-10

or any other budget initiative for fiscal year 2002 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (g). The adoption of

emergency rules authorized by this subsection (g) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(h) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2003 budget,

emergency rules to implement any provision of Public Act 92-597

or any other budget initiative for fiscal year 2003 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (h). The adoption of

emergency rules authorized by this subsection (h) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(i) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2004 budget,

emergency rules to implement any provision of Public Act 93-20

or any other budget initiative for fiscal year 2004 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (i). The adoption of

emergency rules authorized by this subsection (i) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(j) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2005 budget as provided under the Fiscal Year 2005 Budget

Implementation (Human Services) Act, emergency rules to

implement any provision of the Fiscal Year 2005 Budget

Implementation (Human Services) Act may be adopted in

accordance with this Section by the agency charged with

administering that provision, except that the 24-month

limitation on the adoption of emergency rules and the

provisions of Sections 5-115 and 5-125 do not apply to rules

adopted under this subsection (j). The Department of Public Aid

may also adopt rules under this subsection (j) necessary to

administer the Illinois Public Aid Code and the Children's

Health Insurance Program Act. The adoption of emergency rules

authorized by this subsection (j) shall be deemed to be

necessary for the public interest, safety, and welfare.

(k) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2006 budget, emergency rules to implement any provision of

Public Act 94-48 or any other budget initiative for fiscal year

2006 may be adopted in accordance with this Section by the

agency charged with administering that provision or

initiative, except that the 24-month limitation on the adoption

of emergency rules and the provisions of Sections 5-115 and

5-125 do not apply to rules adopted under this subsection (k).

The Department of Healthcare and Family Services may also adopt

rules under this subsection (k) necessary to administer the

Illinois Public Aid Code, the Senior Citizens and Persons with

Disabilities Property Tax Relief Act, the Senior Citizens and

Disabled Persons Prescription Drug Discount Program Act (now

the Illinois Prescription Drug Discount Program Act), and the

Children's Health Insurance Program Act. The adoption of

emergency rules authorized by this subsection (k) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(l) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2007 budget, the Department of Healthcare and Family Services

may adopt emergency rules during fiscal year 2007, including

rules effective July 1, 2007, in accordance with this

subsection to the extent necessary to administer the

Department's responsibilities with respect to amendments to

the State plans and Illinois waivers approved by the federal

Centers for Medicare and Medicaid Services necessitated by the

requirements of Title XIX and Title XXI of the federal Social

Security Act. The adoption of emergency rules authorized by

this subsection (l) shall be deemed to be necessary for the

public interest, safety, and welfare.

(m) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2008 budget, the Department of Healthcare and Family Services

may adopt emergency rules during fiscal year 2008, including

rules effective July 1, 2008, in accordance with this

subsection to the extent necessary to administer the

Department's responsibilities with respect to amendments to

the State plans and Illinois waivers approved by the federal

Centers for Medicare and Medicaid Services necessitated by the

requirements of Title XIX and Title XXI of the federal Social

Security Act. The adoption of emergency rules authorized by

this subsection (m) shall be deemed to be necessary for the

public interest, safety, and welfare.

(n) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2010 budget, emergency rules to implement any provision of

Public Act 96-45 or any other budget initiative authorized by

the 96th General Assembly for fiscal year 2010 may be adopted

in accordance with this Section by the agency charged with

administering that provision or initiative. The adoption of

emergency rules authorized by this subsection (n) shall be

deemed to be necessary for the public interest, safety, and

welfare. The rulemaking authority granted in this subsection

(n) shall apply only to rules promulgated during Fiscal Year

2010.

(o) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2011 budget, emergency rules to implement any provision of

Public Act 96-958 or any other budget initiative authorized by

the 96th General Assembly for fiscal year 2011 may be adopted

in accordance with this Section by the agency charged with

administering that provision or initiative. The adoption of

emergency rules authorized by this subsection (o) is deemed to

be necessary for the public interest, safety, and welfare. The

rulemaking authority granted in this subsection (o) applies

only to rules promulgated on or after July 1, 2010 (the

effective date of Public Act 96-958) through June 30, 2011.

(p) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 97-689,

emergency rules to implement any provision of Public Act 97-689

may be adopted in accordance with this subsection (p) by the

agency charged with administering that provision or

initiative. The 150-day limitation of the effective period of

emergency rules does not apply to rules adopted under this

subsection (p), and the effective period may continue through

June 30, 2013. The 24-month limitation on the adoption of

emergency rules does not apply to rules adopted under this

subsection (p). The adoption of emergency rules authorized by

this subsection (p) is deemed to be necessary for the public

interest, safety, and welfare.

(q) In order to provide for the expeditious and timely

implementation of the provisions of Articles 7, 8, 9, 11, and

12 of Public Act 98-104, emergency rules to implement any

provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104

may be adopted in accordance with this subsection (q) by the

agency charged with administering that provision or

initiative. The 24-month limitation on the adoption of

emergency rules does not apply to rules adopted under this

subsection (q). The adoption of emergency rules authorized by

this subsection (q) is deemed to be necessary for the public

interest, safety, and welfare.

(r) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 98-651,

emergency rules to implement Public Act 98-651 may be adopted

in accordance with this subsection (r) by the Department of

Healthcare and Family Services. The 24-month limitation on the

adoption of emergency rules does not apply to rules adopted

under this subsection (r). The adoption of emergency rules

authorized by this subsection (r) is deemed to be necessary for

the public interest, safety, and welfare.

(s) In order to provide for the expeditious and timely

implementation of the provisions of Sections 5-5b.1 and 5A-2 of

the Illinois Public Aid Code, emergency rules to implement any

provision of Section 5-5b.1 or Section 5A-2 of the Illinois

Public Aid Code may be adopted in accordance with this

subsection (s) by the Department of Healthcare and Family

Services. The rulemaking authority granted in this subsection

(s) shall apply only to those rules adopted prior to July 1,

2015. Notwithstanding any other provision of this Section, any

emergency rule adopted under this subsection (s) shall only

apply to payments made for State fiscal year 2015. The adoption

of emergency rules authorized by this subsection (s) is deemed

to be necessary for the public interest, safety, and welfare.

(t) In order to provide for the expeditious and timely

implementation of the provisions of Article II of Public Act

99-6, emergency rules to implement the changes made by Article

II of Public Act 99-6 to the Emergency Telephone System Act may

be adopted in accordance with this subsection (t) by the

Department of State Police. The rulemaking authority granted in

this subsection (t) shall apply only to those rules adopted

prior to July 1, 2016. The 24-month limitation on the adoption

of emergency rules does not apply to rules adopted under this

subsection (t). The adoption of emergency rules authorized by

this subsection (t) is deemed to be necessary for the public

interest, safety, and welfare.

