Illinois 2023-2024 Regular Session

Illinois House Bill HB5562 Compare Versions

Only one version of the bill is available at this time.
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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5562 Introduced 2/9/2024, by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED: 410 ILCS 705/1-10410 ILCS 705/7-10410 ILCS 705/7-15410 ILCS 705/55-30 Amends the Cannabis Regulation and Tax Act. Provides that the Cannabis Business Development Fund may be used to provide financial assistance that supports lending to or private investment in qualified Social Equity Applicants and Social Equity Lottery Licensees or facilitates access to the facilities needed to commence operations on a cannabis business establishment. Provides that the Department of Commerce and Economic Opportunity may enter into financial agreements to facilitate lending to or investment in qualified Social Equity Applicants or Social Equity Lottery Licensees, or their subsidiaries or affiliates, to ensure the availability of facilities necessary to operate a cannabis business establishment. Provides that notwithstanding anything in the confidentiality provisions of the Act to the contrary, the Department of Financial and Professional Regulation and the Department of Agriculture may share licensee information with the Department of Commerce and Economic Opportunity necessary to support the administration of Social Equity programming. LRB103 39472 RLC 69666 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5562 Introduced 2/9/2024, by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED: 410 ILCS 705/1-10410 ILCS 705/7-10410 ILCS 705/7-15410 ILCS 705/55-30 410 ILCS 705/1-10 410 ILCS 705/7-10 410 ILCS 705/7-15 410 ILCS 705/55-30 Amends the Cannabis Regulation and Tax Act. Provides that the Cannabis Business Development Fund may be used to provide financial assistance that supports lending to or private investment in qualified Social Equity Applicants and Social Equity Lottery Licensees or facilitates access to the facilities needed to commence operations on a cannabis business establishment. Provides that the Department of Commerce and Economic Opportunity may enter into financial agreements to facilitate lending to or investment in qualified Social Equity Applicants or Social Equity Lottery Licensees, or their subsidiaries or affiliates, to ensure the availability of facilities necessary to operate a cannabis business establishment. Provides that notwithstanding anything in the confidentiality provisions of the Act to the contrary, the Department of Financial and Professional Regulation and the Department of Agriculture may share licensee information with the Department of Commerce and Economic Opportunity necessary to support the administration of Social Equity programming. LRB103 39472 RLC 69666 b LRB103 39472 RLC 69666 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5562 Introduced 2/9/2024, by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED:
33 410 ILCS 705/1-10410 ILCS 705/7-10410 ILCS 705/7-15410 ILCS 705/55-30 410 ILCS 705/1-10 410 ILCS 705/7-10 410 ILCS 705/7-15 410 ILCS 705/55-30
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88 Amends the Cannabis Regulation and Tax Act. Provides that the Cannabis Business Development Fund may be used to provide financial assistance that supports lending to or private investment in qualified Social Equity Applicants and Social Equity Lottery Licensees or facilitates access to the facilities needed to commence operations on a cannabis business establishment. Provides that the Department of Commerce and Economic Opportunity may enter into financial agreements to facilitate lending to or investment in qualified Social Equity Applicants or Social Equity Lottery Licensees, or their subsidiaries or affiliates, to ensure the availability of facilities necessary to operate a cannabis business establishment. Provides that notwithstanding anything in the confidentiality provisions of the Act to the contrary, the Department of Financial and Professional Regulation and the Department of Agriculture may share licensee information with the Department of Commerce and Economic Opportunity necessary to support the administration of Social Equity programming.
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1414 1 AN ACT concerning health.
1515 2 Be it enacted by the People of the State of Illinois,
1616 3 represented in the General Assembly:
1717 4 Section 5. The Cannabis Regulation and Tax Act is amended
1818 5 by changing Sections 1-10, 7-10, 7-15, and 55-30 as follows:
1919 6 (410 ILCS 705/1-10)
2020 7 Sec. 1-10. Definitions. In this Act:
2121 8 "Adult Use Cultivation Center License" means a license
2222 9 issued by the Department of Agriculture that permits a person
2323 10 to act as a cultivation center under this Act and any
2424 11 administrative rule made in furtherance of this Act.
2525 12 "Adult Use Dispensing Organization License" means a
2626 13 license issued by the Department of Financial and Professional
2727 14 Regulation that permits a person to act as a dispensing
2828 15 organization under this Act and any administrative rule made
2929 16 in furtherance of this Act.
3030 17 "Advertise" means to engage in promotional activities
3131 18 including, but not limited to: newspaper, radio, Internet and
3232 19 electronic media, and television advertising; the distribution
3333 20 of fliers and circulars; billboard advertising; and the
3434 21 display of window and interior signs. "Advertise" does not
3535 22 mean exterior signage displaying only the name of the licensed
3636 23 cannabis business establishment.
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4040 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5562 Introduced 2/9/2024, by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED:
4141 410 ILCS 705/1-10410 ILCS 705/7-10410 ILCS 705/7-15410 ILCS 705/55-30 410 ILCS 705/1-10 410 ILCS 705/7-10 410 ILCS 705/7-15 410 ILCS 705/55-30
4242 410 ILCS 705/1-10
4343 410 ILCS 705/7-10
4444 410 ILCS 705/7-15
4545 410 ILCS 705/55-30
4646 Amends the Cannabis Regulation and Tax Act. Provides that the Cannabis Business Development Fund may be used to provide financial assistance that supports lending to or private investment in qualified Social Equity Applicants and Social Equity Lottery Licensees or facilitates access to the facilities needed to commence operations on a cannabis business establishment. Provides that the Department of Commerce and Economic Opportunity may enter into financial agreements to facilitate lending to or investment in qualified Social Equity Applicants or Social Equity Lottery Licensees, or their subsidiaries or affiliates, to ensure the availability of facilities necessary to operate a cannabis business establishment. Provides that notwithstanding anything in the confidentiality provisions of the Act to the contrary, the Department of Financial and Professional Regulation and the Department of Agriculture may share licensee information with the Department of Commerce and Economic Opportunity necessary to support the administration of Social Equity programming.
