103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3940
 
Introduced 5/1/2024, by Sen. Kimberly A. Lightford
 
SYNOPSIS AS INTRODUCED:

See Index
 Amends The Department of Professional Regulation Law of the Civil Administrative Code of Illinois, makes changes concerning confidentiality regarding the Office of Executive Inspector General; makes conforming changes. Amends the Illinois Procurement Code. Provides that the exemption in the Code relating to implementing the Cannabis Regulation and Tax Act shall be 8 years (instead of 5 years) after June 25, 2019. Amends the State Finance Act. Changes the name of the Local Cannabis Consumer Excise Tax Trust Fund to the Local Cannabis Retailers' Occupation Tax Trust Fund. Amends the Retailers' Occupation Tax Act. Specifies that it is a purpose of the Act for the Department of Revenue to report certain cannabis-related tax and business district tax revenues. Amends the Counties Code and the Illinois Municipal Code. Makes changes in provisions concerning limitations on the home rule powers of counties and municipalities. Amends the Cannabis Regulation and Tax Act. Adds and makes changes to various definitions. Authorizes the Department of Agriculture and the Department of Financial and Professional Regulation to establish, by rule, certain market protections. Requires the Department of Agriculture to license cannabis laboratories. Provides for the repeal of provisions establishing cultivator taxes and craft grower taxes. Amends the Tobacco Accessories and Smoking Herbs Control Act. Deletes a provision which specifies that the sale and possession of marijuana and hashish is illegal. Makes other changes. Effective immediately.


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A BILL FOR
 
SB3940LRB103 40496 RJT 72952 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 Department of Professional Regulation Law 
5of the Civil Administrative Code of Illinois is amended by 
6changing Section 2105-117 as follows:

7 (20 ILCS 2105/2105-117)
8 Sec. 2105-117. Confidentiality. All information collected 
9by the Department in the course of an examination or 
10investigation of a licensee, registrant, or applicant, 
11including, but not limited to, any complaint against a 
12licensee or registrant filed with the Department and 
13information collected to investigate any such complaint, shall 
14be maintained for the confidential use of the Department and 
15shall not be disclosed. The Department may not disclose the 
16information to anyone other than law enforcement officials, 
17other regulatory agencies that have an appropriate regulatory 
18interest as determined by the Director, the Office of 
19Executive Inspector General, or a party presenting a lawful 
20subpoena to the Department. Information and documents 
21disclosed to a federal, State, county, or local law 
22enforcement agency, including the Executive Inspector General 
23shall not be disclosed by the agency for any purpose to any 
 
 
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1other agency or person, except as necessary to those involved 
2in enforcing the State Officials and Employees Ethics Act. A 
3formal complaint filed against a licensee or registrant by the 
4Department or any order issued by the Department against a 
5licensee, registrant, or applicant shall be a public record, 
6except as otherwise prohibited by law. 
7(Source: P.A. 99-227, eff. 8-3-15.)

8 Section 10. The Illinois Procurement Code is amended by 
9changing Section 1-10 as follows:

10 (30 ILCS 500/1-10)
11 Sec. 1-10. Application. 
12 (a) This Code applies only to procurements for which 
13bidders, offerors, potential contractors, or contractors were 
14first solicited on or after July 1, 1998. This Code shall not 
15be construed to affect or impair any contract, or any 
16provision of a contract, entered into based on a solicitation 
17prior to the implementation date of this Code as described in 
18Article 99, including, but not limited to, any covenant 
19entered into with respect to any revenue bonds or similar 
20instruments. All procurements for which contracts are 
21solicited between the effective date of Articles 50 and 99 and 
22July 1, 1998 shall be substantially in accordance with this 
23Code and its intent.
24 (b) This Code shall apply regardless of the source of the 
 
 
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1funds with which the contracts are paid, including federal 
2assistance moneys. This Code shall not apply to:
3  (1) Contracts between the State and its political 
4 subdivisions or other governments, or between State 
5 governmental bodies, except as specifically provided in 
6 this Code.
7  (2) Grants, except for the filing requirements of 
8 Section 20-80.
9  (3) Purchase of care, except as provided in Section 
10 5-30.6 of the Illinois Public Aid Code and this Section.
11  (4) Hiring of an individual as an employee and not as 
12 an independent contractor, whether pursuant to an 
13 employment code or policy or by contract directly with 
14 that individual.
15  (5) Collective bargaining contracts.
16  (6) Purchase of real estate, except that notice of 
17 this type of contract with a value of more than $25,000 
18 must be published in the Procurement Bulletin within 10 
19 calendar days after the deed is recorded in the county of 
20 jurisdiction. The notice shall identify the real estate 
21 purchased, the names of all parties to the contract, the 
22 value of the contract, and the effective date of the 
23 contract.
24  (7) Contracts necessary to prepare for anticipated 
25 litigation, enforcement actions, or investigations, 
26 provided that the chief legal counsel to the Governor 
 
 
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1 shall give his or her prior approval when the procuring 
2 agency is one subject to the jurisdiction of the Governor, 
3 and provided that the chief legal counsel of any other 
4 procuring entity subject to this Code shall give his or 
5 her prior approval when the procuring entity is not one 
6 subject to the jurisdiction of the Governor.
7  (8) (Blank).
8  (9) Procurement expenditures by the Illinois 
9 Conservation Foundation when only private funds are used.
10  (10) (Blank). 
11  (11) Public-private agreements entered into according 
12 to the procurement requirements of Section 20 of the 
13 Public-Private Partnerships for Transportation Act and 
14 design-build agreements entered into according to the 
15 procurement requirements of Section 25 of the 
16 Public-Private Partnerships for Transportation Act.
17  (12) (A) Contracts for legal, financial, and other 
18 professional and artistic services entered into by the 
19 Illinois Finance Authority in which the State of Illinois 
20 is not obligated. Such contracts shall be awarded through 
21 a competitive process authorized by the members of the 
22 Illinois Finance Authority and are subject to Sections 
23 5-30, 20-160, 50-13, 50-20, 50-35, and 50-37 of this Code, 
24 as well as the final approval by the members of the 
25 Illinois Finance Authority of the terms of the contract.
26  (B) Contracts for legal and financial services entered 
 
 
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1 into by the Illinois Housing Development Authority in 
2 connection with the issuance of bonds in which the State 
3 of Illinois is not obligated. Such contracts shall be 
4 awarded through a competitive process authorized by the 
5 members of the Illinois Housing Development Authority and 
6 are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35, 
7 and 50-37 of this Code, as well as the final approval by 
8 the members of the Illinois Housing Development Authority 
9 of the terms of the contract. 
10  (13) Contracts for services, commodities, and 
11 equipment to support the delivery of timely forensic 
12 science services in consultation with and subject to the 
13 approval of the Chief Procurement Officer as provided in 
14 subsection (d) of Section 5-4-3a of the Unified Code of 
15 Corrections, except for the requirements of Sections 
16 20-60, 20-65, 20-70, and 20-160 and Article 50 of this 
17 Code; however, the Chief Procurement Officer may, in 
18 writing with justification, waive any certification 
19 required under Article 50 of this Code. For any contracts 
20 for services which are currently provided by members of a 
21 collective bargaining agreement, the applicable terms of 
22 the collective bargaining agreement concerning 
23 subcontracting shall be followed.
24  On and after January 1, 2019, this paragraph (13), 
25 except for this sentence, is inoperative. 
26  (14) Contracts for participation expenditures required 
 
 
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1 by a domestic or international trade show or exhibition of 
2 an exhibitor, member, or sponsor.
3  (15) Contracts with a railroad or utility that 
4 requires the State to reimburse the railroad or utilities 
5 for the relocation of utilities for construction or other 
6 public purpose. Contracts included within this paragraph 
7 (15) shall include, but not be limited to, those 
8 associated with: relocations, crossings, installations, 
9 and maintenance. For the purposes of this paragraph (15), 
10 "railroad" means any form of non-highway ground 
11 transportation that runs on rails or electromagnetic 
12 guideways and "utility" means: (1) public utilities as 
13 defined in Section 3-105 of the Public Utilities Act, (2) 
14 telecommunications carriers as defined in Section 13-202 
15 of the Public Utilities Act, (3) electric cooperatives as 
16 defined in Section 3.4 of the Electric Supplier Act, (4) 
17 telephone or telecommunications cooperatives as defined in 
18 Section 13-212 of the Public Utilities Act, (5) rural 
19 water or waste water systems with 10,000 connections or 
20 less, (6) a holder as defined in Section 21-201 of the 
21 Public Utilities Act, and (7) municipalities owning or 
22 operating utility systems consisting of public utilities 
23 as that term is defined in Section 11-117-2 of the 
24 Illinois Municipal Code. 
25  (16) Procurement expenditures necessary for the 
26 Department of Public Health to provide the delivery of 
 
 
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1 timely newborn screening services in accordance with the 
2 Newborn Metabolic Screening Act. 
3  (17) Procurement expenditures necessary for the 
4 Department of Agriculture, the Department of Financial and 
5 Professional Regulation, the Department of Human Services, 
6 and the Department of Public Health to implement the 
7 Compassionate Use of Medical Cannabis Program and Opioid 
8 Alternative Pilot Program requirements and ensure access 
9 to medical cannabis for patients with debilitating medical 
10 conditions in accordance with the Compassionate Use of 
11 Medical Cannabis Program Act.
12  (18) This Code does not apply to any procurements 
13 necessary for the Department of Agriculture, the 
14 Department of Financial and Professional Regulation, the 
15 Department of Human Services, the Department of Commerce 
16 and Economic Opportunity, and the Department of Public 
17 Health to implement the Cannabis Regulation and Tax Act if 
18 the applicable agency has made a good faith determination 
19 that it is necessary and appropriate for the expenditure 
20 to fall within this exemption and if the process is 
21 conducted in a manner substantially in accordance with the 
22 requirements of Sections 20-160, 25-60, 30-22, 50-5, 
23 50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35, 
24 50-36, 50-37, 50-38, and 50-50 of this Code; however, for 
25 Section 50-35, compliance applies only to contracts or 
26 subcontracts over $100,000. Notice of each contract 
 
 
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1 entered into under this paragraph (18) that is related to 
2 the procurement of goods and services identified in 
3 paragraph (1) through (9) of this subsection shall be 
4 published in the Procurement Bulletin within 14 calendar 
5 days after contract execution. The Chief Procurement 
6 Officer shall prescribe the form and content of the 
7 notice. Each agency shall provide the Chief Procurement 
8 Officer, on a monthly basis, in the form and content 
9 prescribed by the Chief Procurement Officer, a report of 
10 contracts that are related to the procurement of goods and 
11 services identified in this subsection. At a minimum, this 
12 report shall include the name of the contractor, a 
13 description of the supply or service provided, the total 
14 amount of the contract, the term of the contract, and the 
15 exception to this Code utilized. A copy of any or all of 
16 these contracts shall be made available to the Chief 
17 Procurement Officer immediately upon request. The Chief 
18 Procurement Officer shall submit a report to the Governor 
19 and General Assembly no later than November 1 of each year 
20 that includes, at a minimum, an annual summary of the 
21 monthly information reported to the Chief Procurement 
22 Officer. This exemption becomes inoperative 8 5 years 
23 after June 25, 2019 (the effective date of Public Act 
24 101-27).
25  (19) Acquisition of modifications or adjustments, 
26 limited to assistive technology devices and assistive 
 
 
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1 technology services, adaptive equipment, repairs, and 
2 replacement parts to provide reasonable accommodations (i) 
3 that enable a qualified applicant with a disability to 
4 complete the job application process and be considered for 
5 the position such qualified applicant desires, (ii) that 
6 modify or adjust the work environment to enable a 
7 qualified current employee with a disability to perform 
8 the essential functions of the position held by that 
9 employee, (iii) to enable a qualified current employee 
10 with a disability to enjoy equal benefits and privileges 
11 of employment as are enjoyed by other similarly situated 
12 employees without disabilities, and (iv) that allow a 
13 customer, client, claimant, or member of the public 
14 seeking State services full use and enjoyment of and 
15 access to its programs, services, or benefits. 
16  For purposes of this paragraph (19):
17  "Assistive technology devices" means any item, piece 
18 of equipment, or product system, whether acquired 
19 commercially off the shelf, modified, or customized, that 
20 is used to increase, maintain, or improve functional 
21 capabilities of individuals with disabilities.
22  "Assistive technology services" means any service that 
23 directly assists an individual with a disability in 
24 selection, acquisition, or use of an assistive technology 
25 device.
26  "Qualified" has the same meaning and use as provided 
 
 
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1 under the federal Americans with Disabilities Act when 
2 describing an individual with a disability. 
3  (20) Procurement expenditures necessary for the 
4 Illinois Commerce Commission to hire third-party 
5 facilitators pursuant to Sections 16-105.17 and 16-108.18 
6 of the Public Utilities Act or an ombudsman pursuant to 
7 Section 16-107.5 of the Public Utilities Act, a 
8 facilitator pursuant to Section 16-105.17 of the Public 
9 Utilities Act, or a grid auditor pursuant to Section 
10 16-105.10 of the Public Utilities Act. 
11  (21) Procurement expenditures for the purchase, 
12 renewal, and expansion of software, software licenses, or 
13 software maintenance agreements that support the efforts 
14 of the Illinois State Police to enforce, regulate, and 
15 administer the Firearm Owners Identification Card Act, the 
16 Firearm Concealed Carry Act, the Firearms Restraining 
17 Order Act, the Firearm Dealer License Certification Act, 
18 the Law Enforcement Agencies Data System (LEADS), the 
19 Uniform Crime Reporting Act, the Criminal Identification 
20 Act, the Illinois Uniform Conviction Information Act, and 
21 the Gun Trafficking Information Act, or establish or 
22 maintain record management systems necessary to conduct 
23 human trafficking investigations or gun trafficking or 
24 other stolen firearm investigations. This paragraph (21) 
25 applies to contracts entered into on or after January 10, 
26 2023 (the effective date of Public Act 102-1116) and the 
 
 
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1 renewal of contracts that are in effect on January 10, 
2 2023 (the effective date of Public Act 102-1116). 
3  (22) Contracts for project management services and 
4 system integration services required for the completion of 
5 the State's enterprise resource planning project. This 
6 exemption becomes inoperative 5 years after June 7, 2023 
7 (the effective date of the changes made to this Section by 
8 Public Act 103-8). This paragraph (22) applies to 
9 contracts entered into on or after June 7, 2023 (the 
10 effective date of the changes made to this Section by 
11 Public Act 103-8) and the renewal of contracts that are in 
12 effect on June 7, 2023 (the effective date of the changes 
13 made to this Section by Public Act 103-8). 
14  (23) Procurements necessary for the Department of 
15 Insurance to implement the Illinois Health Benefits 
16 Exchange Law if the Department of Insurance has made a 
17 good faith determination that it is necessary and 
18 appropriate for the expenditure to fall within this 
19 exemption. The procurement process shall be conducted in a 
20 manner substantially in accordance with the requirements 
21 of Sections 20-160 and 25-60 and Article 50 of this Code. A 
22 copy of these contracts shall be made available to the 
23 Chief Procurement Officer immediately upon request. This 
24 paragraph is inoperative 5 years after June 27, 2023 (the 
25 effective date of Public Act 103-103). 
26  (24) (22) Contracts for public education programming, 
 
 
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1 noncommercial sustaining announcements, public service 
2 announcements, and public awareness and education 
3 messaging with the nonprofit trade associations of the 
4 providers of those services that inform the public on 
5 immediate and ongoing health and safety risks and hazards. 
6 Notwithstanding any other provision of law, for contracts 
7with an annual value of more than $100,000 entered into on or 
8after October 1, 2017 under an exemption provided in any 
9paragraph of this subsection (b), except paragraph (1), (2), 
10or (5), each State agency shall post to the appropriate 
11procurement bulletin the name of the contractor, a description 
12of the supply or service provided, the total amount of the 
13contract, the term of the contract, and the exception to the 
14Code utilized. The chief procurement officer shall submit a 
15report to the Governor and General Assembly no later than 
16November 1 of each year that shall include, at a minimum, an 
17annual summary of the monthly information reported to the 
18chief procurement officer. 
19 (c) This Code does not apply to the electric power 
20procurement process provided for under Section 1-75 of the 
21Illinois Power Agency Act and Section 16-111.5 of the Public 
22Utilities Act. This Code does not apply to the procurement of 
23technical and policy experts pursuant to Section 1-129 of the 
24Illinois Power Agency Act. 
25 (d) Except for Section 20-160 and Article 50 of this Code, 
26and as expressly required by Section 9.1 of the Illinois 
 
 
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1Lottery Law, the provisions of this Code do not apply to the 
2procurement process provided for under Section 9.1 of the 
3Illinois Lottery Law. 
4 (e) This Code does not apply to the process used by the 
5Capital Development Board to retain a person or entity to 
6assist the Capital Development Board with its duties related 
7to the determination of costs of a clean coal SNG brownfield 
8facility, as defined by Section 1-10 of the Illinois Power 
9Agency Act, as required in subsection (h-3) of Section 9-220 
10of the Public Utilities Act, including calculating the range 
11of capital costs, the range of operating and maintenance 
12costs, or the sequestration costs or monitoring the 
13construction of clean coal SNG brownfield facility for the 
14full duration of construction.
15 (f) (Blank). 
16 (g) (Blank).
17 (h) This Code does not apply to the process to procure or 
18contracts entered into in accordance with Sections 11-5.2 and 
1911-5.3 of the Illinois Public Aid Code. 
20 (i) Each chief procurement officer may access records 
21necessary to review whether a contract, purchase, or other 
22expenditure is or is not subject to the provisions of this 
23Code, unless such records would be subject to attorney-client 
24privilege. 
25 (j) This Code does not apply to the process used by the 
26Capital Development Board to retain an artist or work or works 
 
 
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1of art as required in Section 14 of the Capital Development 
2Board Act. 
3 (k) This Code does not apply to the process to procure 
4contracts, or contracts entered into, by the State Board of 
5Elections or the State Electoral Board for hearing officers 
6appointed pursuant to the Election Code. 
7 (l) This Code does not apply to the processes used by the 
8Illinois Student Assistance Commission to procure supplies and 
9services paid for from the private funds of the Illinois 
10Prepaid Tuition Fund. As used in this subsection (l), "private 
11funds" means funds derived from deposits paid into the 
12Illinois Prepaid Tuition Trust Fund and the earnings thereon. 
13 (m) This Code shall apply regardless of the source of 
14funds with which contracts are paid, including federal 
15assistance moneys. Except as specifically provided in this 
16Code, this Code shall not apply to procurement expenditures 
17necessary for the Department of Public Health to conduct the 
18Healthy Illinois Survey in accordance with Section 2310-431 of 
19the Department of Public Health Powers and Duties Law of the 
20Civil Administrative Code of Illinois. 
21(Source: P.A. 102-175, eff. 7-29-21; 102-483, eff 1-1-22; 
22102-558, eff. 8-20-21; 102-600, eff. 8-27-21; 102-662, eff. 
239-15-21; 102-721, eff. 1-1-23; 102-813, eff. 5-13-22; 
24102-1116, eff. 1-10-23; 103-8, eff. 6-7-23; 103-103, eff. 
256-27-23; 103-570, eff. 1-1-24; 103-580, eff. 12-8-23; revised 
261-2-24.)

 
 
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1 Section 15. The State Finance Act is amended by changing 
2Section 5.916 as follows:

3 (30 ILCS 105/5.916)
4 Sec. 5.916. The Local Cannabis Retailers' Occupation 
5Consumer Excise Tax Trust Fund.
6(Source: P.A. 101-27, eff. 6-25-19; 102-558, eff. 8-20-21.)

7 Section 20. The Retailers' Occupation Tax Act is amended 
8by changing Section 11 as follows:

9 (35 ILCS 120/11) (from Ch. 120, par. 450)
10 Sec. 11. All information received by the Department from 
11returns filed under this Act, or from any investigation 
12conducted under this Act, shall be confidential, except for 
13official purposes, and any person, including a third party as 
14defined in the Local Government Revenue Recapture Act, who 
15divulges any such information in any manner, except in 
16accordance with a proper judicial order or as otherwise 
17provided by law, including the Local Government Revenue 
18Recapture Act, shall be guilty of a Class B misdemeanor with a 
19fine not to exceed $7,500.
20 Nothing in this Act prevents the Director of Revenue from 
21publishing or making available to the public the names and 
22addresses of persons filing returns under this Act, or 
 
 
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1reasonable statistics concerning the operation of the tax by 
2grouping the contents of returns so the information in any 
3individual return is not disclosed.
4 Nothing in this Act prevents the Director of Revenue from 
5divulging to the United States Government or the government of 
6any other state, or any officer or agency thereof, for 
7exclusively official purposes, information received by the 
8Department in administering this Act, provided that such other 
9governmental agency agrees to divulge requested tax 
10information to the Department.
11 The Department's furnishing of information derived from a 
12taxpayer's return or from an investigation conducted under 
13this Act to the surety on a taxpayer's bond that has been 
14furnished to the Department under this Act, either to provide 
15notice to such surety of its potential liability under the 
16bond or, in order to support the Department's demand for 
17payment from such surety under the bond, is an official 
18purpose within the meaning of this Section.
19 The furnishing upon request of information obtained by the 
20Department from returns filed under this Act or investigations 
21conducted under this Act to the Illinois Liquor Control 
22Commission for official use is deemed to be an official 
23purpose within the meaning of this Section.
24 Notice to a surety of potential liability shall not be 
25given unless the taxpayer has first been notified, not less 
26than 10 days prior thereto, of the Department's intent to so 
 
 
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1notify the surety.
2 The furnishing upon request of the Auditor General, or his 
3authorized agents, for official use, of returns filed and 
4information related thereto under this Act is deemed to be an 
5official purpose within the meaning of this Section.
6 Where an appeal or a protest has been filed on behalf of a 
7taxpayer, the furnishing upon request of the attorney for the 
8taxpayer of returns filed by the taxpayer and information 
9related thereto under this Act is deemed to be an official 
10purpose within the meaning of this Section.
11 The furnishing of financial information to a municipality 
12or county, upon request of the chief executive officer 
13thereof, is an official purpose within the meaning of this 
14Section, provided the municipality or county agrees in writing 
15to the requirements of this Section. Information provided to 
16municipalities and counties under this paragraph shall be 
17limited to: (1) the business name; (2) the business address; 
18(3) the standard classification number assigned to the 
19business; (4) net revenue distributed to the requesting 
20municipality or county that is directly related to the 
21requesting municipality's or county's local share of the 
22proceeds under the Use Tax Act, the Service Use Tax Act, the 
23Service Occupation Tax Act, and the Retailers' Occupation Tax 
24Act distributed from the Local Government Tax Fund, and, if 
25applicable, any locally imposed retailers' occupation tax or 
26service occupation tax; and (5) a listing of all businesses 
 
 
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1within the requesting municipality or county by account 
2identification number and address. On and after July 1, 2015, 
3the furnishing of financial information to municipalities and 
4counties under this paragraph may be by electronic means. If 
5the Department may furnish financial information to a 
6municipality or county under this paragraph, then the chief 
7executive officer of the municipality or county may, in turn, 
8provide that financial information to a third party pursuant 
9to the Local Government Revenue Recapture Act. However, the 
10third party shall agree in writing to the requirements of this 
11Section and meet the requirements of the Local Government 
12Revenue Recapture Act. 
13 Information so provided shall be subject to all 
14confidentiality provisions of this Section. The written 
15agreement shall provide for reciprocity, limitations on 
16access, disclosure, and procedures for requesting information. 
17For the purposes of furnishing financial information to a 
18municipality or county under this Section, "chief executive 
19officer" means the mayor of a city, the village board 
20president of a village, the mayor or president of an 
21incorporated town, the county executive of a county that has 
22adopted the county executive form of government, the president 
23of the board of commissioners of Cook County, or the 
24chairperson of the county board or board of county 
25commissioners of any other county. 
26 The Department may make available to the Board of Trustees 
 
 
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1of any Metro East Mass Transit District information contained 
2on transaction reporting returns required to be filed under 
3Section 3 of this Act that report sales made within the 
4boundary of the taxing authority of that Metro East Mass 
5Transit District, as provided in Section 5.01 of the Local 
6Mass Transit District Act. The disclosure shall be made 
7pursuant to a written agreement between the Department and the 
8Board of Trustees of a Metro East Mass Transit District, which 
9is an official purpose within the meaning of this Section. The 
10written agreement between the Department and the Board of 
11Trustees of a Metro East Mass Transit District shall provide 
12for reciprocity, limitations on access, disclosure, and 
13procedures for requesting information. Information so provided 
14shall be subject to all confidentiality provisions of this 
15Section.
16 The Director may make available to any State agency, 
17including the Illinois Supreme Court, which licenses persons 
18to engage in any occupation, information that a person 
19licensed by such agency has failed to file returns under this 
20Act or pay the tax, penalty and interest shown therein, or has 
21failed to pay any final assessment of tax, penalty or interest 
22due under this Act. The Director may make available to any 
23State agency, including the Illinois Supreme Court, 
24information regarding whether a bidder, contractor, or an 
25affiliate of a bidder or contractor has failed to collect and 
26remit Illinois Use tax on sales into Illinois, or any tax under 
 
 
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1this Act or pay the tax, penalty, and interest shown therein, 
2or has failed to pay any final assessment of tax, penalty, or 
3interest due under this Act, for the limited purpose of 
4enforcing bidder and contractor certifications. The Director 
5may make available to units of local government and school 
6districts that require bidder and contractor certifications, 
7as set forth in Sections 50-11 and 50-12 of the Illinois 
8Procurement Code, information regarding whether a bidder, 
9contractor, or an affiliate of a bidder or contractor has 
10failed to collect and remit Illinois Use tax on sales into 
11Illinois, file returns under this Act, or pay the tax, 
12penalty, and interest shown therein, or has failed to pay any 
13final assessment of tax, penalty, or interest due under this 
14Act, for the limited purpose of enforcing bidder and 
15contractor certifications. For purposes of this Section, the 
16term "affiliate" means any entity that (1) directly, 
17indirectly, or constructively controls another entity, (2) is 
18directly, indirectly, or constructively controlled by another 
19entity, or (3) is subject to the control of a common entity. 
20For purposes of this Section, an entity controls another 
21entity if it owns, directly or individually, more than 10% of 
22the voting securities of that entity. As used in this Section, 
23the term "voting security" means a security that (1) confers 
24upon the holder the right to vote for the election of members 
25of the board of directors or similar governing body of the 
26business or (2) is convertible into, or entitles the holder to 
 
 
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1receive upon its exercise, a security that confers such a 
2right to vote. A general partnership interest is a voting 
3security.
4 The Director may make available to any State agency, 
5including the Illinois Supreme Court, units of local 
6government, and school districts, information regarding 
7whether a bidder or contractor is an affiliate of a person who 
8is not collecting and remitting Illinois Use taxes for the 
9limited purpose of enforcing bidder and contractor 
10certifications.
11 The Director may also make available to the Secretary of 
12State information that a limited liability company, which has 
13filed articles of organization with the Secretary of State, or 
14corporation which has been issued a certificate of 
15incorporation by the Secretary of State has failed to file 
16returns under this Act or pay the tax, penalty and interest 
17shown therein, or has failed to pay any final assessment of 
18tax, penalty or interest due under this Act. An assessment is 
19final when all proceedings in court for review of such 
20assessment have terminated or the time for the taking thereof 
21has expired without such proceedings being instituted.
22 It is an official purpose within the meaning of this 
23Section for the Department to publicly report the aggregate 
24amount of tax revenues from a given tax return type that the 
25Department allocates from a State fund or State trust fund to 
26each unit of local government, such as the amount of the 
 
 
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1monthly allocation to each unit of local government of 
2Municipal Cannabis Retailers' Occupation Tax, County Cannabis 
3Retailers' Occupation Tax, or Business District Retailers' 
4Occupation Tax, notwithstanding that some units of local 
5government may have as few as one retailer reporting revenues 
6for a given tax return type in any given reporting period. 
7 The Director shall make available for public inspection in 
8the Department's principal office and for publication, at 
9cost, administrative decisions issued on or after January 1, 
101995. These decisions are to be made available in a manner so 
11that the following taxpayer information is not disclosed:
12  (1) The names, addresses, and identification numbers 
13 of the taxpayer, related entities, and employees.
14  (2) At the sole discretion of the Director, trade 
15 secrets or other confidential information identified as 
16 such by the taxpayer, no later than 30 days after receipt 
17 of an administrative decision, by such means as the 
18 Department shall provide by rule.
19 The Director shall determine the appropriate extent of the 
20deletions allowed in paragraph (2). In the event the taxpayer 
21does not submit deletions, the Director shall make only the 
22deletions specified in paragraph (1).
23 The Director shall make available for public inspection 
24and publication an administrative decision within 180 days 
25after the issuance of the administrative decision. The term 
26"administrative decision" has the same meaning as defined in 
 
 
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1Section 3-101 of Article III of the Code of Civil Procedure. 
2Costs collected under this Section shall be paid into the Tax 
3Compliance and Administration Fund.
4 Nothing contained in this Act shall prevent the Director 
5from divulging information to any person pursuant to a request 
6or authorization made by the taxpayer or by an authorized 
7representative of the taxpayer.
8 The furnishing of information obtained by the Department 
9from returns filed under Public Act 101-10 to the Department 
10of Transportation for purposes of compliance with Public Act 
11101-10 regarding aviation fuel is deemed to be an official 
12purpose within the meaning of this Section. 
13 The Director may make information available to the 
14Secretary of State for the purpose of administering Section 
155-901 of the Illinois Vehicle Code. 
16(Source: P.A. 101-10, eff. 6-5-19; 101-628, eff. 6-1-20; 
17102-558, eff. 8-20-21; 102-941, eff. 7-1-22.)

