103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3926 Introduced 4/10/2024, by Sen. Kimberly A. Lightford SYNOPSIS AS INTRODUCED: New Act5 ILCS 100/5-45.55 new410 ILCS 705/1-10410 ILCS 705/5-11 new410 ILCS 705/15-35.5 new410 ILCS 705/15-35.11 new410 ILCS 705/15-155410 ILCS 705/20-60 new410 ILCS 705/35-22 new410 ILCS 705/55-35505 ILCS 89/5505 ILCS 89/20815 ILCS 505/2Z from Ch. 121 1/2, par. 262Z Creates the Hemp Consumer Products Act. Creates a hemp consumer product retailer license and a hemp consumer products processor license. Sets forth provisions concerning definitions; applications; licensure; marketing and sale of hemp consumer products; labeling; transportation of hemp; testing requirements; penalties; the administration and enforcement of the Act and rulemaking, including emergency rulemaking, by the Department of Agriculture; and other matters. Amends the Cannabis Regulation and Tax Act. Creates the Intoxicating Hemp-Derived THC Consumer Products Safety Committee. Requires the Committee to produce a report with recommendations on appropriate consumer safety standards and requires certain Departments to provide legislative recommendations to establish a regulatory and enforcement framework for hemp-derived THC products. Authorizes the issuance of an additional 50 Conditional Adult Use Dispensing Organization Licenses and an additional 50 Conditional Infuser Organization Licenses. Provides that a violation of provisions concerning unlicensed practice is an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Sets forth penalties for unlicensed practice as a cultivation center, infuser, or craft grower. Makes other changes. Amends the Illinois Administrative Procedure Act, the Industrial Hemp Act, and the Consumer Fraud and Deceptive Business Practices Act to make conforming changes. Effective immediately. LRB103 40218 CES 72109 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3926 Introduced 4/10/2024, by Sen. Kimberly A. Lightford SYNOPSIS AS INTRODUCED: New Act5 ILCS 100/5-45.55 new410 ILCS 705/1-10410 ILCS 705/5-11 new410 ILCS 705/15-35.5 new410 ILCS 705/15-35.11 new410 ILCS 705/15-155410 ILCS 705/20-60 new410 ILCS 705/35-22 new410 ILCS 705/55-35505 ILCS 89/5505 ILCS 89/20815 ILCS 505/2Z from Ch. 121 1/2, par. 262Z New Act 5 ILCS 100/5-45.55 new 410 ILCS 705/1-10 410 ILCS 705/5-11 new 410 ILCS 705/15-35.5 new 410 ILCS 705/15-35.11 new 410 ILCS 705/15-155 410 ILCS 705/20-60 new 410 ILCS 705/35-22 new 410 ILCS 705/55-35 505 ILCS 89/5 505 ILCS 89/20 815 ILCS 505/2Z from Ch. 121 1/2, par. 262Z Creates the Hemp Consumer Products Act. Creates a hemp consumer product retailer license and a hemp consumer products processor license. Sets forth provisions concerning definitions; applications; licensure; marketing and sale of hemp consumer products; labeling; transportation of hemp; testing requirements; penalties; the administration and enforcement of the Act and rulemaking, including emergency rulemaking, by the Department of Agriculture; and other matters. Amends the Cannabis Regulation and Tax Act. Creates the Intoxicating Hemp-Derived THC Consumer Products Safety Committee. Requires the Committee to produce a report with recommendations on appropriate consumer safety standards and requires certain Departments to provide legislative recommendations to establish a regulatory and enforcement framework for hemp-derived THC products. Authorizes the issuance of an additional 50 Conditional Adult Use Dispensing Organization Licenses and an additional 50 Conditional Infuser Organization Licenses. Provides that a violation of provisions concerning unlicensed practice is an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Sets forth penalties for unlicensed practice as a cultivation center, infuser, or craft grower. Makes other changes. Amends the Illinois Administrative Procedure Act, the Industrial Hemp Act, and the Consumer Fraud and Deceptive Business Practices Act to make conforming changes. Effective immediately. LRB103 40218 CES 72109 b LRB103 40218 CES 72109 b A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3926 Introduced 4/10/2024, by Sen. Kimberly A. Lightford SYNOPSIS AS INTRODUCED:
New Act5 ILCS 100/5-45.55 new410 ILCS 705/1-10410 ILCS 705/5-11 new410 ILCS 705/15-35.5 new410 ILCS 705/15-35.11 new410 ILCS 705/15-155410 ILCS 705/20-60 new410 ILCS 705/35-22 new410 ILCS 705/55-35505 ILCS 89/5505 ILCS 89/20815 ILCS 505/2Z from Ch. 121 1/2, par. 262Z New Act 5 ILCS 100/5-45.55 new 410 ILCS 705/1-10 410 ILCS 705/5-11 new 410 ILCS 705/15-35.5 new 410 ILCS 705/15-35.11 new 410 ILCS 705/15-155 410 ILCS 705/20-60 new 410 ILCS 705/35-22 new 410 ILCS 705/55-35 505 ILCS 89/5 505 ILCS 89/20 815 ILCS 505/2Z from Ch. 121 1/2, par. 262Z
New Act
5 ILCS 100/5-45.55 new
410 ILCS 705/1-10
410 ILCS 705/5-11 new
410 ILCS 705/15-35.5 new
410 ILCS 705/15-35.11 new
410 ILCS 705/15-155
410 ILCS 705/20-60 new
410 ILCS 705/35-22 new
410 ILCS 705/55-35
505 ILCS 89/5
505 ILCS 89/20
815 ILCS 505/2Z from Ch. 121 1/2, par. 262Z
Creates the Hemp Consumer Products Act. Creates a hemp consumer product retailer license and a hemp consumer products processor license. Sets forth provisions concerning definitions; applications; licensure; marketing and sale of hemp consumer products; labeling; transportation of hemp; testing requirements; penalties; the administration and enforcement of the Act and rulemaking, including emergency rulemaking, by the Department of Agriculture; and other matters. Amends the Cannabis Regulation and Tax Act. Creates the Intoxicating Hemp-Derived THC Consumer Products Safety Committee. Requires the Committee to produce a report with recommendations on appropriate consumer safety standards and requires certain Departments to provide legislative recommendations to establish a regulatory and enforcement framework for hemp-derived THC products. Authorizes the issuance of an additional 50 Conditional Adult Use Dispensing Organization Licenses and an additional 50 Conditional Infuser Organization Licenses. Provides that a violation of provisions concerning unlicensed practice is an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Sets forth penalties for unlicensed practice as a cultivation center, infuser, or craft grower. Makes other changes. Amends the Illinois Administrative Procedure Act, the Industrial Hemp Act, and the Consumer Fraud and Deceptive Business Practices Act to make conforming changes. Effective immediately.
LRB103 40218 CES 72109 b LRB103 40218 CES 72109 b
LRB103 40218 CES 72109 b
A BILL FOR
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SB3926 LRB103 40218 CES 72109 b
1 AN ACT concerning regulation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the Hemp
5 Consumer Products Act.
6 Section 5. Definitions. In this Act:
7 "Accreditation body" means an impartial non-profit
8 organization that operates in conformance with the
9 International Organization for Standardization
10 (ISO)/International Electrotechnical Commission (IEC)
11 standard 17011 and is a signatory to the International
12 Laboratory Accreditation Cooperation (ILAC) Mutual Recognition
13 Arrangement (MRA) for Testing.
14 "Artificially derived cannabinoid" means a cannabinoid
15 that is created by a chemical reaction that changes the
16 molecular structure of any chemical substance derived from
17 Cannabis sativa.
18 "Department" means the Department of Agriculture.
19 "Director" means the Director of Agriculture.
20 "Hemp consumer product" means a product offered for sale
21 or distribution that:
22 (1) contains naturally occurring hemp
23 phytocannabinoids;
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3926 Introduced 4/10/2024, by Sen. Kimberly A. Lightford SYNOPSIS AS INTRODUCED:
New Act5 ILCS 100/5-45.55 new410 ILCS 705/1-10410 ILCS 705/5-11 new410 ILCS 705/15-35.5 new410 ILCS 705/15-35.11 new410 ILCS 705/15-155410 ILCS 705/20-60 new410 ILCS 705/35-22 new410 ILCS 705/55-35505 ILCS 89/5505 ILCS 89/20815 ILCS 505/2Z from Ch. 121 1/2, par. 262Z New Act 5 ILCS 100/5-45.55 new 410 ILCS 705/1-10 410 ILCS 705/5-11 new 410 ILCS 705/15-35.5 new 410 ILCS 705/15-35.11 new 410 ILCS 705/15-155 410 ILCS 705/20-60 new 410 ILCS 705/35-22 new 410 ILCS 705/55-35 505 ILCS 89/5 505 ILCS 89/20 815 ILCS 505/2Z from Ch. 121 1/2, par. 262Z
New Act
5 ILCS 100/5-45.55 new
410 ILCS 705/1-10
410 ILCS 705/5-11 new
410 ILCS 705/15-35.5 new
410 ILCS 705/15-35.11 new
410 ILCS 705/15-155
410 ILCS 705/20-60 new
410 ILCS 705/35-22 new
410 ILCS 705/55-35
505 ILCS 89/5
505 ILCS 89/20
815 ILCS 505/2Z from Ch. 121 1/2, par. 262Z
Creates the Hemp Consumer Products Act. Creates a hemp consumer product retailer license and a hemp consumer products processor license. Sets forth provisions concerning definitions; applications; licensure; marketing and sale of hemp consumer products; labeling; transportation of hemp; testing requirements; penalties; the administration and enforcement of the Act and rulemaking, including emergency rulemaking, by the Department of Agriculture; and other matters. Amends the Cannabis Regulation and Tax Act. Creates the Intoxicating Hemp-Derived THC Consumer Products Safety Committee. Requires the Committee to produce a report with recommendations on appropriate consumer safety standards and requires certain Departments to provide legislative recommendations to establish a regulatory and enforcement framework for hemp-derived THC products. Authorizes the issuance of an additional 50 Conditional Adult Use Dispensing Organization Licenses and an additional 50 Conditional Infuser Organization Licenses. Provides that a violation of provisions concerning unlicensed practice is an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Sets forth penalties for unlicensed practice as a cultivation center, infuser, or craft grower. Makes other changes. Amends the Illinois Administrative Procedure Act, the Industrial Hemp Act, and the Consumer Fraud and Deceptive Business Practices Act to make conforming changes. Effective immediately.
LRB103 40218 CES 72109 b LRB103 40218 CES 72109 b
LRB103 40218 CES 72109 b
A BILL FOR
New Act
5 ILCS 100/5-45.55 new
410 ILCS 705/1-10
410 ILCS 705/5-11 new
410 ILCS 705/15-35.5 new
410 ILCS 705/15-35.11 new
410 ILCS 705/15-155
410 ILCS 705/20-60 new
410 ILCS 705/35-22 new
410 ILCS 705/55-35
505 ILCS 89/5
505 ILCS 89/20
815 ILCS 505/2Z from Ch. 121 1/2, par. 262Z
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1 (2) is intended for consumption by any means,
2 including, but not limited to, oral ingestion, inhalation,
3 smoking, or topical absorption;
4 (3) contains a total tetrahydrocannabinol
5 concentration of no greater than:
6 (a) 0.3% for any intermediate or finished plant
7 product or material, or any hemp consumer product
8 intended for consumption by inhalation or smoking; or
9 (b) 0.5 milligrams per serving or individual
10 product unit, and 2 milligrams per package for
11 products sold in multiple servings or units, for any
12 beverage, food, oil, ointment, tincture, topical
13 formation, or any other product that is intended for
14 human consumption by means other than inhalation or
15 smoking; and
16 (4) contains an amount of total hemp cannabinoid
17 concentration that is at least 25 times greater than the
18 amount of total tetrahydrocannabinol concentration per
19 serving and per package.
20 "Hemp cannabinoid" means a naturally occurring
21 phytocannabinoid derived from the hemp plant that does not
22 have an intoxicating effect on the mind and body, as
23 determined by the Department by rule, including:
24 (1) cannabidiol (CBD);
25 (2) cannabichromene (CBC);
26 (3) cannabicitran (CBT);
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1 (4) cannabicyclol (CBL);
2 (5) cannabielsoin (CBE);
3 (6) cannabigerol (CBG);
4 (7) cannabidivarin (CBDV); or
5 (8) cannabinol (CBN).
6 "Hemp consumer products processor" means a person or
7 entity licensed to source industrial hemp plant material from
8 a licensed hemp cultivator, and process, manufacture, and
9 distribute finished hemp consumer products to hemp consumer
10 products retailers under the product forms, product standards,
11 limits, packaging, labeling, minimum testing, and other
12 requirements under this Act and the rules and guidance
13 established by the Department.
14 "Hemp consumer products retailer" means a person or entity
15 licensed to sell finished hemp consumer products to consumers
16 under the product forms, product standards, limits, packaging,
17 labeling, minimum testing, and other requirements set forth
18 under this Act and under rules and guidance established by the
19 Department.
20 "Scope of accreditation" means a document issued by an
21 accreditation body that attests to the laboratory's competence
22 to carry out specific testing and analysis.
23 "Synthetic cannabinoid" means a cannabinoid-like compound
24 that was produced using chemical synthesis, chemical
25 modification, or chemical conversion, including in vitro
26 biosynthesis or other bioconversion of such a method.
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1 Synthetic cannabinoids include the conversion of cannabinoids
2 from one chemical structure to another, such as
3 tetrahydrocannabinol that was produced by the conversion of
4 cannabidiol.
