103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB0025 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED: 410 ILCS 705/1-10410 ILCS 705/30-5410 ILCS 705/30-30410 ILCS 705/40-25410 ILCS 705/55-20410 ILCS 705/60-10 Amends the Cannabis Regulation and Tax Act. Raises specified square footage requirements for craft growers. Removes language allowing the Department of Agriculture to authorize a decrease of flowering stage cultivation space used for cultivating specified plants. Raises the maximum number of craft grower licenses for specified craft growers to 3 (rather than one), 6 (rather than 2), and 10 (rather than 3). Removes language prohibiting craft growers from being located within 1,500 feet of each other. Prohibits cannabis product advertising from describing or referencing a cannabis product as "craft" unless the cannabis product is produced by a craft grower. Provides that the Cannabis Cultivation Privilege Tax shall not be assessed against or collected from specified craft growers until 2 years after the date the craft grower was awarded a license. Makes other changes. LRB103 03524 CPF 48530 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB0025 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED: 410 ILCS 705/1-10410 ILCS 705/30-5410 ILCS 705/30-30410 ILCS 705/40-25410 ILCS 705/55-20410 ILCS 705/60-10 410 ILCS 705/1-10 410 ILCS 705/30-5 410 ILCS 705/30-30 410 ILCS 705/40-25 410 ILCS 705/55-20 410 ILCS 705/60-10 Amends the Cannabis Regulation and Tax Act. Raises specified square footage requirements for craft growers. Removes language allowing the Department of Agriculture to authorize a decrease of flowering stage cultivation space used for cultivating specified plants. Raises the maximum number of craft grower licenses for specified craft growers to 3 (rather than one), 6 (rather than 2), and 10 (rather than 3). Removes language prohibiting craft growers from being located within 1,500 feet of each other. Prohibits cannabis product advertising from describing or referencing a cannabis product as "craft" unless the cannabis product is produced by a craft grower. Provides that the Cannabis Cultivation Privilege Tax shall not be assessed against or collected from specified craft growers until 2 years after the date the craft grower was awarded a license. Makes other changes. LRB103 03524 CPF 48530 b LRB103 03524 CPF 48530 b A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB0025 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED:
410 ILCS 705/1-10410 ILCS 705/30-5410 ILCS 705/30-30410 ILCS 705/40-25410 ILCS 705/55-20410 ILCS 705/60-10 410 ILCS 705/1-10 410 ILCS 705/30-5 410 ILCS 705/30-30 410 ILCS 705/40-25 410 ILCS 705/55-20 410 ILCS 705/60-10
410 ILCS 705/1-10
410 ILCS 705/30-5
410 ILCS 705/30-30
410 ILCS 705/40-25
410 ILCS 705/55-20
410 ILCS 705/60-10
Amends the Cannabis Regulation and Tax Act. Raises specified square footage requirements for craft growers. Removes language allowing the Department of Agriculture to authorize a decrease of flowering stage cultivation space used for cultivating specified plants. Raises the maximum number of craft grower licenses for specified craft growers to 3 (rather than one), 6 (rather than 2), and 10 (rather than 3). Removes language prohibiting craft growers from being located within 1,500 feet of each other. Prohibits cannabis product advertising from describing or referencing a cannabis product as "craft" unless the cannabis product is produced by a craft grower. Provides that the Cannabis Cultivation Privilege Tax shall not be assessed against or collected from specified craft growers until 2 years after the date the craft grower was awarded a license. Makes other changes.
LRB103 03524 CPF 48530 b LRB103 03524 CPF 48530 b
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A BILL FOR
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HB0025 LRB103 03524 CPF 48530 b
1 AN ACT concerning regulation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Cannabis Regulation and Tax Act is amended
5 by changing Sections 1-10, 30-5, 30-30, 40-25, 55-20, and
6 60-10 as follows:
7 (410 ILCS 705/1-10)
8 Sec. 1-10. Definitions. In this Act:
9 "Adult Use Cultivation Center License" means a license
10 issued by the Department of Agriculture that permits a person
11 to act as a cultivation center under this Act and any
12 administrative rule made in furtherance of this Act.
13 "Adult Use Dispensing Organization License" means a
14 license issued by the Department of Financial and Professional
15 Regulation that permits a person to act as a dispensing
16 organization under this Act and any administrative rule made
17 in furtherance of this Act.
18 "Advertise" means to engage in promotional activities
19 including, but not limited to: newspaper, radio, Internet and
20 electronic media, and television advertising; the distribution
21 of fliers and circulars; billboard advertising; and the
22 display of window and interior signs. "Advertise" does not
23 mean exterior signage displaying only the name of the licensed
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB0025 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED:
410 ILCS 705/1-10410 ILCS 705/30-5410 ILCS 705/30-30410 ILCS 705/40-25410 ILCS 705/55-20410 ILCS 705/60-10 410 ILCS 705/1-10 410 ILCS 705/30-5 410 ILCS 705/30-30 410 ILCS 705/40-25 410 ILCS 705/55-20 410 ILCS 705/60-10
410 ILCS 705/1-10
410 ILCS 705/30-5
410 ILCS 705/30-30
410 ILCS 705/40-25
410 ILCS 705/55-20
410 ILCS 705/60-10
Amends the Cannabis Regulation and Tax Act. Raises specified square footage requirements for craft growers. Removes language allowing the Department of Agriculture to authorize a decrease of flowering stage cultivation space used for cultivating specified plants. Raises the maximum number of craft grower licenses for specified craft growers to 3 (rather than one), 6 (rather than 2), and 10 (rather than 3). Removes language prohibiting craft growers from being located within 1,500 feet of each other. Prohibits cannabis product advertising from describing or referencing a cannabis product as "craft" unless the cannabis product is produced by a craft grower. Provides that the Cannabis Cultivation Privilege Tax shall not be assessed against or collected from specified craft growers until 2 years after the date the craft grower was awarded a license. Makes other changes.