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7777 1 "Application points" means the number of points a
7878 2 Dispensary Applicant receives on an application for a
7979 3 Conditional Adult Use Dispensing Organization License.
8080 4 "BLS Region" means a region in Illinois used by the United
8181 5 States Bureau of Labor Statistics to gather and categorize
8282 6 certain employment and wage data. The 17 such regions in
8383 7 Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
8484 8 Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
8585 9 Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
8686 10 Rockford, St. Louis, Springfield, Northwest Illinois
8787 11 nonmetropolitan area, West Central Illinois nonmetropolitan
8888 12 area, East Central Illinois nonmetropolitan area, and South
8989 13 Illinois nonmetropolitan area.
9090 14 "By lot" means a randomized method of choosing between 2
9191 15 or more Eligible Tied Applicants or 2 or more Qualifying
9292 16 Applicants.
9393 17 "Cannabis" means marijuana, hashish, and other substances
9494 18 that are identified as including any parts of the plant
9595 19 Cannabis sativa and including derivatives or subspecies, such
9696 20 as indica, of all strains of cannabis, whether growing or not;
9797 21 the seeds thereof, the resin extracted from any part of the
9898 22 plant; and any compound, manufacture, salt, derivative,
9999 23 mixture, or preparation of the plant, its seeds, or resin,
100100 24 including tetrahydrocannabinol (THC) and all other naturally
101101 25 produced cannabinol derivatives, whether produced directly or
102102 26 indirectly by extraction; however, "cannabis" does not include
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113113 1 the mature stalks of the plant, fiber produced from the
114114 2 stalks, oil or cake made from the seeds of the plant, any other
115115 3 compound, manufacture, salt, derivative, mixture, or
116116 4 preparation of the mature stalks (except the resin extracted
117117 5 from it), fiber, oil or cake, or the sterilized seed of the
118118 6 plant that is incapable of germination. "Cannabis" does not
119119 7 include industrial hemp as defined and authorized under the
120120 8 Industrial Hemp Act. "Cannabis" also means cannabis flower,
121121 9 concentrate, and cannabis-infused products.
122122 10 "Cannabis business establishment" means a cultivation
123123 11 center, craft grower, processing organization, infuser
124124 12 organization, dispensing organization, or transporting
125125 13 organization.
126126 14 "Cannabis concentrate" means a product derived from
127127 15 cannabis that is produced by extracting cannabinoids,
128128 16 including tetrahydrocannabinol (THC), from the plant through
129129 17 the use of propylene glycol, glycerin, butter, olive oil, or
130130 18 other typical cooking fats; water, ice, or dry ice; or butane,
131131 19 propane, CO2, ethanol, or isopropanol and with the intended
132132 20 use of smoking or making a cannabis-infused product. The use
133133 21 of any other solvent is expressly prohibited unless and until
134134 22 it is approved by the Department of Agriculture.
135135 23 "Cannabis container" means a sealed or resealable,
136136 24 traceable, container, or package used for the purpose of
137137 25 containment of cannabis or cannabis-infused product during
138138 26 transportation.
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149149 1 "Cannabis flower" means marijuana, hashish, and other
150150 2 substances that are identified as including any parts of the
151151 3 plant Cannabis sativa and including derivatives or subspecies,
152152 4 such as indica, of all strains of cannabis; including raw
153153 5 kief, leaves, and buds, but not resin that has been extracted
154154 6 from any part of such plant; nor any compound, manufacture,
155155 7 salt, derivative, mixture, or preparation of such plant, its
156156 8 seeds, or resin.
157157 9 "Cannabis-infused product" means a beverage, food, oil,
158158 10 ointment, tincture, topical formulation, or another product
159159 11 containing cannabis or cannabis concentrate that is not
160160 12 intended to be smoked.
161161 13 "Cannabis paraphernalia" means equipment, products, or
162162 14 materials intended to be used for planting, propagating,
163163 15 cultivating, growing, harvesting, manufacturing, producing,
164164 16 processing, preparing, testing, analyzing, packaging,
165165 17 repackaging, storing, containing, concealing, ingesting, or
166166 18 otherwise introducing cannabis into the human body.
167167 19 "Cannabis plant monitoring system" or "plant monitoring
168168 20 system" means a system that includes, but is not limited to,
169169 21 testing and data collection established and maintained by the
170170 22 cultivation center, craft grower, or processing organization
171171 23 and that is available to the Department of Revenue, the
172172 24 Department of Agriculture, the Department of Financial and
173173 25 Professional Regulation, and the Illinois State Police for the
174174 26 purposes of documenting each cannabis plant and monitoring
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185185 1 plant development throughout the life cycle of a cannabis
186186 2 plant cultivated for the intended use by a customer from seed
187187 3 planting to final packaging.
188188 4 "Cannabis testing facility" means an entity registered by
189189 5 the Department of Agriculture to test cannabis for potency and
190190 6 contaminants.
191191 7 "Clone" means a plant section from a female cannabis plant
192192 8 not yet rootbound, growing in a water solution or other
193193 9 propagation matrix, that is capable of developing into a new
194194 10 plant.
195195 11 "Community College Cannabis Vocational Training Pilot
196196 12 Program faculty participant" means a person who is 21 years of
197197 13 age or older, licensed by the Department of Agriculture, and
198198 14 is employed or contracted by an Illinois community college to
199199 15 provide student instruction using cannabis plants at an
200200 16 Illinois Community College.
201201 17 "Community College Cannabis Vocational Training Pilot
202202 18 Program faculty participant Agent Identification Card" means a
203203 19 document issued by the Department of Agriculture that
204204 20 identifies a person as a Community College Cannabis Vocational
205205 21 Training Pilot Program faculty participant.