18 Section 25. The Counties Code is amended by changing 
19Section 5-1009 as follows:

20 (55 ILCS 5/5-1009) (from Ch. 34, par. 5-1009)
21 Sec. 5-1009. Limitation on home rule powers. Except as 
22provided in Sections 5-1006, 5-1006.5, 5-1006.8, 5-1007, and 
235-1008, on and after September 1, 1990, no home rule county has 
24the authority to impose, pursuant to its home rule authority, 
 
 
SB3940- 24 -LRB103 40496 RJT 72952 b


1a retailers' occupation tax, service occupation tax, use tax, 
2sales tax or other tax on the use, sale or purchase of tangible 
3personal property based on the gross receipts from such sales 
4or the selling or purchase price of said tangible personal 
5property. Notwithstanding the foregoing, this Section does not 
6preempt any home rule imposed tax such as the following: (1) a 
7tax on alcoholic beverages, whether based on gross receipts, 
8volume sold or any other measurement; (2) a tax based on the 
9number of units of cigarettes or tobacco products; (3) a tax, 
10however measured, based on the use of a hotel or motel room or 
11similar facility; (4) a tax, however measured, on the sale or 
12transfer of real property; (5) a tax, however measured, on 
13lease receipts; (6) a tax on food prepared for immediate 
14consumption and on alcoholic beverages sold by a business 
15which provides for on premise consumption of said food or 
16alcoholic beverages; or (7) other taxes not based on the 
17selling or purchase price or gross receipts from the use, sale 
18or purchase of tangible personal property, other than a tax on 
19cannabis in any of its forms, which is prohibited except as 
20otherwise provided in this Section. This Section does not 
21preempt a home rule county from imposing a tax, however 
22measured, on the use, for consideration, of a parking lot, 
23garage, or other parking facility. 
24 On and after December 1, 2019, no home rule county has the 
25authority to impose, pursuant to its home rule authority, a 
26tax, however measured, on sales of aviation fuel, as defined 
 
 
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1in Section 3 of the Retailers' Occupation Tax Act, unless the 
2tax revenue is expended for airport-related purposes. For 
3purposes of this Section, "airport-related purposes" has the 
4meaning ascribed in Section 6z-20.2 of the State Finance Act. 
5Aviation fuel shall be excluded from tax only for so long as 
6the revenue use requirements of 49 U.S.C. 47017(b) and 49 
7U.S.C. 47133 are binding on the county. 
8 This Section is a limitation, pursuant to subsection (g) 
9of Section 6 of Article VII of the Illinois Constitution, on 
10the power of home rule units to tax. The changes made to this 
11Section by Public Act 101-10 are a denial and limitation of 
12home rule powers and functions under subsection (g) of Section 
136 of Article VII of the Illinois Constitution. 
14(Source: P.A. 101-10, eff. 6-5-19; 101-27, eff. 6-25-19; 
15102-558, eff. 8-20-21.)

16 Section 30. The Illinois Municipal Code is amended by 
17changing Section 8-11-6a as follows:

18 (65 ILCS 5/8-11-6a) (from Ch. 24, par. 8-11-6a)
19 Sec. 8-11-6a. Home rule municipalities; preemption of 
20certain taxes. Except as provided in Sections 8-11-1, 8-11-5, 
218-11-6, 8-11-6b, 8-11-6c, 8-11-23, and 11-74.3-6 on and after 
22September 1, 1990, no home rule municipality has the authority 
23to impose, pursuant to its home rule authority, a retailer's 
24occupation tax, service occupation tax, use tax, sales tax or 
 
 
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1other tax on the use, sale or purchase of tangible personal 
2property based on the gross receipts from such sales or the 
3selling or purchase price of said tangible personal property. 
4Notwithstanding the foregoing, this Section does not preempt 
5any home rule imposed tax such as the following: (1) a tax on 
6alcoholic beverages, whether based on gross receipts, volume 
7sold or any other measurement; (2) a tax based on the number of 
8units of cigarettes or tobacco products (provided, however, 
9that a home rule municipality that has not imposed a tax based 
10on the number of units of cigarettes or tobacco products 
11before July 1, 1993, shall not impose such a tax after that 
12date); (3) a tax, however measured, based on the use of a hotel 
13or motel room or similar facility; (4) a tax, however 
14measured, on the sale or transfer of real property; (5) a tax, 
15however measured, on lease receipts; (6) a tax on food 
16prepared for immediate consumption and on alcoholic beverages 
17sold by a business which provides for on premise consumption 
18of said food or alcoholic beverages; or (7) other taxes not 
19based on the selling or purchase price or gross receipts from 
20the use, sale or purchase of tangible personal property, other 
21than a tax on cannabis in any of its forms, which is prohibited 
22except as otherwise provided in this Section. This Section 
23does not preempt a home rule municipality with a population of 
24more than 2,000,000 from imposing a tax, however measured, on 
25the use, for consideration, of a parking lot, garage, or other 
26parking facility. This Section is not intended to affect any 
 
 
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1existing tax on food and beverages prepared for immediate 
2consumption on the premises where the sale occurs, or any 
3existing tax on alcoholic beverages, or any existing tax 
4imposed on the charge for renting a hotel or motel room, which 
5was in effect January 15, 1988, or any extension of the 
6effective date of such an existing tax by ordinance of the 
7municipality imposing the tax, which extension is hereby 
8authorized, in any non-home rule municipality in which the 
9imposition of such a tax has been upheld by judicial 
10determination, nor is this Section intended to preempt the 
11authority granted by Public Act 85-1006. On and after December 
121, 2019, no home rule municipality has the authority to 
13impose, pursuant to its home rule authority, a tax, however 
14measured, on sales of aviation fuel, as defined in Section 3 of 
15the Retailers' Occupation Tax Act, unless the tax is not 
16subject to the revenue use requirements of 49 U.S.C. 47107(b) 
17and 49 U.S.C. 47133, or unless the tax revenue is expended for 
18airport-related purposes. For purposes of this Section, 
19"airport-related purposes" has the meaning ascribed in Section 
206z-20.2 of the State Finance Act. Aviation fuel shall be 
21excluded from tax only if, and for so long as, the revenue use 
22requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
23binding on the municipality. This Section is a limitation, 
24pursuant to subsection (g) of Section 6 of Article VII of the 
25Illinois Constitution, on the power of home rule units to tax. 
26The changes made to this Section by Public Act 101-10 are a 
 
 
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1denial and limitation of home rule powers and functions under 
2subsection (g) of Section 6 of Article VII of the Illinois 
3Constitution. 
4(Source: P.A. 101-10, eff. 6-5-19; 101-27, eff. 6-25-19; 
5101-593, eff. 12-4-19.)

6 Section 35. The Compassionate Use of Medical Cannabis 
7Program Act is amended by changing Sections 145 and 210 as 
8follows:

9 (410 ILCS 130/145)
10 Sec. 145. Confidentiality. 
11 (a) The following information received and records kept by 
12the Department of Public Health, Department of Financial and 
13Professional Regulation, Department of Agriculture, or 
14Illinois State Police, or Department of Commerce and Economic 
15Opportunity for purposes of administering this Act are subject 
16to all applicable federal privacy laws, confidential, and 
17exempt from the Freedom of Information Act, and not subject to 
18disclosure to any individual or public or private entity, 
19except as necessary for authorized employees of those 
20authorized agencies to perform official duties under this Act 
21and except as necessary to those involved in enforcing the 
22State Officials and Employees Ethics Act, and the following 
23information received and records kept by Department of Public 
24Health, Department of Agriculture, Department of Financial and 
 
 
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1Professional Regulation, Department of Commerce and Economic 
2Opportunity, and Illinois State Police, excluding any existing 
3or non-existing Illinois or national criminal history record 
4information as defined in subsection (d), may be disclosed to 
5each other upon request: 
6  (1) Applications and renewals, their contents, and all 
7 supporting information submitted by qualifying patients 
8 and designated caregivers, including information regarding 
9 their designated caregivers and certifying health care 
10 professionals. 
11  (2) Applications and renewals, their contents, and all 
12 supporting information submitted by or on behalf of 
13 cultivation centers and dispensing organizations in 
14 compliance with this Act, including their physical 
15 addresses. This does not preclude the release of ownership 
16 information of cannabis business establishment licenses. 
17  (3) The individual names and other information 
18 identifying persons to whom the Department of Public 
19 Health has issued registry identification cards. 
20  (4) Any dispensing information required to be kept 
21 under Section 135, Section 150, or Department of Public 
22 Health, Department of Agriculture, or Department of 
23 Financial and Professional Regulation rules shall identify 
24 cardholders and registered cultivation centers by their 
25 registry identification numbers and medical cannabis 
26 dispensing organizations by their registration number and 
 
 
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1 not contain names or other personally identifying 
2 information. 
3  (5) All medical records provided to the Department of 
4 Public Health in connection with an application for a 
5 registry card. 
6 (b) Nothing in this Section precludes the following: 
7  (1) Department of Agriculture, Department of Financial 
8 and Professional Regulation, or Public Health employees 
9 may notify law enforcement about falsified or fraudulent 
10 information submitted to the Departments if the employee 
11 who suspects that falsified or fraudulent information has 
12 been submitted conferred with his or her supervisor and 
13 both agree that circumstances exist that warrant 
14 reporting. 
15  (2) If the employee conferred with his or her 
16 supervisor and both agree that circumstances exist that 
17 warrant reporting, Department of Public Health employees 
18 may notify the Department of Financial and Professional 
19 Regulation if there is reasonable cause to believe a 
20 certifying health care professional: 
21   (A) issued a written certification without a bona 
22 fide health care professional-patient relationship 
23 under this Act; 
24   (B) issued a written certification to a person who 
25 was not under the certifying health care 
26 professional's care for the debilitating medical 
 
 
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1 condition; or 
2   (C) failed to abide by the acceptable and 
3 prevailing standard of care when evaluating a 
4 patient's medical condition. 
5  (3) The Department of Public Health, Department of 
6 Agriculture, and Department of Financial and Professional 
7 Regulation may notify State or local law enforcement about 
8 apparent criminal violations of this Act if the employee 
9 who suspects the offense has conferred with his or her 
10 supervisor and both agree that circumstances exist that 
11 warrant reporting. 
12  (4) Medical cannabis cultivation center agents and 
13 medical cannabis dispensing organizations may notify the 
14 Department of Public Health, Department of Financial and 
15 Professional Regulation, or Department of Agriculture of a 
16 suspected violation or attempted violation of this Act or 
17 the rules issued under it. 
18  (5) Each Department may verify registry identification 
19 cards under Section 150. 
20  (6) The submission of the report to the General 
21 Assembly under Section 160. 
22 (b-5) Each Department responsible for licensure under this 
23Act shall publish on the Department's website a list of the 
24ownership information of cannabis business establishment 
25licensees under the Department's jurisdiction. The list shall 
26include, but shall not be limited to, the name of the person or 
 
 
SB3940- 32 -LRB103 40496 RJT 72952 b


1entity holding each cannabis business establishment license 
2and the address at which the entity is operating under this 
3Act. This list shall be published and updated monthly. 
4 (c) Except for any ownership information released pursuant 
5to subsection (b-5) or as otherwise authorized or required by 
6law, it is a Class B misdemeanor with a $1,000 fine for any 
7person, including an employee or official of the Department of 
8Public Health, Department of Financial and Professional 
9Regulation, or Department of Agriculture or another State 
10agency or local government, to breach the confidentiality of 
11information obtained under this Act. 
12 (d) The Department of Public Health, the Department of 
13Agriculture, the Illinois State Police, and the Department of 
14Financial and Professional Regulation shall not share or 
15disclose any existing or non-existing Illinois or national 
16criminal history record information. For the purposes of this 
17Section, "any existing or non-existing Illinois or national 
18criminal history record information" means any Illinois or 
19national criminal history record information, including but 
20not limited to the lack of or non-existence of these records. 
21(Source: P.A. 101-363, eff. 8-9-19; 102-98, eff. 7-15-21; 
22102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)

23 (410 ILCS 130/210)
24 Sec. 210. Returns. 
25 (a) This subsection (a) applies to returns due on or 
 
 
SB3940- 33 -LRB103 40496 RJT 72952 b


1before June 25, 2019 the effective date of this amendatory Act 
2of the 101st General Assembly. On or before the twentieth day 
3of each calendar month, every person subject to the tax 
4imposed under this Law during the preceding calendar month 
5shall file a return with the Department, stating:
6  (1) The name of the taxpayer;
7  (2) The number of ounces of medical cannabis sold to a 
8 dispensing organization or a registered qualifying patient 
9 during the preceding calendar month;
10  (3) The amount of tax due;
11  (4) The signature of the taxpayer; and
12  (5) Such other reasonable information as the 
13 Department may require.
14 If a taxpayer fails to sign a return within 30 days after 
15the proper notice and demand for signature by the Department, 
16the return shall be considered valid and any amount shown to be 
17due on the return shall be deemed assessed.
18 The taxpayer shall remit the amount of the tax due to the 
19Department at the time the taxpayer files his or her return.
20 (b) Beginning on June 25, 2019 the effective date of this 
21amendatory Act of the 101st General Assembly, Section 60-20 
2265-20 of the Cannabis Regulation and Tax Act shall apply to 
23returns filed and taxes paid under this Act to the same extent 
24as if those provisions were set forth in full in this Section. 
25(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

 
 
SB3940- 34 -LRB103 40496 RJT 72952 b


1 Section 40. The Cannabis Regulation and Tax Act is amended 
2by changing Sections 1-10, 5-10, 5-15, 7-10, 7-15, 10-15, 
315-25, 15-35, 15-35.10, 15-40, 15-50, 15-70, 20-15, 20-30, 
420-35, 20-45, 25-35, 30-30, 30-35, 30-45, 35-25, 35-30, 45-5, 
550-5, 55-30, 55-65, 60-10, 65-10, 65-38, and 65-42 and by 
6adding Sections 20-32, 30-31, and 30-32 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 
24cannabis business establishment. 
25 "Application points" means the number of points a 
 
 
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1Dispensary Applicant receives on an application for a 
2Conditional Adult Use Dispensing Organization License. 
3 "BLS Region" means a region in Illinois used by the United 
4States Bureau of Labor Statistics to gather and categorize 
5certain employment and wage data. The 17 such regions in 
6Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion, 
7Champaign-Urbana, Chicago-Naperville-Elgin, Danville, 
8Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria, 
9Rockford, St. Louis, Springfield, Northwest Illinois 
10nonmetropolitan area, West Central Illinois nonmetropolitan 
11area, East Central Illinois nonmetropolitan area, and South 
12Illinois nonmetropolitan area. 
13  (1) Bloomington (DeWitt County; McLean County),
14  (2) Cape Girardeau (Alexander County),
15  (3) Carbondale-Marion (Jackson County; Williamson 
16 County),
17  (4) Champaign-Urbana (Champaign County; Ford County; 
18 Piatt County),
19  (5) Chicago-Naperville-Elgin (Cook County; DeKalb 
20 County; DuPage County; Grundy County; Kane County; Kendall 
21 County; Lake County; McHenry County; Will County),
22  (6) Danville (Vermilion County),
23  (7) Davenport-Moline-Rock Island (Henry County; Mercer 
24 County; Rock Island County),
25  (8) Decatur (Macon County),
26  (9) Kankakee (Kankakee County),
 
 
SB3940- 36 -LRB103 40496 RJT 72952 b


1  (10) Peoria (Marshall County; Peoria County; Stark 
2 County; Tazewell County; Woodford County),
3  (11) Rockford (Boone County; Winnebago County),
4  (12) St. Louis (Bond County; Calhoun County; Clinton 
5 County; Jersey County; Madison County; Macoupin County; 
6 Monroe County; St. Clair County),
7  (13) Springfield (Menard County; Sangamon County),
8  (14) Northwest Illinois nonmetropolitan area (Bureau 
9 County; Carroll County; Jo Daviess County; LaSalle County; 
10 Lee County; Ogle County; Putnam County; Stephenson County; 
11 Whiteside County),
12  (15) West Central Illinois nonmetropolitan area (Adams 
13 County; Brown County; Cass County; Christian County; 
14 Fulton County; Greene County; Hancock County; Henderson 
15 County; Knox County; Livingston County; Logan County; 
16 Mason County; McDonough County; Montgomery County; Morgan 
17 County; Moultrie County; Pike County; Schuyler County; 
18 Scott County; Shelby County; Warren County),
19  (16) East Central Illinois nonmetropolitan area (Clark 
20 County; Clay County; Coles County; Crawford County; 
21 Cumberland County; Douglas County; Edgar County; Effingham 
22 County; Fayette County; Iroquois County; Jasper County; 
23 Lawrence County; Marion County; Richland County), and
24  (17) South Illinois nonmetropolitan area (Edwards 
25 County; Franklin County; Gallatin County; Hamilton County; 
26 Hardin County; Jefferson County; Johnson County; Massac 
 
 
SB3940- 37 -LRB103 40496 RJT 72952 b


1 County; Perry County; Pope County; Pulaski County; 
2 Randolph County; Saline County; Union County; Wabash 
3 County; Wayne County; White County).
4 "By lot" means a randomized method of choosing between 2 
5or more Eligible Tied Applicants or 2 or more Qualifying 
6Applicants.
7 "Cannabis" means marijuana, hashish, and other substances 
8that are identified as including any parts of the plant 
9Cannabis sativa and including derivatives or subspecies, such 
10as indica, of all strains of cannabis, whether growing or not; 
11the seeds thereof, the resin extracted from any part of the 
12plant; and any compound, manufacture, salt, derivative, 
13mixture, or preparation of the plant, its seeds, or resin, 
14including tetrahydrocannabinol (THC) and all other naturally 
15produced cannabinol derivatives, whether produced directly or 
16indirectly by extraction; however, "cannabis" does not include 
17the mature stalks of the plant, fiber produced from the 
18stalks, oil or cake made from the seeds of the plant, any other 
19compound, manufacture, salt, derivative, mixture, or 
20preparation of the mature stalks (except the resin extracted 
21from it), fiber, oil or cake, or the sterilized seed of the 
22plant that is incapable of germination. "Cannabis" does not 
23include industrial hemp as defined and authorized under the 
24Industrial Hemp Act. "Cannabis" also means cannabis flower, 
25concentrate, and cannabis-infused products.
26 "Cannabis business establishment" means a cultivation 
 
 
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1center, craft grower, processing organization, infuser 
2organization, dispensing organization, or transporting 
3organization.
4 "Cannabis concentrate" means a product derived from 
5cannabis that is produced by extracting cannabinoids, 
6including tetrahydrocannabinol (THC), from the plant through 
7the use of propylene glycol, glycerin, butter, olive oil, or 
8other typical cooking fats; water, ice, or dry ice; or butane, 
9propane, CO2, ethanol, or isopropanol and with the intended 
10use of smoking or making a cannabis-infused product. The use 
11of any other solvent is expressly prohibited unless and until 
12it is approved by the Department of Agriculture.
13 "Cannabis container" means a sealed or resealable, 
14traceable, container, or package used for the purpose of 
15containment of cannabis or cannabis-infused product during 
16transportation.
17 "Cannabis flower" means marijuana, hashish, and other 
18substances that are identified as including any parts of the 
19plant Cannabis sativa and including derivatives or subspecies, 
20such as indica, of all strains of cannabis; including raw 
21kief, leaves, and buds, but not resin that has been extracted 
22from any part of such plant; nor any compound, manufacture, 
23salt, derivative, mixture, or preparation of such plant, its 
24seeds, or resin.
25 "Cannabis-infused product" means a beverage, food, oil, 
26ointment, tincture, topical formulation, or another product 
 
 
SB3940- 39 -LRB103 40496 RJT 72952 b


1containing cannabis or cannabis concentrate that is not 
2intended to be smoked.
3 "Cannabis paraphernalia" means equipment, products, or 
4materials intended to be used for planting, propagating, 
5cultivating, growing, harvesting, manufacturing, producing, 
6processing, preparing, testing, analyzing, packaging, 
7repackaging, storing, containing, concealing, ingesting, or 
8otherwise introducing cannabis into the human body. 
9 "Cannabis plant monitoring system" or "plant monitoring 
10system" means a system that includes, but is not limited to, 
11testing and data collection established and maintained by the 
12cultivation center, craft grower, or infuser processing 
13organization and that is available to the Department of 
14Revenue, the Department of Agriculture, the Department of 
15Financial and Professional Regulation, and the Illinois State 
16Police for the purposes of documenting each cannabis plant and 
17monitoring plant development throughout the life cycle of a 
18cannabis plant cultivated for the intended use by a customer 
19from seed planting to final packaging.
20 "Cannabis testing facility" means an entity registered by 
21the Department of Agriculture to test cannabis for potency and 
22contaminants. Licensed cannabis testing facilities are 
23authorized under this Act to transport cannabis from licensed 
24cannabis business establishments to the licensed cannabis 
25testing facility and are exempt from the transporting 
26organization license requirements. 
 