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LRB103 03524 CPF 48530 b
A BILL FOR
410 ILCS 705/1-10
410 ILCS 705/30-5
410 ILCS 705/30-30
410 ILCS 705/40-25
410 ILCS 705/55-20
410 ILCS 705/60-10
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1 cannabis business establishment.
2 "Application points" means the number of points a
3 Dispensary Applicant receives on an application for a
4 Conditional Adult Use Dispensing Organization License.
5 "BLS Region" means a region in Illinois used by the United
6 States Bureau of Labor Statistics to gather and categorize
7 certain employment and wage data. The 17 such regions in
8 Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
9 Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
10 Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
11 Rockford, St. Louis, Springfield, Northwest Illinois
12 nonmetropolitan area, West Central Illinois nonmetropolitan
13 area, East Central Illinois nonmetropolitan area, and South
14 Illinois nonmetropolitan area.
15 "By lot" means a randomized method of choosing between 2
16 or more Eligible Tied Applicants or 2 or more Qualifying
17 Applicants.
18 "Cannabis" means marijuana, hashish, and other substances
19 that are identified as including any parts of the plant
20 Cannabis sativa and including derivatives or subspecies, such
21 as indica, of all strains of cannabis, whether growing or not;
22 the seeds thereof, the resin extracted from any part of the
23 plant; and any compound, manufacture, salt, derivative,
24 mixture, or preparation of the plant, its seeds, or resin,
25 including tetrahydrocannabinol (THC) and all other naturally
26 produced cannabinol derivatives, whether produced directly or
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1 indirectly by extraction; however, "cannabis" does not include
2 the mature stalks of the plant, fiber produced from the
3 stalks, oil or cake made from the seeds of the plant, any other
4 compound, manufacture, salt, derivative, mixture, or
5 preparation of the mature stalks (except the resin extracted
6 from it), fiber, oil or cake, or the sterilized seed of the
7 plant that is incapable of germination. "Cannabis" does not
8 include industrial hemp as defined and authorized under the
9 Industrial Hemp Act. "Cannabis" also means cannabis flower,
10 concentrate, and cannabis-infused products.
11 "Cannabis business establishment" means a cultivation
12 center, craft grower, processing organization, infuser
13 organization, dispensing organization, or transporting
14 organization.
15 "Cannabis concentrate" means a product derived from
16 cannabis that is produced by extracting cannabinoids,
17 including tetrahydrocannabinol (THC), from the plant through
18 the use of propylene glycol, glycerin, butter, olive oil, or
19 other typical cooking fats; water, ice, or dry ice; or butane,
20 propane, CO2, ethanol, or isopropanol and with the intended
21 use of smoking or making a cannabis-infused product. The use
22 of any other solvent is expressly prohibited unless and until
23 it is approved by the Department of Agriculture.
24 "Cannabis container" means a sealed or resealable,
25 traceable, container, or package used for the purpose of
26 containment of cannabis or cannabis-infused product during
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1 transportation.
2 "Cannabis flower" means marijuana, hashish, and other
3 substances that are identified as including any parts of the
4 plant Cannabis sativa and including derivatives or subspecies,
5 such as indica, of all strains of cannabis; including raw
6 kief, leaves, and buds, but not resin that has been extracted
7 from any part of such plant; nor any compound, manufacture,
8 salt, derivative, mixture, or preparation of such plant, its
9 seeds, or resin.
10 "Cannabis-infused product" means a beverage, food, oil,
11 ointment, tincture, topical formulation, or another product
12 containing cannabis or cannabis concentrate that is not
13 intended to be smoked.
14 "Cannabis paraphernalia" means equipment, products, or
15 materials intended to be used for planting, propagating,
16 cultivating, growing, harvesting, manufacturing, producing,
17 processing, preparing, testing, analyzing, packaging,
18 repackaging, storing, containing, concealing, ingesting, or
19 otherwise introducing cannabis into the human body.
20 "Cannabis plant monitoring system" or "plant monitoring
21 system" means a system that includes, but is not limited to,
22 testing and data collection established and maintained by the
23 cultivation center, craft grower, or processing organization
24 and that is available to the Department of Revenue, the
25 Department of Agriculture, the Department of Financial and
26 Professional Regulation, and the Illinois State Police for the
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1 purposes of documenting each cannabis plant and monitoring
2 plant development throughout the life cycle of a cannabis
3 plant cultivated for the intended use by a customer from seed
4 planting to final packaging.
5 "Cannabis testing facility" means an entity registered by
6 the Department of Agriculture to test cannabis for potency and
7 contaminants.
8 "Clone" means a plant section from a female cannabis plant
9 not yet rootbound, growing in a water solution or other
10 propagation matrix, that is capable of developing into a new
11 plant.
12 "Community College Cannabis Vocational Training Pilot
13 Program faculty participant" means a person who is 21 years of
14 age or older, licensed by the Department of Agriculture, and
15 is employed or contracted by an Illinois community college to
16 provide student instruction using cannabis plants at an
17 Illinois Community College.
18 "Community College Cannabis Vocational Training Pilot
19 Program faculty participant Agent Identification Card" means a
20 document issued by the Department of Agriculture that
21 identifies a person as a Community College Cannabis Vocational
22 Training Pilot Program faculty participant.
23 "Conditional Adult Use Dispensing Organization License"
24 means a contingent license awarded to applicants for an Adult
25 Use Dispensing Organization License that reserves the right to
26 an Adult Use Dispensing Organization License if the applicant
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1 meets certain conditions described in this Act, but does not
2 entitle the recipient to begin purchasing or selling cannabis
3 or cannabis-infused products.
4 "Conditional Adult Use Cultivation Center License" means a
5 license awarded to top-scoring applicants for an Adult Use
6 Cultivation Center License that reserves the right to an Adult
7 Use Cultivation Center License if the applicant meets certain
8 conditions as determined by the Department of Agriculture by
9 rule, but does not entitle the recipient to begin growing,
10 processing, or selling cannabis or cannabis-infused products.