5 "Testing laboratory" means an independent, third-party
6 laboratory, contracted by a licensee to test hemp consumer
7 products.
8 "Tetrahydrocannabinol" or "THC" means any naturally
9 occurring or synthetic tetrahydrocannabinol, including its
10 salts, isomers, and salts of isomers whenever the existence of
11 such salts, isomers, and salts of isomers is possible within
12 the specific chemical designation and any preparation,
13 mixture, or substance containing, or mixed or infused with,
14 any detectable amount of tetrahydrocannabinol or
15 tetrahydrocannabolic acid, including, but not limited to,
16 delta-8-tetrahydrocannabinol, delta-9-tetrahydrocannabinol,
17 delta-10-tetrahydrocannabinol, tetrahydrocannabolic acid,
18 tetrahydrocannabipherol, or hexahydrocannabinol, however
19 derived, or any other substance determined to have similar
20 intoxicating effects on the mind or body by the Department.
21 For the purposes of this definition, "isomer" means the
22 optical, position, and geometric isomers.
23 Section 10. Prohibitions.
24 (a) No person shall process, manufacture, label,
25 distribute for sale, sell, offer for sale, market, or
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1 advertise any hemp consumer product within this State without
2 obtaining a license under this Act.
3 (b) No licensee may convert or concentrate cannabinoids to
4 create isomers of THC, however derived.
5 (c) No licensee may sell hemp consumer products that were
6 created using the conversion or concentration of cannabinoids
7 to create isomers of THC, however derived.
8 (d) No licensee shall process, manufacture, distribute for
9 sale, sell, offer for sale, market, or advertise any hemp
10 consumer product unless the product complies with the
11 labeling, packaging, minimum testing, and other requirements
12 of this Act and any administrative rules adopted by the
13 Department.
14 (e) A product that has a THC concentration greater than
15 the limits set forth for hemp consumer products as defined in
16 this Act shall be regulated as cannabis as defined in the
17 Cannabis Regulation and Tax Act, whether or not the product is
18 made with or derived from hemp, industrial hemp, or derived
19 from natural or synthetic sources.
20 (f) No product intended for consumption by any means that
21 is derived from hemp or marketed as hemp shall be distributed
22 for sale, offered for sale, or sold to a consumer within this
23 State unless it meets the minimum requirements of this Act.
24 Section 15. Applications and licensing.
25 (a) The Department shall create applicable rules,
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1 guidance, and forms for licensing of hemp consumer products
2 retailers and hemp consumer products processors.
3 (b) An application for licensure shall be submitted to the
4 Department on a form prescribed by the Department, which shall
5 include:
6 (1) the name, address, and telephone number of the
7 applicant;
8 (2) identification of all real property, buildings,
9 and facilities that will be used for the processing,
10 manufacturing, distribution, or retail sale of hemp, as
11 applicable;
12 (3) the days and hours of operation;
13 (4) the federal employer identification number of the
14 applicant;
15 (5) for applicants that intend to extract hemp into
16 hemp consumer products:
17 (A) identification of all extraction methods that
18 will be used to carry out the extraction; and
19 (B) evidence of Good Manufacturing Practices used
20 in the extraction of hemp and manufacturing of hemp
21 consumer products, including proof of a qualified
22 third-party Good Manufacturing Practices audit;
23 (6) a copy and description of any other license or
24 licenses issued by state or federal authorities related to
25 hemp or cannabis operations or ancillary services;
26 (7) a summary of the sources of industrial, hemp
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1 materials, hemp consumer products, and hemp extract to be
2 used, as applicable;
3 (8) types of hemp consumer products to be manufactured
4 or sold, and an attestation that all hemp consumer
5 products will be manufactured or sold in conformance with
6 this Act and rules and guidelines adopted by the
7 Department;
8 (9) an attestation that the applicant's standard
9 operating procedures will incorporate any language or
10 requirements provided by the Department to adequately
11 address quality assurance, security, and a plan to ensure
12 all hemp and hemp extract obtained meets the requirements
13 of this Act and rules adopted by the Department;
14 (10) a description of any other businesses or business
15 activities conducted on the premises to be licensed;
16 (11) copies of the organizational documents of the
17 applicant;
18 (12) identification of the person or persons with the
19 ability to direct the activity of the applicant or
20 licensee, including principals, officers, or others with
21 such control; and
22 (13) any other information required by the Department.
23 (c) Prior to submission, applicants shall verify the truth
24 and veracity of the information contained in the application.
25 (d) The Department may reject or deny an application if it
26 determines that the information contained therein is
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1 incomplete, false, inaccurate, or omits a material fact.
2 (e) Applications require a non-refundable application fee
3 of $1,000 for hemp consumer product processors and $100 for
4 hemp consumer products retailers.
5 (f) Licenses shall not be transferable or assignable
6 without prior written approval of the Department including,
7 without limitation, to another licensee.
8 (g) Applications are valid for a period of one year and
9 must be renewed annually.
10 (i) An application to renew any license issued under this
11 Act shall be filed with the Department not more than 90 days
12 nor less than 30 days prior to the expiration thereof. If a
13 renewal application is not filed at least 30 days prior to the
14 expiration thereof, the Department may determine that the
15 license shall expire and become void on such expiration date.
16 (h) The Department may revoke any license issued under
17 this Act for failure to adhere to the requirements of this Act
18 and the rules adopted by the Department.
19 (i) Hemp consumer products retailer applicants who submit
20 a completed application to the Department on or before October
21 1, 2024 may sell hemp consumer products at retail to consumers
22 before having a license approved or denied by the Department
23 so long as the hemp consumer products retail applicant adheres
24 to all requirements of this Act while the application is under
25 review.
26 (1) Upon approval, the hemp consumer products retailer
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1 may continue to operate in accordance with this Act.
2 (2) If denied, applicants shall cease to operate as a
3 hemp consumer products retailer and processor, unless and
4 until the applicant is later awarded and issued a license
5 by the Department.
6 Section 20. Requirements for hemp consumer products
7 licensees.
8 (a) The Department shall license and regulate hemp
9 consumer products processors for the purpose of allowing
10 processors to obtain and source lawful industrial hemp and
11 hemp plant materials for manufacturing and processing finished
12 hemp consumer products in accordance with this Act.
13 (b) All hemp consumer products processors shall:
14 (1) extract hemp extract or manufacture hemp consumer
15 products to Good Manufacturing Practices standards, and
16 maintain a qualified third-party certification to the
17 satisfaction of the Department, for the applicable Good
18 Manufacturing Practices standard or standards for the
19 duration of the license;
20 (2) maintain standard operating procedures and quality
21 control standards to ensure consistency of hemp extract or
22 hemp consumer products, including, but not limited to,
23 product purity, strength, and composition;
24 (3) maintain sufficient records to demonstrate that
25 any hemp or hemp extract used by the licensee was grown,
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1 derived, extracted, and transported in accordance with
2 applicable laws and licensing requirements of the
3 jurisdiction or jurisdictions from which such hemp or hemp
4 extract was sourced;
5 (A) such records shall include any pesticides used
6 in the growing of such hemp, the dates each shipment
7 was received, adequate chain of custody to demonstrate
8 from whom the licensee purchased such hemp or hemp
9 extract, and certificates of analysis;
10 (B) for hemp received from an out-of-state grower,
11 processors shall also maintain records of the
12 out-of-state grower registration or license number in
13 the respective jurisdiction;
14 (4) keep all designated extracting and manufacturing
15 areas safe and sanitary, including, but not limited to,
16 ensuring that those areas are adequately lit, cleaned, and
17 smoke-free and that no food is consumed in those areas;
18 (5) provide all employees performing extraction or
19 manufacturing with adequate training and proper safety
20 equipment;
21 (6) manufacture hemp consumer products in accordance
22 with the product forms, limits, and other requirements of
23 this Act;
24 (7) test a statistically significant number of hemp
25 consumer products per lot or batch at a third-party
26 testing laboratory meeting all the requirements in this
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1 Act and maintain a certificate of analysis for all samples
2 tested;
3 (8) maintain sufficient records pertaining to the
4 calibration and inspection of instruments used in
5 extraction and manufacturing of hemp consumer products;
6 (9) report, in a frequency and manner prescribed by
7 the Department, the total production and sales of the
8 licensee during the reporting period;
9 (10) ensure the security of the licensed premises to
10 prevent unauthorized individuals from entering the
11 facility and to prevent hemp extract or hemp consumer
12 products from being diverted from the facility;
13 (11) not use, in the extraction or manufacturing of
14 any hemp consumer products, synthetic cannabinoids,
15 artificially derived cannabinoids, or
16 tetrahydrocannabinol created through isomerization;
17 (12) assign a lot or batch number to each lot of hemp
18 extract or hemp consumer product that is extracted or
19 manufactured by a licensee;
20 (13) maintain records to document and track any
21 tetrahydrocannabinol extracted from hemp or found within
22 hemp extract throughout the extraction and manufacturing
23 process, including records pertaining to the amount used
24 in hemp consumer products and the disposal of all hemp
25 extract, tetrahydrocannabinol, or by-product; and
26 (14) maintain any and all records required by this Act
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1 for at least 3 years and immediately produce such records
2 upon request of the Department.
3 (c) The Department shall license and regulate hemp
4 consumer products retailers for the purpose of allowing
5 consumers to obtain and source lawful finished hemp consumer
6 products, subject to minimum consumer protection safeguards
7 for sale to consumers in accordance with this Act.
8 (d) All hemp consumer products retailers shall:
9 (1) only sell hemp consumer products manufactured,
10 packaged, labeled and tested in accordance with this Act;
11 (2) not sell, offer for sale, market, or advertise
12 cannabis, medical cannabis, or any product that exceeds
13 the THC limits set forth in this Act;
14 (3) market, advertise, or hold oneself out as
15 authorized to sell or dispense cannabis, medical cannabis,
16 or any product that exceeds the THC limits set forth in
17 this Act;
18 (4) post in a manner visible to consumers any and all
19 signs or posted placards required by the Department,
20 including posting of the hemp consumer products retailers
21 license issued by the Department, in a conspicuous
22 location on the premises of each retail location;
23 (5) maintain sufficient records of where hemp consumer
24 products were purchased from for the license period,
25 including the name of the hemp consumer processor and the
26 wholesaler or permitted distributor, as applicable; and
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1 (6) permit announced or unannounced inspections of any
2 retail location offering hemp consumer products. This
3 inspection may include taking samples of hemp consumer
4 products to ensure compliance with all the requirements of
5 this Act.
6 (e) All licensees under this Act shall:
7 (1) monitor complaints from hemp consumer retailers
8 and consumers and have a mechanism in place to notify the
9 licensee's supply chain to recall products when directed
10 by the Department;
11 (2) notify the Department within 24 hours after
12 learning of a serious adverse event; and
13 (3) ensure the proper disposal, beyond reclamation, of
14 any hemp extract or by-product from the extraction and
15 manufacture process with a total tetrahydrocannabinol
16 concentration greater than the THC limits established
17 under this Act for hemp consumer products. The disposal
18 shall render the hemp extract or by-product unusable for
19 any intoxicating purpose.
20 (f) The Department may conduct announced or unannounced
21 premises or product inspections, including, but not limited
22 to, inspection, sampling, and testing of hemp, hemp extract,
23 hemp consumer products, or any solvents, chemicals, or
24 materials used by the licensee.
25 Section 25. Hemp consumer products requirements.
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1 (a) All hemp consumer products manufactured, processed,
2 distributed, sold, or offered for sale in this State shall:
3 (1) be manufactured in accordance with this Act;
4 (2) be subject to the following minimum requirements:
5 (a) contain naturally occurring hemp
6 phytocannabinoids;
7 (B) be intended for consumption by any means,
8 including, but not limited to, oral ingestion,
9 inhalation, smoking, or topical absorption;
10 (C) contain a total tetrahydrocannabinol
11 concentration of no greater than:
12 (i) 0.3% for any intermediate or finished
13 plant product or material, or any hemp consumer
14 product intended for consumption by inhalation or
15 smoking; or
16 (ii) 0.5 milligrams per serving or individual
17 product unit, and 2 milligrams per package for
18 products sold in multiple servings or units, for
19 any beverage, food, oil, ointment, tincture,
20 topical formation, or any other product that is
21 intended for human consumption by means other than
22 inhalation or smoking;
23 (4) contain an amount of total hemp cannabinoid
24 concentration that is at least 25 times greater than
25 the amount of total tetrahydrocannabinol concentration
26 per serving and per package;
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1 (3) not contain liquor, wine, beer, or cider or meet
2 the definition of alcoholic liquor under the Liquor
3 Control Act of 1934;
4 (4) not contain tobacco or nicotine in the product;
5 (5) accurately reflect testing results and not contain
6 less than 90% or more than 110% of the concentration of
7 total cannabinoid content as listed on the product label;
8 (6) be prepackaged and not added to food or any other
9 consumable products at the point of sale;
10 (7) comply with product testing standards set forth in
11 this Act; and
12 (8) not contain synthetic cannabinoids, artificially
13 derived cannabinoids, or cannabinoids created through
14 isomerization, including tetrahydrocannabinol created
15 through isomerization.
