Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3480 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 SB3480 Introduced 2/8/2024, by Sen. Adriane Johnson SYNOPSIS AS INTRODUCED: 410 ILCS 130/115410 ILCS 705/1-10410 ILCS 705/7-1 Amends the Compassionate Use of Medical Cannabis Program Act. Provides that the Department of Financial and Professional Regulation shall adopt rules to create a registration process for Adult Use Dispensing Organization Social Equity Licenses, as defined in the Cannabis Regulation and Tax Act, to sell cannabis under the Act. Provides that the registration process shall be available to all Adult Use Dispensing Organization Social Equity Licenses within 30 days of the issuance of the Adult Use Dispensing Organization Social Equity License. Amends the Cannabis Regulation and Tax Act. Defines "Adult Use Dispensing Organization Social Equity License". In the findings provisions of the Social Equity in the Cannabis Industry Article of the Act, provides that the General Assembly also finds and recognizes that the dispensaries established under the Compassionate Use of Medical Cannabis Program Act enacted in 2014 have inadvertently placed those dispensaries with an Adult Use Dispensing Organization Social Equity License at a competitive disadvantage. Provides that this competitive imbalance stems primarily from the established dispensaries' existing market presence and their capacity to sell cannabis to a well-established medical patient base at lower prices, a benefit derived from the exemption of certain taxes applicable to medical cannabis sales. LRB103 38152 RLC 68285 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3480 Introduced 2/8/2024, by Sen. Adriane Johnson SYNOPSIS AS INTRODUCED: 410 ILCS 130/115410 ILCS 705/1-10410 ILCS 705/7-1 410 ILCS 130/115 410 ILCS 705/1-10 410 ILCS 705/7-1 Amends the Compassionate Use of Medical Cannabis Program Act. Provides that the Department of Financial and Professional Regulation shall adopt rules to create a registration process for Adult Use Dispensing Organization Social Equity Licenses, as defined in the Cannabis Regulation and Tax Act, to sell cannabis under the Act. Provides that the registration process shall be available to all Adult Use Dispensing Organization Social Equity Licenses within 30 days of the issuance of the Adult Use Dispensing Organization Social Equity License. Amends the Cannabis Regulation and Tax Act. Defines "Adult Use Dispensing Organization Social Equity License". In the findings provisions of the Social Equity in the Cannabis Industry Article of the Act, provides that the General Assembly also finds and recognizes that the dispensaries established under the Compassionate Use of Medical Cannabis Program Act enacted in 2014 have inadvertently placed those dispensaries with an Adult Use Dispensing Organization Social Equity License at a competitive disadvantage. Provides that this competitive imbalance stems primarily from the established dispensaries' existing market presence and their capacity to sell cannabis to a well-established medical patient base at lower prices, a benefit derived from the exemption of certain taxes applicable to medical cannabis sales. LRB103 38152 RLC 68285 b LRB103 38152 RLC 68285 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3480 Introduced 2/8/2024, by Sen. Adriane Johnson SYNOPSIS AS INTRODUCED:
3	3	410 ILCS 130/115410 ILCS 705/1-10410 ILCS 705/7-1 410 ILCS 130/115 410 ILCS 705/1-10 410 ILCS 705/7-1
4	4	410 ILCS 130/115
5	5	410 ILCS 705/1-10
6	6	410 ILCS 705/7-1
7	7	Amends the Compassionate Use of Medical Cannabis Program Act. Provides that the Department of Financial and Professional Regulation shall adopt rules to create a registration process for Adult Use Dispensing Organization Social Equity Licenses, as defined in the Cannabis Regulation and Tax Act, to sell cannabis under the Act. Provides that the registration process shall be available to all Adult Use Dispensing Organization Social Equity Licenses within 30 days of the issuance of the Adult Use Dispensing Organization Social Equity License. Amends the Cannabis Regulation and Tax Act. Defines "Adult Use Dispensing Organization Social Equity License". In the findings provisions of the Social Equity in the Cannabis Industry Article of the Act, provides that the General Assembly also finds and recognizes that the dispensaries established under the Compassionate Use of Medical Cannabis Program Act enacted in 2014 have inadvertently placed those dispensaries with an Adult Use Dispensing Organization Social Equity License at a competitive disadvantage. Provides that this competitive imbalance stems primarily from the established dispensaries' existing market presence and their capacity to sell cannabis to a well-established medical patient base at lower prices, a benefit derived from the exemption of certain taxes applicable to medical cannabis sales.
8	8	LRB103 38152 RLC 68285 b LRB103 38152 RLC 68285 b
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10	10	A BILL FOR
11	11	SB3480LRB103 38152 RLC 68285 b SB3480 LRB103 38152 RLC 68285 b
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13	13	1 AN ACT concerning health.
14	14	2 Be it enacted by the People of the State of Illinois,
15	15	3 represented in the General Assembly:
16	16	4 Section 5. The Compassionate Use of Medical Cannabis
17	17	5 Program Act is amended by changing Section 115 as follows:
18	18	6 (410 ILCS 130/115)
19	19	7 Sec. 115. Registration of dispensing organizations.
20	20	8 (a) The Department of Financial and Professional
21	21	9 Regulation may issue up to 60 dispensing organization
22	22	10 registrations for operation. The Department of Financial and
23	23	11 Professional Regulation may not issue less than the 60
24	24	12 registrations if there are qualified applicants who have
25	25	13 applied with the Department of Financial and Professional
26	26	14 Regulation. The organizations shall be geographically
27	27	15 dispersed throughout the State to allow all registered
28	28	16 qualifying patients reasonable proximity and access to a
29	29	17 dispensing organization.
