Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1723 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1723 Introduced 2/9/2023, by Sen. Kimberly A. Lightford 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 705/60-10 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 May 1, 2023 and an additional 30 craft grower licenses on or before September 1, 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. LRB103 28854 CPF 55239 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1723 Introduced 2/9/2023, by Sen. Kimberly A. Lightford 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 705/60-10 410 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 705/60-10 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 May 1, 2023 and an additional 30 craft grower licenses on or before September 1, 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. LRB103 28854 CPF 55239 b LRB103 28854 CPF 55239 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1723 Introduced 2/9/2023, by Sen. Kimberly A. Lightford SYNOPSIS AS INTRODUCED:
3	3	410 ILCS 705/1-10410 ILCS 705/30-5410 ILCS 705/30-30410 ILCS 705/35-31410 ILCS 705/40-25410 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 705/60-10
4	4	410 ILCS 705/1-10
5	5	410 ILCS 705/30-5
6	6	410 ILCS 705/30-30
7	7	410 ILCS 705/35-31
8	8	410 ILCS 705/40-25
9	9	410 ILCS 705/60-10
10	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 May 1, 2023 and an additional 30 craft grower licenses on or before September 1, 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.
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16	16	1 AN ACT concerning health.
17	17	2 Be it enacted by the People of the State of Illinois,
18	18	3 represented in the General Assembly:
19	19	4 Section 5. The Cannabis Regulation and Tax Act is amended
20	20	5 by changing Sections 1-10, 30-5, 30-30, 35-31, 40-25, 55-20,
21	21	6 and 60-10 as follows:
22	22	7 (410 ILCS 705/1-10)
23	23	8 Sec. 1-10. Definitions. In this Act:
24	24	9 "Adult Use Cultivation Center License" means a license
25	25	10 issued by the Department of Agriculture that permits a person
26	26	11 to act as a cultivation center under this Act and any
27	27	12 administrative rule made in furtherance of this Act.
28	28	13 "Adult Use Dispensing Organization License" means a
29	29	14 license issued by the Department of Financial and Professional
30	30	15 Regulation that permits a person to act as a dispensing
31	31	16 organization under this Act and any administrative rule made
32	32	17 in furtherance of this Act.
33	33	18 "Advertise" means to engage in promotional activities
34	34	19 including, but not limited to: newspaper, radio, Internet and
35	35	20 electronic media, and television advertising; the distribution
36	36	21 of fliers and circulars; billboard advertising; and the
37	37	22 display of window and interior signs. "Advertise" does not
38	38	23 mean exterior signage displaying only the name of the licensed
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42	42	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1723 Introduced 2/9/2023, by Sen. Kimberly A. Lightford SYNOPSIS AS INTRODUCED:
43	43	410 ILCS 705/1-10410 ILCS 705/30-5410 ILCS 705/30-30410 ILCS 705/35-31410 ILCS 705/40-25410 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 705/60-10
44	44	410 ILCS 705/1-10
45	45	410 ILCS 705/30-5
46	46	410 ILCS 705/30-30
47	47	410 ILCS 705/35-31
48	48	410 ILCS 705/40-25
49	49	410 ILCS 705/60-10
50	50	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 May 1, 2023 and an additional 30 craft grower licenses on or before September 1, 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.
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53	53	A BILL FOR
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59	59	410 ILCS 705/1-10
60	60	410 ILCS 705/30-5
61	61	410 ILCS 705/30-30
62	62	410 ILCS 705/35-31
63	63	410 ILCS 705/40-25
64	64	410 ILCS 705/60-10
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83	83	1 cannabis business establishment.
84	84	2 "Application points" means the number of points a
85	85	3 Dispensary Applicant receives on an application for a
86	86	4 Conditional Adult Use Dispensing Organization License.
87	87	5 "BLS Region" means a region in Illinois used by the United
88	88	6 States Bureau of Labor Statistics to gather and categorize
89	89	7 certain employment and wage data. The 17 such regions in
90	90	8 Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
91	91	9 Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
92	92	10 Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
93	93	11 Rockford, St. Louis, Springfield, Northwest Illinois
94	94	12 nonmetropolitan area, West Central Illinois nonmetropolitan
95	95	13 area, East Central Illinois nonmetropolitan area, and South
96	96	14 Illinois nonmetropolitan area.
97	97	15 "By lot" means a randomized method of choosing between 2
98	98	16 or more Eligible Tied Applicants or 2 or more Qualifying
99	99	17 Applicants.
100	100	18 "Cannabis" means marijuana, hashish, and other substances
101	101	19 that are identified as including any parts of the plant
102	102	20 Cannabis sativa and including derivatives or subspecies, such
103	103	21 as indica, of all strains of cannabis, whether growing or not;
104	104	22 the seeds thereof, the resin extracted from any part of the
105	105	23 plant; and any compound, manufacture, salt, derivative,
106	106	24 mixture, or preparation of the plant, its seeds, or resin,
107	107	25 including tetrahydrocannabinol (THC) and all other naturally
108	108	26 produced cannabinol derivatives, whether produced directly or
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119	119	1 indirectly by extraction; however, "cannabis" does not include
120	120	2 the mature stalks of the plant, fiber produced from the
121	121	3 stalks, oil or cake made from the seeds of the plant, any other
122	122	4 compound, manufacture, salt, derivative, mixture, or
123	123	5 preparation of the mature stalks (except the resin extracted
124	124	6 from it), fiber, oil or cake, or the sterilized seed of the
125	125	7 plant that is incapable of germination. "Cannabis" does not
126	126	8 include industrial hemp as defined and authorized under the
127	127	9 Industrial Hemp Act. "Cannabis" also means cannabis flower,
128	128	10 concentrate, and cannabis-infused products.
129	129	11 "Cannabis business establishment" means a cultivation
130	130	12 center, craft grower, processing organization, infuser
131	131	13 organization, dispensing organization, or transporting
132	132	14 organization.
133	133	15 "Cannabis concentrate" means a product derived from
134	134	16 cannabis that is produced by extracting cannabinoids,
135	135	17 including tetrahydrocannabinol (THC), from the plant through
136	136	18 the use of propylene glycol, glycerin, butter, olive oil, or
137	137	19 other typical cooking fats; water, ice, or dry ice; or butane,
138	138	20 propane, CO2, ethanol, or isopropanol and with the intended
139	139	21 use of smoking or making a cannabis-infused product. The use
140	140	22 of any other solvent is expressly prohibited unless and until
141	141	23 it is approved by the Department of Agriculture.
142	142	24 "Cannabis container" means a sealed or resealable,
143	143	25 traceable, container, or package used for the purpose of
144	144	26 containment of cannabis or cannabis-infused product during
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155	155	1 transportation.
156	156	2 "Cannabis flower" means marijuana, hashish, and other
157	157	3 substances that are identified as including any parts of the
158	158	4 plant Cannabis sativa and including derivatives or subspecies,
159	159	5 such as indica, of all strains of cannabis; including raw
160	160	6 kief, leaves, and buds, but not resin that has been extracted
161	161	7 from any part of such plant; nor any compound, manufacture,
162	162	8 salt, derivative, mixture, or preparation of such plant, its
163	163	9 seeds, or resin.
164	164	10 "Cannabis-infused product" means a beverage, food, oil,
165	165	11 ointment, tincture, topical formulation, or another product
166	166	12 containing cannabis or cannabis concentrate that is not
167	167	13 intended to be smoked.
168	168	14 "Cannabis paraphernalia" means equipment, products, or
169	169	15 materials intended to be used for planting, propagating,
170	170	16 cultivating, growing, harvesting, manufacturing, producing,
171	171	17 processing, preparing, testing, analyzing, packaging,
172	172	18 repackaging, storing, containing, concealing, ingesting, or
173	173	19 otherwise introducing cannabis into the human body.
174	174	20 "Cannabis plant monitoring system" or "plant monitoring
175	175	21 system" means a system that includes, but is not limited to,
176	176	22 testing and data collection established and maintained by the
177	177	23 cultivation center, craft grower, or processing organization
178	178	24 and that is available to the Department of Revenue, the
179	179	25 Department of Agriculture, the Department of Financial and
180	180	26 Professional Regulation, and the Illinois State Police for the
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191	191	1 purposes of documenting each cannabis plant and monitoring
192	192	2 plant development throughout the life cycle of a cannabis
193	193	3 plant cultivated for the intended use by a customer from seed
194	194	4 planting to final packaging.