206206 22 "Conditional Adult Use Dispensing Organization License"
207207 23 means a contingent license awarded to applicants for an Adult
208208 24 Use Dispensing Organization License that reserves the right to
209209 25 an Adult Use Dispensing Organization License if the applicant
210210 26 meets certain conditions described in this Act, but does not
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221221 1 entitle the recipient to begin purchasing or selling cannabis
222222 2 or cannabis-infused products.
223223 3 "Conditional Adult Use Cultivation Center License" means a
224224 4 license awarded to top-scoring applicants for an Adult Use
225225 5 Cultivation Center License that reserves the right to an Adult
226226 6 Use Cultivation Center License if the applicant meets certain
227227 7 conditions as determined by the Department of Agriculture by
228228 8 rule, but does not entitle the recipient to begin growing,
229229 9 processing, or selling cannabis or cannabis-infused products.
230230 10 "Craft grower" means a facility operated by an
231231 11 organization or business that is licensed by the Department of
232232 12 Agriculture to cultivate, dry, cure, and package cannabis and
233233 13 perform other necessary activities to make cannabis available
234234 14 for sale at a dispensing organization or use at a processing
235235 15 organization. A craft grower may contain up to 5,000 square
236236 16 feet of canopy space on its premises for plants in the
237237 17 flowering state. The Department of Agriculture may authorize
238238 18 an increase or decrease of flowering stage cultivation space
239239 19 in increments of 3,000 square feet by rule based on market
240240 20 need, craft grower capacity, and the licensee's history of
241241 21 compliance or noncompliance, with a maximum space of 14,000
242242 22 square feet for cultivating plants in the flowering stage,
243243 23 which must be cultivated in all stages of growth in an enclosed
244244 24 and secure area. A craft grower may share premises with a
245245 25 processing organization or a dispensing organization, or both,
246246 26 provided each licensee stores currency and cannabis or
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257257 1 cannabis-infused products in a separate secured vault to which
258258 2 the other licensee does not have access or all licensees
259259 3 sharing a vault share more than 50% of the same ownership.
260260 4 "Craft grower agent" means a principal officer, board
261261 5 member, employee, or other agent of a craft grower who is 21
262262 6 years of age or older.
263263 7 "Craft Grower Agent Identification Card" means a document
264264 8 issued by the Department of Agriculture that identifies a
265265 9 person as a craft grower agent.
266266 10 "Cultivation center" means a facility operated by an
267267 11 organization or business that is licensed by the Department of
268268 12 Agriculture to cultivate, process, transport (unless otherwise
269269 13 limited by this Act), and perform other necessary activities
270270 14 to provide cannabis and cannabis-infused products to cannabis
271271 15 business establishments.
272272 16 "Cultivation center agent" means a principal officer,
273273 17 board member, employee, or other agent of a cultivation center
274274 18 who is 21 years of age or older.
275275 19 "Cultivation Center Agent Identification Card" means a
276276 20 document issued by the Department of Agriculture that
277277 21 identifies a person as a cultivation center agent.
278278 22 "Currency" means currency and coin of the United States.
279279 23 "Dispensary" means a facility operated by a dispensing
280280 24 organization at which activities licensed by this Act may
281281 25 occur.
282282 26 "Dispensary Applicant" means the Proposed Dispensing
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293293 1 Organization Name as stated on an application for a
294294 2 Conditional Adult Use Dispensing Organization License.
295295 3 "Dispensing organization" means a facility operated by an
296296 4 organization or business that is licensed by the Department of
297297 5 Financial and Professional Regulation to acquire cannabis from
298298 6 a cultivation center, craft grower, processing organization,
299299 7 or another dispensary for the purpose of selling or dispensing
300300 8 cannabis, cannabis-infused products, cannabis seeds,
301301 9 paraphernalia, or related supplies under this Act to
302302 10 purchasers or to qualified registered medical cannabis
303303 11 patients and caregivers. As used in this Act, "dispensing
304304 12 organization" includes a registered medical cannabis
305305 13 organization as defined in the Compassionate Use of Medical
306306 14 Cannabis Program Act or its successor Act that has obtained an
307307 15 Early Approval Adult Use Dispensing Organization License.
308308 16 "Dispensing organization agent" means a principal officer,
309309 17 employee, or agent of a dispensing organization who is 21
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311311 19 "Dispensing organization agent identification card" means
312312 20 a document issued by the Department of Financial and
313313 21 Professional Regulation that identifies a person as a
314314 22 dispensing organization agent.
315315 23 "Disproportionately Impacted Area" means a census tract or
316316 24 comparable geographic area that satisfies the following
317317 25 criteria as determined by the Department of Commerce and
318318 26 Economic Opportunity, that:
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329329 1 (1) meets at least one of the following criteria:
330330 2 (A) the area has a poverty rate of at least 20%
331331 3 according to the latest federal decennial census; or
332332 4 (B) 75% or more of the children in the area
333333 5 participate in the federal free lunch program
334334 6 according to reported statistics from the State Board
335335 7 of Education; or
336336 8 (C) at least 20% of the households in the area
337337 9 receive assistance under the Supplemental Nutrition
338338 10 Assistance Program; or
339339 11 (D) the area has an average unemployment rate, as
340340 12 determined by the Illinois Department of Employment
341341 13 Security, that is more than 120% of the national
342342 14 unemployment average, as determined by the United
343343 15 States Department of Labor, for a period of at least 2
344344 16 consecutive calendar years preceding the date of the
345345 17 application; and
346346 18 (2) has high rates of arrest, conviction, and
347347 19 incarceration related to the sale, possession, use,
348348 20 cultivation, manufacture, or transport of cannabis.
349349 21 "Early Approval Adult Use Cultivation Center License"
350350 22 means a license that permits a medical cannabis cultivation
351351 23 center licensed under the Compassionate Use of Medical
352352 24 Cannabis Program Act as of the effective date of this Act to
353353 25 begin cultivating, infusing, packaging, transporting (unless
354354 26 otherwise provided in this Act), processing, and selling
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365365 1 cannabis or cannabis-infused product to cannabis business
366366 2 establishments for resale to purchasers as permitted by this
367367 3 Act as of January 1, 2020.
