Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3926 Compare Versions

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

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 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
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3926 Introduced 4/10/2024, by Sen. Kimberly A. Lightford SYNOPSIS AS INTRODUCED:
3	3	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
4	4	New Act
5	5	5 ILCS 100/5-45.55 new
6	6	410 ILCS 705/1-10
7	7	410 ILCS 705/5-11 new
8	8	410 ILCS 705/15-35.5 new
9	9	410 ILCS 705/15-35.11 new
10	10	410 ILCS 705/15-155
11	11	410 ILCS 705/20-60 new
12	12	410 ILCS 705/35-22 new
13	13	410 ILCS 705/55-35
14	14	505 ILCS 89/5
15	15	505 ILCS 89/20
16	16	815 ILCS 505/2Z from Ch. 121 1/2, par. 262Z
17	17	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.
18	18	LRB103 40218 CES 72109 b LRB103 40218 CES 72109 b
19	19	LRB103 40218 CES 72109 b
20	20	A BILL FOR
21	21	SB3926LRB103 40218 CES 72109 b SB3926 LRB103 40218 CES 72109 b
22	22	SB3926 LRB103 40218 CES 72109 b
23	23	1 AN ACT concerning regulation.
24	24	2 Be it enacted by the People of the State of Illinois,
25	25	3 represented in the General Assembly:
26	26	4 Section 1. Short title. This Act may be cited as the Hemp
27	27	5 Consumer Products Act.
28	28	6 Section 5. Definitions. In this Act:
29	29	7 "Accreditation body" means an impartial non-profit
30	30	8 organization that operates in conformance with the
31	31	9 International Organization for Standardization
32	32	10 (ISO)/International Electrotechnical Commission (IEC)
33	33	11 standard 17011 and is a signatory to the International
34	34	12 Laboratory Accreditation Cooperation (ILAC) Mutual Recognition
35	35	13 Arrangement (MRA) for Testing.
36	36	14 "Artificially derived cannabinoid" means a cannabinoid
37	37	15 that is created by a chemical reaction that changes the
38	38	16 molecular structure of any chemical substance derived from
39	39	17 Cannabis sativa.
40	40	18 "Department" means the Department of Agriculture.
41	41	19 "Director" means the Director of Agriculture.
42	42	20 "Hemp consumer product" means a product offered for sale
43	43	21 or distribution that:
44	44	22 (1) contains naturally occurring hemp
45	45	23 phytocannabinoids;
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47	47
48	48
49	49	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3926 Introduced 4/10/2024, by Sen. Kimberly A. Lightford SYNOPSIS AS INTRODUCED:
50	50	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
51	51	New Act
52	52	5 ILCS 100/5-45.55 new
53	53	410 ILCS 705/1-10
54	54	410 ILCS 705/5-11 new
55	55	410 ILCS 705/15-35.5 new
56	56	410 ILCS 705/15-35.11 new
57	57	410 ILCS 705/15-155
58	58	410 ILCS 705/20-60 new
59	59	410 ILCS 705/35-22 new
60	60	410 ILCS 705/55-35
61	61	505 ILCS 89/5
62	62	505 ILCS 89/20
63	63	815 ILCS 505/2Z from Ch. 121 1/2, par. 262Z
64	64	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.
65	65	LRB103 40218 CES 72109 b LRB103 40218 CES 72109 b
66	66	LRB103 40218 CES 72109 b
67	67	A BILL FOR
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73	73	New Act
74	74	5 ILCS 100/5-45.55 new
75	75	410 ILCS 705/1-10
76	76	410 ILCS 705/5-11 new
77	77	410 ILCS 705/15-35.5 new
78	78	410 ILCS 705/15-35.11 new
79	79	410 ILCS 705/15-155
80	80	410 ILCS 705/20-60 new
81	81	410 ILCS 705/35-22 new
82	82	410 ILCS 705/55-35
83	83	505 ILCS 89/5
84	84	505 ILCS 89/20
85	85	815 ILCS 505/2Z from Ch. 121 1/2, par. 262Z
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104	104	1 (2) is intended for consumption by any means,
105	105	2 including, but not limited to, oral ingestion, inhalation,
106	106	3 smoking, or topical absorption;
107	107	4 (3) contains a total tetrahydrocannabinol
108	108	5 concentration of no greater than:
109	109	6 (a) 0.3% for any intermediate or finished plant
110	110	7 product or material, or any hemp consumer product
111	111	8 intended for consumption by inhalation or smoking; or
112	112	9 (b) 0.5 milligrams per serving or individual
113	113	10 product unit, and 2 milligrams per package for
114	114	11 products sold in multiple servings or units, for any
115	115	12 beverage, food, oil, ointment, tincture, topical
116	116	13 formation, or any other product that is intended for
117	117	14 human consumption by means other than inhalation or
118	118	15 smoking; and
119	119	16 (4) contains an amount of total hemp cannabinoid
120	120	17 concentration that is at least 25 times greater than the
121	121	18 amount of total tetrahydrocannabinol concentration per
122	122	19 serving and per package.
123	123	20 "Hemp cannabinoid" means a naturally occurring
124	124	21 phytocannabinoid derived from the hemp plant that does not
125	125	22 have an intoxicating effect on the mind and body, as
126	126	23 determined by the Department by rule, including:
127	127	24 (1) cannabidiol (CBD);
128	128	25 (2) cannabichromene (CBC);
129	129	26 (3) cannabicitran (CBT);
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140	140	1 (4) cannabicyclol (CBL);
141	141	2 (5) cannabielsoin (CBE);
142	142	3 (6) cannabigerol (CBG);
143	143	4 (7) cannabidivarin (CBDV); or
144	144	5 (8) cannabinol (CBN).