16 (b) All concentrated hemp consumer products intended for
17 inhalation or vaporization shall meet the following additional
18 requirements:
19 (1) be a closed system with a prefilled disposable
20 cartridge that attaches to a rechargeable battery, or a
21 single-use product that cannot be recharged;
22 (2) electronic vaporization devices shall have
23 internal or external temperature controls to prevent
24 combustion and have a heating element made of inert
25 material, such as glass, ceramic, or stainless steel, and
26 not plastic or rubber;
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1 (3) except for hemp-derived terpenes, excipients and
2 ingredients must be pharmaceutical grade, unless otherwise
3 approved by the Department, and shall not include:
4 (A) synthetic terpenes;
5 (B) polyethylene glycol (PEG);
6 (C) vitamin E acetate;
7 (D) medium chain triglycerides (MCT oil);
8 (E) medicinal compounds;
9 (F) illegal or controlled substances;
10 (G) artificial food coloring;
11 (H) benzoic acid;
12 (I) diketones; or
13 (J) any other compound or ingredient as determined
14 by the Department in rules;
15 (4) not contain any flavors or flavoring agents,
16 except for hemp-derived terpenes; and
17 (5) include a Department-approved symbol, as set out
18 by rule, in a manner that is clear and conspicuous.
19 Section 30. Packaging and labeling of hemp consumer
20 products.
21 (a) All hemp consumer products distributed or offered for
22 retail sale in this State shall include the following
23 information on the product label or packaging:
24 (1) information that complies with the requirements in
25 21 CFR 101 and include a nutritional or supplement fact
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1 panel that is based on the number of servings within the
2 container;
3 (2) a list of all ingredients in descending order of
4 predominance by weight in the product;
5 (3) The serving size and number of servings per
6 package or container, including the milligrams per serving
7 of:
8 (A) individual hemp cannabinoids;
9 (B) total hemp cannabinoids;
10 (C) individual THC cannabinoids;
11 (D) total THC;
12 (E) any other cannabinoids;
13 (F) an expiration date;
14 (G) a lot or batch number;
15 (H) the name of the hemp processor, whether
16 in-state or out-of-state;
17 (I) a scannable QR code linked to download the
18 certificate of analysis and testing results for the
19 product;
20 (J) the state or country of origin from which the
21 hemp used in the product was sourced;
22 (K) a means for reporting serious adverse events;
23 and
24 (L) any other marking, statement, or symbol
25 required by the Department.
26 (b) No hemp consumer products offered for retail sale
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1 shall be made attractive to individuals under 21 years of age,
2 imitate a candy label, or use cartoons or other images
3 popularly used to advertise to children or otherwise be
4 marketed to individuals under 21 years of age.
5 (c) No hemp consumer product shall be marketed,
6 advertised, or offered for sale in a manner that would cause a
7 reasonable consumer:
8 (1) to be confused as to whether the hemp consumer
9 product is trademarked, marked or labeled in a manner that
10 violates any federal trademark law or regulation; or
11 (2) to believe that a hemp consumer product is
12 cannabis, or medical cannabis, or that a licensee is
13 authorized to sell or dispense cannabis or medical
14 cannabis, as those terms are defined in the Cannabis
15 Regulation and Tax Act or the Compassionate Use of Medical
16 Cannabis Program Act.
17 (d) All hemp consumer products offered for retail sale
18 shall include the following warnings on the product label or
19 packaging, in a manner that is clear and conspicuous:
20 (1) this product must be kept out of the reach of
21 children and pets;
22 (2) this product is derived from hemp and may contain
23 THC which could result in a failed drug test; except that
24 this warning may be omitted for hemp consumer products
25 that have a certificate of testing analysis demonstrating
26 0% THC concentration in the finished product;
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1 (3) this product has not been evaluated or approved by
2 the Food and Drug Administration for safety or efficacy;
3 (4) if you are pregnant or nursing you should consult
4 your health care provider before use;
5 (5) for hemp consumer products intended to be inhaled
6 or vaporized, a warning stating that smoking or vaping is
7 hazardous to your health; and
8 (6) any other warning required by the Department.
9 Section 35. Laboratory testing requirements for hemp
10 consumer products.
11 (a) The Department shall approve testing laboratories to
12 be contracted by licensees under this Act for testing of hemp
13 consumer products.
14 (b) All approved testing laboratories shall meet the
15 following minimum requirements:
16 (1) maintain ISO/IEC 17025 accreditation for the
17 premises and for the testing of one or more of the analytes
18 determined by the department;
19 (2) maintain a valid scope of accreditation, issued by
20 an accreditation body, that attests to the laboratory's
21 competence to perform testing of hemp consumer products;
22 (3) maintain method validation reports for all testing
23 performed;
24 (4) maintain standard operating procedures for the
25 sampling of hemp consumer products; and
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1 (5) maintain testing methodologies to ascertain the
2 presence of synthetic cannabinoids, artificially derived
3 cannabinoids, or cannabinoids created through
4 isomerization, including tetrahydrocannabinol created
5 through isomerization.
6 (c) Cannabinoid hemp products shall not be sold within
7 this State if hemp cannabinoid, THC, or other contaminants are
8 detected at levels greater than provided for by this Act or
9 rules or guidance adopted by the Department.
10 (d) Cannabinoid hemp products shall be considered
11 adulterated and shall not be sold within this State if there is
12 the presence of synthetic cannabinoids, artificially derived
13 cannabinoids, or cannabinoids created through isomerization,
14 including tetrahydrocannabinol created through isomerization.
15 (e) The Department may impose additional testing
16 requirements, including, but not limited to, testing for
17 additional analytes, setting stricter contaminant limits, and
18 mandating the use of specific sampling methodologies per lot
19 or batch manufactured.
20 (f) The Department shall make available a list of required
21 analytes, their acceptable limits, and approved testing
22 methods on the Department's website and in any other manner as
23 determined by the Department.
24 (g) The total tetrahydrocannabinol concentration for hemp
25 consumer products shall not exceed the limits established in
26 this Act.
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1 (h) If a hemp consumer product fails testing, the
2 processor may elect to reformulate the failing batch to reduce
3 the total tetrahydrocannabinol of the batch to comply with the
4 THC limits established by this Act. If the reformulated batch
5 still exceeds the THC limits, the processor shall destroy the
6 batch.
7 (i) If a hemp consumer product is found to contain levels
8 of any pathogen, toxicant, residual solvent, metal, or
9 pesticide not enumerated in this Section or by other State
10 law, then the product shall not be sold in this State.
11 Section 40. Advertising requirements. An advertisement for
12 a hemp consumer product, hemp consumer processor, or hemp
13 consumer retailer shall not:
14 (1) include any false or misleading statements,
15 images, or other content, including, but not limited to,
16 any health claims;
17 (2) contain claims that hemp consumption or a hemp
18 consumer product can, or is intended to, diagnose, cure,
19 mitigate, treat, or prevent disease;
20 (3) lead a reasonable consumer to believe that a hemp
21 consumer product is cannabis or medical cannabis,
22 including any product that exceeds the THC limits
23 established under this Act for lawful hemp consumer
24 products, or that a licensee is authorized to sell or
25 dispense cannabis or medical cannabis; or
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1 (4) have the purpose or effect of targeting or being
2 attractive to individuals under 21 years of age. The use
3 of images of children or minors consuming hemp consumer
4 products and the use of words, designs, or brands that
5 resemble products commonly associated with children,
6 minors, or marketed to children or minors, is prohibited.
7 Section 45. Lawful transport of industrial hemp, hemp, and
8 hemp materials.
9 (a) Nothing in this Act shall prohibit or interfere with
10 the lawful transport of industrial hemp, hemp materials, or
11 hemp products as authorized by the U.S. Department of
12 Agriculture and the U.S. Food and Drug Administration, and in
13 compliance with other federal law, regulation, or rule,
14 through the State of Illinois for delivery to an out-of-state
15 destination.
16 (b) No person shall transport industrial hemp, hemp, or
17 hemp materials within the State, unless the person is duly
18 authorized under federal law and regulation to transport hemp
19 and possesses a hemp manifest that includes the following
20 information:
21 (1) the name and address of the owner of the hemp;
22 (2) the point of origin;
23 (3) the point of delivery, including name and address;
24 (4) the kind and quantity of packages or, if in bulk,
25 the total quantity of hemp in the shipment; and
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1 (5) the date of shipment.
2 Section 50. Penalties.
3 (a) Licensees under this Act shall comply with all
4 applicable laws, rules, and regulations as it relates to such
5 licensure.
6 (b) Failure to comply with a requirement of this Act or
7 rules adopted by the Department may be punishable by a civil
8 penalty, as follows:
9 (1) a fine of up to $1,000 for a first violation;
10 (2) a fine up to $5,000 for a second violation within 3
11 years; or
12 (3) a fine of up to $10,000 for a third violation and
13 each subsequent violation thereafter within a 3-year
14 period.
15 (c) If a licensee willfully violates or refuses or
16 neglects to comply with one or more provisions of this Act, the
17 Department may limit, suspend, revoke, or annul a license
18 after providing notice and an opportunity for a hearing to the
19 licensee. However, a license may be temporarily limited,
20 suspended, revoked, or annulled without a hearing for a period
21 not to exceed 30 days, upon notice to the licensee, following a
22 finding by the Department that the public health, safety, or
23 welfare is in imminent danger.
24 (d) A licensee who negligently violates this Act 3 times
25 in a 5-year period shall be ineligible to process or sell
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1 cannabinoid hemp for a period of 5 years beginning on the date
2 of the third violation. The Department may reduce the
3 suspension for good cause shown.
4 Section 55. Administration and enforcement; rules;
5 emergency rules; inspections.
6 (a) The Department shall administer and enforce this Act
7 and may adopt rules under the Illinois Administrative
8 Procedure Act for the purpose of administering and enforcing
9 this Act.
10 (b) The Department shall develop rules setting forth
11 labeling, packaging, and minimum testing requirements of
12 cannabinoid products.
13 (c) In order to provide for the expeditious and timely
14 implementation of the provisions of this Act, the Department
15 may adopt emergency rules in accordance with Section 5-45 of
16 the Illinois Administrative Procedure Act to the extent
17 necessary to administer the Department's responsibilities
18 under this Act. The adoption of emergency rules authorized by
19 this subsection (c) is deemed to be necessary for the public
20 interest, safety, and welfare to regulate consumer safety over
21 hemp consumer products.
22 (d) The Department of Public Health, local health
23 departments, the Illinois State Police, local sheriff's
24 departments, municipal police departments, and the Department
25 of Revenue may inspect any business that manufactures,
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1 processes, or offers for sale cannabinoid products in the
2 State if a formal complaint is registered with the appropriate
3 agency in order to ensure compliance with this Act. The
4 Department may inspect any business that manufactures,
5 processes, or offers for sale cannabinoid products in the
6 State to ensure compliance with this Act. The Department may
7 enter into interagency agreements to regulate and enforce this
8 Act and any rules or guidance adopted or promulgated.
9 Section 60. Publishing information. The Department shall
10 make available to the public complaints about hemp consumer
11 products or other cannabinoid products in violation of this
12 Act, information regarding a pending administrative hearing or
13 court case under this Act, or any disciplinary action taken
14 against a cannabinoid product manufacturer, processor, or
15 seller.
16 Section 65. Temporary restraining order or injunction. The
17 Director, through the Attorney General or any unit of local
18 government, may file a complaint and apply to the circuit
19 court for, and the court upon hearing and for cause shown may
20 grant, a temporary restraining order or a preliminary or
21 permanent injunction restraining any person from violating
22 this Act.
23 Section 905. The Illinois Administrative Procedure Act is
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1 amended by adding Section 5-45.55 as follows:
2 (5 ILCS 100/5-45.55 new)
3 Sec. 5-45.55. Emergency rulemaking; Hemp Consumer Products
4 Act. To provide for the expeditious and timely implementation
5 of the Hemp Consumer Products Act, emergency rules
6 implementing the Hemp Consumer Products Act may be adopted in
7 accordance with Section 5-45 by the Department of Agriculture.
8 The adoption of emergency rules authorized by Section 5-45 and
9 this Section is deemed to be necessary for the public
10 interest, safety, and welfare.
11 This Section is repealed one year after the effective date
12 of this amendatory Act of the 103rd General Assembly.
13 Section 907. The Cannabis Regulation and Tax Act is
14 amended by changing Sections 1-10, 5-11, 15-155, and 55-35 and
15 by adding Sections 15-35.5, 15-35.11, 20-60, and 35-22 as
16 follows:
17 (410 ILCS 705/1-10)
18 Sec. 1-10. Definitions. In this Act:
19 "Adult Use Cultivation Center License" means a license
20 issued by the Department of Agriculture that permits a person
21 to act as a cultivation center under this Act and any
22 administrative rule made in furtherance of this Act.
23 "Adult Use Dispensing Organization License" means a
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1 license issued by the Department of Financial and Professional
2 Regulation that permits a person to act as a dispensing
3 organization under this Act and any administrative rule made
4 in furtherance of this Act.
5 "Advertise" means to engage in promotional activities
6 including, but not limited to: newspaper, radio, Internet and
7 electronic media, and television advertising; the distribution
8 of fliers and circulars; billboard advertising; and the
9 display of window and interior signs. "Advertise" does not
10 mean exterior signage displaying only the name of the licensed
11 cannabis business establishment.
12 "Application points" means the number of points a
13 Dispensary Applicant receives on an application for a
14 Conditional Adult Use Dispensing Organization License.
15 "BLS Region" means a region in Illinois used by the United
16 States Bureau of Labor Statistics to gather and categorize
17 certain employment and wage data. The 17 such regions in
18 Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
19 Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
20 Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
21 Rockford, St. Louis, Springfield, Northwest Illinois
22 nonmetropolitan area, West Central Illinois nonmetropolitan
23 area, East Central Illinois nonmetropolitan area, and South
24 Illinois nonmetropolitan area.
25 "By lot" means a randomized method of choosing between 2
26 or more Eligible Tied Applicants or 2 or more Qualifying
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1 Applicants.