(u) In order to provide for the expeditious and timely

implementation of the provisions of the Burn Victims Relief

Act, emergency rules to implement any provision of the Act may

be adopted in accordance with this subsection (u) by the

Department of Insurance. The rulemaking authority granted in

this subsection (u) shall apply only to those rules adopted

prior to December 31, 2015. The adoption of emergency rules

authorized by this subsection (u) is deemed to be necessary for

the public interest, safety, and welfare.

(v) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 99-516,

emergency rules to implement Public Act 99-516 may be adopted

in accordance with this subsection (v) by the Department of

Healthcare and Family Services. The 24-month limitation on the

adoption of emergency rules does not apply to rules adopted

under this subsection (v). The adoption of emergency rules

authorized by this subsection (v) is deemed to be necessary for

the public interest, safety, and welfare.

(w) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 99-796,

emergency rules to implement the changes made by Public Act

99-796 may be adopted in accordance with this subsection (w) by

the Adjutant General. The adoption of emergency rules

authorized by this subsection (w) is deemed to be necessary for

the public interest, safety, and welfare.

(x) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 99-906,

emergency rules to implement subsection (i) of Section 16-115D,

subsection (g) of Section 16-128A, and subsection (a) of

Section 16-128B of the Public Utilities Act may be adopted in

accordance with this subsection (x) by the Illinois Commerce

Commission. The rulemaking authority granted in this

subsection (x) shall apply only to those rules adopted within

180 days after June 1, 2017 (the effective date of Public Act

99-906). The adoption of emergency rules authorized by this

subsection (x) is deemed to be necessary for the public

interest, safety, and welfare.

(y) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-23,

emergency rules to implement the changes made by Public Act

100-23 to Section 4.02 of the Illinois Act on the Aging,

Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,

Section 55-30 of the Alcoholism and Other Drug Abuse and

Dependency Act, and Sections 74 and 75 of the Mental Health and

Developmental Disabilities Administrative Act may be adopted

in accordance with this subsection (y) by the respective

Department. The adoption of emergency rules authorized by this

subsection (y) is deemed to be necessary for the public

interest, safety, and welfare.

(z) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-554,

emergency rules to implement the changes made by Public Act

100-554 to Section 4.7 of the Lobbyist Registration Act may be

adopted in accordance with this subsection (z) by the Secretary

of State. The adoption of emergency rules authorized by this

subsection (z) is deemed to be necessary for the public

interest, safety, and welfare.

(aa) In order to provide for the expeditious and timely

initial implementation of the changes made to Articles 5, 5A,

12, and 14 of the Illinois Public Aid Code under the provisions

of Public Act 100-581, the Department of Healthcare and Family

Services may adopt emergency rules in accordance with this

subsection (aa). The 24-month limitation on the adoption of

emergency rules does not apply to rules to initially implement

the changes made to Articles 5, 5A, 12, and 14 of the Illinois

Public Aid Code adopted under this subsection (aa). The

adoption of emergency rules authorized by this subsection (aa)

is deemed to be necessary for the public interest, safety, and

welfare.

(bb) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-587,

emergency rules to implement the changes made by Public Act

100-587 to Section 4.02 of the Illinois Act on the Aging,

Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,

subsection (b) of Section 55-30 of the Alcoholism and Other

Drug Abuse and Dependency Act, Section 5-104 of the Specialized

Mental Health Rehabilitation Act of 2013, and Section 75 and

subsection (b) of Section 74 of the Mental Health and

Developmental Disabilities Administrative Act may be adopted

in accordance with this subsection (bb) by the respective

Department. The adoption of emergency rules authorized by this

subsection (bb) is deemed to be necessary for the public

interest, safety, and welfare.

(cc) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-587,

emergency rules may be adopted in accordance with this

subsection (cc) to implement the changes made by Public Act

100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois

Pension Code by the Board created under Article 14 of the Code;

Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by

the Board created under Article 15 of the Code; and Sections

16-190.5 and 16-190.6 of the Illinois Pension Code by the Board

created under Article 16 of the Code. The adoption of emergency

rules authorized by this subsection (cc) is deemed to be

necessary for the public interest, safety, and welfare.

(dd) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-864,

emergency rules to implement the changes made by Public Act

100-864 to Section 3.35 of the Newborn Metabolic Screening Act

may be adopted in accordance with this subsection (dd) by the

Secretary of State. The adoption of emergency rules authorized

by this subsection (dd) is deemed to be necessary for the

public interest, safety, and welfare.

(ee) In order to provide for the expeditious and timely

implementation of the provisions of this amendatory Act of the

100th General Assembly, emergency rules implementing the

Illinois Underground Natural Gas Storage Safety Act may be

adopted in accordance with this subsection by the Department of

Natural Resources. The adoption of emergency rules authorized

by this subsection is deemed to be necessary for the public

interest, safety, and welfare.

(ff) In order to provide for the expeditious and timely

implementation of the provisions of this amendatory Act of the

101st General Assembly, emergency rules may be adopted by the

Department of Labor in accordance with this subsection (ff) to

implement the changes made by this amendatory Act of the 101st

General Assembly to the Minimum Wage Law. The adoption of

emergency rules authorized by this subsection (ff) is deemed to

be necessary for the public interest, safety, and welfare.

(gg) In order to provide for the expeditious and timely

implementation of the Cannabis Regulation and Tax Act and this

amendatory Act of the 101st General Assembly, the Department of

Revenue, the Department of Public Health, the Department of

Agriculture, the Department of State Police, and the Department

of Financial and Professional Regulation may adopt emergency

rules in accordance with this subsection (gg). The rulemaking

authority granted in this subsection (gg) shall apply only to

rules adopted before December 31, 2021. Notwithstanding the

provisions of subsection (c), emergency rules adopted under

this subsection (gg) shall be effective for 180 days. The

adoption of emergency rules authorized by this subsection (gg)

is deemed to be necessary for the public interest, safety, and

welfare.

(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;

100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.

6-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;

100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 101-1, eff.

2-19-19.)

Section 900-8. The Freedom of Information Act is amended by

changing Section 7.5 as follows:

(5 ILCS 140/7.5)

Sec. 7.5. Statutory exemptions. To the extent provided for

by the statutes referenced below, the following shall be exempt

from inspection and copying:

(a) All information determined to be confidential

under Section 4002 of the Technology Advancement and

Development Act.

(b) Library circulation and order records identifying

library users with specific materials under the Library

Records Confidentiality Act.

(c) Applications, related documents, and medical

records received by the Experimental Organ Transplantation

Procedures Board and any and all documents or other records

prepared by the Experimental Organ Transplantation

Procedures Board or its staff relating to applications it

has received.

