103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB0031 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED: 410 ILCS 705/1-10410 ILCS 705/30-5410 ILCS 705/30-30410 ILCS 705/35-31410 ILCS 705/40-25410 ILCS 705/55-20410 ILCS 705/60-10 Amends the Cannabis Regulation and Tax Act. Removes language providing that any person or entity awarded a craft grower license under specified provisions shall only hold one craft grower license. Requires the Department of Agriculture to issue an additional 30 craft grower licenses on or before December 21, 2023 and an additional 30 craft grower licenses on or before March 15, 2024 under specified conditions. Removes language providing that a craft grower shall not be located within 1,500 feet of another craft grower. Requires each adult use cultivation center or Early Approval Adult Use Cultivation Center License holder that produces THC oil extract to set aside a portion of its total monthly production of THC oil extract to sell to infuser organizations to provide infuser organizations with an adequate supply for their infusion processes. Provides that a transporting organization may transport cannabis or cannabis-infused products to a transporting organization depot or other transporting organization transfer facility. Provides that no cannabis business establishment nor any other person or entity shall engage in advertising that contains any statement or illustration that includes a description of or reference to a cannabis product as "craft", unless that product or the raw material used to create that product is produced by a craft grower. Provides that the tax imposed under the Cannabis Cultivation Privilege Tax Law shall not be assessed against or collected from any craft grower awarded a craft grower license under the Act until 2 years after the date that the license is awarded to the craft grower. Makes other changes. Effective immediately. LRB103 03544 CPF 48550 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB0031 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED: 410 ILCS 705/1-10410 ILCS 705/30-5410 ILCS 705/30-30410 ILCS 705/35-31410 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 705/35-31 410 ILCS 705/40-25 410 ILCS 705/55-20 410 ILCS 705/60-10 Amends the Cannabis Regulation and Tax Act. Removes language providing that any person or entity awarded a craft grower license under specified provisions shall only hold one craft grower license. Requires the Department of Agriculture to issue an additional 30 craft grower licenses on or before December 21, 2023 and an additional 30 craft grower licenses on or before March 15, 2024 under specified conditions. Removes language providing that a craft grower shall not be located within 1,500 feet of another craft grower. Requires each adult use cultivation center or Early Approval Adult Use Cultivation Center License holder that produces THC oil extract to set aside a portion of its total monthly production of THC oil extract to sell to infuser organizations to provide infuser organizations with an adequate supply for their infusion processes. Provides that a transporting organization may transport cannabis or cannabis-infused products to a transporting organization depot or other transporting organization transfer facility. Provides that no cannabis business establishment nor any other person or entity shall engage in advertising that contains any statement or illustration that includes a description of or reference to a cannabis product as "craft", unless that product or the raw material used to create that product is produced by a craft grower. Provides that the tax imposed under the Cannabis Cultivation Privilege Tax Law shall not be assessed against or collected from any craft grower awarded a craft grower license under the Act until 2 years after the date that the license is awarded to the craft grower. Makes other changes. Effective immediately. LRB103 03544 CPF 48550 b LRB103 03544 CPF 48550 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB0031 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED: 410 ILCS 705/1-10410 ILCS 705/30-5410 ILCS 705/30-30410 ILCS 705/35-31410 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 705/35-31 410 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 705/35-31 410 ILCS 705/40-25 410 ILCS 705/55-20 410 ILCS 705/60-10 Amends the Cannabis Regulation and Tax Act. Removes language providing that any person or entity awarded a craft grower license under specified provisions shall only hold one craft grower license. Requires the Department of Agriculture to issue an additional 30 craft grower licenses on or before December 21, 2023 and an additional 30 craft grower licenses on or before March 15, 2024 under specified conditions. Removes language providing that a craft grower shall not be located within 1,500 feet of another craft grower. Requires each adult use cultivation center or Early Approval Adult Use Cultivation Center License holder that produces THC oil extract to set aside a portion of its total monthly production of THC oil extract to sell to infuser organizations to provide infuser organizations with an adequate supply for their infusion processes. Provides that a transporting organization may transport cannabis or cannabis-infused products to a transporting organization depot or other transporting organization transfer facility. Provides that no cannabis business establishment nor any other person or entity shall engage in advertising that contains any statement or illustration that includes a description of or reference to a cannabis product as "craft", unless that product or the raw material used to create that product is produced by a craft grower. Provides that the tax imposed under the Cannabis Cultivation Privilege Tax Law shall not be assessed against or collected from any craft grower awarded a craft grower license under the Act until 2 years after the date that the license is awarded to the craft grower. Makes other changes. Effective immediately. LRB103 03544 CPF 48550 b LRB103 03544 CPF 48550 b LRB103 03544 CPF 48550 b A BILL FOR HB0031LRB103 03544 CPF 48550 b HB0031 LRB103 03544 CPF 48550 b HB0031 LRB103 03544 CPF 48550 b 1 AN ACT concerning health. 