 
SB3940- 40 -LRB103 40496 RJT 72952 b


1 "Clone" means a plant section from a female cannabis plant 
2not yet rootbound, growing in a water solution or other 
3propagation matrix, that is capable of developing into a new 
4plant.
5 "Community College Cannabis Vocational Training Pilot 
6Program faculty participant" means a person who is 21 years of 
7age or older, licensed by the Department of Agriculture, and 
8is employed or contracted by an Illinois community college to 
9provide student instruction using cannabis plants at an 
10Illinois Community College.
11 "Community College Cannabis Vocational Training Pilot 
12Program faculty participant Agent Identification Card" means a 
13document issued by the Department of Agriculture that 
14identifies a person as a Community College Cannabis Vocational 
15Training Pilot Program faculty participant.
16 "Conditional Adult Use Dispensing Organization License" 
17means a contingent license awarded to applicants for an Adult 
18Use Dispensing Organization License that reserves the right to 
19an Adult Use Dispensing Organization License if the applicant 
20meets certain conditions described in this Act, but does not 
21entitle the recipient to begin purchasing or selling cannabis 
22or cannabis-infused products.
23 "Conditional Adult Use Cultivation Center License" means a 
24license awarded to top-scoring applicants for an Adult Use 
25Cultivation Center License that reserves the right to an Adult 
26Use Cultivation Center License if the applicant meets certain 
 
 
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1conditions as determined by the Department of Agriculture by 
2rule, but does not entitle the recipient to begin growing, 
3processing, or selling cannabis or cannabis-infused products.
4 "Craft grower" means a facility operated by an 
5organization or business that is licensed by the Department of 
6Agriculture to cultivate, dry, cure, and package cannabis and 
7perform other necessary activities to make cannabis available 
8for sale at a dispensing organization or use at an infuser a 
9processing organization. A craft grower may contain up to 
105,000 square feet of canopy space on its premises for plants in 
11the flowering state. The Department of Agriculture may 
12authorize an increase or decrease of flowering stage 
13cultivation space in increments of 3,000 square feet by rule 
14based on market need, craft grower capacity, and the 
15licensee's history of compliance or noncompliance, with a 
16maximum space of 14,000 square feet for cultivating plants in 
17the flowering stage, which must be cultivated in all stages of 
18growth in an enclosed and secure area. A craft grower may share 
19premises with an infuser a processing organization or a 
20dispensing organization, or both, provided each licensee 
21stores currency and cannabis or cannabis-infused products in a 
22separate secured vault to which the other licensee does not 
23have access or all licensees sharing a vault share more than 
2450% of the same ownership. 
25 "Craft grower agent" means a principal officer, board 
26member, employee, or other agent of a craft grower who is 21 
 
 
SB3940- 42 -LRB103 40496 RJT 72952 b


1years of age or older.
2 "Craft Grower Agent Identification Card" means a document 
3issued by the Department of Agriculture that identifies a 
4person as a craft grower agent.
5 "Cultivation center" means a facility operated by an 
6organization or business that is licensed by the Department of 
7Agriculture to cultivate, process, transport (unless otherwise 
8limited by this Act), and perform other necessary activities 
9to provide cannabis and cannabis-infused products to cannabis 
10business establishments.
11 "Cultivation center agent" means a principal officer, 
12board member, employee, or other agent of a cultivation center 
13who is 21 years of age or older.
14 "Cultivation Center Agent Identification Card" means a 
15document issued by the Department of Agriculture that 
16identifies a person as a cultivation center agent.
17 "Currency" means currency and coins coin of the United 
18States.
19 "Dispensary" means a facility operated by a dispensing 
20organization at which activities licensed by this Act may 
21occur.
22 "Dispensary Applicant" means the Proposed Dispensing 
23Organization Name as stated on an application for a 
24Conditional Adult Use Dispensing Organization License. 
25 "Dispensing organization" means a facility operated by an 
26organization or business that is licensed by the Department of 
 
 
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1Financial and Professional Regulation to acquire cannabis from 
2a cultivation center, craft grower, infuser processing 
3organization, or another dispensary for the purpose of selling 
4or dispensing cannabis, cannabis-infused products, cannabis 
5seeds, paraphernalia, or related supplies under this Act to 
6purchasers or to qualified registered medical cannabis 
7patients and caregivers. As used in this Act, "dispensing 
8organization" includes a registered medical cannabis 
9organization as defined in the Compassionate Use of Medical 
10Cannabis Program Act or its successor Act that has obtained an 
11Early Approval Adult Use Dispensing Organization License.
12 "Dispensing organization agent" means a principal officer, 
13employee, or agent of a dispensing organization who is 21 
14years of age or older.
15 "Dispensing organization agent identification card" means 
16a document issued by the Department of Financial and 
17Professional Regulation that identifies a person as a 
18dispensing organization agent.
19 "Disproportionately Impacted Area" means a census tract or 
20comparable geographic area that satisfies the following 
21criteria as determined by the Department of Commerce and 
22Economic Opportunity, that: 
23  (1) meets at least one of the following criteria: 
24   (A) the area has a poverty rate of at least 20% 
25 according to the latest federal decennial census; or 
26   (B) 75% or more of the children in the area 
 
 
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1 participate in the federal free lunch program 
2 according to reported statistics from the State Board 
3 of Education; or 
4   (C) at least 20% of the households in the area 
5 receive assistance under the Supplemental Nutrition 
6 Assistance Program; or
7   (D) the area has an average unemployment rate, as 
8 determined by the Illinois Department of Employment 
9 Security, that is more than 120% of the national 
10 unemployment average, as determined by the United 
11 States Department of Labor, for a period of at least 2 
12 consecutive calendar years preceding the date of the 
13 application; and 
14  (2) has high rates of arrest, conviction, and 
15 incarceration related to the sale, possession, use, 
16 cultivation, manufacture, or transport of cannabis.
17 "Early Approval Adult Use Cultivation Center License" 
18means a license that permits a medical cannabis cultivation 
19center licensed under the Compassionate Use of Medical 
20Cannabis Program Act as of the effective date of this Act to 
21begin cultivating, infusing, packaging, transporting (unless 
22otherwise provided in this Act), processing, and selling 
23cannabis or cannabis-infused product to cannabis business 
24establishments for resale to purchasers as permitted by this 
25Act as of January 1, 2020.
26 "Early Approval Adult Use Dispensing Organization License" 
 
 
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1means a license that permits a medical cannabis dispensing 
2organization licensed under the Compassionate Use of Medical 
3Cannabis Program Act as of the effective date of this Act to 
4begin selling cannabis or cannabis-infused product to 
5purchasers as permitted by this Act as of January 1, 2020.
6 "Early Approval Adult Use Dispensing Organization at a 
7secondary site" means a license that permits a medical 
8cannabis dispensing organization licensed under the 
9Compassionate Use of Medical Cannabis Program Act as of the 
10effective date of this Act to begin selling cannabis or 
11cannabis-infused product to purchasers as permitted by this 
12Act on January 1, 2020 at a different dispensary location from 
13its existing registered medical dispensary location.
14 "Eligible Tied Applicant" means a Tied Applicant that is 
15eligible to participate in the process by which a remaining 
16available license is distributed by lot pursuant to a Tied 
17Applicant Lottery. 
18 "Enclosed, locked facility" means a room, greenhouse, 
19building, or other enclosed area equipped with locks or other 
20security devices that permit access only by cannabis business 
21establishment agents working for the licensed cannabis 
22business establishment or acting pursuant to this Act to 
23cultivate, process, store, or distribute cannabis.
24 "Enclosed, locked space" means a closet, room, greenhouse, 
25building, or other enclosed area equipped with locks or other 
26security devices that permit access only by authorized 
 
 
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1individuals under this Act. "Enclosed, locked space" may 
2include:
3  (1) a space within a residential building that (i) is 
4 the primary residence of the individual cultivating 5 or 
5 fewer cannabis plants that are more than 5 inches tall and 
6 (ii) includes sleeping quarters and indoor plumbing. The 
7 space must only be accessible by a key or code that is 
8 different from any key or code that can be used to access 
9 the residential building from the exterior; or
10  (2) a structure, such as a shed or greenhouse, that 
11 lies on the same plot of land as a residential building 
12 that (i) includes sleeping quarters and indoor plumbing 
13 and (ii) is used as a primary residence by the person 
14 cultivating 5 or fewer cannabis plants that are more than 
15 5 inches tall, such as a shed or greenhouse. The structure 
16 must remain locked when it is unoccupied by people. 
17 "Financial institution" has the same meaning as "financial 
18organization" as defined in Section 1501 of the Illinois 
19Income Tax Act, and also includes the holding companies, 
20subsidiaries, and affiliates of such financial organizations. 
21 "Flowering stage" means the stage of cultivation where and 
22when a cannabis plant is cultivated to produce plant material 
23for cannabis products. This includes mature plants as follows:
24  (1) if greater than 2 stigmas are visible at each 
25 internode of the plant; or
26  (2) if the cannabis plant is in an area that has been 
 
 
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1 intentionally deprived of light for a period of time 
2 intended to produce flower buds and induce maturation, 
3 from the moment the light deprivation began through the 
4 remainder of the marijuana plant growth cycle.
5 "Individual" means a natural person.
6 "Infuser organization" or "infuser" means a facility 
7operated by an organization or business that is licensed by 
8the Department of Agriculture to directly incorporate cannabis 
9or cannabis concentrate into a product formulation to produce 
10a cannabis-infused product. 
11 "Infuser organization agent" means a principal officer, 
12board member, employee, or other agent of an infuser 
13organization.
14 "Infuser organization agent identification card" means a 
15document issued by the Department of Agriculture that 
16identifies a person as an infuser organization agent. 
17 "Kief" means the resinous crystal-like trichomes that are 
18found on cannabis and that are accumulated, resulting in a 
19higher concentration of cannabinoids, untreated by heat or 
20pressure, or extracted using a solvent. 
21 "Labor peace agreement" means an agreement between a 
22cannabis business establishment and any labor organization 
23recognized under the National Labor Relations Act, referred to 
24in this Act as a bona fide labor organization, that prohibits 
25labor organizations and members from engaging in picketing, 
26work stoppages, boycotts, and any other economic interference 
 
 
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1with the cannabis business establishment. This agreement means 
2that the cannabis business establishment has agreed not to 
3disrupt efforts by the bona fide labor organization to 
4communicate with, and attempt to organize and represent, the 
5cannabis business establishment's employees. The agreement 
6shall provide a bona fide labor organization access at 
7reasonable times to areas in which the cannabis business 
8establishment's employees work, for the purpose of meeting 
9with employees to discuss their right to representation, 
10employment rights under State law, and terms and conditions of 
11employment. This type of agreement shall not mandate a 
12particular method of election or certification of the bona 
13fide labor organization.
14 "Limited access area" means a room or other area under the 
15control of a cannabis dispensing organization licensed under 
16this Act and upon the licensed premises where cannabis sales 
17occur with access limited to purchasers, dispensing 
18organization owners and other dispensing organization agents, 
19or service professionals conducting business with the 
20dispensing organization, or, if sales to registered qualifying 
21patients, caregivers, provisional patients, and Opioid 
22Alternative Pilot Program participants licensed pursuant to 
23the Compassionate Use of Medical Cannabis Program Act are also 
24permitted at the dispensary, registered qualifying patients, 
25caregivers, provisional patients, and Opioid Alternative Pilot 
26Program participants. 
 
 
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1 "Member of an impacted family" means an individual who has 
2a parent, legal guardian, child, spouse, or dependent, or was 
3a dependent of an individual who, prior to the effective date 
4of this Act, was arrested for, convicted of, or adjudicated 
5delinquent for any offense that is eligible for expungement 
6under this Act.
7 "Mother plant" means a cannabis plant that is cultivated 
8or maintained for the purpose of generating clones, and that 
9will not be used to produce plant material for sale to an 
10infuser or dispensing organization.
11 "Ordinary public view" means within the sight line with 
12normal visual range of a person, unassisted by visual aids, 
13from a public street or sidewalk adjacent to real property, or 
14from within an adjacent property. 
15 "Ownership and control" means ownership of at least 51% of 
16the business, including corporate stock if a corporation, and 
17control over the management and day-to-day operations of the 
18business and an interest in the capital, assets, and profits 
19and losses of the business proportionate to percentage of 
20ownership.
21 "Person" means a natural individual, firm, partnership, 
22association, joint-stock joint stock company, joint venture, 
23public or private corporation, limited liability company, or a 
24receiver, executor, trustee, guardian, or other representative 
25appointed by order of any court.
26 "Possession limit" means the amount of cannabis under 
 
 
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1Section 10-10 that may be possessed at any one time by a person 
221 years of age or older or who is a registered qualifying 
3medical cannabis patient or caregiver under the Compassionate 
4Use of Medical Cannabis Program Act.
5 "Principal officer" includes a cannabis business 
6establishment applicant or licensed cannabis business 
7establishment's board member, owner with more than 1% interest 
8of the total cannabis business establishment or more than 5% 
9interest of the total cannabis business establishment of a 
10publicly traded company, president, vice president, secretary, 
11treasurer, partner, officer, member, manager member, or person 
12with a profit sharing, financial interest, or revenue sharing 
13arrangement. The definition includes a person with authority 
14to control the cannabis business establishment, a person who 
15assumes responsibility for the debts of the cannabis business 
16establishment and who is further defined in this Act.
17 "Primary residence" means a dwelling where a person 
18usually stays or stays more often than other locations. It may 
19be determined by, without limitation, presence, tax filings; 
20address on an Illinois driver's license, an Illinois 
21Identification Card, or an Illinois Person with a Disability 
22Identification Card; or voter registration. No person may have 
23more than one primary residence.
24 "Processor license" means a license issued to an infuser 
25organization that is licensed by the Department of Agriculture 
26under subsection (f) of Section 35-31 to extract raw materials 
 
 
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1from cannabis flower. 
2 "Processing organization" or "processor" means a facility 
3operated by an organization or business that is licensed by 
4the Department of Agriculture to either extract constituent 
5chemicals or compounds to produce cannabis concentrate or 
6incorporate cannabis or cannabis concentrate into a product 
7formulation to produce a cannabis product. 
8 "Processing organization agent" means a principal officer, 
9board member, employee, or agent of a processing organization.
10 "Processing organization agent identification card" means 
11a document issued by the Department of Agriculture that 
12identifies a person as a processing organization agent.
13 "Purchaser" means a person 21 years of age or older who 
14acquires cannabis for a valuable consideration. "Purchaser" 
15does not include a cardholder under the Compassionate Use of 
16Medical Cannabis Program Act.
17 "Qualifying Applicant" means an applicant that submitted 
18an application pursuant to Section 15-30 that received at 
19least 85% of 250 application points available under Section 
2015-30 as the applicant's final score and meets the definition 
21of "Social Equity Applicant" as set forth under this Section.
22 "Qualifying Social Equity Justice Involved Applicant" 
23means an applicant that submitted an application pursuant to 
24Section 15-30 that received at least 85% of 250 application 
25points available under Section 15-30 as the applicant's final 
26score and meets the criteria of either paragraph (1) or (2) of 
 
 
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1the definition of "Social Equity Applicant" as set forth under 
2this Section. 
3 "Qualified Social Equity Applicant" means a Social Equity 
4Applicant who has been awarded a license or conditional 
5license under this Act to operate a cannabis business 
6establishment.
7 "Resided" means an individual's primary residence was 
8located within the relevant geographic area as established by 
92 of the following:
10  (1) a signed lease agreement that includes the 
11 applicant's name;
12  (2) a property deed that includes the applicant's 
13 name;
14  (3) school records;
15  (4) a voter registration card;
16  (5) an Illinois driver's license, an Illinois 
17 Identification Card, or an Illinois Person with a 
18 Disability Identification Card;
19  (6) a paycheck stub; 
20  (7) a utility bill; 
21  (8) tax records; or
22  (9) any other proof of residency or other information 
23 necessary to establish residence as provided by rule.
24 "Smoking" means the inhalation of smoke caused by the 
25combustion of cannabis.
26 "Social Equity Applicant" means an applicant that is an 
 
 
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1Illinois resident that meets one of the following criteria:
2  (1) an applicant with at least 51% ownership and 
3 control by one or more individuals who have resided for at 
4 least 5 of the preceding 10 years in a Disproportionately 
5 Impacted Area; 
6  (2) an applicant with at least 51% ownership and 
7 control by one or more individuals who: 
8   (i) have been arrested for, convicted of, or 
9 adjudicated delinquent for any offense that is 
10 eligible for expungement under this Act; or 
11   (ii) is a member of an impacted family;
12  (3) for applicants with a minimum of 10 full-time 
13 employees, an applicant with at least 51% of current 
14 employees who:
15   (i) currently reside in a Disproportionately 
16 Impacted Area; or
17   (ii) have been arrested for, convicted of, or 
18 adjudicated delinquent for any offense that is 
19 eligible for expungement under this Act or member of 
20 an impacted family.
21 Nothing in this Act shall be construed to preempt or limit 
22the duties of any employer under the Job Opportunities for 
23Qualified Applicants Act. Nothing in this Act shall permit an 
24employer to require an employee to disclose sealed or expunged 
25offenses, unless otherwise required by law. 
26 "Social Equity Criteria Lottery Licensee" means a holder 
 
 
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1of an adult use cannabis dispensary license awarded through a 
2lottery held under subsection (c) of Section 15-35.20. 
3 "Tied Applicant" means an application submitted by a 
4Dispensary Applicant pursuant to Section 15-30 that received 
5the same number of application points under Section 15-30 as 
6the Dispensary Applicant's final score as one or more 
7top-scoring applications in the same BLS Region and would have 
8been awarded a license but for the one or more other 
9top-scoring applications that received the same number of 
10application points. Each application for which a Dispensary 
11Applicant was required to pay a required application fee for 
12the application period ending January 2, 2020 shall be 
13considered an application of a separate Tied Applicant.
14 "Tied Applicant Lottery" means the process established 
15under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult 
16Use Dispensing Organization Licenses pursuant to Sections 
1715-25 and 15-30 among Eligible Tied Applicants. 
18 "Tincture" means a cannabis-infused solution, typically 
19composed comprised of alcohol, glycerin, or vegetable oils, 
20derived either directly from the cannabis plant or from a 
21processed cannabis extract. A tincture is not an alcoholic 
22liquor as defined in the Liquor Control Act of 1934. A tincture 
23shall include a calibrated dropper or other similar device 
24capable of accurately measuring servings.
25 "Transporting organization" or "transporter" means an 
26organization or business that is licensed by the Department of 
 
 
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1Agriculture to transport cannabis or cannabis-infused product 
2on behalf of a cannabis business establishment or a community 
3college licensed under the Community College Cannabis 
4Vocational Training Pilot Program. 
5 "Transporting organization agent" means a principal 
6officer, board member, employee, or agent of a transporting 
7organization.
8 "Transporting organization agent identification card" 
9means a document issued by the Department of Agriculture that 
10identifies a person as a transporting organization agent.
11 "Unit of local government" means any county, city, 
12village, or incorporated town.
13 "Vegetative stage" means the stage of cultivation in which 
14a cannabis plant is propagated to produce additional cannabis 
15plants or reach a sufficient size for production. This 
16includes seedlings, clones, mothers, and other immature 
17cannabis plants as follows: 
18  (1) if the cannabis plant is in an area that has not 
19 been intentionally deprived of light for a period of time 
20 intended to produce flower buds and induce maturation, it 
21 has no more than 2 stigmas visible at each internode of the 
22 cannabis plant; or 
23  (2) any cannabis plant that is cultivated solely for 
24 the purpose of propagating clones and is never used to 
25 produce cannabis.
26(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 
 
 
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1102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff. 
25-13-22.)

3 (410 ILCS 705/5-10)
4 Sec. 5-10. Department of Agriculture.  
5 (a) The Department of Agriculture shall administer and 
6enforce provisions of this Act relating to the oversight and 
7registration of cultivation centers, craft growers, infuser 
8organizations, and transporting organizations and agents, 
9including the issuance of identification cards and 
10establishing limits on potency or serving size for cannabis or 
11cannabis products. The Department of Agriculture may suspend 
12or revoke the license of, or impose other penalties upon 
13cannabis testing facilities, cultivation centers, craft 
14growers, infuser organizations, transporting organizations, 
15and their principal officers, Agents-in-Charge, and agents for 
16violations of this Act and any rules adopted under this Act. 
17 (b) The Department of Agriculture may establish, by rule, 
18market protections that protect against unfair business 
19practices, including, but not limited to, price-fixing, bid 
20rigging, boycotts, agreements to not compete, exclusive 
21wholesale arrangements for cannabis concentrate, cannabis 
22flower, cannabis-infused products, and any product that is 
23licensed under this Act to ensure all license types have equal 
24access to the market without unfair competition. 
25(Source: P.A. 101-27, eff. 6-25-19.)

 
 
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1 (410 ILCS 705/5-15)
2 Sec. 5-15. Department of Financial and Professional 
3Regulation.  
4 (a) The Department of Financial and Professional 
5Regulation shall enforce the provisions of this Act relating 
6to the oversight and registration of dispensing organizations 
7and agents, including the issuance of identification cards for 
8dispensing organization agents. The Department of Financial 
9and Professional Regulation may suspend or revoke the license 
10of, or otherwise discipline dispensing organizations, 
11principal officers, agents-in-charge, and agents for 
12violations of this Act and any rules adopted under this Act.
13 (b) The Department of Financial and Professional 
14Regulation may establish, by rule, market protections that 
15protect against unfair business practices, including, but not 
16limited to, price-fixing, bid rigging, boycotts, agreements to 
17not compete, exclusive wholesale arrangements for cannabis 
18concentrate, cannabis flower, cannabis-infused products, and 
19any product that is licensed under this Act to ensure all 
20license types have equal access to the market without unfair 
21competition. 
22(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

23 (410 ILCS 705/7-10)
24 Sec. 7-10. Cannabis Business Development Fund. 
 
 
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1 (a) There is created in the State treasury a special fund, 
2which shall be held separate and apart from all other State 
3moneys, to be known as the Cannabis Business Development Fund. 
4The Cannabis Business Development Fund shall be exclusively 
5used for the following purposes:
6  (1) to provide low-interest rate loans to Qualified 
7 Social Equity Applicants and Social Equity Criteria 
8 Lottery Licensees to pay for ordinary and necessary 
9 expenses to start and operate a cannabis business 
10 establishment permitted by this Act;
11  (2) to provide grants to Qualified Social Equity 
12 Applicants to pay for ordinary and necessary expenses to 
13 start and operate a cannabis business establishment 
14 permitted by this Act;
15  (3) to compensate the Department of Commerce and 
16 Economic Opportunity for any costs related to the 
17 provision of low-interest loans and grants to Qualified 
18 Social Equity Applicants and Social Equity Criteria 
19 Lottery Licensees; 
20  (4) to pay for outreach that may be provided or 
21 targeted to attract and support Social Equity Applicants, 
22 and Qualified Social Equity Applicants, and Social Equity 
23 Criteria Lottery Licensees;
24  (5) (blank); 
25  (5.5) to provide financial assistance that supports 
26 lending to or private investment in Qualified Social 
 
 
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1 Equity Applicants and Social Equity Criteria Lottery 
2 Licensees or that facilitates access to the facilities 
3 needed to commence operations as a cannabis business 
4 establishment; 
5  (6) to conduct any study or research concerning the 
6 participation of minorities, women, veterans, or people 
7 with disabilities in the cannabis industry, including, 
8 without limitation, barriers to such individuals entering 
9 the industry as equity owners of cannabis business 
10 establishments;
11  (7) (blank); and
12  (8) to assist with job training and technical 
13 assistance for residents in Disproportionately Impacted 
14 Areas.
15 (b) All moneys collected under Sections 15-15 and 15-20 
16for Early Approval Adult Use Dispensing Organization Licenses 
17issued before January 1, 2021 and remunerations made as a 
18result of transfers of permits awarded to Qualified Social 
19Equity Applicants shall be deposited into the Cannabis 
20Business Development Fund.
21 (c) (Blank).
22 (c-5) In addition to any other transfers that may be 
23provided for by law, on July 1, 2023, or as soon thereafter as 
24practical, the State Comptroller shall direct and the State 
25Treasurer shall transfer the sum of $40,000,000 from the 
26Compassionate Use of Medical Cannabis Fund to the Cannabis 
 
 
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1Business Development Fund. 
2 (d) Notwithstanding any other law to the contrary, the 
3Cannabis Business Development Fund is not subject to sweeps, 
4administrative charge-backs, or any other fiscal or budgetary 
5maneuver that would in any way transfer any amounts from the 
6Cannabis Business Development Fund into any other fund of the 
7State.
8(Source: P.A. 103-8, eff. 6-7-23.)

9 (410 ILCS 705/7-15)
10 Sec. 7-15. Loans, financial assistance, and grants to 
11Qualified Social Equity Applicants and Social Equity Criteria 
12Lottery Licensees. 
13 (a) The Department of Commerce and Economic Opportunity 
14shall establish grant, and loan, and financial assistance 
15programs, subject to appropriations from the Cannabis Business 
16Development Fund, for the purposes of providing financial 
17assistance, loans, grants, and technical assistance to 
18Qualified Social Equity Applicants and Social Equity Criteria 
19Lottery Licensee.
20 (b) The Department of Commerce and Economic Opportunity 
21has the power to: 
22  (1) provide Cannabis Social Equity loans, financial 
23 assistance, and grants from appropriations from the 
24 Cannabis Business Development Fund to assist Qualified 
25 Social Equity Applicants and Social Equity Criteria 
 
 
SB3940- 61 -LRB103 40496 RJT 72952 b


1 Lottery Licensee in gaining entry to, and successfully 
2 operating in, the State's regulated cannabis marketplace; 
3  (2) enter into agreements that set forth terms and 
4 conditions of the financial assistance, accept funds or 
5 grants, and engage in cooperation with private entities 
6 and agencies of State or local government to carry out the 
7 purposes of this Section; 
8  (3) fix, determine, charge, and collect any premiums, 
9 fees, charges, costs and expenses, including application 
10 fees, commitment fees, program fees, financing charges, or 
11 publication fees in connection with its activities under 
12 this Section; 
13  (4) coordinate assistance under these financial 
14 assistance loan programs with activities of the Illinois 
15 Department of Financial and Professional Regulation, the 
16 Illinois Department of Agriculture, and other agencies as 
17 needed to maximize the effectiveness and efficiency of 
18 this Act; 
19  (5) provide staff, administration, and related support 
20 required to administer this Section; 
21  (6) take whatever actions are necessary or appropriate 
22 to protect the State's interest in the event of 
23 bankruptcy, default, foreclosure, or noncompliance with 
24 the terms and conditions of financial assistance provided 
25 under this Section, including the ability to recapture 
26 funds if the recipient is found to be noncompliant with 
 
 
SB3940- 62 -LRB103 40496 RJT 72952 b


1 the terms and conditions of the financial assistance 
2 agreement; 
3  (6.5) enter into financial intermediary agreements to 
4 facilitate lending to or investment in Qualified Social 
5 Equity Applicants, or Social Equity Criteria Lottery 
6 Licensee, or their subsidiaries or affiliates, to ensure 
7 the availability of facilities necessary to operate a 
8 cannabis business establishment; 
9  (7) establish application, notification, contract, and 
10 other forms, procedures, or rules deemed necessary and 
11 appropriate; and
12  (8) utilize vendors or contract work to carry out the 
13 purposes of this Act.
14 (c) Loans made under this Section: 
15  (1) shall only be made if, in the Department's 
16 judgment, the project furthers the goals set forth in this 
17 Act; and 
18  (2) shall be in such principal amount and form and 
19 contain such terms and provisions with respect to 
20 security, insurance, reporting, delinquency charges, 
21 default remedies, forgiveness, and other matters as the 
22 Department shall determine appropriate to protect the 
23 public interest and to be consistent with the purposes of 
24 this Section. The terms and provisions may be less than 
25 required for similar loans not covered by this Section; 
26 and .
 
