Bill Text: IL SB1723 | 2023-2024 | 103rd General Assembly | Introduced


Bill Title: Amends the Cannabis Regulation and Tax Act. Removes language providing that any person or entity awarded a craft grower license under specified provisions shall only hold one craft grower license. Requires the Department of Agriculture to issue an additional 30 craft grower licenses on or before May 1, 2023 and an additional 30 craft grower licenses on or before September 1, 2024 under specified conditions. Removes language providing that a craft grower shall not be located within 1,500 feet of another craft grower. Requires each adult use cultivation center or Early Approval Adult Use Cultivation Center License holder that produces THC oil extract to set aside a portion of its total monthly production of THC oil extract to sell to infuser organizations to provide infuser organizations with an adequate supply for their infusion processes. Provides that a transporting organization may transport cannabis or cannabis-infused products to a transporting organization depot or other transporting organization transfer facility. Provides that no cannabis business establishment nor any other person or entity shall engage in advertising that contains any statement or illustration that includes a description of or reference to a cannabis product as "craft", unless that product or the raw material used to create that product is produced by a craft grower. Provides that the tax imposed under the Cannabis Cultivation Privilege Tax Law shall not be assessed against or collected from any craft grower awarded a craft grower license under the Act until 2 years after the date that the license is awarded to the craft grower. Makes other changes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-06-26 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB1723 Detail]

Download: Illinois-2023-SB1723-Introduced.html


103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1723

Introduced 2/9/2023, by Sen. Kimberly A. Lightford

SYNOPSIS AS INTRODUCED:
410 ILCS 705/1-10
410 ILCS 705/30-5
410 ILCS 705/30-30
410 ILCS 705/35-31
410 ILCS 705/40-25
410 ILCS 705/60-10

Amends the Cannabis Regulation and Tax Act. Removes language providing that any person or entity awarded a craft grower license under specified provisions shall only hold one craft grower license. Requires the Department of Agriculture to issue an additional 30 craft grower licenses on or before May 1, 2023 and an additional 30 craft grower licenses on or before September 1, 2024 under specified conditions. Removes language providing that a craft grower shall not be located within 1,500 feet of another craft grower. Requires each adult use cultivation center or Early Approval Adult Use Cultivation Center License holder that produces THC oil extract to set aside a portion of its total monthly production of THC oil extract to sell to infuser organizations to provide infuser organizations with an adequate supply for their infusion processes. Provides that a transporting organization may transport cannabis or cannabis-infused products to a transporting organization depot or other transporting organization transfer facility. Provides that no cannabis business establishment nor any other person or entity shall engage in advertising that contains any statement or illustration that includes a description of or reference to a cannabis product as "craft", unless that product or the raw material used to create that product is produced by a craft grower. Provides that the tax imposed under the Cannabis Cultivation Privilege Tax Law shall not be assessed against or collected from any craft grower awarded a craft grower license under the Act until 2 years after the date that the license is awarded to the craft grower. Makes other changes.
LRB103 28854 CPF 55239 b

A BILL FOR

SB1723LRB103 28854 CPF 55239 b
1 AN ACT concerning health.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Cannabis Regulation and Tax Act is amended
5by changing Sections 1-10, 30-5, 30-30, 35-31, 40-25, 55-20,
6and 60-10 as follows:
7 (410 ILCS 705/1-10)
8 Sec. 1-10. Definitions. In this Act:
9 "Adult Use Cultivation Center License" means a license
10issued by the Department of Agriculture that permits a person
11to act as a cultivation center under this Act and any
12administrative rule made in furtherance of this Act.
13 "Adult Use Dispensing Organization License" means a
14license issued by the Department of Financial and Professional
15Regulation that permits a person to act as a dispensing
16organization under this Act and any administrative rule made
17in furtherance of this Act.
18 "Advertise" means to engage in promotional activities
19including, but not limited to: newspaper, radio, Internet and
20electronic media, and television advertising; the distribution
21of fliers and circulars; billboard advertising; and the
22display of window and interior signs. "Advertise" does not
23mean exterior signage displaying only the name of the licensed

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1cannabis business establishment.
2 "Application points" means the number of points a
3Dispensary Applicant receives on an application for a
4Conditional Adult Use Dispensing Organization License.
5 "BLS Region" means a region in Illinois used by the United
6States Bureau of Labor Statistics to gather and categorize
7certain employment and wage data. The 17 such regions in
8Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
9Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
10Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
11Rockford, St. Louis, Springfield, Northwest Illinois
12nonmetropolitan area, West Central Illinois nonmetropolitan
13area, East Central Illinois nonmetropolitan area, and South
14Illinois nonmetropolitan area.
15 "By lot" means a randomized method of choosing between 2
16or more Eligible Tied Applicants or 2 or more Qualifying
17Applicants.
18 "Cannabis" means marijuana, hashish, and other substances
19that are identified as including any parts of the plant
20Cannabis sativa and including derivatives or subspecies, such
21as indica, of all strains of cannabis, whether growing or not;
22the seeds thereof, the resin extracted from any part of the
23plant; and any compound, manufacture, salt, derivative,
24mixture, or preparation of the plant, its seeds, or resin,
25including tetrahydrocannabinol (THC) and all other naturally
26produced cannabinol derivatives, whether produced directly or