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, 35-31, 40-25, 55-20, 6 and 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 HB0031 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED: 410 ILCS 705/1-10410 ILCS 705/30-5410 ILCS 705/30-30410 ILCS 705/35-31410 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 705/35-31 410 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 705/35-31 410 ILCS 705/40-25 410 ILCS 705/55-20 410 ILCS 705/60-10 Amends the Cannabis Regulation and Tax Act. Removes language providing that any person or entity awarded a craft grower license under specified provisions shall only hold one craft grower license. Requires the Department of Agriculture to issue an additional 30 craft grower licenses on or before December 21, 2023 and an additional 30 craft grower licenses on or before March 15, 2024 under specified conditions. Removes language providing that a craft grower shall not be located within 1,500 feet of another craft grower. Requires each adult use cultivation center or Early Approval Adult Use Cultivation Center License holder that produces THC oil extract to set aside a portion of its total monthly production of THC oil extract to sell to infuser organizations to provide infuser organizations with an adequate supply for their infusion processes. Provides that a transporting organization may transport cannabis or cannabis-infused products to a transporting organization depot or other transporting organization transfer facility. Provides that no cannabis business establishment nor any other person or entity shall engage in advertising that contains any statement or illustration that includes a description of or reference to a cannabis product as "craft", unless that product or the raw material used to create that product is produced by a craft grower. Provides that the tax imposed under the Cannabis Cultivation Privilege Tax Law shall not be assessed against or collected from any craft grower awarded a craft grower license under the Act until 2 years after the date that the license is awarded to the craft grower. Makes other changes. Effective immediately. LRB103 03544 CPF 48550 b LRB103 03544 CPF 48550 b LRB103 03544 CPF 48550 b A BILL FOR 410 ILCS 705/1-10 410 ILCS 705/30-5 410 ILCS 705/30-30 410 ILCS 705/35-31 410 ILCS 705/40-25 410 ILCS 705/55-20 410 ILCS 705/60-10 LRB103 03544 CPF 48550 b HB0031 LRB103 03544 CPF 48550 b HB0031- 2 -LRB103 03544 CPF 48550 b HB0031 - 2 - LRB103 03544 CPF 48550 b HB0031 - 2 - LRB103 03544 CPF 48550 b 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 HB0031 - 2 - LRB103 03544 CPF 48550 b HB0031- 3 -LRB103 03544 CPF 48550 b HB0031 - 3 - LRB103 03544 CPF 48550 b HB0031 - 3 - LRB103 03544 CPF 48550 b 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 HB0031 - 3 - LRB103 03544 CPF 48550 b HB0031- 4 -LRB103 03544 CPF 48550 b HB0031 - 4 - LRB103 03544 CPF 48550 b HB0031 - 4 - LRB103 03544 CPF 48550 b 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 HB0031 - 4 - LRB103 03544 CPF 48550 b HB0031- 5 -LRB103 03544 CPF 48550 b HB0031 - 5 - LRB103 03544 CPF 48550 b HB0031 - 5 - LRB103 03544 CPF 48550 b 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 HB0031 - 5 - LRB103 03544 CPF 48550 b HB0031- 6 -LRB103 03544 CPF 48550 b HB0031 - 6 - LRB103 03544 CPF 48550 b HB0031 - 6 - LRB103 03544 CPF 48550 b 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 3,000 square feet by rule based on market 21 need, craft grower capacity, and the licensee's history of 22 compliance or noncompliance, with a maximum space of 14,000 23 square feet for cultivating plants in the flowering stage, 24 which must be cultivated in all stages of growth in an enclosed 25 and secure area. A craft grower may share premises with a 26 processing organization or a dispensing organization, or both, HB0031 - 6 - LRB103 03544 CPF 48550 b HB0031- 7 -LRB103 03544 CPF 48550 b HB0031 - 7 - LRB103 03544 CPF 48550 b HB0031 - 7 - LRB103 03544 CPF 48550 b 1 provided each licensee stores currency and cannabis or 2 cannabis-infused products in a separate secured vault to which 3 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. HB0031 - 7 - LRB103 03544 CPF 48550 b HB0031- 8 -LRB103 03544 CPF 48550 b HB0031 - 8 - LRB103 03544 CPF 48550 b HB0031 - 8 - LRB103 03544 CPF 48550 b 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 HB0031 - 8 - LRB103 03544 CPF 48550 b HB0031- 9 -LRB103 03544 CPF 48550 b HB0031 - 9 - LRB103 03544 CPF 48550 b HB0031 - 9 - LRB103 03544 CPF 48550 b 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 HB0031 - 9 - LRB103 03544 CPF 48550 b HB0031- 10 -LRB103 03544 CPF 48550 b HB0031 - 10 - LRB103 03544 CPF 48550 b HB0031 - 10 - LRB103 03544 CPF 48550 b 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 HB0031 - 10 - LRB103 03544 CPF 48550 b HB0031- 11 -LRB103 03544 CPF 48550 b HB0031 - 11 - LRB103 03544 CPF 48550 b HB0031 - 11 - LRB103 03544 CPF 48550 b 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 HB0031 - 11 - LRB103 03544 CPF 48550 b HB0031- 12 -LRB103 03544 CPF 48550 b HB0031 - 12 - LRB103 03544 CPF 48550 b HB0031 - 12 - LRB103 03544 CPF 48550 b 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 HB0031 - 12 - LRB103 03544 CPF 48550 b HB0031- 13 -LRB103 03544 CPF 48550 b HB0031 - 13 - LRB103 03544 CPF 48550 b HB0031 - 13 - LRB103 03544 CPF 48550 b 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 HB0031 - 13 - LRB103 03544 CPF 48550 b HB0031- 14 -LRB103 03544 CPF 48550 b HB0031 - 14 - LRB103 03544 CPF 48550 b HB0031 - 14 - LRB103 03544 CPF 48550 b 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 HB0031 - 14 - LRB103 03544 CPF 48550 b HB0031- 15 -LRB103 03544 CPF 48550 b HB0031 - 15 - LRB103 03544 CPF 48550 b HB0031 - 15 - LRB103 03544 CPF 48550 b 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 HB0031 - 15 - LRB103 03544 CPF 48550 b HB0031- 16 -LRB103 03544 CPF 48550 b HB0031 - 16 - LRB103 03544 CPF 48550 b HB0031 - 16 - LRB103 