195	195	5 "Cannabis testing facility" means an entity registered by
196	196	6 the Department of Agriculture to test cannabis for potency and
197	197	7 contaminants.
198	198	8 "Clone" means a plant section from a female cannabis plant
199	199	9 not yet rootbound, growing in a water solution or other
200	200	10 propagation matrix, that is capable of developing into a new
201	201	11 plant.
202	202	12 "Community College Cannabis Vocational Training Pilot
203	203	13 Program faculty participant" means a person who is 21 years of
204	204	14 age or older, licensed by the Department of Agriculture, and
205	205	15 is employed or contracted by an Illinois community college to
206	206	16 provide student instruction using cannabis plants at an
207	207	17 Illinois Community College.
208	208	18 "Community College Cannabis Vocational Training Pilot
209	209	19 Program faculty participant Agent Identification Card" means a
210	210	20 document issued by the Department of Agriculture that
211	211	21 identifies a person as a Community College Cannabis Vocational
212	212	22 Training Pilot Program faculty participant.
213	213	23 "Conditional Adult Use Dispensing Organization License"
214	214	24 means a contingent license awarded to applicants for an Adult
215	215	25 Use Dispensing Organization License that reserves the right to
216	216	26 an Adult Use Dispensing Organization License if the applicant
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227	227	1 meets certain conditions described in this Act, but does not
228	228	2 entitle the recipient to begin purchasing or selling cannabis
229	229	3 or cannabis-infused products.
230	230	4 "Conditional Adult Use Cultivation Center License" means a
231	231	5 license awarded to top-scoring applicants for an Adult Use
232	232	6 Cultivation Center License that reserves the right to an Adult
233	233	7 Use Cultivation Center License if the applicant meets certain
234	234	8 conditions as determined by the Department of Agriculture by
235	235	9 rule, but does not entitle the recipient to begin growing,
236	236	10 processing, or selling cannabis or cannabis-infused products.
237	237	11 "Craft grower" means a facility operated by an
238	238	12 organization or business that is licensed by the Department of
239	239	13 Agriculture to cultivate, dry, cure, and package cannabis and
240	240	14 perform other necessary activities to make cannabis available
241	241	15 for sale at a dispensing organization or use at a processing
242	242	16 organization. A craft grower may contain up to 14,000 5,000
243	243	17 square feet of canopy space on its premises for plants in the
244	244	18 flowering state. The Department of Agriculture may authorize
245	245	19 an increase or decrease of flowering stage cultivation space
246	246	20 in increments of 3,000 square feet by rule based on market
247	247	21 need, craft grower capacity, and the licensee's history of
248	248	22 compliance or noncompliance, with a maximum space of 14,000
249	249	23 square feet for cultivating plants in the flowering stage,
250	250	24 which must be cultivated in all stages of growth in an enclosed
251	251	25 and secure area. A craft grower may share premises with a
252	252	26 processing organization or a dispensing organization, or both,
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263	263	1 provided each licensee stores currency and cannabis or
264	264	2 cannabis-infused products in a separate secured vault to which
265	265	3 the other licensee does not have access or all licensees
266	266	4 sharing a vault share more than 50% of the same ownership.
267	267	5 "Craft grower agent" means a principal officer, board
268	268	6 member, employee, or other agent of a craft grower who is 21
269	269	7 years of age or older.
270	270	8 "Craft Grower Agent Identification Card" means a document
271	271	9 issued by the Department of Agriculture that identifies a
272	272	10 person as a craft grower agent.
273	273	11 "Cultivation center" means a facility operated by an
274	274	12 organization or business that is licensed by the Department of
275	275	13 Agriculture to cultivate, process, transport (unless otherwise
276	276	14 limited by this Act), and perform other necessary activities
277	277	15 to provide cannabis and cannabis-infused products to cannabis
278	278	16 business establishments.
279	279	17 "Cultivation center agent" means a principal officer,
280	280	18 board member, employee, or other agent of a cultivation center
281	281	19 who is 21 years of age or older.
282	282	20 "Cultivation Center Agent Identification Card" means a
283	283	21 document issued by the Department of Agriculture that
284	284	22 identifies a person as a cultivation center agent.
285	285	23 "Currency" means currency and coin of the United States.
286	286	24 "Dispensary" means a facility operated by a dispensing
287	287	25 organization at which activities licensed by this Act may
288	288	26 occur.
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299	299	1 "Dispensary Applicant" means the Proposed Dispensing
300	300	2 Organization Name as stated on an application for a
301	301	3 Conditional Adult Use Dispensing Organization License.
302	302	4 "Dispensing organization" means a facility operated by an
303	303	5 organization or business that is licensed by the Department of
304	304	6 Financial and Professional Regulation to acquire cannabis from
305	305	7 a cultivation center, craft grower, processing organization,
306	306	8 or another dispensary for the purpose of selling or dispensing
307	307	9 cannabis, cannabis-infused products, cannabis seeds,
308	308	10 paraphernalia, or related supplies under this Act to
309	309	11 purchasers or to qualified registered medical cannabis
310	310	12 patients and caregivers. As used in this Act, "dispensing
311	311	13 organization" includes a registered medical cannabis
312	312	14 organization as defined in the Compassionate Use of Medical
313	313	15 Cannabis Program Act or its successor Act that has obtained an
314	314	16 Early Approval Adult Use Dispensing Organization License.
315	315	17 "Dispensing organization agent" means a principal officer,
316	316	18 employee, or agent of a dispensing organization who is 21
317	317	19 years of age or older.
318	318	20 "Dispensing organization agent identification card" means
319	319	21 a document issued by the Department of Financial and
320	320	22 Professional Regulation that identifies a person as a
321	321	23 dispensing organization agent.
322	322	24 "Disproportionately Impacted Area" means a census tract or
323	323	25 comparable geographic area that satisfies the following
324	324	26 criteria as determined by the Department of Commerce and
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335	335	1 Economic Opportunity, that:
336	336	2 (1) meets at least one of the following criteria:
337	337	3 (A) the area has a poverty rate of at least 20%
338	338	4 according to the latest federal decennial census; or
339	339	5 (B) 75% or more of the children in the area
340	340	6 participate in the federal free lunch program
341	341	7 according to reported statistics from the State Board
342	342	8 of Education; or
343	343	9 (C) at least 20% of the households in the area
344	344	10 receive assistance under the Supplemental Nutrition
345	345	11 Assistance Program; or
346	346	12 (D) the area has an average unemployment rate, as
347	347	13 determined by the Illinois Department of Employment
348	348	14 Security, that is more than 120% of the national
349	349	15 unemployment average, as determined by the United
350	350	16 States Department of Labor, for a period of at least 2
351	351	17 consecutive calendar years preceding the date of the
352	352	18 application; and
353	353	19 (2) has high rates of arrest, conviction, and
354	354	20 incarceration related to the sale, possession, use,
355	355	21 cultivation, manufacture, or transport of cannabis.
356	356	22 "Early Approval Adult Use Cultivation Center License"
357	357	23 means a license that permits a medical cannabis cultivation
358	358	24 center licensed under the Compassionate Use of Medical
359	359	25 Cannabis Program Act as of the effective date of this Act to
360	360	26 begin cultivating, infusing, packaging, transporting (unless
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371	371	1 otherwise provided in this Act), processing, and selling
372	372	2 cannabis or cannabis-infused product to cannabis business
373	373	3 establishments for resale to purchasers as permitted by this
374	374	4 Act as of January 1, 2020.
375	375	5 "Early Approval Adult Use Dispensing Organization License"
376	376	6 means a license that permits a medical cannabis dispensing
377	377	7 organization licensed under the Compassionate Use of Medical
378	378	8 Cannabis Program Act as of the effective date of this Act to
379	379	9 begin selling cannabis or cannabis-infused product to
380	380	10 purchasers as permitted by this Act as of January 1, 2020.
381	381	11 "Early Approval Adult Use Dispensing Organization at a
382	382	12 secondary site" means a license that permits a medical
383	383	13 cannabis dispensing organization licensed under the
384	384	14 Compassionate Use of Medical Cannabis Program Act as of the
385	385	15 effective date of this Act to begin selling cannabis or
386	386	16 cannabis-infused product to purchasers as permitted by this
387	387	17 Act on January 1, 2020 at a different dispensary location from
388	388	18 its existing registered medical dispensary location.