 
SB3940- 63 -LRB103 40496 RJT 72952 b


1  (3) may be distributed by a lottery if the Department 
2 determines that the amount of funding available is 
3 insufficient to provide an adequate amount of funding for 
4 all of the applicants eligible to receive a loan. The 
5 Department may determine the number of loans available 
6 based on the amount of funding available and communicate 
7 the number of loans available on the loan application. The 
8 Department may use competitive criteria to establish which 
9 applicants are eligible to receive a grant, loan, or 
10 financial assistance. 
11 (d) Grants made under this Section shall be awarded on a 
12competitive and annual basis under the Grant Accountability 
13and Transparency Act. Grants made under this Section shall 
14further and promote the goals of this Act, including promotion 
15of Social Equity Applicants, Qualified Social Equity 
16Applicants, or Social Equity Criteria Lottery Licensee, job 
17training and workforce development, and technical assistance 
18to Social Equity Applicants. To the extent registration with 
19the federal System for Award Management requires a grant 
20applicant to certify compliance with all federal laws, the 
21grant applicants under this Section shall not be required to 
22register for a unique entity identifier through the federal 
23System for Award Management to be qualified to receive a grant 
24so long as federal law prohibits the cultivation and sale of 
25cannabis. 
26 (d-5) Financial intermediary agreements to provide 
 
 
SB3940- 64 -LRB103 40496 RJT 72952 b


1financial assistance must further the goals set forth in this 
2Act and result in financing or lease costs that are affordable 
3or below market rate. 
4 (e) Beginning January 1, 2021 and each year thereafter, 
5the Department shall annually report to the Governor and the 
6General Assembly on the outcomes and effectiveness of this 
7Section that shall include the following: 
8  (1) the number of persons or businesses receiving 
9 financial assistance under this Section; 
10  (2) the amount in financial assistance awarded in the 
11 aggregate, in addition to the amount of loans made that 
12 are outstanding and the amount of grants awarded; 
13  (3) the location of the project engaged in by the 
14 person or business; and
15  (4) if applicable, the number of new jobs and other 
16 forms of economic output created as a result of the 
17 financial assistance. 
18 (f) The Department of Commerce and Economic Opportunity 
19shall include engagement with individuals with limited English 
20proficiency as part of its outreach provided or targeted to 
21attract and support Social Equity Applicants.
22(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

23 (410 ILCS 705/10-15)
24 Sec. 10-15. Persons under 21 years of age. 
25 (a) Nothing in this Act is intended to permit the transfer 
 
 
SB3940- 65 -LRB103 40496 RJT 72952 b


1of cannabis, with or without remuneration, to a person under 
221 years of age, or to allow a person under 21 years of age to 
3purchase, possess, use, process, transport, grow, or consume 
4cannabis except where authorized by this Act, the 
5Compassionate Use of Medical Cannabis Program Act, or by the 
6Community College Cannabis Vocational Pilot Program. 
7 (b) Notwithstanding any other provisions of law 
8authorizing the possession of medical cannabis, nothing in 
9this Act authorizes a person who is under 21 years of age to 
10possess cannabis. A person under 21 years of age with cannabis 
11in his or her possession is guilty of a civil law violation as 
12outlined in paragraph (a) of Section 4 of the Cannabis Control 
13Act.
14 (c) If the person under the age of 21 was in a motor 
15vehicle at the time of the offense, the Secretary of State may 
16suspend or revoke the driving privileges of any person for a 
17violation of this Section under Section 6-206 of the Illinois 
18Vehicle Code and the rules adopted under it.
19 (d) It is unlawful for any parent or guardian to knowingly 
20permit his or her residence, any other private property under 
21his or her control, or any vehicle, conveyance, or watercraft 
22under his or her control to be used by an invitee of the 
23parent's child or the guardian's ward, if the invitee is under 
24the age of 21, in a manner that constitutes a violation of this 
25Section. A parent or guardian is deemed to have knowingly 
26permitted his or her residence, any other private property 
 
 
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1under his or her control, or any vehicle, conveyance, or 
2watercraft under his or her control to be used in violation of 
3this Section if he or she knowingly authorizes or permits 
4consumption of cannabis by underage invitees. Any person who 
5violates this subsection (d) is guilty of a Class A 
6misdemeanor and the person's sentence shall include, but shall 
7not be limited to, a fine of not less than $500. If a violation 
8of this subsection (d) directly or indirectly results in great 
9bodily harm or death to any person, the person violating this 
10subsection is guilty of a Class 4 felony. In this subsection 
11(d), where the residence or other property has an owner and a 
12tenant or lessee, the trier of fact may infer that the 
13residence or other property is occupied only by the tenant or 
14lessee.
15(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

16 (410 ILCS 705/15-25)
17 Sec. 15-25. Awarding of Conditional Adult Use Dispensing 
18Organization Licenses prior to January 1, 2021. 
19 (a) The Department shall issue up to 75 Conditional Adult 
20Use Dispensing Organization Licenses before May 1, 2020.
21 (b) The Department shall make the application for a 
22Conditional Adult Use Dispensing Organization License 
23available no later than October 1, 2019 and shall accept 
24applications no later than January 1, 2020.
25 (c) To ensure the geographic dispersion of Conditional 
 
 
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1Adult Use Dispensing Organization License holders, the 
2following number of licenses shall be awarded in each BLS 
3Region as determined by each region's percentage of the 
4State's population: 
5  (1) Bloomington: 1
6  (2) Cape Girardeau: 1
7  (3) Carbondale-Marion: 1
8  (4) Champaign-Urbana: 1
9  (5) Chicago-Naperville-Elgin: 47
10  (6) Danville: 1
11  (7) Davenport-Moline-Rock Island: 1
12  (8) Decatur: 1
13  (9) Kankakee: 1
14  (10) Peoria: 3
15  (11) Rockford: 2
16  (12) St. Louis: 4
17  (13) Springfield: 1
18  (14) Northwest Illinois nonmetropolitan: 3
19  (15) West Central Illinois nonmetropolitan: 3
20  (16) East Central Illinois nonmetropolitan: 2
21  (17) South Illinois nonmetropolitan: 2
22 (d) An applicant seeking issuance of a Conditional Adult 
23Use Dispensing Organization License shall submit an 
24application on forms provided by the Department. An applicant 
25must meet the following requirements:
26  (1) Payment of a nonrefundable application fee of 
 
 
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1 $5,000 for each license for which the applicant is 
2 applying, which shall be deposited into the Cannabis 
3 Regulation Fund;
4  (2) Certification that the applicant will comply with 
5 the requirements contained in this Act;
6  (3) The legal name of the proposed dispensing 
7 organization;
8  (4) A statement that the dispensing organization 
9 agrees to respond to the Department's supplemental 
10 requests for information; 
11  (5) From each principal officer, a statement 
12 indicating whether that person:
13   (A) has previously held or currently holds an 
14 ownership interest in a cannabis business 
15 establishment in Illinois; or
16   (B) has held an ownership interest in a dispensing 
17 organization or its equivalent in another state or 
18 territory of the United States that had the dispensing 
19 organization registration or license suspended, 
20 revoked, placed on probationary status, or subjected 
21 to other disciplinary action;
22  (6) Disclosure of whether any principal officer has 
23 ever filed for bankruptcy or defaulted on spousal support 
24 or child support obligation;
25  (7) A resume for each principal officer, including 
26 whether that person has an academic degree, certification, 
 
 
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1 or relevant experience with a cannabis business 
2 establishment or in a related industry;
3  (8) A description of the training and education that 
4 will be provided to dispensing organization agents;
5  (9) A copy of the proposed operating bylaws;
6  (10) A copy of the proposed business plan that 
7 complies with the requirements in this Act, including, at 
8 a minimum, the following:
9   (A) A description of services to be offered; and 
10   (B) A description of the process of dispensing 
11 cannabis;
12  (11) A copy of the proposed security plan that 
13 complies with the requirements in this Article, including: 
14   (A) The process or controls that will be 
15 implemented to monitor the dispensary, secure the 
16 premises, agents, and currency, and prevent the 
17 diversion, theft, or loss of cannabis; and 
18   (B) The process to ensure that access to the 
19 restricted access areas is restricted to, registered 
20 agents, service professionals, transporting 
21 organization agents, Department inspectors, and 
22 security personnel;
23  (12) A proposed inventory control plan that complies 
24 with this Section;
25  (13) A proposed floor plan, a square footage estimate, 
26 and a description of proposed security devices, including, 
 
 
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1 without limitation, cameras, motion detectors, servers, 
2 video storage capabilities, and alarm service providers;
3  (14) The name, address, social security number, and 
4 date of birth of each principal officer and board member 
5 of the dispensing organization; each of those individuals 
6 shall be at least 21 years of age; 
7  (15) Evidence of the applicant's status as a Social 
8 Equity Applicant, if applicable, and whether a Social 
9 Equity Applicant plans to apply for a loan or grant issued 
10 by the Department of Commerce and Economic Opportunity;
11  (16) The address, telephone number, and email address 
12 of the applicant's principal place of business, if 
13 applicable. A post office box is not permitted;
14  (17) Written summaries of any information regarding 
15 instances in which a business or not-for-profit that a 
16 prospective board member previously managed or served on 
17 were fined or censured, or any instances in which a 
18 business or not-for-profit that a prospective board member 
19 previously managed or served on had its registration 
20 suspended or revoked in any administrative or judicial 
21 proceeding;
22  (18) A plan for community engagement;
23  (19) Procedures to ensure accurate recordkeeping and 
24 security measures that are in accordance with this Article 
25 and Department rules;
26  (20) The estimated volume of cannabis it plans to 
 
 
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1 store at the dispensary;
2  (21) A description of the features that will provide 
3 accessibility to purchasers as required by the Americans 
4 with Disabilities Act;
5  (22) A detailed description of air treatment systems 
6 that will be installed to reduce odors;
7  (23) A reasonable assurance that the issuance of a 
8 license will not have a detrimental impact on the 
9 community in which the applicant wishes to locate;
10  (24) The dated signature of each principal officer;
11  (25) A description of the enclosed, locked facility 
12 where cannabis will be stored by the dispensing 
13 organization;
14  (26) Signed statements from each dispensing 
15 organization agent stating that he or she will not divert 
16 cannabis;
17  (27) The number of licenses it is applying for in each 
18 BLS Region;
19  (28) A diversity plan that includes a narrative of at 
20 least 2,500 words that establishes a goal of diversity in 
21 ownership, management, employment, and contracting to 
22 ensure that diverse participants and groups are afforded 
23 equality of opportunity;
24  (29) A contract with a private security contractor 
25 agency that is licensed under Section 10-5 of the Private 
26 Detective, Private Alarm, Private Security, Fingerprint 
 
 
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1 Vendor, and Locksmith Act of 2004 in order for the 
2 dispensary to have adequate security at its facility; and
3  (30) Other information deemed necessary by the 
4 Illinois Cannabis Regulation Oversight Officer to conduct 
5 the disparity and availability study referenced in 
6 subsection (e) of Section 5-45. 
7 (e) An applicant who receives a Conditional Adult Use 
8Dispensing Organization License under this Section has 180 
9days from the date of award to identify a physical location for 
10the dispensing organization retail storefront. The applicant 
11shall provide evidence that the location is not within 1,500 
12feet of an existing dispensing organization, unless the 
13applicant is a Social Equity Applicant or Social Equity 
14Justice Involved Applicant located or seeking to locate within 
151,500 feet of a dispensing organization licensed under Section 
1615-15 or Section 15-20. If an applicant is unable to find a 
17suitable physical address in the opinion of the Department 
18within 180 days of the issuance of the Conditional Adult Use 
19Dispensing Organization License, the Department may extend the 
20period for finding a physical address an additional 540 days 
21if the Conditional Adult Use Dispensing Organization License 
22holder demonstrates concrete attempts to secure a location and 
23a hardship. If the Department denies the extension or the 
24Conditional Adult Use Dispensing Organization License holder 
25is unable to find a location within 720 days of being awarded a 
26conditional license and then becomes operational within 120 
 
 
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1days of finding a location, or is unable to become operational 
2within 720 days of being awarded a conditional license, the 
3Department shall rescind the conditional license and award it 
4to the next highest scoring applicant in the BLS Region for 
5which the license was assigned, provided the applicant 
6receiving the license: (i) confirms a continued interest in 
7operating a dispensing organization; (ii) can provide evidence 
8that the applicant continues to meet all requirements for 
9holding a Conditional Adult Use Dispensing Organization 
10License set forth in this Act; and (iii) has not otherwise 
11become ineligible to be awarded a dispensing organization 
12license. If the new awardee is unable to accept the 
13Conditional Adult Use Dispensing Organization License, the 
14Department shall award the Conditional Adult Use Dispensing 
15Organization License to the next highest scoring applicant in 
16the same manner. The new awardee shall be subject to the same 
17required deadlines as provided in this subsection.
18 (e-5) If, within 720 days of being awarded a Conditional 
19Adult Use Dispensing Organization License, a dispensing 
20organization is unable to find a location within the BLS 
21Region in which it was awarded a Conditional Adult Use 
22Dispensing Organization License because no jurisdiction within 
23the BLS Region allows for the operation of an Adult Use 
24Dispensing Organization, the Department of Financial and 
25Professional Regulation may authorize the Conditional Adult 
26Use Dispensing Organization License holder to transfer its 
 
 
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1license to a BLS Region specified by the Department.
2 (f) A dispensing organization that is awarded a 
3Conditional Adult Use Dispensing Organization License pursuant 
4to the criteria in Section 15-30 shall not purchase, possess, 
5sell, or dispense cannabis or cannabis-infused products until 
6the person has received an Adult Use Dispensing Organization 
7License issued by the Department pursuant to Section 15-36 of 
8this Act.
9 (g) The Department shall conduct a background check of the 
10prospective organization agents in order to carry out this 
11Article. The Illinois State Police shall charge the applicant 
12a fee for conducting the criminal history record check, which 
13shall be deposited into the State Police Services Fund and 
14shall not exceed the actual cost of the record check. Each 
15person applying as a dispensing organization agent shall 
16submit a full set of fingerprints to the Illinois State Police 
17for the purpose of obtaining a State and federal criminal 
18records check. These fingerprints shall be checked against the 
19fingerprint records now and hereafter, to the extent allowed 
20by law, filed in the Illinois State Police and Federal Bureau 
21of Identification criminal history records databases. The 
22Illinois State Police shall furnish, following positive 
23identification, all Illinois conviction information to the 
24Department.
25(Source: P.A. 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 
26102-813, eff. 5-13-22; 103-8, eff. 6-7-23.)

 
 
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1 (410 ILCS 705/15-35)
2 Sec. 15-35. Qualifying Applicant Lottery for Conditional 
3Adult Use Dispensing Organization Licenses. 
4 (a) In addition to any of the licenses issued under 
5Section 15-15, Section 15-20, Section 15-25, Section 15-30.20, 
6or Section 15-35.10 of this Act, within 10 business days after 
7the resulting final scores for all scored applications 
8pursuant to Sections 15-25 and 15-30 are released, the 
9Department shall issue up to 55 Conditional Adult Use 
10Dispensing Organization Licenses by lot, pursuant to the 
11application process adopted under this Section. In order to be 
12eligible to be awarded a Conditional Adult Use Dispensing 
13Organization License by lot under this Section, a Dispensary 
14Applicant must be a Qualifying Applicant.
15 The licenses issued under this Section shall be awarded in 
16each BLS Region in the following amounts: 
17  (1) Bloomington: 1.
18  (2) Cape Girardeau: 1.
19  (3) Carbondale-Marion: 1.
20  (4) Champaign-Urbana: 1.
21  (5) Chicago-Naperville-Elgin: 36.
22  (6) Danville: 1.
23  (7) Davenport-Moline-Rock Island: 1.
24  (8) Decatur: 1.
25  (9) Kankakee: 1.
 
 
SB3940- 76 -LRB103 40496 RJT 72952 b


1  (10) Peoria: 2.
2  (11) Rockford: 1.
3  (12) St. Louis: 3.
4  (13) Springfield: 1.
5  (14) Northwest Illinois nonmetropolitan: 1.
6  (15) West Central Illinois nonmetropolitan: 1.
7  (16) East Central Illinois nonmetropolitan: 1.
8  (17) South Illinois nonmetropolitan: 1.
9 (a-5) Prior to issuing licenses under subsection (a), the 
10Department may adopt rules through emergency rulemaking in 
11accordance with subsection (kk) of Section 5-45 of the 
12Illinois Administrative Procedure Act. The General Assembly 
13finds that the adoption of rules to regulate cannabis use is 
14deemed an emergency and necessary for the public interest, 
15safety, and welfare.
16 (b) The Department shall distribute the available licenses 
17established under this Section subject to the following:
18  (1) The drawing by lot for all available licenses 
19 issued under this Section shall occur on the same day when 
20 practicable.
21  (2) Within each BLS Region, the first Qualifying 
22 Applicant drawn will have the first right to an available 
23 license. The second Qualifying Applicant drawn will have 
24 the second right to an available license. The same pattern 
25 will continue for each subsequent Qualifying Applicant 
26 drawn.
 
 
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1  (3) The process for distributing available licenses 
2 under this Section shall be recorded by the Department in 
3 a format selected by the Department. 
4  (4) A Dispensary Applicant is prohibited from becoming 
5 a Qualifying Applicant if a principal officer resigns 
6 after the resulting final scores for all scored 
7 applications pursuant to Sections 15-25 and 15-30 are 
8 released.
9  (5) No Qualifying Applicant may be awarded more than 2 
10 Conditional Adult Use Dispensing Organization Licenses at 
11 the conclusion of a lottery conducted under this Section.
12  (6) No individual may be listed as a principal officer 
13 of more than 2 Conditional Adult Use Dispensing 
14 Organization Licenses awarded under this Section.
15  (7) If, upon being selected for an available license 
16 established under this Section, a Qualifying Applicant 
17 exceeds the limits under paragraph (5) or (6), the 
18 Qualifying Applicant must choose which license to abandon 
19 and notify the Department in writing within 5 business 
20 days. If the Qualifying Applicant does not notify the 
21 Department as required, the Department shall refuse to 
22 issue the Qualifying Applicant all available licenses 
23 established under this Section obtained by lot in all BLS 
24 Regions.
25  (8) If, upon being selected for an available license 
26 established under this Section, a Qualifying Applicant has 
 
 
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1 a principal officer who is a principal officer in more 
2 than 10 Early Approval Adult Use Dispensing Organization 
3 Licenses, Conditional Adult Use Dispensing Organization 
4 Licenses, Adult Use Dispensing Organization Licenses, or 
5 any combination thereof, the licensees and the Qualifying 
6 Applicant listing that principal officer must choose which 
7 license to abandon pursuant to subsection (d) of Section 
8 15-36 and notify the Department in writing within 5 
9 business days. If the Qualifying Applicant or licensees do 
10 not notify the Department as required, the Department 
11 shall refuse to issue the Qualifying Applicant all 
12 available licenses established under this Section obtained 
13 by lot in all BLS Regions.
14  (9) All available licenses that have been abandoned 
15 under paragraph (7) or (8) shall be distributed to the 
16 next Qualifying Applicant drawn by lot.
17 Any and all rights conferred or obtained under this 
18Section shall be limited to the provisions of this Section.
19 (c) An applicant who receives a Conditional Adult Use 
20Dispensing Organization License under this Section has 180 
21days from the date it is awarded to identify a physical 
22location for the dispensing organization's retail storefront. 
23The applicant shall provide evidence that the location is not 
24within 1,500 feet of an existing dispensing organization, 
25unless the applicant is a Social Equity Applicant or Social 
26Equity Justice Involved Applicant located or seeking to locate 
 
 
SB3940- 79 -LRB103 40496 RJT 72952 b


1within 1,500 feet of a dispensing organization licensed under 
2Section 15-15 or Section 15-20. If an applicant is unable to 
3find a suitable physical address in the opinion of the 
4Department within 180 days from the issuance of the 
5Conditional Adult Use Dispensing Organization License, the 
6Department may extend the period for finding a physical 
7address an additional 540 days if the Conditional Adult Use 
8Dispensing Organization License holder demonstrates a concrete 
9attempt to secure a location and a hardship. If the Department 
10denies the extension or the Conditional Adult Use Dispensing 
11Organization License holder is unable to find a location 
12within 720 days of being awarded a conditional license and 
13then becomes operational within 120 days of finding a 
14location, or is unable to become operational within 720 days 
15of being awarded a Conditional Adult Use Dispensing 
16Organization License under this Section, the Department shall 
17rescind the Conditional Adult Use Dispensing Organization 
18License and award it pursuant to subsection (b), provided the 
19applicant receiving the Conditional Adult Use Dispensing 
20Organization License: (i) confirms a continued interest in 
21operating a dispensing organization; (ii) can provide evidence 
22that the applicant continues to meet all requirements for 
23holding a Conditional Adult Use Dispensing Organization 
24License set forth in this Act; and (iii) has not otherwise 
25become ineligible to be awarded a Conditional Adult Use 
26Dispensing Organization License. If the new awardee is unable 
 
 
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1to accept the Conditional Adult Use Dispensing Organization 
2License, the Department shall award the Conditional Adult Use 
3Dispensing Organization License pursuant to subsection (b). 
4The new awardee shall be subject to the same required 
5deadlines as provided in this subsection.
6 (d) If, within 720 days of being awarded a Conditional 
7Adult Use Dispensing Organization License, a dispensing 
8organization is unable to find a location within the BLS 
9Region in which it was awarded a Conditional Adult Use 
10Dispensing Organization License because no jurisdiction within 
11the BLS Region allows for the operation of an Adult Use 
12Dispensing Organization, the Department may authorize the 
13Conditional Adult Use Dispensing Organization License holder 
14to transfer its Conditional Adult Use Dispensing Organization 
15License to a BLS Region specified by the Department.
16 (e) A dispensing organization that is awarded a 
17Conditional Adult Use Dispensing Organization License under 
18this Section shall not purchase, possess, sell, or dispense 
19cannabis or cannabis-infused products until the dispensing 
20organization has received an Adult Use Dispensing Organization 
21License issued by the Department pursuant to Section 15-36.
22 (f) The Department shall conduct a background check of the 
23prospective dispensing organization agents in order to carry 
24out this Article. The Illinois State Police shall charge the 
25applicant a fee for conducting the criminal history record 
26check, which shall be deposited into the State Police Services 
 
 
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1Fund and shall not exceed the actual cost of the record check. 
2Each person applying as a dispensing organization agent shall 
3submit a full set of fingerprints to the Illinois State Police 
4for the purpose of obtaining a State and federal criminal 
5records check. These fingerprints shall be checked against the 
6fingerprint records now and hereafter, to the extent allowed 
7by law, filed with the Illinois State Police and the Federal 
8Bureau of Investigation criminal history records databases. 
9The Illinois State Police shall furnish, following positive 
10identification, all Illinois conviction information to the 
11Department.
12 (g) The Department may verify information contained in 
13each application and accompanying documentation to assess the 
14applicant's veracity and fitness to operate a dispensing 
15organization.
16 (h) The Department may, in its discretion, refuse to issue 
17authorization to an applicant who meets any of the following 
18criteria:
19  (1) An applicant who is unqualified to perform the 
20 duties required of the applicant.
21  (2) An applicant who fails to disclose or states 
22 falsely any information called for in the application.
23  (3) An applicant who has been found guilty of a 
24 violation of this Act, who has had any disciplinary order 
25 entered against the applicant by the Department, who has 
26 entered into a disciplinary or nondisciplinary agreement 
 
 
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1 with the Department, whose medical cannabis dispensing 
2 organization, medical cannabis cultivation organization, 
3 Early Approval Adult Use Dispensing Organization License, 
4 Early Approval Adult Use Dispensing Organization License 
5 at a secondary site, Early Approval Cultivation Center 
6 License, Conditional Adult Use Dispensing Organization 
7 License, or Adult Use Dispensing Organization License was 
8 suspended, restricted, revoked, or denied for just cause, 
9 or whose cannabis business establishment license was 
10 suspended, restricted, revoked, or denied in any other 
11 state.
12  (4) An applicant who has engaged in a pattern or 
13 practice of unfair or illegal practices, methods, or 
14 activities in the conduct of owning a cannabis business 
15 establishment or other business.
16 (i) The Department shall deny issuance of a license under 
17this Section if any principal officer, board member, or person 
18having a financial or voting interest of 5% or greater in the 
19licensee is delinquent in filing any required tax return or 
20paying any amount owed to the State of Illinois.
21 (j) The Department shall verify an applicant's compliance 
22with the requirements of this Article and rules adopted under 
23this Article before issuing a Conditional Adult Use Dispensing 
24Organization License under this Section.
25 (k) If an applicant is awarded a Conditional Adult Use 
26Dispensing Organization License under this Section, the 
 
 
SB3940- 83 -LRB103 40496 RJT 72952 b


1information and plans provided in the application, including 
2any plans submitted for bonus points, shall become a condition 
3of the Conditional Adult Use Dispensing Organization License 
4and any Adult Use Dispensing Organization License issued to 
5the holder of the Conditional Adult Use Dispensing 
6Organization License, except as otherwise provided by this Act 
7or by rule. A dispensing organization has a duty to disclose 
8any material changes to the application. The Department shall 
9review all material changes disclosed by the dispensing 
10organization and may reevaluate its prior decision regarding 
11the awarding of a Conditional Adult Use Dispensing 
12Organization License, including, but not limited to, 
13suspending or permanently revoking a Conditional Adult Use 
14Dispensing Organization License. Failure to comply with the 
15conditions or requirements in the application may subject the 
16dispensing organization to discipline up to and including 
17suspension or permanent revocation of its authorization or 
18Conditional Adult Use Dispensing Organization License by the 
19Department.
20 (l) If an applicant has not begun operating as a 
21dispensing organization within one year after the issuance of 
22the Conditional Adult Use Dispensing Organization License 
23under this Section, the Department may permanently revoke the 
24Conditional Adult Use Dispensing Organization License and 
25award it to the next highest scoring applicant in the BLS 
26Region if a suitable applicant indicates a continued interest 
 
 
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1in the Conditional Adult Use Dispensing Organization License 
2or may begin a new selection process to award a Conditional 
3Adult Use Dispensing Organization License.
4(Source: P.A. 102-98, eff. 7-15-21; 103-8, eff. 6-7-23.)

