Bill Text: IL HB2522 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Cannabis Regulation and Tax Act. Requires the Department of Financial and Professional Regulation to issue cannabis delivery organization licenses. Contains provisions regarding applications for cannabis delivery organization licenses. Requires the Department to develop a system to score applications for cannabis delivery licenses. Provides that applicants must qualify as social equity applicants in order to be awarded a cannabis delivery organization license. Requires applicants to pay a $500 application fee and a prorated fee of $500 prior to receiving a license, to be deposited into the Cannabis Regulation Fund. Contains requirements and prohibitions for cannabis delivery organizations. Provides that cannabis delivery organizations may obtain cannabis products from any cannabis business organization licensed in the State. Contains requirements for the issuance of cannabis delivery agent identification cards. Requires the Department to conduct a background check through the Illinois State Police of certain officers, board members, and agents of cannabis delivery organizations. Contains provisions regarding the renewal of cannabis delivery organization licenses and agent identification cards. Contains other provisions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-03-10 - Rule 19(a) / Re-referred to Rules Committee [HB2522 Detail]

Download: Illinois-2023-HB2522-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2522 Introduced , by Rep. Sonya M. Harper SYNOPSIS AS INTRODUCED:
410 ILCS 705/Art. 43 heading new
410 ILCS 705/43-1 new
410 ILCS 705/43-5 new
410 ILCS 705/43-10 new
410 ILCS 705/43-15 new
410 ILCS 705/43-20 new
410 ILCS 705/43-25 new
410 ILCS 705/43-27 new
410 ILCS 705/43-30 new
410 ILCS 705/43-35 new
410 ILCS 705/43-40 new
Amends the Cannabis Regulation and Tax Act. Requires the Department of Financial and Professional Regulation to issue cannabis delivery organization licenses. Contains provisions regarding applications for cannabis delivery organization licenses. Requires the Department to develop a system to score applications for cannabis delivery licenses. Provides that applicants must qualify as social equity applicants in order to be awarded a cannabis delivery organization license. Requires applicants to pay a $500 application fee and a prorated fee of $500 prior to receiving a license, to be deposited into the Cannabis Regulation Fund. Contains requirements and prohibitions for cannabis delivery organizations. Provides that cannabis delivery organizations may obtain cannabis products from any cannabis business organization licensed in the State. Contains requirements for the issuance of cannabis delivery agent identification cards. Requires the Department to conduct a background check through the Illinois State Police of certain officers, board members, and agents of cannabis delivery organizations. Contains provisions regarding the renewal of cannabis delivery organization licenses and agent identification cards. Contains other provisions.
LRB103 25868 CPF 55865 b
A BILL FOR
HB2522 LRB103 25868 CPF 55865 b
AN ACT concerning health.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Cannabis Regulation and Tax Act is amended
by adding Article 43 as follows:
(410 ILCS 705/Art. 43 heading new)
ARTICLE 43.
License and Regulation of
Cannabis Delivery Organizations.
(410 ILCS 705/43-1 new)
Sec. 43-1. Definition. In this Article, "Department" means
the Department of Financial and Professional Regulation.
(410 ILCS 705/43-5 new)
Sec. 43-5. Issuance of licenses.
(a) The Department shall issue cannabis delivery
organization licenses through a process provided for in this
Article and by rule.
(b) The Department shall make the application for cannabis
delivery organization licenses at a time set by rule.
(410 ILCS 705/43-10 new)

HB2522 - 2 - LRB103 25868 CPF 55865 b
Sec. 43-10. Application.
(a) When applying for a cannabis delivery organization
license, the applicant shall submit the following in such form
as the Department may direct:
(1) a nonrefundable application fee of $500 or, after
January 1, 2024, another amount as set by rule by the
Department, to be deposited into the Cannabis Regulation
Fund;
(2) the legal name of the cannabis delivery
organization;
(3) the proposed physical address of the cannabis
delivery 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 cannabis delivery organization;
(5) the details of any administrative or judicial
proceeding in which any of the principal officers or board
members of the cannabis delivery 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 nonprofit organization that
pled guilty, was convicted, fined, or had a registration
or license suspended or revoked;
(6) verification from the Illinois State Police that
all background checks of the prospective principal
officers, board members, and agents of the cannabis

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delivery organization have been conducted;
(7) a copy of the current local zoning ordinance or
permit and verification that the proposed cannabis
delivery organization is in compliance with the local
zoning rules and distance limitations established by the
local jurisdiction, if the cannabis delivery organization
has a business address;
(8) 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;
(9) whether an applicant can demonstrate experience in
or business practices that promote economic empowerment in
Disproportionately Impacted Areas;
(10) the identity of every person having a financial
or voting interest of 5% or more in the cannabis delivery
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
(11) any other information required by rule.
(b) Applicants must submit all required information,
including the information required in Section 43-35, to the
Department. Failure by an applicant to submit all required
information may result in the application being disqualified.

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(c) Each principal officer and board member of an
applicant shall be at least 21 years of age.
(d) If the Department 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 resubmit the incomplete
information. Applications that are still incomplete after this
opportunity to cure will not be scored and will be
disqualified.
(410 ILCS 705/43-15 new)
Sec. 43-15. Issuing licenses.
(a) The Department shall, by rule, develop a system to
score cannabis delivery 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) labor and employment practices, which shall
constitute no less than 2% of total available points;
(5) environmental plan that demonstrates an
environmental plan of action to minimize the carbon
footprint, environmental impact, and resource needs for

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the cannabis delivery organization;
(6) 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 or 2
of the following:
(A) a signed lease agreement that includes the
applicant's name;
(B) a property deed that includes the applicant's
name;
(C) school records;
(D) a voter registration card;
(E) an Illinois driver's license, an Illinois
Identification Card, or an Illinois Person with a
Disability Identification Card;
(F) a paycheck stub;
(G) a utility bill; or
(H) any other proof of residency or other
information necessary to establish residence as
provided by rule;
(7) 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
(8) any other criteria the Department may, by rule,
set for points.