(d) Information and records held by the Department of

Public Health and its authorized representatives relating

to known or suspected cases of sexually transmissible

disease or any information the disclosure of which is

restricted under the Illinois Sexually Transmissible

Disease Control Act.

(e) Information the disclosure of which is exempted

under Section 30 of the Radon Industry Licensing Act.

(f) Firm performance evaluations under Section 55 of

the Architectural, Engineering, and Land Surveying

Qualifications Based Selection Act.

(g) Information the disclosure of which is restricted

and exempted under Section 50 of the Illinois Prepaid

Tuition Act.

(h) Information the disclosure of which is exempted

under the State Officials and Employees Ethics Act, and

records of any lawfully created State or local inspector

general's office that would be exempt if created or

obtained by an Executive Inspector General's office under

that Act.

(i) Information contained in a local emergency energy

plan submitted to a municipality in accordance with a local

emergency energy plan ordinance that is adopted under

Section 11-21.5-5 of the Illinois Municipal Code.

(j) Information and data concerning the distribution

of surcharge moneys collected and remitted by carriers

under the Emergency Telephone System Act.

(k) Law enforcement officer identification information

or driver identification information compiled by a law

enforcement agency or the Department of Transportation

under Section 11-212 of the Illinois Vehicle Code.

(l) Records and information provided to a residential

health care facility resident sexual assault and death

review team or the Executive Council under the Abuse

Prevention Review Team Act.

(m) Information provided to the predatory lending

database created pursuant to Article 3 of the Residential

Real Property Disclosure Act, except to the extent

authorized under that Article.

(n) Defense budgets and petitions for certification of

compensation and expenses for court appointed trial

counsel as provided under Sections 10 and 15 of the Capital

Crimes Litigation Act. This subsection (n) shall apply

until the conclusion of the trial of the case, even if the

prosecution chooses not to pursue the death penalty prior

to trial or sentencing.

(o) Information that is prohibited from being

disclosed under Section 4 of the Illinois Health and

Hazardous Substances Registry Act.

(p) Security portions of system safety program plans,

investigation reports, surveys, schedules, lists, data, or

information compiled, collected, or prepared by or for the

Regional Transportation Authority under Section 2.11 of

the Regional Transportation Authority Act or the St. Clair

County Transit District under the Bi-State Transit Safety

Act.

(q) Information prohibited from being disclosed by the

Personnel Record Records Review Act.

(r) Information prohibited from being disclosed by the

Illinois School Student Records Act.

(s) Information the disclosure of which is restricted

under Section 5-108 of the Public Utilities Act.

(t) All identified or deidentified health information

in the form of health data or medical records contained in,

stored in, submitted to, transferred by, or released from

the Illinois Health Information Exchange, and identified

or deidentified health information in the form of health

data and medical records of the Illinois Health Information

Exchange in the possession of the Illinois Health

Information Exchange Authority due to its administration

of the Illinois Health Information Exchange. The terms

"identified" and "deidentified" shall be given the same

meaning as in the Health Insurance Portability and

Accountability Act of 1996, Public Law 104-191, or any

subsequent amendments thereto, and any regulations

promulgated thereunder.

(u) Records and information provided to an independent

team of experts under the Developmental Disability and

Mental Health Safety Act (also known as Brian's Law).

(v) Names and information of people who have applied

for or received Firearm Owner's Identification Cards under

the Firearm Owners Identification Card Act or applied for

or received a concealed carry license under the Firearm

Concealed Carry Act, unless otherwise authorized by the

Firearm Concealed Carry Act; and databases under the

Firearm Concealed Carry Act, records of the Concealed Carry

Licensing Review Board under the Firearm Concealed Carry

Act, and law enforcement agency objections under the

Firearm Concealed Carry Act.

(w) Personally identifiable information which is

exempted from disclosure under subsection (g) of Section

19.1 of the Toll Highway Act.

(x) Information which is exempted from disclosure

under Section 5-1014.3 of the Counties Code or Section

8-11-21 of the Illinois Municipal Code.

(y) Confidential information under the Adult

Protective Services Act and its predecessor enabling

statute, the Elder Abuse and Neglect Act, including

information about the identity and administrative finding

against any caregiver of a verified and substantiated

decision of abuse, neglect, or financial exploitation of an

eligible adult maintained in the Registry established

under Section 7.5 of the Adult Protective Services Act.

(z) Records and information provided to a fatality

review team or the Illinois Fatality Review Team Advisory

Council under Section 15 of the Adult Protective Services

Act.

(aa) Information which is exempted from disclosure

under Section 2.37 of the Wildlife Code.

(bb) Information which is or was prohibited from

disclosure by the Juvenile Court Act of 1987.

(cc) Recordings made under the Law Enforcement

Officer-Worn Body Camera Act, except to the extent

authorized under that Act.

(dd) Information that is prohibited from being

disclosed under Section 45 of the Condominium and Common

Interest Community Ombudsperson Act.

(ee) Information that is exempted from disclosure

under Section 30.1 of the Pharmacy Practice Act.

(ff) Information that is exempted from disclosure

under the Revised Uniform Unclaimed Property Act.

(gg) Information that is prohibited from being

disclosed under Section 7-603.5 of the Illinois Vehicle

Code.

(hh) Records that are exempt from disclosure under

Section 1A-16.7 of the Election Code.

(ii) Information which is exempted from disclosure

under Section 2505-800 of the Department of Revenue Law of

the Civil Administrative Code of Illinois.

(jj) Information and reports that are required to be

submitted to the Department of Labor by registering day and

temporary labor service agencies but are exempt from

disclosure under subsection (a-1) of Section 45 of the Day

and Temporary Labor Services Act.

(kk) Information prohibited from disclosure under the

Seizure and Forfeiture Reporting Act.

(ll) Information the disclosure of which is restricted

and exempted under Section 5-30.8 of the Illinois Public

Aid Code.

(mm) (ll) Records that are exempt from disclosure under

Section 4.2 of the Crime Victims Compensation Act.

(nn) (ll) Information that is exempt from disclosure

under Section 70 of the Higher Education Student Assistance

Act.

(oo) Information that is exempt from disclosure under

the Cannabis Regulation and Tax Act.

(Source: P.A. 99-78, eff. 7-20-15; 99-298, eff. 8-6-15; 99-352,

eff. 1-1-16; 99-642, eff. 7-28-16; 99-776, eff. 8-12-16;

99-863, eff. 8-19-16; 100-20, eff. 7-1-17; 100-22, eff. 1-1-18;

100-201, eff. 8-18-17; 100-373, eff. 1-1-18; 100-464, eff.

8-28-17; 100-465, eff. 8-31-17; 100-512, eff. 7-1-18; 100-517,

eff. 6-1-18; 100-646, eff. 7-27-18; 100-690, eff. 1-1-19;

100-863, eff. 8-14-18; 100-887, eff. 8-14-18; revised

10-12-18.)