11 "Craft grower" means a facility operated by an
12 organization or business that is licensed by the Department of
13 Agriculture to cultivate, dry, cure, and package cannabis and
14 perform other necessary activities to make cannabis available
15 for sale at a dispensing organization or use at a processing
16 organization. A craft grower may contain up to 14,000 5,000
17 square feet of canopy space on its premises for plants in the
18 flowering state. The Department of Agriculture may authorize
19 an increase or decrease of flowering stage cultivation space
20 in increments of 14,000 3,000 square feet by rule based on
21 market need, craft grower capacity, and the licensee's history
22 of compliance or noncompliance, with a maximum space of 56,000
23 14,000 square feet for cultivating plants in the flowering
24 stage, which must be cultivated in all stages of growth in an
25 enclosed and secure area. A craft grower may share premises
26 with a processing organization or a dispensing organization,
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1 or both, provided each licensee stores currency and cannabis
2 or cannabis-infused products in a separate secured vault to
3 which the other licensee does not have access or all licensees
4 sharing a vault share more than 50% of the same ownership.
5 "Craft grower agent" means a principal officer, board
6 member, employee, or other agent of a craft grower who is 21
7 years of age or older.
8 "Craft Grower Agent Identification Card" means a document
9 issued by the Department of Agriculture that identifies a
10 person as a craft grower agent.
11 "Cultivation center" means a facility operated by an
12 organization or business that is licensed by the Department of
13 Agriculture to cultivate, process, transport (unless otherwise
14 limited by this Act), and perform other necessary activities
15 to provide cannabis and cannabis-infused products to cannabis
16 business establishments.
17 "Cultivation center agent" means a principal officer,
18 board member, employee, or other agent of a cultivation center
19 who is 21 years of age or older.
20 "Cultivation Center Agent Identification Card" means a
21 document issued by the Department of Agriculture that
22 identifies a person as a cultivation center agent.
23 "Currency" means currency and coin of the United States.
24 "Dispensary" means a facility operated by a dispensing
25 organization at which activities licensed by this Act may
26 occur.
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1 "Dispensary Applicant" means the Proposed Dispensing
2 Organization Name as stated on an application for a
3 Conditional Adult Use Dispensing Organization License.
4 "Dispensing organization" means a facility operated by an
5 organization or business that is licensed by the Department of
6 Financial and Professional Regulation to acquire cannabis from
7 a cultivation center, craft grower, processing organization,
8 or another dispensary for the purpose of selling or dispensing
9 cannabis, cannabis-infused products, cannabis seeds,
10 paraphernalia, or related supplies under this Act to
11 purchasers or to qualified registered medical cannabis
12 patients and caregivers. As used in this Act, "dispensing
13 organization" includes a registered medical cannabis
14 organization as defined in the Compassionate Use of Medical
15 Cannabis Program Act or its successor Act that has obtained an
16 Early Approval Adult Use Dispensing Organization License.
17 "Dispensing organization agent" means a principal officer,
18 employee, or agent of a dispensing organization who is 21
19 years of age or older.
20 "Dispensing organization agent identification card" means
21 a document issued by the Department of Financial and
22 Professional Regulation that identifies a person as a
23 dispensing organization agent.
24 "Disproportionately Impacted Area" means a census tract or
25 comparable geographic area that satisfies the following
26 criteria as determined by the Department of Commerce and
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1 Economic Opportunity, that:
2 (1) meets at least one of the following criteria:
3 (A) the area has a poverty rate of at least 20%
4 according to the latest federal decennial census; or
5 (B) 75% or more of the children in the area
6 participate in the federal free lunch program
7 according to reported statistics from the State Board
8 of Education; or
9 (C) at least 20% of the households in the area
10 receive assistance under the Supplemental Nutrition
11 Assistance Program; or
12 (D) the area has an average unemployment rate, as
13 determined by the Illinois Department of Employment
14 Security, that is more than 120% of the national
15 unemployment average, as determined by the United
16 States Department of Labor, for a period of at least 2
17 consecutive calendar years preceding the date of the
18 application; and
19 (2) has high rates of arrest, conviction, and
20 incarceration related to the sale, possession, use,
21 cultivation, manufacture, or transport of cannabis.
22 "Early Approval Adult Use Cultivation Center License"
23 means a license that permits a medical cannabis cultivation
24 center licensed under the Compassionate Use of Medical
25 Cannabis Program Act as of the effective date of this Act to
26 begin cultivating, infusing, packaging, transporting (unless
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1 otherwise provided in this Act), processing, and selling
2 cannabis or cannabis-infused product to cannabis business
3 establishments for resale to purchasers as permitted by this
4 Act as of January 1, 2020.
5 "Early Approval Adult Use Dispensing Organization License"
6 means a license that permits a medical cannabis dispensing
7 organization licensed under the Compassionate Use of Medical
8 Cannabis Program Act as of the effective date of this Act to
9 begin selling cannabis or cannabis-infused product to
10 purchasers as permitted by this Act as of January 1, 2020.
11 "Early Approval Adult Use Dispensing Organization at a
12 secondary site" means a license that permits a medical
13 cannabis dispensing organization licensed under the
14 Compassionate Use of Medical Cannabis Program Act as of the
15 effective date of this Act to begin selling cannabis or
16 cannabis-infused product to purchasers as permitted by this
17 Act on January 1, 2020 at a different dispensary location from
18 its existing registered medical dispensary location.
19 "Eligible Tied Applicant" means a Tied Applicant that is
20 eligible to participate in the process by which a remaining
21 available license is distributed by lot pursuant to a Tied
22 Applicant Lottery.
23 "Enclosed, locked facility" means a room, greenhouse,
24 building, or other enclosed area equipped with locks or other
25 security devices that permit access only by cannabis business
26 establishment agents working for the licensed cannabis
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1 business establishment or acting pursuant to this Act to
2 cultivate, process, store, or distribute cannabis.