2 "Cannabis" means marijuana, hashish, and other substances
3 that are identified as including any parts of the plant
4 Cannabis sativa and including derivatives or subspecies, such
5 as indica, of all strains of cannabis, whether growing or not;
6 the seeds thereof, the resin extracted from any part of the
7 plant; and any compound, manufacture, salt, derivative,
8 mixture, or preparation of the plant, its seeds, or resin,
9 including tetrahydrocannabinol (THC) and all other naturally
10 produced cannabinol derivatives, whether produced directly or
11 indirectly by extraction, including, but not limited to, any
12 structural, optical, or geometric isomers of THC, or any
13 chemical compound that mimics THC; however, "cannabis" does
14 not include the mature stalks of the plant, fiber produced
15 from the stalks, oil or cake made from the seeds of the plant,
16 any other compound, manufacture, salt, derivative, mixture, or
17 preparation of the mature stalks (except the resin extracted
18 from it), fiber, oil or cake, or the sterilized seed of the
19 plant that is incapable of germination. "Cannabis" does not
20 include industrial hemp as defined and authorized under the
21 Industrial Hemp Act. "Cannabis" also means cannabis flower,
22 concentrate, and cannabis-infused products and any product
23 whether derived from natural or synthetic sources with a THC
24 concentration greater than the THC limit set forth in the Hemp
25 Consumer Products Act.
26 "Cannabis business establishment" means a cultivation
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1 center, craft grower, processing organization, infuser
2 organization, dispensing organization, or transporting
3 organization.
4 "Cannabis concentrate" means a product derived from
5 cannabis that is produced by extracting cannabinoids,
6 including tetrahydrocannabinol (THC), from the plant through
7 the use of propylene glycol, glycerin, butter, olive oil, or
8 other typical cooking fats; water, ice, or dry ice; or butane,
9 propane, CO2, ethanol, or isopropanol and with the intended
10 use of smoking or making a cannabis-infused product. The use
11 of any other solvent is expressly prohibited unless and until
12 it is approved by the Department of Agriculture.
13 "Cannabis container" means a sealed or resealable,
14 traceable, container, or package used for the purpose of
15 containment of cannabis or cannabis-infused product during
16 transportation.
17 "Cannabis flower" means marijuana, hashish, and other
18 substances that are identified as including any parts of the
19 plant Cannabis sativa and including derivatives or subspecies,
20 such as indica, of all strains of cannabis; including raw
21 kief, leaves, and buds, but not resin that has been extracted
22 from any part of such plant; nor any compound, manufacture,
23 salt, derivative, mixture, or preparation of such plant, its
24 seeds, or resin.
25 "Cannabis-infused product" means a beverage, food, oil,
26 ointment, tincture, topical formulation, or another product
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1 containing cannabis or cannabis concentrate that is not
2 intended to be smoked.
3 "Cannabis paraphernalia" means equipment, products, or
4 materials intended to be used for planting, propagating,
5 cultivating, growing, harvesting, manufacturing, producing,
6 processing, preparing, testing, analyzing, packaging,
7 repackaging, storing, containing, concealing, ingesting, or
8 otherwise introducing cannabis into the human body.
9 "Cannabis plant monitoring system" or "plant monitoring
10 system" means a system that includes, but is not limited to,
11 testing and data collection established and maintained by the
12 cultivation center, craft grower, or processing organization
13 and that is available to the Department of Revenue, the
14 Department of Agriculture, the Department of Financial and
15 Professional Regulation, and the Illinois State Police for the
16 purposes of documenting each cannabis plant and monitoring
17 plant development throughout the life cycle of a cannabis
18 plant cultivated for the intended use by a customer from seed
19 planting to final packaging.
20 "Cannabis testing facility" means an entity registered by
21 the Department of Agriculture to test cannabis for potency and
22 contaminants.
23 "Clone" means a plant section from a female cannabis plant
24 not yet rootbound, growing in a water solution or other
25 propagation matrix, that is capable of developing into a new
26 plant.
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1 "Community College Cannabis Vocational Training Pilot
2 Program faculty participant" means a person who is 21 years of
3 age or older, licensed by the Department of Agriculture, and
4 is employed or contracted by an Illinois community college to
5 provide student instruction using cannabis plants at an
6 Illinois Community College.
7 "Community College Cannabis Vocational Training Pilot
8 Program faculty participant Agent Identification Card" means a
9 document issued by the Department of Agriculture that
10 identifies a person as a Community College Cannabis Vocational
11 Training Pilot Program faculty participant.
12 "Conditional Adult Use Dispensing Organization License"
13 means a contingent license awarded to applicants for an Adult
14 Use Dispensing Organization License that reserves the right to
15 an Adult Use Dispensing Organization License if the applicant
16 meets certain conditions described in this Act, but does not
17 entitle the recipient to begin purchasing or selling cannabis
18 or cannabis-infused products.
19 "Conditional Adult Use Cultivation Center License" means a
20 license awarded to top-scoring applicants for an Adult Use
21 Cultivation Center License that reserves the right to an Adult
22 Use Cultivation Center License if the applicant meets certain
23 conditions as determined by the Department of Agriculture by
24 rule, but does not entitle the recipient to begin growing,
25 processing, or selling cannabis or cannabis-infused products.
26 "Conditional Infuser Organization License" means a
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1 contingent license awarded to applicants for an Infuser
2 Organization License that reserves the right to an Infuser
3 Organization License if the applicant meets certain conditions
4 described in this Act, but does not entitle the recipient to
5 begin directly incorporating cannabis or cannabis concentrate
6 into a product formulation to produce a cannabis-infused
7 product.
8 "Craft grower" means a facility operated by an
9 organization or business that is licensed by the Department of
10 Agriculture to cultivate, dry, cure, and package cannabis and
11 perform other necessary activities to make cannabis available
12 for sale at a dispensing organization or use at a processing
13 organization. A craft grower may contain up to 5,000 square
14 feet of canopy space on its premises for plants in the
15 flowering state. The Department of Agriculture may authorize
16 an increase or decrease of flowering stage cultivation space
17 in increments of 3,000 square feet by rule based on market
18 need, craft grower capacity, and the licensee's history of
19 compliance or noncompliance, with a maximum space of 14,000
20 square feet for cultivating plants in the flowering stage,
21 which must be cultivated in all stages of growth in an enclosed
22 and secure area. A craft grower may share premises with a
23 processing organization or a dispensing organization, or both,
24 provided each licensee stores currency and cannabis or
25 cannabis-infused products in a separate secured vault to which
26 the other licensee does not have access or all licensees
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1 sharing a vault share more than 50% of the same ownership.
2 "Craft grower agent" means a principal officer, board
3 member, employee, or other agent of a craft grower who is 21
4 years of age or older.
5 "Craft Grower Agent Identification Card" means a document
6 issued by the Department of Agriculture that identifies a
7 person as a craft grower agent.
8 "Cultivation center" means a facility operated by an
9 organization or business that is licensed by the Department of
10 Agriculture to cultivate, process, transport (unless otherwise
11 limited by this Act), and perform other necessary activities
12 to provide cannabis and cannabis-infused products to cannabis
13 business establishments.
14 "Cultivation center agent" means a principal officer,
15 board member, employee, or other agent of a cultivation center
16 who is 21 years of age or older.
17 "Cultivation Center Agent Identification Card" means a
18 document issued by the Department of Agriculture that
19 identifies a person as a cultivation center agent.
20 "Currency" means currency and coin of the United States.
21 "Dispensary" means a facility operated by a dispensing
22 organization at which activities licensed by this Act may
23 occur.
24 "Dispensary Applicant" means the Proposed Dispensing
25 Organization Name as stated on an application for a
26 Conditional Adult Use Dispensing Organization License.
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1 "Dispensing organization" means a facility operated by an
2 organization or business that is licensed by the Department of
3 Financial and Professional Regulation to acquire cannabis from
4 a cultivation center, craft grower, processing organization,
5 or another dispensary for the purpose of selling or dispensing
6 cannabis, cannabis-infused products, cannabis seeds,
7 paraphernalia, or related supplies under this Act to
8 purchasers or to qualified registered medical cannabis
9 patients and caregivers. As used in this Act, "dispensing
10 organization" includes a registered medical cannabis
11 organization as defined in the Compassionate Use of Medical
12 Cannabis Program Act or its successor Act that has obtained an
13 Early Approval Adult Use Dispensing Organization License.
14 "Dispensing organization agent" means a principal officer,
15 employee, or agent of a dispensing organization who is 21
16 years of age or older.
17 "Dispensing organization agent identification card" means
18 a document issued by the Department of Financial and
19 Professional Regulation that identifies a person as a
20 dispensing organization agent.
21 "Disproportionately Impacted Area" means a census tract or
22 comparable geographic area that satisfies the following
23 criteria as determined by the Department of Commerce and
24 Economic Opportunity, that:
25 (1) meets at least one of the following criteria:
26 (A) the area has a poverty rate of at least 20%
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1 according to the latest federal decennial census; or
2 (B) 75% or more of the children in the area
3 participate in the federal free lunch program
4 according to reported statistics from the State Board
5 of Education; or
6 (C) at least 20% of the households in the area
7 receive assistance under the Supplemental Nutrition
8 Assistance Program; or
9 (D) the area has an average unemployment rate, as
10 determined by the Illinois Department of Employment
11 Security, that is more than 120% of the national
12 unemployment average, as determined by the United
13 States Department of Labor, for a period of at least 2
14 consecutive calendar years preceding the date of the
15 application; and
16 (2) has high rates of arrest, conviction, and
17 incarceration related to the sale, possession, use,
18 cultivation, manufacture, or transport of cannabis.
19 "Early Approval Adult Use Cultivation Center License"
20 means a license that permits a medical cannabis cultivation
21 center licensed under the Compassionate Use of Medical
22 Cannabis Program Act as of the effective date of this Act to
23 begin cultivating, infusing, packaging, transporting (unless
24 otherwise provided in this Act), processing, and selling
25 cannabis or cannabis-infused product to cannabis business
26 establishments for resale to purchasers as permitted by this
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1 Act as of January 1, 2020.
2 "Early Approval Adult Use Dispensing Organization License"
3 means a license that permits a medical cannabis dispensing
4 organization licensed under the Compassionate Use of Medical
5 Cannabis Program Act as of the effective date of this Act to
6 begin selling cannabis or cannabis-infused product to
7 purchasers as permitted by this Act as of January 1, 2020.
8 "Early Approval Adult Use Dispensing Organization at a
9 secondary site" means a license that permits a medical
10 cannabis dispensing organization licensed under the
11 Compassionate Use of Medical Cannabis Program Act as of the
12 effective date of this Act to begin selling cannabis or
13 cannabis-infused product to purchasers as permitted by this
14 Act on January 1, 2020 at a different dispensary location from
15 its existing registered medical dispensary location.
16 "Eligible Tied Applicant" means a Tied Applicant that is
17 eligible to participate in the process by which a remaining
18 available license is distributed by lot pursuant to a Tied
19 Applicant Lottery.
20 "Enclosed, locked facility" means a room, greenhouse,
21 building, or other enclosed area equipped with locks or other
22 security devices that permit access only by cannabis business
23 establishment agents working for the licensed cannabis
24 business establishment or acting pursuant to this Act to
25 cultivate, process, store, or distribute cannabis.
26 "Enclosed, locked space" means a closet, room, greenhouse,
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1 building, or other enclosed area equipped with locks or other
2 security devices that permit access only by authorized
3 individuals under this Act. "Enclosed, locked space" may
4 include:
5 (1) a space within a residential building that (i) is
6 the primary residence of the individual cultivating 5 or
7 fewer cannabis plants that are more than 5 inches tall and
8 (ii) includes sleeping quarters and indoor plumbing. The
9 space must only be accessible by a key or code that is
10 different from any key or code that can be used to access
11 the residential building from the exterior; or
12 (2) a structure, such as a shed or greenhouse, that
13 lies on the same plot of land as a residential building
14 that (i) includes sleeping quarters and indoor plumbing
15 and (ii) is used as a primary residence by the person
16 cultivating 5 or fewer cannabis plants that are more than
17 5 inches tall, such as a shed or greenhouse. The structure
18 must remain locked when it is unoccupied by people.
19 "Financial institution" has the same meaning as "financial
20 organization" as defined in Section 1501 of the Illinois
21 Income Tax Act, and also includes the holding companies,
22 subsidiaries, and affiliates of such financial organizations.
23 "Flowering stage" means the stage of cultivation where and
24 when a cannabis plant is cultivated to produce plant material
25 for cannabis products. This includes mature plants as follows:
26 (1) if greater than 2 stigmas are visible at each
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1 internode of the plant; or
2 (2) if the cannabis plant is in an area that has been
3 intentionally deprived of light for a period of time
4 intended to produce flower buds and induce maturation,
5 from the moment the light deprivation began through the
6 remainder of the marijuana plant growth cycle.
7 "Individual" means a natural person.
8 "Infuser organization" or "infuser" means a facility
9 operated by an organization or business that is licensed by
10 the Department of Agriculture to directly incorporate cannabis
11 or cannabis concentrate into a product formulation to produce
12 a cannabis-infused product.
13 "Kief" means the resinous crystal-like trichomes that are
14 found on cannabis and that are accumulated, resulting in a
15 higher concentration of cannabinoids, untreated by heat or
16 pressure, or extracted using a solvent.