145	145	6 "Hemp consumer products processor" means a person or
146	146	7 entity licensed to source industrial hemp plant material from
147	147	8 a licensed hemp cultivator, and process, manufacture, and
148	148	9 distribute finished hemp consumer products to hemp consumer
149	149	10 products retailers under the product forms, product standards,
150	150	11 limits, packaging, labeling, minimum testing, and other
151	151	12 requirements under this Act and the rules and guidance
152	152	13 established by the Department.
153	153	14 "Hemp consumer products retailer" means a person or entity
154	154	15 licensed to sell finished hemp consumer products to consumers
155	155	16 under the product forms, product standards, limits, packaging,
156	156	17 labeling, minimum testing, and other requirements set forth
157	157	18 under this Act and under rules and guidance established by the
158	158	19 Department.
159	159	20 "Scope of accreditation" means a document issued by an
160	160	21 accreditation body that attests to the laboratory's competence
161	161	22 to carry out specific testing and analysis.
162	162	23 "Synthetic cannabinoid" means a cannabinoid-like compound
163	163	24 that was produced using chemical synthesis, chemical
164	164	25 modification, or chemical conversion, including in vitro
165	165	26 biosynthesis or other bioconversion of such a method.
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176	176	1 Synthetic cannabinoids include the conversion of cannabinoids
177	177	2 from one chemical structure to another, such as
178	178	3 tetrahydrocannabinol that was produced by the conversion of
179	179	4 cannabidiol.
180	180	5 "Testing laboratory" means an independent, third-party
181	181	6 laboratory, contracted by a licensee to test hemp consumer
182	182	7 products.
183	183	8 "Tetrahydrocannabinol" or "THC" means any naturally
184	184	9 occurring or synthetic tetrahydrocannabinol, including its
185	185	10 salts, isomers, and salts of isomers whenever the existence of
186	186	11 such salts, isomers, and salts of isomers is possible within
187	187	12 the specific chemical designation and any preparation,
188	188	13 mixture, or substance containing, or mixed or infused with,
189	189	14 any detectable amount of tetrahydrocannabinol or
190	190	15 tetrahydrocannabolic acid, including, but not limited to,
191	191	16 delta-8-tetrahydrocannabinol, delta-9-tetrahydrocannabinol,
192	192	17 delta-10-tetrahydrocannabinol, tetrahydrocannabolic acid,
193	193	18 tetrahydrocannabipherol, or hexahydrocannabinol, however
194	194	19 derived, or any other substance determined to have similar
195	195	20 intoxicating effects on the mind or body by the Department.
196	196	21 For the purposes of this definition, "isomer" means the
197	197	22 optical, position, and geometric isomers.
198	198	23 Section 10. Prohibitions.
199	199	24 (a) No person shall process, manufacture, label,
200	200	25 distribute for sale, sell, offer for sale, market, or
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211	211	1 advertise any hemp consumer product within this State without
212	212	2 obtaining a license under this Act.
213	213	3 (b) No licensee may convert or concentrate cannabinoids to
214	214	4 create isomers of THC, however derived.
215	215	5 (c) No licensee may sell hemp consumer products that were
216	216	6 created using the conversion or concentration of cannabinoids
217	217	7 to create isomers of THC, however derived.
218	218	8 (d) No licensee shall process, manufacture, distribute for
219	219	9 sale, sell, offer for sale, market, or advertise any hemp
220	220	10 consumer product unless the product complies with the
221	221	11 labeling, packaging, minimum testing, and other requirements
222	222	12 of this Act and any administrative rules adopted by the
223	223	13 Department.
224	224	14 (e) A product that has a THC concentration greater than
225	225	15 the limits set forth for hemp consumer products as defined in
226	226	16 this Act shall be regulated as cannabis as defined in the
227	227	17 Cannabis Regulation and Tax Act, whether or not the product is
228	228	18 made with or derived from hemp, industrial hemp, or derived
229	229	19 from natural or synthetic sources.
230	230	20 (f) No product intended for consumption by any means that
231	231	21 is derived from hemp or marketed as hemp shall be distributed
232	232	22 for sale, offered for sale, or sold to a consumer within this
233	233	23 State unless it meets the minimum requirements of this Act.
234	234	24 Section 15. Applications and licensing.
235	235	25 (a) The Department shall create applicable rules,
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246	246	1 guidance, and forms for licensing of hemp consumer products
247	247	2 retailers and hemp consumer products processors.