3 "Enclosed, locked space" means a closet, room, greenhouse,
4 building, or other enclosed area equipped with locks or other
5 security devices that permit access only by authorized
6 individuals under this Act. "Enclosed, locked space" may
7 include:
8 (1) a space within a residential building that (i) is
9 the primary residence of the individual cultivating 5 or
10 fewer cannabis plants that are more than 5 inches tall and
11 (ii) includes sleeping quarters and indoor plumbing. The
12 space must only be accessible by a key or code that is
13 different from any key or code that can be used to access
14 the residential building from the exterior; or
15 (2) a structure, such as a shed or greenhouse, that
16 lies on the same plot of land as a residential building
17 that (i) includes sleeping quarters and indoor plumbing
18 and (ii) is used as a primary residence by the person
19 cultivating 5 or fewer cannabis plants that are more than
20 5 inches tall, such as a shed or greenhouse. The structure
21 must remain locked when it is unoccupied by people.
22 "Financial institution" has the same meaning as "financial
23 organization" as defined in Section 1501 of the Illinois
24 Income Tax Act, and also includes the holding companies,
25 subsidiaries, and affiliates of such financial organizations.
26 "Flowering stage" means the stage of cultivation where and
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1 when a cannabis plant is cultivated to produce plant material
2 for cannabis products. This includes mature plants as follows:
3 (1) if greater than 2 stigmas are visible at each
4 internode of the plant; or
5 (2) if the cannabis plant is in an area that has been
6 intentionally deprived of light for a period of time
7 intended to produce flower buds and induce maturation,
8 from the moment the light deprivation began through the
9 remainder of the marijuana plant growth cycle.
10 "Individual" means a natural person.
11 "Infuser organization" or "infuser" means a facility
12 operated by an organization or business that is licensed by
13 the Department of Agriculture to directly incorporate cannabis
14 or cannabis concentrate into a product formulation to produce
15 a cannabis-infused product.
16 "Kief" means the resinous crystal-like trichomes that are
17 found on cannabis and that are accumulated, resulting in a
18 higher concentration of cannabinoids, untreated by heat or
19 pressure, or extracted using a solvent.
20 "Labor peace agreement" means an agreement between a
21 cannabis business establishment and any labor organization
22 recognized under the National Labor Relations Act, referred to
23 in this Act as a bona fide labor organization, that prohibits
24 labor organizations and members from engaging in picketing,
25 work stoppages, boycotts, and any other economic interference
26 with the cannabis business establishment. This agreement means
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1 that the cannabis business establishment has agreed not to
2 disrupt efforts by the bona fide labor organization to
3 communicate with, and attempt to organize and represent, the
4 cannabis business establishment's employees. The agreement
5 shall provide a bona fide labor organization access at
6 reasonable times to areas in which the cannabis business
7 establishment's employees work, for the purpose of meeting
8 with employees to discuss their right to representation,
9 employment rights under State law, and terms and conditions of
10 employment. This type of agreement shall not mandate a
11 particular method of election or certification of the bona
12 fide labor organization.
13 "Limited access area" means a room or other area under the
14 control of a cannabis dispensing organization licensed under
15 this Act and upon the licensed premises where cannabis sales
16 occur with access limited to purchasers, dispensing
17 organization owners and other dispensing organization agents,
18 or service professionals conducting business with the
19 dispensing organization, or, if sales to registered qualifying
20 patients, caregivers, provisional patients, and Opioid
21 Alternative Pilot Program participants licensed pursuant to
22 the Compassionate Use of Medical Cannabis Program Act are also
23 permitted at the dispensary, registered qualifying patients,
24 caregivers, provisional patients, and Opioid Alternative Pilot
25 Program participants.
26 "Member of an impacted family" means an individual who has
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1 a parent, legal guardian, child, spouse, or dependent, or was
2 a dependent of an individual who, prior to the effective date
3 of this Act, was arrested for, convicted of, or adjudicated
4 delinquent for any offense that is eligible for expungement
5 under this Act.
6 "Mother plant" means a cannabis plant that is cultivated
7 or maintained for the purpose of generating clones, and that
8 will not be used to produce plant material for sale to an
9 infuser or dispensing organization.
10 "Ordinary public view" means within the sight line with
11 normal visual range of a person, unassisted by visual aids,
12 from a public street or sidewalk adjacent to real property, or
13 from within an adjacent property.
14 "Ownership and control" means ownership of at least 51% of
15 the business, including corporate stock if a corporation, and
16 control over the management and day-to-day operations of the
17 business and an interest in the capital, assets, and profits
18 and losses of the business proportionate to percentage of
19 ownership.
20 "Person" means a natural individual, firm, partnership,
21 association, joint stock company, joint venture, public or
22 private corporation, limited liability company, or a receiver,
23 executor, trustee, guardian, or other representative appointed
24 by order of any court.
25 "Possession limit" means the amount of cannabis under
26 Section 10-10 that may be possessed at any one time by a person
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1 21 years of age or older or who is a registered qualifying
2 medical cannabis patient or caregiver under the Compassionate
3 Use of Medical Cannabis Program Act.
4 "Principal officer" includes a cannabis business
5 establishment applicant or licensed cannabis business
6 establishment's board member, owner with more than 1% interest
7 of the total cannabis business establishment or more than 5%
8 interest of the total cannabis business establishment of a
9 publicly traded company, president, vice president, secretary,
10 treasurer, partner, officer, member, manager member, or person
11 with a profit sharing, financial interest, or revenue sharing
12 arrangement. The definition includes a person with authority
13 to control the cannabis business establishment, a person who
14 assumes responsibility for the debts of the cannabis business
15 establishment and who is further defined in this Act.
16 "Primary residence" means a dwelling where a person
17 usually stays or stays more often than other locations. It may
18 be determined by, without limitation, presence, tax filings;
19 address on an Illinois driver's license, an Illinois
20 Identification Card, or an Illinois Person with a Disability
21 Identification Card; or voter registration. No person may have
22 more than one primary residence.
23 "Processing organization" or "processor" means a facility
24 operated by an organization or business that is licensed by
25 the Department of Agriculture to either extract constituent
26 chemicals or compounds to produce cannabis concentrate or
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1 incorporate cannabis or cannabis concentrate into a product
2 formulation to produce a cannabis product.
3 "Processing organization agent" means a principal officer,
4 board member, employee, or agent of a processing organization.
5 "Processing organization agent identification card" means
6 a document issued by the Department of Agriculture that
7 identifies a person as a processing organization agent.