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(b) Applicants must qualify as a social equity applicant
in order to be awarded a cannabis delivery organization
license.
(c) Should an applicant be awarded a cannabis delivery
organization license, the information and plans that the
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.
(d) If an applicant is awarded a cannabis delivery
organization license, the applicant shall pay a prorated fee
of $500 prior to receiving the license, to be deposited into
the Cannabis Regulation Fund. The Department may, by rule,
adjust the fee in this Section after January 1, 2024.
(410 ILCS 705/43-20 new)
Sec. 43-20. Denial of application. An application for a
cannabis delivery 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 43-25;

HB2522 - 7 - LRB103 25868 CPF 55865 b
(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 Article 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.
(410 ILCS 705/43-25 new)
Sec. 43-25. Cannabis delivery organization requirements;
prohibitions.
(a) The operating documents of a cannabis delivery
organization shall include procedures for the oversight of the
organization, an inventory monitoring system including a
physical inventory recorded weekly, accurate recordkeeping,
and a staffing plan.
(b) All cannabis delivered by a cannabis delivery
organization must be entered into a data collection system and
placed into a cannabis container for transport.
(c) Cannabis delivery organizations are subject to random
inspections by the Department, the Department of Public
Health, and the Illinois State Police.
(d) A cannabis delivery organization agent shall notify

HB2522 - 8 - LRB103 25868 CPF 55865 b
local law enforcement, the Illinois State Police, and the
Department of Agriculture within 24 hours after the discovery
of any loss or theft. Notification shall be made by phone, in
person, or by written or electronic communication.
(e) No person under the age of 21 years shall be in a
vehicle transporting cannabis goods.
(f) No person or individual who is not a cannabis delivery
organization agent shall be in a vehicle while transporting
cannabis goods.
(g) A cannabis delivery 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 cannabis delivery organization agent. During these times,
the cannabis delivery organization agent must also provide the
identification card upon request of any law enforcement
officer engaged in his or her official duties.
(h) A copy of the cannabis delivery organization's
registration and a manifest for the delivery shall be present
in any vehicle transporting cannabis.
(i) Cannabis shall be transported so it is not visible or
recognizable from outside the vehicle.
(j) 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.
(k) Cannabis must be transported in an enclosed, locked

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storage compartment that is secured or affixed to the vehicle.
(l) The Department may, by rule, impose any other
requirements or prohibitions on the transportation of
cannabis.
(410 ILCS 705/43-27 new)
Sec. 43-27. Procurement of cannabis products. A cannabis
delivery organization may obtain cannabis products from any
cannabis business organization licensed in the State.
(410 ILCS 705/43-30 new)
Sec. 43-30. Cannabis delivery 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

HB2522 - 10 - LRB103 25868 CPF 55865 b
application or renewal application;
(4) enter the license number of the cannabis delivery
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 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 delivery
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 are unique to the holder;
(4) a photograph of the cardholder; and
(5) the legal name of the cannabis delivery
organization employing the agent.
(d) An agent identification card shall be immediately

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returned to the cannabis delivery organization of the agent
upon termination of his or her employment.
(e) Any agent identification card lost by a cannabis
delivery agent shall be reported to the Illinois State Police
and the Department 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.
(410 ILCS 705/43-35 new)
Sec. 43-35. Cannabis delivery organization background
checks.
(a) Through the Illinois State Police, the Department
shall conduct a background check of the prospective principal
officers, board members, and agents of a cannabis delivery
organization applying for a license or identification card
under this Article. The Illinois 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 cannabis delivery
organization's prospective principal officer, board member, or
agent shall submit a full set of fingerprints to the Illinois
State Police for the purpose of obtaining a State and federal
criminal records check. These fingerprints shall be checked

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against the fingerprint records now and hereafter, to the
extent allowed by law, filed in the Illinois State Police and
Federal Bureau of Investigation criminal history records
databases. The Illinois State Police shall furnish, following
positive identification, all conviction information to the
Department.
(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.
(410 ILCS 705/43-40 new)
Sec. 43-40. Renewal of cannabis delivery organization
licenses and agent identification cards.
(a) Licenses and identification cards issued under this
Article shall be renewed annually. A cannabis delivery
organization shall receive written or electronic notice 90
days before the expiration of its current license that the
license will expire. The Department shall grant a renewal
within 45 days of submission of a renewal application if:
(1) the cannabis delivery organization submits a
renewal application and the required nonrefundable renewal
fee of $500, or after January 1, 2024, another amount set
by rule by the Department, to be deposited into the
Cannabis Regulation Fund;
(2) the Department has not suspended or revoked the

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license of the cannabis delivery organization for
violating this Act or rules adopted under this Act;
(3) the cannabis delivery organization has continued
to operate in accordance with all plans submitted as part
of its application and approved by the Department or any
amendments thereto that have been approved by the
Department; and
(4) the cannabis delivery organization has submitted
an agent, employee, contracting, and subcontracting
diversity report as required by the Department.
(b) If a cannabis delivery organization fails to renew its
license before expiration, it shall cease operations until its
license is renewed.
(c) If a cannabis delivery 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 cannabis delivery
organization until his or her identification card is renewed.
(d) Any cannabis delivery organization that continues to
operate, or any cannabis delivery 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.