368368 4 "Early Approval Adult Use Dispensing Organization License"
369369 5 means a license that permits a medical cannabis dispensing
370370 6 organization licensed under the Compassionate Use of Medical
371371 7 Cannabis Program Act as of the effective date of this Act to
372372 8 begin selling cannabis or cannabis-infused product to
373373 9 purchasers as permitted by this Act as of January 1, 2020.
374374 10 "Early Approval Adult Use Dispensing Organization at a
375375 11 secondary site" means a license that permits a medical
376376 12 cannabis dispensing organization licensed under the
377377 13 Compassionate Use of Medical Cannabis Program Act as of the
378378 14 effective date of this Act to begin selling cannabis or
379379 15 cannabis-infused product to purchasers as permitted by this
380380 16 Act on January 1, 2020 at a different dispensary location from
381381 17 its existing registered medical dispensary location.
382382 18 "Eligible Tied Applicant" means a Tied Applicant that is
383383 19 eligible to participate in the process by which a remaining
384384 20 available license is distributed by lot pursuant to a Tied
385385 21 Applicant Lottery.
386386 22 "Enclosed, locked facility" means a room, greenhouse,
387387 23 building, or other enclosed area equipped with locks or other
388388 24 security devices that permit access only by cannabis business
389389 25 establishment agents working for the licensed cannabis
390390 26 business establishment or acting pursuant to this Act to
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401401 1 cultivate, process, store, or distribute cannabis.
402402 2 "Enclosed, locked space" means a closet, room, greenhouse,
403403 3 building, or other enclosed area equipped with locks or other
404404 4 security devices that permit access only by authorized
405405 5 individuals under this Act. "Enclosed, locked space" may
406406 6 include:
407407 7 (1) a space within a residential building that (i) is
408408 8 the primary residence of the individual cultivating 5 or
409409 9 fewer cannabis plants that are more than 5 inches tall and
410410 10 (ii) includes sleeping quarters and indoor plumbing. The
411411 11 space must only be accessible by a key or code that is
412412 12 different from any key or code that can be used to access
413413 13 the residential building from the exterior; or
414414 14 (2) a structure, such as a shed or greenhouse, that
415415 15 lies on the same plot of land as a residential building
416416 16 that (i) includes sleeping quarters and indoor plumbing
417417 17 and (ii) is used as a primary residence by the person
418418 18 cultivating 5 or fewer cannabis plants that are more than
419419 19 5 inches tall, such as a shed or greenhouse. The structure
420420 20 must remain locked when it is unoccupied by people.
421421 21 "Financial institution" has the same meaning as "financial
422422 22 organization" as defined in Section 1501 of the Illinois
423423 23 Income Tax Act, and also includes the holding companies,
424424 24 subsidiaries, and affiliates of such financial organizations.
425425 25 "Flowering stage" means the stage of cultivation where and
426426 26 when a cannabis plant is cultivated to produce plant material
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437437 1 for cannabis products. This includes mature plants as follows:
438438 2 (1) if greater than 2 stigmas are visible at each
439439 3 internode of the plant; or
440440 4 (2) if the cannabis plant is in an area that has been
441441 5 intentionally deprived of light for a period of time
442442 6 intended to produce flower buds and induce maturation,
443443 7 from the moment the light deprivation began through the
444444 8 remainder of the marijuana plant growth cycle.
445445 9 "Individual" means a natural person.
446446 10 "Infuser organization" or "infuser" means a facility
447447 11 operated by an organization or business that is licensed by
448448 12 the Department of Agriculture to directly incorporate cannabis
449449 13 or cannabis concentrate into a product formulation to produce
450450 14 a cannabis-infused product.
451451 15 "Kief" means the resinous crystal-like trichomes that are
452452 16 found on cannabis and that are accumulated, resulting in a
453453 17 higher concentration of cannabinoids, untreated by heat or
454454 18 pressure, or extracted using a solvent.
455455 19 "Labor peace agreement" means an agreement between a
456456 20 cannabis business establishment and any labor organization
457457 21 recognized under the National Labor Relations Act, referred to
458458 22 in this Act as a bona fide labor organization, that prohibits
459459 23 labor organizations and members from engaging in picketing,
460460 24 work stoppages, boycotts, and any other economic interference
461461 25 with the cannabis business establishment. This agreement means
462462 26 that the cannabis business establishment has agreed not to
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473473 1 disrupt efforts by the bona fide labor organization to
474474 2 communicate with, and attempt to organize and represent, the
475475 3 cannabis business establishment's employees. The agreement
476476 4 shall provide a bona fide labor organization access at
477477 5 reasonable times to areas in which the cannabis business
478478 6 establishment's employees work, for the purpose of meeting
479479 7 with employees to discuss their right to representation,
480480 8 employment rights under State law, and terms and conditions of
481481 9 employment. This type of agreement shall not mandate a
482482 10 particular method of election or certification of the bona
483483 11 fide labor organization.
484484 12 "Limited access area" means a room or other area under the
485485 13 control of a cannabis dispensing organization licensed under
486486 14 this Act and upon the licensed premises where cannabis sales
487487 15 occur with access limited to purchasers, dispensing
488488 16 organization owners and other dispensing organization agents,
489489 17 or service professionals conducting business with the
490490 18 dispensing organization, or, if sales to registered qualifying
491491 19 patients, caregivers, provisional patients, and Opioid
492492 20 Alternative Pilot Program participants licensed pursuant to
493493 21 the Compassionate Use of Medical Cannabis Program Act are also
494494 22 permitted at the dispensary, registered qualifying patients,
495495 23 caregivers, provisional patients, and Opioid Alternative Pilot
496496 24 Program participants.