389	389	19 "Eligible Tied Applicant" means a Tied Applicant that is
390	390	20 eligible to participate in the process by which a remaining
391	391	21 available license is distributed by lot pursuant to a Tied
392	392	22 Applicant Lottery.
393	393	23 "Enclosed, locked facility" means a room, greenhouse,
394	394	24 building, or other enclosed area equipped with locks or other
395	395	25 security devices that permit access only by cannabis business
396	396	26 establishment agents working for the licensed cannabis
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407	407	1 business establishment or acting pursuant to this Act to
408	408	2 cultivate, process, store, or distribute cannabis.
409	409	3 "Enclosed, locked space" means a closet, room, greenhouse,
410	410	4 building, or other enclosed area equipped with locks or other
411	411	5 security devices that permit access only by authorized
412	412	6 individuals under this Act. "Enclosed, locked space" may
413	413	7 include:
414	414	8 (1) a space within a residential building that (i) is
415	415	9 the primary residence of the individual cultivating 5 or
416	416	10 fewer cannabis plants that are more than 5 inches tall and
417	417	11 (ii) includes sleeping quarters and indoor plumbing. The
418	418	12 space must only be accessible by a key or code that is
419	419	13 different from any key or code that can be used to access
420	420	14 the residential building from the exterior; or
421	421	15 (2) a structure, such as a shed or greenhouse, that
422	422	16 lies on the same plot of land as a residential building
423	423	17 that (i) includes sleeping quarters and indoor plumbing
424	424	18 and (ii) is used as a primary residence by the person
425	425	19 cultivating 5 or fewer cannabis plants that are more than
426	426	20 5 inches tall, such as a shed or greenhouse. The structure
427	427	21 must remain locked when it is unoccupied by people.
428	428	22 "Financial institution" has the same meaning as "financial
429	429	23 organization" as defined in Section 1501 of the Illinois
430	430	24 Income Tax Act, and also includes the holding companies,
431	431	25 subsidiaries, and affiliates of such financial organizations.
432	432	26 "Flowering stage" means the stage of cultivation where and
433	433
434	434
435	435
436	436
437	437
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443	443	1 when a cannabis plant is cultivated to produce plant material
444	444	2 for cannabis products. This includes mature plants as follows:
445	445	3 (1) if greater than 2 stigmas are visible at each
446	446	4 internode of the plant; or
447	447	5 (2) if the cannabis plant is in an area that has been
448	448	6 intentionally deprived of light for a period of time
449	449	7 intended to produce flower buds and induce maturation,
450	450	8 from the moment the light deprivation began through the
451	451	9 remainder of the marijuana plant growth cycle.
452	452	10 "Individual" means a natural person.
453	453	11 "Infuser organization" or "infuser" means a facility
454	454	12 operated by an organization or business that is licensed by
455	455	13 the Department of Agriculture to directly incorporate cannabis
456	456	14 or cannabis concentrate into a product formulation to produce
457	457	15 a cannabis-infused product.
458	458	16 "Kief" means the resinous crystal-like trichomes that are
459	459	17 found on cannabis and that are accumulated, resulting in a
460	460	18 higher concentration of cannabinoids, untreated by heat or
461	461	19 pressure, or extracted using a solvent.
462	462	20 "Labor peace agreement" means an agreement between a
463	463	21 cannabis business establishment and any labor organization
464	464	22 recognized under the National Labor Relations Act, referred to
465	465	23 in this Act as a bona fide labor organization, that prohibits
466	466	24 labor organizations and members from engaging in picketing,
467	467	25 work stoppages, boycotts, and any other economic interference
468	468	26 with the cannabis business establishment. This agreement means
469	469
470	470
471	471
472	472
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476	476
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478	478	SB1723 - 13 - LRB103 28854 CPF 55239 b
479	479	1 that the cannabis business establishment has agreed not to
480	480	2 disrupt efforts by the bona fide labor organization to
481	481	3 communicate with, and attempt to organize and represent, the
482	482	4 cannabis business establishment's employees. The agreement
483	483	5 shall provide a bona fide labor organization access at
484	484	6 reasonable times to areas in which the cannabis business
485	485	7 establishment's employees work, for the purpose of meeting
486	486	8 with employees to discuss their right to representation,
487	487	9 employment rights under State law, and terms and conditions of
488	488	10 employment. This type of agreement shall not mandate a
489	489	11 particular method of election or certification of the bona
490	490	12 fide labor organization.
491	491	13 "Limited access area" means a room or other area under the
492	492	14 control of a cannabis dispensing organization licensed under
493	493	15 this Act and upon the licensed premises where cannabis sales
494	494	16 occur with access limited to purchasers, dispensing
495	495	17 organization owners and other dispensing organization agents,
496	496	18 or service professionals conducting business with the
497	497	19 dispensing organization, or, if sales to registered qualifying
498	498	20 patients, caregivers, provisional patients, and Opioid
499	499	21 Alternative Pilot Program participants licensed pursuant to
500	500	22 the Compassionate Use of Medical Cannabis Program Act are also
501	501	23 permitted at the dispensary, registered qualifying patients,
502	502	24 caregivers, provisional patients, and Opioid Alternative Pilot
503	503	25 Program participants.
504	504	26 "Member of an impacted family" means an individual who has
505	505
506	506
507	507
508	508
509	509
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511	511
512	512
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515	515	1 a parent, legal guardian, child, spouse, or dependent, or was
516	516	2 a dependent of an individual who, prior to the effective date
517	517	3 of this Act, was arrested for, convicted of, or adjudicated
518	518	4 delinquent for any offense that is eligible for expungement
519	519	5 under this Act.
520	520	6 "Mother plant" means a cannabis plant that is cultivated
521	521	7 or maintained for the purpose of generating clones, and that
522	522	8 will not be used to produce plant material for sale to an
523	523	9 infuser or dispensing organization.
524	524	10 "Ordinary public view" means within the sight line with
525	525	11 normal visual range of a person, unassisted by visual aids,
526	526	12 from a public street or sidewalk adjacent to real property, or
527	527	13 from within an adjacent property.
528	528	14 "Ownership and control" means ownership of at least 51% of
529	529	15 the business, including corporate stock if a corporation, and
530	530	16 control over the management and day-to-day operations of the
531	531	17 business and an interest in the capital, assets, and profits
532	532	18 and losses of the business proportionate to percentage of
533	533	19 ownership.
534	534	20 "Person" means a natural individual, firm, partnership,
535	535	21 association, joint stock company, joint venture, public or
536	536	22 private corporation, limited liability company, or a receiver,
537	537	23 executor, trustee, guardian, or other representative appointed
538	538	24 by order of any court.
539	539	25 "Possession limit" means the amount of cannabis under
540	540	26 Section 10-10 that may be possessed at any one time by a person
541	541
542	542
543	543
544	544
545	545
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548	548
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550	550	SB1723 - 15 - LRB103 28854 CPF 55239 b
551	551	1 21 years of age or older or who is a registered qualifying
552	552	2 medical cannabis patient or caregiver under the Compassionate
553	553	3 Use of Medical Cannabis Program Act.
554	554	4 "Principal officer" includes a cannabis business
555	555	5 establishment applicant or licensed cannabis business
556	556	6 establishment's board member, owner with more than 1% interest
557	557	7 of the total cannabis business establishment or more than 5%
558	558	8 interest of the total cannabis business establishment of a
559	559	9 publicly traded company, president, vice president, secretary,
560	560	10 treasurer, partner, officer, member, manager member, or person
561	561	11 with a profit sharing, financial interest, or revenue sharing
562	562	12 arrangement. The definition includes a person with authority
563	563	13 to control the cannabis business establishment, a person who
564	564	14 assumes responsibility for the debts of the cannabis business
565	565	15 establishment and who is further defined in this Act.
566	566	16 "Primary residence" means a dwelling where a person
567	567	17 usually stays or stays more often than other locations. It may
568	568	18 be determined by, without limitation, presence, tax filings;
569	569	19 address on an Illinois driver's license, an Illinois
570	570	20 Identification Card, or an Illinois Person with a Disability
571	571	21 Identification Card; or voter registration. No person may have
572	572	22 more than one primary residence.