5 (410 ILCS 705/15-35.10)
6 Sec. 15-35.10. Social Equity Justice Involved Lottery for 
7Conditional Adult Use Dispensing Organization Licenses.
8 (a) In addition to any of the licenses issued under 
9Section 15-15, Section 15-20, Section 15-25, Section 15-30.20, 
10or Section 15-35, within 10 business days after the resulting 
11final scores for all scored applications pursuant to Sections 
1215-25 and 15-30 are released, the Department shall issue up to 
1355 Conditional Adult Use Dispensing Organization Licenses by 
14lot, pursuant to the application process adopted under this 
15Section. In order to be eligible to be awarded a Conditional 
16Adult Use Dispensing Organization License by lot, a Dispensary 
17Applicant must be a Qualifying Social Equity Justice Involved 
18Applicant.
19 The licenses issued under this Section shall be awarded in 
20each BLS Region in the following amounts: 
21  (1) Bloomington: 1.
22  (2) Cape Girardeau: 1.
23  (3) Carbondale-Marion: 1.
24  (4) Champaign-Urbana: 1. 
25  (5) Chicago-Naperville-Elgin: 36.
 
 
SB3940- 85 -LRB103 40496 RJT 72952 b


1  (6) Danville: 1.
2  (7) Davenport-Moline-Rock Island: 1.
3  (8) Decatur: 1.
4  (9) Kankakee: 1.
5  (10) Peoria: 2.
6  (11) Rockford: 1.
7  (12) St. Louis: 3.
8  (13) Springfield: 1.
9  (14) Northwest Illinois nonmetropolitan: 1.
10  (15) West Central Illinois nonmetropolitan: 1.
11  (16) East Central Illinois nonmetropolitan: 1.
12  (17) South Illinois nonmetropolitan: 1. 
13 (a-5) Prior to issuing licenses under subsection (a), the 
14Department may adopt rules through emergency rulemaking in 
15accordance with subsection (kk) of Section 5-45 of the 
16Illinois Administrative Procedure Act. The General Assembly 
17finds that the adoption of rules to regulate cannabis use is 
18deemed an emergency and necessary for the public interest, 
19safety, and welfare.
20 (b) The Department shall distribute the available licenses 
21established under this Section subject to the following: 
22  (1) The drawing by lot for all available licenses 
23 established under this Section shall occur on the same day 
24 when practicable.
25  (2) Within each BLS Region, the first Qualifying 
26 Social Equity Justice Involved Applicant drawn will have 
 
 
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1 the first right to an available license. The second 
2 Qualifying Social Equity Justice Involved Applicant drawn 
3 will have the second right to an available license. The 
4 same pattern will continue for each subsequent applicant 
5 drawn.
6  (3) The process for distributing available licenses 
7 under this Section shall be recorded by the Department in 
8 a format selected by the Department.
9  (4) A Dispensary Applicant is prohibited from becoming 
10 a Qualifying Social Equity Justice Involved Applicant if a 
11 principal officer resigns after the resulting final scores 
12 for all scored applications pursuant to Sections 15-25 and 
13 15-30 are released.
14  (5) No Qualifying Social Equity Justice Involved 
15 Applicant may be awarded more than 2 Conditional Adult Use 
16 Dispensing Organization Licenses at the conclusion of a 
17 lottery conducted under this Section.
18  (6) No individual may be listed as a principal officer 
19 of more than 2 Conditional Adult Use Dispensing 
20 Organization Licenses awarded under this Section.
21  (7) If, upon being selected for an available license 
22 established under this Section, a Qualifying Social Equity 
23 Justice Involved Applicant exceeds the limits under 
24 paragraph (5) or (6), the Qualifying Social Equity Justice 
25 Involved Applicant must choose which license to abandon 
26 and notify the Department in writing within 5 business 
 
 
SB3940- 87 -LRB103 40496 RJT 72952 b


1 days on forms prescribed by the Department. If the 
2 Qualifying Social Equity Justice Involved Applicant does 
3 not notify the Department as required, the Department 
4 shall refuse to issue the Qualifying Social Equity Justice 
5 Involved Applicant all available licenses established 
6 under this Section obtained by lot in all BLS Regions.
7  (8) If, upon being selected for an available license 
8 established under this Section, a Qualifying Social Equity 
9 Justice Involved Applicant has a principal officer who is 
10 a principal officer in more than 10 Early Approval Adult 
11 Use Dispensing Organization Licenses, Conditional Adult 
12 Use Dispensing Organization Licenses, Adult Use Dispensing 
13 Organization Licenses, or any combination thereof, the 
14 licensees and the Qualifying Social Equity Justice 
15 Involved Applicant listing that principal officer must 
16 choose which license to abandon pursuant to subsection (d) 
17 of Section 15-36 and notify the Department in writing 
18 within 5 business days on forms prescribed by the 
19 Department. If the Dispensary Applicant or licensees do 
20 not notify the Department as required, the Department 
21 shall refuse to issue the Qualifying Social Equity Justice 
22 Involved Applicant all available licenses established 
23 under this Section obtained by lot in all BLS Regions.
24  (9) All available licenses that have been abandoned 
25 under paragraph (7) or (8) shall be distributed to the 
26 next Qualifying Social Equity Justice Involved Applicant 
 
 
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1 drawn by lot.
2 Any and all rights conferred or obtained under this 
3subsection shall be limited to the provisions of this 
4subsection. 
5 (c) An applicant who receives a Conditional Adult Use 
6Dispensing Organization License under this Section has 180 
7days from the date of the award to identify a physical location 
8for the dispensing organization's retail storefront. The 
9applicant shall provide evidence that the location is not 
10within 1,500 feet of an existing dispensing organization, 
11unless the applicant is a Social Equity Applicant or Social 
12Equity Justice Involved Applicant located or seeking to locate 
13within 1,500 feet of a dispensing organization licensed under 
14Section 15-15 or Section 15-20. If an applicant is unable to 
15find a suitable physical address in the opinion of the 
16Department within 180 days from the issuance of the 
17Conditional Adult Use Dispensing Organization License, the 
18Department may extend the period for finding a physical 
19address an additional 540 days if the Conditional Adult Use 
20Dispensing Organization License holder demonstrates a concrete 
21attempt to secure a location and a hardship. If the Department 
22denies the extension or the Conditional Adult Use Dispensing 
23Organization License holder is unable to find a location 
24within 720 days of being awarded a conditional license and 
25then becomes operational within 120 days of finding a 
26location, or is unable to become operational within 720 days 
 
 
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1of being awarded a Conditional Adult Use Dispensing 
2Organization License under this Section, the Department shall 
3rescind the Conditional Adult Use Dispensing Organization 
4License and award it pursuant to subsection (b) and notify the 
5new awardee at the email address provided in the awardee's 
6application, provided the applicant receiving the Conditional 
7Adult Use Dispensing Organization License: (i) confirms a 
8continued interest in operating a dispensing organization; 
9(ii) can provide evidence that the applicant continues to meet 
10all requirements for holding a Conditional Adult Use 
11Dispensing Organization License set forth in this Act; and 
12(iii) has not otherwise become ineligible to be awarded a 
13Conditional Adult Use Dispensing Organization License. If the 
14new awardee is unable to accept the Conditional Adult Use 
15Dispensing Organization License, the Department shall award 
16the Conditional Adult Use Dispensing Organization License 
17pursuant to subsection (b). The new awardee shall be subject 
18to the same required deadlines as provided in this subsection.
19 (d) If, within 720 180 days of being awarded a Conditional 
20Adult Use Dispensing Organization License, a dispensing 
21organization is unable to find a location within the BLS 
22Region in which it was awarded a Conditional Adult Use 
23Dispensing Organization License under this Section because no 
24jurisdiction within the BLS Region allows for the operation of 
25an Adult Use Dispensing Organization, the Department may 
26authorize the Conditional Adult Use Dispensing Organization 
 
 
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1License holder to transfer its Conditional Adult Use 
2Dispensing Organization License to a BLS Region specified by 
3the Department.
4 (e) A dispensing organization that is awarded a 
5Conditional Adult Use Dispensing Organization License under 
6this Section shall not purchase, possess, sell, or dispense 
7cannabis or cannabis-infused products until the dispensing 
8organization has received an Adult Use Dispensing Organization 
9License issued by the Department pursuant to Section 15-36.
10 (f) The Department shall conduct a background check of the 
11prospective dispensing organization agents in order to carry 
12out this Article. The Illinois State Police shall charge the 
13applicant a fee for conducting the criminal history record 
14check, which shall be deposited into the State Police Services 
15Fund and shall not exceed the actual cost of the record check. 
16Each person applying as a dispensing organization agent shall 
17submit a full set of fingerprints to the Illinois State Police 
18for the purpose of obtaining a State and federal criminal 
19records check. These fingerprints shall be checked against the 
20fingerprint records now and hereafter, to the extent allowed 
21by law, filed with the Illinois State Police and the Federal 
22Bureau of Investigation criminal history records databases. 
23The Illinois State Police shall furnish, following positive 
24identification, all Illinois conviction information to the 
25Department.
26 (g) The Department may verify information contained in 
 
 
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1each application and accompanying documentation to assess the 
2applicant's veracity and fitness to operate a dispensing 
3organization.
4 (h) The Department may, in its discretion, refuse to issue 
5an authorization to an applicant who meets any of the 
6following criteria:
7  (1) An applicant who is unqualified to perform the 
8 duties required of the applicant.
9  (2) An applicant who fails to disclose or states 
10 falsely any information called for in the application.
11  (3) An applicant who has been found guilty of a 
12 violation of this Act, who has had any disciplinary order 
13 entered against the applicant by the Department, who has 
14 entered into a disciplinary or nondisciplinary agreement 
15 with the Department, whose medical cannabis dispensing 
16 organization, medical cannabis cultivation organization, 
17 Early Approval Adult Use Dispensing Organization License, 
18 Early Approval Adult Use Dispensing Organization License 
19 at a secondary site, Early Approval Cultivation Center 
20 License, Conditional Adult Use Dispensing Organization 
21 License, or Adult Use Dispensing Organization License was 
22 suspended, restricted, revoked, or denied for just cause, 
23 or whose cannabis business establishment license was 
24 suspended, restricted, revoked, or denied in any other 
25 state.
26  (4) An applicant who has engaged in a pattern or 
 
 
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1 practice of unfair or illegal practices, methods, or 
2 activities in the conduct of owning a cannabis business 
3 establishment or other business.
4 (i) The Department shall deny the license if any principal 
5officer, board member, or person having a financial or voting 
6interest of 5% or greater in the licensee is delinquent in 
7filing any required tax return or paying any amount owed to the 
8State of Illinois.
9 (j) The Department shall verify an applicant's compliance 
10with the requirements of this Article and rules adopted under 
11this Article before issuing a Conditional Adult Use Dispensing 
12Organization License.
13 (k) If an applicant is awarded a Conditional Adult Use 
14Dispensing Organization License under this Section, the 
15information and plans provided in the application, including 
16any plans submitted for bonus points, shall become a condition 
17of the Conditional Adult Use Dispensing Organization License 
18and any Adult Use Dispensing Organization License issued to 
19the holder of the Conditional Adult Use Dispensing 
20Organization License, except as otherwise provided by this Act 
21or by rule. Dispensing organizations have a duty to disclose 
22any material changes to the application. The Department shall 
23review all material changes disclosed by the dispensing 
24organization and may reevaluate its prior decision regarding 
25the awarding of a Conditional Adult Use Dispensing 
26Organization License, including, but not limited to, 
 
 
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1suspending or permanently revoking a Conditional Adult Use 
2Dispensing Organization License. Failure to comply with the 
3conditions or requirements in the application may subject the 
4dispensing organization to discipline up to and including 
5suspension or permanent revocation of its authorization or 
6Conditional Adult Use Dispensing Organization License by the 
7Department.
8 (l) If an applicant has not begun operating as a 
9dispensing organization within one year after the issuance of 
10the Conditional Adult Use Dispensing Organization License 
11under this Section, the Department may permanently revoke the 
12Conditional Adult Use Dispensing Organization License and 
13award it to the next highest scoring applicant in the BLS 
14Region if a suitable applicant indicates a continued interest 
15in the Conditional Adult Use Dispensing Organization License 
16or may begin a new selection process to award a Conditional 
17Adult Use Dispensing Organization License.
18(Source: P.A. 102-98, eff. 7-15-21; 103-8, eff. 6-7-23.)

19 (410 ILCS 705/15-40)
20 Sec. 15-40. Dispensing organization agent identification 
21card; agent training. 
22 (a) The Department shall:
23  (1) verify the information contained in an application 
24 or renewal for a dispensing organization agent 
25 identification card submitted under this Article, and 
 
 
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1 approve or deny an application or renewal, within 30 days 
2 of receiving a completed application or renewal 
3 application and all supporting documentation required by 
4 rule;
5  (2) issue a dispensing organization agent 
6 identification card to a qualifying agent within 15 
7 business days of approving the application or renewal;
8  (3) enter the registry identification number of the 
9 dispensing organization where the agent works; 
10  (4) within one year from the effective date of this 
11 Act, allow for an electronic application process and 
12 provide a confirmation by electronic or other methods that 
13 an application has been submitted; and
14  (5) collect a $100 nonrefundable fee from the 
15 applicant to be deposited into the Cannabis Regulation 
16 Fund.
17 (b) A dispensing organization agent must keep his or her 
18identification card visible at all times when in the 
19dispensary.
20 (c) The dispensing organization agent identification cards 
21shall contain the following:
22  (1) the name of the cardholder;
23  (2) the date of issuance and expiration date of the 
24 dispensing organization agent identification cards;
25  (3) a random 10-digit alphanumeric identification 
26 number containing at least 4 numbers and at least 4 
 
 
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1 letters that is unique to the cardholder; and
2  (4) a photograph of the cardholder.
3 (d) The dispensing organization agent identification cards 
4shall be immediately returned to the dispensing organization 
5upon termination of employment.
6 (e) The Department may not shall not issue an agent 
7identification card if the applicant is delinquent in filing 
8any required tax returns or paying any amounts owed to the 
9State of Illinois.
10 (f) Any card lost by a dispensing organization agent shall 
11be reported to the Illinois State Police and the Department 
12immediately upon discovery of the loss.
13 (g) An applicant shall be denied a dispensing organization 
14agent identification card renewal if he or she fails to 
15complete the training provided for in this Section.
16 (h) A dispensing organization agent shall only be required 
17to hold one card for the same employer regardless of what type 
18of dispensing organization license the employer holds.
19 (i) Cannabis retail sales training requirements.
20  (1) Within 90 days of September 1, 2019, or 90 days of 
21 employment, whichever is later, all owners, managers, 
22 employees, and agents involved in the handling or sale of 
23 cannabis or cannabis-infused product employed by an adult 
24 use dispensing organization or medical cannabis dispensing 
25 organization as defined in Section 10 of the Compassionate 
26 Use of Medical Cannabis Program Act shall attend and 
 
 
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1 successfully complete a Responsible Vendor Program.
2  (2) Each owner, manager, employee, and agent of an 
3 adult use dispensing organization or medical cannabis 
4 dispensing organization shall successfully complete the 
5 program annually.
6  (3) Responsible Vendor Program Training modules shall 
7 include at least 2 hours of instruction time approved by 
8 the Department including:
9   (i) Health and safety concerns of cannabis use, 
10 including the responsible use of cannabis, its 
11 physical effects, onset of physiological effects, 
12 recognizing signs of impairment, and appropriate 
13 responses in the event of overconsumption.
14   (ii) Training on laws and regulations on driving 
15 while under the influence and operating a watercraft 
16 or snowmobile while under the influence.
17   (iii) Sales to minors prohibition. Training shall 
18 cover all relevant Illinois laws and rules.
19   (iv) Quantity limitations on sales to purchasers. 
20 Training shall cover all relevant Illinois laws and 
21 rules.
22   (v) Acceptable forms of identification. Training 
23 shall include:
24    (I) How to check identification; and
25    (II) Common mistakes made in verification;
26   (vi) Safe storage of cannabis;
 
 
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1   (vii) Compliance with all inventory tracking 
2 system regulations;
3   (viii) Waste handling, management, and disposal;
4   (ix) Health and safety standards;
5   (x) Maintenance of records;
6   (xi) Security and surveillance requirements;
7   (xii) Permitting inspections by State and local 
8 licensing and enforcement authorities;
9   (xiii) Privacy issues;
10   (xiv) Packaging and labeling requirement for sales 
11 to purchasers; and
12   (xv) Other areas as determined by rule.
13 (j) Blank.
14 (k) Upon the successful completion of the Responsible 
15Vendor Program, the provider shall deliver proof of completion 
16either through mail or electronic communication to the 
17dispensing organization, which shall retain a copy of the 
18certificate.
19 (l) The license of a dispensing organization or medical 
20cannabis dispensing organization whose owners, managers, 
21employees, or agents fail to comply with this Section may be 
22suspended or permanently revoked under Section 15-145 or may 
23face other disciplinary action.
24 (m) The regulation of dispensing organization and medical 
25cannabis dispensing employer and employee training is an 
26exclusive function of the State, and regulation by a unit of 
 
 
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1local government, including a home rule unit, is prohibited. 
2This subsection (m) is a denial and limitation of home rule 
3powers and functions under subsection (h) of Section 6 of 
4Article VII of the Illinois Constitution.
5 (n) Persons seeking Department approval to offer the 
6training required by paragraph (3) of subsection (i) may apply 
7for such approval between August 1 and August 15 of each 
8odd-numbered year in a manner prescribed by the Department.
9 (o) Persons seeking Department approval to offer the 
10training required by paragraph (3) of subsection (i) shall 
11submit a nonrefundable application fee of $2,000 to be 
12deposited into the Cannabis Regulation Fund or a fee as may be 
13set by rule. Any changes made to the training module shall be 
14approved by the Department. 
15 (p) The Department may not shall not unreasonably deny 
16approval of a training module that meets all the requirements 
17of paragraph (3) of subsection (i). A denial of approval shall 
18include a detailed description of the reasons for the denial.
19 (q) Any person approved to provide the training required 
20by paragraph (3) of subsection (i) shall submit an application 
21for re-approval between August 1 and August 15 of each 
22odd-numbered year and include a nonrefundable application fee 
23of $2,000 to be deposited into the Cannabis Regulation Fund or 
24a fee as may be set by rule.
25 (r) All persons applying to become or renewing their 
26registrations to be agents, including agents-in-charge and 
 
 
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1principal officers, shall disclose any disciplinary action 
2taken against them that may have occurred in Illinois, another 
3state, or another country in relation to their employment at a 
4cannabis business establishment or at any cannabis cultivation 
5center, processor, infuser, dispensary, or other cannabis 
6business establishment.
7 (s) An agent applicant may begin employment at a 
8dispensing organization while the agent applicant's 
9identification card application is pending. Upon approval, the 
10Department shall issue the agent's identification card to the 
11agent. If denied, the dispensing organization and the agent 
12applicant shall be notified and the agent applicant must cease 
13all activity at the dispensing organization immediately. 
14 (t) The Department and the Department of Agriculture may 
15develop and implement an integrated system to issue an agent 
16identification card which identifies a dispensary agent 
17licensed by the Department as well as any cultivator, craft 
18grower, transporter, community college program or infuser 
19license or registration the agent may simultaneously hold.
20(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 
21102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff. 
225-13-22.)

23 (410 ILCS 705/15-50)
24 Sec. 15-50. Disclosure of ownership and control. 
25 (a) Each dispensing organization applicant and licensee 
 
 
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1shall file and maintain a Table of Organization, Ownership, 
2and Control with the Department. The Table of Organization, 
3Ownership, and Control shall contain the information required 
4by this Section in sufficient detail to identify all owners, 
5directors, and principal officers, and the title of each 
6principal officer or business entity that, through direct or 
7indirect means, manages, owns, or controls the applicant or 
8licensee.
9 (b) The Table of Organization, Ownership, and Control 
10shall identify the following information:
11  (1) The management structure, ownership, and control 
12 of the applicant or license holder including the name of 
13 each principal officer or business entity, the office or 
14 position held, and the percentage ownership interest, if 
15 any. If the business entity has a parent company, the name 
16 of each owner, board member, and officer of the parent 
17 company and his or her percentage ownership interest in 
18 the parent company and the dispensing organization.
19  (2) If the applicant or licensee is a business entity 
20 with publicly traded stock, the identification of 
21 ownership shall be provided as required in subsection (c).
22 (c) If a business entity identified in subsection (b) is a 
23publicly traded company, the following information shall be 
24provided in the Table of Organization, Ownership, and Control:
25  (1) The name and percentage of ownership interest of 
26 each individual or business entity with ownership of more 
 
 
SB3940- 101 -LRB103 40496 RJT 72952 b


1 than 5% of the voting shares of the entity, to the extent 
2 such information is known or contained in 13D or 13G 
3 Securities and Exchange Commission filings.
4  (2) To the extent known, the names and percentage of 
5 interest of ownership of persons who are relatives of one 
6 another and who together exercise control over or own more 
7 than 10% of the voting shares of the entity.
8 (d) A dispensing organization with a parent company or 
9companies, or partially owned or controlled by another entity 
10must disclose to the Department the relationship and all 
11owners, board members, officers, or individuals with control 
12or management of those entities. A dispensing organization 
13shall not shield its ownership or control from the Department.
14 (e) All principal officers must submit a complete online 
15application with the Department within 14 days of the 
16dispensing organization being licensed by the Department or 
17within 14 days of Department notice of approval as a new 
18principal officer.
19 (f) A principal officer may not allow his or her 
20registration to expire. 
21 (g) A dispensing organization separating with a principal 
22officer must do so under this Act. The principal officer must 
23communicate the separation to the Department within 5 business 
24days.
25 (h) A principal officer not in compliance with the 
26requirements of this Act shall be removed from his or her 
 
 
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1position with the dispensing organization or shall otherwise 
2terminate his or her affiliation. Failure to do so may subject 
3the dispensing organization to discipline, suspension, or 
4revocation of its license by the Department.
5 (i) It is the responsibility of the dispensing 
6organization and its principal officers to promptly notify the 
7Department of any change of the principal place of business 
8address, hours of operation, change in ownership or control, 
9or a change of the dispensing organization's primary or 
10secondary contact information. Any changes must be made to the 
11Department in writing. 
12(Source: P.A. 101-27, eff. 6-25-19.)