Section 900-10. The Department of Revenue Law of the Civil

Administrative Code of Illinois is amended by changing Section

2505-210 as follows:

(20 ILCS 2505/2505-210) (was 20 ILCS 2505/39c-1)

Sec. 2505-210. Electronic funds transfer.

(a) The Department may provide means by which persons

having a tax liability under any Act administered by the

Department may use electronic funds transfer to pay the tax

liability.

(b) Mandatory payment by electronic funds transfer. Except

as otherwise provided in a tax Act administered by the

Department Beginning on October 1, 2002, and through September

30, 2010, a taxpayer who has an annual tax liability of

$200,000 or more shall make all payments of that tax to the

Department by electronic funds transfer. Beginning October 1,

2010, a taxpayer (other than an individual taxpayer) who has an

annual tax liability of $20,000 or more and an individual

taxpayer who has an annual tax liability of $200,000 or more

shall make all payments of that tax to the Department by

electronic funds transfer. Before August 1 of each year,

beginning in 2002, the Department shall notify all taxpayers

required to make payments by electronic funds transfer. All

taxpayers required to make payments by electronic funds

transfer shall make those payments for a minimum of one year

beginning on October 1. For purposes of this subsection (b),

the term "annual tax liability" means, except as provided in

subsections (c) and (d) of this Section, the sum of the

taxpayer's liabilities under a tax Act administered by the

Department for the immediately preceding calendar year.

(c) For purposes of subsection (b), the term "annual tax

liability" means, for a taxpayer that incurs a tax liability

under the Retailers' Occupation Tax Act, Service Occupation Tax

Act, Use Tax Act, Service Use Tax Act, or any other State or

local occupation or use tax law that is administered by the

Department, the sum of the taxpayer's liabilities under the

Retailers' Occupation Tax Act, Service Occupation Tax Act, Use

Tax Act, Service Use Tax Act, and all other State and local

occupation and use tax laws administered by the Department for

the immediately preceding calendar year.

(d) For purposes of subsection (b), the term "annual tax

liability" means, for a taxpayer that incurs an Illinois income

tax liability, the greater of:

(1) the amount of the taxpayer's tax liability under

Article 7 of the Illinois Income Tax Act for the

immediately preceding calendar year; or

(2) the taxpayer's estimated tax payment obligation

under Article 8 of the Illinois Income Tax Act for the

immediately preceding calendar year.

(e) The Department shall adopt such rules as are necessary

to effectuate a program of electronic funds transfer and the

requirements of this Section.

(Source: P.A. 100-1171, eff. 1-4-19.)

Section 900-12. The Criminal Identification Act is amended

by changing Section 5.2 as follows:

(20 ILCS 2630/5.2)

Sec. 5.2. Expungement, sealing, and immediate sealing.

(a) General Provisions.

(1) Definitions. In this Act, words and phrases have

the meanings set forth in this subsection, except when a

particular context clearly requires a different meaning.

(A) The following terms shall have the meanings

ascribed to them in the Unified Code of Corrections,

730 ILCS 5/5-1-2 through 5/5-1-22:

(i) Business Offense (730 ILCS 5/5-1-2),

(ii) Charge (730 ILCS 5/5-1-3),

(iii) Court (730 ILCS 5/5-1-6),

(iv) Defendant (730 ILCS 5/5-1-7),

(v) Felony (730 ILCS 5/5-1-9),

(vi) Imprisonment (730 ILCS 5/5-1-10),

(vii) Judgment (730 ILCS 5/5-1-12),

(viii) Misdemeanor (730 ILCS 5/5-1-14),

(ix) Offense (730 ILCS 5/5-1-15),

(x) Parole (730 ILCS 5/5-1-16),

(xi) Petty Offense (730 ILCS 5/5-1-17),

(xii) Probation (730 ILCS 5/5-1-18),

(xiii) Sentence (730 ILCS 5/5-1-19),

(xiv) Supervision (730 ILCS 5/5-1-21), and

(xv) Victim (730 ILCS 5/5-1-22).

(B) As used in this Section, "charge not initiated

by arrest" means a charge (as defined by 730 ILCS

5/5-1-3) brought against a defendant where the

defendant is not arrested prior to or as a direct

result of the charge.

(C) "Conviction" means a judgment of conviction or

sentence entered upon a plea of guilty or upon a

verdict or finding of guilty of an offense, rendered by

a legally constituted jury or by a court of competent

jurisdiction authorized to try the case without a jury.

An order of supervision successfully completed by the

petitioner is not a conviction. An order of qualified

probation (as defined in subsection (a)(1)(J))

successfully completed by the petitioner is not a

conviction. An order of supervision or an order of

qualified probation that is terminated

unsatisfactorily is a conviction, unless the

unsatisfactory termination is reversed, vacated, or

modified and the judgment of conviction, if any, is

reversed or vacated.

(D) "Criminal offense" means a petty offense,

business offense, misdemeanor, felony, or municipal

ordinance violation (as defined in subsection

(a)(1)(H)). As used in this Section, a minor traffic

offense (as defined in subsection (a)(1)(G)) shall not

be considered a criminal offense.

(E) "Expunge" means to physically destroy the

records or return them to the petitioner and to

obliterate the petitioner's name from any official

index or public record, or both. Nothing in this Act

shall require the physical destruction of the circuit

court file, but such records relating to arrests or

charges, or both, ordered expunged shall be impounded

as required by subsections (d)(9)(A)(ii) and

(d)(9)(B)(ii).

(F) As used in this Section, "last sentence" means

the sentence, order of supervision, or order of

qualified probation (as defined by subsection

(a)(1)(J)), for a criminal offense (as defined by

subsection (a)(1)(D)) that terminates last in time in

any jurisdiction, regardless of whether the petitioner

has included the criminal offense for which the

sentence or order of supervision or qualified

probation was imposed in his or her petition. If

multiple sentences, orders of supervision, or orders

of qualified probation terminate on the same day and

are last in time, they shall be collectively considered

the "last sentence" regardless of whether they were

ordered to run concurrently.

(G) "Minor traffic offense" means a petty offense,

business offense, or Class C misdemeanor under the

Illinois Vehicle Code or a similar provision of a

municipal or local ordinance.

(G-5) "Minor Cannabis Offense" means a violation

of Section 4 or 5 of the Cannabis Control Act

concerning not more than 30 grams of any substance

containing cannabis, provided the violation did not

include a penalty enhancement under Section 7 of the

Cannabis Control Act and is not associated with an

arrest, conviction or other disposition for a violent

crime as defined in subsection (c) of Section 3 of the

Rights of Crime Victims and Witnesses Act.