17 "Labor peace agreement" means an agreement between a
18 cannabis business establishment and any labor organization
19 recognized under the National Labor Relations Act, referred to
20 in this Act as a bona fide labor organization, that prohibits
21 labor organizations and members from engaging in picketing,
22 work stoppages, boycotts, and any other economic interference
23 with the cannabis business establishment. This agreement means
24 that the cannabis business establishment has agreed not to
25 disrupt efforts by the bona fide labor organization to
26 communicate with, and attempt to organize and represent, the
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1 cannabis business establishment's employees. The agreement
2 shall provide a bona fide labor organization access at
3 reasonable times to areas in which the cannabis business
4 establishment's employees work, for the purpose of meeting
5 with employees to discuss their right to representation,
6 employment rights under State law, and terms and conditions of
7 employment. This type of agreement shall not mandate a
8 particular method of election or certification of the bona
9 fide labor organization.
10 "Limited access area" means a room or other area under the
11 control of a cannabis dispensing organization licensed under
12 this Act and upon the licensed premises where cannabis sales
13 occur with access limited to purchasers, dispensing
14 organization owners and other dispensing organization agents,
15 or service professionals conducting business with the
16 dispensing organization, or, if sales to registered qualifying
17 patients, caregivers, provisional patients, and Opioid
18 Alternative Pilot Program participants licensed pursuant to
19 the Compassionate Use of Medical Cannabis Program Act are also
20 permitted at the dispensary, registered qualifying patients,
21 caregivers, provisional patients, and Opioid Alternative Pilot
22 Program participants.
23 "Member of an impacted family" means an individual who has
24 a parent, legal guardian, child, spouse, or dependent, or was
25 a dependent of an individual who, prior to the effective date
26 of this Act, was arrested for, convicted of, or adjudicated
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1 delinquent for any offense that is eligible for expungement
2 under this Act.
3 "Mother plant" means a cannabis plant that is cultivated
4 or maintained for the purpose of generating clones, and that
5 will not be used to produce plant material for sale to an
6 infuser or dispensing organization.
7 "Ordinary public view" means within the sight line with
8 normal visual range of a person, unassisted by visual aids,
9 from a public street or sidewalk adjacent to real property, or
10 from within an adjacent property.
11 "Ownership and control" means ownership of at least 51% of
12 the business, including corporate stock if a corporation, and
13 control over the management and day-to-day operations of the
14 business and an interest in the capital, assets, and profits
15 and losses of the business proportionate to percentage of
16 ownership.
17 "Person" means a natural individual, firm, partnership,
18 association, joint stock company, joint venture, public or
19 private corporation, limited liability company, or a receiver,
20 executor, trustee, guardian, or other representative appointed
21 by order of any court.
22 "Possession limit" means the amount of cannabis under
23 Section 10-10 that may be possessed at any one time by a person
24 21 years of age or older or who is a registered qualifying
25 medical cannabis patient or caregiver under the Compassionate
26 Use of Medical Cannabis Program Act.
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1 "Principal officer" includes a cannabis business
2 establishment applicant or licensed cannabis business
3 establishment's board member, owner with more than 1% interest
4 of the total cannabis business establishment or more than 5%
5 interest of the total cannabis business establishment of a
6 publicly traded company, president, vice president, secretary,
7 treasurer, partner, officer, member, manager member, or person
8 with a profit sharing, financial interest, or revenue sharing
9 arrangement. The definition includes a person with authority
10 to control the cannabis business establishment, a person who
11 assumes responsibility for the debts of the cannabis business
12 establishment and who is further defined in this Act.
13 "Primary residence" means a dwelling where a person
14 usually stays or stays more often than other locations. It may
15 be determined by, without limitation, presence, tax filings;
16 address on an Illinois driver's license, an Illinois
17 Identification Card, or an Illinois Person with a Disability
18 Identification Card; or voter registration. No person may have
19 more than one primary residence.
20 "Processing organization" or "processor" means a facility
21 operated by an organization or business that is licensed by
22 the Department of Agriculture to either extract constituent
23 chemicals or compounds to produce cannabis concentrate or
24 incorporate cannabis or cannabis concentrate into a product
25 formulation to produce a cannabis product.
26 "Processing organization agent" means a principal officer,
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1 board member, employee, or agent of a processing organization.
2 "Processing organization agent identification card" means
3 a document issued by the Department of Agriculture that
4 identifies a person as a processing organization agent.
5 "Purchaser" means a person 21 years of age or older who
6 acquires cannabis for a valuable consideration. "Purchaser"
7 does not include a cardholder under the Compassionate Use of
8 Medical Cannabis Program Act.
9 "Qualifying Applicant" means an applicant that submitted
10 an application pursuant to Section 15-30 that received at
11 least 85% of 250 application points available under Section
12 15-30 as the applicant's final score and meets the definition
13 of "Social Equity Applicant" as set forth under this Section.
14 "Qualifying Social Equity Justice Involved Applicant"
15 means an applicant that submitted an application pursuant to
16 Section 15-30 that received at least 85% of 250 application
17 points available under Section 15-30 as the applicant's final
18 score and meets the criteria of either paragraph (1) or (2) of
19 the definition of "Social Equity Applicant" as set forth under
20 this Section.
21 "Qualified Social Equity Applicant" means a Social Equity
22 Applicant who has been awarded a conditional license under
23 this Act to operate a cannabis business establishment.
24 "Resided" means an individual's primary residence was
25 located within the relevant geographic area as established by
26 2 of the following:
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1 (1) a signed lease agreement that includes the
2 applicant's name;
3 (2) a property deed that includes the applicant's
4 name;
5 (3) school records;
6 (4) a voter registration card;
7 (5) an Illinois driver's license, an Illinois
8 Identification Card, or an Illinois Person with a
9 Disability Identification Card;
10 (6) a paycheck stub;
11 (7) a utility bill;
12 (8) tax records; or
13 (9) any other proof of residency or other information
14 necessary to establish residence as provided by rule.
15 "Smoking" means the inhalation of smoke caused by the
16 combustion of cannabis.
17 "Social Equity Applicant" means an applicant that is an
18 Illinois resident that meets one of the following criteria:
19 (1) an applicant with at least 51% ownership and
20 control by one or more individuals who have resided for at
21 least 5 of the preceding 10 years in a Disproportionately
22 Impacted Area;
23 (2) an applicant with at least 51% ownership and
24 control by one or more individuals who:
25 (i) have been arrested for, convicted of, or
26 adjudicated delinquent for any offense that is
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1 eligible for expungement under this Act; or
2 (ii) is a member of an impacted family;
3 (3) for applicants with a minimum of 10 full-time
4 employees, an applicant with at least 51% of current
5 employees who:
6 (i) currently reside in a Disproportionately
7 Impacted Area; or
8 (ii) have been arrested for, convicted of, or
9 adjudicated delinquent for any offense that is
10 eligible for expungement under this Act or member of
11 an impacted family.
12 Nothing in this Act shall be construed to preempt or limit
13 the duties of any employer under the Job Opportunities for
14 Qualified Applicants Act. Nothing in this Act shall permit an
15 employer to require an employee to disclose sealed or expunged
16 offenses, unless otherwise required by law.
17 "Tetrahydrocannabinol" or "THC" means any naturally
18 occurring or synthetic tetrahydrocannabinol, including its
19 salts, isomers, and salts of isomers whenever the existence of
20 such salts, isomers, and salts of isomers is possible within
21 the specific chemical designation and any preparation,
22 mixture, or substance containing, or mixed or infused with,
23 any detectable amount of tetrahydrocannabinol or
24 tetrahydrocannabolic acid, including, but not limited to,
25 delta-8-tetrahydrocannabinol, delta-9-tetrahydrocannabinol,
26 delta-10-tetrahydrocannabinol, tetrahydrocannabolic acid,
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1 tetrahydrocannabipherol, or hexahydrocannabinol, however
2 derived, or any other substance determined to have similar
3 intoxicating effects on the mind or body by the Department.
4 For the purposes of this definition, "isomer" means the
5 optical, position, and geometric isomers.
6 "Tied Applicant" means an application submitted by a
7 Dispensary Applicant pursuant to Section 15-30 that received
8 the same number of application points under Section 15-30 as
9 the Dispensary Applicant's final score as one or more
10 top-scoring applications in the same BLS Region and would have
11 been awarded a license but for the one or more other
12 top-scoring applications that received the same number of
13 application points. Each application for which a Dispensary
14 Applicant was required to pay a required application fee for
15 the application period ending January 2, 2020 shall be
16 considered an application of a separate Tied Applicant.
17 "Tied Applicant Lottery" means the process established
18 under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
19 Use Dispensing Organization Licenses pursuant to Sections
20 15-25 and 15-30 among Eligible Tied Applicants.
21 "Tincture" means a cannabis-infused solution, typically
22 comprised of alcohol, glycerin, or vegetable oils, derived
23 either directly from the cannabis plant or from a processed
24 cannabis extract. A tincture is not an alcoholic liquor as
25 defined in the Liquor Control Act of 1934. A tincture shall
26 include a calibrated dropper or other similar device capable
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1 of accurately measuring servings.
2 "Transporting organization" or "transporter" means an
3 organization or business that is licensed by the Department of
4 Agriculture to transport cannabis or cannabis-infused product
5 on behalf of a cannabis business establishment or a community
6 college licensed under the Community College Cannabis
7 Vocational Training Pilot Program.
8 "Transporting organization agent" means a principal
9 officer, board member, employee, or agent of a transporting
10 organization.
11 "Transporting organization agent identification card"
12 means a document issued by the Department of Agriculture that
13 identifies a person as a transporting organization agent.
14 "Unit of local government" means any county, city,
15 village, or incorporated town.
16 "Vegetative stage" means the stage of cultivation in which
17 a cannabis plant is propagated to produce additional cannabis
18 plants or reach a sufficient size for production. This
19 includes seedlings, clones, mothers, and other immature
20 cannabis plants as follows:
21 (1) if the cannabis plant is in an area that has not
22 been intentionally deprived of light for a period of time
23 intended to produce flower buds and induce maturation, it
24 has no more than 2 stigmas visible at each internode of the
25 cannabis plant; or
26 (2) any cannabis plant that is cultivated solely for
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1 the purpose of propagating clones and is never used to
2 produce cannabis.
3 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
4 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
5 5-13-22.)
6 (410 ILCS 705/5-11 new)
7 Sec. 5-11. Illinois Department of Agriculture policy
8 regarding hemp and hemp derivatives in medical and adult use
9 cannabis products.
10 (a) For purposes of this Section, "industrial hemp" has
11 the meaning given to it under the Industrial Hemp Act.
12 (b) Cannabis business establishments licensed by the
13 Department of Agriculture for cultivation, growing,
14 processing, manufacturing, or infusing of medical or adult use
15 cannabis products pursuant to this Act or the Compassionate
16 Use of Medicinal Cannabis Program Act may use industrial hemp
17 as an ingredient in cannabis-infused products offered for sale
18 at licensed dispensaries in Illinois. Hemp flower shall not be
19 sold to dispensaries.
20 (c) All hemp obtained through this policy must be used in
21 extracted form and in infused cannabis products only.
22 (d) Industrial hemp may be procured from third party
23 licensed growers or processors from within the State or any
24 other state with a regulated industrial hemp program.
25 (e) All hemp and hemp derivatives shall be obtained from a
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1 licensed or registered hemp grower or processor, regardless of
2 the home state of the grower or processor. Cannabis producers
3 shall provide a copy of the hemp grower's or processor's
4 state-issued license upon demand of the Department of
5 Agriculture or the Illinois State Police.
6 (f) Any licensed cannabis cultivation center or licensed
7 craft grower that intends to use hemp or hemp derivatives must
8 apply for, and be issued, a hemp processor's registration
9 through the Department of Agriculture. Any licensed infuser
10 that intends to use hemp derivatives must apply for, and be
11 issued, a hemp processor's registration through the Department
12 of Agriculture. The Department of Agriculture shall make
13 available an application form on its website.
14 (g) Industrial hemp flower and biomass may be purchased
15 and extracted by licensed cannabis cultivation centers or
16 licensed craft growers.
17 (h) Licensed cannabis cultivation centers and licensed
18 craft growers may procure or process industrial hemp in the
19 form of distillate or isolate. Licensed infusers may procure
20 industrial hemp in the form of distillate or isolate. All
21 processed hemp derivatives must be accompanied by a
22 certificate of analysis showing potency levels for THC, THCa,
23 CBD, and CBDa, and any other cannabinoids required by the
24 Department by rule or guidance.
25 (i) The delta-9 tetrahydrocannabinol contained in the hemp
26 and hemp derivatives may not be concentrated above the
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1 allowable 0.3% threshold.
2 (j) Hemp and hemp derivatives may not be used to
3 concentrate or to synthesize intoxicating compounds including,
4 but not limited to, delta-9 tetrahydrocannabinol or delta-8
5 tetrahydrocannabinol, unless permitted by the Department by
6 rule, and shall be subject to the recommendations of the
7 Intoxicating Hemp-Derived THC Consumer Products Safety
8 Committee.
9 (k) A representative sample of all final products
10 containing industrial hemp or hemp derivatives must undergo
11 testing pursuant to the Compassionate Use of Medical Cannabis
12 Act and the Cannabis Regulation and Tax Act and any applicable
13 administrative rules.
14 (l) Final products containing hemp or hemp derivatives are
15 subject to the requirements of the Compassionate Use of
16 Medical Cannabis Act and the Cannabis Regulation and Tax Act
17 and any applicable administrative rules.