573	573	23 "Processing organization" or "processor" means a facility
574	574	24 operated by an organization or business that is licensed by
575	575	25 the Department of Agriculture to either extract constituent
576	576	26 chemicals or compounds to produce cannabis concentrate or
577	577
578	578
579	579
580	580
581	581
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583	583
584	584
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587	587	1 incorporate cannabis or cannabis concentrate into a product
588	588	2 formulation to produce a cannabis product.
589	589	3 "Processing organization agent" means a principal officer,
590	590	4 board member, employee, or agent of a processing organization.
591	591	5 "Processing organization agent identification card" means
592	592	6 a document issued by the Department of Agriculture that
593	593	7 identifies a person as a processing organization agent.
594	594	8 "Purchaser" means a person 21 years of age or older who
595	595	9 acquires cannabis for a valuable consideration. "Purchaser"
596	596	10 does not include a cardholder under the Compassionate Use of
597	597	11 Medical Cannabis Program Act.
598	598	12 "Qualifying Applicant" means an applicant that submitted
599	599	13 an application pursuant to Section 15-30 that received at
600	600	14 least 85% of 250 application points available under Section
601	601	15 15-30 as the applicant's final score and meets the definition
602	602	16 of "Social Equity Applicant" as set forth under this Section.
603	603	17 "Qualifying Social Equity Justice Involved Applicant"
604	604	18 means an applicant that submitted an application pursuant to
605	605	19 Section 15-30 that received at least 85% of 250 application
606	606	20 points available under Section 15-30 as the applicant's final
607	607	21 score and meets the criteria of either paragraph (1) or (2) of
608	608	22 the definition of "Social Equity Applicant" as set forth under
609	609	23 this Section.
610	610	24 "Qualified Social Equity Applicant" means a Social Equity
611	611	25 Applicant who has been awarded a conditional license under
612	612	26 this Act to operate a cannabis business establishment.
613	613
614	614
615	615
616	616
617	617
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619	619
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623	623	1 "Resided" means an individual's primary residence was
624	624	2 located within the relevant geographic area as established by
625	625	3 2 of the following:
626	626	4 (1) a signed lease agreement that includes the
627	627	5 applicant's name;
628	628	6 (2) a property deed that includes the applicant's
629	629	7 name;
630	630	8 (3) school records;
631	631	9 (4) a voter registration card;
632	632	10 (5) an Illinois driver's license, an Illinois
633	633	11 Identification Card, or an Illinois Person with a
634	634	12 Disability Identification Card;
635	635	13 (6) a paycheck stub;
636	636	14 (7) a utility bill;
637	637	15 (8) tax records; or
638	638	16 (9) any other proof of residency or other information
639	639	17 necessary to establish residence as provided by rule.
640	640	18 "Smoking" means the inhalation of smoke caused by the
641	641	19 combustion of cannabis.
642	642	20 "Social Equity Applicant" means an applicant that is an
643	643	21 Illinois resident that meets one of the following criteria:
644	644	22 (1) an applicant with at least 51% ownership and
645	645	23 control by one or more individuals who have resided for at
646	646	24 least 5 of the preceding 10 years in a Disproportionately
647	647	25 Impacted Area;
648	648	26 (2) an applicant with at least 51% ownership and
649	649
650	650
651	651
652	652
653	653
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655	655
656	656
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659	659	1 control by one or more individuals who:
660	660	2 (i) have been arrested for, convicted of, or
661	661	3 adjudicated delinquent for any offense that is
662	662	4 eligible for expungement under this Act; or
663	663	5 (ii) is a member of an impacted family;
664	664	6 (3) for applicants with a minimum of 10 full-time
665	665	7 employees, an applicant with at least 51% of current
666	666	8 employees who:
667	667	9 (i) currently reside in a Disproportionately
668	668	10 Impacted Area; or
669	669	11 (ii) have been arrested for, convicted of, or
670	670	12 adjudicated delinquent for any offense that is
671	671	13 eligible for expungement under this Act or member of
672	672	14 an impacted family.
673	673	15 Nothing in this Act shall be construed to preempt or limit
674	674	16 the duties of any employer under the Job Opportunities for
675	675	17 Qualified Applicants Act. Nothing in this Act shall permit an
676	676	18 employer to require an employee to disclose sealed or expunged
677	677	19 offenses, unless otherwise required by law.
678	678	20 "Social Equity Justice Involved Applicant" means an
679	679	21 applicant that is an Illinois resident and that:
680	680	22 (1) is at least 51% owned and controlled by one or more
681	681	23 individuals who have resided in a Disproportionately
682	682	24 Impacted Area for at least 5 of the 10 years immediately
683	683	25 preceding the date of application;
684	684	26 (2) is at least 51% owned and controlled by one or more
685	685
686	686
687	687
688	688
689	689
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691	691
692	692
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695	695	1 individuals who have been arrested for, convicted of, or
696	696	2 adjudicated delinquent for any offense that is eligible
697	697	3 for expungement under subsection (i) of Section 5.2 of the
698	698	4 Criminal Identification Act; or
699	699	5 (3) is at least 51% owned and controlled by one or more
700	700	6 members of an impacted family.
701	701	7 "Tied Applicant" means an application submitted by a
702	702	8 Dispensary Applicant pursuant to Section 15-30 that received
703	703	9 the same number of application points under Section 15-30 as
704	704	10 the Dispensary Applicant's final score as one or more
705	705	11 top-scoring applications in the same BLS Region and would have
706	706	12 been awarded a license but for the one or more other
707	707	13 top-scoring applications that received the same number of
708	708	14 application points. Each application for which a Dispensary
709	709	15 Applicant was required to pay a required application fee for
710	710	16 the application period ending January 2, 2020 shall be
711	711	17 considered an application of a separate Tied Applicant.
712	712	18 "Tied Applicant Lottery" means the process established
713	713	19 under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
714	714	20 Use Dispensing Organization Licenses pursuant to Sections
715	715	21 15-25 and 15-30 among Eligible Tied Applicants.
716	716	22 "Tincture" means a cannabis-infused solution, typically
717	717	23 comprised of alcohol, glycerin, or vegetable oils, derived
718	718	24 either directly from the cannabis plant or from a processed
719	719	25 cannabis extract. A tincture is not an alcoholic liquor as
720	720	26 defined in the Liquor Control Act of 1934. A tincture shall
721	721
722	722
723	723
724	724
725	725
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731	731	1 include a calibrated dropper or other similar device capable
732	732	2 of accurately measuring servings.
733	733	3 "Transporting organization" or "transporter" means an
734	734	4 organization or business that is licensed by the Department of
735	735	5 Agriculture to transport cannabis or cannabis-infused product
736	736	6 on behalf of a cannabis business establishment or a community
737	737	7 college licensed under the Community College Cannabis
738	738	8 Vocational Training Pilot Program.
739	739	9 "Transporting organization agent" means a principal
740	740	10 officer, board member, employee, or agent of a transporting
741	741	11 organization.
742	742	12 "Transporting organization agent identification card"
743	743	13 means a document issued by the Department of Agriculture that
744	744	14 identifies a person as a transporting organization agent.
745	745	15 "Unit of local government" means any county, city,
746	746	16 village, or incorporated town.
747	747	17 "Vegetative stage" means the stage of cultivation in which
748	748	18 a cannabis plant is propagated to produce additional cannabis
749	749	19 plants or reach a sufficient size for production. This
750	750	20 includes seedlings, clones, mothers, and other immature
751	751	21 cannabis plants as follows:
752	752	22 (1) if the cannabis plant is in an area that has not
753	753	23 been intentionally deprived of light for a period of time
754	754	24 intended to produce flower buds and induce maturation, it
755	755	25 has no more than 2 stigmas visible at each internode of the
756	756	26 cannabis plant; or
757	757
758	758
759	759
760	760
761	761
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763	763
764	764
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767	767	1 (2) any cannabis plant that is cultivated solely for
768	768	2 the purpose of propagating clones and is never used to
769	769	3 produce cannabis.
770	770	4 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
771	771	5 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
772	772	6 5-13-22.)
773	773	7 (410 ILCS 705/30-5)
774	774	8 Sec. 30-5. Issuance of licenses.
775	775	9 (a) The Department of Agriculture shall issue up to 40
776	776	10 craft grower licenses by July 1, 2020. Any person or entity
777	777	11 awarded a license pursuant to this subsection shall only hold
778	778	12 one craft grower license and may not sell that license until
779	779	13 after December 21, 2021.
