IL
Illinois House Bill HB3499

Illinois 2023-2024 Regular Session

Illinois House Bill HB3499 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3499 Introduced , by Rep. Sonya M. Harper SYNOPSIS AS INTRODUCED: 410 ILCS 705/15-70410 ILCS 705/20-30 Amends the Cannabis Regulation and Tax Act. Provides that, notwithstanding any other provision of law, dispensing organizations and cultivation centers must have at least 40% of ancillary services required for their operation, including accounting, janitorial, and printing services, provided under contract with at least one business that has received certification under the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. LRB103 27239 CPF 53610 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3499 Introduced , by Rep. Sonya M. Harper SYNOPSIS AS INTRODUCED: 410 ILCS 705/15-70410 ILCS 705/20-30 410 ILCS 705/15-70 410 ILCS 705/20-30 Amends the Cannabis Regulation and Tax Act. Provides that, notwithstanding any other provision of law, dispensing organizations and cultivation centers must have at least 40% of ancillary services required for their operation, including accounting, janitorial, and printing services, provided under contract with at least one business that has received certification under the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. LRB103 27239 CPF 53610 b LRB103 27239 CPF 53610 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3499 Introduced , by Rep. Sonya M. Harper SYNOPSIS AS INTRODUCED:
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66 Amends the Cannabis Regulation and Tax Act. Provides that, notwithstanding any other provision of law, dispensing organizations and cultivation centers must have at least 40% of ancillary services required for their operation, including accounting, janitorial, and printing services, provided under contract with at least one business that has received certification under the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.
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1212 1 AN ACT concerning health.
1313 2 Be it enacted by the People of the State of Illinois,
1414 3 represented in the General Assembly:
1515 4 Section 5. The Cannabis Regulation and Tax Act is amended
1616 5 by changing Sections 15-70 and 20-30 as follows:
1717 6 (410 ILCS 705/15-70)
1818 7 Sec. 15-70. Operational requirements; prohibitions.
1919 8 (a) A dispensing organization shall operate in accordance
2020 9 with the representations made in its application and license
2121 10 materials. It shall be in compliance with this Act and rules.
2222 11 (b) A dispensing organization must include the legal name
2323 12 of the dispensary on the packaging of any cannabis product it
2424 13 sells.
2525 14 (c) All cannabis, cannabis-infused products, and cannabis
2626 15 seeds must be obtained from an Illinois registered adult use
2727 16 cultivation center, craft grower, infuser, or another
2828 17 dispensary.
2929 18 (d) Dispensing organizations are prohibited from selling
3030 19 any product containing alcohol except tinctures, which must be
3131 20 limited to containers that are no larger than 100 milliliters.
3232 21 (e) A dispensing organization shall inspect and count
3333 22 product received from a transporting organization, adult use
3434 23 cultivation center, craft grower, infuser organization, or
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4242 Amends the Cannabis Regulation and Tax Act. Provides that, notwithstanding any other provision of law, dispensing organizations and cultivation centers must have at least 40% of ancillary services required for their operation, including accounting, janitorial, and printing services, provided under contract with at least one business that has received certification under the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.
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7171 1 other dispensing organization before dispensing it.
7272 2 (f) A dispensing organization may only accept cannabis
7373 3 deliveries into a restricted access area. Deliveries may not
7474 4 be accepted through the public or limited access areas unless
7575 5 otherwise approved by the Department.
7676 6 (g) A dispensing organization shall maintain compliance
7777 7 with State and local building, fire, and zoning requirements
7878 8 or regulations.
7979 9 (h) A dispensing organization shall submit a list to the
8080 10 Department of the names of all service professionals that will
8181 11 work at the dispensary. The list shall include a description
8282 12 of the type of business or service provided. Changes to the
8383 13 service professional list shall be promptly provided. No
8484 14 service professional shall work in the dispensary until the
8585 15 name is provided to the Department on the service professional
8686 16 list.
8787 17 (i) A dispensing organization's license allows for a
8888 18 dispensary to be operated only at a single location.
8989 19 (j) A dispensary may operate between 6 a.m. and 10 p.m.
9090 20 local time.
9191 21 (k) A dispensing organization must keep all lighting
9292 22 outside and inside the dispensary in good working order and
9393 23 wattage sufficient for security cameras.
9494 24 (l) A dispensing organization must keep all air treatment
9595 25 systems that will be installed to reduce odors in good working
9696 26 order.
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107107 1 (m) A dispensing organization must contract with a private
108108 2 security contractor that is licensed under Section 10-5 of the
109109 3 Private Detective, Private Alarm, Private Security,
110110 4 Fingerprint Vendor, and Locksmith Act of 2004 to provide
111111 5 on-site security at all hours of the dispensary's operation.