497497 25 "Member of an impacted family" means an individual who has
498498 26 a parent, legal guardian, child, spouse, or dependent, or was
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509509 1 a dependent of an individual who, prior to the effective date
510510 2 of this Act, was arrested for, convicted of, or adjudicated
511511 3 delinquent for any offense that is eligible for expungement
512512 4 under this Act.
513513 5 "Mother plant" means a cannabis plant that is cultivated
514514 6 or maintained for the purpose of generating clones, and that
515515 7 will not be used to produce plant material for sale to an
516516 8 infuser or dispensing organization.
517517 9 "Ordinary public view" means within the sight line with
518518 10 normal visual range of a person, unassisted by visual aids,
519519 11 from a public street or sidewalk adjacent to real property, or
520520 12 from within an adjacent property.
521521 13 "Ownership and control" means ownership of at least 51% of
522522 14 the business, including corporate stock if a corporation, and
523523 15 control over the management and day-to-day operations of the
524524 16 business and an interest in the capital, assets, and profits
525525 17 and losses of the business proportionate to percentage of
526526 18 ownership.
527527 19 "Person" means a natural individual, firm, partnership,
528528 20 association, joint stock company, joint venture, public or
529529 21 private corporation, limited liability company, or a receiver,
530530 22 executor, trustee, guardian, or other representative appointed
531531 23 by order of any court.
532532 24 "Possession limit" means the amount of cannabis under
533533 25 Section 10-10 that may be possessed at any one time by a person
534534 26 21 years of age or older or who is a registered qualifying
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545545 1 medical cannabis patient or caregiver under the Compassionate
546546 2 Use of Medical Cannabis Program Act.
547547 3 "Principal officer" includes a cannabis business
548548 4 establishment applicant or licensed cannabis business
549549 5 establishment's board member, owner with more than 1% interest
550550 6 of the total cannabis business establishment or more than 5%
551551 7 interest of the total cannabis business establishment of a
552552 8 publicly traded company, president, vice president, secretary,
553553 9 treasurer, partner, officer, member, manager member, or person
554554 10 with a profit sharing, financial interest, or revenue sharing
555555 11 arrangement. The definition includes a person with authority
556556 12 to control the cannabis business establishment, a person who
557557 13 assumes responsibility for the debts of the cannabis business
558558 14 establishment and who is further defined in this Act.
559559 15 "Primary residence" means a dwelling where a person
560560 16 usually stays or stays more often than other locations. It may
561561 17 be determined by, without limitation, presence, tax filings;
562562 18 address on an Illinois driver's license, an Illinois
563563 19 Identification Card, or an Illinois Person with a Disability
564564 20 Identification Card; or voter registration. No person may have
565565 21 more than one primary residence.
566566 22 "Processing organization" or "processor" means a facility
567567 23 operated by an organization or business that is licensed by
568568 24 the Department of Agriculture to either extract constituent
569569 25 chemicals or compounds to produce cannabis concentrate or
570570 26 incorporate cannabis or cannabis concentrate into a product
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581581 1 formulation to produce a cannabis product.
582582 2 "Processing organization agent" means a principal officer,
583583 3 board member, employee, or agent of a processing organization.
584584 4 "Processing organization agent identification card" means
585585 5 a document issued by the Department of Agriculture that
586586 6 identifies a person as a processing organization agent.
587587 7 "Purchaser" means a person 21 years of age or older who
588588 8 acquires cannabis for a valuable consideration. "Purchaser"
589589 9 does not include a cardholder under the Compassionate Use of
590590 10 Medical Cannabis Program Act.
591591 11 "Qualifying Applicant" means an applicant that submitted
592592 12 an application pursuant to Section 15-30 that received at
593593 13 least 85% of 250 application points available under Section
594594 14 15-30 as the applicant's final score and meets the definition
595595 15 of "Social Equity Applicant" as set forth under this Section.
596596 16 "Qualifying Social Equity Justice Involved Applicant"
597597 17 means an applicant that submitted an application pursuant to
598598 18 Section 15-30 that received at least 85% of 250 application
599599 19 points available under Section 15-30 as the applicant's final
600600 20 score and meets the criteria of either paragraph (1) or (2) of
601601 21 the definition of "Social Equity Applicant" as set forth under
602602 22 this Section.
603603 23 "Qualified Social Equity Applicant" means a Social Equity
604604 24 Applicant who has been awarded a conditional license under
605605 25 this Act to operate a cannabis business establishment.
606606 26 "Resided" means an individual's primary residence was
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617617 1 located within the relevant geographic area as established by
618618 2 2 of the following:
619619 3 (1) a signed lease agreement that includes the
620620 4 applicant's name;
621621 5 (2) a property deed that includes the applicant's
622622 6 name;
623623 7 (3) school records;
624624 8 (4) a voter registration card;
625625 9 (5) an Illinois driver's license, an Illinois
626626 10 Identification Card, or an Illinois Person with a
627627 11 Disability Identification Card;
628628 12 (6) a paycheck stub;
629629 13 (7) a utility bill;
630630 14 (8) tax records; or
631631 15 (9) any other proof of residency or other information
632632 16 necessary to establish residence as provided by rule.
633633 17 "Smoking" means the inhalation of smoke caused by the
634634 18 combustion of cannabis.
635635 19 "Social Equity Applicant" means an applicant that is an
636636 20 Illinois resident that meets one of the following criteria:
637637 21 (1) an applicant with at least 51% ownership and
638638 22 control by one or more individuals who have resided for at
639639 23 least 5 of the preceding 10 years in a Disproportionately
640640 24 Impacted Area;
641641 25 (2) an applicant with at least 51% ownership and
642642 26 control by one or more individuals who:
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653653 1 (i) have been arrested for, convicted of, or
654654 2 adjudicated delinquent for any offense that is
655655 3 eligible for expungement under this Act; or
656656 4 (ii) is a member of an impacted family;
657657 5 (3) for applicants with a minimum of 10 full-time
658658 6 employees, an applicant with at least 51% of current
659659 7 employees who:
660660 8 (i) currently reside in a Disproportionately
661661 9 Impacted Area; or
662662 10 (ii) have been arrested for, convicted of, or
663663 11 adjudicated delinquent for any offense that is
664664 12 eligible for expungement under this Act or member of
665665 13 an impacted family.