780	780	14 (a-5) The Department of Agriculture shall issue an
781	781	15 additional 30 craft grower licenses on or before May 1, 2023,
782	782	16 cost free, to applicants who submitted craft grower license
783	783	17 applications on or before April 30, 2020 but were not awarded a
784	784	18 license under subsection (a) and who received at least 85% of
785	785	19 the total points available on their applications. Any person
786	786	20 or entity awarded a license under this subsection may sell
787	787	21 that license at any time after it is awarded.
788	788	22 (a-10) The Department of Agriculture shall issue an
789	789	23 additional 30 craft grower licenses on or before September 1,
790	790	24 2023, at no charge, to applicants who submitted craft grower
791	791	25 license applications on or before April 30, 2020 but were not
792	792
793	793
794	794
795	795
796	796
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798	798
799	799
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802	802	1 awarded a license under subsection (a) or subsection (a-5),
803	803	2 received at least 85% of the total points available on their
804	804	3 applications, and qualify as Social Equity Justice Involved
805	805	4 Applicants. Any applicant awarded a license under this
806	806	5 subsection may sell that license at any time after it is
807	807	6 awarded.
808	808	7 (b) By December 21, 2021, the Department of Agriculture
809	809	8 shall issue up to 60 additional craft grower licenses. Any
810	810	9 person or entity awarded a license pursuant to this Section
811	811	10 subsection shall not hold more than 2 craft grower licenses.
812	812	11 The person or entity awarded a license pursuant to this
813	813	12 subsection or subsection (a) of this Section may sell its
814	814	13 craft grower license subject to the restrictions of this Act
815	815	14 or as determined by administrative rule. Prior to issuing such
816	816	15 licenses, the Department may adopt rules through emergency
817	817	16 rulemaking in accordance with subsection (kk) of Section 5-45
818	818	17 of the Illinois Administrative Procedure Act, to modify or
819	819	18 raise the number of craft grower licenses and modify or change
820	820	19 the licensing application process. The General Assembly finds
821	821	20 that the adoption of rules to regulate cannabis use is deemed
822	822	21 an emergency and necessary for the public interest, safety,
823	823	22 and welfare. In determining whether to exercise the authority
824	824	23 granted by this subsection, the Department of Agriculture must
825	825	24 consider the following factors:
826	826	25 (1) the percentage of cannabis sales occurring in
827	827	26 Illinois not in the regulated market using data from the
828	828
829	829
830	830
831	831
832	832
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834	834
835	835
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838	838	1 Substance Abuse and Mental Health Services Administration,
839	839	2 National Survey on Drug Use and Health, Illinois
840	840	3 Behavioral Risk Factor Surveillance System, and tourism
841	841	4 data from the Illinois Office of Tourism to ascertain
842	842	5 total cannabis consumption in Illinois compared to the
843	843	6 amount of sales in licensed dispensing organizations;
844	844	7 (2) whether there is an adequate supply of cannabis
845	845	8 and cannabis-infused products to serve registered medical
846	846	9 cannabis patients;
847	847	10 (3) whether there is an adequate supply of cannabis
848	848	11 and cannabis-infused products to serve purchasers;
849	849	12 (4) whether there is an oversupply of cannabis in
850	850	13 Illinois leading to trafficking of cannabis to states
851	851	14 where the sale of cannabis is not permitted by law;
852	852	15 (5) population increases or shifts;
853	853	16 (6) the density of craft growers in any area of the
854	854	17 State;
855	855	18 (7) perceived security risks of increasing the number
856	856	19 or location of craft growers;
857	857	20 (8) the past safety record of craft growers;
858	858	21 (9) the Department of Agriculture's capacity to
859	859	22 appropriately regulate additional licensees;
860	860	23 (10) (blank); and
861	861	24 (11) any other criteria the Department of Agriculture
862	862	25 deems relevant.
863	863	26 (c) After January 1, 2024 2022, the Department of
864	864
865	865
866	866
867	867
868	868
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870	870
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874	874	1 Agriculture may by rule modify or raise the number of craft
875	875	2 grower licenses and modify or change the licensing application
876	876	3 process. At no time may the number of craft grower licenses
877	877	4 exceed 150. Any person or entity awarded a license pursuant to
878	878	5 this subsection shall not hold more than 3 craft grower
879	879	6 licenses. A person or entity awarded a license pursuant to
880	880	7 this subsection or subsection (a), (a-5), or (a-10) or
881	881	8 subsection (b) of this Section may sell its craft grower
882	882	9 license or licenses subject to the restrictions of this Act or
883	883	10 as determined by administrative rule.
884	884	11 (d) Upon the completion of the disparity and availability
885	885	12 study pertaining to craft growers by the Cannabis Regulation
886	886	13 Oversight Officer pursuant to subsection (e) of Section 5-45,
887	887	14 the Department may modify or change the licensing application
888	888	15 process to reduce or eliminate barriers from and remedy
889	889	16 evidence of discrimination identified in the disparity and
890	890	17 availability study.
891	891	18 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
892	892	19 102-98, eff. 7-15-21.)
893	893	20 (410 ILCS 705/30-30)
894	894	21 Sec. 30-30. Craft grower requirements; prohibitions.
895	895	22 (a) The operating documents of a craft grower shall
896	896	23 include procedures for the oversight of the craft grower, a
897	897	24 cannabis plant monitoring system including a physical
898	898	25 inventory recorded weekly, accurate recordkeeping, and a
899	899
900	900
901	901
902	902
903	903
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905	905
906	906
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909	909	1 staffing plan.
910	910	2 (b) A craft grower shall implement a security plan
911	911	3 reviewed by the Illinois State Police that includes, but is
912	912	4 not limited to: facility access controls, perimeter intrusion
913	913	5 detection systems, personnel identification systems, and a
914	914	6 24-hour surveillance system to monitor the interior and
915	915	7 exterior of the craft grower facility and that is accessible
916	916	8 to authorized law enforcement and the Department of
917	917	9 Agriculture in real time.
918	918	10 (c) All cultivation of cannabis by a craft grower must
919	919	11 take place in an enclosed, locked facility at the physical
920	920	12 address provided to the Department of Agriculture during the
921	921	13 licensing process. The craft grower location shall only be
922	922	14 accessed by the agents working for the craft grower, the
923	923	15 Department of Agriculture staff performing inspections, the
924	924	16 Department of Public Health staff performing inspections,
925	925	17 State and local law enforcement or other emergency personnel,
926	926	18 contractors working on jobs unrelated to cannabis, such as
927	927	19 installing or maintaining security devices or performing
928	928	20 electrical wiring, transporting organization agents as
929	929	21 provided in this Act, or participants in the incubator
930	930	22 program, individuals in a mentoring or educational program
931	931	23 approved by the State, or other individuals as provided by
932	932	24 rule. However, if a craft grower shares a premises with an
933	933	25 infuser or dispensing organization, agents from those other
934	934	26 licensees may access the craft grower portion of the premises
935	935
936	936
937	937
938	938
939	939
940	940	SB1723 - 25 - LRB103 28854 CPF 55239 b
941	941
942	942
943	943	SB1723- 26 -LRB103 28854 CPF 55239 b SB1723 - 26 - LRB103 28854 CPF 55239 b
944	944	SB1723 - 26 - LRB103 28854 CPF 55239 b
945	945	1 if that is the location of common bathrooms, lunchrooms,
946	946	2 locker rooms, or other areas of the building where work or
947	947	3 cultivation of cannabis is not performed. At no time may an
948	948	4 infuser or dispensing organization agent perform work at a
949	949	5 craft grower without being a registered agent of the craft
950	950	6 grower.
951	951	7 (d) A craft grower may not sell or distribute any cannabis
952	952	8 to any person other than a cultivation center, a craft grower,
953	953	9 an infuser organization, a dispensing organization, or as
954	954	10 otherwise authorized by rule.
955	955	11 (e) A craft grower may not be located in an area zoned for
956	956	12 residential use.
957	957	13 (f) A craft grower may not either directly or indirectly
958	958	14 discriminate in price between different cannabis business
959	959	15 establishments that are purchasing a like grade, strain,
960	960	16 brand, and quality of cannabis or cannabis-infused product.
961	961	17 Nothing in this subsection (f) prevents a craft grower from
962	962	18 pricing cannabis differently based on differences in the cost
963	963	19 of manufacturing or processing, the quantities sold, such as
964	964	20 volume discounts, or the way the products are delivered.