8 "Purchaser" means a person 21 years of age or older who
9 acquires cannabis for a valuable consideration. "Purchaser"
10 does not include a cardholder under the Compassionate Use of
11 Medical Cannabis Program Act.
12 "Qualifying Applicant" means an applicant that submitted
13 an application pursuant to Section 15-30 that received at
14 least 85% of 250 application points available under Section
15 15-30 as the applicant's final score and meets the definition
16 of "Social Equity Applicant" as set forth under this Section.
17 "Qualifying Social Equity Justice Involved Applicant"
18 means an applicant that submitted an application pursuant to
19 Section 15-30 that received at least 85% of 250 application
20 points available under Section 15-30 as the applicant's final
21 score and meets the criteria of either paragraph (1) or (2) of
22 the definition of "Social Equity Applicant" as set forth under
23 this Section.
24 "Qualified Social Equity Applicant" means a Social Equity
25 Applicant who has been awarded a conditional license under
26 this Act to operate a cannabis business establishment.
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1 "Resided" means an individual's primary residence was
2 located within the relevant geographic area as established by
3 2 of the following:
4 (1) a signed lease agreement that includes the
5 applicant's name;
6 (2) a property deed that includes the applicant's
7 name;
8 (3) school records;
9 (4) a voter registration card;
10 (5) an Illinois driver's license, an Illinois
11 Identification Card, or an Illinois Person with a
12 Disability Identification Card;
13 (6) a paycheck stub;
14 (7) a utility bill;
15 (8) tax records; or
16 (9) any other proof of residency or other information
17 necessary to establish residence as provided by rule.
18 "Smoking" means the inhalation of smoke caused by the
19 combustion of cannabis.
20 "Social Equity Applicant" means an applicant that is an
21 Illinois resident that meets one of the following criteria:
22 (1) an applicant with at least 51% ownership and
23 control by one or more individuals who have resided for at
24 least 5 of the preceding 10 years in a Disproportionately
25 Impacted Area;
26 (2) an applicant with at least 51% ownership and
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1 control by one or more individuals who:
2 (i) have been arrested for, convicted of, or
3 adjudicated delinquent for any offense that is
4 eligible for expungement under this Act; or
5 (ii) is a member of an impacted family;
6 (3) for applicants with a minimum of 10 full-time
7 employees, an applicant with at least 51% of current
8 employees who:
9 (i) currently reside in a Disproportionately
10 Impacted Area; or
11 (ii) have been arrested for, convicted of, or
12 adjudicated delinquent for any offense that is
13 eligible for expungement under this Act or member of
14 an impacted family.
15 Nothing in this Act shall be construed to preempt or limit
16 the duties of any employer under the Job Opportunities for
17 Qualified Applicants Act. Nothing in this Act shall permit an
18 employer to require an employee to disclose sealed or expunged
19 offenses, unless otherwise required by law.
20 "Tied Applicant" means an application submitted by a
21 Dispensary Applicant pursuant to Section 15-30 that received
22 the same number of application points under Section 15-30 as
23 the Dispensary Applicant's final score as one or more
24 top-scoring applications in the same BLS Region and would have
25 been awarded a license but for the one or more other
26 top-scoring applications that received the same number of
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1 application points. Each application for which a Dispensary
2 Applicant was required to pay a required application fee for
3 the application period ending January 2, 2020 shall be
4 considered an application of a separate Tied Applicant.
5 "Tied Applicant Lottery" means the process established
6 under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
7 Use Dispensing Organization Licenses pursuant to Sections
8 15-25 and 15-30 among Eligible Tied Applicants.
9 "Tincture" means a cannabis-infused solution, typically
10 comprised of alcohol, glycerin, or vegetable oils, derived
11 either directly from the cannabis plant or from a processed
12 cannabis extract. A tincture is not an alcoholic liquor as
13 defined in the Liquor Control Act of 1934. A tincture shall
14 include a calibrated dropper or other similar device capable
15 of accurately measuring servings.
16 "Transporting organization" or "transporter" means an
17 organization or business that is licensed by the Department of
18 Agriculture to transport cannabis or cannabis-infused product
19 on behalf of a cannabis business establishment or a community
20 college licensed under the Community College Cannabis
21 Vocational Training Pilot Program.
22 "Transporting organization agent" means a principal
23 officer, board member, employee, or agent of a transporting
24 organization.
25 "Transporting organization agent identification card"
26 means a document issued by the Department of Agriculture that
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1 identifies a person as a transporting organization agent.
2 "Unit of local government" means any county, city,
3 village, or incorporated town.
4 "Vegetative stage" means the stage of cultivation in which
5 a cannabis plant is propagated to produce additional cannabis
6 plants or reach a sufficient size for production. This
7 includes seedlings, clones, mothers, and other immature
8 cannabis plants as follows:
9 (1) if the cannabis plant is in an area that has not
10 been intentionally deprived of light for a period of time
11 intended to produce flower buds and induce maturation, it
12 has no more than 2 stigmas visible at each internode of the
13 cannabis plant; or
14 (2) any cannabis plant that is cultivated solely for
15 the purpose of propagating clones and is never used to
16 produce cannabis.
17 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
18 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
19 5-13-22.)
20 (410 ILCS 705/30-5)
21 Sec. 30-5. Issuance of licenses.
22 (a) The Department of Agriculture shall issue up to 40
23 craft grower licenses by July 1, 2020. Any person or entity
24 awarded a license pursuant to this subsection shall only hold
25 up to 3 one craft grower licenses license and may not sell that
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1 license until after December 21, 2021.