(H) "Municipal ordinance violation" means an

offense defined by a municipal or local ordinance that

is criminal in nature and with which the petitioner was

charged or for which the petitioner was arrested and

released without charging.

(I) "Petitioner" means an adult or a minor

prosecuted as an adult who has applied for relief under

this Section.

(J) "Qualified probation" means an order of

probation under Section 10 of the Cannabis Control Act,

Section 410 of the Illinois Controlled Substances Act,

Section 70 of the Methamphetamine Control and

Community Protection Act, Section 5-6-3.3 or 5-6-3.4

of the Unified Code of Corrections, Section

12-4.3(b)(1) and (2) of the Criminal Code of 1961 (as

those provisions existed before their deletion by

Public Act 89-313), Section 10-102 of the Illinois

Alcoholism and Other Drug Dependency Act, Section

40-10 of the Substance Use Disorder Act, or Section 10

of the Steroid Control Act. For the purpose of this

Section, "successful completion" of an order of

qualified probation under Section 10-102 of the

Illinois Alcoholism and Other Drug Dependency Act and

Section 40-10 of the Substance Use Disorder Act means

that the probation was terminated satisfactorily and

the judgment of conviction was vacated.

(K) "Seal" means to physically and electronically

maintain the records, unless the records would

otherwise be destroyed due to age, but to make the

records unavailable without a court order, subject to

the exceptions in Sections 12 and 13 of this Act. The

petitioner's name shall also be obliterated from the

official index required to be kept by the circuit court

clerk under Section 16 of the Clerks of Courts Act, but

any index issued by the circuit court clerk before the

entry of the order to seal shall not be affected.

(L) "Sexual offense committed against a minor"

includes but is not limited to the offenses of indecent

solicitation of a child or criminal sexual abuse when

the victim of such offense is under 18 years of age.

(M) "Terminate" as it relates to a sentence or

order of supervision or qualified probation includes

either satisfactory or unsatisfactory termination of

the sentence, unless otherwise specified in this

Section. A sentence is terminated notwithstanding any

outstanding financial legal obligation.

(2) Minor Traffic Offenses. Orders of supervision or

convictions for minor traffic offenses shall not affect a

petitioner's eligibility to expunge or seal records

pursuant to this Section.

(2.5) Commencing 180 days after July 29, 2016 (the

effective date of Public Act 99-697), the law enforcement

agency issuing the citation shall automatically expunge,

on or before January 1 and July 1 of each year, the law

enforcement records of a person found to have committed a

civil law violation of subsection (a) of Section 4 of the

Cannabis Control Act or subsection (c) of Section 3.5 of

the Drug Paraphernalia Control Act in the law enforcement

agency's possession or control and which contains the final

satisfactory disposition which pertain to the person

issued a citation for that offense. The law enforcement

agency shall provide by rule the process for access,

review, and to confirm the automatic expungement by the law

enforcement agency issuing the citation. Commencing 180

days after July 29, 2016 (the effective date of Public Act

99-697), the clerk of the circuit court shall expunge, upon

order of the court, or in the absence of a court order on

or before January 1 and July 1 of each year, the court

records of a person found in the circuit court to have

committed a civil law violation of subsection (a) of

Section 4 of the Cannabis Control Act or subsection (c) of

Section 3.5 of the Drug Paraphernalia Control Act in the

clerk's possession or control and which contains the final

satisfactory disposition which pertain to the person

issued a citation for any of those offenses.

(3) Exclusions. Except as otherwise provided in

subsections (b)(5), (b)(6), (b)(8), (e), (e-5), and (e-6)

of this Section, the court shall not order:

(A) the sealing or expungement of the records of

arrests or charges not initiated by arrest that result

in an order of supervision for or conviction of: (i)

any sexual offense committed against a minor; (ii)

Section 11-501 of the Illinois Vehicle Code or a

similar provision of a local ordinance; or (iii)

Section 11-503 of the Illinois Vehicle Code or a

similar provision of a local ordinance, unless the

arrest or charge is for a misdemeanor violation of

subsection (a) of Section 11-503 or a similar provision

of a local ordinance, that occurred prior to the

offender reaching the age of 25 years and the offender

has no other conviction for violating Section 11-501 or

11-503 of the Illinois Vehicle Code or a similar

provision of a local ordinance.

(B) the sealing or expungement of records of minor

traffic offenses (as defined in subsection (a)(1)(G)),

unless the petitioner was arrested and released

without charging.

(C) the sealing of the records of arrests or

charges not initiated by arrest which result in an

order of supervision or a conviction for the following

offenses:

(i) offenses included in Article 11 of the

Criminal Code of 1961 or the Criminal Code of 2012

or a similar provision of a local ordinance, except

Section 11-14 and a misdemeanor violation of

Section 11-30 of the Criminal Code of 1961 or the

Criminal Code of 2012, or a similar provision of a

local ordinance;

(ii) Section 11-1.50, 12-3.4, 12-15, 12-30,

26-5, or 48-1 of the Criminal Code of 1961 or the

Criminal Code of 2012, or a similar provision of a

local ordinance;

(iii) Sections 12-3.1 or 12-3.2 of the

Criminal Code of 1961 or the Criminal Code of 2012,

or Section 125 of the Stalking No Contact Order

Act, or Section 219 of the Civil No Contact Order

Act, or a similar provision of a local ordinance;

(iv) Class A misdemeanors or felony offenses

under the Humane Care for Animals Act; or

(v) any offense or attempted offense that

would subject a person to registration under the

Sex Offender Registration Act.

(D) (blank).

(b) Expungement.

(1) A petitioner may petition the circuit court to

expunge the records of his or her arrests and charges not

initiated by arrest when each arrest or charge not

initiated by arrest sought to be expunged resulted in: (i)

acquittal, dismissal, or the petitioner's release without

charging, unless excluded by subsection (a)(3)(B); (ii) a

conviction which was vacated or reversed, unless excluded

by subsection (a)(3)(B); (iii) an order of supervision and

such supervision was successfully completed by the

petitioner, unless excluded by subsection (a)(3)(A) or

(a)(3)(B); or (iv) an order of qualified probation (as

defined in subsection (a)(1)(J)) and such probation was

successfully completed by the petitioner.

(1.5) When a petitioner seeks to have a record of

arrest expunged under this Section, and the offender has

been convicted of a criminal offense, the State's Attorney

may object to the expungement on the grounds that the

records contain specific relevant information aside from

the mere fact of the arrest.

(2) Time frame for filing a petition to expunge.

(A) When the arrest or charge not initiated by

arrest sought to be expunged resulted in an acquittal,

dismissal, the petitioner's release without charging,

or the reversal or vacation of a conviction, there is

no waiting period to petition for the expungement of

such records.