18 (410 ILCS 705/15-35.5 new)
19 Sec. 15-35.5. Intoxicating Hemp-Derived THC Consumer
20 Products Safety Committee.
21 (a) The General Assembly finds that an Intoxicating
22 Hemp-Derived THC Consumer Products Safety Committee is
23 necessary to evaluate the public health impacts, product
24 formulations, manufacturing standards, and consumer safety
25 standards for intoxicating THC products derived or produced
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1 from the industrial hemp, and make recommendations to the
2 General Assembly, the Governor, the Attorney General, and
3 State regulatory agencies on a regulatory framework for the
4 manufacture, distribution, and sale of hemp-derived THC
5 consumer products within Illinois.
6 (b) The Committee shall consist of the following members:
7 (1) a member of the Senate, designated by the
8 President of the Senate;
9 (2) a member of the House of Representatives,
10 designated by the Speaker of the House of Representatives;
11 (3) a member of the Senate, designated by the Minority
12 Leader of the Senate;
13 (4) a member of the House of Representative,
14 designated by the Minority Leader of the House of
15 Representatives;
16 (5) the Illinois Cannabis Regulation and Oversight
17 Officer, or a designee;
18 (6) the Director of Agriculture, or a designee;
19 (7) the Secretary of Financial and Professional
20 Regulation, or a designee;
21 (8) the Director of Public Health, or a designee;
22 (9) the Director of Revenue, or a designee;
23 (10) the Attorney General, or a designee;
24 (11) the Director of the Illinois State Police, or a
25 designee;
26 (12) one member who is an attorney with expertise in
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1 the regulation of cannabis, appointed by the Director of
2 Agriculture;
3 (13) one member who is an individual with expertise in
4 the processing of cannabis, appointed by the Director of
5 Agriculture;
6 (14) one member who is an individual with expertise in
7 consumer safety over hemp and cannabis product
8 formulations, appointed by the Director of Public Health;
9 (15) one member who is a physician with expertise in
10 the consumer safety impacts of hemp and cannabis product
11 consumption and its effects on the mind and body,
12 appointed by the Director of Public Health;
13 (16) one member who is a laboratory technician or
14 scientist with expertise in the testing and evaluation of
15 cannabis product safety, appointed by the Director of
16 Agriculture;
17 (17) one member who is an individual with expertise in
18 consumer product approvals and requirements under the
19 Food, Drug, and Cosmetic Act (21 U.S.C. 9), appointed by
20 the Director of Public Health;
21 (18) one member who is a school superintendent or
22 principal, appointed by the State Superintendent of
23 Education; and
24 (19) one member who is a college or university
25 representative with expertise in research and development
26 of consumer safety standards and products, appointed by
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1 the State Superintendent of Education.
2 (c) The Committee shall produce a report on or before
3 January 1, 2025 with recommendations on appropriate consumer
4 safety standards, including product formulations,
5 manufacturing standards, advertising standards, and a
6 comprehensive regulatory framework for the safe manufacture,
7 distribution, and sale of hemp-derived THC products within
8 this State.
9 (d) The Department of Agriculture, the Department of
10 Financial and Professional Regulation, the Cannabis Oversight
11 Officer, the Department of Public Health, the Department of
12 State Police, and the Attorney General shall issue a report
13 with any legislative recommendations, if deemed necessary, to
14 the General Assembly on or before March 1, 2025 to establish a
15 regulatory and enforcement framework for hemp-derived THC
16 products to be manufactured, distributed, and sold to
17 consumers within this State.
18 (410 ILCS 705/15-35.11 new)
19 Sec. 15-35.11. Social Equity Justice Involved Lottery for
20 an Additional 50 New Conditional Adult Use Dispensing
21 Organization Licenses.(a) In addition to any of the licenses
22 issued under this Article, within 10 business days after the
23 resulting final scores for all scored applications pursuant to
24 Section 35-15 are released, the Department shall issue up to
25 50 Conditional Adult Use Dispensing Organization Licenses by
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1 lot, pursuant to the application process adopted under this
2 Section. In order to be eligible to be awarded a Conditional
3 Adult Use Dispensing Organization License by lot, a Dispensary
4 Applicant must be a Qualifying Social Equity Justice Involved
5 Applicant.
6 The licenses issued under this Section shall be awarded on
7 or before July 1, 2025 in each BLS Region in the following
8 amounts:
9 (1) Bloomington: 1.
10 (2) Cape Girardeau: 1.
11 (3) Carbondale-Marion: 1.
12 (4) Champaign-Urbana: 1.
13 (5) Chicago-Naperville-Elgin: 31.
14 (6) Danville: 1.
15 (7) Davenport-Moline-Rock Island: 1.
16 (8) Decatur: 1.
17 (9) Kankakee: 1.
18 (10) Peoria: 2.
19 (11) Rockford: 1.
20 (12) St. Louis: 3.
21 (13) Springfield: 1.
22 (14) Northwest Illinois nonmetropolitan: 1.
23 (15) West Central Illinois nonmetropolitan: 1.
24 (16) East Central Illinois nonmetropolitan: 1.
25 (17) South Illinois nonmetropolitan: 1.
26 (b) The Department shall distribute the available licenses
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1 established under this Section subject to the following:
2 (1) The drawing by lot for all available licenses
3 established under this Section shall occur on the same day
4 when practicable.
5 (2) Within each BLS Region, the first Qualifying
6 Social Equity Justice Involved Applicant drawn will have
7 the first right to an available license. The second
8 Qualifying Social Equity Justice Involved Applicant drawn
9 will have the second right to an available license. The
10 same pattern will continue for each subsequent applicant
11 drawn.
12 (3) The process for distributing available licenses
13 under this Section shall be recorded by the Department in
14 a format selected by the Department.
15 (4) A Dispensary Applicant is prohibited from becoming
16 a Qualifying Social Equity Justice Involved Applicant if a
17 principal officer resigns after the resulting final scores
18 for all scored applications pursuant to Sections 15-25 and
19 15-30 are released.
20 (5) No Qualifying Social Equity Justice Involved
21 Applicant may be awarded more than 2 Conditional Adult Use
22 Dispensing Organization Licenses at the conclusion of a
23 lottery conducted under this Section.
24 (6) No individual may be listed as a principal officer
25 of more than 2 Conditional Adult Use Dispensing
26 Organization Licenses awarded under this Section.
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1 (7) If, upon being selected for an available license
2 established under this Section, a Qualifying Social Equity
3 Justice Involved Applicant exceeds the limits under
4 paragraph (5) or (6), the Qualifying Social Equity Justice
5 Involved Applicant must choose which license to abandon
6 and notify the Department in writing within 5 business
7 days on forms prescribed by the Department. If the
8 Qualifying Social Equity Justice Involved Applicant does
9 not notify the Department as required, the Department
10 shall refuse to issue the Qualifying Social Equity Justice
11 Involved Applicant all available licenses established
12 under this Section obtained by lot in all BLS Regions.
13 (8) If, upon being selected for an available license
14 established under this Section, a Qualifying Social Equity
15 Justice Involved Applicant has a principal officer who is
16 a principal officer in more than 10 Early Approval Adult
17 Use Dispensing Organization Licenses, Conditional Adult
18 Use Dispensing Organization Licenses, Adult Use Dispensing
19 Organization Licenses, or any combination thereof, the
20 licensees and the Qualifying Social Equity Justice
21 Involved Applicant listing that principal officer must
22 choose which license to abandon pursuant to subsection (d)
23 of Section 15-36 and notify the Department in writing
24 within 5 business days on forms prescribed by the
25 Department. If the Dispensary Applicant or licensees do
26 not notify the Department as required, the Department
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1 shall refuse to issue the Qualifying Social Equity Justice
2 Involved Applicant all available licenses established
3 under this Section obtained by lot in all BLS Regions.
4 (9) All available licenses that have been abandoned
5 under paragraph (7) or (8) shall be distributed to the
6 next Qualifying Social Equity Justice Involved Applicant
7 drawn by lot.
8 Any and all rights conferred or obtained under this
9 subsection shall be limited to the provisions of this
10 subsection.
11 (c) An applicant who receives a Conditional Adult Use
12 Dispensing Organization License under this Section has 180
13 days from the date of the award to identify a physical location
14 for the dispensing organization's retail storefront. The
15 applicant shall provide evidence that the location is not
16 within 1,500 feet of an existing dispensing organization,
17 unless the applicant is a Social Equity Applicant or Social
18 Equity Justice Involved Applicant located or seeking to locate
19 within 1,500 feet of a dispensing organization licensed under
20 Section 15-15 or Section 15-20. If an applicant is unable to
21 find a suitable physical address in the opinion of the
22 Department within 180 days from the issuance of the
23 Conditional Adult Use Dispensing Organization License, the
24 Department may extend the period for finding a physical
25 address an additional 540 days if the Conditional Adult Use
26 Dispensing Organization License holder demonstrates a concrete
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1 attempt to secure a location and a hardship. If the Department
2 denies the extension or the Conditional Adult Use Dispensing
3 Organization License holder is unable to find a location or
4 become operational within 720 days of being awarded a
5 Conditional Adult Use Dispensing Organization License under
6 this Section, the Department shall rescind the Conditional
7 Adult Use Dispensing Organization License and award it
8 pursuant to subsection (b) and notify the new awardee at the
9 email address provided in the awardee's application, provided
10 the applicant receiving the Conditional Adult Use Dispensing
11 Organization License: (i) confirms a continued interest in
12 operating a dispensing organization; (ii) can provide evidence
13 that the applicant continues to meet all requirements for
14 holding a Conditional Adult Use Dispensing Organization
15 License set forth in this Act; and (iii) has not otherwise
16 become ineligible to be awarded a Conditional Adult Use
17 Dispensing Organization License. If the new awardee is unable
18 to accept the Conditional Adult Use Dispensing Organization
19 License, the Department shall award the Conditional Adult Use
20 Dispensing Organization License pursuant to subsection (b).
21 The new awardee shall be subject to the same required
22 deadlines as provided in this subsection.
23 (d) If, within 180 days of being awarded a Conditional
24 Adult Use Dispensing Organization License, a dispensing
25 organization is unable to find a location within the BLS
26 Region in which it was awarded a Conditional Adult Use
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1 Dispensing Organization License under this Section because no
2 jurisdiction within the BLS Region allows for the operation of
3 an Adult Use Dispensing Organization, the Department may
4 authorize the Conditional Adult Use Dispensing Organization
5 License holder to transfer its Conditional Adult Use
6 Dispensing Organization License to a BLS Region specified by
7 the Department.
8 (e) A dispensing organization that is awarded a
9 Conditional Adult Use Dispensing Organization License under
10 this Section shall not purchase, possess, sell, or dispense
11 cannabis or cannabis-infused products until the dispensing
12 organization has received an Adult Use Dispensing Organization
13 License issued by the Department pursuant to Section 15-36.
14 (f) The Department shall conduct a background check of the
15 prospective dispensing organization agents in order to carry
16 out this Article. The Illinois State Police shall charge the
17 applicant a fee for conducting the criminal history record
18 check, which shall be deposited into the State Police Services
19 Fund and shall not exceed the actual cost of the record check.
20 Each person applying as a dispensing organization agent shall
21 submit a full set of fingerprints to the Illinois State Police
22 for the purpose of obtaining a State and federal criminal
23 records check. These fingerprints shall be checked against the
24 fingerprint records now and hereafter, to the extent allowed
25 by law, filed with the Illinois State Police and the Federal
26 Bureau of Investigation criminal history records databases.
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1 The Illinois State Police shall furnish, following positive
2 identification, all Illinois conviction information to the
3 Department.
4 (g) The Department may verify information contained in
5 each application and accompanying documentation to assess the
6 applicant's veracity and fitness to operate a dispensing
7 organization.
8 (h) The Department may, in its discretion, refuse to issue
9 an authorization to an applicant who meets any of the
10 following criteria:
11 (1) An applicant who is unqualified to perform the
12 duties required of the applicant.
13 (2) An applicant who fails to disclose or states
14 falsely any information called for in the application.
15 (3) An applicant who has been found guilty of a
16 violation of this Act, who has had any disciplinary order
17 entered against the applicant by the Department, who has
18 entered into a disciplinary or nondisciplinary agreement
19 with the Department, whose medical cannabis dispensing
20 organization, medical cannabis cultivation organization,
21 Early Approval Adult Use Dispensing Organization License,
22 Early Approval Adult Use Dispensing Organization License
23 at a secondary site, Early Approval Cultivation Center
24 License, Conditional Adult Use Dispensing Organization
25 License, or Adult Use Dispensing Organization License was
26 suspended, restricted, revoked, or denied for just cause,
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1 or whose cannabis business establishment license was
2 suspended, restricted, revoked, or denied in any other
3 state.
4 (4) An applicant who has engaged in a pattern or
5 practice of unfair or illegal practices, methods, or
6 activities in the conduct of owning a cannabis business
7 establishment or other business.