30	30	18 (a-5) The Department of Financial and Professional
31	31	19 Regulation shall adopt rules to create a registration process
32	32	20 for Social Equity Justice Involved Applicants and Qualifying
33	33	21 Applicants, a streamlined application, and a Social Equity
34	34	22 Justice Involved Medical Lottery under Section 115.5 to issue
35	35	23 the remaining available 5 dispensing organization
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39	39	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3480 Introduced 2/8/2024, by Sen. Adriane Johnson SYNOPSIS AS INTRODUCED:
40	40	410 ILCS 130/115410 ILCS 705/1-10410 ILCS 705/7-1 410 ILCS 130/115 410 ILCS 705/1-10 410 ILCS 705/7-1
41	41	410 ILCS 130/115
42	42	410 ILCS 705/1-10
43	43	410 ILCS 705/7-1
44	44	Amends the Compassionate Use of Medical Cannabis Program Act. Provides that the Department of Financial and Professional Regulation shall adopt rules to create a registration process for Adult Use Dispensing Organization Social Equity Licenses, as defined in the Cannabis Regulation and Tax Act, to sell cannabis under the Act. Provides that the registration process shall be available to all Adult Use Dispensing Organization Social Equity Licenses within 30 days of the issuance of the Adult Use Dispensing Organization Social Equity License. Amends the Cannabis Regulation and Tax Act. Defines "Adult Use Dispensing Organization Social Equity License". In the findings provisions of the Social Equity in the Cannabis Industry Article of the Act, provides that the General Assembly also finds and recognizes that the dispensaries established under the Compassionate Use of Medical Cannabis Program Act enacted in 2014 have inadvertently placed those dispensaries with an Adult Use Dispensing Organization Social Equity License at a competitive disadvantage. Provides that this competitive imbalance stems primarily from the established dispensaries' existing market presence and their capacity to sell cannabis to a well-established medical patient base at lower prices, a benefit derived from the exemption of certain taxes applicable to medical cannabis sales.
45	45	LRB103 38152 RLC 68285 b LRB103 38152 RLC 68285 b
46	46	LRB103 38152 RLC 68285 b
47	47	A BILL FOR
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53	53	410 ILCS 130/115
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55	55	410 ILCS 705/7-1
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74	74	1 registrations for operation.
75	75	2 (a-6) The Department of Financial and Professional
76	76	3 Regulation shall adopt rules to create a registration process
77	77	4 for Adult Use Dispensing Organization Social Equity Licenses,
78	78	5 as defined in the Cannabis Regulation and Tax Act, to sell
79	79	6 cannabis under this Act. The registration process shall be
80	80	7 available to all Adult Use Dispensing Organization Social
81	81	8 Equity Licenses within 30 days of the issuance of the Adult Use
82	82	9 Dispensing Organization Social Equity License.
83	83	10 For purposes of this Section:
84	84	11 "Disproportionately Impacted Area" means a census tract or
85	85	12 comparable geographic area that satisfies the following
86	86	13 criteria as determined by the Department of Commerce and
87	87	14 Economic Opportunity, that:
88	88	15 (1) meets at least one of the following criteria:
89	89	16 (A) the area has a poverty rate of at least 20%
90	90	17 according to the latest federal decennial census; or
91	91	18 (B) 75% or more of the children in the area
92	92	19 participate in the federal free lunch program
93	93	20 according to reported statistics from the State Board
94	94	21 of Education; or
95	95	22 (C) at least 20% of the households in the area
96	96	23 receive assistance under the Supplemental Nutrition
97	97	24 Assistance Program; or
98	98	25 (D) the area has an average unemployment rate, as
99	99	26 determined by the Illinois Department of Employment
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110	110	1 Security, that is more than 120% of the national
111	111	2 unemployment average, as determined by the United
112	112	3 States Department of Labor, for a period of at least 2
113	113	4 consecutive calendar years preceding the date of the
114	114	5 application; and
115	115	6 (2) has high rates of arrest, conviction, and
116	116	7 incarceration related to sale, possession, use,
117	117	8 cultivation, manufacture, or transport of cannabis.
118	118	9 "Qualifying Applicant" means an applicant that: (i)
119	119	10 submitted an application pursuant to Section 15-30 of the
120	120	11 Cannabis Regulation and Tax Act that received at least 85% of
121	121	12 250 application points available under Section 15-30 of the
122	122	13 Cannabis Regulation and Tax Act as the applicant's final
123	123	14 score; (ii) received points at the conclusion of the scoring
124	124	15 process for meeting the definition of a "Social Equity
125	125	16 Applicant" as set forth under the Cannabis Regulation and Tax
126	126	17 Act; and (iii) is an applicant that did not receive a
127	127	18 Conditional Adult Use Dispensing Organization License through
128	128	19 a Qualifying Applicant Lottery pursuant to Section 15-35 of
129	129	20 the Cannabis Regulation and Tax Act or any Tied Applicant
130	130	21 Lottery conducted under the Cannabis Regulation and Tax Act.
131	131	22 "Social Equity Justice Involved Applicant" means an
132	132	23 applicant that is an Illinois resident and one of the
133	133	24 following:
134	134	25 (1) an applicant with at least 51% ownership and
135	135	26 control by one or more individuals who have resided for at
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146	146	1 least 5 of the preceding 10 years in a Disproportionately
147	147	2 Impacted Area;
148	148	3 (2) an applicant with at least 51% of ownership and
149	149	4 control by one or more individuals who have been arrested
150	150	5 for, convicted of, or adjudicated delinquent for any
151	151	6 offense that is eligible for expungement under subsection
152	152	7 (i) of Section 5.2 of the Criminal Identification Act; or
153	153	8 (3) an applicant with at least 51% ownership and
154	154	9 control by one or more members of an impacted family.
155	155	10 (b) A dispensing organization may only operate if it has
156	156	11 been issued a registration from the Department of Financial
157	157	12 and Professional Regulation. The Department of Financial and
158	158	13 Professional Regulation shall adopt rules establishing the
159	159	14 procedures for applicants for dispensing organizations.
160	160	15 (c) When applying for a dispensing organization
161	161	16 registration, the applicant shall submit, at a minimum, the
162	162	17 following in accordance with Department of Financial and
163	163	18 Professional Regulation rules:
164	164	19 (1) a non-refundable application fee established by
165	165	20 rule;
166	166	21 (2) the proposed legal name of the dispensing
167	167	22 organization;
168	168	23 (3) the proposed physical address of the dispensing
169	169	24 organization;
170	170	25 (4) the name, address, and date of birth of each
171	171	26 principal officer and board member of the dispensing
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182	182	1 organization, provided that all those individuals shall be
183	183	2 at least 21 years of age;
184	184	3 (5) (blank);
185	185	4 (6) (blank); and
186	186	5 (7) (blank).
187	187	6 (d) The Department of Financial and Professional
188	188	7 Regulation shall conduct a background check of the prospective
189	189	8 dispensing organization agents in order to carry out this
190	190	9 Section. The Department of State Police shall charge a fee for
191	191	10 conducting the criminal history record check, which shall be
192	192	11 deposited in the State Police Services Fund and shall not
193	193	12 exceed the actual cost of the record check. Each person
194	194	13 applying as a dispensing organization agent shall submit a
195	195	14 full set of fingerprints to the Department of State Police for
196	196	15 the purpose of obtaining a State and federal criminal records
197	197	16 check. These fingerprints shall be checked against the
198	198	17 fingerprint records now and hereafter, to the extent allowed
199	199	18 by law, filed in the Department of State Police and Federal
200	200	19 Bureau of Investigation criminal history records databases.