03544 CPF 48550 b 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. HB0031 - 16 - LRB103 03544 CPF 48550 b HB0031- 17 -LRB103 03544 CPF 48550 b HB0031 - 17 - LRB103 03544 CPF 48550 b HB0031 - 17 - LRB103 03544 CPF 48550 b 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 HB0031 - 17 - LRB103 03544 CPF 48550 b HB0031- 18 -LRB103 03544 CPF 48550 b HB0031 - 18 - LRB103 03544 CPF 48550 b HB0031 - 18 - LRB103 03544 CPF 48550 b 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 "Social Equity Justice Involved Applicant" means an 21 applicant that is an Illinois resident that meets the 22 following criteria: 23 (1) an applicant with at least 51% ownership and 24 control by one or more individuals who have resided for at 25 least 5 of the preceding 10 years in a Disproportionately 26 Impacted Area; or HB0031 - 18 - LRB103 03544 CPF 48550 b HB0031- 19 -LRB103 03544 CPF 48550 b HB0031 - 19 - LRB103 03544 CPF 48550 b HB0031 - 19 - LRB103 03544 CPF 48550 b 1 (2) either: 2 (A) an applicant with at least 51% of ownership 3 and control by one or more individuals who have been 4 arrested for, convicted of, or adjudicated delinquent 5 for any offense that is eligible for expungement under 6 subsection (i) of Section 5.2 of the Criminal 7 Identification Act; or 8 (B) an applicant with at least 51% ownership and 9 control by one or more members of an impacted family. 10 "Tied Applicant" means an application submitted by a 11 Dispensary Applicant pursuant to Section 15-30 that received 12 the same number of application points under Section 15-30 as 13 the Dispensary Applicant's final score as one or more 14 top-scoring applications in the same BLS Region and would have 15 been awarded a license but for the one or more other 16 top-scoring applications that received the same number of 17 application points. Each application for which a Dispensary 18 Applicant was required to pay a required application fee for 19 the application period ending January 2, 2020 shall be 20 considered an application of a separate Tied Applicant. 21 "Tied Applicant Lottery" means the process established 22 under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult 23 Use Dispensing Organization Licenses pursuant to Sections 24 15-25 and 15-30 among Eligible Tied Applicants. 25 "Tincture" means a cannabis-infused solution, typically 26 comprised of alcohol, glycerin, or vegetable oils, derived HB0031 - 19 - LRB103 03544 CPF 48550 b HB0031- 20 -LRB103 03544 CPF 48550 b HB0031 - 20 - LRB103 03544 CPF 48550 b HB0031 - 20 - LRB103 03544 CPF 48550 b 1 either directly from the cannabis plant or from a processed 2 cannabis extract. A tincture is not an alcoholic liquor as 3 defined in the Liquor Control Act of 1934. A tincture shall 4 include a calibrated dropper or other similar device capable 5 of accurately measuring servings. 6 "Transporting organization" or "transporter" means an 7 organization or business that is licensed by the Department of 8 Agriculture to transport cannabis or cannabis-infused product 9 on behalf of a cannabis business establishment or a community 10 college licensed under the Community College Cannabis 11 Vocational Training Pilot Program. 12 "Transporting organization agent" means a principal 13 officer, board member, employee, or agent of a transporting 14 organization. 15 "Transporting organization agent identification card" 16 means a document issued by the Department of Agriculture that 17 identifies a person as a transporting organization agent. 18 "Unit of local government" means any county, city, 19 village, or incorporated town. 20 "Vegetative stage" means the stage of cultivation in which 21 a cannabis plant is propagated to produce additional cannabis 22 plants or reach a sufficient size for production. This 23 includes seedlings, clones, mothers, and other immature 24 cannabis plants as follows: 25 (1) if the cannabis plant is in an area that has not 26 been intentionally deprived of light for a period of time HB0031 - 20 - LRB103 03544 CPF 48550 b HB0031- 21 -LRB103 03544 CPF 48550 b HB0031 - 21 - LRB103 03544 CPF 48550 b HB0031 - 21 - LRB103 03544 CPF 48550 b 1 intended to produce flower buds and induce maturation, it 2 has no more than 2 stigmas visible at each internode of the 3 cannabis plant; or 4 (2) any cannabis plant that is cultivated solely for 5 the purpose of propagating clones and is never used to 6 produce cannabis. 7 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 8 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff. 9 5-13-22.) 10 (410 ILCS 705/30-5) 11 Sec. 30-5. Issuance of licenses. 12 (a) The Department of Agriculture shall issue up to 40 13 craft grower licenses by July 1, 2020. Any person or entity 14 awarded a license pursuant to this subsection shall only hold 15 one craft grower license and may not sell that license until 16 after December 21, 2021. 17 (a-5) The Department of Agriculture shall issue an 18 additional 30 craft grower licenses on or before December 21, 19 2023, cost free, to applicants who submitted craft grower 20 license applications on or before April 30, 2020 but were not 21 awarded a license under subsection (a) and who received at 22 least 85% of the total points available on their applications. 23 Any person or entity awarded a license under this subsection 24 may sell that license at any time after it is awarded. 25 (a-10) The Department of Agriculture shall issue an HB0031 - 21 - LRB103 03544 CPF 48550 b HB0031- 22 -LRB103 03544 CPF 48550 b HB0031 - 22 - LRB103 03544 CPF 48550 b HB0031 - 22 - LRB103 03544 CPF 48550 b 1 additional 30 craft grower licenses on or before March 15, 2 2024, cost free, to applicants who submitted craft grower 3 license applications on or before April 30, 2020 but were not 4 awarded a license under subsection (a) or subsection (a-5), 5 received at least 85% of the total points available on their 6 applications, and qualify as Social Equity Justice Involved 7 Applicants. Any applicant awarded a license under this 8 subsection may sell that license at any time after it is 9 awarded. 