8 (i) The Department shall deny the license if any principal
9 officer, board member, or person having a financial or voting
10 interest of 5% or greater in the licensee is delinquent in
11 filing any required tax return or paying any amount owed to the
12 State of Illinois.
13 (j) The Department shall verify an applicant's compliance
14 with the requirements of this Article and rules adopted under
15 this Article before issuing a Conditional Adult Use Dispensing
16 Organization License.
17 (k) If an applicant is awarded a Conditional Adult Use
18 Dispensing Organization License under this Section, the
19 information and plans provided in the application, including
20 any plans submitted for bonus points, shall become a condition
21 of the Conditional Adult Use Dispensing Organization License
22 and any Adult Use Dispensing Organization License issued to
23 the holder of the Conditional Adult Use Dispensing
24 Organization License, except as otherwise provided by this Act
25 or by rule. Dispensing organizations have a duty to disclose
26 any material changes to the application. The Department shall
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1 review all material changes disclosed by the dispensing
2 organization and may reevaluate its prior decision regarding
3 the awarding of a Conditional Adult Use Dispensing
4 Organization License, including, but not limited to,
5 suspending or permanently revoking a Conditional Adult Use
6 Dispensing Organization License. Failure to comply with the
7 conditions or requirements in the application may subject the
8 dispensing organization to discipline up to and including
9 suspension or permanent revocation of its authorization or
10 Conditional Adult Use Dispensing Organization License by the
11 Department.
12 (l) If an applicant has not begun operating as a
13 dispensing organization within one year after the issuance of
14 the Conditional Adult Use Dispensing Organization License
15 under this Section, the Department may permanently revoke the
16 Conditional Adult Use Dispensing Organization License and
17 award it to the next highest scoring applicant in the BLS
18 Region if a suitable applicant indicates a continued interest
19 in the Conditional Adult Use Dispensing Organization License
20 or may begin a new selection process to award a Conditional
21 Adult Use Dispensing Organization License.
22 (410 ILCS 705/15-155)
23 Sec. 15-155. Unlicensed practice; violation; civil
24 penalty.
25 (a) In addition to any other penalty provided by law, any
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1 person who practices, offers to practice, attempts to
2 practice, or holds oneself out to practice as a licensed
3 dispensing organization owner, principal officer,
4 agent-in-charge, or agent, cultivates, processes, distributes,
5 sells, or offers for sale cannabis, cannabis-infused products,
6 cannabis concentrates, or cannabis flower without being
7 licensed under this Act shall, in addition to any other
8 penalty provided by law, pay a civil penalty to the Department
9 of Financial and Professional Regulation in an amount not to
10 exceed $10,000 for each offense as determined by the
11 Department. Each day a person engages in unlicensed practice
12 in violation of the provisions of this Section constitutes a
13 separate offense. The civil penalty shall be assessed by the
14 Department after a hearing is held in accordance with the
15 provisions set forth in this Act regarding the provision of a
16 hearing for the discipline of a licensee.
17 (b) The Department, the Attorney General, any State or
18 local law enforcement agency, or any State's Attorney has the
19 authority and power to investigate any and all unlicensed
20 activity.
21 (b-5) Whenever a person is convicted of unlicensed
22 activity under this Act or the Compassionate Use of Medical
23 Cannabis Act, it shall be the duty of the clerk of the court in
24 which the conviction is had, within 5 days after the
25 conviction, to forward to the Secretary of Financial and
26 Professional Regulation a report of the conviction, and the
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1 court may recommend the suspension of any licenses awarded to
2 the convicted person under this Act, the Compassionate Use of
3 Medical Cannabis Act, or the Hemp Consumers Products Act.
4 (b-10) Whenever a person is convicted, for a third or
5 subsequent violation in a 3-year period, of unlicensed
6 activity under this Act or the Compassionate Use of Medical
7 Cannabis Act, the judge of the court in which the conviction is
8 had shall require the immediate surrender to the clerk of the
9 court of all licenses or conditional licenses awarded to the
10 convicted person under this Act, the Compassionate Use of
11 Medical Cannabis Act, or the Hemp Consumers Products Act, and
12 the clerk of the court shall, within 5 days after the
13 conviction, forward the surrendered licenses, together with a
14 report of the conviction, to the Secretary of Financial and
15 Professional Regulation.
16 (c) The civil penalty shall be paid within 60 days after
17 the effective date of the order imposing the civil penalty or
18 in accordance with the order imposing the civil penalty. The
19 order shall constitute a judgment and may be filed and
20 execution had thereon in the same manner as any judgment from
21 any court of this State.
22 (d) A violation of subsection (a) is an unlawful practice
23 under Section 2Z of the Consumer Fraud and Deceptive Business
24 Practices Act. All remedies, penalties, and authority granted
25 to the Attorney General under that Act shall be available for
26 the enforcement of this Act.
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1 (e) Nothing in this Section shall prohibit a unit of local
2 government from enacting a local law or ordinance to carry out
3 enforcement activities and assess civil penalties against
4 unlicensed cannabis sales.
5 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
6 (410 ILCS 705/20-60 new)
7 Sec. 20-60. Unlicensed practice; violation; civil penalty.
8 (a) In addition to any other penalty provided by law, any
9 person who practices, offers to practice, attempts to
10 practice, or holds oneself out to practice as a licensed
11 cultivation center, infuser, or craft grower owner, principal
12 officer, agent-in-charge, or agent or who cultivates,
13 processes, distributes, sells, or offers for sale cannabis,
14 cannabis-infused products, cannabis concentrates, or cannabis
15 flower without being licensed under this Act shall, in
16 addition to any other penalty provided by law, pay a civil
17 penalty to the Department of Agriculture in an amount not to
18 exceed $10,000 for each offense. Each day any person engages
19 in unlicensed practice in violation of the provisions of this
20 Section constitutes a separate offense. The civil penalty
21 shall be assessed by the Department after a hearing is held in
22 accordance with the provisions set forth in this Act regarding
23 hearings for the discipline of a licensee.
24 (b) The Department, the Attorney General, any State or
25 local law enforcement agency, or any State's Attorney has the
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1 authority and power to investigate any and all unlicensed
2 activity.
3 (b-5) Whenever a person is convicted of unlicensed
4 activity under this Act, or the Compassionate Use of Medical
5 Cannabis Act, it shall be the duty of the clerk of the court in
6 which the conviction is had, within 5 days after the
7 conviction, to forward to the Director of Agriculture a report
8 of the conviction, and the court may recommend the suspension
9 of any licenses awarded to the convicted person under this
10 Act, the Compassionate Use of Medical Cannabis Act, or the
11 Hemp Consumers Products Act.
12 (b-10) Whenever a person is convicted, for a third
13 subsequent violation in a 3 -year period, of unlicensed
14 activity under this Act, or the Compassionate Use of Medical
15 Cannabis Act, the judge of the court in which the conviction is
16 had shall require the surrender to the clerk of the court of
17 all licenses or conditional license awarded to the convicted
18 person under this Act, the Compassionate Use of Medical
19 Cannabis Act, or the Hemp Consumers Products Act, and the
20 clerk of the court shall, within 5 days after the conviction,
21 forward the surrendered licenses, together with a report of
22 the conviction, to the Director of Agriculture.
23 (c) The civil penalty shall be paid within 60 days after
24 the effective date of the order imposing the civil penalty or
25 in accordance with the order imposing the civil penalty. The
26 order shall constitute a judgment and may be filed and
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1 execution had thereon in the same manner as any judgment from
2 any court of this State.
3 (d) In addition to any other remedies or penalties
4 provided by law, upon a third or subsequent revocation or
5 suspension of a license, a unit of local government may
6 suspend or revoke any locally established licenses held by the
7 person, and prohibit the person
from further operations and
8 seize any cannabis or THC product.
9 (410 ILCS 705/35-22 new)
10 Sec. 35-22. Social Equity Justice Involved Lottery for 50
11 New Conditional Infuser Organization Licenses.
12 (a) In addition to any of the licenses issued under this
13 Article, within 10 business days after the resulting final
14 scores for all scored applications pursuant to Section 35-15
15 are released, the Department shall issue up to 50 Conditional
16 Infuser Organization Licenses by lot, pursuant to the
17 application process adopted under this Section. In order to be
18 eligible to be awarded a Conditional Infuser Organization
19 License by lot, an Infuser Applicant must be a Qualifying
20 Social Equity Justice Involved Applicant.
21 The licenses issued under this Section shall be awarded on
22 or before July 1, 2025 in each BLS Region in the following
23 amounts:
24 (1) Bloomington: 1.
25 (2) Cape Girardeau: 1.
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1 (3) Carbondale-Marion: 1.
2 (4) Champaign-Urbana: 1.
3 (5) Chicago-Naperville-Elgin: 31.
4 (6) Danville: 1.
5 (7) Davenport-Moline-Rock Island: 1.
6 (8) Decatur: 1.
7 (9) Kankakee: 1.
8 (10) Peoria: 2.
9 (11) Rockford: 1.
10 (12) St. Louis: 3.
11 (13) Springfield: 1.
12 (14) Northwest Illinois nonmetropolitan: 1.
13 (15) West Central Illinois nonmetropolitan: 1.
14 (16) East Central Illinois nonmetropolitan: 1.
15 (17) South Illinois nonmetropolitan: 1.
16 (b) The Department shall distribute the available licenses
17 established under this Section subject to the following:
18 (1) The drawing by lot for all available licenses
19 established under this Section shall occur on the same day
20 when practicable.
21 (2) Within each BLS Region, the first Qualifying
22 Social Equity Justice Involved Applicant drawn will have
23 the first right to an available license. The second
24 Qualifying Social Equity Justice Involved Applicant drawn
25 will have the second right to an available license. The
26 same pattern will continue for each subsequent applicant
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1 drawn.
2 (3) The process for distributing available licenses
3 under this Section shall be recorded by the Department in
4 a format selected by the Department.
5 (4) An Infuser Applicant is prohibited from becoming a
6 Qualifying Social Equity Justice Involved Applicant if a
7 principal officer resigns after the resulting final scores
8 for all scored applications pursuant to Sections 35-15 are
9 released.
10 (5) No Qualifying Social Equity Justice Involved
11 Applicant may be awarded more than 2 Conditional Infuser
12 Organization Licenses at the conclusion of a lottery
13 conducted under this Section.
14 (6) No individual may be listed as a principal officer
15 of more than 2 Conditional Infuser Organization Licenses
16 awarded under this Section.
17 (7) If, upon being selected for an available license
18 established under this Section, a Qualifying Social Equity
19 Justice Involved Applicant exceeds the limits under
20 paragraph (5) or (6), the Qualifying Social Equity Justice
21 Involved Applicant must choose which license to abandon
22 and notify the Department in writing within 5 business
23 days on forms prescribed by the Department. If the
24 Qualifying Social Equity Justice Involved Applicant does
25 not notify the Department as required, the Department
26 shall refuse to issue the Qualifying Social Equity Justice
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1 Involved Applicant all available licenses established
2 under this Section obtained by lot in all BLS Regions.
3 (8) If, upon being selected for an available license
4 established under this Section, a Qualifying Social Equity
5 Justice Involved Applicant has a principal officer who is
6 a principal officer in more than 10 Early Approval Adult
7 Use Dispensing Organization Licenses, Conditional Adult
8 Use Dispensing Organization Licenses, Adult Use Dispensing
9 Organization Licenses, or any combination thereof, the
10 licensees and the Qualifying Social Equity Justice
11 Involved Applicant listing that principal officer must
12 choose which license to abandon and notify the Department
13 in writing within 5 business days on forms prescribed by
14 the Department. If the Infuser Applicant or licensees do
15 not notify the Department as required, the Department
16 shall refuse to issue the Qualifying Social Equity Justice
17 Involved Applicant all available licenses established
18 under this Section obtained by lot in all BLS Regions.
19 (9) All available licenses that have been abandoned
20 under paragraph (7) or (8) shall be distributed to the
21 next Qualifying Social Equity Justice Involved Applicant
22 drawn by lot.
23 Any and all rights conferred or obtained under this
24 subsection shall be limited to the provisions of this
25 subsection.
26 (c) An applicant who receives a Conditional Infuser
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1 Organization License under this Section has 180 days from the
2 date of the award to identify a physical location for the
3 infuser organization's activities. The applicant shall provide
4 evidence that the location is not within 1,500 feet of an
5 existing dispensing organization, unless the applicant is a
6 Social Equity Applicant or Social Equity Justice Involved
7 Applicant located or seeking to locate within 1,500 feet of a
8 dispensing organization licensed under Section 15-15 or
9 Section 15-20. If an applicant is unable to find a suitable
10 physical address in the opinion of the Department within 180
11 days from the issuance of the Conditional Infuser Organization
12 License, the Department may extend the period for finding a
13 physical address an additional 540 days if the Conditional
14 Infuser Organization License holder demonstrates a concrete
15 attempt to secure a location and a hardship. If the Department
16 denies the extension or the Conditional Infuser Organization
17 License holder is unable to find a location or become
18 operational within 720 days of being awarded a Conditional
19 Infuser Organization License under this Section, the
20 Department shall rescind the Conditional Infuser Organization
21 License and award it pursuant to subsection (b) and notify the
22 new awardee at the email address provided in the awardee's
23 application, provided the applicant receiving the Conditional
24 Infuser Organization License: (i) confirms a continued
25 interest in operating an infuser organization; (ii) can
26 provide evidence that the applicant continues to meet all
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1 requirements for holding a Conditional Infuser Organization
2 License set forth in this Act; and (iii) has not otherwise
3 become ineligible to be awarded a Conditional Infuser
4 Organization License. If the new awardee is unable to accept
5 the Conditional Infuser Organization License, the Department
6 shall award the Conditional Infuser Organization License
7 pursuant to subsection (b). The new awardee shall be subject
8 to the same required deadlines as provided in this subsection.