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1indirectly by extraction; however, "cannabis" does not include
2the mature stalks of the plant, fiber produced from the
3stalks, oil or cake made from the seeds of the plant, any other
4compound, manufacture, salt, derivative, mixture, or
5preparation of the mature stalks (except the resin extracted
6from it), fiber, oil or cake, or the sterilized seed of the
7plant that is incapable of germination. "Cannabis" does not
8include industrial hemp as defined and authorized under the
9Industrial Hemp Act. "Cannabis" also means cannabis flower,
10concentrate, and cannabis-infused products.
11 "Cannabis business establishment" means a cultivation
12center, craft grower, processing organization, infuser
13organization, dispensing organization, or transporting
14organization.
15 "Cannabis concentrate" means a product derived from
16cannabis that is produced by extracting cannabinoids,
17including tetrahydrocannabinol (THC), from the plant through
18the use of propylene glycol, glycerin, butter, olive oil, or
19other typical cooking fats; water, ice, or dry ice; or butane,
20propane, CO2, ethanol, or isopropanol and with the intended
21use of smoking or making a cannabis-infused product. The use
22of any other solvent is expressly prohibited unless and until
23it is approved by the Department of Agriculture.
24 "Cannabis container" means a sealed or resealable,
25traceable, container, or package used for the purpose of
26containment of cannabis or cannabis-infused product during

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1transportation.
2 "Cannabis flower" means marijuana, hashish, and other
3substances that are identified as including any parts of the
4plant Cannabis sativa and including derivatives or subspecies,
5such as indica, of all strains of cannabis; including raw
6kief, leaves, and buds, but not resin that has been extracted
7from any part of such plant; nor any compound, manufacture,
8salt, derivative, mixture, or preparation of such plant, its
9seeds, or resin.
10 "Cannabis-infused product" means a beverage, food, oil,
11ointment, tincture, topical formulation, or another product
12containing cannabis or cannabis concentrate that is not
13intended to be smoked.
14 "Cannabis paraphernalia" means equipment, products, or
15materials intended to be used for planting, propagating,
16cultivating, growing, harvesting, manufacturing, producing,
17processing, preparing, testing, analyzing, packaging,
18repackaging, storing, containing, concealing, ingesting, or
19otherwise introducing cannabis into the human body.
20 "Cannabis plant monitoring system" or "plant monitoring
21system" means a system that includes, but is not limited to,
22testing and data collection established and maintained by the
23cultivation center, craft grower, or processing organization
24and that is available to the Department of Revenue, the
25Department of Agriculture, the Department of Financial and
26Professional Regulation, and the Illinois State Police for the

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1purposes of documenting each cannabis plant and monitoring
2plant development throughout the life cycle of a cannabis
3plant cultivated for the intended use by a customer from seed
4planting to final packaging.
5 "Cannabis testing facility" means an entity registered by
6the Department of Agriculture to test cannabis for potency and
7contaminants.
8 "Clone" means a plant section from a female cannabis plant
9not yet rootbound, growing in a water solution or other
10propagation matrix, that is capable of developing into a new
11plant.
12 "Community College Cannabis Vocational Training Pilot
13Program faculty participant" means a person who is 21 years of
14age or older, licensed by the Department of Agriculture, and
15is employed or contracted by an Illinois community college to
16provide student instruction using cannabis plants at an
17Illinois Community College.
18 "Community College Cannabis Vocational Training Pilot
19Program faculty participant Agent Identification Card" means a
20document issued by the Department of Agriculture that
21identifies a person as a Community College Cannabis Vocational
22Training Pilot Program faculty participant.
23 "Conditional Adult Use Dispensing Organization License"
24means a contingent license awarded to applicants for an Adult
25Use Dispensing Organization License that reserves the right to
26an Adult Use Dispensing Organization License if the applicant

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1meets certain conditions described in this Act, but does not
2entitle the recipient to begin purchasing or selling cannabis
3or cannabis-infused products.
4 "Conditional Adult Use Cultivation Center License" means a
5license awarded to top-scoring applicants for an Adult Use
6Cultivation Center License that reserves the right to an Adult
7Use Cultivation Center License if the applicant meets certain
8conditions as determined by the Department of Agriculture by
9rule, but does not entitle the recipient to begin growing,
10processing, or selling cannabis or cannabis-infused products.
11 "Craft grower" means a facility operated by an
12organization or business that is licensed by the Department of
13Agriculture to cultivate, dry, cure, and package cannabis and
14perform other necessary activities to make cannabis available
15for sale at a dispensing organization or use at a processing
16organization. A craft grower may contain up to 14,000 5,000
17square feet of canopy space on its premises for plants in the
18flowering state. The Department of Agriculture may authorize
19an increase or decrease of flowering stage cultivation space
20in increments of 3,000 square feet by rule based on market
21need, craft grower capacity, and the licensee's history of
22compliance or noncompliance, with a maximum space of 14,000
23square feet for cultivating plants in the flowering stage,
24which must be cultivated in all stages of growth in an enclosed
25and secure area. A craft grower may share premises with a
26processing organization or a dispensing organization, or both,

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1provided each licensee stores currency and cannabis or
2cannabis-infused products in a separate secured vault to which
3the other licensee does not have access or all licensees
4sharing a vault share more than 50% of the same ownership.
5 "Craft grower agent" means a principal officer, board
6member, employee, or other agent of a craft grower who is 21
7years of age or older.
8 "Craft Grower Agent Identification Card" means a document
9issued by the Department of Agriculture that identifies a
10person as a craft grower agent.
11 "Cultivation center" means a facility operated by an
12organization or business that is licensed by the Department of
13Agriculture to cultivate, process, transport (unless otherwise
14limited by this Act), and perform other necessary activities
15to provide cannabis and cannabis-infused products to cannabis
16business establishments.
17 "Cultivation center agent" means a principal officer,
18board member, employee, or other agent of a cultivation center
19who is 21 years of age or older.
20 "Cultivation Center Agent Identification Card" means a
21document issued by the Department of Agriculture that
22identifies a person as a cultivation center agent.
23 "Currency" means currency and coin of the United States.
24 "Dispensary" means a facility operated by a dispensing
25organization at which activities licensed by this Act may
26occur.