201	201	20 The Department of State Police shall furnish, following
202	202	21 positive identification, all Illinois conviction information
203	203	22 to the Department of Financial and Professional Regulation.
204	204	23 (e) A dispensing organization must pay a registration fee
205	205	24 set by the Department of Financial and Professional
206	206	25 Regulation.
207	207	26 (f) An application for a medical cannabis dispensing
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218	218	1 organization registration must be denied if any of the
219	219	2 following conditions are met:
220	220	3 (1) the applicant failed to submit the materials
221	221	4 required by this Section, including if the applicant's
222	222	5 plans do not satisfy the security, oversight, or
223	223	6 recordkeeping rules issued by the Department of Financial
224	224	7 and Professional Regulation;
225	225	8 (2) the applicant would not be in compliance with
226	226	9 local zoning rules issued in accordance with Section 140;
227	227	10 (3) the applicant does not meet the requirements of
228	228	11 Section 130;
229	229	12 (4) one or more of the prospective principal officers
230	230	13 or board members has been convicted of an excluded
231	231	14 offense;
232	232	15 (5) one or more of the prospective principal officers
233	233	16 or board members has served as a principal officer or
234	234	17 board member for a registered medical cannabis dispensing
235	235	18 organization that has had its registration revoked; and
236	236	19 (6) one or more of the principal officers or board
237	237	20 members is under 21 years of age.
238	238	21 (Source: P.A. 101-363, eff. 8-9-19; 102-98, eff. 7-15-21.)
239	239	22 Section 10. The Cannabis Regulation and Tax Act is amended
240	240	23 by changing Sections 1-10 and 7-1 as follows:
241	241	24 (410 ILCS 705/1-10)
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252	252	1 Sec. 1-10. Definitions. In this Act:
253	253	2 "Adult Use Cultivation Center License" means a license
254	254	3 issued by the Department of Agriculture that permits a person
255	255	4 to act as a cultivation center under this Act and any
256	256	5 administrative rule made in furtherance of this Act.
257	257	6 "Adult Use Dispensing Organization License" means a
258	258	7 license issued by the Department of Financial and Professional
259	259	8 Regulation that permits a person to act as a dispensing
260	260	9 organization under this Act and any administrative rule made
261	261	10 in furtherance of this Act.
262	262	11 "Adult Use Dispensing Organization Social Equity License"
263	263	12 means a license issued by the Department of Financial and
264	264	13 Professional Regulation to a Qualified Social Equity Applicant
265	265	14 with current Ownership and Control that permits a person to
266	266	15 act as a dispensing organization under this Act and any
267	267	16 administrative rule made in furtherance of this Act and the
268	268	17 Compassionate Use of Medical Cannabis Program Act.
269	269	18 "Advertise" means to engage in promotional activities
270	270	19 including, but not limited to: newspaper, radio, Internet and
271	271	20 electronic media, and television advertising; the distribution
272	272	21 of fliers and circulars; billboard advertising; and the
273	273	22 display of window and interior signs. "Advertise" does not
274	274	23 mean exterior signage displaying only the name of the licensed
275	275	24 cannabis business establishment.
276	276	25 "Application points" means the number of points a
277	277	26 Dispensary Applicant receives on an application for a
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288	288	1 Conditional Adult Use Dispensing Organization License.
289	289	2 "BLS Region" means a region in Illinois used by the United
290	290	3 States Bureau of Labor Statistics to gather and categorize
291	291	4 certain employment and wage data. The 17 such regions in
292	292	5 Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
293	293	6 Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
294	294	7 Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
295	295	8 Rockford, St. Louis, Springfield, Northwest Illinois
296	296	9 nonmetropolitan area, West Central Illinois nonmetropolitan
297	297	10 area, East Central Illinois nonmetropolitan area, and South
298	298	11 Illinois nonmetropolitan area.
299	299	12 "By lot" means a randomized method of choosing between 2
300	300	13 or more Eligible Tied Applicants or 2 or more Qualifying
301	301	14 Applicants.
302	302	15 "Cannabis" means marijuana, hashish, and other substances
303	303	16 that are identified as including any parts of the plant
304	304	17 Cannabis sativa and including derivatives or subspecies, such
305	305	18 as indica, of all strains of cannabis, whether growing or not;
306	306	19 the seeds thereof, the resin extracted from any part of the
307	307	20 plant; and any compound, manufacture, salt, derivative,
308	308	21 mixture, or preparation of the plant, its seeds, or resin,
309	309	22 including tetrahydrocannabinol (THC) and all other naturally
310	310	23 produced cannabinol derivatives, whether produced directly or
311	311	24 indirectly by extraction; however, "cannabis" does not include
312	312	25 the mature stalks of the plant, fiber produced from the
313	313	26 stalks, oil or cake made from the seeds of the plant, any other
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324	324	1 compound, manufacture, salt, derivative, mixture, or
325	325	2 preparation of the mature stalks (except the resin extracted
326	326	3 from it), fiber, oil or cake, or the sterilized seed of the
327	327	4 plant that is incapable of germination. "Cannabis" does not
328	328	5 include industrial hemp as defined and authorized under the
329	329	6 Industrial Hemp Act. "Cannabis" also means cannabis flower,
330	330	7 concentrate, and cannabis-infused products.
331	331	8 "Cannabis business establishment" means a cultivation
332	332	9 center, craft grower, processing organization, infuser
333	333	10 organization, dispensing organization, or transporting
334	334	11 organization.
335	335	12 "Cannabis concentrate" means a product derived from
336	336	13 cannabis that is produced by extracting cannabinoids,
337	337	14 including tetrahydrocannabinol (THC), from the plant through
338	338	15 the use of propylene glycol, glycerin, butter, olive oil, or
339	339	16 other typical cooking fats; water, ice, or dry ice; or butane,
340	340	17 propane, CO2, ethanol, or isopropanol and with the intended
341	341	18 use of smoking or making a cannabis-infused product. The use
342	342	19 of any other solvent is expressly prohibited unless and until
343	343	20 it is approved by the Department of Agriculture.