112112 6 (n) A dispensing organization shall ensure that any
113113 7 building or equipment used by a dispensing organization for
114114 8 the storage or sale of cannabis is maintained in a clean and
115115 9 sanitary condition.
116116 10 (o) The dispensary shall be free from infestation by
117117 11 insects, rodents, or pests.
118118 12 (p) A dispensing organization shall not:
119119 13 (1) Produce or manufacture cannabis;
120120 14 (2) Accept a cannabis product from an adult use
121121 15 cultivation center, craft grower, infuser, dispensing
122122 16 organization, or transporting organization unless it is
123123 17 pre-packaged and labeled in accordance with this Act and
124124 18 any rules that may be adopted pursuant to this Act;
125125 19 (3) Obtain cannabis or cannabis-infused products from
126126 20 outside the State of Illinois;
127127 21 (4) Sell cannabis or cannabis-infused products to a
128128 22 purchaser unless the dispensing organization is licensed
129129 23 under the Compassionate Use of Medical Cannabis Program
130130 24 Act, and the individual is registered under the
131131 25 Compassionate Use of Medical Cannabis Program or the
132132 26 purchaser has been verified to be 21 years of age or older;
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143143 1 (5) Enter into an exclusive agreement with any adult
144144 2 use cultivation center, craft grower, or infuser.
145145 3 Dispensaries shall provide consumers an assortment of
146146 4 products from various cannabis business establishment
147147 5 licensees such that the inventory available for sale at
148148 6 any dispensary from any single cultivation center, craft
149149 7 grower, processor, transporter, or infuser entity shall
150150 8 not be more than 40% of the total inventory available for
151151 9 sale. For the purpose of this subsection, a cultivation
152152 10 center, craft grower, processor, or infuser shall be
153153 11 considered part of the same entity if the licensees share
154154 12 at least one principal officer. The Department may request
155155 13 that a dispensary diversify its products as needed or
156156 14 otherwise discipline a dispensing organization for
157157 15 violating this requirement;
158158 16 (6) Refuse to conduct business with an adult use
159159 17 cultivation center, craft grower, transporting
160160 18 organization, or infuser that has the ability to properly
161161 19 deliver the product and is permitted by the Department of
162162 20 Agriculture, on the same terms as other adult use
163163 21 cultivation centers, craft growers, infusers, or
164164 22 transporters with whom it is dealing;
165165 23 (7) Operate drive-through windows;
166166 24 (8) Allow for the dispensing of cannabis or
167167 25 cannabis-infused products in vending machines;
168168 26 (9) Transport cannabis to residences or other
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179179 1 locations where purchasers may be for delivery;
180180 2 (10) Enter into agreements to allow persons who are
181181 3 not dispensing organization agents to deliver cannabis or
182182 4 to transport cannabis to purchasers;
183183 5 (11) Operate a dispensary if its video surveillance
184184 6 equipment is inoperative;
185185 7 (12) Operate a dispensary if the point-of-sale
186186 8 equipment is inoperative;
187187 9 (13) Operate a dispensary if the State's cannabis
188188 10 electronic verification system is inoperative;
189189 11 (14) Have fewer than 2 people working at the
190190 12 dispensary at any time while the dispensary is open;
191191 13 (15) Be located within 1,500 feet of the property line
192192 14 of a pre-existing dispensing organization, unless the
193193 15 applicant is a Social Equity Applicant or Social Equity
194194 16 Justice Involved Applicant located or seeking to locate
195195 17 within 1,500 feet of a dispensing organization licensed
196196 18 under Section 15-15 or Section 15-20;
197197 19 (16) Sell clones or any other live plant material;
198198 20 (17) Sell cannabis, cannabis concentrate, or
199199 21 cannabis-infused products in combination or bundled with
200200 22 each other or any other items for one price, and each item
201201 23 of cannabis, concentrate, or cannabis-infused product must
202202 24 be separately identified by quantity and price on the
203203 25 receipt;
204204 26 (18) Violate any other requirements or prohibitions
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215215 1 set by Department rules.
216216 2 (q) It is unlawful for any person having an Early Approval
217217 3 Adult Use Cannabis Dispensing Organization License, a
218218 4 Conditional Adult Use Cannabis Dispensing Organization, an
219219 5 Adult Use Dispensing Organization License, or a medical
220220 6 cannabis dispensing organization license issued under the
221221 7 Compassionate Use of Medical Cannabis Program Act or any
222222 8 officer, associate, member, representative, or agent of such
223223 9 licensee to accept, receive, or borrow money or anything else
224224 10 of value or accept or receive credit (other than merchandising
225225 11 credit in the ordinary course of business for a period not to
226226 12 exceed 30 days) directly or indirectly from any adult use
227227 13 cultivation center, craft grower, infuser, or transporting
228228 14 organization in exchange for preferential placement on the
229229 15 dispensing organization's shelves, display cases, or website.