666666 14 "Social Equity Lottery Licensee" means a holder of an
667667 15 adult-use cannabis dispensary license awarded through a
668668 16 lottery held pursuant to subsection (c) of Section 15-35.20
669669 17 and any amendments thereto.
670670 18 Nothing in this Act shall be construed to preempt or limit
671671 19 the duties of any employer under the Job Opportunities for
672672 20 Qualified Applicants Act. Nothing in this Act shall permit an
673673 21 employer to require an employee to disclose sealed or expunged
674674 22 offenses, unless otherwise required by law.
675675 23 "Tied Applicant" means an application submitted by a
676676 24 Dispensary Applicant pursuant to Section 15-30 that received
677677 25 the same number of application points under Section 15-30 as
678678 26 the Dispensary Applicant's final score as one or more
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689689 1 top-scoring applications in the same BLS Region and would have
690690 2 been awarded a license but for the one or more other
691691 3 top-scoring applications that received the same number of
692692 4 application points. Each application for which a Dispensary
693693 5 Applicant was required to pay a required application fee for
694694 6 the application period ending January 2, 2020 shall be
695695 7 considered an application of a separate Tied Applicant.
696696 8 "Tied Applicant Lottery" means the process established
697697 9 under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
698698 10 Use Dispensing Organization Licenses pursuant to Sections
699699 11 15-25 and 15-30 among Eligible Tied Applicants.
700700 12 "Tincture" means a cannabis-infused solution, typically
701701 13 comprised of alcohol, glycerin, or vegetable oils, derived
702702 14 either directly from the cannabis plant or from a processed
703703 15 cannabis extract. A tincture is not an alcoholic liquor as
704704 16 defined in the Liquor Control Act of 1934. A tincture shall
705705 17 include a calibrated dropper or other similar device capable
706706 18 of accurately measuring servings.
707707 19 "Transporting organization" or "transporter" means an
708708 20 organization or business that is licensed by the Department of
709709 21 Agriculture to transport cannabis or cannabis-infused product
710710 22 on behalf of a cannabis business establishment or a community
711711 23 college licensed under the Community College Cannabis
712712 24 Vocational Training Pilot Program.
713713 25 "Transporting organization agent" means a principal
714714 26 officer, board member, employee, or agent of a transporting
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725725 1 organization.
726726 2 "Transporting organization agent identification card"
727727 3 means a document issued by the Department of Agriculture that
728728 4 identifies a person as a transporting organization agent.
729729 5 "Unit of local government" means any county, city,
730730 6 village, or incorporated town.
731731 7 "Vegetative stage" means the stage of cultivation in which
732732 8 a cannabis plant is propagated to produce additional cannabis
733733 9 plants or reach a sufficient size for production. This
734734 10 includes seedlings, clones, mothers, and other immature
735735 11 cannabis plants as follows:
736736 12 (1) if the cannabis plant is in an area that has not
737737 13 been intentionally deprived of light for a period of time
738738 14 intended to produce flower buds and induce maturation, it
739739 15 has no more than 2 stigmas visible at each internode of the
740740 16 cannabis plant; or
741741 17 (2) any cannabis plant that is cultivated solely for
742742 18 the purpose of propagating clones and is never used to
743743 19 produce cannabis.
744744 20 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
745745 21 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
746746 22 5-13-22.)
747747 23 (410 ILCS 705/7-10)
748748 24 Sec. 7-10. Cannabis Business Development Fund.
749749 25 (a) There is created in the State treasury a special fund,
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760760 1 which shall be held separate and apart from all other State
761761 2 moneys, to be known as the Cannabis Business Development Fund.
762762 3 The Cannabis Business Development Fund shall be exclusively
763763 4 used for the following purposes:
764764 5 (1) to provide low-interest rate loans to Qualified
765765 6 Social Equity Applicants and Social Equity Lottery
766766 7 Licenses to pay for ordinary and necessary expenses to
767767 8 start and operate a cannabis business establishment
768768 9 permitted by this Act;
769769 10 (2) to provide grants to Qualified Social Equity
770770 11 Applicants to pay for ordinary and necessary expenses to
771771 12 start and operate a cannabis business establishment
772772 13 permitted by this Act;
773773 14 (3) to compensate the Department of Commerce and
774774 15 Economic Opportunity for any costs related to the
775775 16 provision of low-interest loans and grants to Qualified
776776 17 Social Equity Applicants and Social Equity Lottery
777777 18 Licensees;
778778 19 (4) to pay for outreach that may be provided or
779779 20 targeted to attract and support Social Equity Applicants,
780780 21 and Qualified Social Equity Applicants, and Social Equity
781781 22 Lottery Licensees;
782782 23 (5) to provide financial assistance that supports
783783 24 lending to or private investment in Qualified Social
784784 25 Equity Applicants and Social Equity Lottery Licensees or
785785 26 facilitates access to the facilities needed to commence
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796796 1 operations as a cannabis business establishment (blank);
797797 2 (6) to conduct any study or research concerning the
798798 3 participation of minorities, women, veterans, or people
799799 4 with disabilities in the cannabis industry, including,
800800 5 without limitation, barriers to such individuals entering
801801 6 the industry as equity owners of cannabis business
802802 7 establishments;
803803 8 (7) (blank); and
804804 9 (8) to assist with job training and technical
805805 10 assistance for residents in Disproportionately Impacted
806806 11 Areas.
807807 12 (b) All moneys collected under Sections 15-15 and 15-20
808808 13 for Early Approval Adult Use Dispensing Organization Licenses
809809 14 issued before January 1, 2021 and remunerations made as a
810810 15 result of transfers of permits awarded to Qualified Social
811811 16 Equity Applicants shall be deposited into the Cannabis
812812 17 Business Development Fund.