248	248	3 (b) An application for licensure shall be submitted to the
249	249	4 Department on a form prescribed by the Department, which shall
250	250	5 include:
251	251	6 (1) the name, address, and telephone number of the
252	252	7 applicant;
253	253	8 (2) identification of all real property, buildings,
254	254	9 and facilities that will be used for the processing,
255	255	10 manufacturing, distribution, or retail sale of hemp, as
256	256	11 applicable;
257	257	12 (3) the days and hours of operation;
258	258	13 (4) the federal employer identification number of the
259	259	14 applicant;
260	260	15 (5) for applicants that intend to extract hemp into
261	261	16 hemp consumer products:
262	262	17 (A) identification of all extraction methods that
263	263	18 will be used to carry out the extraction; and
264	264	19 (B) evidence of Good Manufacturing Practices used
265	265	20 in the extraction of hemp and manufacturing of hemp
266	266	21 consumer products, including proof of a qualified
267	267	22 third-party Good Manufacturing Practices audit;
268	268	23 (6) a copy and description of any other license or
269	269	24 licenses issued by state or federal authorities related to
270	270	25 hemp or cannabis operations or ancillary services;
271	271	26 (7) a summary of the sources of industrial, hemp
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282	282	1 materials, hemp consumer products, and hemp extract to be
283	283	2 used, as applicable;
284	284	3 (8) types of hemp consumer products to be manufactured
285	285	4 or sold, and an attestation that all hemp consumer
286	286	5 products will be manufactured or sold in conformance with
287	287	6 this Act and rules and guidelines adopted by the
288	288	7 Department;
289	289	8 (9) an attestation that the applicant's standard
290	290	9 operating procedures will incorporate any language or
291	291	10 requirements provided by the Department to adequately
292	292	11 address quality assurance, security, and a plan to ensure
293	293	12 all hemp and hemp extract obtained meets the requirements
294	294	13 of this Act and rules adopted by the Department;
295	295	14 (10) a description of any other businesses or business
296	296	15 activities conducted on the premises to be licensed;
297	297	16 (11) copies of the organizational documents of the
298	298	17 applicant;
299	299	18 (12) identification of the person or persons with the
300	300	19 ability to direct the activity of the applicant or
301	301	20 licensee, including principals, officers, or others with
302	302	21 such control; and
303	303	22 (13) any other information required by the Department.
304	304	23 (c) Prior to submission, applicants shall verify the truth
305	305	24 and veracity of the information contained in the application.
306	306	25 (d) The Department may reject or deny an application if it
307	307	26 determines that the information contained therein is
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318	318	1 incomplete, false, inaccurate, or omits a material fact.
319	319	2 (e) Applications require a non-refundable application fee
320	320	3 of $1,000 for hemp consumer product processors and $100 for
321	321	4 hemp consumer products retailers.
322	322	5 (f) Licenses shall not be transferable or assignable
323	323	6 without prior written approval of the Department including,
324	324	7 without limitation, to another licensee.
325	325	8 (g) Applications are valid for a period of one year and
326	326	9 must be renewed annually.
327	327	10 (i) An application to renew any license issued under this
328	328	11 Act shall be filed with the Department not more than 90 days
329	329	12 nor less than 30 days prior to the expiration thereof. If a
330	330	13 renewal application is not filed at least 30 days prior to the
331	331	14 expiration thereof, the Department may determine that the
332	332	15 license shall expire and become void on such expiration date.
333	333	16 (h) The Department may revoke any license issued under
334	334	17 this Act for failure to adhere to the requirements of this Act
335	335	18 and the rules adopted by the Department.
336	336	19 (i) Hemp consumer products retailer applicants who submit
337	337	20 a completed application to the Department on or before October
338	338	21 1, 2024 may sell hemp consumer products at retail to consumers
339	339	22 before having a license approved or denied by the Department
340	340	23 so long as the hemp consumer products retail applicant adheres
341	341	24 to all requirements of this Act while the application is under
342	342	25 review.
343	343	26 (1) Upon approval, the hemp consumer products retailer
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354	354	1 may continue to operate in accordance with this Act.
355	355	2 (2) If denied, applicants shall cease to operate as a
356	356	3 hemp consumer products retailer and processor, unless and
357	357	4 until the applicant is later awarded and issued a license
358	358	5 by the Department.
359	359	6 Section 20. Requirements for hemp consumer products
360	360	7 licensees.
361	361	8 (a) The Department shall license and regulate hemp
362	362	9 consumer products processors for the purpose of allowing
363	363	10 processors to obtain and source lawful industrial hemp and
364	364	11 hemp plant materials for manufacturing and processing finished
365	365	12 hemp consumer products in accordance with this Act.
366	366	13 (b) All hemp consumer products processors shall:
367	367	14 (1) extract hemp extract or manufacture hemp consumer
368	368	15 products to Good Manufacturing Practices standards, and
369	369	16 maintain a qualified third-party certification to the
370	370	17 satisfaction of the Department, for the applicable Good
371	371	18 Manufacturing Practices standard or standards for the
372	372	19 duration of the license;
373	373	20 (2) maintain standard operating procedures and quality
374	374	21 control standards to ensure consistency of hemp extract or
375	375	22 hemp consumer products, including, but not limited to,
376	376	23 product purity, strength, and composition;
377	377	24 (3) maintain sufficient records to demonstrate that
378	378	25 any hemp or hemp extract used by the licensee was grown,
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389	389	1 derived, extracted, and transported in accordance with
390	390	2 applicable laws and licensing requirements of the
391	391	3 jurisdiction or jurisdictions from which such hemp or hemp