13 (410 ILCS 705/15-70)
14 Sec. 15-70. Operational requirements; prohibitions. 
15 (a) A dispensing organization shall operate in accordance 
16with the representations made in its application and license 
17materials. It shall be in compliance with this Act and rules.
18 (b) (Blank). A dispensing organization must include the 
19legal name of the dispensary on the packaging of any cannabis 
20product it sells.
21 (c) All cannabis, cannabis-infused products, and cannabis 
22seeds must be obtained from an Illinois registered adult use 
23cultivation center, craft grower, infuser, or another 
24dispensary.
25 (d) Dispensing organizations are prohibited from selling 
 
 
SB3940- 103 -LRB103 40496 RJT 72952 b


1any product containing alcohol except tinctures, which must be 
2limited to containers that are no larger than 100 milliliters.
3 (e) A dispensing organization shall inspect and count 
4product received from a transporting organization, adult use 
5cultivation center, craft grower, infuser organization, or 
6other dispensing organization before dispensing it.
7 (f) A dispensing organization may only accept cannabis 
8deliveries into a restricted access area. Deliveries may not 
9be accepted through the public or limited access areas unless 
10otherwise approved by the Department.
11 (g) A dispensing organization shall maintain compliance 
12with State and local building, fire, and zoning requirements 
13or regulations.
14 (h) A dispensing organization shall submit a list to the 
15Department of the names of all service professionals that will 
16work at the dispensary. The list shall include a description 
17of the type of business or service provided. Changes to the 
18service professional list shall be promptly provided. No 
19service professional shall work in the dispensary until the 
20name is provided to the Department on the service professional 
21list.
22 (i) A dispensing organization's license allows for a 
23dispensary to be operated only at a single location.
24 (j) A dispensary may operate between 6 a.m. and 10 p.m. 
25local time.
26 (k) A dispensing organization must keep all lighting 
 
 
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1outside and inside the dispensary in good working order and 
2wattage sufficient for security cameras.
3 (l) A dispensing organization must keep all air treatment 
4systems that will be installed to reduce odors in good working 
5order.
6 (m) A dispensing organization must contract with a private 
7security contractor that is licensed under Section 10-5 of the 
8Private Detective, Private Alarm, Private Security, 
9Fingerprint Vendor, and Locksmith Act of 2004 to provide 
10on-site security at all hours of the dispensary's operation.
11 (n) A dispensing organization shall ensure that any 
12building or equipment used by a dispensing organization for 
13the storage or sale of cannabis is maintained in a clean and 
14sanitary condition.
15 (o) The dispensary shall be free from infestation by 
16insects, rodents, or pests.
17 (p) A dispensing organization shall not:
18  (1) Produce or manufacture cannabis;
19  (2) Accept a cannabis product from an adult use 
20 cultivation center, craft grower, infuser, dispensing 
21 organization, or transporting organization unless it is 
22 pre-packaged and labeled in accordance with this Act and 
23 any rules that may be adopted pursuant to this Act;
24  (3) Obtain cannabis or cannabis-infused products from 
25 outside the State of Illinois;
26  (4) Sell cannabis or cannabis-infused products to a 
 
 
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1 purchaser unless the dispensing organization is licensed 
2 under the Compassionate Use of Medical Cannabis Program 
3 Act, and the individual is registered under the 
4 Compassionate Use of Medical Cannabis Program or the 
5 purchaser has been verified to be 21 years of age or older;
6  (5) Enter into an exclusive agreement with any adult 
7 use cultivation center, craft grower, or infuser. 
8 Dispensaries shall provide consumers an assortment of 
9 products from various cannabis business establishment 
10 licensees such that the inventory available for sale at 
11 any dispensary from any single cultivation center, craft 
12 grower, processor, transporter, or infuser entity shall 
13 not be more than 40% of the total inventory available for 
14 sale. For the purpose of this subsection, a cultivation 
15 center, craft grower, processor, or infuser shall be 
16 considered part of the same entity if the licensees share 
17 at least one principal officer. The Department may request 
18 that a dispensary diversify its products as needed or 
19 otherwise discipline a dispensing organization for 
20 violating this requirement;
21  (6) Refuse to conduct business with an adult use 
22 cultivation center, craft grower, transporting 
23 organization, or infuser that has the ability to properly 
24 deliver the product and is permitted by the Department of 
25 Agriculture, on the same terms as other adult use 
26 cultivation centers, craft growers, infusers, or 
 
 
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1 transporters with whom it is dealing;
2  (7) Operate drive-through windows;
3  (8) Allow for the dispensing of cannabis or 
4 cannabis-infused products in vending machines;
5  (9) Transport cannabis to residences or other 
6 locations where purchasers may be for delivery;
7  (10) Enter into agreements to allow persons who are 
8 not dispensing organization agents to deliver cannabis or 
9 to transport cannabis to purchasers;
10  (11) Operate a dispensary if its video surveillance 
11 equipment is inoperative;
12  (12) Operate a dispensary if the point-of-sale 
13 equipment is inoperative;
14  (13) Operate a dispensary if the State's cannabis 
15 electronic verification system is inoperative;
16  (14) Have fewer than 2 people working at the 
17 dispensary at any time while the dispensary is open;
18  (15) Be located within 1,500 feet of the property line 
19 of a pre-existing dispensing organization, unless the 
20 applicant is a Social Equity Applicant or Social Equity 
21 Justice Involved Applicant located or seeking to locate 
22 within 1,500 feet of a dispensing organization licensed 
23 under Section 15-15 or Section 15-20;
24  (16) Sell clones or any other live plant material;
25  (17) Sell cannabis, cannabis concentrate, or 
26 cannabis-infused products in combination or bundled with 
 
 
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1 each other or any other items for one price, and each item 
2 of cannabis, concentrate, or cannabis-infused product must 
3 be separately identified by quantity and price on the 
4 receipt;
5  (18) Violate any other requirements or prohibitions 
6 set by Department rules.
7 (q) It is unlawful for any person having an Early Approval 
8Adult Use Cannabis Dispensing Organization License, a 
9Conditional Adult Use Cannabis Dispensing Organization, an 
10Adult Use Dispensing Organization License, or a medical 
11cannabis dispensing organization license issued under the 
12Compassionate Use of Medical Cannabis Program Act or any 
13officer, associate, member, representative, or agent of such 
14licensee to accept, receive, or borrow money or anything else 
15of value or accept or receive credit (other than merchandising 
16credit in the ordinary course of business for a period not to 
17exceed 30 days) directly or indirectly from any adult use 
18cultivation center, craft grower, infuser, or transporting 
19organization in exchange for preferential placement on the 
20dispensing organization's shelves, display cases, or website. 
21This includes anything received or borrowed or from any 
22stockholders, officers, agents, or persons connected with an 
23adult use cultivation center, craft grower, infuser, or 
24transporting organization.
25 (r) It is unlawful for any person having an Early Approval 
26Adult Use Cannabis Dispensing Organization License, a 
 
 
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1Conditional Adult Use Cannabis Dispensing Organization, an 
2Adult Use Dispensing Organization License, or a medical 
3cannabis dispensing organization license issued under the 
4Compassionate Use of Medical Cannabis Program to enter into 
5any contract with any person licensed to cultivate, process, 
6or transport cannabis whereby such dispensing organization 
7agrees not to sell any cannabis cultivated, processed, 
8transported, manufactured, or distributed by any other 
9cultivator, transporter, or infuser, and any provision in any 
10contract violative of this Section shall render the whole of 
11such contract void and no action shall be brought thereon in 
12any court.
13(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 
14102-98, eff. 7-15-21.)

15 (410 ILCS 705/20-15)
16 Sec. 20-15. Conditional Adult Use Cultivation Center 
17application. 
18 (a) If the Department of Agriculture makes available 
19additional cultivation center licenses pursuant to Section 
2020-5, applicants for a Conditional Adult Use Cultivation 
21Center License shall electronically submit the following in 
22such form as the Department of Agriculture may direct:
23  (1) the nonrefundable application fee set by rule by 
24 the Department of Agriculture, to be deposited into the 
25 Cannabis Regulation Fund;
 
 
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1  (2) the legal name of the cultivation center;
2  (3) the proposed physical address of the cultivation 
3 center;
4  (4) the name, address, social security number, and 
5 date of birth of each principal officer and board member 
6 of the cultivation center; each principal officer and 
7 board member shall be at least 21 years of age;
8  (5) the details of any administrative or judicial 
9 proceeding in which any of the principal officers or board 
10 members of the cultivation center (i) pled guilty, were 
11 convicted, were fined, or had a registration or license 
12 suspended or revoked, or (ii) managed or served on the 
13 board of a business or non-profit organization that pled 
14 guilty, was convicted, was fined, or had a registration or 
15 license suspended or revoked;
16  (6) proposed operating bylaws that include procedures 
17 for the oversight of the cultivation center, including the 
18 development and implementation of a plant monitoring 
19 system, accurate recordkeeping, staffing plan, and 
20 security plan approved by the Illinois State Police that 
21 are in accordance with the rules issued by the Department 
22 of Agriculture under this Act. A physical inventory shall 
23 be performed of all plants and cannabis on a weekly basis 
24 by the cultivation center;
25  (7) verification from the Illinois State Police that 
26 all background checks of the prospective principal 
 
 
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1 officers, board members, and agents of the cannabis 
2 business establishment have been conducted;
3  (8) a copy of the current local zoning ordinance or 
4 permit and verification that the proposed cultivation 
5 center is in compliance with the local zoning rules and 
6 distance limitations established by the local 
7 jurisdiction;
8  (9) proposed employment practices, in which the 
9 applicant must demonstrate a plan of action to inform, 
10 hire, and educate minorities, women, veterans, and persons 
11 with disabilities, engage in fair labor practices, and 
12 provide worker protections;
13  (10) whether an applicant can demonstrate experience 
14 in or business practices that promote economic empowerment 
15 in Disproportionately Impacted Areas;
16  (11) experience with the cultivation of agricultural 
17 or horticultural products, operating an agriculturally 
18 related business, or operating a horticultural business;
19  (12) a description of the enclosed, locked facility 
20 where cannabis will be grown, harvested, manufactured, 
21 processed, packaged, or otherwise prepared for 
22 distribution to a dispensing organization;
23  (13) a survey of the enclosed, locked facility, 
24 including the space used for cultivation;
25  (14) cultivation, processing, inventory, and packaging 
26 plans;
 
 
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1  (15) a description of the applicant's experience with 
2 agricultural cultivation techniques and industry 
3 standards;
4  (16) a list of any academic degrees, certifications, 
5 or relevant experience of all prospective principal 
6 officers, board members, and agents of the related 
7 business;
8  (17) the identity of every person having a financial 
9 or voting interest of 5% or greater in the cultivation 
10 center operation with respect to which the license is 
11 sought, whether a trust, corporation, partnership, limited 
12 liability company, or sole proprietorship, including the 
13 name and address of each person;
14  (18) a plan describing how the cultivation center will 
15 address each of the following:
16   (i) energy needs, including estimates of monthly 
17 electricity and gas usage, to what extent it will 
18 procure energy from a local utility or from on-site 
19 generation, and if it has or will adopt a sustainable 
20 energy use and energy conservation policy;
21   (ii) water needs, including estimated water draw 
22 and if it has or will adopt a sustainable water use and 
23 water conservation policy; and
24   (iii) waste management, including if it has or 
25 will adopt a waste reduction policy; 
26  (19) a diversity plan that includes a narrative of not 
 
 
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1 more than 2,500 words that establishes a goal of diversity 
2 in ownership, management, employment, and contracting to 
3 ensure that diverse participants and groups are afforded 
4 equality of opportunity;
5  (20) any other information required by rule;
6  (21) a recycling plan:
7   (A) Purchaser packaging, including cartridges, 
8 shall be accepted by the applicant and recycled.
9   (B) Any recyclable waste generated by the cannabis 
10 cultivation facility shall be recycled per applicable 
11 State and local laws, ordinances, and rules.
12   (C) Any cannabis waste, liquid waste, or hazardous 
13 waste shall be disposed of in accordance with 8 Ill. 
14 Adm. Code 1000.460, except, to the greatest extent 
15 feasible, all cannabis plant waste will be rendered 
16 unusable by grinding and incorporating the cannabis 
17 plant waste with compostable mixed waste to be 
18 disposed of in accordance with 8 Ill. Adm. Code 
19 1000.460(g)(1);
20  (22) commitment to comply with local waste provisions: 
21 a cultivation facility must remain in compliance with 
22 applicable State and federal environmental requirements, 
23 including, but not limited to:
24   (A) storing, securing, and managing all 
25 recyclables and waste, including organic waste 
26 composed of or containing finished cannabis and 
 
 
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1 cannabis products, in accordance with applicable State 
2 and local laws, ordinances, and rules; and
3   (B) disposing liquid waste containing cannabis or 
4 byproducts of cannabis processing in compliance with 
5 all applicable State and federal requirements, 
6 including, but not limited to, the cannabis 
7 cultivation facility's permits under Title X of the 
8 Environmental Protection Act; and
9  (23) a commitment to a technology standard for 
10 resource efficiency of the cultivation center facility.
11   (A) A cannabis cultivation facility commits to use 
12 resources efficiently, including energy and water. For 
13 the following, a cannabis cultivation facility commits 
14 to meet or exceed the technology standard identified 
15 in items (i), (ii), (iii), and (iv), which may be 
16 modified by rule:
17    (i) lighting systems, including light bulbs;
18    (ii) HVAC system;
19    (iii) water application system to the crop; 
20 and
21    (iv) filtration system for removing 
22 contaminants from wastewater.
23   (B) Lighting. The Lighting Power Densities (LPD) 
24 for cultivation space commits to not exceed an average 
25 of 36 watts per gross square foot of active and growing 
26 space canopy, or all installed lighting technology 
 
 
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1 shall meet a photosynthetic photon efficacy (PPE) of 
2 no less than 2.2 micromoles per joule fixture and 
3 shall be featured on the DesignLights Consortium (DLC) 
4 Horticultural Specification Qualified Products List 
5 (QPL). In the event that DLC requirement for minimum 
6 efficacy exceeds 2.2 micromoles per joule fixture, 
7 that PPE shall become the new standard.
8   (C) HVAC. The (i) For cannabis grow operations 
9 with less than 6,000 square feet of canopy, the 
10 licensee commits that all HVAC units will be 
11 high-efficiency ductless split HVAC units, or other 
12 more energy efficient equipment. 
13    (ii) For cannabis grow operations with 6,000 
14 square feet of canopy or more, the licensee 
15 commits that all HVAC units will be variable 
16 refrigerant flow HVAC units, or other more energy 
17 efficient equipment.
18   (D) Water application.
19    (i) The cannabis cultivation facility commits 
20 to use automated watering systems, including, but 
21 not limited to, drip irrigation and flood tables, 
22 to irrigate cannabis crops crop.
23    (ii) The cannabis cultivation facility commits 
24 to measure runoff from watering events and report 
25 this volume in its water usage plan, and that on 
26 average, watering events shall have no more than 
 
 
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1 20% of runoff of water. 
2   (E) Filtration. The cultivator commits that HVAC 
3 condensate, dehumidification water, excess runoff, and 
4 other wastewater produced by the cannabis cultivation 
5 facility shall be captured and filtered to the best of 
6 the facility's ability to achieve the quality needed 
7 to be reused in subsequent watering rounds.
8   (F) Reporting energy use and efficiency as 
9 required by rule.
10 (b) Applicants must submit all required information, 
11including the information required in Section 20-10, to the 
12Department of Agriculture. Failure by an applicant to submit 
13all required information may result in the application being 
14disqualified.
15 (c) If the Department of Agriculture receives an 
16application with missing information, the Department of 
17Agriculture may issue a deficiency notice to the applicant. 
18The applicant shall have 10 calendar days from the date of the 
19deficiency notice to resubmit the incomplete information. 
20Applications that are still incomplete after this opportunity 
21to cure will not be scored and will be disqualified.
22 (e) A cultivation center that is awarded a Conditional 
23Adult Use Cultivation Center License pursuant to the criteria 
24in Section 20-20 shall not grow, purchase, possess, or sell 
25cannabis or cannabis-infused products until the person has 
26received an Adult Use Cultivation Center License issued by the 
 
 
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1Department of Agriculture pursuant to Section 20-21 of this 
2Act. 
3(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 
4102-538, eff. 8-20-21.)

5 (410 ILCS 705/20-30)
6 Sec. 20-30. Cultivation center requirements; prohibitions. 
7 (a) The operating documents of a cultivation center shall 
8include procedures for the oversight of the cultivation 
9center, a cannabis plant monitoring system including a 
10physical inventory recorded weekly, accurate recordkeeping, 
11and a staffing plan.
12 (b) A cultivation center shall implement a security plan 
13reviewed by the Illinois State Police that includes, but is 
14not limited to: facility access controls, perimeter intrusion 
15detection systems, personnel identification systems, 24-hour 
16surveillance system to monitor the interior and exterior of 
17the cultivation center facility and accessibility to 
18authorized law enforcement, the Department of Public Health 
19where processing takes place, and the Department of 
20Agriculture in real time.
21 (c) All cultivation of cannabis by a cultivation center 
22must take place in an enclosed, locked facility at the 
23physical address provided to the Department of Agriculture 
24during the licensing process. The cultivation center location 
25shall only be accessed by the agents working for the 
 
 
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1cultivation center, the Department of Agriculture staff 
2performing inspections, the Department of Public Health staff 
3performing inspections, local and State law enforcement or 
4other emergency personnel, contractors working on jobs 
5unrelated to cannabis, such as installing or maintaining 
6security devices or performing electrical wiring, transporting 
7organization agents as provided in this Act, individuals in a 
8mentoring or educational program approved by the State, or 
9other individuals as provided by rule.
10 (d) A cultivation center may not sell or distribute any 
11cannabis, or cannabis-infused products, or any other product 
12to any person other than a dispensing organization, craft 
13grower, infuser organization, transporter, or as otherwise 
14authorized by rule.
15 (e) A cultivation center may not either directly or 
16indirectly discriminate in price between different dispensing 
17organizations, craft growers, or infuser organizations that 
18are purchasing a like grade, strain, brand, and quality of 
19cannabis or cannabis-infused product. Nothing in this 
20subsection (e) prevents a cultivation center from pricing 
21cannabis differently based on differences in the cost of 
22manufacturing or processing, the quantities sold, such as 
23volume discounts, or the way the products are delivered.
24 (f) All cannabis harvested by a cultivation center and 
25intended for distribution to a dispensing organization must be 
26entered into a data collection system, packaged and labeled 
 
 
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1under Section 55-21, and placed into a cannabis container for 
2transport. All cannabis harvested by a cultivation center and 
3intended for distribution to a craft grower or infuser 
4organization must be packaged in a labeled cannabis container 
5and entered into a data collection system before transport.
6 (g) Cultivation centers are subject to random inspections 
7by the Department of Agriculture, the Department of Public 
8Health, local safety or health inspectors, the Illinois State 
9Police, or as provided by rule.
10 (h) A cultivation center 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 or in person, or by 
14written or electronic communication.
15 (i) A cultivation center shall comply with all State and 
16any applicable federal rules and regulations regarding the use 
17of pesticides on cannabis plants.
18 (j) No person or entity shall hold any legal, equitable, 
19ownership, or beneficial interest, directly or indirectly, of 
20more than 3 cultivation centers licensed under this Article. 
21Further, no person or entity that is employed by, an agent of, 
22has a contract to receive payment in any form from a 
23cultivation center, is a principal officer of a cultivation 
24center, or entity controlled by or affiliated with a principal 
25officer of a cultivation shall hold any legal, equitable, 
26ownership, or beneficial interest, directly or indirectly, in 
 
 
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1a cultivation that would result in the person or entity owning 
2or controlling in combination with any cultivation center, 
3principal officer of a cultivation center, or entity 
4controlled or affiliated with a principal officer of a 
5cultivation center by which he, she, or it is employed, is an 
6agent of, or participates in the management of, more than 3 
7cultivation center licenses.
8 (k) A cultivation center may not contain more than 210,000 
9square feet of canopy space for plants in the flowering stage 
10for cultivation of adult use cannabis as provided in this Act.
11 (l) A cultivation center may process cannabis, cannabis 
12concentrates, and cannabis-infused products.
13 (m) Beginning July 1, 2020, a cultivation center shall not 
14transport cannabis or cannabis-infused products to a craft 
15grower, dispensing organization, infuser organization, or 
16laboratory licensed under this Act, unless it has obtained a 
17transporting organization license.
18 (n) It is unlawful for any person having a cultivation 
19center license or any officer, associate, member, 
20representative, or agent of such licensee to offer or deliver 
21money, or anything else of value, directly or indirectly to 
22any person having an Early Approval Adult Use Dispensing 
23Organization License, a Conditional Adult Use Dispensing 
24Organization License, an Adult Use Dispensing Organization 
25License, or a medical cannabis dispensing organization license 
26issued under the Compassionate Use of Medical Cannabis Program 
 
 
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1Act, or to any person connected with or in any way 
2representing, or to any member of the family of, such person 
3holding an Early Approval Adult Use Dispensing Organization 
4License, a Conditional Adult Use Dispensing Organization 
5License, an Adult Use Dispensing Organization License, or a 
6medical cannabis dispensing organization license issued under 
7the Compassionate Use of Medical Cannabis Program Act, or to 
8any stockholders in any corporation engaged in the retail sale 
9of cannabis, or to any officer, manager, agent, or 
10representative of the Early Approval Adult Use Dispensing 
11Organization License, a Conditional Adult Use Dispensing 
12Organization License, an Adult Use Dispensing Organization 
13License, or a medical cannabis dispensing organization license 
14issued under the Compassionate Use of Medical Cannabis Program 
15Act to obtain preferential placement within the dispensing 
16organization, including, without limitation, on shelves and in 
17display cases where purchasers can view products, or on the 
18dispensing organization's website.
19 (o) A cultivation center must comply with any other 
20requirements or prohibitions set by administrative rule of the 
21Department of Agriculture.
22(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 
23102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff. 
245-13-22.)

25 (410 ILCS 705/20-32 new)
 
 
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1 Sec. 20-32. Rules concerning application of pesticides. 
2Within one year after the effective date of this amendatory 
3Act of the 103rd General Assembly, the Department shall adopt 
4rules prohibiting the application of pesticides to cannabis 
5plants in the flowering stage in a cultivation center.

6 (410 ILCS 705/20-35)
7 Sec. 20-35. Cultivation center agent identification card. 
8 (a) The Department of Agriculture shall:
9  (1) establish by rule the information required in an 
10 initial application or renewal application for an agent 
11 identification card submitted under this Act and the 
12 nonrefundable fee to accompany the initial application or 
13 renewal application;
14  (2) verify the information contained in an initial 
15 application or renewal application for an agent 
16 identification card submitted under this Act, and approve 
17 or deny an application within 30 days of receiving a 
18 completed initial application or renewal application and 
19 all supporting documentation required by rule;
20  (3) issue an agent identification card to a qualifying 
21 agent within 15 business days of approving the initial 
22 application or renewal application;
23  (4) enter the license number of the cultivation center 
24 where the agent works; and
25  (5) allow for an electronic initial application and 
 
 
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1 renewal application process, and provide a confirmation by 
2 electronic or other methods that an application has been 
3 submitted. The Department of Agriculture may by rule 
4 require prospective agents to file their applications by 
5 electronic means and provide notices to the agents by 
6 electronic means.
7 (b) An agent must keep his or her identification card 
8visible at all times when on the property of the cultivation 
9center at which the agent is employed.
10 (c) The agent identification cards shall contain the 
11following:
12  (1) the name of the cardholder;
13  (2) the date of issuance and expiration date of the 
14 identification card;
15  (3) a random 10-digit alphanumeric identification 
16 number containing at least 4 numbers and at least 4 
17 letters that is unique to the holder;
18  (4) a photograph of the cardholder; and
19  (5) the legal name of the cultivation center employing 
20 the agent.
21 (d) An agent identification card shall be immediately 
22returned to the cultivation center of the agent upon 
23termination of his or her employment.
24 (e) Any agent identification card lost by a cultivation 
25center agent shall be reported to the Illinois State Police 
26and the Department of Agriculture immediately upon discovery 
 
 
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1of the loss.
2 (f) The Department of Agriculture may not shall not issue 
3an agent identification card if the applicant is delinquent in 
4filing any required tax returns or paying any amounts owed to 
5the State of Illinois.
6 (g) The Department and the Department of Financial and 
7Professional Regulation may develop and implement an 
8integrated system to issue an agent identification card which 
9identifies a cultivation center agent licensed by the 
10Department as well as any craft grower, transporter, 
11dispensing organization, community college program or infuser 
12license or registration the agent may simultaneously hold.
13(Source: P.A. 101-27, eff. 6-25-19; 102-538, eff. 8-20-21.)

14 (410 ILCS 705/20-45)
15 Sec. 20-45. Renewal of cultivation center licenses and 
16agent identification cards. 
17 (a) Licenses and identification cards issued under this 
18Act shall be renewed annually. A cultivation center shall 
19receive written or electronic notice 90 days before the 
20expiration of its current license that the license will 
21expire. The Department of Agriculture shall grant a renewal 
22within 45 days of submission of a renewal application if:
23  (1) the cultivation center submits a renewal 
24 application and the required nonrefundable renewal fee of 
25 $100,000, or another amount as the Department of 
 
 
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1 Agriculture may set by rule after January 1, 2021, to be 
2 deposited into the Cannabis Regulation Fund.
3  (2) the Department of Agriculture has not suspended 
4 the license of the cultivation center or suspended or 
5 revoked the license for violating this Act or rules 
6 adopted under this Act;
7  (3) the cultivation center has continued to operate in 
8 accordance with all plans submitted as part of its 
9 application and approved by the Department of Agriculture 
10 or any amendments thereto that have been approved by the 
11 Department of Agriculture; 
12  (4) the cultivation center has submitted an agent, 
13 employee, contracting, and subcontracting diversity report 
14 as required by the Department; and
15  (5) the cultivation center has submitted an 
16 environmental impact report.
17 (b) If a cultivation center fails to renew its license 
18before expiration, it shall cease operations until its license 
19is renewed.
20 (c) If a cultivation center agent fails to renew his or her 
21identification card before its expiration, he or she shall 
22cease to work as an agent of the cultivation center until his 
23or her identification card is renewed.
24 (d) Any cultivation center that continues to operate, or 
25any cultivation center agent who continues to work as an 
26agent, after the applicable license or identification card has 
 
 
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1expired without renewal is subject to the penalties provided 
2under Section 45-5.
3 (e) The Department of Agriculture may not renew a license 
4or an agent identification card if the applicant is delinquent 
5in filing any required tax returns or paying any amounts owed 
6to the State. 
7(Source: P.A. 101-27, eff. 6-25-19.)

8 (410 ILCS 705/25-35)
9 (Section scheduled to be repealed on July 1, 2026)
10 Sec. 25-35. Community College Cannabis Vocational Training 
11Pilot Program faculty participant agent identification card. 
12 (a) The Department shall:
13  (1) establish by rule the information required in an 
14 initial application or renewal application for an agent 
15 identification card submitted under this Article and the 
16 nonrefundable fee to accompany the initial application or 
17 renewal application;
18  (2) verify the information contained in an initial 
19 application or renewal application for an agent 
20 identification card submitted under this Article, and 
21 approve or deny an application within 30 days of receiving 
22 a completed initial application or renewal application and 
23 all supporting documentation required by rule;
24  (3) issue an agent identification card to a qualifying 
25 agent within 15 business days of approving the initial 
 
 
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1 application or renewal application;
2  (4) enter the license number of the community college 
3 where the agent works; and
4  (5) allow for an electronic initial application and 
5 renewal application process, and provide a confirmation by 
6 electronic or other methods that an application has been 
7 submitted. Each Department may by rule require prospective 
8 agents to file their applications by electronic means and 
9 to provide notices to the agents by electronic means.
10 (b) An agent must keep his or her identification card 
11visible at all times when in the enclosed, locked facility, or 
12facilities for which he or she is an agent.
13 (c) The agent identification cards shall contain the 
14following:
15  (1) the name of the cardholder;
16  (2) the date of issuance and expiration date of the 
17 identification card;
18  (3) a random 10-digit alphanumeric identification 
19 number containing at least 4 numbers and at least 4 
20 letters that is unique to the holder;
21  (4) a photograph of the cardholder; and
22  (5) the legal name of the community college employing 
23 the agent.
24 (d) An agent identification card shall be immediately 
25returned to the community college of the agent upon 
26termination of his or her employment.
 