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1 "Dispensary Applicant" means the Proposed Dispensing
2Organization Name as stated on an application for a
3Conditional Adult Use Dispensing Organization License.
4 "Dispensing organization" means a facility operated by an
5organization or business that is licensed by the Department of
6Financial and Professional Regulation to acquire cannabis from
7a cultivation center, craft grower, processing organization,
8or another dispensary for the purpose of selling or dispensing
9cannabis, cannabis-infused products, cannabis seeds,
10paraphernalia, or related supplies under this Act to
11purchasers or to qualified registered medical cannabis
12patients and caregivers. As used in this Act, "dispensing
13organization" includes a registered medical cannabis
14organization as defined in the Compassionate Use of Medical
15Cannabis Program Act or its successor Act that has obtained an
16Early Approval Adult Use Dispensing Organization License.
17 "Dispensing organization agent" means a principal officer,
18employee, or agent of a dispensing organization who is 21
19years of age or older.
20 "Dispensing organization agent identification card" means
21a document issued by the Department of Financial and
22Professional Regulation that identifies a person as a
23dispensing organization agent.
24 "Disproportionately Impacted Area" means a census tract or
25comparable geographic area that satisfies the following
26criteria as determined by the Department of Commerce and

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1Economic Opportunity, that:
2 (1) meets at least one of the following criteria:
3 (A) the area has a poverty rate of at least 20%
4 according to the latest federal decennial census; or
5 (B) 75% or more of the children in the area
6 participate in the federal free lunch program
7 according to reported statistics from the State Board
8 of Education; or
9 (C) at least 20% of the households in the area
10 receive assistance under the Supplemental Nutrition
11 Assistance Program; or
12 (D) the area has an average unemployment rate, as
13 determined by the Illinois Department of Employment
14 Security, that is more than 120% of the national
15 unemployment average, as determined by the United
16 States Department of Labor, for a period of at least 2
17 consecutive calendar years preceding the date of the
18 application; and
19 (2) has high rates of arrest, conviction, and
20 incarceration related to the sale, possession, use,
21 cultivation, manufacture, or transport of cannabis.
22 "Early Approval Adult Use Cultivation Center License"
23means a license that permits a medical cannabis cultivation
24center licensed under the Compassionate Use of Medical
25Cannabis Program Act as of the effective date of this Act to
26begin cultivating, infusing, packaging, transporting (unless

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1otherwise provided in this Act), processing, and selling
2cannabis or cannabis-infused product to cannabis business
3establishments for resale to purchasers as permitted by this
4Act as of January 1, 2020.
5 "Early Approval Adult Use Dispensing Organization License"
6means a license that permits a medical cannabis dispensing
7organization licensed under the Compassionate Use of Medical
8Cannabis Program Act as of the effective date of this Act to
9begin selling cannabis or cannabis-infused product to
10purchasers as permitted by this Act as of January 1, 2020.
11 "Early Approval Adult Use Dispensing Organization at a
12secondary site" means a license that permits a medical
13cannabis dispensing organization licensed under the
14Compassionate Use of Medical Cannabis Program Act as of the
15effective date of this Act to begin selling cannabis or
16cannabis-infused product to purchasers as permitted by this
17Act on January 1, 2020 at a different dispensary location from
18its existing registered medical dispensary location.
19 "Eligible Tied Applicant" means a Tied Applicant that is
20eligible to participate in the process by which a remaining
21available license is distributed by lot pursuant to a Tied
22Applicant Lottery.
23 "Enclosed, locked facility" means a room, greenhouse,
24building, or other enclosed area equipped with locks or other
25security devices that permit access only by cannabis business
26establishment agents working for the licensed cannabis

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1business establishment or acting pursuant to this Act to
2cultivate, process, store, or distribute cannabis.
3 "Enclosed, locked space" means a closet, room, greenhouse,
4building, or other enclosed area equipped with locks or other
5security devices that permit access only by authorized
6individuals under this Act. "Enclosed, locked space" may
7include:
8 (1) a space within a residential building that (i) is
9 the primary residence of the individual cultivating 5 or
10 fewer cannabis plants that are more than 5 inches tall and
11 (ii) includes sleeping quarters and indoor plumbing. The
12 space must only be accessible by a key or code that is
13 different from any key or code that can be used to access
14 the residential building from the exterior; or
15 (2) a structure, such as a shed or greenhouse, that
16 lies on the same plot of land as a residential building
17 that (i) includes sleeping quarters and indoor plumbing
18 and (ii) is used as a primary residence by the person
19 cultivating 5 or fewer cannabis plants that are more than
20 5 inches tall, such as a shed or greenhouse. The structure
21 must remain locked when it is unoccupied by people.
22 "Financial institution" has the same meaning as "financial
23organization" as defined in Section 1501 of the Illinois
24Income Tax Act, and also includes the holding companies,
25subsidiaries, and affiliates of such financial organizations.
26 "Flowering stage" means the stage of cultivation where and