813813 18 (c) (Blank).
814814 19 (c-5) In addition to any other transfers that may be
815815 20 provided for by law, on July 1, 2023, or as soon thereafter as
816816 21 practical, the State Comptroller shall direct and the State
817817 22 Treasurer shall transfer the sum of $40,000,000 from the
818818 23 Compassionate Use of Medical Cannabis Fund to the Cannabis
819819 24 Business Development Fund.
820820 25 (d) Notwithstanding any other law to the contrary, the
821821 26 Cannabis Business Development Fund is not subject to sweeps,
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832832 1 administrative charge-backs, or any other fiscal or budgetary
833833 2 maneuver that would in any way transfer any amounts from the
834834 3 Cannabis Business Development Fund into any other fund of the
835835 4 State.
836836 5 (Source: P.A. 103-8, eff. 6-7-23.)
837837 6 (410 ILCS 705/7-15)
838838 7 Sec. 7-15. Loans, financial assistance, and grants to
839839 8 Qualified Social Equity Applicants and Social Equity Lottery
840840 9 Licensees.
841841 10 (a) The Department of Commerce and Economic Opportunity
842842 11 shall establish grant, and loan, and financial assistance
843843 12 programs, subject to appropriations from the Cannabis Business
844844 13 Development Fund, for the purposes of providing financial
845845 14 assistance, loans, grants, and technical assistance to
846846 15 Qualified Social Equity Applicants and Social Equity Lottery
847847 16 Licensees.
848848 17 (b) The Department of Commerce and Economic Opportunity
849849 18 has the power to:
850850 19 (1) provide Cannabis Social Equity loans, financial
851851 20 assistance, and grants from appropriations from the
852852 21 Cannabis Business Development Fund to assist Qualified
853853 22 Social Equity Applicants and Social Equity Lottery
854854 23 Licensees in gaining entry to, and successfully operating
855855 24 in, the State's regulated cannabis marketplace;
856856 25 (2) enter into agreements that set forth terms and
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867867 1 conditions of the financial assistance, accept funds or
868868 2 grants, and engage in cooperation with private entities
869869 3 and agencies of State or local government to carry out the
870870 4 purposes of this Section;
871871 5 (3) fix, determine, charge, and collect any premiums,
872872 6 fees, charges, costs and expenses, including application
873873 7 fees, commitment fees, program fees, financing charges, or
874874 8 publication fees in connection with its activities under
875875 9 this Section;
876876 10 (4) coordinate assistance under these financial
877877 11 assistance loan programs with activities of the Illinois
878878 12 Department of Financial and Professional Regulation, the
879879 13 Illinois Department of Agriculture, and other agencies as
880880 14 needed to maximize the effectiveness and efficiency of
881881 15 this Act;
882882 16 (5) provide staff, administration, and related support
883883 17 required to administer this Section;
884884 18 (6) take whatever actions are necessary or appropriate
885885 19 to protect the State's interest in the event of
886886 20 bankruptcy, default, foreclosure, or noncompliance with
887887 21 the terms and conditions of financial assistance provided
888888 22 under this Section, including the ability to recapture
889889 23 funds if the recipient is found to be noncompliant with
890890 24 the terms and conditions of the financial assistance
891891 25 agreement;
892892 26 (7) enter into financial intermediary agreements to
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903903 1 facilitate lending to or investment in Qualified Social
904904 2 Equity Applicants or Social Equity Lottery Licensees, or
905905 3 their subsidiaries or affiliates, to ensure the
906906 4 availability of facilities necessary to operate a cannabis
907907 5 business establishment;
908908 6 (8) (7) establish application, notification, contract,
909909 7 and other forms, procedures, or rules deemed necessary and
910910 8 appropriate; and
911911 9 (9) (8) utilize vendors or contract work to carry out
912912 10 the purposes of this Act.
913913 11 (c) Loans made under this Section:
914914 12 (1) shall only be made if, in the Department's
915915 13 judgment, the project furthers the goals set forth in this
916916 14 Act; and
917917 15 (2) shall be in such principal amount and form and
918918 16 contain such terms and provisions with respect to
919919 17 security, insurance, reporting, delinquency charges,
920920 18 default remedies, and other matters as the Department
921921 19 shall determine appropriate to protect the public interest
922922 20 and to be consistent with the purposes of this Section.
923923 21 The terms and provisions may be less than required for
924924 22 similar loans not covered by this Section; and .
925925 23 (3) may be distributed by lot if the Department
926926 24 determines that the amount of funding available is
927927 25 insufficient to provide an adequate amount of funding for
928928 26 all of the applicants eligible to receive a loan. The
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939939 1 Department may determine the number of loans available
940940 2 based on the amount of funding available and communicate
941941 3 the number of loans available on the loan application. The
942942 4 Department may use competitive criteria to establish which
943943 5 applicants are eligible to receive a grant, loan, or
944944 6 financial assistance.
945945 7 (d) Grants made under this Section shall be awarded on a
946946 8 competitive and annual basis under the Grant Accountability
947947 9 and Transparency Act. Grants made under this Section shall
948948 10 further and promote the goals of this Act, including promotion
949949 11 of Social Equity Applicants, Qualified Social Equity
950950 12 Applicants, Social Equity Lottery Licensees, job training and
951951 13 workforce development, and technical assistance to Social
952952 14 Equity Applicants. To the extent registration with the federal
953953 15 System for Award Management requires a grant applicant to
954954 16 certify compliance with all federal laws, the grant applicants
955955 17 under this Section shall not be required to register for a
956956 18 unique entity identifier through the federal System for Award
957957 19 Management to be qualified to receive a grant so long as
958958 20 federal law prohibits the cultivation and sale of cannabis.
959959 21 (e) Financial intermediary agreements to provide financial
960960 22 assistance must further the goals set forth in this Act and
961961 23 result in financing or lease costs that are affordable or
962962 24 below market rate.