2 (b) By December 21, 2021, the Department of Agriculture
3 shall issue up to 60 additional craft grower licenses. Any
4 person or entity awarded a license pursuant to this subsection
5 shall not hold more than 6 2 craft grower licenses. The person
6 or entity awarded a license pursuant to this subsection or
7 subsection (a) of this Section may sell its craft grower
8 license subject to the restrictions of this Act or as
9 determined by administrative rule. Prior to issuing such
10 licenses, the Department may adopt rules through emergency
11 rulemaking in accordance with subsection (kk) of Section 5-45
12 of the Illinois Administrative Procedure Act, to modify or
13 raise the number of craft grower licenses and modify or change
14 the licensing application process. The General Assembly finds
15 that the adoption of rules to regulate cannabis use is deemed
16 an emergency and necessary for the public interest, safety,
17 and welfare. In determining whether to exercise the authority
18 granted by this subsection, the Department of Agriculture must
19 consider the following factors:
20 (1) the percentage of cannabis sales occurring in
21 Illinois not in the regulated market using data from the
22 Substance Abuse and Mental Health Services Administration,
23 National Survey on Drug Use and Health, Illinois
24 Behavioral Risk Factor Surveillance System, and tourism
25 data from the Illinois Office of Tourism to ascertain
26 total cannabis consumption in Illinois compared to the
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1 amount of sales in licensed dispensing organizations;
2 (2) whether there is an adequate supply of cannabis
3 and cannabis-infused products to serve registered medical
4 cannabis patients;
5 (3) whether there is an adequate supply of cannabis
6 and cannabis-infused products to serve purchasers;
7 (4) whether there is an oversupply of cannabis in
8 Illinois leading to trafficking of cannabis to states
9 where the sale of cannabis is not permitted by law;
10 (5) population increases or shifts;
11 (6) the density of craft growers in any area of the
12 State;
13 (7) perceived security risks of increasing the number
14 or location of craft growers;
15 (8) the past safety record of craft growers;
16 (9) the Department of Agriculture's capacity to
17 appropriately regulate additional licensees;
18 (10) (blank); and
19 (11) any other criteria the Department of Agriculture
20 deems relevant.
21 (c) After January 1, 2022, the Department of Agriculture
22 may by rule modify or raise the number of craft grower licenses
23 and modify or change the licensing application process. At no
24 time may the number of craft grower licenses exceed 150. Any
25 person or entity awarded a license pursuant to this subsection
26 shall not hold more than 10 3 craft grower licenses. A person
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1 or entity awarded a license pursuant to this subsection or
2 subsection (a) or subsection (b) of this Section may sell its
3 craft grower license or licenses subject to the restrictions
4 of this Act or as determined by administrative rule.
5 (d) Upon the completion of the disparity and availability
6 study pertaining to craft growers by the Cannabis Regulation
7 Oversight Officer pursuant to subsection (e) of Section 5-45,
8 the Department may modify or change the licensing application
9 process to reduce or eliminate barriers from and remedy
10 evidence of discrimination identified in the disparity and
11 availability study.
12 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
13 102-98, eff. 7-15-21.)
14 (410 ILCS 705/30-30)
15 Sec. 30-30. Craft grower requirements; prohibitions.
16 (a) The operating documents of a craft grower shall
17 include procedures for the oversight of the craft grower, a
18 cannabis plant monitoring system including a physical
19 inventory recorded weekly, accurate recordkeeping, and a
20 staffing plan.
21 (b) A craft grower shall implement a security plan
22 reviewed by the Illinois State Police that includes, but is
23 not limited to: facility access controls, perimeter intrusion
24 detection systems, personnel identification systems, and a
25 24-hour surveillance system to monitor the interior and
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1 exterior of the craft grower facility and that is accessible
2 to authorized law enforcement and the Department of
3 Agriculture in real time.
4 (c) All cultivation of cannabis by a craft grower must
5 take place in an enclosed, locked facility at the physical
6 address provided to the Department of Agriculture during the
7 licensing process. The craft grower location shall only be
8 accessed by the agents working for the craft grower, the
9 Department of Agriculture staff performing inspections, the
10 Department of Public Health staff performing inspections,
11 State and local law enforcement or other emergency personnel,
12 contractors working on jobs unrelated to cannabis, such as
13 installing or maintaining security devices or performing
14 electrical wiring, transporting organization agents as
15 provided in this Act, or participants in the incubator
16 program, individuals in a mentoring or educational program
17 approved by the State, or other individuals as provided by
18 rule. However, if a craft grower shares a premises with an
19 infuser or dispensing organization, agents from those other
20 licensees may access the craft grower portion of the premises
21 if that is the location of common bathrooms, lunchrooms,
22 locker rooms, or other areas of the building where work or
23 cultivation of cannabis is not performed. At no time may an
24 infuser or dispensing organization agent perform work at a
25 craft grower without being a registered agent of the craft
26 grower.
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1 (d) A craft grower may not sell or distribute any cannabis
2 to any person other than a cultivation center, a craft grower,
3 an infuser organization, a dispensing organization, or as
4 otherwise authorized by rule.
5 (e) A craft grower may not be located in an area zoned for
6 residential use.
7 (f) A craft grower may not either directly or indirectly
8 discriminate in price between different cannabis business
9 establishments that are purchasing a like grade, strain,
10 brand, and quality of cannabis or cannabis-infused product.
11 Nothing in this subsection (f) prevents a craft grower from
12 pricing cannabis differently based on differences in the cost
13 of manufacturing or processing, the quantities sold, such as
14 volume discounts, or the way the products are delivered.
15 (g) All cannabis harvested by a craft grower and intended
16 for distribution to a dispensing organization must be entered
17 into a data collection system, packaged and labeled under
18 Section 55-21, and, if distribution is to a dispensing
19 organization that does not share a premises with the
20 dispensing organization receiving the cannabis, placed into a
21 cannabis container for transport. All cannabis harvested by a
22 craft grower and intended for distribution to a cultivation
23 center, to an infuser organization, or to a craft grower with
24 which it does not share a premises, must be packaged in a
25 labeled cannabis container and entered into a data collection
26 system before transport.
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1 (h) Craft growers are subject to random inspections by the
2 Department of Agriculture, local safety or health inspectors,
3 the Illinois State Police, or as provided by rule.
4 (i) A craft grower agent shall notify local law
5 enforcement, the Illinois State Police, and the Department of
6 Agriculture within 24 hours of the discovery of any loss or
7 theft. Notification shall be made by phone, in person, or
8 written or electronic communication.
