Bill Text: IL SB3536 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Cannabis Regulation and Tax Act. Provides that a dispensing organization must carry liability insurance coverage in an amount that is at least equal to the amount for which a seller of alcoholic liquor is liable under a specified provision of the Liquor Control Act of 1934.

Sponsorship: Partisan Bill (Republican 1)

Status: (Failed) 2021-01-13 - Session Sine Die [SB3536 Detail]

Download: Illinois-2019-SB3536-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB3536 Introduced 2/13/2020, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED:
410 ILCS 705/15-70
Amends the Cannabis Regulation and Tax Act. Provides that a dispensing organization must carry liability insurance coverage in an amount that is at least equal to the amount for which a seller of alcoholic liquor is liable under a specified provision of the Liquor Control Act of 1934.
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A BILL FOR
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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 changing Section 15-70 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

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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
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.

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(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
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;

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(5) Enter into an exclusive agreement with any adult
use cultivation center, craft grower, or infuser.
Dispensaries shall provide consumers an assortment of
products from various cannabis business establishment
licensees such that the inventory available for sale at any
dispensary from any single cultivation center, craft
grower, processor, 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) 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

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locations where purchasers may be for delivery;
(10) Enter into agreements to allow persons who are not
dispensing organization agents to deliver cannabis or to
transport cannabis to purchasers;
(11) Operate a dispensary if its video surveillance
equipment is inoperative;
(12) Operate a dispensary if the point-of-sale
equipment is inoperative;
(13) Operate a dispensary if the State's cannabis
electronic verification system is inoperative;
(14) Have fewer than 2 people working at the dispensary
at any time while the dispensary is open;
(15) Be located within 1,500 feet of the property line
of a pre-existing dispensing organization;
(16) Sell clones or any other live plant material;
(17) Sell cannabis, cannabis concentrate, or
cannabis-infused products in combination or bundled with
each other or any other items for one price, and each item
of cannabis, concentrate, or cannabis-infused product must
be separately identified by quantity and price on the
receipt;
(18) Violate any other requirements or prohibitions
set by Department rules.
(q) It is unlawful for any person having an Early Approval
Adult Use Cannabis Dispensing Organization License, a
Conditional Adult Use Cannabis Dispensing Organization, an

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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, transported,
manufactured, or distributed by any other cultivator,
transporter, or infuser, and any provision in any contract

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violative of this Section shall render the whole of such
contract void and no action shall be brought thereon in any
court.
(s) A dispensing organization must carry liability
insurance coverage in an amount that is at least equal to the
amount for which a seller of alcoholic liquor is liable under
subsection (a) of Section 6-21 of the Liquor Control Act of
1934.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)