344	344	21 "Cannabis container" means a sealed or resealable,
345	345	22 traceable, container, or package used for the purpose of
346	346	23 containment of cannabis or cannabis-infused product during
347	347	24 transportation.
348	348	25 "Cannabis flower" means marijuana, hashish, and other
349	349	26 substances that are identified as including any parts of the
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360	360	1 plant Cannabis sativa and including derivatives or subspecies,
361	361	2 such as indica, of all strains of cannabis; including raw
362	362	3 kief, leaves, and buds, but not resin that has been extracted
363	363	4 from any part of such plant; nor any compound, manufacture,
364	364	5 salt, derivative, mixture, or preparation of such plant, its
365	365	6 seeds, or resin.
366	366	7 "Cannabis-infused product" means a beverage, food, oil,
367	367	8 ointment, tincture, topical formulation, or another product
368	368	9 containing cannabis or cannabis concentrate that is not
369	369	10 intended to be smoked.
370	370	11 "Cannabis paraphernalia" means equipment, products, or
371	371	12 materials intended to be used for planting, propagating,
372	372	13 cultivating, growing, harvesting, manufacturing, producing,
373	373	14 processing, preparing, testing, analyzing, packaging,
374	374	15 repackaging, storing, containing, concealing, ingesting, or
375	375	16 otherwise introducing cannabis into the human body.
376	376	17 "Cannabis plant monitoring system" or "plant monitoring
377	377	18 system" means a system that includes, but is not limited to,
378	378	19 testing and data collection established and maintained by the
379	379	20 cultivation center, craft grower, or processing organization
380	380	21 and that is available to the Department of Revenue, the
381	381	22 Department of Agriculture, the Department of Financial and
382	382	23 Professional Regulation, and the Illinois State Police for the
383	383	24 purposes of documenting each cannabis plant and monitoring
384	384	25 plant development throughout the life cycle of a cannabis
385	385	26 plant cultivated for the intended use by a customer from seed
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396	396	1 planting to final packaging.
397	397	2 "Cannabis testing facility" means an entity registered by
398	398	3 the Department of Agriculture to test cannabis for potency and
399	399	4 contaminants.
400	400	5 "Clone" means a plant section from a female cannabis plant
401	401	6 not yet rootbound, growing in a water solution or other
402	402	7 propagation matrix, that is capable of developing into a new
403	403	8 plant.
404	404	9 "Community College Cannabis Vocational Training Pilot
405	405	10 Program faculty participant" means a person who is 21 years of
406	406	11 age or older, licensed by the Department of Agriculture, and
407	407	12 is employed or contracted by an Illinois community college to
408	408	13 provide student instruction using cannabis plants at an
409	409	14 Illinois Community College.
410	410	15 "Community College Cannabis Vocational Training Pilot
411	411	16 Program faculty participant Agent Identification Card" means a
412	412	17 document issued by the Department of Agriculture that
413	413	18 identifies a person as a Community College Cannabis Vocational
414	414	19 Training Pilot Program faculty participant.
415	415	20 "Conditional Adult Use Dispensing Organization License"
416	416	21 means a contingent license awarded to applicants for an Adult
417	417	22 Use Dispensing Organization License that reserves the right to
418	418	23 an Adult Use Dispensing Organization License if the applicant
419	419	24 meets certain conditions described in this Act, but does not
420	420	25 entitle the recipient to begin purchasing or selling cannabis
421	421	26 or cannabis-infused products.
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432	432	1 "Conditional Adult Use Cultivation Center License" means a
433	433	2 license awarded to top-scoring applicants for an Adult Use
434	434	3 Cultivation Center License that reserves the right to an Adult
435	435	4 Use Cultivation Center License if the applicant meets certain
436	436	5 conditions as determined by the Department of Agriculture by
437	437	6 rule, but does not entitle the recipient to begin growing,
438	438	7 processing, or selling cannabis or cannabis-infused products.
439	439	8 "Craft grower" means a facility operated by an
440	440	9 organization or business that is licensed by the Department of
441	441	10 Agriculture to cultivate, dry, cure, and package cannabis and
442	442	11 perform other necessary activities to make cannabis available
443	443	12 for sale at a dispensing organization or use at a processing
444	444	13 organization. A craft grower may contain up to 5,000 square
445	445	14 feet of canopy space on its premises for plants in the
446	446	15 flowering state. The Department of Agriculture may authorize
447	447	16 an increase or decrease of flowering stage cultivation space
448	448	17 in increments of 3,000 square feet by rule based on market
449	449	18 need, craft grower capacity, and the licensee's history of
450	450	19 compliance or noncompliance, with a maximum space of 14,000
451	451	20 square feet for cultivating plants in the flowering stage,
452	452	21 which must be cultivated in all stages of growth in an enclosed
453	453	22 and secure area. A craft grower may share premises with a
454	454	23 processing organization or a dispensing organization, or both,
455	455	24 provided each licensee stores currency and cannabis or
456	456	25 cannabis-infused products in a separate secured vault to which
457	457	26 the other licensee does not have access or all licensees
458	458
459	459
460	460
461	461
462	462
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464	464
465	465
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467	467	SB3480 - 13 - LRB103 38152 RLC 68285 b
468	468	1 sharing a vault share more than 50% of the same ownership.
469	469	2 "Craft grower agent" means a principal officer, board
470	470	3 member, employee, or other agent of a craft grower who is 21
471	471	4 years of age or older.
472	472	5 "Craft Grower Agent Identification Card" means a document
473	473	6 issued by the Department of Agriculture that identifies a
474	474	7 person as a craft grower agent.
475	475	8 "Cultivation center" means a facility operated by an
476	476	9 organization or business that is licensed by the Department of
477	477	10 Agriculture to cultivate, process, transport (unless otherwise
478	478	11 limited by this Act), and perform other necessary activities
479	479	12 to provide cannabis and cannabis-infused products to cannabis
480	480	13 business establishments.
481	481	14 "Cultivation center agent" means a principal officer,
482	482	15 board member, employee, or other agent of a cultivation center
483	483	16 who is 21 years of age or older.
484	484	17 "Cultivation Center Agent Identification Card" means a
485	485	18 document issued by the Department of Agriculture that
486	486	19 identifies a person as a cultivation center agent.
487	487	20 "Currency" means currency and coin of the United States.
488	488	21 "Dispensary" means a facility operated by a dispensing
489	489	22 organization at which activities licensed by this Act may
490	490	23 occur.