(B) When the arrest or charge not initiated by

arrest sought to be expunged resulted in an order of

supervision, successfully completed by the petitioner,

the following time frames will apply:

(i) Those arrests or charges that resulted in

orders of supervision under Section 3-707, 3-708,

3-710, or 5-401.3 of the Illinois Vehicle Code or a

similar provision of a local ordinance, or under

Section 11-1.50, 12-3.2, or 12-15 of the Criminal

Code of 1961 or the Criminal Code of 2012, or a

similar provision of a local ordinance, shall not

be eligible for expungement until 5 years have

passed following the satisfactory termination of

the supervision.

(i-5) Those arrests or charges that resulted

in orders of supervision for a misdemeanor

violation of subsection (a) of Section 11-503 of

the Illinois Vehicle Code or a similar provision of

a local ordinance, that occurred prior to the

offender reaching the age of 25 years and the

offender has no other conviction for violating

Section 11-501 or 11-503 of the Illinois Vehicle

Code or a similar provision of a local ordinance

shall not be eligible for expungement until the

petitioner has reached the age of 25 years.

(ii) Those arrests or charges that resulted in

orders of supervision for any other offenses shall

not be eligible for expungement until 2 years have

passed following the satisfactory termination of

the supervision.

(C) When the arrest or charge not initiated by

arrest sought to be expunged resulted in an order of

qualified probation, successfully completed by the

petitioner, such records shall not be eligible for

expungement until 5 years have passed following the

satisfactory termination of the probation.

(3) Those records maintained by the Department for

persons arrested prior to their 17th birthday shall be

expunged as provided in Section 5-915 of the Juvenile Court

Act of 1987.

(4) Whenever a person has been arrested for or

convicted of any offense, in the name of a person whose

identity he or she has stolen or otherwise come into

possession of, the aggrieved person from whom the identity

was stolen or otherwise obtained without authorization,

upon learning of the person having been arrested using his

or her identity, may, upon verified petition to the chief

judge of the circuit wherein the arrest was made, have a

court order entered nunc pro tunc by the Chief Judge to

correct the arrest record, conviction record, if any, and

all official records of the arresting authority, the

Department, other criminal justice agencies, the

prosecutor, and the trial court concerning such arrest, if

any, by removing his or her name from all such records in

connection with the arrest and conviction, if any, and by

inserting in the records the name of the offender, if known

or ascertainable, in lieu of the aggrieved's name. The

records of the circuit court clerk shall be sealed until

further order of the court upon good cause shown and the

name of the aggrieved person obliterated on the official

index required to be kept by the circuit court clerk under

Section 16 of the Clerks of Courts Act, but the order shall

not affect any index issued by the circuit court clerk

before the entry of the order. Nothing in this Section

shall limit the Department of State Police or other

criminal justice agencies or prosecutors from listing

under an offender's name the false names he or she has

used.

(5) Whenever a person has been convicted of criminal

sexual assault, aggravated criminal sexual assault,

predatory criminal sexual assault of a child, criminal

sexual abuse, or aggravated criminal sexual abuse, the

victim of that offense may request that the State's

Attorney of the county in which the conviction occurred

file a verified petition with the presiding trial judge at

the petitioner's trial to have a court order entered to

seal the records of the circuit court clerk in connection

with the proceedings of the trial court concerning that

offense. However, the records of the arresting authority

and the Department of State Police concerning the offense

shall not be sealed. The court, upon good cause shown,

shall make the records of the circuit court clerk in

connection with the proceedings of the trial court

concerning the offense available for public inspection.

(6) If a conviction has been set aside on direct review

or on collateral attack and the court determines by clear

and convincing evidence that the petitioner was factually

innocent of the charge, the court that finds the petitioner

factually innocent of the charge shall enter an expungement

order for the conviction for which the petitioner has been

determined to be innocent as provided in subsection (b) of

Section 5-5-4 of the Unified Code of Corrections.

(7) Nothing in this Section shall prevent the

Department of State Police from maintaining all records of

any person who is admitted to probation upon terms and

conditions and who fulfills those terms and conditions

pursuant to Section 10 of the Cannabis Control Act, Section

410 of the Illinois Controlled Substances Act, Section 70

of the Methamphetamine Control and Community Protection

Act, Section 5-6-3.3 or 5-6-3.4 of the Unified Code of

Corrections, Section 12-4.3 or subdivision (b)(1) of

Section 12-3.05 of the Criminal Code of 1961 or the

Criminal Code of 2012, Section 10-102 of the Illinois

Alcoholism and Other Drug Dependency Act, Section 40-10 of

the Substance Use Disorder Act, or Section 10 of the

Steroid Control Act.

(8) If the petitioner has been granted a certificate of

innocence under Section 2-702 of the Code of Civil

Procedure, the court that grants the certificate of

innocence shall also enter an order expunging the

conviction for which the petitioner has been determined to

be innocent as provided in subsection (h) of Section 2-702

of the Code of Civil Procedure.

(c) Sealing.

(1) Applicability. Notwithstanding any other provision

of this Act to the contrary, and cumulative with any rights

to expungement of criminal records, this subsection

authorizes the sealing of criminal records of adults and of

minors prosecuted as adults. Subsection (g) of this Section

provides for immediate sealing of certain records.

(2) Eligible Records. The following records may be

sealed:

(A) All arrests resulting in release without

charging;

(B) Arrests or charges not initiated by arrest

resulting in acquittal, dismissal, or conviction when

the conviction was reversed or vacated, except as

excluded by subsection (a)(3)(B);

(C) Arrests or charges not initiated by arrest

resulting in orders of supervision, including orders

of supervision for municipal ordinance violations,

successfully completed by the petitioner, unless

excluded by subsection (a)(3);

(D) Arrests or charges not initiated by arrest

resulting in convictions, including convictions on

municipal ordinance violations, unless excluded by

subsection (a)(3);

(E) Arrests or charges not initiated by arrest

resulting in orders of first offender probation under

Section 10 of the Cannabis Control Act, Section 410 of

the Illinois Controlled Substances Act, Section 70 of

the Methamphetamine Control and Community Protection

Act, or Section 5-6-3.3 of the Unified Code of

Corrections; and

(F) Arrests or charges not initiated by arrest

resulting in felony convictions unless otherwise

excluded by subsection (a) paragraph (3) of this

Section.

(3) When Records Are Eligible to Be Sealed. Records

identified as eligible under subsection (c)(2) may be

sealed as follows:

(A) Records identified as eligible under

subsection (c)(2)(A) and (c)(2)(B) may be sealed at any

time.

(B) Except as otherwise provided in subparagraph

(E) of this paragraph (3), records identified as

eligible under subsection (c)(2)(C) may be sealed 2

years after the termination of petitioner's last

sentence (as defined in subsection (a)(1)(F)).