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1when a cannabis plant is cultivated to produce plant material
2for cannabis products. This includes mature plants as follows:
3 (1) if greater than 2 stigmas are visible at each
4 internode of the plant; or
5 (2) if the cannabis plant is in an area that has been
6 intentionally deprived of light for a period of time
7 intended to produce flower buds and induce maturation,
8 from the moment the light deprivation began through the
9 remainder of the marijuana plant growth cycle.
10 "Individual" means a natural person.
11 "Infuser organization" or "infuser" means a facility
12operated by an organization or business that is licensed by
13the Department of Agriculture to directly incorporate cannabis
14or cannabis concentrate into a product formulation to produce
15a cannabis-infused product.
16 "Kief" means the resinous crystal-like trichomes that are
17found on cannabis and that are accumulated, resulting in a
18higher concentration of cannabinoids, untreated by heat or
19pressure, or extracted using a solvent.
20 "Labor peace agreement" means an agreement between a
21cannabis business establishment and any labor organization
22recognized under the National Labor Relations Act, referred to
23in this Act as a bona fide labor organization, that prohibits
24labor organizations and members from engaging in picketing,
25work stoppages, boycotts, and any other economic interference
26with the cannabis business establishment. This agreement means

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1that the cannabis business establishment has agreed not to
2disrupt efforts by the bona fide labor organization to
3communicate with, and attempt to organize and represent, the
4cannabis business establishment's employees. The agreement
5shall provide a bona fide labor organization access at
6reasonable times to areas in which the cannabis business
7establishment's employees work, for the purpose of meeting
8with employees to discuss their right to representation,
9employment rights under State law, and terms and conditions of
10employment. This type of agreement shall not mandate a
11particular method of election or certification of the bona
12fide labor organization.
13 "Limited access area" means a room or other area under the
14control of a cannabis dispensing organization licensed under
15this Act and upon the licensed premises where cannabis sales
16occur with access limited to purchasers, dispensing
17organization owners and other dispensing organization agents,
18or service professionals conducting business with the
19dispensing organization, or, if sales to registered qualifying
20patients, caregivers, provisional patients, and Opioid
21Alternative Pilot Program participants licensed pursuant to
22the Compassionate Use of Medical Cannabis Program Act are also
23permitted at the dispensary, registered qualifying patients,
24caregivers, provisional patients, and Opioid Alternative Pilot
25Program participants.
26 "Member of an impacted family" means an individual who has

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1a parent, legal guardian, child, spouse, or dependent, or was
2a dependent of an individual who, prior to the effective date
3of this Act, was arrested for, convicted of, or adjudicated
4delinquent for any offense that is eligible for expungement
5under this Act.
6 "Mother plant" means a cannabis plant that is cultivated
7or maintained for the purpose of generating clones, and that
8will not be used to produce plant material for sale to an
9infuser or dispensing organization.
10 "Ordinary public view" means within the sight line with
11normal visual range of a person, unassisted by visual aids,
12from a public street or sidewalk adjacent to real property, or
13from within an adjacent property.
14 "Ownership and control" means ownership of at least 51% of
15the business, including corporate stock if a corporation, and
16control over the management and day-to-day operations of the
17business and an interest in the capital, assets, and profits
18and losses of the business proportionate to percentage of
19ownership.
20 "Person" means a natural individual, firm, partnership,
21association, joint stock company, joint venture, public or
22private corporation, limited liability company, or a receiver,
23executor, trustee, guardian, or other representative appointed
24by order of any court.
25 "Possession limit" means the amount of cannabis under
26Section 10-10 that may be possessed at any one time by a person

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121 years of age or older or who is a registered qualifying
2medical cannabis patient or caregiver under the Compassionate
3Use of Medical Cannabis Program Act.
4 "Principal officer" includes a cannabis business
5establishment applicant or licensed cannabis business
6establishment's board member, owner with more than 1% interest
7of the total cannabis business establishment or more than 5%
8interest of the total cannabis business establishment of a
9publicly traded company, president, vice president, secretary,
10treasurer, partner, officer, member, manager member, or person
11with a profit sharing, financial interest, or revenue sharing
12arrangement. The definition includes a person with authority
13to control the cannabis business establishment, a person who
14assumes responsibility for the debts of the cannabis business
15establishment and who is further defined in this Act.
16 "Primary residence" means a dwelling where a person
17usually stays or stays more often than other locations. It may
18be determined by, without limitation, presence, tax filings;
19address on an Illinois driver's license, an Illinois
20Identification Card, or an Illinois Person with a Disability
21Identification Card; or voter registration. No person may have
22more than one primary residence.
23 "Processing organization" or "processor" means a facility
24operated by an organization or business that is licensed by
25the Department of Agriculture to either extract constituent
26chemicals or compounds to produce cannabis concentrate or

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1incorporate cannabis or cannabis concentrate into a product
2formulation to produce a cannabis product.
3 "Processing organization agent" means a principal officer,
4board member, employee, or agent of a processing organization.
5 "Processing organization agent identification card" means
6a document issued by the Department of Agriculture that
7identifies a person as a processing organization agent.
8 "Purchaser" means a person 21 years of age or older who
9acquires cannabis for a valuable consideration. "Purchaser"
10does not include a cardholder under the Compassionate Use of
11Medical Cannabis Program Act.
12 "Qualifying Applicant" means an applicant that submitted
13an application pursuant to Section 15-30 that received at
14least 85% of 250 application points available under Section
1515-30 as the applicant's final score and meets the definition
16of "Social Equity Applicant" as set forth under this Section.
17 "Qualifying Social Equity Justice Involved Applicant"
18means an applicant that submitted an application pursuant to
19Section 15-30 that received at least 85% of 250 application
20points available under Section 15-30 as the applicant's final
21score and meets the criteria of either paragraph (1) or (2) of
22the definition of "Social Equity Applicant" as set forth under
23this Section.
24 "Qualified Social Equity Applicant" means a Social Equity
25Applicant who has been awarded a conditional license under
26this Act to operate a cannabis business establishment.