230230 16 This includes anything received or borrowed or from any
231231 17 stockholders, officers, agents, or persons connected with an
232232 18 adult use cultivation center, craft grower, infuser, or
233233 19 transporting organization.
234234 20 (r) It is unlawful for any person having an Early Approval
235235 21 Adult Use Cannabis Dispensing Organization License, a
236236 22 Conditional Adult Use Cannabis Dispensing Organization, an
237237 23 Adult Use Dispensing Organization License, or a medical
238238 24 cannabis dispensing organization license issued under the
239239 25 Compassionate Use of Medical Cannabis Program to enter into
240240 26 any contract with any person licensed to cultivate, process,
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251251 1 or transport cannabis whereby such dispensing organization
252252 2 agrees not to sell any cannabis cultivated, processed,
253253 3 transported, manufactured, or distributed by any other
254254 4 cultivator, transporter, or infuser, and any provision in any
255255 5 contract violative of this Section shall render the whole of
256256 6 such contract void and no action shall be brought thereon in
257257 7 any court.
258258 8 (s) Notwithstanding any other provision of law, a
259259 9 dispensing organization must have at least 40% of ancillary
260260 10 services required for its operation, including, but not
261261 11 limited to, accounting, janitorial, and printing services,
262262 12 provided under contract with at least one business that has
263263 13 received certification under the Business Enterprise for
264264 14 Minorities, Women, and Persons with Disabilities Act.
265265 15 In this subsection:
266266 16 "Business" has the same meaning as provided in Section 2
267267 17 of the Business Enterprise for Minorities, Women, and Persons
268268 18 with Disabilities Act.
269269 19 "Certification" has the same meaning as provided in
270270 20 Section 2 of the Business Enterprise for Minorities, Women,
271271 21 and Persons with Disabilities Act.
272272 22 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
273273 23 102-98, eff. 7-15-21.)
274274 24 (410 ILCS 705/20-30)
275275 25 Sec. 20-30. Cultivation center requirements; prohibitions.
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286286 1 (a) The operating documents of a cultivation center shall
287287 2 include procedures for the oversight of the cultivation
288288 3 center, a cannabis plant monitoring system including a
289289 4 physical inventory recorded weekly, accurate recordkeeping,
290290 5 and a staffing plan.
291291 6 (b) A cultivation center shall implement a security plan
292292 7 reviewed by the Illinois State Police that includes, but is
293293 8 not limited to: facility access controls, perimeter intrusion
294294 9 detection systems, personnel identification systems, 24-hour
295295 10 surveillance system to monitor the interior and exterior of
296296 11 the cultivation center facility and accessibility to
297297 12 authorized law enforcement, the Department of Public Health
298298 13 where processing takes place, and the Department of
299299 14 Agriculture in real time.
300300 15 (c) All cultivation of cannabis by a cultivation center
301301 16 must take place in an enclosed, locked facility at the
302302 17 physical address provided to the Department of Agriculture
303303 18 during the licensing process. The cultivation center location
304304 19 shall only be accessed by the agents working for the
305305 20 cultivation center, the Department of Agriculture staff
306306 21 performing inspections, the Department of Public Health staff
307307 22 performing inspections, local and State law enforcement or
308308 23 other emergency personnel, contractors working on jobs
309309 24 unrelated to cannabis, such as installing or maintaining
310310 25 security devices or performing electrical wiring, transporting
311311 26 organization agents as provided in this Act, individuals in a
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322322 1 mentoring or educational program approved by the State, or
323323 2 other individuals as provided by rule.
324324 3 (d) A cultivation center may not sell or distribute any
325325 4 cannabis or cannabis-infused products to any person other than
326326 5 a dispensing organization, craft grower, infuser organization,
327327 6 transporter, or as otherwise authorized by rule.
328328 7 (e) A cultivation center may not either directly or
329329 8 indirectly discriminate in price between different dispensing
330330 9 organizations, craft growers, or infuser organizations that
331331 10 are purchasing a like grade, strain, brand, and quality of
332332 11 cannabis or cannabis-infused product. Nothing in this
333333 12 subsection (e) prevents a cultivation center from pricing
334334 13 cannabis differently based on differences in the cost of
335335 14 manufacturing or processing, the quantities sold, such as
336336 15 volume discounts, or the way the products are delivered.
337337 16 (f) All cannabis harvested by a cultivation center and
338338 17 intended for distribution to a dispensing organization must be
339339 18 entered into a data collection system, packaged and labeled
340340 19 under Section 55-21, and placed into a cannabis container for
341341 20 transport. All cannabis harvested by a cultivation center and
342342 21 intended for distribution to a craft grower or infuser
343343 22 organization must be packaged in a labeled cannabis container
344344 23 and entered into a data collection system before transport.