491	491	24 "Dispensary Applicant" means the Proposed Dispensing
492	492	25 Organization Name as stated on an application for a
493	493	26 Conditional Adult Use Dispensing Organization License.
494	494
495	495
496	496
497	497
498	498
499	499	SB3480 - 13 - LRB103 38152 RLC 68285 b
500	500
501	501
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503	503	SB3480 - 14 - LRB103 38152 RLC 68285 b
504	504	1 "Dispensing organization" means a facility operated by an
505	505	2 organization or business that is licensed by the Department of
506	506	3 Financial and Professional Regulation to acquire cannabis from
507	507	4 a cultivation center, craft grower, processing organization,
508	508	5 or another dispensary for the purpose of selling or dispensing
509	509	6 cannabis, cannabis-infused products, cannabis seeds,
510	510	7 paraphernalia, or related supplies under this Act to
511	511	8 purchasers or to qualified registered medical cannabis
512	512	9 patients and caregivers. As used in this Act, "dispensing
513	513	10 organization" includes a registered medical cannabis
514	514	11 organization as defined in the Compassionate Use of Medical
515	515	12 Cannabis Program Act or its successor Act that has obtained an
516	516	13 Early Approval Adult Use Dispensing Organization License.
517	517	14 "Dispensing organization agent" means a principal officer,
518	518	15 employee, or agent of a dispensing organization who is 21
519	519	16 years of age or older.
520	520	17 "Dispensing organization agent identification card" means
521	521	18 a document issued by the Department of Financial and
522	522	19 Professional Regulation that identifies a person as a
523	523	20 dispensing organization agent.
524	524	21 "Disproportionately Impacted Area" means a census tract or
525	525	22 comparable geographic area that satisfies the following
526	526	23 criteria as determined by the Department of Commerce and
527	527	24 Economic Opportunity, that:
528	528	25 (1) meets at least one of the following criteria:
529	529	26 (A) the area has a poverty rate of at least 20%
530	530
531	531
532	532
533	533
534	534
535	535	SB3480 - 14 - LRB103 38152 RLC 68285 b
536	536
537	537
538	538	SB3480- 15 -LRB103 38152 RLC 68285 b SB3480 - 15 - LRB103 38152 RLC 68285 b
539	539	SB3480 - 15 - LRB103 38152 RLC 68285 b
540	540	1 according to the latest federal decennial census; or
541	541	2 (B) 75% or more of the children in the area
542	542	3 participate in the federal free lunch program
543	543	4 according to reported statistics from the State Board
544	544	5 of Education; or
545	545	6 (C) at least 20% of the households in the area
546	546	7 receive assistance under the Supplemental Nutrition
547	547	8 Assistance Program; or
548	548	9 (D) the area has an average unemployment rate, as
549	549	10 determined by the Illinois Department of Employment
550	550	11 Security, that is more than 120% of the national
551	551	12 unemployment average, as determined by the United
552	552	13 States Department of Labor, for a period of at least 2
553	553	14 consecutive calendar years preceding the date of the
554	554	15 application; and
555	555	16 (2) has high rates of arrest, conviction, and
556	556	17 incarceration related to the sale, possession, use,
557	557	18 cultivation, manufacture, or transport of cannabis.
558	558	19 "Early Approval Adult Use Cultivation Center License"
559	559	20 means a license that permits a medical cannabis cultivation
560	560	21 center licensed under the Compassionate Use of Medical
561	561	22 Cannabis Program Act as of the effective date of this Act to
562	562	23 begin cultivating, infusing, packaging, transporting (unless
563	563	24 otherwise provided in this Act), processing, and selling
564	564	25 cannabis or cannabis-infused product to cannabis business
565	565	26 establishments for resale to purchasers as permitted by this
566	566
567	567
568	568
569	569
570	570
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572	572
573	573
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575	575	SB3480 - 16 - LRB103 38152 RLC 68285 b
576	576	1 Act as of January 1, 2020.
577	577	2 "Early Approval Adult Use Dispensing Organization License"
578	578	3 means a license that permits a medical cannabis dispensing
579	579	4 organization licensed under the Compassionate Use of Medical
580	580	5 Cannabis Program Act as of the effective date of this Act to
581	581	6 begin selling cannabis or cannabis-infused product to
582	582	7 purchasers as permitted by this Act as of January 1, 2020.
583	583	8 "Early Approval Adult Use Dispensing Organization at a
584	584	9 secondary site" means a license that permits a medical
585	585	10 cannabis dispensing organization licensed under the
586	586	11 Compassionate Use of Medical Cannabis Program Act as of the
587	587	12 effective date of this Act to begin selling cannabis or
588	588	13 cannabis-infused product to purchasers as permitted by this
589	589	14 Act on January 1, 2020 at a different dispensary location from
590	590	15 its existing registered medical dispensary location.
591	591	16 "Eligible Tied Applicant" means a Tied Applicant that is
592	592	17 eligible to participate in the process by which a remaining
593	593	18 available license is distributed by lot pursuant to a Tied
594	594	19 Applicant Lottery.
595	595	20 "Enclosed, locked facility" means a room, greenhouse,
596	596	21 building, or other enclosed area equipped with locks or other
597	597	22 security devices that permit access only by cannabis business
598	598	23 establishment agents working for the licensed cannabis
599	599	24 business establishment or acting pursuant to this Act to
600	600	25 cultivate, process, store, or distribute cannabis.
601	601	26 "Enclosed, locked space" means a closet, room, greenhouse,
602	602
603	603
604	604
605	605
606	606
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608	608
609	609
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611	611	SB3480 - 17 - LRB103 38152 RLC 68285 b
612	612	1 building, or other enclosed area equipped with locks or other
613	613	2 security devices that permit access only by authorized
614	614	3 individuals under this Act. "Enclosed, locked space" may
615	615	4 include:
616	616	5 (1) a space within a residential building that (i) is
617	617	6 the primary residence of the individual cultivating 5 or
618	618	7 fewer cannabis plants that are more than 5 inches tall and
619	619	8 (ii) includes sleeping quarters and indoor plumbing. The
620	620	9 space must only be accessible by a key or code that is
621	621	10 different from any key or code that can be used to access
622	622	11 the residential building from the exterior; or
623	623	12 (2) a structure, such as a shed or greenhouse, that
624	624	13 lies on the same plot of land as a residential building
625	625	14 that (i) includes sleeping quarters and indoor plumbing
626	626	15 and (ii) is used as a primary residence by the person
627	627	16 cultivating 5 or fewer cannabis plants that are more than
628	628	17 5 inches tall, such as a shed or greenhouse. The structure
629	629	18 must remain locked when it is unoccupied by people.