963963 25 (f) (e) Beginning January 1, 2021 and each year thereafter,
964964 26 the Department shall annually report to the Governor and the
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975975 1 General Assembly on the outcomes and effectiveness of this
976976 2 Section that shall include the following:
977977 3 (1) the number of persons or businesses receiving
978978 4 financial assistance under this Section;
979979 5 (2) the amount in financial assistance awarded in the
980980 6 aggregate, in addition to the amount of loans made that
981981 7 are outstanding and the amount of grants awarded;
982982 8 (3) the location of the project engaged in by the
983983 9 person or business; and
984984 10 (4) if applicable, the number of new jobs and other
985985 11 forms of economic output created as a result of the
986986 12 financial assistance.
987987 13 (g)
988988 (f) The Department of Commerce and Economic Opportunity
989989 14 shall include engagement with individuals with limited English
990990 15 proficiency as part of its outreach provided or targeted to
991991 16 attract and support Social Equity Applicants.
992992 17 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
993993 18 (410 ILCS 705/55-30)
994994 19 Sec. 55-30. Confidentiality.
995995 20 (a) Information provided by the cannabis business
996996 21 establishment licensees or applicants to the Department of
997997 22 Agriculture, the Department of Public Health, the Department
998998 23 of Financial and Professional Regulation, the Department of
999999 24 Commerce and Economic Opportunity, or other agency shall be
10001000 25 limited to information necessary for the purposes of
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10111011 1 administering this Act. The information is subject to the
10121012 2 provisions and limitations contained in the Freedom of
10131013 3 Information Act and may be disclosed in accordance with
10141014 4 Section 55-65.
10151015 5 (b) The following information received and records kept by
10161016 6 the Department of Agriculture, the Department of Public
10171017 7 Health, the Illinois State Police, and the Department of
10181018 8 Financial and Professional Regulation for purposes of
10191019 9 administering this Article are subject to all applicable
10201020 10 federal privacy laws, are confidential and exempt from
10211021 11 disclosure under the Freedom of Information Act, except as
10221022 12 provided in this Act, and not subject to disclosure to any
10231023 13 individual or public or private entity, except to the
10241024 14 Department of Financial and Professional Regulation, the
10251025 15 Department of Agriculture, the Department of Public Health,
10261026 16 the Department of Commerce and Economic Opportunity, and the
10271027 17 Illinois State Police as necessary to perform official duties
10281028 18 under this Article and to the Attorney General as necessary to
10291029 19 enforce the provisions of this Act. The following information
10301030 20 received and kept by the Department of Financial and
10311031 21 Professional Regulation or the Department of Agriculture may
10321032 22 be disclosed to the Department of Public Health, the
10331033 23 Department of Agriculture, the Department of Revenue, the
10341034 24 Illinois State Police, the Department of Commerce and Economic
10351035 25 Opportunity, or the Attorney General upon proper request:
10361036 26 (1) Applications and renewals, their contents, and
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10471047 1 supporting information submitted by or on behalf of
10481048 2 dispensing organizations, cannabis business
10491049 3 establishments, or Community College Cannabis Vocational
10501050 4 Program licensees, in compliance with this Article,
10511051 5 including their physical addresses; however, this does not
10521052 6 preclude the release of ownership information about
10531053 7 cannabis business establishment licenses, or information
10541054 8 submitted with an application required to be disclosed
10551055 9 pursuant to subsection (f);
10561056 10 (2) Any plans, procedures, policies, or other records
10571057 11 relating to cannabis business establishment security; and
10581058 12 (3) Information otherwise exempt from disclosure by
10591059 13 State or federal law.
10601060 14 Illinois or national criminal history record information,
10611061 15 or the nonexistence or lack of such information, may not be
10621062 16 disclosed by the Department of Financial and Professional
10631063 17 Regulation or the Department of Agriculture, except as
10641064 18 necessary to the Attorney General to enforce this Act.
10651065 19 (c) The name and address of a dispensing organization
10661066 20 licensed under this Act shall be subject to disclosure under
10671067 21 the Freedom of Information Act. The name and cannabis business
10681068 22 establishment address of the person or entity holding each
10691069 23 cannabis business establishment license shall be subject to
10701070 24 disclosure.
10711071 25 (d) All information collected by the Department of
10721072 26 Financial and Professional Regulation or the Department of
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10831083 1 Agriculture in the course of an examination, inspection, or
10841084 2 investigation of a licensee or applicant, including, but not
10851085 3 limited to, any complaint against a licensee or applicant
10861086 4 filed with the Department of Financial and Professional
10871087 5 Regulation or the Department of Agriculture and information
10881088 6 collected to investigate any such complaint, shall be
10891089 7 maintained for the confidential use of the Department of
10901090 8 Financial and Professional Regulation or the Department of
10911091 9 Agriculture and shall not be disclosed, except as otherwise
10921092 10 provided in this Act. A formal complaint against a licensee by
10931093 11 the Department of Financial and Professional Regulation or the
10941094 12 Department of Agriculture or any disciplinary order issued by
10951095 13 the Department of Financial and Professional Regulation or the
10961096 14 Department of Agriculture against a licensee or applicant
10971097 15 shall be a public record, except as otherwise provided by law.
10981098 16 Complaints from consumers or members of the general public
10991099 17 received regarding a specific, named licensee or complaints
11001100 18 regarding conduct by unlicensed entities shall be subject to
11011101 19 disclosure under the Freedom of Information Act.
11021102 20 (e) The Department of Agriculture, the Illinois State
11031103 21 Police, and the Department of Financial and Professional
11041104 22 Regulation shall not share or disclose any Illinois or
11051105 23 national criminal history record information, or the
11061106 24 nonexistence or lack of such information, to any person or
11071107 25 entity not expressly authorized by this Act.
11081108 26 (f) Each Department responsible for licensure under this
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