9 (j) A craft grower shall comply with all State and any
10 applicable federal rules and regulations regarding the use of
11 pesticides.
12 (k) A craft grower or craft grower agent shall not
13 transport cannabis or cannabis-infused products to any other
14 cannabis business establishment without a transport
15 organization license unless:
16 (i) If the craft grower is located in a county with a
17 population of 3,000,000 or more, the cannabis business
18 establishment receiving the cannabis is within 2,000 feet
19 of the property line of the craft grower;
20 (ii) If the craft grower is located in a county with a
21 population of more than 700,000 but fewer than 3,000,000,
22 the cannabis business establishment receiving the cannabis
23 is within 2 miles of the craft grower; or
24 (iii) If the craft grower is located in a county with a
25 population of fewer than 700,000, the cannabis business
26 establishment receiving the cannabis is within 15 miles of
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1 the craft grower.
2 (l) A craft grower may enter into a contract with a
3 transporting organization to transport cannabis to a
4 cultivation center, a craft grower, an infuser organization, a
5 dispensing organization, or a laboratory.
6 (m) No person or entity shall hold any legal, equitable,
7 ownership, or beneficial interest, directly or indirectly, of
8 more than 10 3 craft grower licenses. Further, no person or
9 entity that is employed by, an agent of, or has a contract to
10 receive payment from or participate in the management of a
11 craft grower, is a principal officer of a craft grower, or
12 entity controlled by or affiliated with a principal officer of
13 a craft grower shall hold any legal, equitable, ownership, or
14 beneficial interest, directly or indirectly, in a craft grower
15 license that would result in the person or entity owning or
16 controlling in combination with any craft grower, principal
17 officer of a craft grower, or entity controlled or affiliated
18 with a principal officer of a craft grower by which he, she, or
19 it is employed, is an agent of, or participates in the
20 management of more than 10 3 craft grower licenses.
21 (n) It is unlawful for any person having a craft grower
22 license or any officer, associate, member, representative, or
23 agent of the licensee to offer or deliver money, or anything
24 else of value, directly or indirectly, to any person having an
25 Early Approval Adult Use Dispensing Organization License, a
26 Conditional Adult Use Dispensing Organization License, an
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1 Adult Use Dispensing Organization License, or a medical
2 cannabis dispensing organization license issued under the
3 Compassionate Use of Medical Cannabis Program Act, or to any
4 person connected with or in any way representing, or to any
5 member of the family of, the person holding an Early Approval
6 Adult Use Dispensing Organization License, a Conditional Adult
7 Use Dispensing Organization License, an Adult Use Dispensing
8 Organization License, or a medical cannabis dispensing
9 organization license issued under the Compassionate Use of
10 Medical Cannabis Program Act, or to any stockholders in any
11 corporation engaged in the retail sale of cannabis, or to any
12 officer, manager, agent, or representative of the Early
13 Approval Adult Use Dispensing Organization License, a
14 Conditional Adult Use Dispensing Organization License, an
15 Adult Use Dispensing Organization License, or a medical
16 cannabis dispensing organization license issued under the
17 Compassionate Use of Medical Cannabis Program Act to obtain
18 preferential placement within the dispensing organization,
19 including, without limitation, on shelves and in display cases
20 where purchasers can view products, or on the dispensing
21 organization's website.
22 (o) A craft grower shall not be located within 1,500 feet
23 of another craft grower or a cultivation center.
24 (p) A craft grower may process cannabis, cannabis
25 concentrates, and cannabis-infused products.
26 (q) A craft grower must comply with any other requirements
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1 or prohibitions set by administrative rule of the Department
2 of Agriculture.
3 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
4 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
5 5-13-22.)
6 (410 ILCS 705/40-25)
7 Sec. 40-25. Transporting organization requirements;
8 prohibitions.
9 (a) The operating documents of a transporting organization
10 shall include procedures for the oversight of the transporter,
11 an inventory monitoring system including a physical inventory
12 recorded weekly, accurate recordkeeping, and a staffing plan.
13 (b) A transporting organization may not transport cannabis
14 or cannabis-infused products to any person other than a
15 cultivation center, a craft grower, an infuser organization, a
16 dispensing organization, a testing facility, a transporting
17 organization depot or other transporting organization transfer
18 facility, or as otherwise authorized by rule.
19 (c) All cannabis transported by a transporting
20 organization must be entered into a data collection system and
21 placed into a cannabis container for transport.
22 (d) Transporters are subject to random inspections by the
23 Department of Agriculture, the Department of Public Health,
24 the Illinois State Police, or as provided by rule.
25 (e) A transporting organization agent shall notify local
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1 law enforcement, the Illinois State Police, and the Department
2 of Agriculture within 24 hours of the discovery of any loss or
3 theft. Notification shall be made by phone, in person, or by
4 written or electronic communication.
5 (f) No person under the age of 21 years shall be in a
6 commercial vehicle or trailer transporting cannabis goods.
7 (g) No person or individual who is not a transporting
8 organization agent shall be in a vehicle while transporting
9 cannabis goods.
10 (h) Transporters may not use commercial motor vehicles
11 with a weight rating of over 10,001 pounds.
12 (i) It is unlawful for any person to offer or deliver
13 money, or anything else of value, directly or indirectly, to
14 any of the following persons to obtain preferential placement
15 within the dispensing organization, including, without
16 limitation, on shelves and in display cases where purchasers
17 can view products, or on the dispensing organization's
18 website:
19 (1) a person having a transporting organization
20 license, or any officer, associate, member,
21 representative, or agent of the licensee;
22 (2) a person having an Early Applicant Adult Use
23 Dispensing Organization License, an Adult Use Dispensing
24 Organization License, or a medical cannabis dispensing
25 organization license issued under the Compassionate Use of
26 Medical Cannabis Program Act;
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1 (3) a person connected with or in any way
2 representing, or a member of the family of, a person
3 holding an Early Applicant Adult Use Dispensing
4 Organization License, an Adult Use Dispensing Organization
5 License, or a medical cannabis dispensing organization
6 license issued under the Compassionate Use of Medical
7 Cannabis Program Act; or
8 (4) a stockholder, officer, manager, agent, or
9 representative of a corporation engaged in the retail sale
10 of cannabis, an Early Applicant Adult Use Dispensing
11 Organization License, an Adult Use Dispensing Organization
12 License, or a medical cannabis dispensing organization
13 license issued under the Compassionate Use of Medical
14 Cannabis Program Act.
15 (j) A transporting organization agent must keep his or her
16 identification card visible at all times when on the property
17 of a cannabis business establishment and during the
18 transporting of cannabis when acting under his or her duties
19 as a transportation organization agent. During these times,
20 the transporting organization agent must also provide the
21 identification card upon request of any law enforcement
22 officer engaged in his or her official duties.