10 (b) By December 21, 2021, the Department of Agriculture 11 shall issue up to 60 additional craft grower licenses. Any 12 person or entity awarded a license pursuant to this Section 13 subsection shall not hold more than 2 craft grower licenses. 14 The person or entity awarded a license pursuant to this 15 subsection or subsection (a) of this Section may sell its 16 craft grower license subject to the restrictions of this Act 17 or as determined by administrative rule. Prior to issuing such 18 licenses, the Department may adopt rules through emergency 19 rulemaking in accordance with subsection (kk) of Section 5-45 20 of the Illinois Administrative Procedure Act, to modify or 21 raise the number of craft grower licenses and modify or change 22 the licensing application process. The General Assembly finds 23 that the adoption of rules to regulate cannabis use is deemed 24 an emergency and necessary for the public interest, safety, 25 and welfare. In determining whether to exercise the authority 26 granted by this subsection, the Department of Agriculture must HB0031 - 22 - LRB103 03544 CPF 48550 b HB0031- 23 -LRB103 03544 CPF 48550 b HB0031 - 23 - LRB103 03544 CPF 48550 b HB0031 - 23 - LRB103 03544 CPF 48550 b 1 consider the following factors: 2 (1) the percentage of cannabis sales occurring in 3 Illinois not in the regulated market using data from the 4 Substance Abuse and Mental Health Services Administration, 5 National Survey on Drug Use and Health, Illinois 6 Behavioral Risk Factor Surveillance System, and tourism 7 data from the Illinois Office of Tourism to ascertain 8 total cannabis consumption in Illinois compared to the 9 amount of sales in licensed dispensing organizations; 10 (2) whether there is an adequate supply of cannabis 11 and cannabis-infused products to serve registered medical 12 cannabis patients; 13 (3) whether there is an adequate supply of cannabis 14 and cannabis-infused products to serve purchasers; 15 (4) whether there is an oversupply of cannabis in 16 Illinois leading to trafficking of cannabis to states 17 where the sale of cannabis is not permitted by law; 18 (5) population increases or shifts; 19 (6) the density of craft growers in any area of the 20 State; 21 (7) perceived security risks of increasing the number 22 or location of craft growers; 23 (8) the past safety record of craft growers; 24 (9) the Department of Agriculture's capacity to 25 appropriately regulate additional licensees; 26 (10) (blank); and HB0031 - 23 - LRB103 03544 CPF 48550 b HB0031- 24 -LRB103 03544 CPF 48550 b HB0031 - 24 - LRB103 03544 CPF 48550 b HB0031 - 24 - LRB103 03544 CPF 48550 b 1 (11) any other criteria the Department of Agriculture 2 deems relevant. 3 (c) After January 1, 2024 2022, the Department of 4 Agriculture may by rule modify or raise the number of craft 5 grower licenses and modify or change the licensing application 6 process. At no time may the number of craft grower licenses 7 exceed 150. Any person or entity awarded a license pursuant to 8 this subsection shall not hold more than 3 craft grower 9 licenses. A person or entity awarded a license pursuant to 10 this subsection or subsections subsection (a), (a-5), or 11 (a-10) or subsection (b) of this Section may sell its craft 12 grower license or licenses subject to the restrictions of this 13 Act or as determined by administrative rule. 14 (d) Upon the completion of the disparity and availability 15 study pertaining to craft growers by the Cannabis Regulation 16 Oversight Officer pursuant to subsection (e) of Section 5-45, 17 the Department may modify or change the licensing application 18 process to reduce or eliminate barriers from and remedy 19 evidence of discrimination identified in the disparity and 20 availability study. 21 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 22 102-98, eff. 7-15-21.) 23 (410 ILCS 705/30-30) 24 Sec. 30-30. Craft grower requirements; prohibitions. 25 (a) The operating documents of a craft grower shall HB0031 - 24 - LRB103 03544 CPF 48550 b HB0031- 25 -LRB103 03544 CPF 48550 b HB0031 - 25 - LRB103 03544 CPF 48550 b HB0031 - 25 - LRB103 03544 CPF 48550 b 1 include procedures for the oversight of the craft grower, a 2 cannabis plant monitoring system including a physical 3 inventory recorded weekly, accurate recordkeeping, and a 4 staffing plan. 5 (b) A craft grower shall implement a security plan 6 reviewed by the Illinois State Police that includes, but is 7 not limited to: facility access controls, perimeter intrusion 8 detection systems, personnel identification systems, and a 9 24-hour surveillance system to monitor the interior and 10 exterior of the craft grower facility and that is accessible 11 to authorized law enforcement and the Department of 12 Agriculture in real time. 13 (c) All cultivation of cannabis by a craft grower must 14 take place in an enclosed, locked facility at the physical 15 address provided to the Department of Agriculture during the 16 licensing process. The craft grower location shall only be 17 accessed by the agents working for the craft grower, the 18 Department of Agriculture staff performing inspections, the 19 Department of Public Health staff performing inspections, 20 State and local law enforcement or other emergency personnel, 21 contractors working on jobs unrelated to cannabis, such as 22 installing or maintaining security devices or performing 23 electrical wiring, transporting organization agents as 24 provided in this Act, or participants in the incubator 25 program, individuals in a mentoring or educational program 26 approved by the State, or other individuals as provided by HB0031 - 25 - LRB103 03544 CPF 48550 b HB0031- 26 -LRB103 03544 CPF 48550 b HB0031 - 26 - LRB103 03544 CPF 48550 b HB0031 - 26 - LRB103 03544 CPF 48550 b 1 rule. However, if a craft grower shares a premises with an 2 infuser or dispensing organization, agents from those other 3 licensees may access the craft grower portion of the premises 4 if that is the location of common bathrooms, lunchrooms, 5 locker rooms, or other areas of the building where work or 6 cultivation of cannabis is not performed. At no time may an 7 infuser or dispensing organization agent perform work at a 8 craft grower without being a registered agent of the craft 9 grower. 