 
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1 (e) Any agent identification card lost shall be reported 
2to the Illinois State Police and the Department of Agriculture 
3immediately upon discovery of the loss.
4 (f) An agent applicant may begin employment at a Community 
5College Cannabis Vocational Training Pilot Program while the 
6agent applicant's identification card application is pending. 
7Upon approval, the Department shall issue the agent's 
8identification card to the agent. If denied, the Community 
9College Cannabis Vocational Training Pilot Program and the 
10agent applicant shall be notified and the agent applicant must 
11cease all activity at the Community College Cannabis 
12Vocational Training Pilot Program immediately. 
13 (g) The Department of Agriculture may not issue an agent 
14identification card if the applicant is delinquent in filing 
15any required tax returns or paying any amounts owed to the 
16State.
17 (h) The Department of Agriculture and the Department of 
18Financial and Professional Regulation may develop and 
19implement an integrated system to issue an agent 
20identification card which identifies a community college 
21program agent licensed by the Department as well as any 
22cultivation center, craft grower, transporter, dispensing 
23organization, or infuser license or registration the agent may 
24simultaneously hold. 
25(Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21; 
26102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)

 
 
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1 (410 ILCS 705/30-30)
2 Sec. 30-30. Craft grower requirements; prohibitions. 
3 (a) The operating documents of a craft grower shall 
4include procedures for the oversight of the craft grower, a 
5cannabis plant monitoring system including a physical 
6inventory recorded weekly, accurate recordkeeping, and a 
7staffing plan.
8 (b) A craft grower shall implement a security plan 
9reviewed by the Illinois State Police that includes, but is 
10not limited to: facility access controls, perimeter intrusion 
11detection systems, personnel identification systems, and a 
1224-hour surveillance system to monitor the interior and 
13exterior of the craft grower facility and that is accessible 
14to authorized law enforcement and the Department of 
15Agriculture in real time. 
16 (c) All cultivation of cannabis by a craft grower must 
17take place in an enclosed, locked facility at the physical 
18address provided to the Department of Agriculture during the 
19licensing process. The craft grower location shall only be 
20accessed by the agents working for the craft grower, the 
21Department of Agriculture staff performing inspections, the 
22Department of Public Health staff performing inspections, 
23State and local law enforcement or other emergency personnel, 
24contractors working on jobs unrelated to cannabis, such as 
25installing or maintaining security devices or performing 
 
 
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1electrical wiring, transporting organization agents as 
2provided in this Act, or participants in the incubator 
3program, individuals in a mentoring or educational program 
4approved by the State, or other individuals as provided by 
5rule. However, if a craft grower shares a premises with an 
6infuser or dispensing organization, agents from those other 
7licensees may access the craft grower portion of the premises 
8if that is the location of common bathrooms, lunchrooms, 
9locker rooms, or other areas of the building where work or 
10cultivation of cannabis is not performed. At no time may an 
11infuser or dispensing organization agent perform work at a 
12craft grower without being a registered agent of the craft 
13grower.
14 (d) A craft grower may not sell or distribute any cannabis 
15or any other product to any person other than a cultivation 
16center, a craft grower, an infuser organization, a dispensing 
17organization, or as otherwise authorized by rule.
18 (e) A craft grower may not be located in an area zoned for 
19residential use.
20 (f) A craft grower may not either directly or indirectly 
21discriminate in price between different cannabis business 
22establishments that are purchasing a like grade, strain, 
23brand, and quality of cannabis or cannabis-infused product. 
24Nothing in this subsection (f) prevents a craft grower from 
25pricing cannabis differently based on differences in the cost 
26of manufacturing or processing, the quantities sold, such as 
 
 
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1volume discounts, or the way the products are delivered.
2 (g) All cannabis harvested by a craft grower and intended 
3for distribution to a dispensing organization must be entered 
4into a data collection system, packaged and labeled under 
5Section 55-21, and, if distribution is to a dispensing 
6organization that does not share a premises with the 
7dispensing organization receiving the cannabis, placed into a 
8cannabis container for transport. All cannabis harvested by a 
9craft grower and intended for distribution to a cultivation 
10center, to an infuser organization, or to a craft grower with 
11which it does not share a premises, must be packaged in a 
12labeled cannabis container and entered into a data collection 
13system before transport.
14 (h) Craft growers are subject to random inspections by the 
15Department of Agriculture, local safety or health inspectors, 
16the Illinois State Police, or as provided by rule.
17 (i) A craft grower agent shall notify local law 
18enforcement, the Illinois State Police, and the Department of 
19Agriculture within 24 hours of the discovery of any loss or 
20theft. Notification shall be made by phone, in person, or 
21written or electronic communication.
22 (j) A craft grower shall comply with all State and any 
23applicable federal rules and regulations regarding the use of 
24pesticides.
25 (k) A craft grower or craft grower agent shall not 
26transport cannabis or cannabis-infused products to any other 
 
 
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1cannabis business establishment without a transport 
2organization license unless:
3  (i) If the craft grower is located in a county with a 
4 population of 3,000,000 or more, the cannabis business 
5 establishment receiving the cannabis is within 2,000 feet 
6 of the property line of the craft grower;
7  (ii) If the craft grower is located in a county with a 
8 population of more than 700,000 but fewer than 3,000,000, 
9 the cannabis business establishment receiving the cannabis 
10 is within 2 miles of the craft grower; or
11  (iii) If the craft grower is located in a county with a 
12 population of fewer than 700,000, the cannabis business 
13 establishment receiving the cannabis is within 15 miles of 
14 the craft grower.
15 (l) A craft grower may enter into a contract with a 
16transporting organization to transport cannabis to a 
17cultivation center, a craft grower, an infuser organization, a 
18dispensing organization, or a laboratory.
19 (m) No person or entity shall hold any legal, equitable, 
20ownership, or beneficial interest, directly or indirectly, of 
21more than 3 craft grower licenses. Further, no person or 
22entity that is employed by, an agent of, or has a contract to 
23receive payment from or participate in the management of a 
24craft grower, is a principal officer of a craft grower, or 
25entity controlled by or affiliated with a principal officer of 
26a craft grower shall hold any legal, equitable, ownership, or 
 
 
SB3940- 132 -LRB103 40496 RJT 72952 b


1beneficial interest, directly or indirectly, in a craft grower 
2license that would result in the person or entity owning or 
3controlling in combination with any craft grower, principal 
4officer of a craft grower, or entity controlled or affiliated 
5with a principal officer of a craft grower by which he, she, or 
6it is employed, is an agent of, or participates in the 
7management of more than 3 craft grower licenses.
8 (n) It is unlawful for any person having a craft grower 
9license or any officer, associate, member, representative, or 
10agent of the licensee to offer or deliver money, or anything 
11else of value, directly or indirectly, to any person having an 
12Early Approval Adult Use Dispensing Organization License, a 
13Conditional Adult Use Dispensing Organization License, an 
14Adult Use Dispensing Organization License, or a medical 
15cannabis dispensing organization license issued under the 
16Compassionate Use of Medical Cannabis Program Act, or to any 
17person connected with or in any way representing, or to any 
18member of the family of, the person holding an Early Approval 
19Adult Use Dispensing Organization License, a Conditional Adult 
20Use Dispensing Organization License, an Adult Use Dispensing 
21Organization License, or a medical cannabis dispensing 
22organization license issued under the Compassionate Use of 
23Medical Cannabis Program Act, or to any stockholders in any 
24corporation engaged in the retail sale of cannabis, or to any 
25officer, manager, agent, or representative of the Early 
26Approval Adult Use Dispensing Organization License, a 
 
 
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1Conditional Adult Use Dispensing Organization License, an 
2Adult Use Dispensing Organization License, or a medical 
3cannabis dispensing organization license issued under the 
4Compassionate Use of Medical Cannabis Program Act to obtain 
5preferential placement within the dispensing organization, 
6including, without limitation, on shelves and in display cases 
7where purchasers can view products, or on the dispensing 
8organization's website.
9 (o) A craft grower shall not be located within 1,500 feet 
10of another craft grower or a cultivation center, except as 
11provided under Section 30-31.
12 (p) A craft grower may process cannabis, cannabis 
13concentrates, and cannabis-infused products.
14 (q) A craft grower must comply with any other requirements 
15or prohibitions set by administrative rule of the Department 
16of Agriculture.
17(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 
18102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff. 
195-13-22.)

20 (410 ILCS 705/30-31 new)
21 Sec. 30-31. Craft grower shared premises pilot program.
22 (a) The Department of Agriculture shall create a pilot 
23program that shall allow craft growers to share premises with 
24a cultivation center. The Department shall adopt rules to 
25specify that a craft grower may only locate within 1,500 feet 
 
 
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1of another craft grower or cultivation center upon approval by 
2the Department, that multiple craft growers may share a 
3premises within a single cultivation center. A craft grower 
4may not share a premises with another craft grower outside of a 
5cultivation center.
6 (b) The Department of Agriculture shall adopt rules by 
7January 1, 2025.
8 (c) This Section is repealed on January 1, 2030.

9 (410 ILCS 705/30-32 new)
10 Sec. 30-32. Rules concerning application of pesticides. 
11Within one year after the effective date of this amendatory 
12Act of the 103rd General Assembly, the Department shall adopt 
13rules prohibiting the application of pesticides to cannabis 
14plants in the flowering stage in a craft grower facility.

15 (410 ILCS 705/30-35)
16 Sec. 30-35. Craft grower agent identification card. 
17 (a) The Department of Agriculture shall:
18  (1) establish by rule the information required in an 
19 initial application or renewal application for an agent 
20 identification card submitted under this Act and the 
21 nonrefundable fee to accompany the initial application or 
22 renewal application;
23  (2) verify the information contained in an initial 
24 application or renewal application for an agent 
 
 
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1 identification card submitted under this Act and approve 
2 or deny an application within 30 days of receiving a 
3 completed initial application or renewal application and 
4 all supporting documentation required by rule;
5  (3) issue an agent identification card to a qualifying 
6 agent within 15 business days of approving the initial 
7 application or renewal application;
8  (4) enter the license number of the craft grower where 
9 the agent works; and
10  (5) allow for an electronic initial application and 
11 renewal application process, and provide a confirmation by 
12 electronic or other methods that an application has been 
13 submitted. The Department of Agriculture may by rule 
14 require prospective agents to file their applications by 
15 electronic means and provide notices to the agents by 
16 electronic means.
17 (b) An agent must keep his or her identification card 
18visible at all times when on the property of a cannabis 
19business establishment, including the craft grower 
20organization for which he or she is an agent.
21 (c) The agent identification cards shall contain the 
22following:
23  (1) the name of the cardholder;
24  (2) the date of issuance and expiration date of the 
25 identification card;
26  (3) a random 10-digit alphanumeric identification 
 
 
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1 number containing at least 4 numbers and at least 4 
2 letters that is unique to the holder;
3  (4) a photograph of the cardholder; and
4  (5) the legal name of the craft grower organization 
5 employing the agent.
6 (d) An agent identification card shall be immediately 
7returned to the cannabis business establishment of the agent 
8upon termination of his or her employment.
9 (e) Any agent identification card lost by a craft grower 
10agent shall be reported to the Illinois State Police and the 
11Department of Agriculture immediately upon discovery of the 
12loss.
13 (f) The Department of Agriculture may not issue an agent 
14identification card if the applicant is delinquent in filing 
15any required tax returns or paying any amounts owed to the 
16State. 
17(Source: P.A. 101-27, eff. 6-25-19; 102-538, eff. 8-20-21.)

18 (410 ILCS 705/30-45)
19 Sec. 30-45. Renewal of craft grower licenses and agent 
20identification cards. 
21 (a) Licenses and identification cards issued under this 
22Act shall be renewed annually. A craft grower shall receive 
23written or electronic notice 90 days before the expiration of 
24its current license that the license will expire. The 
25Department of Agriculture shall grant a renewal within 45 days 
 
 
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1of submission of a renewal application if:
2  (1) the craft grower submits a renewal application and 
3 the required nonrefundable renewal fee of $40,000, or 
4 another amount as the Department of Agriculture may set by 
5 rule after January 1, 2021;
6  (2) the Department of Agriculture has not suspended 
7 the license of the craft grower or suspended or revoked 
8 the license for violating this Act or rules adopted under 
9 this Act;
10  (3) the craft grower has continued to operate in 
11 accordance with all plans submitted as part of its 
12 application and approved by the Department of Agriculture 
13 or any amendments thereto that have been approved by the 
14 Department of Agriculture; 
15  (4) the craft grower has submitted an agent, employee, 
16 contracting, and subcontracting diversity report as 
17 required by the Department; and
18  (5) the craft grower has submitted an environmental 
19 impact report.
20 (b) If a craft grower fails to renew its license before 
21expiration, it shall cease operations until its license is 
22renewed.
23 (c) If a craft grower agent fails to renew his or her 
24identification card before its expiration, he or she shall 
25cease to work as an agent of the craft grower organization 
26until his or her identification card is renewed.
 
 
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1 (d) Any craft grower that continues to operate, or any 
2craft grower agent who continues to work as an agent, after the 
3applicable license or identification card has expired without 
4renewal is subject to the penalties provided under Section 
545-5. 
6 (e) All fees or fines collected from the renewal of a craft 
7grower license shall be deposited into the Cannabis Regulation 
8Fund.
9 (f) The Department of Agriculture may not renew a license 
10or an agent identification card if the applicant is delinquent 
11in filing any required tax returns or paying any amounts owed 
12to the State. 
13 (g) The Department and the Department of Financial and 
14Professional Regulation may develop and implement an 
15integrated system to issue an agent identification card which 
16identifies a craft grower agent licensed by the Department as 
17well as any cultivator, dispensary, transporter, community 
18college program or infuser license or registration the agent 
19may simultaneously hold. 
20(Source: P.A. 101-27, eff. 6-25-19.)

21 (410 ILCS 705/35-25)
22 Sec. 35-25. Infuser organization requirements; 
23prohibitions. 
24 (a) The operating documents of an infuser shall include 
25procedures for the oversight of the infuser, an inventory 
 
 
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1monitoring system including a physical inventory recorded 
2weekly, accurate recordkeeping, and a staffing plan.
3 (b) An infuser shall implement a security plan reviewed by 
4the Illinois State Police that includes, but is not limited 
5to: facility access controls, perimeter intrusion detection 
6systems, personnel identification systems, and a 24-hour 
7surveillance system to monitor the interior and exterior of 
8the infuser facility and that is accessible to authorized law 
9enforcement, the Department of Public Health, and the 
10Department of Agriculture in real time.
11 (c) All processing of cannabis by an infuser must take 
12place in an enclosed, locked facility at the physical address 
13provided to the Department of Agriculture during the licensing 
14process. The infuser location shall only be accessed by the 
15agents working for the infuser, the Department of Agriculture 
16staff performing inspections, the Department of Public Health 
17staff performing inspections, State and local law enforcement 
18or other emergency personnel, contractors working on jobs 
19unrelated to cannabis, such as installing or maintaining 
20security devices or performing electrical wiring, transporting 
21organization agents as provided in this Act, participants in 
22the incubator program, individuals in a mentoring or 
23educational program approved by the State, local safety or 
24health inspectors, or other individuals as provided by rule. 
25However, if an infuser shares a premises with a craft grower or 
26dispensing organization, agents from these other licensees may 
 
 
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1access the infuser portion of the premises if that is the 
2location of common bathrooms, lunchrooms, locker rooms, or 
3other areas of the building where processing of cannabis is 
4not performed. At no time may a craft grower or dispensing 
5organization agent perform work at an infuser without being a 
6registered agent of the infuser.
7 (d) An infuser may not sell or distribute any cannabis or 
8any other product to any person other than a dispensing 
9organization, or as otherwise authorized by rule.
10 (e) An infuser may not either directly or indirectly 
11discriminate in price between different cannabis business 
12establishments that are purchasing a like grade, strain, 
13brand, and quality of cannabis or cannabis-infused product. 
14Nothing in this subsection (e) prevents an infuser from 
15pricing cannabis differently based on differences in the cost 
16of manufacturing or processing, the quantities sold, such 
17volume discounts, or the way the products are delivered.
18 (f) All cannabis infused by an infuser and intended for 
19distribution to a dispensing organization must be entered into 
20a data collection system, packaged and labeled under Section 
2155-21, and, if distribution is to a dispensing organization 
22that does not share a premises with the infuser, placed into a 
23cannabis container for transport. All cannabis produced by an 
24infuser and intended for distribution to a cultivation center, 
25infuser organization, or craft grower with which it does not 
26share a premises, must be packaged in a labeled cannabis 
 
 
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1container and entered into a data collection system before 
2transport.
3 (g) Infusers are subject to random inspections by the 
4Department of Agriculture, the Department of Public Health, 
5the Illinois State Police, local law enforcement, or as 
6provided by rule.
7 (h) An infuser agent shall notify local law enforcement, 
8the Illinois State Police, and the Department of Agriculture 
9within 24 hours of the discovery of any loss or theft. 
10Notification shall be made by phone, in person, or by written 
11or electronic communication.
12 (i) An infuser organization may not be located in an area 
13zoned for residential use.
14 (j) An infuser or infuser agent shall not transport 
15cannabis or cannabis-infused products to any other cannabis 
16business establishment without a transport organization 
17license unless:
18  (i) If the infuser is located in a county with a 
19 population of 3,000,000 or more, the cannabis business 
20 establishment receiving the cannabis or cannabis-infused 
21 product is within 2,000 feet of the property line of the 
22 infuser;
23  (ii) If the infuser is located in a county with a 
24 population of more than 700,000 but fewer than 3,000,000, 
25 the cannabis business establishment receiving the cannabis 
26 or cannabis-infused product is within 2 miles of the 
 
 
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1 infuser; or
2  (iii) If the infuser is located in a county with a 
3 population of fewer than 700,000, the cannabis business 
4 establishment receiving the cannabis or cannabis-infused 
5 product is within 15 miles of the infuser.
6 (k) An infuser may enter into a contract with a 
7transporting organization to transport cannabis to a 
8dispensing organization or a laboratory.
9 (l) An infuser organization may share premises with a 
10craft grower or a dispensing organization, or both, provided 
11each licensee stores currency and cannabis or cannabis-infused 
12products in a separate secured vault to which the other 
13licensee does not have access or all licensees sharing a vault 
14share more than 50% of the same ownership. 
15 (m) It is unlawful for any person or entity having an 
16infuser organization license or any officer, associate, 
17member, representative or agent of such licensee to offer or 
18deliver money, or anything else of value, directly or 
19indirectly to any person having an Early Approval Adult Use 
20Dispensing Organization License, a Conditional Adult Use 
21Dispensing Organization License, an Adult Use Dispensing 
22Organization License, or a medical cannabis dispensing 
23organization license issued under the Compassionate Use of 
24Medical Cannabis Program Act, or to any person connected with 
25or in any way representing, or to any member of the family of, 
26such person holding an Early Approval Adult Use Dispensing 
 
 
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1Organization License, a Conditional Adult Use Dispensing 
2Organization License, an Adult Use Dispensing Organization 
3License, or a medical cannabis dispensing organization license 
4issued under the Compassionate Use of Medical Cannabis Program 
5Act, or to any stockholders in any corporation engaged the 
6retail sales of cannabis, or to any officer, manager, agent, 
7or representative of the Early Approval Adult Use Dispensing 
8Organization License, a Conditional Adult Use Dispensing 
9Organization License, an Adult Use Dispensing Organization 
10License, or a medical cannabis dispensing organization license 
11issued under the Compassionate Use of Medical Cannabis Program 
12Act to obtain preferential placement within the dispensing 
13organization, including, without limitation, on shelves and in 
14display cases where purchasers can view products, or on the 
15dispensing organization's website.
16 (n) At no time shall an infuser organization or an infuser 
17agent perform the extraction of cannabis concentrate from 
18cannabis flower except if the infuser organization has also 
19been issued a processor license under subsection (f) of 
20Section 35-31.
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 705/35-30)
25 Sec. 35-30. Infuser agent identification card. 
 
 
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1 (a) The Department of Agriculture shall:
2  (1) establish by rule the information required in an 
3 initial application or renewal application for an agent 
4 identification card submitted under this Act and the 
5 nonrefundable fee to accompany the initial application or 
6 renewal application;
7  (2) verify the information contained in an initial 
8 application or renewal application for an agent 
9 identification card submitted under this Act, and approve 
10 or deny an application within 30 days of receiving a 
11 completed initial application or renewal application and 
12 all supporting documentation required by rule;
13  (3) issue an agent identification card to a qualifying 
14 agent within 15 business days of approving the initial 
15 application or renewal application;
16  (4) enter the license number of the infuser where the 
17 agent works; and
18  (5) allow for an electronic initial application and 
19 renewal application process, and provide a confirmation by 
20 electronic or other methods that an application has been 
21 submitted. The Department of Agriculture may by rule 
22 require prospective agents to file their applications by 
23 electronic means and provide notices to the agents by 
24 electronic means.
25 (b) An agent must keep his or her identification card 
26visible at all times when on the property of a cannabis 
 
 
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1business establishment including the cannabis business 
2establishment for which he or she is an agent.
3 (c) The agent identification cards shall contain the 
4following:
5  (1) the name of the cardholder;
6  (2) the date of issuance and expiration date of the 
7 identification card;
8  (3) a random 10-digit alphanumeric identification 
9 number containing at least 4 numbers and at least 4 
10 letters that is unique to the holder;
11  (4) a photograph of the cardholder; and
12  (5) the legal name of the infuser organization 
13 employing the agent.
14 (d) An agent identification card shall be immediately 
15returned to the infuser organization of the agent upon 
16termination of his or her employment.
17 (e) Any agent identification card lost by a transporting 
18agent shall be reported to the Illinois State Police and the 
19Department of Agriculture immediately upon discovery of the 
20loss.
21 (f) An agent applicant may begin employment at an infuser 
22organization while the agent applicant's identification card 
23application is pending. Upon approval, the Department shall 
24issue the agent's identification card to the agent. If denied, 
25the infuser organization and the agent applicant shall be 
26notified and the agent applicant must cease all activity at 
 
 
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1the infuser organization immediately. 
2 (g) The Department of Agriculture may not issue an agent 
3identification card if the applicant is delinquent in filing 
4any required tax returns or paying any amounts owed to the 
5State. 
6 (h) The Department and the Department of Financial and 
7Professional Regulation may develop and implement an 
8integrated system to issue an agent identification card which 
9identifies an infuser agent licensed by the Department as well 
10as any cultivation center, craft grower, transporter, 
11dispensing organization, or community college program license 
12or registration the agent may simultaneously hold.
13(Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21; 
14102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)

15 (410 ILCS 705/45-5)
16 Sec. 45-5. License suspension; revocation; other 
17penalties. 
18 (a) Notwithstanding any other criminal penalties related 
19to the unlawful possession of cannabis, the Department of 
20Financial and Professional Regulation and the Department of 
21Agriculture may revoke, suspend, place on probation, 
22reprimand, issue cease and desist orders, refuse to issue or 
23renew a license, or take any other disciplinary or 
24nondisciplinary action as each department may deem proper with 
25regard to a cannabis business establishment or cannabis 
 
 
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1business establishment agent, including fines not to exceed:
2  (1) $50,000 for each violation of this Act or rules 
3 adopted under this Act by a cultivation center or 
4 cultivation center agent;
5  (2) $20,000 for each violation of this Act or rules 
6 adopted under this Act by a dispensing organization or 
7 dispensing organization agent;
8  (3) $15,000 for each violation of this Act or rules 
9 adopted under this Act by a craft grower or craft grower 
10 agent;
11  (4) $10,000 for each violation of this Act or rules 
12 adopted under this Act by an infuser organization or 
13 infuser organization agent; and
14  (5) $10,000 for each violation of this Act or rules 
15 adopted under this Act by a transporting organization or 
16 transporting organization agent.
17  (6) [$15,000] for each violation of this Act or rules 
18 adopted under this Act by a cannabis testing facility. 
19 (b) The Department of Financial and Professional 
20Regulation and the Department of Agriculture, as the case may 
21be, shall consider licensee cooperation in any agency or other 
22investigation in its determination of penalties imposed under 
23this Section.
24 (c) The procedures for disciplining a cannabis business 
25establishment or cannabis business establishment agent and for 
26administrative hearings shall be determined by rule, and shall 
 
 
SB3940- 148 -LRB103 40496 RJT 72952 b


1provide for the review of final decisions under the 
2Administrative Review Law.
3 (d) The Attorney General may also enforce a violation of 
4Section 55-20, Section 55-21, and Section 15-155 as an 
5unlawful practice under the Consumer Fraud and Deceptive 
6Business Practices Act. 
7(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

8 (410 ILCS 705/50-5)
9 Sec. 50-5. Laboratory testing. 
10 (a) Notwithstanding any other provision of law, the 
11following acts, when performed by a cannabis testing facility 
12with a current, valid license registration, or a person 21 
13years of age or older who is acting in his or her capacity as 
14an owner, employee, or agent of a cannabis testing facility, 
15are not unlawful and shall not be an offense under Illinois law 
16or be a basis for seizure or forfeiture of assets under 
17Illinois law:
18  (1) possessing, repackaging, transporting, storing, or 
19 displaying cannabis or cannabis-infused products;
20  (2) receiving or transporting cannabis or 
21 cannabis-infused products from a cannabis business 
22 establishment, a community college licensed under the 
23 Community College Cannabis Vocational Training Pilot 
24 Program, or a person 21 years of age or older; and
25  (3) returning or transporting cannabis or 
 