392	392	4 extract was sourced;
393	393	5 (A) such records shall include any pesticides used
394	394	6 in the growing of such hemp, the dates each shipment
395	395	7 was received, adequate chain of custody to demonstrate
396	396	8 from whom the licensee purchased such hemp or hemp
397	397	9 extract, and certificates of analysis;
398	398	10 (B) for hemp received from an out-of-state grower,
399	399	11 processors shall also maintain records of the
400	400	12 out-of-state grower registration or license number in
401	401	13 the respective jurisdiction;
402	402	14 (4) keep all designated extracting and manufacturing
403	403	15 areas safe and sanitary, including, but not limited to,
404	404	16 ensuring that those areas are adequately lit, cleaned, and
405	405	17 smoke-free and that no food is consumed in those areas;
406	406	18 (5) provide all employees performing extraction or
407	407	19 manufacturing with adequate training and proper safety
408	408	20 equipment;
409	409	21 (6) manufacture hemp consumer products in accordance
410	410	22 with the product forms, limits, and other requirements of
411	411	23 this Act;
412	412	24 (7) test a statistically significant number of hemp
413	413	25 consumer products per lot or batch at a third-party
414	414	26 testing laboratory meeting all the requirements in this
415	415
416	416
417	417
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425	425	1 Act and maintain a certificate of analysis for all samples
426	426	2 tested;
427	427	3 (8) maintain sufficient records pertaining to the
428	428	4 calibration and inspection of instruments used in
429	429	5 extraction and manufacturing of hemp consumer products;
430	430	6 (9) report, in a frequency and manner prescribed by
431	431	7 the Department, the total production and sales of the
432	432	8 licensee during the reporting period;
433	433	9 (10) ensure the security of the licensed premises to
434	434	10 prevent unauthorized individuals from entering the
435	435	11 facility and to prevent hemp extract or hemp consumer
436	436	12 products from being diverted from the facility;
437	437	13 (11) not use, in the extraction or manufacturing of
438	438	14 any hemp consumer products, synthetic cannabinoids,
439	439	15 artificially derived cannabinoids, or
440	440	16 tetrahydrocannabinol created through isomerization;
441	441	17 (12) assign a lot or batch number to each lot of hemp
442	442	18 extract or hemp consumer product that is extracted or
443	443	19 manufactured by a licensee;
444	444	20 (13) maintain records to document and track any
445	445	21 tetrahydrocannabinol extracted from hemp or found within
446	446	22 hemp extract throughout the extraction and manufacturing
447	447	23 process, including records pertaining to the amount used
448	448	24 in hemp consumer products and the disposal of all hemp
449	449	25 extract, tetrahydrocannabinol, or by-product; and
450	450	26 (14) maintain any and all records required by this Act
451	451
452	452
453	453
454	454
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457	457
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461	461	1 for at least 3 years and immediately produce such records
462	462	2 upon request of the Department.
463	463	3 (c) The Department shall license and regulate hemp
464	464	4 consumer products retailers for the purpose of allowing
465	465	5 consumers to obtain and source lawful finished hemp consumer
466	466	6 products, subject to minimum consumer protection safeguards
467	467	7 for sale to consumers in accordance with this Act.
468	468	8 (d) All hemp consumer products retailers shall:
469	469	9 (1) only sell hemp consumer products manufactured,
470	470	10 packaged, labeled and tested in accordance with this Act;
471	471	11 (2) not sell, offer for sale, market, or advertise
472	472	12 cannabis, medical cannabis, or any product that exceeds
473	473	13 the THC limits set forth in this Act;
474	474	14 (3) market, advertise, or hold oneself out as
475	475	15 authorized to sell or dispense cannabis, medical cannabis,
476	476	16 or any product that exceeds the THC limits set forth in
477	477	17 this Act;
478	478	18 (4) post in a manner visible to consumers any and all
479	479	19 signs or posted placards required by the Department,
480	480	20 including posting of the hemp consumer products retailers
481	481	21 license issued by the Department, in a conspicuous
482	482	22 location on the premises of each retail location;
483	483	23 (5) maintain sufficient records of where hemp consumer
484	484	24 products were purchased from for the license period,
485	485	25 including the name of the hemp consumer processor and the
486	486	26 wholesaler or permitted distributor, as applicable; and
487	487
488	488
489	489
490	490
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493	493
494	494
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496	496	SB3926 - 13 - LRB103 40218 CES 72109 b
497	497	1 (6) permit announced or unannounced inspections of any
498	498	2 retail location offering hemp consumer products. This
499	499	3 inspection may include taking samples of hemp consumer
500	500	4 products to ensure compliance with all the requirements of
501	501	5 this Act.
502	502	6 (e) All licensees under this Act shall:
503	503	7 (1) monitor complaints from hemp consumer retailers
504	504	8 and consumers and have a mechanism in place to notify the
505	505	9 licensee's supply chain to recall products when directed
506	506	10 by the Department;
507	507	11 (2) notify the Department within 24 hours after
508	508	12 learning of a serious adverse event; and
509	509	13 (3) ensure the proper disposal, beyond reclamation, of
510	510	14 any hemp extract or by-product from the extraction and
511	511	15 manufacture process with a total tetrahydrocannabinol
512	512	16 concentration greater than the THC limits established
513	513	17 under this Act for hemp consumer products. The disposal
514	514	18 shall render the hemp extract or by-product unusable for
515	515	19 any intoxicating purpose.
516	516	20 (f) The Department may conduct announced or unannounced
517	517	21 premises or product inspections, including, but not limited
518	518	22 to, inspection, sampling, and testing of hemp, hemp extract,
519	519	23 hemp consumer products, or any solvents, chemicals, or
520	520	24 materials used by the licensee.
521	521	25 Section 25. Hemp consumer products requirements.