(C) Except as otherwise provided in subparagraph

(E) of this paragraph (3), records identified as

eligible under subsections (c)(2)(D), (c)(2)(E), and

(c)(2)(F) may be sealed 3 years after the termination

of the petitioner's last sentence (as defined in

subsection (a)(1)(F)). Convictions requiring public

registration under the Arsonist Registration Act, the

Sex Offender Registration Act, or the Murderer and

Violent Offender Against Youth Registration Act may

not be sealed until the petitioner is no longer

required to register under that relevant Act.

(D) Records identified in subsection

(a)(3)(A)(iii) may be sealed after the petitioner has

reached the age of 25 years.

(E) Records identified as eligible under

subsections (c)(2)(C), (c)(2)(D), (c)(2)(E), or

(c)(2)(F) may be sealed upon termination of the

petitioner's last sentence if the petitioner earned a

high school diploma, associate's degree, career

certificate, vocational technical certification, or

bachelor's degree, or passed the high school level Test

of General Educational Development, during the period

of his or her sentence, aftercare release, or mandatory

supervised release. This subparagraph shall apply only

to a petitioner who has not completed the same

educational goal prior to the period of his or her

sentence, aftercare release, or mandatory supervised

release. If a petition for sealing eligible records

filed under this subparagraph is denied by the court,

the time periods under subparagraph (B) or (C) shall

apply to any subsequent petition for sealing filed by

the petitioner.

(4) Subsequent felony convictions. A person may not

have subsequent felony conviction records sealed as

provided in this subsection (c) if he or she is convicted

of any felony offense after the date of the sealing of

prior felony convictions as provided in this subsection

(c). The court may, upon conviction for a subsequent felony

offense, order the unsealing of prior felony conviction

records previously ordered sealed by the court.

(5) Notice of eligibility for sealing. Upon entry of a

disposition for an eligible record under this subsection

(c), the petitioner shall be informed by the court of the

right to have the records sealed and the procedures for the

sealing of the records.

(d) Procedure. The following procedures apply to

expungement under subsections (b), (e), and (e-6) and sealing

under subsections (c) and (e-5):

(1) Filing the petition. Upon becoming eligible to

petition for the expungement or sealing of records under

this Section, the petitioner shall file a petition

requesting the expungement or sealing of records with the

clerk of the court where the arrests occurred or the

charges were brought, or both. If arrests occurred or

charges were brought in multiple jurisdictions, a petition

must be filed in each such jurisdiction. The petitioner

shall pay the applicable fee, except no fee shall be

required if the petitioner has obtained a court order

waiving fees under Supreme Court Rule 298 or it is

otherwise waived.

(1.5) County fee waiver pilot program. In a county of

3,000,000 or more inhabitants, no fee shall be required to

be paid by a petitioner if the records sought to be

expunged or sealed were arrests resulting in release

without charging or arrests or charges not initiated by

arrest resulting in acquittal, dismissal, or conviction

when the conviction was reversed or vacated, unless

excluded by subsection (a)(3)(B). The provisions of this

paragraph (1.5), other than this sentence, are inoperative

on and after January 1, 2019.

(2) Contents of petition. The petition shall be

verified and shall contain the petitioner's name, date of

birth, current address and, for each arrest or charge not

initiated by arrest sought to be sealed or expunged, the

case number, the date of arrest (if any), the identity of

the arresting authority, and such other information as the

court may require. During the pendency of the proceeding,

the petitioner shall promptly notify the circuit court

clerk of any change of his or her address. If the

petitioner has received a certificate of eligibility for

sealing from the Prisoner Review Board under paragraph (10)

of subsection (a) of Section 3-3-2 of the Unified Code of

Corrections, the certificate shall be attached to the

petition.

(3) Drug test. The petitioner must attach to the

petition proof that the petitioner has passed a test taken

within 30 days before the filing of the petition showing

the absence within his or her body of all illegal

substances as defined by the Illinois Controlled

Substances Act, the Methamphetamine Control and Community

Protection Act, and the Cannabis Control Act if he or she

is petitioning to:

(A) seal felony records under clause (c)(2)(E);

(B) seal felony records for a violation of the

Illinois Controlled Substances Act, the

Methamphetamine Control and Community Protection Act,

or the Cannabis Control Act under clause (c)(2)(F);

(C) seal felony records under subsection (e-5); or

(D) expunge felony records of a qualified

probation under clause (b)(1)(iv).

(4) Service of petition. The circuit court clerk shall

promptly serve a copy of the petition and documentation to

support the petition under subsection (e-5) or (e-6) on the

State's Attorney or prosecutor charged with the duty of

prosecuting the offense, the Department of State Police,

the arresting agency and the chief legal officer of the

unit of local government effecting the arrest.

(5) Objections.

(A) Any party entitled to notice of the petition

may file an objection to the petition. All objections

shall be in writing, shall be filed with the circuit

court clerk, and shall state with specificity the basis

of the objection. Whenever a person who has been

convicted of an offense is granted a pardon by the

Governor which specifically authorizes expungement, an

objection to the petition may not be filed.

(B) Objections to a petition to expunge or seal

must be filed within 60 days of the date of service of

the petition.

(6) Entry of order.

(A) The Chief Judge of the circuit wherein the

charge was brought, any judge of that circuit

designated by the Chief Judge, or in counties of less

than 3,000,000 inhabitants, the presiding trial judge

at the petitioner's trial, if any, shall rule on the

petition to expunge or seal as set forth in this

subsection (d)(6).

(B) Unless the State's Attorney or prosecutor, the

Department of State Police, the arresting agency, or

the chief legal officer files an objection to the

petition to expunge or seal within 60 days from the

date of service of the petition, the court shall enter

an order granting or denying the petition.

(C) Notwithstanding any other provision of law,

the court shall not deny a petition for sealing under

this Section because the petitioner has not satisfied

an outstanding legal financial obligation established,

imposed, or originated by a court, law enforcement

agency, or a municipal, State, county, or other unit of

local government, including, but not limited to, any

cost, assessment, fine, or fee. An outstanding legal

financial obligation does not include any court

ordered restitution to a victim under Section 5-5-6 of

the Unified Code of Corrections, unless the

restitution has been converted to a civil judgment.

Nothing in this subparagraph (C) waives, rescinds, or

abrogates a legal financial obligation or otherwise

eliminates or affects the right of the holder of any

financial obligation to pursue collection under

applicable federal, State, or local law.