965	965	21 (g) All cannabis harvested by a craft grower and intended
966	966	22 for distribution to a dispensing organization must be entered
967	967	23 into a data collection system, packaged and labeled under
968	968	24 Section 55-21, and, if distribution is to a dispensing
969	969	25 organization that does not share a premises with the
970	970	26 dispensing organization receiving the cannabis, placed into a
971	971
972	972
973	973
974	974
975	975
976	976	SB1723 - 26 - LRB103 28854 CPF 55239 b
977	977
978	978
979	979	SB1723- 27 -LRB103 28854 CPF 55239 b SB1723 - 27 - LRB103 28854 CPF 55239 b
980	980	SB1723 - 27 - LRB103 28854 CPF 55239 b
981	981	1 cannabis container for transport. All cannabis harvested by a
982	982	2 craft grower and intended for distribution to a cultivation
983	983	3 center, to an infuser organization, or to a craft grower with
984	984	4 which it does not share a premises, must be packaged in a
985	985	5 labeled cannabis container and entered into a data collection
986	986	6 system before transport.
987	987	7 (h) Craft growers are subject to random inspections by the
988	988	8 Department of Agriculture, local safety or health inspectors,
989	989	9 the Illinois State Police, or as provided by rule.
990	990	10 (i) A craft grower agent shall notify local law
991	991	11 enforcement, the Illinois State Police, and the Department of
992	992	12 Agriculture within 24 hours of the discovery of any loss or
993	993	13 theft. Notification shall be made by phone, in person, or
994	994	14 written or electronic communication.
995	995	15 (j) A craft grower shall comply with all State and any
996	996	16 applicable federal rules and regulations regarding the use of
997	997	17 pesticides.
998	998	18 (k) A craft grower or craft grower agent shall not
999	999	19 transport cannabis or cannabis-infused products to any other
1000	1000	20 cannabis business establishment without a transport
1001	1001	21 organization license unless:
1002	1002	22 (i) If the craft grower is located in a county with a
1003	1003	23 population of 3,000,000 or more, the cannabis business
1004	1004	24 establishment receiving the cannabis is within 2,000 feet
1005	1005	25 of the property line of the craft grower;
1006	1006	26 (ii) If the craft grower is located in a county with a
1007	1007
1008	1008
1009	1009
1010	1010
1011	1011
1012	1012	SB1723 - 27 - LRB103 28854 CPF 55239 b
1013	1013
1014	1014
1015	1015	SB1723- 28 -LRB103 28854 CPF 55239 b SB1723 - 28 - LRB103 28854 CPF 55239 b
1016	1016	SB1723 - 28 - LRB103 28854 CPF 55239 b
1017	1017	1 population of more than 700,000 but fewer than 3,000,000,
1018	1018	2 the cannabis business establishment receiving the cannabis
1019	1019	3 is within 2 miles of the craft grower; or
1020	1020	4 (iii) If the craft grower is located in a county with a
1021	1021	5 population of fewer than 700,000, the cannabis business
1022	1022	6 establishment receiving the cannabis is within 15 miles of
1023	1023	7 the craft grower.
1024	1024	8 (l) A craft grower may enter into a contract with a
1025	1025	9 transporting organization to transport cannabis to a
1026	1026	10 cultivation center, a craft grower, an infuser organization, a
1027	1027	11 dispensing organization, or a laboratory.
1028	1028	12 (m) No person or entity shall hold any legal, equitable,
1029	1029	13 ownership, or beneficial interest, directly or indirectly, of
1030	1030	14 more than 3 craft grower licenses. Further, no person or
1031	1031	15 entity that is employed by, an agent of, or has a contract to
1032	1032	16 receive payment from or participate in the management of a
1033	1033	17 craft grower, is a principal officer of a craft grower, or
1034	1034	18 entity controlled by or affiliated with a principal officer of
1035	1035	19 a craft grower shall hold any legal, equitable, ownership, or
1036	1036	20 beneficial interest, directly or indirectly, in a craft grower
1037	1037	21 license that would result in the person or entity owning or
1038	1038	22 controlling in combination with any craft grower, principal
1039	1039	23 officer of a craft grower, or entity controlled or affiliated
1040	1040	24 with a principal officer of a craft grower by which he, she, or
1041	1041	25 it is employed, is an agent of, or participates in the
1042	1042	26 management of more than 3 craft grower licenses.
1043	1043
1044	1044
1045	1045
1046	1046
1047	1047
1048	1048	SB1723 - 28 - LRB103 28854 CPF 55239 b
1049	1049
1050	1050
1051	1051	SB1723- 29 -LRB103 28854 CPF 55239 b SB1723 - 29 - LRB103 28854 CPF 55239 b
1052	1052	SB1723 - 29 - LRB103 28854 CPF 55239 b
1053	1053	1 (n) It is unlawful for any person having a craft grower
1054	1054	2 license or any officer, associate, member, representative, or
1055	1055	3 agent of the licensee to offer or deliver money, or anything
1056	1056	4 else of value, directly or indirectly, to any person having an
1057	1057	5 Early Approval Adult Use Dispensing Organization License, a
1058	1058	6 Conditional Adult Use Dispensing Organization License, an
1059	1059	7 Adult Use Dispensing Organization License, or a medical
1060	1060	8 cannabis dispensing organization license issued under the
1061	1061	9 Compassionate Use of Medical Cannabis Program Act, or to any
1062	1062	10 person connected with or in any way representing, or to any
1063	1063	11 member of the family of, the person holding an Early Approval
1064	1064	12 Adult Use Dispensing Organization License, a Conditional Adult
1065	1065	13 Use Dispensing Organization License, an Adult Use Dispensing
1066	1066	14 Organization License, or a medical cannabis dispensing
1067	1067	15 organization license issued under the Compassionate Use of
1068	1068	16 Medical Cannabis Program Act, or to any stockholders in any
1069	1069	17 corporation engaged in the retail sale of cannabis, or to any
1070	1070	18 officer, manager, agent, or representative of the Early
1071	1071	19 Approval Adult Use Dispensing Organization License, a
1072	1072	20 Conditional Adult Use Dispensing Organization License, an
1073	1073	21 Adult Use Dispensing Organization License, or a medical
1074	1074	22 cannabis dispensing organization license issued under the
1075	1075	23 Compassionate Use of Medical Cannabis Program Act to obtain
1076	1076	24 preferential placement within the dispensing organization,
1077	1077	25 including, without limitation, on shelves and in display cases
1078	1078	26 where purchasers can view products, or on the dispensing
1079	1079
1080	1080
1081	1081
1082	1082
1083	1083
1084	1084	SB1723 - 29 - LRB103 28854 CPF 55239 b
1085	1085
1086	1086
1087	1087	SB1723- 30 -LRB103 28854 CPF 55239 b SB1723 - 30 - LRB103 28854 CPF 55239 b
1088	1088	SB1723 - 30 - LRB103 28854 CPF 55239 b
1089	1089	1 organization's website.
1090	1090	2 (o) A craft grower shall not be located within 1,500 feet
1091	1091	3 of another craft grower or a cultivation center.
1092	1092	4 (p) A craft grower may process cannabis, cannabis
1093	1093	5 concentrates, and cannabis-infused products.
1094	1094	6 (q) A craft grower must comply with any other requirements
1095	1095	7 or prohibitions set by administrative rule of the Department
1096	1096	8 of Agriculture.
1097	1097	9 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
1098	1098	10 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
1099	1099	11 5-13-22.)
1100	1100	12 (410 ILCS 705/35-31)
1101	1101	13 Sec. 35-31. Ensuring an adequate supply of raw materials
1102	1102	14 to serve infusers.
1103	1103	15 (a) As used in this Section, "raw materials" includes, but
1104	1104	16 is not limited to, CO2 hash oil, "crude", "distillate", or any
1105	1105	17 other cannabis concentrate extracted from cannabis flower by
1106	1106	18 use of a solvent or a mechanical process.