522	522
523	523
524	524
525	525
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531	531	SB3926 - 14 - LRB103 40218 CES 72109 b
532	532	1 (a) All hemp consumer products manufactured, processed,
533	533	2 distributed, sold, or offered for sale in this State shall:
534	534	3 (1) be manufactured in accordance with this Act;
535	535	4 (2) be subject to the following minimum requirements:
536	536	5 (a) contain naturally occurring hemp
537	537	6 phytocannabinoids;
538	538	7 (B) be intended for consumption by any means,
539	539	8 including, but not limited to, oral ingestion,
540	540	9 inhalation, smoking, or topical absorption;
541	541	10 (C) contain a total tetrahydrocannabinol
542	542	11 concentration of no greater than:
543	543	12 (i) 0.3% for any intermediate or finished
544	544	13 plant product or material, or any hemp consumer
545	545	14 product intended for consumption by inhalation or
546	546	15 smoking; or
547	547	16 (ii) 0.5 milligrams per serving or individual
548	548	17 product unit, and 2 milligrams per package for
549	549	18 products sold in multiple servings or units, for
550	550	19 any beverage, food, oil, ointment, tincture,
551	551	20 topical formation, or any other product that is
552	552	21 intended for human consumption by means other than
553	553	22 inhalation or smoking;
554	554	23 (4) contain an amount of total hemp cannabinoid
555	555	24 concentration that is at least 25 times greater than
556	556	25 the amount of total tetrahydrocannabinol concentration
557	557	26 per serving and per package;
558	558
559	559
560	560
561	561
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564	564
565	565
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568	568	1 (3) not contain liquor, wine, beer, or cider or meet
569	569	2 the definition of alcoholic liquor under the Liquor
570	570	3 Control Act of 1934;
571	571	4 (4) not contain tobacco or nicotine in the product;
572	572	5 (5) accurately reflect testing results and not contain
573	573	6 less than 90% or more than 110% of the concentration of
574	574	7 total cannabinoid content as listed on the product label;
575	575	8 (6) be prepackaged and not added to food or any other
576	576	9 consumable products at the point of sale;
577	577	10 (7) comply with product testing standards set forth in
578	578	11 this Act; and
579	579	12 (8) not contain synthetic cannabinoids, artificially
580	580	13 derived cannabinoids, or cannabinoids created through
581	581	14 isomerization, including tetrahydrocannabinol created
582	582	15 through isomerization.
583	583	16 (b) All concentrated hemp consumer products intended for
584	584	17 inhalation or vaporization shall meet the following additional
585	585	18 requirements:
586	586	19 (1) be a closed system with a prefilled disposable
587	587	20 cartridge that attaches to a rechargeable battery, or a
588	588	21 single-use product that cannot be recharged;
589	589	22 (2) electronic vaporization devices shall have
590	590	23 internal or external temperature controls to prevent
591	591	24 combustion and have a heating element made of inert
592	592	25 material, such as glass, ceramic, or stainless steel, and
593	593	26 not plastic or rubber;
594	594
595	595
596	596
597	597
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604	604	1 (3) except for hemp-derived terpenes, excipients and
605	605	2 ingredients must be pharmaceutical grade, unless otherwise
606	606	3 approved by the Department, and shall not include:
607	607	4 (A) synthetic terpenes;
608	608	5 (B) polyethylene glycol (PEG);
609	609	6 (C) vitamin E acetate;
610	610	7 (D) medium chain triglycerides (MCT oil);
611	611	8 (E) medicinal compounds;
612	612	9 (F) illegal or controlled substances;
613	613	10 (G) artificial food coloring;
614	614	11 (H) benzoic acid;
615	615	12 (I) diketones; or
616	616	13 (J) any other compound or ingredient as determined
617	617	14 by the Department in rules;
618	618	15 (4) not contain any flavors or flavoring agents,
619	619	16 except for hemp-derived terpenes; and
620	620	17 (5) include a Department-approved symbol, as set out
621	621	18 by rule, in a manner that is clear and conspicuous.
622	622	19 Section 30. Packaging and labeling of hemp consumer
623	623	20 products.
624	624	21 (a) All hemp consumer products distributed or offered for
625	625	22 retail sale in this State shall include the following
626	626	23 information on the product label or packaging:
627	627	24 (1) information that complies with the requirements in
628	628	25 21 CFR 101 and include a nutritional or supplement fact
629	629
630	630
631	631
632	632
633	633
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635	635
636	636
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638	638	SB3926 - 17 - LRB103 40218 CES 72109 b
639	639	1 panel that is based on the number of servings within the
640	640	2 container;
641	641	3 (2) a list of all ingredients in descending order of
642	642	4 predominance by weight in the product;
643	643	5 (3) The serving size and number of servings per
644	644	6 package or container, including the milligrams per serving
645	645	7 of:
646	646	8 (A) individual hemp cannabinoids;
647	647	9 (B) total hemp cannabinoids;
648	648	10 (C) individual THC cannabinoids;
649	649	11 (D) total THC;
650	650	12 (E) any other cannabinoids;
651	651	13 (F) an expiration date;
652	652	14 (G) a lot or batch number;
653	653	15 (H) the name of the hemp processor, whether
654	654	16 in-state or out-of-state;
655	655	17 (I) a scannable QR code linked to download the
656	656	18 certificate of analysis and testing results for the
657	657	19 product;
658	658	20 (J) the state or country of origin from which the
659	659	21 hemp used in the product was sourced;
660	660	22 (K) a means for reporting serious adverse events;
661	661	23 and
662	662	24 (L) any other marking, statement, or symbol
663	663	25 required by the Department.
664	664	26 (b) No hemp consumer products offered for retail sale
665	665
666	666
667	667
668	668
669	669
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671	671
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674	674	SB3926 - 18 - LRB103 40218 CES 72109 b
675	675	1 shall be made attractive to individuals under 21 years of age,
676	676	2 imitate a candy label, or use cartoons or other images
677	677	3 popularly used to advertise to children or otherwise be
678	678	4 marketed to individuals under 21 years of age.