630	630	19 "Financial institution" has the same meaning as "financial
631	631	20 organization" as defined in Section 1501 of the Illinois
632	632	21 Income Tax Act, and also includes the holding companies,
633	633	22 subsidiaries, and affiliates of such financial organizations.
634	634	23 "Flowering stage" means the stage of cultivation where and
635	635	24 when a cannabis plant is cultivated to produce plant material
636	636	25 for cannabis products. This includes mature plants as follows:
637	637	26 (1) if greater than 2 stigmas are visible at each
638	638
639	639
640	640
641	641
642	642
643	643	SB3480 - 17 - LRB103 38152 RLC 68285 b
644	644
645	645
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647	647	SB3480 - 18 - LRB103 38152 RLC 68285 b
648	648	1 internode of the plant; or
649	649	2 (2) if the cannabis plant is in an area that has been
650	650	3 intentionally deprived of light for a period of time
651	651	4 intended to produce flower buds and induce maturation,
652	652	5 from the moment the light deprivation began through the
653	653	6 remainder of the marijuana plant growth cycle.
654	654	7 "Individual" means a natural person.
655	655	8 "Infuser organization" or "infuser" means a facility
656	656	9 operated by an organization or business that is licensed by
657	657	10 the Department of Agriculture to directly incorporate cannabis
658	658	11 or cannabis concentrate into a product formulation to produce
659	659	12 a cannabis-infused product.
660	660	13 "Kief" means the resinous crystal-like trichomes that are
661	661	14 found on cannabis and that are accumulated, resulting in a
662	662	15 higher concentration of cannabinoids, untreated by heat or
663	663	16 pressure, or extracted using a solvent.
664	664	17 "Labor peace agreement" means an agreement between a
665	665	18 cannabis business establishment and any labor organization
666	666	19 recognized under the National Labor Relations Act, referred to
667	667	20 in this Act as a bona fide labor organization, that prohibits
668	668	21 labor organizations and members from engaging in picketing,
669	669	22 work stoppages, boycotts, and any other economic interference
670	670	23 with the cannabis business establishment. This agreement means
671	671	24 that the cannabis business establishment has agreed not to
672	672	25 disrupt efforts by the bona fide labor organization to
673	673	26 communicate with, and attempt to organize and represent, the
674	674
675	675
676	676
677	677
678	678
679	679	SB3480 - 18 - LRB103 38152 RLC 68285 b
680	680
681	681
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683	683	SB3480 - 19 - LRB103 38152 RLC 68285 b
684	684	1 cannabis business establishment's employees. The agreement
685	685	2 shall provide a bona fide labor organization access at
686	686	3 reasonable times to areas in which the cannabis business
687	687	4 establishment's employees work, for the purpose of meeting
688	688	5 with employees to discuss their right to representation,
689	689	6 employment rights under State law, and terms and conditions of
690	690	7 employment. This type of agreement shall not mandate a
691	691	8 particular method of election or certification of the bona
692	692	9 fide labor organization.
693	693	10 "Limited access area" means a room or other area under the
694	694	11 control of a cannabis dispensing organization licensed under
695	695	12 this Act and upon the licensed premises where cannabis sales
696	696	13 occur with access limited to purchasers, dispensing
697	697	14 organization owners and other dispensing organization agents,
698	698	15 or service professionals conducting business with the
699	699	16 dispensing organization, or, if sales to registered qualifying
700	700	17 patients, caregivers, provisional patients, and Opioid
701	701	18 Alternative Pilot Program participants licensed pursuant to
702	702	19 the Compassionate Use of Medical Cannabis Program Act are also
703	703	20 permitted at the dispensary, registered qualifying patients,
704	704	21 caregivers, provisional patients, and Opioid Alternative Pilot
705	705	22 Program participants.
706	706	23 "Member of an impacted family" means an individual who has
707	707	24 a parent, legal guardian, child, spouse, or dependent, or was
708	708	25 a dependent of an individual who, prior to the effective date
709	709	26 of this Act, was arrested for, convicted of, or adjudicated
710	710
711	711
712	712
713	713
714	714
715	715	SB3480 - 19 - LRB103 38152 RLC 68285 b
716	716
717	717
718	718	SB3480- 20 -LRB103 38152 RLC 68285 b SB3480 - 20 - LRB103 38152 RLC 68285 b
719	719	SB3480 - 20 - LRB103 38152 RLC 68285 b
720	720	1 delinquent for any offense that is eligible for expungement
721	721	2 under this Act.
722	722	3 "Mother plant" means a cannabis plant that is cultivated
723	723	4 or maintained for the purpose of generating clones, and that
724	724	5 will not be used to produce plant material for sale to an
725	725	6 infuser or dispensing organization.
726	726	7 "Ordinary public view" means within the sight line with
727	727	8 normal visual range of a person, unassisted by visual aids,
728	728	9 from a public street or sidewalk adjacent to real property, or
729	729	10 from within an adjacent property.
730	730	11 "Ownership and control" means ownership of at least 51% of
731	731	12 the business, including corporate stock if a corporation, and
732	732	13 control over the management and day-to-day operations of the
733	733	14 business and an interest in the capital, assets, and profits
734	734	15 and losses of the business proportionate to percentage of
735	735	16 ownership.
736	736	17 "Person" means a natural individual, firm, partnership,
737	737	18 association, joint stock company, joint venture, public or
738	738	19 private corporation, limited liability company, or a receiver,
739	739	20 executor, trustee, guardian, or other representative appointed
740	740	21 by order of any court.
741	741	22 "Possession limit" means the amount of cannabis under
742	742	23 Section 10-10 that may be possessed at any one time by a person
743	743	24 21 years of age or older or who is a registered qualifying
744	744	25 medical cannabis patient or caregiver under the Compassionate
745	745	26 Use of Medical Cannabis Program Act.