(7) Hearings. If an objection is filed, the court shall

set a date for a hearing and notify the petitioner and all

parties entitled to notice of the petition of the hearing

date at least 30 days prior to the hearing. Prior to the

hearing, the State's Attorney shall consult with the

Department as to the appropriateness of the relief sought

in the petition to expunge or seal. At the hearing, the

court shall hear evidence on whether the petition should or

should not be granted, and shall grant or deny the petition

to expunge or seal the records based on the evidence

presented at the hearing. The court may consider the

following:

(A) the strength of the evidence supporting the

defendant's conviction;

(B) the reasons for retention of the conviction

records by the State;

(C) the petitioner's age, criminal record history,

and employment history;

(D) the period of time between the petitioner's

arrest on the charge resulting in the conviction and

the filing of the petition under this Section; and

(E) the specific adverse consequences the

petitioner may be subject to if the petition is denied.

(8) Service of order. After entering an order to

expunge or seal records, the court must provide copies of

the order to the Department, in a form and manner

prescribed by the Department, to the petitioner, to the

State's Attorney or prosecutor charged with the duty of

prosecuting the offense, to the arresting agency, to the

chief legal officer of the unit of local government

effecting the arrest, and to such other criminal justice

agencies as may be ordered by the court.

(9) Implementation of order.

(A) Upon entry of an order to expunge records

pursuant to (b)(2)(A) or (b)(2)(B)(ii), or both:

(i) the records shall be expunged (as defined

in subsection (a)(1)(E)) by the arresting agency,

the Department, and any other agency as ordered by

the court, within 60 days of the date of service of

the order, unless a motion to vacate, modify, or

reconsider the order is filed pursuant to

paragraph (12) of subsection (d) of this Section;

(ii) the records of the circuit court clerk

shall be impounded until further order of the court

upon good cause shown and the name of the

petitioner obliterated on the official index

required to be kept by the circuit court clerk

under Section 16 of the Clerks of Courts Act, but

the order shall not affect any index issued by the

circuit court clerk before the entry of the order;

and

(iii) in response to an inquiry for expunged

records, the court, the Department, or the agency

receiving such inquiry, shall reply as it does in

response to inquiries when no records ever

existed.

(B) Upon entry of an order to expunge records

pursuant to (b)(2)(B)(i) or (b)(2)(C), or both:

(i) the records shall be expunged (as defined

in subsection (a)(1)(E)) by the arresting agency

and any other agency as ordered by the court,

within 60 days of the date of service of the order,

unless a motion to vacate, modify, or reconsider

the order is filed pursuant to paragraph (12) of

subsection (d) of this Section;

(ii) the records of the circuit court clerk

shall be impounded until further order of the court

upon good cause shown and the name of the

petitioner obliterated on the official index

required to be kept by the circuit court clerk

under Section 16 of the Clerks of Courts Act, but

the order shall not affect any index issued by the

circuit court clerk before the entry of the order;

(iii) the records shall be impounded by the

Department within 60 days of the date of service of

the order as ordered by the court, unless a motion

to vacate, modify, or reconsider the order is filed

pursuant to paragraph (12) of subsection (d) of

this Section;

(iv) records impounded by the Department may

be disseminated by the Department only as required

by law or to the arresting authority, the State's

Attorney, and the court upon a later arrest for the

same or a similar offense or for the purpose of

sentencing for any subsequent felony, and to the

Department of Corrections upon conviction for any

offense; and

(v) in response to an inquiry for such records

from anyone not authorized by law to access such

records, the court, the Department, or the agency

receiving such inquiry shall reply as it does in

response to inquiries when no records ever

existed.

(B-5) Upon entry of an order to expunge records

under subsection (e-6):

(i) the records shall be expunged (as defined

in subsection (a)(1)(E)) by the arresting agency

and any other agency as ordered by the court,

within 60 days of the date of service of the order,

unless a motion to vacate, modify, or reconsider

the order is filed under paragraph (12) of

subsection (d) of this Section;

(ii) the records of the circuit court clerk

shall be impounded until further order of the court

upon good cause shown and the name of the

petitioner obliterated on the official index

required to be kept by the circuit court clerk

under Section 16 of the Clerks of Courts Act, but

the order shall not affect any index issued by the

circuit court clerk before the entry of the order;

(iii) the records shall be impounded by the

Department within 60 days of the date of service of

the order as ordered by the court, unless a motion

to vacate, modify, or reconsider the order is filed

under paragraph (12) of subsection (d) of this

Section;

(iv) records impounded by the Department may

be disseminated by the Department only as required

by law or to the arresting authority, the State's

Attorney, and the court upon a later arrest for the

same or a similar offense or for the purpose of

sentencing for any subsequent felony, and to the

Department of Corrections upon conviction for any

offense; and

(v) in response to an inquiry for these records

from anyone not authorized by law to access the

records, the court, the Department, or the agency

receiving the inquiry shall reply as it does in

response to inquiries when no records ever

existed.

(C) Upon entry of an order to seal records under

subsection (c), the arresting agency, any other agency

as ordered by the court, the Department, and the court

shall seal the records (as defined in subsection

(a)(1)(K)). In response to an inquiry for such records,

from anyone not authorized by law to access such

records, the court, the Department, or the agency

receiving such inquiry shall reply as it does in

response to inquiries when no records ever existed.

(D) The Department shall send written notice to the

petitioner of its compliance with each order to expunge

or seal records within 60 days of the date of service

of that order or, if a motion to vacate, modify, or

reconsider is filed, within 60 days of service of the

order resolving the motion, if that order requires the

Department to expunge or seal records. In the event of

an appeal from the circuit court order, the Department

shall send written notice to the petitioner of its

compliance with an Appellate Court or Supreme Court

judgment to expunge or seal records within 60 days of

the issuance of the court's mandate. The notice is not

required while any motion to vacate, modify, or

reconsider, or any appeal or petition for

discretionary appellate review, is pending.

(E) Upon motion, the court may order that a sealed

judgment or other court record necessary to

demonstrate the amount of any legal financial

obligation due and owing be made available for the

limited purpose of collecting any legal financial

obligations owed by the petitioner that were

established, imposed, or originated in the criminal

proceeding for which those records have been sealed.

The records made available under this subparagraph (E)

shall not be entered into the official index required

to be kept by the circuit court clerk under Section 16

of the Clerks of Courts Act and shall be immediately

re-impounded upon the collection of the outstanding

financial obligations.

(F) Notwithstanding any other provision of this

Section, a circuit court clerk may access a sealed

record for the limited purpose of collecting payment

for any legal financial obligations that were

established, imposed, or originated in the criminal

proceedings for which those records have been sealed.

(10) Fees. The Department may charge the petitioner a

fee equivalent to the cost of processing any order to

expunge or seal records. Notwithstanding any provision of

the Clerks of Courts Act to the contrary, the circuit court

clerk may charge a fee equivalent to the cost associated

with the sealing or expungement of records by the circuit

court clerk. From the total filing fee collected for the

petition to seal