9 (d) If, within 180 days of being awarded a Conditional
10 Infuser Organization License, a dispensing organization is
11 unable to find a location within the BLS Region in which it was
12 awarded a Conditional Infuser Organization License under this
13 Section because no jurisdiction within the BLS Region allows
14 for the operation of an Infuser Organization, the Department
15 may authorize the Conditional Infuser Organization License
16 holder to transfer its Conditional Infuser Organization
17 License to a BLS Region specified by the Department.
18 (e) An infuser organization that is awarded a Conditional
19 Infuser Organization License under this Section shall not
20 directly incorporate cannabis or cannabis concentrate into a
21 product formulation to produce a cannabis-infused product
22 until the infuser organization has received an Infuser
23 Organization License issued by the Department pursuant to
24 Section 35-15.
25 (f) The Department shall conduct a background check of the
26 prospective dispensing organization agents in order to carry
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1 out this Article. The Illinois State Police shall charge the
2 applicant a fee for conducting the criminal history record
3 check, which shall be deposited into the State Police Services
4 Fund and shall not exceed the actual cost of the record check.
5 Each person applying as a dispensing organization agent shall
6 submit a full set of fingerprints to the Illinois State Police
7 for the purpose of obtaining a State and federal criminal
8 records check. These fingerprints shall be checked against the
9 fingerprint records now and hereafter, to the extent allowed
10 by law, filed with the Illinois State Police and the Federal
11 Bureau of Investigation criminal history records databases.
12 The Illinois State Police shall furnish, following positive
13 identification, all Illinois conviction information to the
14 Department.
15 (g) The Department may verify information contained in
16 each application and accompanying documentation to assess the
17 applicant's veracity and fitness to operate a dispensing
18 organization.
19 (h) The Department may, in its discretion, refuse to issue
20 an authorization to an applicant who meets any of the
21 following criteria:
22 (1) An applicant who is unqualified to perform the
23 duties required of the applicant.
24 (2) An applicant who fails to disclose or states
25 falsely any information called for in the application.
26 (3) An applicant who has been found guilty of a
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1 violation of this Act, who has had any disciplinary order
2 entered against the applicant by the Department, who has
3 entered into a disciplinary or nondisciplinary agreement
4 with the Department, whose medical cannabis dispensing
5 organization, medical cannabis cultivation organization,
6 Early Approval Adult Use Dispensing Organization License,
7 Early Approval Adult Use Dispensing Organization License
8 at a secondary site, Early Approval Cultivation Center
9 License, Conditional Adult Use Dispensing Organization
10 License, or Adult Use Dispensing Organization License was
11 suspended, restricted, revoked, or denied for just cause,
12 or whose cannabis business establishment license was
13 suspended, restricted, revoked, or denied in any other
14 state.
15 (4) An applicant who has engaged in a pattern or
16 practice of unfair or illegal practices, methods, or
17 activities in the conduct of owning a cannabis business
18 establishment or other business.
19 (i) The Department shall deny the license if any principal
20 officer, board member, or person having a financial or voting
21 interest of 5% or greater in the licensee is delinquent in
22 filing any required tax return or paying any amount owed to the
23 State of Illinois.
24 (j) The Department shall verify an applicant's compliance
25 with the requirements of this Article and rules adopted under
26 this Article before issuing a Conditional Infuser Organization
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1 License.
2 (k) If an applicant is awarded a Conditional Infuser
3 Organization License under this Section, the information and
4 plans provided in the application, including any plans
5 submitted for bonus points, shall become a condition of the
6 Conditional Infuser Organization License and any Infuser
7 Organization License issued to the holder of the Conditional
8 Infuser Organization License, except as otherwise provided by
9 this Act or by rule. Dispensing organizations have a duty to
10 disclose any material changes to the application. The
11 Department shall review all material changes disclosed by the
12 dispensing organization and may reevaluate its prior decision
13 regarding the awarding of a Conditional Infuser Organization
14 License, including, but not limited to, suspending or
15 permanently revoking a Conditional Infuser Organization
16 License. Failure to comply with the conditions or requirements
17 in the application may subject the dispensing organization to
18 discipline up to and including suspension or permanent
19 revocation of its authorization or Conditional Infuser
20 Organization License by the Department.
21 (l) If an applicant has not begun operating as a
22 dispensing organization within one year after the issuance of
23 the Conditional Infuser Organization License under this
24 Section, the Department may permanently revoke the Conditional
25 Infuser Organization License and award it to the next highest
26 scoring applicant in the BLS Region if a suitable applicant
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1 indicates a continued interest in the Conditional Infuser
2 Organization License or may begin a new selection process to
3 award a Conditional Infuser Organization License.
4 (410 ILCS 705/55-35)
5 Sec. 55-35. Administrative rulemaking.
6 (a) No later than 180 days after the effective date of this
7 Act, the Department of Agriculture, the Illinois State Police,
8 the Department of Financial and Professional Regulation, the
9 Department of Revenue, the Department of Commerce and Economic
10 Opportunity, and the Treasurer's Office shall adopt permanent
11 rules in accordance with their responsibilities under this
12 Act. The Department of Agriculture, the Illinois State Police,
13 the Department of Financial and Professional Regulation, the
14 Department of Revenue, and the Department of Commerce and
15 Economic Opportunity may adopt rules necessary to regulate
16 personal cannabis use through the use of emergency rulemaking
17 in accordance with subsection (gg) of Section 5-45 of the
18 Illinois Administrative Procedure Act. The General Assembly
19 finds that the adoption of rules to regulate cannabis use is
20 deemed an emergency and necessary for the public interest,
21 safety, and welfare.
22 (b) The Department of Agriculture rules may address, but
23 are not limited to, the following matters related to
24 cultivation centers, craft growers, infuser organizations, and
25 transporting organizations with the goal of protecting against
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1 diversion and theft, without imposing an undue burden on the
2 cultivation centers, craft growers, infuser organizations, or
3 transporting organizations:
4 (1) oversight requirements for cultivation centers,
5 craft growers, infuser organizations, and transporting
6 organizations;
7 (2) recordkeeping requirements for cultivation
8 centers, craft growers, infuser organizations, and
9 transporting organizations;
10 (3) security requirements for cultivation centers,
11 craft growers, infuser organizations, and transporting
12 organizations, which shall include that each cultivation
13 center, craft grower, infuser organization, and
14 transporting organization location must be protected by a
15 fully operational security alarm system;
16 (4) standards for enclosed, locked facilities under
17 this Act;
18 (5) procedures for suspending or revoking the
19 identification cards of agents of cultivation centers,
20 craft growers, infuser organizations, and transporting
21 organizations that commit violations of this Act or the
22 rules adopted under this Section;
23 (6) rules concerning the intrastate transportation of
24 cannabis from a cultivation center, craft grower, infuser
25 organization, and transporting organization to a
26 dispensing organization;
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1 (7) standards concerning the testing, quality,
2 cultivation, and processing of cannabis; and
3 (7.5) standards and rules for the investigation and
4 enforcement of unregulated and unlicensed sale of cannabis
5 and cannabis products; and
6 (8) any other matters under oversight by the
7 Department of Agriculture as are necessary for the fair,
8 impartial, stringent, and comprehensive administration of
9 this Act.
10 (b-5) Notwithstanding any standards and rules developed
11 under paragraph (7.5) of subsection (b) of this Section, the
12 Department of Agriculture shall update through official
13 guidance and publish publicly on its website the cannabinoids
14 that it deems tetrahydrocannabinol or THC on or before January
15 1 and July 1 of each calendar year.
16 (c) The Department of Financial and Professional
17 Regulation rules may address, but are not limited to, the
18 following matters related to dispensing organizations, with
19 the goal of protecting against diversion and theft, without
20 imposing an undue burden on the dispensing organizations:
21 (1) oversight requirements for dispensing
22 organizations;
23 (2) recordkeeping requirements for dispensing
24 organizations;
25 (3) security requirements for dispensing
26 organizations, which shall include that each dispensing
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1 organization location must be protected by a fully
2 operational security alarm system;
3 (4) procedures for suspending or revoking the licenses
4 of dispensing organization agents that commit violations
5 of this Act or the rules adopted under this Act;
6 (4.5) standards and rules for the investigation and
7 enforcement of unregulated and unlicensed sale of cannabis
8 and cannabis products; and
9 (5) any other matters under oversight by the
10 Department of Financial and Professional Regulation that
11 are necessary for the fair, impartial, stringent, and
12 comprehensive administration of this Act.
13 (d) The Department of Revenue rules may address, but are
14 not limited to, the following matters related to the payment
15 of taxes by cannabis business establishments:
16 (1) recording of sales;
17 (2) documentation of taxable income and expenses;
18 (3) transfer of funds for the payment of taxes; or
19 (4) any other matter under the oversight of the
20 Department of Revenue.
21 (e) The Department of Commerce and Economic Opportunity
22 rules may address, but are not limited to, a loan program or
23 grant program to assist Social Equity Applicants access the
24 capital needed to start a cannabis business establishment. The
25 names of recipients and the amounts of any moneys received
26 through a loan program or grant program shall be a public
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1 record.
2 (f) The Illinois State Police rules may address
3 enforcement of its authority under this Act. The Illinois
4 State Police shall not make rules that infringe on the
5 exclusive authority of the Department of Financial and
6 Professional Regulation or the Department of Agriculture over
7 licensees under this Act.
8 (g) The Department of Human Services shall develop and
9 disseminate:
10 (1) educational information about the health risks
11 associated with the use of cannabis; and
12 (2) one or more public education campaigns in
13 coordination with local health departments and community
14 organizations, including one or more prevention campaigns
15 directed at children, adolescents, parents, and pregnant
16 or breastfeeding women, to inform them of the potential
17 health risks associated with intentional or unintentional
18 cannabis use.
19 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
20 102-538, eff. 8-20-21.)
21 Section 910. The Industrial Hemp Act is amended by
22 changing Sections 5 and 20 as follows:
23 (505 ILCS 89/5)
24 Sec. 5. Definitions. In this Act:
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1 "Department" means the Department of Agriculture.
2 "Director" means the Director of Agriculture.
3 "Hemp" or "industrial hemp" means the plant Cannabis
4 sativa L. and any part of that plant, whether growing or not,
5 with a delta-9 tetrahydrocannabinol concentration of not more
6 than 0.3 percent on a dry weight basis and includes any
7 intermediate or finished product made or derived from
8 industrial hemp that is not intended for human or animal
9 consumption by any means.
10 "Hemp production plan" means a plan submitted by the
11 Department to the Secretary of the United States Department of
12 Agriculture pursuant to the federal Agriculture Improvement
13 Act of 2018, Public Law 115-334, and consistent with the
14 Domestic Hemp Production Program pursuant to 7 CFR Part 990
15 wherein the Department establishes its desire to have primary
16 regulatory authority over the production of hemp.
17 "Land area" means a farm as defined in Section 1-60 of the
18 Property Tax Code in this State or land or facilities under the
19 control of an institution of higher education.
20 "Person" means any individual, partnership, firm,
21 corporation, company, society, association, the State or any
22 department, agency, or subdivision thereof, or any other
23 entity.
24 "Process" means the conversion of raw industrial hemp
25 plant material into a form that is presently legal to import
26 from outside the United States under federal law.
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1 "THC" means delta-9 tetrahydrocannabinol.
2 (Source: P.A. 102-690, eff. 12-17-21.)
3 (505 ILCS 89/20)
4 Sec. 20. Hemp products. Nothing in this Act shall alter
5 the legality of industrial hemp or hemp products not intended
6 for human or animal consumption that are presently legal to
7 possess or own. The manufacture, sale, and advertisement of
8 all hemp or hemp products that are intended for human or animal
9 consumption by any means are regulated under the Hemp Consumer
10 Products Act hemp or hemp products that are presently legal to
11 possess or own.
12 (Source: P.A. 100-1091, eff. 8-26-18.)
13 Section 915. The Consumer Fraud and Deceptive Business
14 Practices Act is amended by changing Section 2Z as follows:
15 (815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
16 Sec. 2Z. Violations of other Acts. Any person who
17 knowingly violates the Automotive Repair Act, the Automotive
18 Collision Repair Act, the Home Repair and Remodeling Act, the
19 Dance Studio Act, the Physical Fitness Services Act, the
20 Hearing Instrument Consumer Protection Act, the Illinois Union
21 Label Act, the Installment Sales Contract Act, the Job
22 Referral and Job Listing Services Consumer Protection Act, the
23 Travel Promotion Consumer Protection Act, the Credit Services
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1 Organizations Act, the Automatic Telephone Dialers Act, the
2 Pay-Per-Call Services Consumer Protection Act, the Telephone
3 Solicitations Act, the Illinois Funeral or Burial Funds Act,
4 the Cemetery Oversight Act, the Cemetery Care Act, the Safe
5 and Hygienic Bed Act, the Illinois Pre-Need Cemetery Sales
6 Act, the High Risk Home Loan Act, the Payday Loan Reform Act,
7 the Predatory Loan Prevention Act, the Mortgage Rescue Fraud
8 Act, subsection (a) or (b) of Section 3-10 of the Cigarette Tax
9 Act, subsection (a) or (b) of Section 3-10 of the Cigarette Use
10 Tax Act, the Electronic Mail Act, the Internet Caller
11 Identification Act, paragraph (6) of subsection (k) of Section
12 6-305 of the Illinois Vehicle Code, Section 11-1431, 18d-115,
13 18d-120, 18d-125, 18d-135, 18d-150, or 18d-153 of the Illinois
14 Vehicle Code, Article 3 of the Residential Real Property
15 Disclosure Act, the Automatic Contract Renewal Act, the
16 Reverse Mortgage Act, Section 25 of the Youth Mental Health
17 Protection Act, the Personal Information Protection Act, or
18 the Student Online Personal Protection Act, or subsection (a)
19 of Section 15-155 of the Cannabis Regulation and Tax Act
20 commits an unlawful practice within the meaning of this Act.
21 (Source: P.A. 100-315, eff. 8-24-17; 100-416, eff. 1-1-18;
22 100-863, eff. 8-14-18; 101-658, eff. 3-23-21.)
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