1107	1107	19 (b) The Department of Agriculture may by rule design a
1108	1108	20 method for assessing whether licensed infusers have access to
1109	1109	21 an adequate supply of reasonably affordable raw materials,
1110	1110	22 which may include but not be limited to: (i) a survey of
1111	1111	23 infusers; (ii) a market study on the sales trends of
1112	1112	24 cannabis-infused products manufactured by infusers; and (iii)
1113	1113	25 the costs cultivation centers and craft growers assume for the
1114	1114
1115	1115
1116	1116
1117	1117
1118	1118
1119	1119	SB1723 - 30 - LRB103 28854 CPF 55239 b
1120	1120
1121	1121
1122	1122	SB1723- 31 -LRB103 28854 CPF 55239 b SB1723 - 31 - LRB103 28854 CPF 55239 b
1123	1123	SB1723 - 31 - LRB103 28854 CPF 55239 b
1124	1124	1 raw materials they use in any cannabis-infused products they
1125	1125	2 manufacture.
1126	1126	3 (b-5) Each adult use cultivation center or Early Approval
1127	1127	4 Adult Use Cultivation Center License holder licensed under
1128	1128	5 Article 20 that produces THC oil extract shall set aside a
1129	1129	6 portion of its total monthly production of THC oil extract to
1130	1130	7 sell to infuser organizations at market price, quality, and
1131	1131	8 variety to provide infuser organizations with an adequate
1132	1132	9 supply for their infusion processes. The portion set aside by
1133	1133	10 each cultivation center or Early Approval Adult Use
1134	1134	11 Cultivation Center License holder shall be on a proportionate,
1135	1135	12 pro rata basis and based upon its total monthly production
1136	1136	13 compared to the industry total monthly production in the
1137	1137	14 previous year as determined by the Department of Agriculture.
1138	1138	15 The total monthly portion of THC oil extract set aside by all
1139	1139	16 cultivation centers and Early Approval Adult Use Cultivation
1140	1140	17 Center License holders shall be as follows:
1141	1141	18 (1) During calendar year 2023, 50,000 grams per month.
1142	1142	19 (2) During calendar year 2024, 60,000 grams per month.
1143	1143	20 (3) During calendar year 2025, 70,000 grams per month.
1144	1144	21 (4) During calendar year 2026, 80,000 grams per month.
1145	1145	22 (5) During calendar year 2027, 90,000 grams per month.
1146	1146	23 The price of THC oil extract shall be the average fair
1147	1147	24 market price as determined quarterly by the Department of
1148	1148	25 Agriculture or an amount equal to 900% of the U.S. Cannabis
1149	1149	26 Spot Index's price for cannabis flower if, during any quarter,
1150	1150
1151	1151
1152	1152
1153	1153
1154	1154
1155	1155	SB1723 - 31 - LRB103 28854 CPF 55239 b
1156	1156
1157	1157
1158	1158	SB1723- 32 -LRB103 28854 CPF 55239 b SB1723 - 32 - LRB103 28854 CPF 55239 b
1159	1159	SB1723 - 32 - LRB103 28854 CPF 55239 b
1160	1160	1 the Department fails to establish a fair market price based
1161	1161	2 upon quality and variety. After January 1, 2024, the monthly
1162	1162	3 portion of THC oil extract may be adjusted by the Department of
1163	1163	4 Agriculture based upon market assessments as provided in
1164	1164	5 subsections (c) and (d).
1165	1165	6 (c) The Department of Agriculture shall perform an
1166	1166	7 assessment of whether infusers have access to an adequate
1167	1167	8 supply of reasonably affordable raw materials that shall start
1168	1168	9 no sooner than January 1, 2022 and shall conclude no later than
1169	1169	10 April 1, 2022. The Department of Agriculture may rely on data
1170	1170	11 from the Illinois Cannabis Regulation Oversight Officer as
1171	1171	12 part of this assessment.
1172	1172	13 (d) The Department of Agriculture shall perform an
1173	1173	14 assessment of whether infusers have access to an adequate
1174	1174	15 supply of reasonably affordable raw materials that shall start
1175	1175	16 no sooner than January 1, 2025 2023 and shall conclude no later
1176	1176	17 than April 1, 2025 2023. The Department of Agriculture may
1177	1177	18 rely on data from the Cannabis Regulation Oversight Officer as
1178	1178	19 part of this assessment.
1179	1179	20 (e) The Department of Agriculture may by rule adopt
1180	1180	21 measures to ensure infusers have access to an adequate supply
1181	1181	22 of reasonably affordable raw materials necessary for the
1182	1182	23 manufacture of cannabis-infused products. Such measures may
1183	1183	24 include, but not be limited to (i) requiring cultivation
1184	1184	25 centers and craft growers to set aside a minimum amount of raw
1185	1185	26 materials for the wholesale market or (ii) enabling infusers
1186	1186
1187	1187
1188	1188
1189	1189
1190	1190
1191	1191	SB1723 - 32 - LRB103 28854 CPF 55239 b
1192	1192
1193	1193
1194	1194	SB1723- 33 -LRB103 28854 CPF 55239 b SB1723 - 33 - LRB103 28854 CPF 55239 b
1195	1195	SB1723 - 33 - LRB103 28854 CPF 55239 b
1196	1196	1 to apply for a processor license to extract raw materials from
1197	1197	2 cannabis flower.
1198	1198	3 (f) If the Department of Agriculture determines processor
1199	1199	4 licenses may be available to infuser organizations based upon
1200	1200	5 findings made pursuant to subsection (e), infuser
1201	1201	6 organizations may submit to the Department of Agriculture on
1202	1202	7 forms provided by the Department of Agriculture the following
1203	1203	8 information as part of an application to receive a processor
1204	1204	9 license:
1205	1205	10 (1) experience with the extraction, processing, or
1206	1206	11 infusing of oils similar to those derived from cannabis,
1207	1207	12 or other business practices to be performed by the
1208	1208	13 infuser;
1209	1209	14 (2) a description of the applicant's experience with
1210	1210	15 manufacturing equipment and chemicals to be used in
1211	1211	16 processing;
1212	1212	17 (3) expertise in relevant scientific fields;
1213	1213	18 (4) a commitment that any cannabis waste, liquid
1214	1214	19 waste, or hazardous waste shall be disposed of in
1215	1215	20 accordance with 8 Ill. Adm. Code 1000.460, except, to the
1216	1216	21 greatest extent feasible, all cannabis plant waste will be
1217	1217	22 rendered unusable by grinding and incorporating the
1218	1218	23 cannabis plant waste with compostable mixed waste to be
1219	1219	24 disposed of in accordance with Ill. Adm. Code
1220	1220	25 1000.460(g)(1); and
1221	1221	26 (5) any other information the Department of
1222	1222
1223	1223
1224	1224
1225	1225
1226	1226
1227	1227	SB1723 - 33 - LRB103 28854 CPF 55239 b
1228	1228
1229	1229
1230	1230	SB1723- 34 -LRB103 28854 CPF 55239 b SB1723 - 34 - LRB103 28854 CPF 55239 b
1231	1231	SB1723 - 34 - LRB103 28854 CPF 55239 b
1232	1232	1 Agriculture deems relevant.
1233	1233	2 (g) The Department of Agriculture may only issue an
1234	1234	3 infuser organization a processor license if, based on the
1235	1235	4 information pursuant to subsection (f) and any other criteria
1236	1236	5 set by the Department of Agriculture, which may include but
1237	1237	6 not be limited an inspection of the site where processing
1238	1238	7 would occur, the Department of Agriculture is reasonably
1239	1239	8 certain the infuser organization will process cannabis in a
1240	1240	9 safe and compliant manner.
1241	1241	10 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
1242	1242	11 (410 ILCS 705/40-25)
1243	1243	12 Sec. 40-25. Transporting organization requirements;
1244	1244	13 prohibitions.
1245	1245	14 (a) The operating documents of a transporting organization
1246	1246	15 shall include procedures for the oversight of the transporter,
1247	1247	16 an inventory monitoring system including a physical inventory
1248	1248	17 recorded weekly, accurate recordkeeping, and a staffing plan.