10 (d) A craft grower may not sell or distribute any cannabis 11 to any person other than a cultivation center, a craft grower, 12 an infuser organization, a dispensing organization, or as 13 otherwise authorized by rule. 14 (e) A craft grower may not be located in an area zoned for 15 residential use. 16 (f) A craft grower may not either directly or indirectly 17 discriminate in price between different cannabis business 18 establishments that are purchasing a like grade, strain, 19 brand, and quality of cannabis or cannabis-infused product. 20 Nothing in this subsection (f) prevents a craft grower from 21 pricing cannabis differently based on differences in the cost 22 of manufacturing or processing, the quantities sold, such as 23 volume discounts, or the way the products are delivered. 24 (g) All cannabis harvested by a craft grower and intended 25 for distribution to a dispensing organization must be entered 26 into a data collection system, packaged and labeled under HB0031 - 26 - LRB103 03544 CPF 48550 b HB0031- 27 -LRB103 03544 CPF 48550 b HB0031 - 27 - LRB103 03544 CPF 48550 b HB0031 - 27 - LRB103 03544 CPF 48550 b 1 Section 55-21, and, if distribution is to a dispensing 2 organization that does not share a premises with the 3 dispensing organization receiving the cannabis, placed into a 4 cannabis container for transport. All cannabis harvested by a 5 craft grower and intended for distribution to a cultivation 6 center, to an infuser organization, or to a craft grower with 7 which it does not share a premises, must be packaged in a 8 labeled cannabis container and entered into a data collection 9 system before transport. 10 (h) Craft growers are subject to random inspections by the 11 Department of Agriculture, local safety or health inspectors, 12 the Illinois State Police, or as provided by rule. 13 (i) A craft grower agent shall notify local law 14 enforcement, the Illinois State Police, and the Department of 15 Agriculture within 24 hours of the discovery of any loss or 16 theft. Notification shall be made by phone, in person, or 17 written or electronic communication. 18 (j) A craft grower shall comply with all State and any 19 applicable federal rules and regulations regarding the use of 20 pesticides. 21 (k) A craft grower or craft grower agent shall not 22 transport cannabis or cannabis-infused products to any other 23 cannabis business establishment without a transport 24 organization license unless: 25 (i) If the craft grower is located in a county with a 26 population of 3,000,000 or more, the cannabis business HB0031 - 27 - LRB103 03544 CPF 48550 b HB0031- 28 -LRB103 03544 CPF 48550 b HB0031 - 28 - LRB103 03544 CPF 48550 b HB0031 - 28 - LRB103 03544 CPF 48550 b 1 establishment receiving the cannabis is within 2,000 feet 2 of the property line of the craft grower; 3 (ii) If the craft grower is located in a county with a 4 population of more than 700,000 but fewer than 3,000,000, 5 the cannabis business establishment receiving the cannabis 6 is within 2 miles of the craft grower; or 7 (iii) If the craft grower is located in a county with a 8 population of fewer than 700,000, the cannabis business 9 establishment receiving the cannabis is within 15 miles of 10 the craft grower. 11 (l) A craft grower may enter into a contract with a 12 transporting organization to transport cannabis to a 13 cultivation center, a craft grower, an infuser organization, a 14 dispensing organization, or a laboratory. 15 (m) No person or entity shall hold any legal, equitable, 16 ownership, or beneficial interest, directly or indirectly, of 17 more than 3 craft grower licenses. Further, no person or 18 entity that is employed by, an agent of, or has a contract to 19 receive payment from or participate in the management of a 20 craft grower, is a principal officer of a craft grower, or 21 entity controlled by or affiliated with a principal officer of 22 a craft grower shall hold any legal, equitable, ownership, or 23 beneficial interest, directly or indirectly, in a craft grower 24 license that would result in the person or entity owning or 25 controlling in combination with any craft grower, principal 26 officer of a craft grower, or entity controlled or affiliated HB0031 - 28 - LRB103 03544 CPF 48550 b HB0031- 29 -LRB103 03544 CPF 48550 b HB0031 - 29 - LRB103 03544 CPF 48550 b HB0031 - 29 - LRB103 03544 CPF 48550 b 1 with a principal officer of a craft grower by which he, she, or 2 it is employed, is an agent of, or participates in the 3 management of more than 3 craft grower licenses. 4 (n) It is unlawful for any person having a craft grower 5 license or any officer, associate, member, representative, or 6 agent of the licensee to offer or deliver money, or anything 7 else of value, directly or indirectly, to any person having an 8 Early Approval Adult Use Dispensing Organization License, a 9 Conditional Adult Use Dispensing Organization License, an 10 Adult Use Dispensing Organization License, or a medical 11 cannabis dispensing organization license issued under the 12 Compassionate Use of Medical Cannabis Program Act, or to any 13 person connected with or in any way representing, or to any 14 member of the family of, the person holding an Early Approval 15 Adult Use Dispensing Organization License, a Conditional Adult 16 Use Dispensing Organization License, an Adult Use Dispensing 17 Organization License, or a medical cannabis dispensing 18 organization license issued under the Compassionate Use of 19 Medical Cannabis Program Act, or to any stockholders in any 20 corporation engaged in the retail sale of cannabis, or to any 21 officer, manager, agent, or representative of the Early 22 Approval Adult Use Dispensing Organization License, a 23 Conditional Adult Use Dispensing Organization License, an 24 Adult Use Dispensing Organization License, or a medical 25 cannabis dispensing organization license issued under the 26 Compassionate Use of Medical Cannabis Program Act to obtain HB0031 - 29 - LRB103 03544 CPF 48550 b HB0031- 30 -LRB103 03544 CPF 48550 b HB0031 - 30 - LRB103 03544 CPF 48550 b HB0031 - 30 - LRB103 03544 CPF 48550 b 1 preferential placement within the dispensing organization, 2 including, without limitation, on shelves and in display cases 3 where purchasers can view products, or on the dispensing 4 organization's website. 