679	679	5 (c) No hemp consumer product shall be marketed,
680	680	6 advertised, or offered for sale in a manner that would cause a
681	681	7 reasonable consumer:
682	682	8 (1) to be confused as to whether the hemp consumer
683	683	9 product is trademarked, marked or labeled in a manner that
684	684	10 violates any federal trademark law or regulation; or
685	685	11 (2) to believe that a hemp consumer product is
686	686	12 cannabis, or medical cannabis, or that a licensee is
687	687	13 authorized to sell or dispense cannabis or medical
688	688	14 cannabis, as those terms are defined in the Cannabis
689	689	15 Regulation and Tax Act or the Compassionate Use of Medical
690	690	16 Cannabis Program Act.
691	691	17 (d) All hemp consumer products offered for retail sale
692	692	18 shall include the following warnings on the product label or
693	693	19 packaging, in a manner that is clear and conspicuous:
694	694	20 (1) this product must be kept out of the reach of
695	695	21 children and pets;
696	696	22 (2) this product is derived from hemp and may contain
697	697	23 THC which could result in a failed drug test; except that
698	698	24 this warning may be omitted for hemp consumer products
699	699	25 that have a certificate of testing analysis demonstrating
700	700	26 0% THC concentration in the finished product;
701	701
702	702
703	703
704	704
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707	707
708	708
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711	711	1 (3) this product has not been evaluated or approved by
712	712	2 the Food and Drug Administration for safety or efficacy;
713	713	3 (4) if you are pregnant or nursing you should consult
714	714	4 your health care provider before use;
715	715	5 (5) for hemp consumer products intended to be inhaled
716	716	6 or vaporized, a warning stating that smoking or vaping is
717	717	7 hazardous to your health; and
718	718	8 (6) any other warning required by the Department.
719	719	9 Section 35. Laboratory testing requirements for hemp
720	720	10 consumer products.
721	721	11 (a) The Department shall approve testing laboratories to
722	722	12 be contracted by licensees under this Act for testing of hemp
723	723	13 consumer products.
724	724	14 (b) All approved testing laboratories shall meet the
725	725	15 following minimum requirements:
726	726	16 (1) maintain ISO/IEC 17025 accreditation for the
727	727	17 premises and for the testing of one or more of the analytes
728	728	18 determined by the department;
729	729	19 (2) maintain a valid scope of accreditation, issued by
730	730	20 an accreditation body, that attests to the laboratory's
731	731	21 competence to perform testing of hemp consumer products;
732	732	22 (3) maintain method validation reports for all testing
733	733	23 performed;
734	734	24 (4) maintain standard operating procedures for the
735	735	25 sampling of hemp consumer products; and
736	736
737	737
738	738
739	739
740	740
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742	742
743	743
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746	746	1 (5) maintain testing methodologies to ascertain the
747	747	2 presence of synthetic cannabinoids, artificially derived
748	748	3 cannabinoids, or cannabinoids created through
749	749	4 isomerization, including tetrahydrocannabinol created
750	750	5 through isomerization.
751	751	6 (c) Cannabinoid hemp products shall not be sold within
752	752	7 this State if hemp cannabinoid, THC, or other contaminants are
753	753	8 detected at levels greater than provided for by this Act or
754	754	9 rules or guidance adopted by the Department.
755	755	10 (d) Cannabinoid hemp products shall be considered
756	756	11 adulterated and shall not be sold within this State if there is
757	757	12 the presence of synthetic cannabinoids, artificially derived
758	758	13 cannabinoids, or cannabinoids created through isomerization,
759	759	14 including tetrahydrocannabinol created through isomerization.
760	760	15 (e) The Department may impose additional testing
761	761	16 requirements, including, but not limited to, testing for
762	762	17 additional analytes, setting stricter contaminant limits, and
763	763	18 mandating the use of specific sampling methodologies per lot
764	764	19 or batch manufactured.
765	765	20 (f) The Department shall make available a list of required
766	766	21 analytes, their acceptable limits, and approved testing
767	767	22 methods on the Department's website and in any other manner as
768	768	23 determined by the Department.
769	769	24 (g) The total tetrahydrocannabinol concentration for hemp
770	770	25 consumer products shall not exceed the limits established in
771	771	26 this Act.
772	772
773	773
774	774
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778	778
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782	782	1 (h) If a hemp consumer product fails testing, the
783	783	2 processor may elect to reformulate the failing batch to reduce
784	784	3 the total tetrahydrocannabinol of the batch to comply with the
785	785	4 THC limits established by this Act. If the reformulated batch
786	786	5 still exceeds the THC limits, the processor shall destroy the
787	787	6 batch.
788	788	7 (i) If a hemp consumer product is found to contain levels
789	789	8 of any pathogen, toxicant, residual solvent, metal, or
790	790	9 pesticide not enumerated in this Section or by other State
791	791	10 law, then the product shall not be sold in this State.
792	792	11 Section 40. Advertising requirements. An advertisement for
793	793	12 a hemp consumer product, hemp consumer processor, or hemp
794	794	13 consumer retailer shall not:
795	795	14 (1) include any false or misleading statements,
796	796	15 images, or other content, including, but not limited to,
797	797	16 any health claims;
798	798	17 (2) contain claims that hemp consumption or a hemp
799	799	18 consumer product can, or is intended to, diagnose, cure,
800	800	19 mitigate, treat, or prevent disease;
801	801	20 (3) lead a reasonable consumer to believe that a hemp
802	802	21 consumer product is cannabis or medical cannabis,
803	803	22 including any product that exceeds the THC limits
804	804	23 established under this Act for lawful hemp consumer
805	805	24 products, or that a licensee is authorized to sell or
806	806	25 dispense cannabis or medical cannabis; or
807	807
808	808
809	809
810	810
811	811
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813	813
814	814
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817	817	1 (4) have the purpose or effect of targeting or being
818	818	2 attractive to individuals under 21 years of age. The use
819	819	3 of images of children or minors consuming hemp consumer
820	820	4 products and the use of words, designs, or brands that
821	821	5 resemble products commonly associated with children,
822	822	6 minors, or marketed to children or minors, is prohibited.