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

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1 control by one or more individuals who:
2 (i) have been arrested for, convicted of, or
3 adjudicated delinquent for any offense that is
4 eligible for expungement under this Act; or
5 (ii) is a member of an impacted family;
6 (3) for applicants with a minimum of 10 full-time
7 employees, an applicant with at least 51% of current
8 employees who:
9 (i) currently reside in a Disproportionately
10 Impacted Area; or
11 (ii) have been arrested for, convicted of, or
12 adjudicated delinquent for any offense that is
13 eligible for expungement under this Act or member of
14 an impacted family.
15 Nothing in this Act shall be construed to preempt or limit
16the duties of any employer under the Job Opportunities for
17Qualified Applicants Act. Nothing in this Act shall permit an
18employer to require an employee to disclose sealed or expunged
19offenses, unless otherwise required by law.
20 "Social Equity Justice Involved Applicant" means an
21applicant that is an Illinois resident and that:
22 (1) is at least 51% owned and controlled by one or more
23 individuals who have resided in a Disproportionately
24 Impacted Area for at least 5 of the 10 years immediately
25 preceding the date of application;
26 (2) is at least 51% owned and controlled by one or more

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1 individuals who have been arrested for, convicted of, or
2 adjudicated delinquent for any offense that is eligible
3 for expungement under subsection (i) of Section 5.2 of the
4 Criminal Identification Act; or
5 (3) is at least 51% owned and controlled by one or more
6 members of an impacted family.
7 "Tied Applicant" means an application submitted by a
8Dispensary Applicant pursuant to Section 15-30 that received
9the same number of application points under Section 15-30 as
10the Dispensary Applicant's final score as one or more
11top-scoring applications in the same BLS Region and would have
12been awarded a license but for the one or more other
13top-scoring applications that received the same number of
14application points. Each application for which a Dispensary
15Applicant was required to pay a required application fee for
16the application period ending January 2, 2020 shall be
17considered an application of a separate Tied Applicant.
18 "Tied Applicant Lottery" means the process established
19under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
20Use Dispensing Organization Licenses pursuant to Sections
2115-25 and 15-30 among Eligible Tied Applicants.
22 "Tincture" means a cannabis-infused solution, typically
23comprised of alcohol, glycerin, or vegetable oils, derived
24either directly from the cannabis plant or from a processed
25cannabis extract. A tincture is not an alcoholic liquor as
26defined in the Liquor Control Act of 1934. A tincture shall

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

SB1723- 21 -LRB103 28854 CPF 55239 b
1 (2) any cannabis plant that is cultivated solely for
2 the purpose of propagating clones and is never used to
3 produce cannabis.
4(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
5102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
65-13-22.)
7 (410 ILCS 705/30-5)
8 Sec. 30-5. Issuance of licenses.
9 (a) The Department of Agriculture shall issue up to 40
10craft grower licenses by July 1, 2020. Any person or entity
11awarded a license pursuant to this subsection shall only hold
12one craft grower license and may not sell that license until
13after December 21, 2021.
14 (a-5) The Department of Agriculture shall issue an
15additional 30 craft grower licenses on or before May 1, 2023,
16cost free, to applicants who submitted craft grower license
17applications on or before April 30, 2020 but were not awarded a
18license under subsection (a) and who received at least 85% of
19the total points available on their applications. Any person
20or entity awarded a license under this subsection may sell
21that license at any time after it is awarded.
22 (a-10) The Department of Agriculture shall issue an
23additional 30 craft grower licenses on or before September 1,
242023, at no charge, to applicants who submitted craft grower
25license applications on or before April 30, 2020 but were not

SB1723- 22 -LRB103 28854 CPF 55239 b
1awarded a license under subsection (a) or subsection (a-5),
2received at least 85% of the total points available on their
3applications, and qualify as Social Equity Justice Involved
4Applicants. Any applicant awarded a license under this
5subsection may sell that license at any time after it is
6awarded.
7 (b) By December 21, 2021, the Department of Agriculture
8shall issue up to 60 additional craft grower licenses. Any
9person or entity awarded a license pursuant to this Section
10subsection shall not hold more than 2 craft grower licenses.
11The person or entity awarded a license pursuant to this
12subsection or subsection (a) of this Section may sell its
13craft grower license subject to the restrictions of this Act
14or as determined by administrative rule. Prior to issuing such
15licenses, the Department may adopt rules through emergency
16rulemaking in accordance with subsection (kk) of Section 5-45
17of the Illinois Administrative Procedure Act, to modify or
18raise the number of craft grower licenses and modify or change
19the licensing application process. The General Assembly finds
20that the adoption of rules to regulate cannabis use is deemed
21an emergency and necessary for the public interest, safety,
22and welfare. In determining whether to exercise the authority
23granted by this subsection, the Department of Agriculture must
24consider the following factors:
25 (1) the percentage of cannabis sales occurring in
26 Illinois not in the regulated market using data from the

SB1723- 23 -LRB103 28854 CPF 55239 b
1 Substance Abuse and Mental Health Services Administration,
2 National Survey on Drug Use and Health, Illinois
3 Behavioral Risk Factor Surveillance System, and tourism
4 data from the Illinois Office of Tourism to ascertain
5 total cannabis consumption in Illinois compared to the
6 amount of sales in licensed dispensing organizations;
7 (2) whether there is an adequate supply of cannabis
8 and cannabis-infused products to serve registered medical
9 cannabis patients;
10 (3) whether there is an adequate supply of cannabis
11 and cannabis-infused products to serve purchasers;
12 (4) whether there is an oversupply of cannabis in
13 Illinois leading to trafficking of cannabis to states
14 where the sale of cannabis is not permitted by law;
15 (5) population increases or shifts;
16 (6) the density of craft growers in any area of the
17 State;
18 (7) perceived security risks of increasing the number
19 or location of craft growers;
20 (8) the past safety record of craft growers;
21 (9) the Department of Agriculture's capacity to
22 appropriately regulate additional licensees;
23 (10) (blank); and
24 (11) any other criteria the Department of Agriculture
25 deems relevant.
26 (c) After January 1, 2024 2022, the Department of