5 (o) A craft grower shall not be located within 1,500 feet 6 of another craft grower or a cultivation center. 7 (p) A craft grower may process cannabis, cannabis 8 concentrates, and cannabis-infused products. 9 (q) A craft grower must comply with any other requirements 10 or prohibitions set by administrative rule of the Department 11 of Agriculture. 12 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 13 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff. 14 5-13-22.) 15 (410 ILCS 705/35-31) 16 Sec. 35-31. Ensuring an adequate supply of raw materials 17 to serve infusers. 18 (a) As used in this Section, "raw materials" includes, but 19 is not limited to, CO2 hash oil, "crude", "distillate", or any 20 other cannabis concentrate extracted from cannabis flower by 21 use of a solvent or a mechanical process. 22 (b) The Department of Agriculture may by rule design a 23 method for assessing whether licensed infusers have access to 24 an adequate supply of reasonably affordable raw materials, 25 which may include but not be limited to: (i) a survey of HB0031 - 30 - LRB103 03544 CPF 48550 b HB0031- 31 -LRB103 03544 CPF 48550 b HB0031 - 31 - LRB103 03544 CPF 48550 b HB0031 - 31 - LRB103 03544 CPF 48550 b 1 infusers; (ii) a market study on the sales trends of 2 cannabis-infused products manufactured by infusers; and (iii) 3 the costs cultivation centers and craft growers assume for the 4 raw materials they use in any cannabis-infused products they 5 manufacture. 6 (b-5) Each adult use cultivation center or Early Approval 7 Adult Use Cultivation Center License holder licensed under 8 Article 20 that produces THC oil extract shall set aside a 9 portion of its total monthly production of THC oil extract to 10 sell to infuser organizations at market price, quality, and 11 variety to provide infuser organizations with an adequate 12 supply for their infusion processes. The portion set aside by 13 each cultivation center or Early Approval Adult Use 14 Cultivation Center License holder shall be on a proportionate, 15 pro rata basis and based upon its total monthly production 16 compared to the industry total monthly production in the 17 previous year as determined by the Department of Agriculture. 18 The total monthly portion of THC oil extract set aside by all 19 cultivation centers and Early Approval Adult Use Cultivation 20 Center License holders shall be as follows: 21 (1) During calendar year 2023, 50,000 grams per month. 22 (2) During calendar year 2024, 60,000 grams per month. 23 (3) During calendar year 2025, 70,000 grams per month. 24 (4) During calendar year 2026, 80,000 grams per month. 25 (5) During calendar year 2027, 90,000 grams per month. 26 The price of THC oil extract shall be the average fair HB0031 - 31 - LRB103 03544 CPF 48550 b HB0031- 32 -LRB103 03544 CPF 48550 b HB0031 - 32 - LRB103 03544 CPF 48550 b HB0031 - 32 - LRB103 03544 CPF 48550 b 1 market price as determined quarterly by the Department of 2 Agriculture or an amount equal to 900% of the U.S. Cannabis 3 Spot Index's price for cannabis flower if, during any quarter, 4 the Department fails to establish a fair market price based 5 upon quality and variety. After January 1, 2024, the monthly 6 portion of THC oil extract may be adjusted by the Department of 7 Agriculture based upon market assessments as provided in 8 subsections (c) and (d). 9 (c) The Department of Agriculture shall perform an 10 assessment of whether infusers have access to an adequate 11 supply of reasonably affordable raw materials that shall start 12 no sooner than January 1, 2024 2022 and shall conclude no later 13 than April 1, 2024 2022. The Department of Agriculture may 14 rely on data from the Illinois Cannabis Regulation Oversight 15 Officer as part of this assessment. 16 (d) The Department of Agriculture shall perform an 17 assessment of whether infusers have access to an adequate 18 supply of reasonably affordable raw materials that shall start 19 no sooner than January 1, 2025 2023 and shall conclude no later 20 than April 1, 2025 2023. The Department of Agriculture may 21 rely on data from the Cannabis Regulation Oversight Officer as 22 part of this assessment. 23 (e) The Department of Agriculture may by rule adopt 24 measures to ensure infusers have access to an adequate supply 25 of reasonably affordable raw materials necessary for the 26 manufacture of cannabis-infused products. Such measures may HB0031 - 32 - LRB103 03544 CPF 48550 b HB0031- 33 -LRB103 03544 CPF 48550 b HB0031 - 33 - LRB103 03544 CPF 48550 b HB0031 - 33 - LRB103 03544 CPF 48550 b 1 include, but not be limited to (i) requiring cultivation 2 centers and craft growers to set aside a minimum amount of raw 3 materials for the wholesale market or (ii) enabling infusers 4 to apply for a processor license to extract raw materials from 5 cannabis flower. 6 (f) If the Department of Agriculture determines processor 7 licenses may be available to infuser organizations based upon 8 findings made pursuant to subsection (e), infuser 9 organizations may submit to the Department of Agriculture on 10 forms provided by the Department of Agriculture the following 11 information as part of an application to receive a processor 12 license: 13 (1) experience with the extraction, processing, or 14 infusing of oils similar to those derived from cannabis, 15 or other business practices to be performed by the 16 infuser; 17 (2) a description of the applicant's experience with 18 manufacturing equipment and chemicals to be used in 19 processing; 20 (3) expertise in relevant scientific fields; 21 (4) a commitment that any cannabis waste, liquid 22 waste, or hazardous waste shall be disposed of in 23 accordance with 8 Ill. Adm. Code 1000.460, except, to the 24 greatest extent feasible, all cannabis plant waste will be 25 rendered unusable by grinding and incorporating the 26 cannabis plant waste with compostable mixed waste to be HB0031 - 33 - LRB103 03544 CPF 48550 b HB0031- 34 -LRB103 03544 CPF 48550 b HB0031 - 34 - LRB103 03544 CPF 48550 b HB0031 - 34 - LRB103 03544 CPF 48550 b 1 disposed of in accordance with Ill. Adm. Code 2 1000.460(g)(1); and 3 (5) any other information the Department of 4 Agriculture deems relevant. 