 
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1 cannabis-infused products to a cannabis business 
2 establishment, a community college licensed under the 
3 Community College Cannabis Vocational Training Pilot 
4 Program, or a person 21 years of age or older.
5 (b)(1) No laboratory shall handle, test, or analyze 
6cannabis unless approved by the Department of Agriculture in 
7accordance with this Section.
8 (2) No laboratory shall be approved to handle, test, or 
9analyze cannabis unless the laboratory:
10  (A) is licensed by the Department of Agriculture; 
11  (A-5) is accredited by a private laboratory 
12 accrediting organization;
13  (B) is independent from all other persons involved in 
14 the cannabis industry in Illinois and no person with a 
15 direct or indirect interest in the laboratory has a direct 
16 or indirect financial, management, or other interest in an 
17 Illinois cultivation center, craft grower, dispensary, 
18 infuser, transporter, certifying physician, or any other 
19 entity in the State that may benefit from the production, 
20 manufacture, dispensing, sale, purchase, or use of 
21 cannabis; and 
22  (C) has employed at least one person to oversee and be 
23 responsible for the laboratory testing who has earned, 
24 from a college or university accredited by a national or 
25 regional certifying authority, at least:
26   (i) a master's level degree in chemical or 
 
 
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1 biological sciences and a minimum of 2 years' 
2 post-degree laboratory experience; or
3   (ii) a bachelor's degree in chemical or biological 
4 sciences and a minimum of 4 years' post-degree 
5 laboratory experience.
6 (3) Each independent testing laboratory that claims to be 
7accredited must provide the Department of Agriculture with a 
8copy of the most recent annual inspection report granting 
9accreditation and every annual report thereafter.
10 (c) Immediately before manufacturing or natural processing 
11of any cannabis or cannabis-infused product or packaging 
12cannabis for sale to a dispensary, each batch shall be made 
13available by the cultivation center, craft grower, or infuser 
14for an employee of an approved laboratory to select a random 
15sample, which shall be tested by the approved laboratory for:
16  (1) microbiological contaminants;
17  (2) mycotoxins;
18  (3) pesticide active ingredients;
19  (4) residual solvent; and
20  (5) an active ingredient analysis.
21 (d) The Department of Agriculture may select a random 
22sample that shall, for the purposes of conducting an active 
23ingredient analysis, be tested by the Department of 
24Agriculture for verification of label information and any 
25other testing deemed necessary by the Department.
26 (e) A laboratory shall immediately return or dispose of 
 
 
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1any cannabis upon the completion of any testing, use, or 
2research. If cannabis is disposed of, it shall be done in 
3compliance with Department of Agriculture rule.
4 (f) If a sample of cannabis does not pass the 
5microbiological, mycotoxin, pesticide chemical residue, or 
6solvent residue test, based on the standards established by 
7the Department of Agriculture, the following shall apply: 
8  (1) If the sample failed the pesticide chemical 
9 residue test, the entire batch from which the sample was 
10 taken shall, if applicable, be recalled as provided by 
11 rule.
12  (2) If the sample failed any other test, the batch may 
13 be used to make a CO2-based or solvent based extract. After 
14 processing, the CO2-based or solvent based extract must 
15 still pass all required tests. 
16 (g) The Department of Agriculture shall establish 
17standards for microbial, mycotoxin, pesticide residue, solvent 
18residue, or other standards for the presence of possible 
19contaminants, in addition to labeling requirements for 
20contents and potency.
21 (h) The laboratory shall file with the Department of 
22Agriculture an electronic copy of each laboratory test result 
23for any batch that does not pass the microbiological, 
24mycotoxin, or pesticide chemical residue test, at the same 
25time that it transmits those results to the cultivation 
26center. In addition, the laboratory shall maintain the 
 
 
SB3940- 152 -LRB103 40496 RJT 72952 b


1laboratory test results for at least 5 years and make them 
2available at the Department of Agriculture's request.
3 (i) A cultivation center, craft grower, and infuser shall 
4provide to a dispensing organization the laboratory test 
5results for each batch of cannabis product purchased by the 
6dispensing organization, if sampled. Each dispensing 
7organization must have those laboratory results available upon 
8request to purchasers.
9 (j) The Department of Agriculture may adopt rules related 
10to testing and licensing of laboratories in furtherance of 
11this Act.
12(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

13 (410 ILCS 705/55-30)
14 Sec. 55-30. Confidentiality. 
15 (a) Information provided by the cannabis business 
16establishment licensees or applicants to the Department of 
17Agriculture, the Department of Public Health, the Department 
18of Financial and Professional Regulation, the Department of 
19Commerce and Economic Opportunity, or other agency shall be 
20limited to information necessary for the purposes of 
21administering this Act. The information is subject to the 
22provisions and limitations contained in the Freedom of 
23Information Act and may be disclosed in accordance with 
24Section 55-65.
25 (b) The following information received and records kept by 
 
 
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1the Department of Agriculture, the Department of Public 
2Health, the Illinois State Police, and the Department of 
3Financial and Professional Regulation for purposes of 
4administering this Article are subject to all applicable 
5federal privacy laws, are confidential and exempt from 
6disclosure under the Freedom of Information Act, except as 
7provided in this Act, and not subject to disclosure to any 
8individual or public or private entity, except to the 
9Department of Financial and Professional Regulation, the 
10Department of Agriculture, the Department of Public Health, 
11the Department of Commerce and Economic Opportunity, the 
12Office of Executive Inspector General and the Illinois State 
13Police as necessary to perform official duties under this 
14Article, and to the Attorney General as necessary to enforce 
15the provisions of this Act, and except as necessary to those 
16involved in enforcing the State Officials and Employees Ethics 
17Act. The following information received and kept by the 
18Department of Financial and Professional Regulation or the 
19Department of Agriculture may be disclosed to the Department 
20of Public Health, the Department of Agriculture, the 
21Department of Revenue, the Illinois State Police, the 
22Department of Commerce and Economic Opportunity, the Office of 
23Executive Inspector General, or the Attorney General upon 
24proper request:
25  (1) (Blank); Applications and renewals, their 
26 contents, and supporting information submitted by or on 
 
 
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1 behalf of dispensing organizations, cannabis business 
2 establishments, or Community College Cannabis Vocational 
3 Program licensees, in compliance with this Article, 
4 including their physical addresses; however, this does not 
5 preclude the release of ownership information about 
6 cannabis business establishment licenses, or information 
7 submitted with an application required to be disclosed 
8 pursuant to subsection (f);
9  (2) Any plans, procedures, policies, or other records 
10 relating to cannabis business establishment security; and
11  (3) Information otherwise exempt from disclosure by 
12 State or federal law.
13 Illinois or national criminal history record information, 
14or the nonexistence or lack of such information, may not be 
15disclosed by the Department of Financial and Professional 
16Regulation or the Department of Agriculture, except as 
17necessary to the Attorney General to enforce this Act. 
18 (c) (Blank). The name and address of a dispensing 
19organization licensed under this Act shall be subject to 
20disclosure under the Freedom of Information Act. The name and 
21cannabis business establishment address of the person or 
22entity holding each cannabis business establishment license 
23shall be subject to disclosure.
24 (d) All information collected by the Department of 
25Financial and Professional Regulation or the Department of 
26Agriculture in the course of an examination, inspection, or 
 
 
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1investigation of a licensee or applicant, including, but not 
2limited to, any complaint against a licensee or applicant 
3filed with the Department of Financial and Professional 
4Regulation or the Department of Agriculture and information 
5collected to investigate any such complaint, shall be 
6maintained for the confidential use of the Department of 
7Financial and Professional Regulation or the Department of 
8Agriculture and shall not be disclosed, except to those 
9involved in enforcing the State Officials and Employees Ethics 
10Act and as otherwise provided in this Act. A formal complaint 
11against a licensee by the Department of Financial and 
12Professional Regulation or the Department of Agriculture or 
13any disciplinary order issued by the Department of Financial 
14and Professional Regulation or the Department of Agriculture 
15against a licensee or applicant shall be a public record, 
16except as otherwise provided by law. Complaints from consumers 
17or members of the general public received regarding a 
18specific, named licensee or complaints regarding conduct by 
19unlicensed entities shall be subject to disclosure under the 
20Freedom of Information Act. 
21 (e) The Department of Agriculture, the Illinois State 
22Police, and the Department of Financial and Professional 
23Regulation shall not share or disclose any Illinois or 
24national criminal history record information, or the 
25nonexistence or lack of such information, to any person or 
26entity not expressly authorized by this Act. 
 
 
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1 (f) (Blank). Each Department responsible for licensure 
2under this Act shall publish on the Department's website a 
3list of the ownership information of cannabis business 
4establishment licensees under the Department's jurisdiction. 
5The list shall include, but is not limited to: the name of the 
6person or entity holding each cannabis business establishment 
7license; and the address at which the entity is operating 
8under this Act. This list shall be published and updated 
9monthly.
10 (g) Notwithstanding anything in this Section to the 
11contrary, the Department of Financial and Professional 
12Regulation and the Department of Agriculture may share 
13licensee information with the Department of Commerce and 
14Economic Opportunity necessary to support the administration 
15of Social Equity programming. 
16(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 
17102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff. 
185-13-22.)

19 (410 ILCS 705/55-65)
20 Sec. 55-65. Financial institutions. 
21 (a) A financial institution that provides financial 
22services customarily provided by financial institutions to a 
23cannabis business establishment authorized under this Act or 
24the Compassionate Use of Medical Cannabis Program Act, or to a 
25person that is affiliated with such cannabis business 
 
 
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1establishment, is exempt from any criminal law of this State 
2as it relates to cannabis-related conduct authorized under 
3State law. 
4 (b) Upon request of a financial institution, a cannabis 
5business establishment or proposed cannabis business 
6establishment may provide to the financial institution the 
7following information:
8  (1) Whether a cannabis business establishment with 
9 which the financial institution is doing or is considering 
10 doing business holds a license under this Act or the 
11 Compassionate Use of Medical Cannabis Program Act;
12  (2) The name of any other business or individual 
13 affiliate with the cannabis business establishment;
14  (3) A copy of the application, and any supporting 
15 documentation submitted with the application, for a 
16 license or a permit submitted on behalf of the proposed 
17 cannabis business establishment;
18  (4) If applicable, data relating to sales and the 
19 volume of product sold by the cannabis business 
20 establishment;
21  (5) Any past or pending violation by the person of 
22 this Act, the Compassionate Use of Medical Cannabis 
23 Program Act, or the rules adopted under these Acts where 
24 applicable; and
25  (6) Any penalty imposed upon the person for violating 
26 this Act, the Compassionate Use of Medical Cannabis 
 
 
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1 Program Act, or the rules adopted under these Acts.
2 (c) (Blank).
3 (d) (Blank).
4 (e) Information received by a financial institution under 
5this Section is confidential. Except as otherwise required or 
6permitted by this Act, State law or rule, or federal law or 
7regulation, a financial institution may not make the 
8information available to any person other than:
9  (1) the customer to whom the information applies;
10  (2) a trustee, conservator, guardian, personal 
11 representative, or agent of the customer to whom the 
12 information applies; a federal or State regulator when 
13 requested in connection with an examination of the 
14 financial institution or if otherwise necessary for 
15 complying with federal or State law;
16  (3) a federal or State regulator when requested in 
17 connection with an examination of the financial 
18 institution or if otherwise necessary for complying with 
19 federal or State law; and
20  (4) a third party performing services for the 
21 financial institution, provided the third party is 
22 performing such services under a written agreement that 
23 expressly or by operation of law prohibits the third 
24 party's sharing and use of such confidential information 
25 for any purpose other than as provided in its agreement to 
26 provide services to the financial institution; and .
 
 
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1  (5) the Office of Executive Inspector General pursuant 
2 to an investigation.
3(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

4 (410 ILCS 705/60-10)
5 Sec. 60-10. Tax imposed. 
6 (a) Beginning September 1, 2019, a tax is imposed upon the 
7privilege of cultivating cannabis at the rate of 7% of the 
8gross receipts from the first sale of cannabis by a 
9cultivator. The sale of any product that contains any amount 
10of cannabis or any derivative thereof is subject to the tax 
11under this Section on the full selling price of the product. 
12The Department may determine the selling price of the cannabis 
13when the seller and purchaser are affiliated persons, when the 
14sale and purchase of cannabis is not an arm's length 
15transaction, or when cannabis is transferred by a craft grower 
16to the craft grower's dispensing organization or infuser or 
17processing organization and a value is not established for the 
18cannabis. The value determined by the Department shall be 
19commensurate with the actual price received for products of 
20like quality, character, and use in the area. If there are no 
21sales of cannabis of like quality, character, and use in the 
22same area, then the Department shall establish a reasonable 
23value based on sales of products of like quality, character, 
24and use in other areas of the State, taking into consideration 
25any other relevant factors.
 
 
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1 (b) The Cannabis Cultivation Privilege Tax imposed under 
2this Article is solely the responsibility of the cultivator 
3who makes the first sale and is not the responsibility of a 
4subsequent purchaser, a dispensing organization, or an 
5infuser. Persons subject to the tax imposed under this Article 
6may, however, reimburse themselves for their tax liability 
7hereunder by separately stating reimbursement for their tax 
8liability as an additional charge. 
9 (c) The tax imposed under this Article shall be in 
10addition to all other occupation, privilege, or excise taxes 
11imposed by the State of Illinois or by any unit of local 
12government.
13(Source: P.A. 101-27, eff. 6-25-19.)

14 (410 ILCS 705/65-10)
15 Sec. 65-10. Tax imposed. 
16 (a) Beginning January 1, 2020, a tax is imposed upon 
17purchasers for the privilege of using cannabis, and not for 
18the purpose of resale, at the following rates:
19  (1) Any cannabis, other than a cannabis-infused 
20 product, with an adjusted delta-9-tetrahydrocannabinol 
21 level at or below 35% shall be taxed at a rate of 10% of 
22 the purchase price; 
23  (2) Any cannabis, other than a cannabis-infused 
24 product, with an adjusted delta-9-tetrahydrocannabinol 
25 level above 35% shall be taxed at a rate of 25% of the 
 
 
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1 purchase price; and 
2  (3) A cannabis-infused product shall be taxed at a 
3 rate of 20% of the purchase price.
4 (b) The purchase of any product that contains any amount 
5of cannabis or any derivative thereof is subject to the tax 
6under subsection (a) of this Section on the full purchase 
7price of the product.
8 (c) The tax imposed under this Section is not imposed on 
9cannabis that is subject to tax under the Compassionate Use of 
10Medical Cannabis Program Act. The tax imposed by this Section 
11is not imposed with respect to any transaction in interstate 
12commerce, to the extent the transaction may not, under the 
13Constitution and statutes of the United States, be made the 
14subject of taxation by this State.
15 (d) The tax imposed under this Article shall be in 
16addition to all other occupation, privilege, or excise taxes 
17imposed by the State of Illinois or by any municipal 
18corporation or political subdivision thereof.
19 (e) The tax imposed under this Article shall not be 
20imposed on any purchase by a purchaser if the cannabis 
21retailer is prohibited by federal or State Constitution, 
22treaty, convention, statute, or court decision from collecting 
23the tax from the purchaser.
24(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

25 (410 ILCS 705/65-38)
 
 
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1 Sec. 65-38. Violations and penalties. 
2 (a) When the amount due is under $300, any retailer of 
3cannabis who fails to file a return, willfully fails or 
4refuses to make any payment to the Department of the tax 
5imposed by this Article, or files a fraudulent return, or any 
6officer or agent of a corporation engaged in the business of 
7selling cannabis to purchasers located in this State who signs 
8a fraudulent return filed on behalf of the corporation, or any 
9accountant or other agent who knowingly enters false 
10information on the return of any taxpayer under this Article 
11is guilty of a Class 4 felony.
12 (b) When the amount due is $300 or more, any retailer of 
13cannabis who files, or causes to be filed, a fraudulent 
14return, or any officer or agent of a corporation engaged in the 
15business of selling cannabis to purchasers located in this 
16State who files or causes to be filed or signs or causes to be 
17signed a fraudulent return filed on behalf of the corporation, 
18or any accountant or other agent who knowingly enters false 
19information on the return of any taxpayer under this Article 
20is guilty of a Class 3 felony.
21 (c) Any person who violates any provision of Section 
2265-20, fails to keep books and records as required under this 
23Article, or willfully violates a rule of the Department for 
24the administration and enforcement of this Article is guilty 
25of a Class 4 felony. A person commits a separate offense on 
26each day that he or she engages in business in violation of 
 
 
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1Section 65-20 or a rule of the Department for the 
2administration and enforcement of this Article. If a person 
3fails to produce the books and records for inspection by the 
4Department upon request, a prima facie presumption shall arise 
5that the person has failed to keep books and records as 
6required under this Article. A person who is unable to rebut 
7this presumption is in violation of this Article and is 
8subject to the penalties provided in this Section.
9 (d) Any person who violates any provision of Sections 
1065-20, fails to keep books and records as required under this 
11Article, or willfully violates a rule of the Department for 
12the administration and enforcement of this Article, is guilty 
13of a business offense and may be fined up to $5,000. If a 
14person fails to produce books and records for inspection by 
15the Department upon request, a prima facie presumption shall 
16arise that the person has failed to keep books and records as 
17required under this Article. A person who is unable to rebut 
18this presumption is in violation of this Article and is 
19subject to the penalties provided in this Section. A person 
20commits a separate offense on each day that he or she engages 
21in business in violation of Section 65-20.
22 (e) Any taxpayer or agent of a taxpayer who with the intent 
23to defraud purports to make a payment due to the Department by 
24issuing or delivering a check or other order upon a real or 
25fictitious depository for the payment of money, knowing that 
26it will not be paid by the depository, is guilty of a deceptive 
 
 
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1practice in violation of Section 17-1 of the Criminal Code of 
22012.
3 (f) Any person who fails to keep books and records or fails 
4to produce books and records for inspection, as required by 
5Section 65-36, is liable to pay to the Department, for deposit 
6in the Tax Compliance and Administration Fund, a penalty of 
7$1,000 for the first failure to keep books and records or 
8failure to produce books and records for inspection, as 
9required by Section 65-36, and $3,000 for each subsequent 
10failure to keep books and records or failure to produce books 
11and records for inspection, as required by Section 65-36.
12 (g) Any person who knowingly acts as a retailer of 
13cannabis in this State without first having obtained a 
14certificate of registration to do so in compliance with 
15Section 65-20 of this Article shall be guilty of a Class 4 
16felony.
17 (h) A person commits the offense of tax evasion under this 
18Article when he or she knowingly attempts in any manner to 
19evade or defeat the tax imposed on him or her or on any other 
20person, or the payment thereof, and he or she commits an 
21affirmative act in furtherance of the evasion. As used in this 
22Section, "affirmative act in furtherance of the evasion" means 
23an act designed in whole or in part to (i) conceal, 
24misrepresent, falsify, or manipulate any material fact or (ii) 
25tamper with or destroy documents or materials related to a 
26person's tax liability under this Article. Two or more acts of 
 
 
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1sales tax evasion may be charged as a single count in any 
2indictment, information, or complaint and the amount of tax 
3deficiency may be aggregated for purposes of determining the 
4amount of tax that is attempted to be or is evaded and the 
5period between the first and last acts may be alleged as the 
6date of the offense.
7  (1) When the amount of tax, the assessment or payment 
8 of which is attempted to be or is evaded is less than $500, 
9 a person is guilty of a Class 4 felony.
10  (2) When the amount of tax, the assessment or payment 
11 of which is attempted to be or is evaded is $500 or more 
12 but less than $10,000, a person is guilty of a Class 3 
13 felony.
14  (3) When the amount of tax, the assessment or payment 
15 of which is attempted to be or is evaded is $10,000 or more 
16 but less than $100,000, a person is guilty of a Class 2 
17 felony.
18  (4) When the amount of tax, the assessment or payment 
19 of which is attempted to be or is evaded is $100,000 or 
20 more, a person is guilty of a Class 1 felony.
21 Any person who knowingly sells, purchases, installs, 
22transfers, possesses, uses, or accesses any automated sales 
23suppression device, zapper, or phantom-ware in this State is 
24guilty of a Class 3 felony.
25 As used in this Section:
26 "Automated sales suppression device" or "zapper" means a 
 
 
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1software program that falsifies the electronic records of an 
2electronic cash register or other point-of-sale system, 
3including, but not limited to, transaction data and 
4transaction reports. The term includes the software program, 
5any device that carries the software program, or an Internet 
6link to the software program.
7 "Phantom-ware" means a hidden programming option embedded 
8in the operating system of an electronic cash register or 
9hardwired into an electronic cash register that can be used to 
10create a second set of records or that can eliminate or 
11manipulate transaction records in an electronic cash register.
12 "Electronic cash register" means a device that keeps a 
13register or supporting documents through the use of an 
14electronic device or computer system designed to record 
15transaction data for the purpose of computing, compiling, or 
16processing retail sales transaction data in any manner.
17 "Transaction data" includes: items purchased by a 
18purchaser; the price of each item; a taxability determination 
19for each item; a segregated tax amount for each taxed item; the 
20amount of cash or credit tendered; the net amount returned to 
21the customer in change; the date and time of the purchase; the 
22name, address, and identification number of the vendor; and 
23the receipt or invoice number of the transaction.
24 "Transaction report" means a report that documents, 
25without limitation, the sales, taxes, or fees collected, media 
26totals, and discount voids at an electronic cash register and 
 
 
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1that is printed on a cash register tape at the end of a day or 
2shift, or a report that documents every action at an 
3electronic cash register and is stored electronically.
4 A prosecution for any act in violation of this Section may 
5be commenced at any time within 5 years of the commission of 
6that act.
7 (i) The Department may adopt rules to administer the 
8penalties under this Section.
9 (j) Any person whose principal place of business is in 
10this State and who is charged with a violation under this 
11Section shall be tried in the county where his or her principal 
12place of business is located unless he or she asserts a right 
13to be tried in another venue.
14 (k) Except as otherwise provided in subsection (h), a 
15prosecution for a violation described in this Section may be 
16commenced within 3 years after the commission of the act 
17constituting the violation.
18(Source: P.A. 101-27, eff. 6-25-19.)

19 (410 ILCS 705/65-42)
20 Sec. 65-42. Seizure and forfeiture. After seizing any 
21cannabis as provided in Section 65-41, the Department must 
22hold a hearing and determine whether (i) the retailer was 
23properly registered to sell the cannabis; (ii) the retailer 
24possessed the cannabis in violation of this Act; (iii) the 
25retailer possessed the cannabis in violation of any reasonable 
 
 
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1rule or regulation adopted by the Department for the 
2enforcement of this Act; or (iv) the tax imposed by Article 60 
3had been paid on the cannabis at the time of its seizure by the 
4Department. The Department shall give not less than 20 days' 
5notice of the time and place of the hearing to the owner of the 
6cannabis, if the owner is known, and also to the person in 
7whose possession the cannabis was found, if that person is 
8known and if the person in possession is not the owner of the 
9cannabis. If neither the owner nor the person in possession of 
10the cannabis is known, the Department must cause publication 
11of the time and place of the hearing to be made at least once 
12in each week for 3 weeks successively in a newspaper of general 
13circulation in the county where the hearing is to be held.
14 If, as the result of the hearing, the Department makes any 
15of the findings listed in items (i) through (iv) above 
16determines that the retailer was not properly registered at 
17the time the cannabis was seized, the Department must enter an 
18order declaring the cannabis confiscated and forfeited to the 
19State, to be held by the Department for disposal by it as 
20provided in Section 65-43. The Department must give notice of 
21the order to the owner of the cannabis, if the owner is known, 
22and also to the person in whose possession the cannabis was 
23found, if that person is known and if the person in possession 
24is not the owner of the cannabis. If neither the owner nor the 
25person in possession of the cannabis is known, the Department 
26must cause publication of the order to be made at least once in 
 
 
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1each week for 3 weeks successively in a newspaper of general 
2circulation in the county where the hearing was held.
3(Source: P.A. 101-27, eff. 6-25-19.)

4 (410 ILCS 705/20-50 rep.)
5 (410 ILCS 705/30-50 rep.)
6 Section 45. The Cannabis Regulation and Tax Act is amended 
7by repealing Sections 20-50 and 30-50.

8 Section 50. The Tobacco Accessories and Smoking Herbs 
9Control Act is amended by changing Section 2 as follows:

10 (720 ILCS 685/2) (from Ch. 23, par. 2358-2)
11 Sec. 2. Purpose. The sale and possession of marijuana, 
12hashish, cocaine, opium and their derivatives, is not only 
13prohibited by Illinois Law, but the use of these substances 
14has been deemed injurious to the health of the user.
15 It has further been determined by the Surgeon General of 
16the United States that the use of tobacco is hazardous to human 
17health.
18 The ready availability of smoking herbs to persons under 
1921 years of age could lead to the use of tobacco and illegal 
20drugs.
21 It is in the best interests of the citizens of the State of 
22Illinois to seek to prohibit the spread of illegal drugs, 
23tobacco or smoking materials to persons under 21 years of age. 
 
 
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1The prohibition of the sale of tobacco and snuff accessories 
2and smoking herbs to persons under 21 years of age would help 
3to curb the usage of illegal drugs and tobacco products, among 
4our youth.
5(Source: P.A. 101-2, eff. 7-1-19.)

6 Section 99. Effective date. This Act takes effect upon 
7becoming law.
 
 
SB3940- 171 -LRB103 40496 RJT 72952 b


1
INDEX

2
Statutes amended in order of appearance

3 20 ILCS 2105/2105-117
4 30 ILCS 500/1-10
5 30 ILCS 105/5.916
6 35 ILCS 120/11from Ch. 120, par. 450
7 55 ILCS 5/5-1009from Ch. 34, par. 5-1009
8 65 ILCS 5/8-11-6afrom Ch. 24, par. 8-11-6a
9 410 ILCS 130/145
10 410 ILCS 130/210
11 410 ILCS 705/1-10
12 410 ILCS 705/5-10
13 410 ILCS 705/5-15
14 410 ILCS 705/7-10
15 410 ILCS 705/7-15
16 410 ILCS 705/10-15
17 410 ILCS 705/15-25
18 410 ILCS 705/15-35
19 410 ILCS 705/15-35.10
20 410 ILCS 705/15-40
21 410 ILCS 705/15-50
22 410 ILCS 705/15-70
23 410 ILCS 705/20-15
24 410 ILCS 705/20-30
25 410 ILCS 705/20-32 new
 
 
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