SB1723- 24 -LRB103 28854 CPF 55239 b
1Agriculture may by rule modify or raise the number of craft
2grower licenses and modify or change the licensing application
3process. At no time may the number of craft grower licenses
4exceed 150. Any person or entity awarded a license pursuant to
5this subsection shall not hold more than 3 craft grower
6licenses. A person or entity awarded a license pursuant to
7this subsection or subsection (a), (a-5), or (a-10) or
8subsection (b) of this Section may sell its craft grower
9license or licenses subject to the restrictions of this Act or
10as determined by administrative rule.
11 (d) Upon the completion of the disparity and availability
12study pertaining to craft growers by the Cannabis Regulation
13Oversight Officer pursuant to subsection (e) of Section 5-45,
14the Department may modify or change the licensing application
15process to reduce or eliminate barriers from and remedy
16evidence of discrimination identified in the disparity and
17availability study.
18(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
19102-98, eff. 7-15-21.)
20 (410 ILCS 705/30-30)
21 Sec. 30-30. Craft grower requirements; prohibitions.
22 (a) The operating documents of a craft grower shall
23include procedures for the oversight of the craft grower, a
24cannabis plant monitoring system including a physical
25inventory recorded weekly, accurate recordkeeping, and a

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

SB1723- 26 -LRB103 28854 CPF 55239 b
1if that is the location of common bathrooms, lunchrooms,
2locker rooms, or other areas of the building where work or
3cultivation of cannabis is not performed. At no time may an
4infuser or dispensing organization agent perform work at a
5craft grower without being a registered agent of the craft
6grower.
7 (d) A craft grower may not sell or distribute any cannabis
8to any person other than a cultivation center, a craft grower,
9an infuser organization, a dispensing organization, or as
10otherwise authorized by rule.
11 (e) A craft grower may not be located in an area zoned for
12residential use.
13 (f) A craft grower may not either directly or indirectly
14discriminate in price between different cannabis business
15establishments that are purchasing a like grade, strain,
16brand, and quality of cannabis or cannabis-infused product.
17Nothing in this subsection (f) prevents a craft grower from
18pricing cannabis differently based on differences in the cost
19of manufacturing or processing, the quantities sold, such as
20volume discounts, or the way the products are delivered.
21 (g) All cannabis harvested by a craft grower and intended
22for distribution to a dispensing organization must be entered
23into a data collection system, packaged and labeled under
24Section 55-21, and, if distribution is to a dispensing
25organization that does not share a premises with the
26dispensing organization receiving the cannabis, placed into a

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

SB1723- 28 -LRB103 28854 CPF 55239 b
1 population of more than 700,000 but fewer than 3,000,000,
2 the cannabis business establishment receiving the cannabis
3 is within 2 miles of the craft grower; or
4 (iii) If the craft grower is located in a county with a
5 population of fewer than 700,000, the cannabis business
6 establishment receiving the cannabis is within 15 miles of
7 the craft grower.
8 (l) A craft grower may enter into a contract with a
9transporting organization to transport cannabis to a
10cultivation center, a craft grower, an infuser organization, a
11dispensing organization, or a laboratory.
12 (m) No person or entity shall hold any legal, equitable,
13ownership, or beneficial interest, directly or indirectly, of
14more than 3 craft grower licenses. Further, no person or
15entity that is employed by, an agent of, or has a contract to
16receive payment from or participate in the management of a
17craft grower, is a principal officer of a craft grower, or
18entity controlled by or affiliated with a principal officer of
19a craft grower shall hold any legal, equitable, ownership, or
20beneficial interest, directly or indirectly, in a craft grower
21license that would result in the person or entity owning or
22controlling in combination with any craft grower, principal
23officer of a craft grower, or entity controlled or affiliated
24with a principal officer of a craft grower by which he, she, or
25it is employed, is an agent of, or participates in the
26management of more than 3 craft grower licenses.

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1 (n) It is unlawful for any person having a craft grower
2license or any officer, associate, member, representative, or
3agent of the licensee to offer or deliver money, or anything
4else of value, directly or indirectly, to any person having an
5Early Approval Adult Use Dispensing Organization License, a
6Conditional Adult Use Dispensing Organization License, an
7Adult Use Dispensing Organization License, or a medical
8cannabis dispensing organization license issued under the
9Compassionate Use of Medical Cannabis Program Act, or to any
10person connected with or in any way representing, or to any
11member of the family of, the person holding an Early Approval
12Adult Use Dispensing Organization License, a Conditional Adult
13Use Dispensing Organization License, an Adult Use Dispensing
14Organization License, or a medical cannabis dispensing
15organization license issued under the Compassionate Use of
16Medical Cannabis Program Act, or to any stockholders in any
17corporation engaged in the retail sale of cannabis, or to any
18officer, manager, agent, or representative of the Early
19Approval Adult Use Dispensing Organization License, a
20Conditional Adult Use Dispensing Organization License, an
21Adult Use Dispensing Organization License, or a medical
22cannabis dispensing organization license issued under the
23Compassionate Use of Medical Cannabis Program Act to obtain
24preferential placement within the dispensing organization,
25including, without limitation, on shelves and in display cases
26where purchasers can view products, or on the dispensing