5 (g) The Department of Agriculture may only issue an 6 infuser organization a processor license if, based on the 7 information pursuant to subsection (f) and any other criteria 8 set by the Department of Agriculture, which may include but 9 not be limited an inspection of the site where processing 10 would occur, the Department of Agriculture is reasonably 11 certain the infuser organization will process cannabis in a 12 safe and compliant manner. 13 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.) 14 (410 ILCS 705/40-25) 15 Sec. 40-25. Transporting organization requirements; 16 prohibitions. 17 (a) The operating documents of a transporting organization 18 shall include procedures for the oversight of the transporter, 19 an inventory monitoring system including a physical inventory 20 recorded weekly, accurate recordkeeping, and a staffing plan. 21 (b) A transporting organization may not transport cannabis 22 or cannabis-infused products to any person other than a 23 cultivation center, a craft grower, an infuser organization, a 24 dispensing organization, a testing facility, a transporting 25 organization depot or other transporting organization transfer HB0031 - 34 - LRB103 03544 CPF 48550 b HB0031- 35 -LRB103 03544 CPF 48550 b HB0031 - 35 - LRB103 03544 CPF 48550 b HB0031 - 35 - LRB103 03544 CPF 48550 b 1 facility, or as otherwise authorized by rule. A transporting 2 organization shall be specifically allowed to use the same 3 transport vehicle to pick up or deliver cannabis products from 4 and to multiple craft growers, processors, and dispensaries 5 during the transporting organization's pick up and delivery 6 process. 7 (c) All cannabis transported by a transporting 8 organization must be entered into a data collection system and 9 placed into a cannabis container for transport. 10 (d) Transporters are subject to random inspections by the 11 Department of Agriculture, the Department of Public Health, 12 the Illinois State Police, or as provided by rule. 13 (e) A transporting organization agent shall notify local 14 law enforcement, the Illinois State Police, and the Department 15 of Agriculture within 24 hours of the discovery of any loss or 16 theft. Notification shall be made by phone, in person, or by 17 written or electronic communication. 18 (f) No person under the age of 21 years shall be in a 19 commercial vehicle or trailer transporting cannabis goods. 20 (g) No person or individual who is not a transporting 21 organization agent shall be in a vehicle while transporting 22 cannabis goods. 23 (h) Transporters may not use commercial motor vehicles 24 with a weight rating of over 10,001 pounds. 25 (i) It is unlawful for any person to offer or deliver 26 money, or anything else of value, directly or indirectly, to HB0031 - 35 - LRB103 03544 CPF 48550 b HB0031- 36 -LRB103 03544 CPF 48550 b HB0031 - 36 - LRB103 03544 CPF 48550 b HB0031 - 36 - LRB103 03544 CPF 48550 b 1 any of the following persons to obtain preferential placement 2 within the dispensing organization, including, without 3 limitation, on shelves and in display cases where purchasers 4 can view products, or on the dispensing organization's 5 website: 6 (1) a person having a transporting organization 7 license, or any officer, associate, member, 8 representative, or agent of the licensee; 9 (2) a person having an Early Applicant Adult Use 10 Dispensing Organization License, an Adult Use Dispensing 11 Organization License, or a medical cannabis dispensing 12 organization license issued under the Compassionate Use of 13 Medical Cannabis Program Act; 14 (3) a person connected with or in any way 15 representing, or a member of the family of, a person 16 holding an Early Applicant Adult Use Dispensing 17 Organization License, an Adult Use Dispensing Organization 18 License, or a medical cannabis dispensing organization 19 license issued under the Compassionate Use of Medical 20 Cannabis Program Act; or 21 (4) a stockholder, officer, manager, agent, or 22 representative of a corporation engaged in the retail sale 23 of cannabis, an Early Applicant Adult Use Dispensing 24 Organization License, an Adult Use Dispensing Organization 25 License, or a medical cannabis dispensing organization 26 license issued under the Compassionate Use of Medical HB0031 - 36 - LRB103 03544 CPF 48550 b HB0031- 37 -LRB103 03544 CPF 48550 b HB0031 - 37 - LRB103 03544 CPF 48550 b HB0031 - 37 - LRB103 03544 CPF 48550 b 1 Cannabis Program Act. 2 (j) A transporting organization agent must keep his or her 3 identification card visible at all times when on the property 4 of a cannabis business establishment and during the 5 transporting of cannabis when acting under his or her duties 6 as a transportation organization agent. During these times, 7 the transporting organization agent must also provide the 8 identification card upon request of any law enforcement 9 officer engaged in his or her official duties. 10 (k) A copy of the transporting organization's registration 11 and a manifest for the delivery shall be present in any vehicle 12 transporting cannabis. 13 (l) Cannabis shall be transported so it is not visible or 14 recognizable from outside the vehicle. 15 (m) A vehicle transporting cannabis must not bear any 16 markings to indicate the vehicle contains cannabis or bear the 17 name or logo of the cannabis business establishment. 18 (n) Cannabis must be transported in an enclosed, locked 19 storage compartment or security cage that is secured or 20 affixed to the vehicle. 