746	746
747	747
748	748
749	749
750	750
751	751	SB3480 - 20 - LRB103 38152 RLC 68285 b
752	752
753	753
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755	755	SB3480 - 21 - LRB103 38152 RLC 68285 b
756	756	1 "Principal officer" includes a cannabis business
757	757	2 establishment applicant or licensed cannabis business
758	758	3 establishment's board member, owner with more than 1% interest
759	759	4 of the total cannabis business establishment or more than 5%
760	760	5 interest of the total cannabis business establishment of a
761	761	6 publicly traded company, president, vice president, secretary,
762	762	7 treasurer, partner, officer, member, manager member, or person
763	763	8 with a profit sharing, financial interest, or revenue sharing
764	764	9 arrangement. The definition includes a person with authority
765	765	10 to control the cannabis business establishment, a person who
766	766	11 assumes responsibility for the debts of the cannabis business
767	767	12 establishment and who is further defined in this Act.
768	768	13 "Primary residence" means a dwelling where a person
769	769	14 usually stays or stays more often than other locations. It may
770	770	15 be determined by, without limitation, presence, tax filings;
771	771	16 address on an Illinois driver's license, an Illinois
772	772	17 Identification Card, or an Illinois Person with a Disability
773	773	18 Identification Card; or voter registration. No person may have
774	774	19 more than one primary residence.
775	775	20 "Processing organization" or "processor" means a facility
776	776	21 operated by an organization or business that is licensed by
777	777	22 the Department of Agriculture to either extract constituent
778	778	23 chemicals or compounds to produce cannabis concentrate or
779	779	24 incorporate cannabis or cannabis concentrate into a product
780	780	25 formulation to produce a cannabis product.
781	781	26 "Processing organization agent" means a principal officer,
782	782
783	783
784	784
785	785
786	786
787	787	SB3480 - 21 - LRB103 38152 RLC 68285 b
788	788
789	789
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791	791	SB3480 - 22 - LRB103 38152 RLC 68285 b
792	792	1 board member, employee, or agent of a processing organization.
793	793	2 "Processing organization agent identification card" means
794	794	3 a document issued by the Department of Agriculture that
795	795	4 identifies a person as a processing organization agent.
796	796	5 "Purchaser" means a person 21 years of age or older who
797	797	6 acquires cannabis for a valuable consideration. "Purchaser"
798	798	7 does not include a cardholder under the Compassionate Use of
799	799	8 Medical Cannabis Program Act.
800	800	9 "Qualifying Applicant" means an applicant that submitted
801	801	10 an application pursuant to Section 15-30 that received at
802	802	11 least 85% of 250 application points available under Section
803	803	12 15-30 as the applicant's final score and meets the definition
804	804	13 of "Social Equity Applicant" as set forth under this Section.
805	805	14 "Qualifying Social Equity Justice Involved Applicant"
806	806	15 means an applicant that submitted an application pursuant to
807	807	16 Section 15-30 that received at least 85% of 250 application
808	808	17 points available under Section 15-30 as the applicant's final
809	809	18 score and meets the criteria of either paragraph (1) or (2) of
810	810	19 the definition of "Social Equity Applicant" as set forth under
811	811	20 this Section.
812	812	21 "Qualified Social Equity Applicant" means a Social Equity
813	813	22 Applicant who has been awarded a conditional license under
814	814	23 this Act to operate a cannabis business establishment.
815	815	24 "Resided" means an individual's primary residence was
816	816	25 located within the relevant geographic area as established by
817	817	26 2 of the following:
818	818
819	819
820	820
821	821
822	822
823	823	SB3480 - 22 - LRB103 38152 RLC 68285 b
824	824
825	825
826	826	SB3480- 23 -LRB103 38152 RLC 68285 b SB3480 - 23 - LRB103 38152 RLC 68285 b
827	827	SB3480 - 23 - LRB103 38152 RLC 68285 b
828	828	1 (1) a signed lease agreement that includes the
829	829	2 applicant's name;
830	830	3 (2) a property deed that includes the applicant's
831	831	4 name;
832	832	5 (3) school records;
833	833	6 (4) a voter registration card;
834	834	7 (5) an Illinois driver's license, an Illinois
835	835	8 Identification Card, or an Illinois Person with a
836	836	9 Disability Identification Card;
837	837	10 (6) a paycheck stub;
838	838	11 (7) a utility bill;
839	839	12 (8) tax records; or
840	840	13 (9) any other proof of residency or other information
841	841	14 necessary to establish residence as provided by rule.
842	842	15 "Smoking" means the inhalation of smoke caused by the
843	843	16 combustion of cannabis.
844	844	17 "Social Equity Applicant" means an applicant that is an
845	845	18 Illinois resident that meets one of the following criteria:
846	846	19 (1) an applicant with at least 51% ownership and
847	847	20 control by one or more individuals who have resided for at
848	848	21 least 5 of the preceding 10 years in a Disproportionately
849	849	22 Impacted Area;
850	850	23 (2) an applicant with at least 51% ownership and
851	851	24 control by one or more individuals who:
852	852	25 (i) have been arrested for, convicted of, or
853	853	26 adjudicated delinquent for any offense that is
854	854
855	855
856	856
857	857
858	858
859	859	SB3480 - 23 - LRB103 38152 RLC 68285 b
860	860
861	861
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863	863	SB3480 - 24 - LRB103 38152 RLC 68285 b
864	864	1 eligible for expungement under this Act; or
865	865	2 (ii) is a member of an impacted family;
866	866	3 (3) for applicants with a minimum of 10 full-time
867	867	4 employees, an applicant with at least 51% of current
868	868	5 employees who:
869	869	6 (i) currently reside in a Disproportionately
870	870	7 Impacted Area; or
871	871	8 (ii) have been arrested for, convicted of, or
872	872	9 adjudicated delinquent for any offense that is
873	873	10 eligible for expungement under this Act or member of
874	874	11 an impacted family.
875	875	12 Nothing in this Act shall be construed to preempt or limit
876	876	13 the duties of any employer under the Job Opportunities for
877	877	14 Qualified Applicants Act. Nothing in this Act shall permit an
878	878	15 employer to require an employee to disclose sealed or expunged
879	879	16 offenses, unless otherwise required by law.
880	880	17 "Tied Applicant" means an application submitted by a
881	881	18 Dispensary Applicant pursuant to Section 15-30 that received
882	882	19 the same number of application points under Section 15-30 as
883	883	20 the Dispensary Applicant's final score as one or more
884	884	21 top-scoring applications in the same BLS Region and would have
885	885	22 been awarded a license but for the one or more other
886	886	23 top-scoring applications that received the same number of
887	887	24 application points. Each application for which a Dispensary
888	888	25 Applicant was required to pay a required application fee for
889	889	26 the application period ending January 2, 2020 shall be
890	890
891	891
892	892
893	893
894	894
895	895	SB3480 - 24 - LRB103 38152 RLC 68285 b
896	896
897	897
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899	899	SB3480 - 25 - LRB103 38152 RLC 68285 b
900	900	1 considered an application of a separate Tied Applicant.
