Bill Text: IL SB2281 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Compassionate Use of Medical Cannabis Program Act and the Cannabis Regulation and Tax Act. Allows dispensing organizations to establish a protocol to dispense cannabis on any real property or parking area under the dispensary's ownership or control, such as transactions at drive-through windows. Requires the protocol to adhere to the requirements for point-of-sale dispensing transactions under the Acts. In the Cannabis Regulation and Tax Act, removes language prohibiting dispensing organizations from operating drive-through windows. Prohibits dispensing organizations from transporting cannabis to residences or other locations beyond the real property or parking area under the ownership or control of the dispensary where purchasers may be for delivery (rather than from transporting cannabis to residences or other locations where purchasers may be for delivery).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-03-10 - Rule 3-9(a) / Re-referred to Assignments [SB2281 Detail]

Download: Illinois-2023-SB2281-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2281 Introduced 2/10/2023, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED:
410 ILCS 130/130
410 ILCS 705/15-70
410 ILCS 705/15-85
Amends the Compassionate Use of Medical Cannabis Program Act and the Cannabis Regulation and Tax Act. Allows dispensing organizations to establish a protocol to dispense cannabis on any real property or parking area under the dispensary's ownership or control, such as transactions at drive-through windows. Requires the protocol to adhere to the requirements for point-of-sale dispensing transactions under the Acts. In the Cannabis Regulation and Tax Act, removes language prohibiting dispensing organizations from operating drive-through windows. Prohibits dispensing organizations from transporting cannabis to residences or other locations beyond the real property or parking area under the ownership or control of the dispensary where purchasers may be for delivery (rather than from transporting cannabis to residences or other locations where purchasers may be for delivery).
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A BILL FOR
SB2281 LRB103 28120 CPF 54499 b
AN ACT concerning health.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Compassionate Use of Medical Cannabis
Program Act is amended by changing Section 130 as follows:
(410 ILCS 130/130)
Sec. 130. Requirements; prohibitions; penalties;
dispensing organizations.
(a) The Department of Financial and Professional
Regulation shall implement the provisions of this Section by
rule.
(b) A dispensing organization shall maintain operating
documents which shall include procedures for the oversight of
the registered dispensing organization and procedures to
ensure accurate recordkeeping.
(c) A dispensing organization shall implement appropriate
security measures, as provided by rule, to deter and prevent
the theft of cannabis and unauthorized entrance into areas
containing cannabis.
(d) A dispensing organization may not be located within
1,000 feet of the property line of a pre-existing public or
private preschool or elementary or secondary school or day
care center, day care home, group day care home, or part day

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child care facility. A registered dispensing organization may
not be located in a house, apartment, condominium, or an area
zoned for residential use. This subsection shall not apply to
any dispensing organizations registered on or after July 1,
2019.
(e) A dispensing organization is prohibited from acquiring
cannabis from anyone other than a cultivation center, craft
grower, processing organization, another dispensing
organization, or transporting organization licensed or
registered under this Act or the Cannabis Regulation and Tax
Act. A dispensing organization is prohibited from obtaining
cannabis from outside the State of Illinois.
(f) A registered dispensing organization is prohibited
from dispensing cannabis for any purpose except to assist
registered qualifying patients with the medical use of
cannabis directly or through the qualifying patients'
designated caregivers.
(g) The area in a dispensing organization where medical
cannabis is stored can only be accessed by dispensing
organization agents working for the dispensing organization,
Department of Financial and Professional Regulation staff
performing inspections, law enforcement or other emergency
personnel, and contractors working on jobs unrelated to
medical cannabis, such as installing or maintaining security
devices or performing electrical wiring.
(h) A dispensing organization may not dispense more than

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2.5 ounces of cannabis to a registered qualifying patient,
directly or via a designated caregiver, in any 14-day period
unless the qualifying patient has a Department of Public
Health-approved quantity waiver. Any Department of Public
Health-approved quantity waiver process must be made available
to qualified veterans.
(i) Except as provided in subsection (i-5), before medical
cannabis may be dispensed to a designated caregiver or a
registered qualifying patient, a dispensing organization agent
must determine that the individual is a current cardholder in
the verification system and must verify each of the following:
(1) that the registry identification card presented to
the registered dispensing organization is valid;
(2) that the person presenting the card is the person
identified on the registry identification card presented
to the dispensing organization agent;
(3) (blank); and
(4) that the registered qualifying patient has not
exceeded his or her adequate supply.
(i-5) A dispensing organization may dispense medical
cannabis to an Opioid Alternative Pilot Program participant
under Section 62 and to a person presenting proof of
provisional registration under Section 55. Before dispensing
medical cannabis, the dispensing organization shall comply
with the requirements of Section 62 or Section 55, whichever
is applicable, and verify the following:

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(1) that the written certification presented to the
registered dispensing organization is valid and an
original document;
(2) that the person presenting the written
certification is the person identified on the written
certification; and
(3) that the participant has not exceeded his or her
adequate supply.
(i-10) A dispensing organization may establish a protocol
to dispense cannabis on any real property or parking area
under the dispensary's ownership or control, such as
transactions at drive-through windows. The protocol shall
adhere to the requirements for point-of-sale dispensing
transactions under this Act, including, but not limited to,
camera recordings capturing each sale, the individuals
involved, and the computer monitors used for the sale.
(j) Dispensing organizations shall ensure compliance with
this limitation by maintaining internal, confidential records
that include records specifying how much medical cannabis is
dispensed to the registered qualifying patient and whether it
was dispensed directly to the registered qualifying patient or
to the designated caregiver. Each entry must include the date
and time the cannabis was dispensed. Additional recordkeeping
requirements may be set by rule.
(k) The health care professional-patient privilege as set
forth by Section 8-802 of the Code of Civil Procedure shall

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apply between a qualifying patient and a registered dispensing
organization and its agents with respect to communications and
records concerning qualifying patients' debilitating
conditions.
(l) A dispensing organization may not permit any person to
consume cannabis on the property of a medical cannabis
organization.
(m) A dispensing organization may not share office space
with or refer patients to a certifying health care
professional.
(n) Notwithstanding any other criminal penalties related
to the unlawful possession of cannabis, the Department of
Financial and Professional Regulation may revoke, suspend,
place on probation, reprimand, refuse to issue or renew, or
take any other disciplinary or non-disciplinary action as the
Department of Financial and Professional Regulation may deem
proper with regard to the registration of any person issued
under this Act to operate a dispensing organization or act as a
dispensing organization agent, including imposing fines not to
exceed $10,000 for each violation, for any violations of this
Act and rules adopted in accordance with this Act. The
procedures for disciplining a registered dispensing
organization shall be determined by rule. All final
administrative decisions of the Department of Financial and
Professional Regulation are subject to judicial review under
the Administrative Review Law and its rules. The term

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"administrative decision" is defined as in Section 3-101 of
the Code of Civil Procedure.
(o) Dispensing organizations are subject to random
inspection and cannabis testing by the Department of Financial
and Professional Regulation, the Illinois State Police, the
Department of Revenue, the Department of Public Health, the
Department of Agriculture, or as provided by rule.
(p) The Department of Financial and Professional
Regulation shall adopt rules permitting returns, and potential
refunds, for damaged or inadequate products.
(q) The Department of Financial and Professional
Regulation may issue nondisciplinary citations for minor
violations which may be accompanied by a civil penalty not to
exceed $10,000 per violation. The penalty shall be a civil
penalty or other condition as established by rule. The
citation shall be issued to the licensee and shall contain the
licensee's name, address, and license number, a brief factual
statement, the Sections of the law or rule allegedly violated,
and the civil penalty, 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 of Financial and Professional Regulation within 30
days after the citation is served, then the citation shall
become final and shall not be subject to appeal.
(Source: P.A. 101-363, eff. 8-9-19; 102-98, eff. 7-15-21.)

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Section 10. The Cannabis Regulation and Tax Act is amended
by changing Sections 15-70 and 15-85 as follows:
(410 ILCS 705/15-70)
Sec. 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 from a transporting organization, adult use
cultivation center, craft grower, infuser organization, or
other dispensing organization 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

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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 must keep all air treatment
systems that will be installed to reduce odors in good working
order.
(m) A dispensing organization must 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 to provide

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on-site security at all hours of the dispensary's operation.
(n) 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.
(o) The dispensary shall be free from infestation by
insects, rodents, or pests.
(p) 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 dispensing organization is licensed
under the Compassionate Use of Medical Cannabis Program
Act, and the individual is registered under the
Compassionate Use of Medical Cannabis Program or the
purchaser has been verified to be 21 years of age or older;
(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

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licensees such that the inventory available for sale at
any dispensary from any single cultivation center, craft
grower, processor, transporter, 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) (Blank) 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 beyond the real property or parking area under
the ownership or control of the dispensary where
purchasers may be for delivery;
(10) Enter into agreements to allow persons who are

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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, unless the
applicant is a Social Equity Applicant or Social Equity
Justice Involved Applicant located or seeking to locate
within 1,500 feet of a dispensing organization licensed
under Section 15-15 or Section 15-20;
(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.
(q) It is unlawful for any person having an Early Approval

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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 Program Act 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 in exchange for preferential placement on the
dispensing organization's shelves, display cases, or website.
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.
(r) 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 Program to enter into
any contract with any person licensed to cultivate, process,
or transport cannabis whereby such dispensing organization
agrees not to sell any cannabis cultivated, processed,

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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.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
102-98, eff. 7-15-21.)
(410 ILCS 705/15-85)
Sec. 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 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;
(3) Offer any appropriate purchaser education or
support materials;

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(4) Enter the following information into the State's
cannabis electronic verification system:
(i) The dispensing organization agent's
identification number, or if the agent's card
application is pending the Department's approval, a
temporary and unique identifier until the agent's card
application is approved or denied by the Department;
(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
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.

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(d) A dispensing organization may establish a protocol to
dispense cannabis on any real property or parking area under
the dispensary's ownership or control, such as transactions at
drive-through windows. The protocol shall adhere to the
requirements for point-of-sale dispensing transactions under
this Act, including, but not limited to, camera recordings
capturing each sale, the individuals involved, and the
computer monitors used for the sale.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
102-98, eff. 7-15-21.)