23 (k) A copy of the transporting organization's registration
24 and a manifest for the delivery shall be present in any vehicle
25 transporting cannabis.
26 (l) Cannabis shall be transported so it is not visible or
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1 recognizable from outside the vehicle.
2 (m) A vehicle transporting cannabis must not bear any
3 markings to indicate the vehicle contains cannabis or bear the
4 name or logo of the cannabis business establishment.
5 (n) Cannabis must be transported in an enclosed, locked
6 storage compartment that is secured or affixed to the vehicle.
7 (o) The Department of Agriculture may, by rule, impose any
8 other requirements or prohibitions on the transportation of
9 cannabis.
10 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
11 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
12 5-13-22.)
13 (410 ILCS 705/55-20)
14 Sec. 55-20. Advertising and promotions.
15 (a) No cannabis business establishment nor any other
16 person or entity shall engage in advertising that contains any
17 statement or illustration that:
18 (1) is false or misleading;
19 (2) promotes overconsumption of cannabis or cannabis
20 products;
21 (3) depicts the actual consumption of cannabis or
22 cannabis products;
23 (4) depicts a person under 21 years of age consuming
24 cannabis;
25 (5) makes any health, medicinal, or therapeutic claims
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1 about cannabis or cannabis-infused products;
2 (6) includes the image of a cannabis leaf or bud; or
3 (7) includes any image designed or likely to appeal to
4 minors, including cartoons, toys, animals, or children, or
5 any other likeness to images, characters, or phrases that
6 is designed in any manner to be appealing to or encourage
7 consumption by persons under 21 years of age; or .
8 (8) includes a description of, or reference to, a
9 cannabis product as "craft" unless the cannabis product or
10 the raw material used to create the cannabis product is
11 produced by a craft grower licensed under this Act.
12 (b) No cannabis business establishment nor any other
13 person or entity shall place or maintain, or cause to be placed
14 or maintained, an advertisement of cannabis or a
15 cannabis-infused product in any form or through any medium:
16 (1) within 1,000 feet of the perimeter of school
17 grounds, a playground, a recreation center or facility, a
18 child care center, a public park or public library, or a
19 game arcade to which admission is not restricted to
20 persons 21 years of age or older;
21 (2) on or in a public transit vehicle or public
22 transit shelter;
23 (3) on or in publicly owned or publicly operated
24 property; or
25 (4) that contains information that:
26 (A) is false or misleading;
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1 (B) promotes excessive consumption;
2 (C) depicts a person under 21 years of age
3 consuming cannabis;
4 (D) includes the image of a cannabis leaf; or
5 (E) includes any image designed or likely to
6 appeal to minors, including cartoons, toys, animals,
7 or children, or any other likeness to images,
8 characters, or phrases that are popularly used to
9 advertise to children, or any imitation of candy
10 packaging or labeling, or that promotes consumption of
11 cannabis.
12 (c) Subsections (a) and (b) do not apply to an educational
13 message.
14 (d) Sales promotions. No cannabis business establishment
15 nor any other person or entity may encourage the sale of
16 cannabis or cannabis products by giving away cannabis or
17 cannabis products, by conducting games or competitions related
18 to the consumption of cannabis or cannabis products, or by
19 providing promotional materials or activities of a manner or
20 type that would be appealing to children.
21 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
22 (410 ILCS 705/60-10)
23 Sec. 60-10. Tax imposed.
24 (a) Beginning September 1, 2019, a tax is imposed upon the
25 privilege of cultivating cannabis at the rate of 7% of the
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1 gross receipts from the first sale of cannabis by a
2 cultivator. The sale of any product that contains any amount
3 of cannabis or any derivative thereof is subject to the tax
4 under this Section on the full selling price of the product.
5 The Department may determine the selling price of the cannabis
6 when the seller and purchaser are affiliated persons, when the
7 sale and purchase of cannabis is not an arm's length
8 transaction, or when cannabis is transferred by a craft grower
9 to the craft grower's dispensing organization or infuser or
10 processing organization and a value is not established for the
11 cannabis. The value determined by the Department shall be
12 commensurate with the actual price received for products of
13 like quality, character, and use in the area. If there are no
14 sales of cannabis of like quality, character, and use in the
15 same area, then the Department shall establish a reasonable
16 value based on sales of products of like quality, character,
17 and use in other areas of the State, taking into consideration
18 any other relevant factors.
19 (b) The Cannabis Cultivation Privilege Tax imposed under
20 this Article is solely the responsibility of the cultivator
21 who makes the first sale and is not the responsibility of a
22 subsequent purchaser, a dispensing organization, or an
23 infuser. Persons subject to the tax imposed under this Article
24 may, however, reimburse themselves for their tax liability
25 hereunder by separately stating reimbursement for their tax
26 liability as an additional charge.
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1 (c) The tax imposed under this Article shall be in
2 addition to all other occupation, privilege, or excise taxes
3 imposed by the State of Illinois or by any unit of local
4 government.
5 (d) The Cannabis Cultivation Privilege Tax imposed under
6 this Article shall not be assessed against or collected from
7 any craft grower awarded a license during the first group of
8 licenses issued by the Department of Agriculture under Section
9 30-5 until 2 years after the date the craft grower was awarded
10 the license.
11 (Source: P.A. 101-27, eff. 6-25-19.)
HB0025 - 36 - LRB103 03524 CPF 48530 b