1249	1249	18 (b) A transporting organization may not transport cannabis
1250	1250	19 or cannabis-infused products to any person other than a
1251	1251	20 cultivation center, a craft grower, an infuser organization, a
1252	1252	21 dispensing organization, a testing facility, a transporting
1253	1253	22 organization depot or other transporting organization transfer
1254	1254	23 facility, or as otherwise authorized by rule. A transporting
1255	1255	24 organization shall be specifically allowed to use the same
1256	1256	25 transport vehicle to pick up or deliver cannabis products from
1257	1257
1258	1258
1259	1259
1260	1260
1261	1261
1262	1262	SB1723 - 34 - LRB103 28854 CPF 55239 b
1263	1263
1264	1264
1265	1265	SB1723- 35 -LRB103 28854 CPF 55239 b SB1723 - 35 - LRB103 28854 CPF 55239 b
1266	1266	SB1723 - 35 - LRB103 28854 CPF 55239 b
1267	1267	1 and to multiple craft growers, processors, and dispensaries
1268	1268	2 during the transporting organization's pick up and delivery
1269	1269	3 process.
1270	1270	4 (c) All cannabis transported by a transporting
1271	1271	5 organization must be entered into a data collection system and
1272	1272	6 placed into a cannabis container for transport.
1273	1273	7 (d) Transporters are subject to random inspections by the
1274	1274	8 Department of Agriculture, the Department of Public Health,
1275	1275	9 the Illinois State Police, or as provided by rule.
1276	1276	10 (e) A transporting organization agent shall notify local
1277	1277	11 law enforcement, the Illinois State Police, and the Department
1278	1278	12 of Agriculture within 24 hours of the discovery of any loss or
1279	1279	13 theft. Notification shall be made by phone, in person, or by
1280	1280	14 written or electronic communication.
1281	1281	15 (f) No person under the age of 21 years shall be in a
1282	1282	16 commercial vehicle or trailer transporting cannabis goods.
1283	1283	17 (g) No person or individual who is not a transporting
1284	1284	18 organization agent shall be in a vehicle while transporting
1285	1285	19 cannabis goods.
1286	1286	20 (h) Transporters may not use commercial motor vehicles
1287	1287	21 with a weight rating of over 10,001 pounds.
1288	1288	22 (i) It is unlawful for any person to offer or deliver
1289	1289	23 money, or anything else of value, directly or indirectly, to
1290	1290	24 any of the following persons to obtain preferential placement
1291	1291	25 within the dispensing organization, including, without
1292	1292	26 limitation, on shelves and in display cases where purchasers
1293	1293
1294	1294
1295	1295
1296	1296
1297	1297
1298	1298	SB1723 - 35 - LRB103 28854 CPF 55239 b
1299	1299
1300	1300
1301	1301	SB1723- 36 -LRB103 28854 CPF 55239 b SB1723 - 36 - LRB103 28854 CPF 55239 b
1302	1302	SB1723 - 36 - LRB103 28854 CPF 55239 b
1303	1303	1 can view products, or on the dispensing organization's
1304	1304	2 website:
1305	1305	3 (1) a person having a transporting organization
1306	1306	4 license, or any officer, associate, member,
1307	1307	5 representative, or agent of the licensee;
1308	1308	6 (2) a person having an Early Applicant Adult Use
1309	1309	7 Dispensing Organization License, an Adult Use Dispensing
1310	1310	8 Organization License, or a medical cannabis dispensing
1311	1311	9 organization license issued under the Compassionate Use of
1312	1312	10 Medical Cannabis Program Act;
1313	1313	11 (3) a person connected with or in any way
1314	1314	12 representing, or a member of the family of, a person
1315	1315	13 holding an Early Applicant Adult Use Dispensing
1316	1316	14 Organization License, an Adult Use Dispensing Organization
1317	1317	15 License, or a medical cannabis dispensing organization
1318	1318	16 license issued under the Compassionate Use of Medical
1319	1319	17 Cannabis Program Act; or
1320	1320	18 (4) a stockholder, officer, manager, agent, or
1321	1321	19 representative of a corporation engaged in the retail sale
1322	1322	20 of cannabis, an Early Applicant Adult Use Dispensing
1323	1323	21 Organization License, an Adult Use Dispensing Organization
1324	1324	22 License, or a medical cannabis dispensing organization
1325	1325	23 license issued under the Compassionate Use of Medical
1326	1326	24 Cannabis Program Act.
1327	1327	25 (j) A transporting organization agent must keep his or her
1328	1328	26 identification card visible at all times when on the property
1329	1329
1330	1330
1331	1331
1332	1332
1333	1333
1334	1334	SB1723 - 36 - LRB103 28854 CPF 55239 b
1335	1335
1336	1336
1337	1337	SB1723- 37 -LRB103 28854 CPF 55239 b SB1723 - 37 - LRB103 28854 CPF 55239 b
1338	1338	SB1723 - 37 - LRB103 28854 CPF 55239 b
1339	1339	1 of a cannabis business establishment and during the
1340	1340	2 transporting of cannabis when acting under his or her duties
1341	1341	3 as a transportation organization agent. During these times,
1342	1342	4 the transporting organization agent must also provide the
1343	1343	5 identification card upon request of any law enforcement
1344	1344	6 officer engaged in his or her official duties.
1345	1345	7 (k) A copy of the transporting organization's registration
1346	1346	8 and a manifest for the delivery shall be present in any vehicle
1347	1347	9 transporting cannabis.
1348	1348	10 (l) Cannabis shall be transported so it is not visible or
1349	1349	11 recognizable from outside the vehicle.
1350	1350	12 (m) A vehicle transporting cannabis must not bear any
1351	1351	13 markings to indicate the vehicle contains cannabis or bear the
1352	1352	14 name or logo of the cannabis business establishment.
1353	1353	15 (n) Cannabis must be transported in an enclosed, locked
1354	1354	16 storage compartment or security cage that is secured or
1355	1355	17 affixed to the vehicle.
1356	1356	18 (o) The Department of Agriculture may, by rule, impose any
1357	1357	19 other requirements or prohibitions on the transportation of
1358	1358	20 cannabis.
1359	1359	21 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
1360	1360	22 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
1361	1361	23 5-13-22.)
1362	1362	24 (410 ILCS 705/60-10)
1363	1363	25 Sec. 60-10. Tax imposed.
1364	1364
1365	1365
1366	1366
1367	1367
1368	1368
1369	1369	SB1723 - 37 - LRB103 28854 CPF 55239 b
1370	1370
1371	1371
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1374	1374	1 (a) Beginning September 1, 2019, a tax is imposed upon the
1375	1375	2 privilege of cultivating cannabis at the rate of 7% of the
1376	1376	3 gross receipts from the first sale of cannabis by a
1377	1377	4 cultivator. The sale of any product that contains any amount
1378	1378	5 of cannabis or any derivative thereof is subject to the tax
1379	1379	6 under this Section on the full selling price of the product.
1380	1380	7 The Department may determine the selling price of the cannabis
1381	1381	8 when the seller and purchaser are affiliated persons, when the
1382	1382	9 sale and purchase of cannabis is not an arm's length
1383	1383	10 transaction, or when cannabis is transferred by a craft grower
1384	1384	11 to the craft grower's dispensing organization or infuser or
1385	1385	12 processing organization and a value is not established for the
1386	1386	13 cannabis. The value determined by the Department shall be
1387	1387	14 commensurate with the actual price received for products of
1388	1388	15 like quality, character, and use in the area. If there are no
1389	1389	16 sales of cannabis of like quality, character, and use in the
1390	1390	17 same area, then the Department shall establish a reasonable
1391	1391	18 value based on sales of products of like quality, character,
1392	1392	19 and use in other areas of the State, taking into consideration
1393	1393	20 any other relevant factors.
1394	1394	21 (a-5) The tax imposed under this Article shall not be
1395	1395	22 assessed against or collected from any craft grower awarded a
1396	1396	23 craft grower license under this Act until 2 years after the
1397	1397	24 date that the license is awarded to the craft grower.
1398	1398	25 (b) The Cannabis Cultivation Privilege Tax imposed under
1399	1399	26 this Article is solely the responsibility of the cultivator
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1410	1410	1 who makes the first sale and is not the responsibility of a
1411	1411	2 subsequent purchaser, a dispensing organization, or an
1412	1412	3 infuser. Persons subject to the tax imposed under this Article
1413	1413	4 may, however, reimburse themselves for their tax liability
1414	1414	5 hereunder by separately stating reimbursement for their tax
1415	1415	6 liability as an additional charge.
1416	1416	7 (c) The tax imposed under this Article shall be in
1417	1417	8 addition to all other occupation, privilege, or excise taxes
1418	1418	9 imposed by the State of Illinois or by any unit of local
1419	1419	10 government.
1420	1420	11 (Source: P.A. 101-27, eff. 6-25-19.)
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