SB1723- 30 -LRB103 28854 CPF 55239 b
1organization's website.
2 (o) A craft grower shall not be located within 1,500 feet
3of another craft grower or a cultivation center.
4 (p) A craft grower may process cannabis, cannabis
5concentrates, and cannabis-infused products.
6 (q) A craft grower must comply with any other requirements
7or prohibitions set by administrative rule of the Department
8of Agriculture.
9(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
10102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
115-13-22.)
12 (410 ILCS 705/35-31)
13 Sec. 35-31. Ensuring an adequate supply of raw materials
14to serve infusers.
15 (a) As used in this Section, "raw materials" includes, but
16is not limited to, CO2 hash oil, "crude", "distillate", or any
17other cannabis concentrate extracted from cannabis flower by
18use of a solvent or a mechanical process.
19 (b) The Department of Agriculture may by rule design a
20method for assessing whether licensed infusers have access to
21an adequate supply of reasonably affordable raw materials,
22which may include but not be limited to: (i) a survey of
23infusers; (ii) a market study on the sales trends of
24cannabis-infused products manufactured by infusers; and (iii)
25the costs cultivation centers and craft growers assume for the

SB1723- 31 -LRB103 28854 CPF 55239 b
1raw materials they use in any cannabis-infused products they
2manufacture.
3 (b-5) Each adult use cultivation center or Early Approval
4Adult Use Cultivation Center License holder licensed under
5Article 20 that produces THC oil extract shall set aside a
6portion of its total monthly production of THC oil extract to
7sell to infuser organizations at market price, quality, and
8variety to provide infuser organizations with an adequate
9supply for their infusion processes. The portion set aside by
10each cultivation center or Early Approval Adult Use
11Cultivation Center License holder shall be on a proportionate,
12pro rata basis and based upon its total monthly production
13compared to the industry total monthly production in the
14previous year as determined by the Department of Agriculture.
15The total monthly portion of THC oil extract set aside by all
16cultivation centers and Early Approval Adult Use Cultivation
17Center License holders shall be as follows:
18 (1) During calendar year 2023, 50,000 grams per month.
19 (2) During calendar year 2024, 60,000 grams per month.
20 (3) During calendar year 2025, 70,000 grams per month.
21 (4) During calendar year 2026, 80,000 grams per month.
22 (5) During calendar year 2027, 90,000 grams per month.
23 The price of THC oil extract shall be the average fair
24market price as determined quarterly by the Department of
25Agriculture or an amount equal to 900% of the U.S. Cannabis
26Spot Index's price for cannabis flower if, during any quarter,

SB1723- 32 -LRB103 28854 CPF 55239 b
1the Department fails to establish a fair market price based
2upon quality and variety. After January 1, 2024, the monthly
3portion of THC oil extract may be adjusted by the Department of
4Agriculture based upon market assessments as provided in
5subsections (c) and (d).
6 (c) The Department of Agriculture shall perform an
7assessment of whether infusers have access to an adequate
8supply of reasonably affordable raw materials that shall start
9no sooner than January 1, 2022 and shall conclude no later than
10April 1, 2022. The Department of Agriculture may rely on data
11from the Illinois Cannabis Regulation Oversight Officer as
12part of this assessment.
13 (d) The Department of Agriculture shall perform an
14assessment of whether infusers have access to an adequate
15supply of reasonably affordable raw materials that shall start
16no sooner than January 1, 2025 2023 and shall conclude no later
17than April 1, 2025 2023. The Department of Agriculture may
18rely on data from the Cannabis Regulation Oversight Officer as
19part of this assessment.
20 (e) The Department of Agriculture may by rule adopt
21measures to ensure infusers have access to an adequate supply
22of reasonably affordable raw materials necessary for the
23manufacture of cannabis-infused products. Such measures may
24include, but not be limited to (i) requiring cultivation
25centers and craft growers to set aside a minimum amount of raw
26materials for the wholesale market or (ii) enabling infusers

SB1723- 33 -LRB103 28854 CPF 55239 b
1to apply for a processor license to extract raw materials from
2cannabis flower.
3 (f) If the Department of Agriculture determines processor
4licenses may be available to infuser organizations based upon
5findings made pursuant to subsection (e), infuser
6organizations may submit to the Department of Agriculture on
7forms provided by the Department of Agriculture the following
8information as part of an application to receive a processor
9license:
10 (1) experience with the extraction, processing, or
11 infusing of oils similar to those derived from cannabis,
12 or other business practices to be performed by the
13 infuser;
14 (2) a description of the applicant's experience with
15 manufacturing equipment and chemicals to be used in
16 processing;
17 (3) expertise in relevant scientific fields;
18 (4) a commitment that any cannabis waste, liquid
19 waste, or hazardous waste shall be disposed of in
20 accordance with 8 Ill. Adm. Code 1000.460, except, to the
21 greatest extent feasible, all cannabis plant waste will be
22 rendered unusable by grinding and incorporating the
23 cannabis plant waste with compostable mixed waste to be
24 disposed of in accordance with Ill. Adm. Code
25 1000.460(g)(1); and
26 (5) any other information the Department of

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1 Agriculture deems relevant.
2 (g) The Department of Agriculture may only issue an
3infuser organization a processor license if, based on the
4information pursuant to subsection (f) and any other criteria
5set by the Department of Agriculture, which may include but
6not be limited an inspection of the site where processing
7would occur, the Department of Agriculture is reasonably
8certain the infuser organization will process cannabis in a
9safe and compliant manner.
10(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
11 (410 ILCS 705/40-25)
12 Sec. 40-25. Transporting organization requirements;
13prohibitions.
14 (a) The operating documents of a transporting organization
15shall include procedures for the oversight of the transporter,
16an inventory monitoring system including a physical inventory
17recorded weekly, accurate recordkeeping, and a staffing plan.
18 (b) A transporting organization may not transport cannabis
19or cannabis-infused products to any person other than a
20cultivation center, a craft grower, an infuser organization, a
21dispensing organization, a testing facility, a transporting
22organization depot or other transporting organization transfer
23facility, or as otherwise authorized by rule. A transporting
24organization shall be specifically allowed to use the same
25transport vehicle to pick up or deliver cannabis products from