21 (o) The Department of Agriculture may, by rule, impose any 22 other requirements or prohibitions on the transportation of 23 cannabis. 24 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 25 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff. 26 5-13-22.) HB0031 - 37 - LRB103 03544 CPF 48550 b HB0031- 38 -LRB103 03544 CPF 48550 b HB0031 - 38 - LRB103 03544 CPF 48550 b HB0031 - 38 - LRB103 03544 CPF 48550 b 1 (410 ILCS 705/55-20) 2 Sec. 55-20. Advertising and promotions. 3 (a) No cannabis business establishment nor any other 4 person or entity shall engage in advertising that contains any 5 statement or illustration that: 6 (1) is false or misleading; 7 (2) promotes overconsumption of cannabis or cannabis 8 products; 9 (3) depicts the actual consumption of cannabis or 10 cannabis products; 11 (4) depicts a person under 21 years of age consuming 12 cannabis; 13 (5) makes any health, medicinal, or therapeutic claims 14 about cannabis or cannabis-infused products; 15 (6) includes the image of a cannabis leaf or bud; or 16 (7) includes any image designed or likely to appeal to 17 minors, including cartoons, toys, animals, or children, or 18 any other likeness to images, characters, or phrases that 19 is designed in any manner to be appealing to or encourage 20 consumption by persons under 21 years of age; or . 21 (8) includes a description of or reference to a 22 cannabis product as "craft", unless that product or the 23 raw material used to create that product is produced by a 24 craft grower licensed under this Act. 25 (b) No cannabis business establishment nor any other HB0031 - 38 - LRB103 03544 CPF 48550 b HB0031- 39 -LRB103 03544 CPF 48550 b HB0031 - 39 - LRB103 03544 CPF 48550 b HB0031 - 39 - LRB103 03544 CPF 48550 b 1 person or entity shall place or maintain, or cause to be placed 2 or maintained, an advertisement of cannabis or a 3 cannabis-infused product in any form or through any medium: 4 (1) within 1,000 feet of the perimeter of school 5 grounds, a playground, a recreation center or facility, a 6 child care center, a public park or public library, or a 7 game arcade to which admission is not restricted to 8 persons 21 years of age or older; 9 (2) on or in a public transit vehicle or public 10 transit shelter; 11 (3) on or in publicly owned or publicly operated 12 property; or 13 (4) that contains information that: 14 (A) is false or misleading; 15 (B) promotes excessive consumption; 16 (C) depicts a person under 21 years of age 17 consuming cannabis; 18 (D) includes the image of a cannabis leaf; or 19 (E) includes any image designed or likely to 20 appeal to minors, including cartoons, toys, animals, 21 or children, or any other likeness to images, 22 characters, or phrases that are popularly used to 23 advertise to children, or any imitation of candy 24 packaging or labeling, or that promotes consumption of 25 cannabis. 26 (c) Subsections (a) and (b) do not apply to an educational HB0031 - 39 - LRB103 03544 CPF 48550 b HB0031- 40 -LRB103 03544 CPF 48550 b HB0031 - 40 - LRB103 03544 CPF 48550 b HB0031 - 40 - LRB103 03544 CPF 48550 b 1 message. 2 (d) Sales promotions. No cannabis business establishment 3 nor any other person or entity may encourage the sale of 4 cannabis or cannabis products by giving away cannabis or 5 cannabis products, by conducting games or competitions related 6 to the consumption of cannabis or cannabis products, or by 7 providing promotional materials or activities of a manner or 8 type that would be appealing to children. 9 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.) 10 (410 ILCS 705/60-10) 11 Sec. 60-10. Tax imposed. 12 (a) Beginning September 1, 2019, a tax is imposed upon the 13 privilege of cultivating cannabis at the rate of 7% of the 14 gross receipts from the first sale of cannabis by a 15 cultivator. The sale of any product that contains any amount 16 of cannabis or any derivative thereof is subject to the tax 17 under this Section on the full selling price of the product. 18 The Department may determine the selling price of the cannabis 19 when the seller and purchaser are affiliated persons, when the 20 sale and purchase of cannabis is not an arm's length 21 transaction, or when cannabis is transferred by a craft grower 22 to the craft grower's dispensing organization or infuser or 23 processing organization and a value is not established for the 24 cannabis. The value determined by the Department shall be 25 commensurate with the actual price received for products of HB0031 - 40 - LRB103 03544 CPF 48550 b HB0031- 41 -LRB103 03544 CPF 48550 b HB0031 - 41 - LRB103 03544 CPF 48550 b HB0031 - 41 - LRB103 03544 CPF 48550 b 1 like quality, character, and use in the area. If there are no 2 sales of cannabis of like quality, character, and use in the 3 same area, then the Department shall establish a reasonable 4 value based on sales of products of like quality, character, 5 and use in other areas of the State, taking into consideration 6 any other relevant factors. 7 (a-5) The tax imposed under this Article shall not be 8 assessed against or collected from any craft grower awarded a 9 craft grower license under this Act until 2 years after the 10 date that the license is awarded to the craft grower. 11 (b) The Cannabis Cultivation Privilege Tax imposed under 12 this Article is solely the responsibility of the cultivator 13 who makes the first sale and is not the responsibility of a 14 subsequent purchaser, a dispensing organization, or an 15 infuser. Persons subject to the tax imposed under this Article 16 may, however, reimburse themselves for their tax liability 17 hereunder by separately stating reimbursement for their tax 18 liability as an additional charge. 19 (c) The tax imposed under this Article shall be in 20 addition to all other occupation, privilege, or excise taxes 21 imposed by the State of Illinois or by any unit of local 22 government. 23 (Source: P.A. 101-27, eff. 6-25-19.) 24 Section 99. Effective date. This Act takes effect upon 25 becoming law. HB0031 - 41 - LRB103 03544 CPF 48550 b