901	901	2 "Tied Applicant Lottery" means the process established
902	902	3 under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
903	903	4 Use Dispensing Organization Licenses pursuant to Sections
904	904	5 15-25 and 15-30 among Eligible Tied Applicants.
905	905	6 "Tincture" means a cannabis-infused solution, typically
906	906	7 comprised of alcohol, glycerin, or vegetable oils, derived
907	907	8 either directly from the cannabis plant or from a processed
908	908	9 cannabis extract. A tincture is not an alcoholic liquor as
909	909	10 defined in the Liquor Control Act of 1934. A tincture shall
910	910	11 include a calibrated dropper or other similar device capable
911	911	12 of accurately measuring servings.
912	912	13 "Transporting organization" or "transporter" means an
913	913	14 organization or business that is licensed by the Department of
914	914	15 Agriculture to transport cannabis or cannabis-infused product
915	915	16 on behalf of a cannabis business establishment or a community
916	916	17 college licensed under the Community College Cannabis
917	917	18 Vocational Training Pilot Program.
918	918	19 "Transporting organization agent" means a principal
919	919	20 officer, board member, employee, or agent of a transporting
920	920	21 organization.
921	921	22 "Transporting organization agent identification card"
922	922	23 means a document issued by the Department of Agriculture that
923	923	24 identifies a person as a transporting organization agent.
924	924	25 "Unit of local government" means any county, city,
925	925	26 village, or incorporated town.
926	926
927	927
928	928
929	929
930	930
931	931	SB3480 - 25 - LRB103 38152 RLC 68285 b
932	932
933	933
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935	935	SB3480 - 26 - LRB103 38152 RLC 68285 b
936	936	1 "Vegetative stage" means the stage of cultivation in which
937	937	2 a cannabis plant is propagated to produce additional cannabis
938	938	3 plants or reach a sufficient size for production. This
939	939	4 includes seedlings, clones, mothers, and other immature
940	940	5 cannabis plants as follows:
941	941	6 (1) if the cannabis plant is in an area that has not
942	942	7 been intentionally deprived of light for a period of time
943	943	8 intended to produce flower buds and induce maturation, it
944	944	9 has no more than 2 stigmas visible at each internode of the
945	945	10 cannabis plant; or
946	946	11 (2) any cannabis plant that is cultivated solely for
947	947	12 the purpose of propagating clones and is never used to
948	948	13 produce cannabis.
949	949	14 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
950	950	15 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
951	951	16 5-13-22.)
952	952	17 (410 ILCS 705/7-1)
953	953	18 Sec. 7-1. Findings.
954	954	19 (a) The General Assembly finds that the medical cannabis
955	955	20 industry, established in 2014 through the Compassionate Use of
956	956	21 Medical Cannabis Program Act, has shown that additional
957	957	22 efforts are needed to reduce barriers to ownership. Through
958	958	23 that program, 55 licenses for dispensing organizations and 20
959	959	24 licenses for cultivation centers have been issued. Those
960	960	25 licenses are held by only a small number of businesses, the
961	961
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963	963
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971	971	1 ownership of which does not sufficiently meet the General
972	972	2 Assembly's interest in business ownership that reflects the
973	973	3 population of the State of Illinois and that demonstrates the
974	974	4 need to reduce barriers to entry for individuals and
975	975	5 communities most adversely impacted by the enforcement of
976	976	6 cannabis-related laws.
977	977	7 (b) In the interest of establishing a legal cannabis
978	978	8 industry that is equitable and accessible to those most
979	979	9 adversely impacted by the enforcement of drug-related laws in
980	980	10 this State, including cannabis-related laws, the General
981	981	11 Assembly finds and declares that a social equity program
982	982	12 should be established.
983	983	13 (c) The General Assembly also finds and declares that
984	984	14 individuals who have been arrested or incarcerated due to drug
985	985	15 laws suffer long-lasting negative consequences, including
986	986	16 impacts to employment, business ownership, housing, health,
987	987	17 and long-term financial well-being.
988	988	18 (d) The General Assembly also finds and declares that
989	989	19 family members, especially children, and communities of those
990	990	20 who have been arrested or incarcerated due to drug laws,
991	991	21 suffer from emotional, psychological, and financial harms as a
992	992	22 result of such arrests or incarcerations.
993	993	23 (e) Furthermore, the General Assembly finds and declares
994	994	24 that certain communities have disproportionately suffered the
995	995	25 harms of enforcement of cannabis-related laws. Those
996	996	26 communities face greater difficulties accessing traditional
997	997
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1007	1007	1 banking systems and capital for establishing businesses.
1008	1008	2 (f) The General Assembly also finds that individuals who
1009	1009	3 have resided in areas of high poverty suffer negative
1010	1010	4 consequences, including barriers to entry in employment,
1011	1011	5 business ownership, housing, health, and long-term financial
1012	1012	6 well-being.
1013	1013	7 (g) The General Assembly also finds and declares that
1014	1014	8 promotion of business ownership by individuals who have
1015	1015	9 resided in areas of high poverty and high enforcement of
1016	1016	10 cannabis-related laws furthers an equitable cannabis industry.
1017	1017	11 (g-1) The General Assembly also finds and recognizes that
1018	1018	12 the dispensaries established under the Compassionate Use of
1019	1019	13 Medical Cannabis Program Act enacted in 2014 have
1020	1020	14 inadvertently placed those dispensaries with an Adult Use
1021	1021	15 Dispensing Organization Social Equity License at a competitive
1022	1022	16 disadvantage. This competitive imbalance stems primarily from
1023	1023	17 the established dispensaries' existing market presence and
1024	1024	18 their capacity to sell cannabis to a well-established medical
1025	1025	19 patient base at lower prices, a benefit derived from the
1026	1026	20 exemption of certain taxes applicable to medical cannabis
1027	1027	21 sales.
1028	1028	22 (h) Therefore, in the interest of remedying the harms
1029	1029	23 resulting from the disproportionate enforcement of
1030	1030	24 cannabis-related laws, the General Assembly finds and declares
1031	1031	25 that a social equity program should offer, among other things,
1032	1032	26 financial assistance and license application benefits to
1033	1033
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1036	1036
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