823	823	7 Section 45. Lawful transport of industrial hemp, hemp, and
824	824	8 hemp materials.
825	825	9 (a) Nothing in this Act shall prohibit or interfere with
826	826	10 the lawful transport of industrial hemp, hemp materials, or
827	827	11 hemp products as authorized by the U.S. Department of
828	828	12 Agriculture and the U.S. Food and Drug Administration, and in
829	829	13 compliance with other federal law, regulation, or rule,
830	830	14 through the State of Illinois for delivery to an out-of-state
831	831	15 destination.
832	832	16 (b) No person shall transport industrial hemp, hemp, or
833	833	17 hemp materials within the State, unless the person is duly
834	834	18 authorized under federal law and regulation to transport hemp
835	835	19 and possesses a hemp manifest that includes the following
836	836	20 information:
837	837	21 (1) the name and address of the owner of the hemp;
838	838	22 (2) the point of origin;
839	839	23 (3) the point of delivery, including name and address;
840	840	24 (4) the kind and quantity of packages or, if in bulk,
841	841	25 the total quantity of hemp in the shipment; and
842	842
843	843
844	844
845	845
846	846
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848	848
849	849
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852	852	1 (5) the date of shipment.
853	853	2 Section 50. Penalties.
854	854	3 (a) Licensees under this Act shall comply with all
855	855	4 applicable laws, rules, and regulations as it relates to such
856	856	5 licensure.
857	857	6 (b) Failure to comply with a requirement of this Act or
858	858	7 rules adopted by the Department may be punishable by a civil
859	859	8 penalty, as follows:
860	860	9 (1) a fine of up to $1,000 for a first violation;
861	861	10 (2) a fine up to $5,000 for a second violation within 3
862	862	11 years; or
863	863	12 (3) a fine of up to $10,000 for a third violation and
864	864	13 each subsequent violation thereafter within a 3-year
865	865	14 period.
866	866	15 (c) If a licensee willfully violates or refuses or
867	867	16 neglects to comply with one or more provisions of this Act, the
868	868	17 Department may limit, suspend, revoke, or annul a license
869	869	18 after providing notice and an opportunity for a hearing to the
870	870	19 licensee. However, a license may be temporarily limited,
871	871	20 suspended, revoked, or annulled without a hearing for a period
872	872	21 not to exceed 30 days, upon notice to the licensee, following a
873	873	22 finding by the Department that the public health, safety, or
874	874	23 welfare is in imminent danger.
875	875	24 (d) A licensee who negligently violates this Act 3 times
876	876	25 in a 5-year period shall be ineligible to process or sell
877	877
878	878
879	879
880	880
881	881
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883	883
884	884
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886	886	SB3926 - 24 - LRB103 40218 CES 72109 b
887	887	1 cannabinoid hemp for a period of 5 years beginning on the date
888	888	2 of the third violation. The Department may reduce the
889	889	3 suspension for good cause shown.
890	890	4 Section 55. Administration and enforcement; rules;
891	891	5 emergency rules; inspections.
892	892	6 (a) The Department shall administer and enforce this Act
893	893	7 and may adopt rules under the Illinois Administrative
894	894	8 Procedure Act for the purpose of administering and enforcing
895	895	9 this Act.
896	896	10 (b) The Department shall develop rules setting forth
897	897	11 labeling, packaging, and minimum testing requirements of
898	898	12 cannabinoid products.
899	899	13 (c) In order to provide for the expeditious and timely
900	900	14 implementation of the provisions of this Act, the Department
901	901	15 may adopt emergency rules in accordance with Section 5-45 of
902	902	16 the Illinois Administrative Procedure Act to the extent
903	903	17 necessary to administer the Department's responsibilities
904	904	18 under this Act. The adoption of emergency rules authorized by
905	905	19 this subsection (c) is deemed to be necessary for the public
906	906	20 interest, safety, and welfare to regulate consumer safety over
907	907	21 hemp consumer products.
908	908	22 (d) The Department of Public Health, local health
909	909	23 departments, the Illinois State Police, local sheriff's
910	910	24 departments, municipal police departments, and the Department
911	911	25 of Revenue may inspect any business that manufactures,
912	912
913	913
914	914
915	915
916	916
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918	918
919	919
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921	921	SB3926 - 25 - LRB103 40218 CES 72109 b
922	922	1 processes, or offers for sale cannabinoid products in the
923	923	2 State if a formal complaint is registered with the appropriate
924	924	3 agency in order to ensure compliance with this Act. The
925	925	4 Department may inspect any business that manufactures,
926	926	5 processes, or offers for sale cannabinoid products in the
927	927	6 State to ensure compliance with this Act. The Department may
928	928	7 enter into interagency agreements to regulate and enforce this
929	929	8 Act and any rules or guidance adopted or promulgated.
930	930	9 Section 60. Publishing information. The Department shall
931	931	10 make available to the public complaints about hemp consumer
932	932	11 products or other cannabinoid products in violation of this
933	933	12 Act, information regarding a pending administrative hearing or
934	934	13 court case under this Act, or any disciplinary action taken
935	935	14 against a cannabinoid product manufacturer, processor, or
936	936	15 seller.