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1and to multiple craft growers, processors, and dispensaries
2during the transporting organization's pick up and delivery
3process.
4 (c) All cannabis transported by a transporting
5organization must be entered into a data collection system and
6placed into a cannabis container for transport.
7 (d) Transporters are subject to random inspections by the
8Department of Agriculture, the Department of Public Health,
9the Illinois State Police, or as provided by rule.
10 (e) A transporting organization agent shall notify local
11law enforcement, the Illinois State Police, and the Department
12of Agriculture within 24 hours of the discovery of any loss or
13theft. Notification shall be made by phone, in person, or by
14written or electronic communication.
15 (f) No person under the age of 21 years shall be in a
16commercial vehicle or trailer transporting cannabis goods.
17 (g) No person or individual who is not a transporting
18organization agent shall be in a vehicle while transporting
19cannabis goods.
20 (h) Transporters may not use commercial motor vehicles
21with a weight rating of over 10,001 pounds.
22 (i) It is unlawful for any person to offer or deliver
23money, or anything else of value, directly or indirectly, to
24any of the following persons to obtain preferential placement
25within the dispensing organization, including, without
26limitation, on shelves and in display cases where purchasers

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1can view products, or on the dispensing organization's
2website:
3 (1) a person having a transporting organization
4 license, or any officer, associate, member,
5 representative, or agent of the licensee;
6 (2) a person having an Early Applicant Adult Use
7 Dispensing Organization License, an Adult Use Dispensing
8 Organization License, or a medical cannabis dispensing
9 organization license issued under the Compassionate Use of
10 Medical Cannabis Program Act;
11 (3) a person connected with or in any way
12 representing, or a member of the family of, a person
13 holding an Early Applicant Adult Use Dispensing
14 Organization License, an Adult Use Dispensing Organization
15 License, or a medical cannabis dispensing organization
16 license issued under the Compassionate Use of Medical
17 Cannabis Program Act; or
18 (4) a stockholder, officer, manager, agent, or
19 representative of a corporation engaged in the retail sale
20 of cannabis, an Early Applicant Adult Use Dispensing
21 Organization License, an Adult Use Dispensing Organization
22 License, or a medical cannabis dispensing organization
23 license issued under the Compassionate Use of Medical
24 Cannabis Program Act.
25 (j) A transporting organization agent must keep his or her
26identification card visible at all times when on the property

SB1723- 37 -LRB103 28854 CPF 55239 b
1of a cannabis business establishment and during the
2transporting of cannabis when acting under his or her duties
3as a transportation organization agent. During these times,
4the transporting organization agent must also provide the
5identification card upon request of any law enforcement
6officer engaged in his or her official duties.
7 (k) A copy of the transporting organization's registration
8and a manifest for the delivery shall be present in any vehicle
9transporting cannabis.
10 (l) Cannabis shall be transported so it is not visible or
11recognizable from outside the vehicle.
12 (m) A vehicle transporting cannabis must not bear any
13markings to indicate the vehicle contains cannabis or bear the
14name or logo of the cannabis business establishment.
15 (n) Cannabis must be transported in an enclosed, locked
16storage compartment or security cage that is secured or
17affixed to the vehicle.
18 (o) The Department of Agriculture may, by rule, impose any
19other requirements or prohibitions on the transportation of
20cannabis.
21(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
22102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
235-13-22.)
24 (410 ILCS 705/60-10)
25 Sec. 60-10. Tax imposed.

SB1723- 38 -LRB103 28854 CPF 55239 b
1 (a) Beginning September 1, 2019, a tax is imposed upon the
2privilege of cultivating cannabis at the rate of 7% of the
3gross receipts from the first sale of cannabis by a
4cultivator. The sale of any product that contains any amount
5of cannabis or any derivative thereof is subject to the tax
6under this Section on the full selling price of the product.
7The Department may determine the selling price of the cannabis
8when the seller and purchaser are affiliated persons, when the
9sale and purchase of cannabis is not an arm's length
10transaction, or when cannabis is transferred by a craft grower
11to the craft grower's dispensing organization or infuser or
12processing organization and a value is not established for the
13cannabis. The value determined by the Department shall be
14commensurate with the actual price received for products of
15like quality, character, and use in the area. If there are no
16sales of cannabis of like quality, character, and use in the
17same area, then the Department shall establish a reasonable
18value based on sales of products of like quality, character,
19and use in other areas of the State, taking into consideration
20any other relevant factors.
21 (a-5) The tax imposed under this Article shall not be
22assessed against or collected from any craft grower awarded a
23craft grower license under this Act until 2 years after the
24date that the license is awarded to the craft grower.
25 (b) The Cannabis Cultivation Privilege Tax imposed under
26this Article is solely the responsibility of the cultivator

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1who makes the first sale and is not the responsibility of a
2subsequent purchaser, a dispensing organization, or an
3infuser. Persons subject to the tax imposed under this Article
4may, however, reimburse themselves for their tax liability
5hereunder by separately stating reimbursement for their tax
6liability as an additional charge.
7 (c) The tax imposed under this Article shall be in
8addition to all other occupation, privilege, or excise taxes
9imposed by the State of Illinois or by any unit of local
10government.
11(Source: P.A. 101-27, eff. 6-25-19.)
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