345345 24 (g) Cultivation centers are subject to random inspections
346346 25 by the Department of Agriculture, the Department of Public
347347 26 Health, local safety or health inspectors, the Illinois State
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358358 1 Police, or as provided by rule.
359359 2 (h) A cultivation center agent shall notify local law
360360 3 enforcement, the Illinois State Police, and the Department of
361361 4 Agriculture within 24 hours of the discovery of any loss or
362362 5 theft. Notification shall be made by phone or in person, or by
363363 6 written or electronic communication.
364364 7 (i) A cultivation center shall comply with all State and
365365 8 any applicable federal rules and regulations regarding the use
366366 9 of pesticides on cannabis plants.
367367 10 (j) No person or entity shall hold any legal, equitable,
368368 11 ownership, or beneficial interest, directly or indirectly, of
369369 12 more than 3 cultivation centers licensed under this Article.
370370 13 Further, no person or entity that is employed by, an agent of,
371371 14 has a contract to receive payment in any form from a
372372 15 cultivation center, is a principal officer of a cultivation
373373 16 center, or entity controlled by or affiliated with a principal
374374 17 officer of a cultivation shall hold any legal, equitable,
375375 18 ownership, or beneficial interest, directly or indirectly, in
376376 19 a cultivation that would result in the person or entity owning
377377 20 or controlling in combination with any cultivation center,
378378 21 principal officer of a cultivation center, or entity
379379 22 controlled or affiliated with a principal officer of a
380380 23 cultivation center by which he, she, or it is employed, is an
381381 24 agent of, or participates in the management of, more than 3
382382 25 cultivation center licenses.
383383 26 (k) A cultivation center may not contain more than 210,000
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394394 1 square feet of canopy space for plants in the flowering stage
395395 2 for cultivation of adult use cannabis as provided in this Act.
396396 3 (l) A cultivation center may process cannabis, cannabis
397397 4 concentrates, and cannabis-infused products.
398398 5 (m) Beginning July 1, 2020, a cultivation center shall not
399399 6 transport cannabis or cannabis-infused products to a craft
400400 7 grower, dispensing organization, infuser organization, or
401401 8 laboratory licensed under this Act, unless it has obtained a
402402 9 transporting organization license.
403403 10 (n) It is unlawful for any person having a cultivation
404404 11 center license or any officer, associate, member,
405405 12 representative, or agent of such licensee to offer or deliver
406406 13 money, or anything else of value, directly or indirectly to
407407 14 any person having an Early Approval Adult Use Dispensing
408408 15 Organization License, a Conditional Adult Use Dispensing
409409 16 Organization License, an Adult Use Dispensing Organization
410410 17 License, or a medical cannabis dispensing organization license
411411 18 issued under the Compassionate Use of Medical Cannabis Program
412412 19 Act, or to any person connected with or in any way
413413 20 representing, or to any member of the family of, such person
414414 21 holding an Early Approval Adult Use Dispensing Organization
415415 22 License, a Conditional Adult Use Dispensing Organization
416416 23 License, an Adult Use Dispensing Organization License, or a
417417 24 medical cannabis dispensing organization license issued under
418418 25 the Compassionate Use of Medical Cannabis Program Act, or to
419419 26 any stockholders in any corporation engaged in the retail sale
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430430 1 of cannabis, or to any officer, manager, agent, or
431431 2 representative of the Early Approval Adult Use Dispensing
432432 3 Organization License, a Conditional Adult Use Dispensing
433433 4 Organization License, an Adult Use Dispensing Organization
434434 5 License, or a medical cannabis dispensing organization license
435435 6 issued under the Compassionate Use of Medical Cannabis Program
436436 7 Act to obtain preferential placement within the dispensing
437437 8 organization, including, without limitation, on shelves and in
438438 9 display cases where purchasers can view products, or on the
439439 10 dispensing organization's website.
440440 11 (o) A cultivation center must comply with any other
441441 12 requirements or prohibitions set by administrative rule of the
442442 13 Department of Agriculture.
443443 14 (p) Notwithstanding any other provision of law, a
444444 15 cultivation center must have at least 40% of ancillary
445445 16 services required for its operation, including, but not
446446 17 limited to, accounting, janitorial, and printing services,
447447 18 provided under contract with at least one business that has
448448 19 received certification under the Business Enterprise for
449449 20 Minorities, Women, and Persons with Disabilities Act.
450450 21 In this subsection:
451451 22 "Business" has the same meaning as provided in Section 2
452452 23 of the Business Enterprise for Minorities, Women, and Persons
453453 24 with Disabilities Act.
454454 25 "Certification" has the same meaning as provided in
455455 26 Section 2 of the Business Enterprise for Minorities, Women,
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466466 1 and Persons with Disabilities Act.
467467 2 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
468468 3 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
469469 4 5-13-22.)
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