937	937	16 Section 65. Temporary restraining order or injunction. The
938	938	17 Director, through the Attorney General or any unit of local
939	939	18 government, may file a complaint and apply to the circuit
940	940	19 court for, and the court upon hearing and for cause shown may
941	941	20 grant, a temporary restraining order or a preliminary or
942	942	21 permanent injunction restraining any person from violating
943	943	22 this Act.
944	944	23 Section 905. The Illinois Administrative Procedure Act is
945	945
946	946
947	947
948	948
949	949
950	950	SB3926 - 25 - LRB103 40218 CES 72109 b
951	951
952	952
953	953	SB3926- 26 -LRB103 40218 CES 72109 b SB3926 - 26 - LRB103 40218 CES 72109 b
954	954	SB3926 - 26 - LRB103 40218 CES 72109 b
955	955	1 amended by adding Section 5-45.55 as follows:
956	956	2 (5 ILCS 100/5-45.55 new)
957	957	3 Sec. 5-45.55. Emergency rulemaking; Hemp Consumer Products
958	958	4 Act. To provide for the expeditious and timely implementation
959	959	5 of the Hemp Consumer Products Act, emergency rules
960	960	6 implementing the Hemp Consumer Products Act may be adopted in
961	961	7 accordance with Section 5-45 by the Department of Agriculture.
962	962	8 The adoption of emergency rules authorized by Section 5-45 and
963	963	9 this Section is deemed to be necessary for the public
964	964	10 interest, safety, and welfare.
965	965	11 This Section is repealed one year after the effective date
966	966	12 of this amendatory Act of the 103rd General Assembly.
967	967	13 Section 907. The Cannabis Regulation and Tax Act is
968	968	14 amended by changing Sections 1-10, 5-11, 15-155, and 55-35 and
969	969	15 by adding Sections 15-35.5, 15-35.11, 20-60, and 35-22 as
970	970	16 follows:
971	971	17 (410 ILCS 705/1-10)
972	972	18 Sec. 1-10. Definitions. In this Act:
973	973	19 "Adult Use Cultivation Center License" means a license
974	974	20 issued by the Department of Agriculture that permits a person
975	975	21 to act as a cultivation center under this Act and any
976	976	22 administrative rule made in furtherance of this Act.
977	977	23 "Adult Use Dispensing Organization License" means a
978	978
979	979
980	980
981	981
982	982
983	983	SB3926 - 26 - LRB103 40218 CES 72109 b
984	984
985	985
986	986	SB3926- 27 -LRB103 40218 CES 72109 b SB3926 - 27 - LRB103 40218 CES 72109 b
987	987	SB3926 - 27 - LRB103 40218 CES 72109 b
988	988	1 license issued by the Department of Financial and Professional
989	989	2 Regulation that permits a person to act as a dispensing
990	990	3 organization under this Act and any administrative rule made
991	991	4 in furtherance of this Act.
992	992	5 "Advertise" means to engage in promotional activities
993	993	6 including, but not limited to: newspaper, radio, Internet and
994	994	7 electronic media, and television advertising; the distribution
995	995	8 of fliers and circulars; billboard advertising; and the
996	996	9 display of window and interior signs. "Advertise" does not
997	997	10 mean exterior signage displaying only the name of the licensed
998	998	11 cannabis business establishment.
999	999	12 "Application points" means the number of points a
1000	1000	13 Dispensary Applicant receives on an application for a
1001	1001	14 Conditional Adult Use Dispensing Organization License.
1002	1002	15 "BLS Region" means a region in Illinois used by the United
1003	1003	16 States Bureau of Labor Statistics to gather and categorize
1004	1004	17 certain employment and wage data. The 17 such regions in
1005	1005	18 Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
1006	1006	19 Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
1007	1007	20 Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
1008	1008	21 Rockford, St. Louis, Springfield, Northwest Illinois
1009	1009	22 nonmetropolitan area, West Central Illinois nonmetropolitan
1010	1010	23 area, East Central Illinois nonmetropolitan area, and South
1011	1011	24 Illinois nonmetropolitan area.
1012	1012	25 "By lot" means a randomized method of choosing between 2
1013	1013	26 or more Eligible Tied Applicants or 2 or more Qualifying
1014	1014
1015	1015
1016	1016
1017	1017
1018	1018
1019	1019	SB3926 - 27 - LRB103 40218 CES 72109 b
1020	1020
1021	1021
1022	1022	SB3926- 28 -LRB103 40218 CES 72109 b SB3926 - 28 - LRB103 40218 CES 72109 b
1023	1023	SB3926 - 28 - LRB103 40218 CES 72109 b
1024	1024	1 Applicants.
1025	1025	2 "Cannabis" means marijuana, hashish, and other substances
1026	1026	3 that are identified as including any parts of the plant
1027	1027	4 Cannabis sativa and including derivatives or subspecies, such
1028	1028	5 as indica, of all strains of cannabis, whether growing or not;
1029	1029	6 the seeds thereof, the resin extracted from any part of the
1030	1030	7 plant; and any compound, manufacture, salt, derivative,
1031	1031	8 mixture, or preparation of the plant, its seeds, or resin,
1032	1032	9 including tetrahydrocannabinol (THC) and all other naturally
1033	1033	10 produced cannabinol derivatives, whether produced directly or
1034	1034	11 indirectly by extraction, including, but not limited to, any
1035	1035	12 structural, optical, or geometric isomers of THC, or any
1036	1036	13 chemical compound that mimics THC; however, "cannabis" does
1037	1037	14 not include the mature stalks of the plant, fiber produced
1038	1038	15 from the stalks, oil or cake made from the seeds of the plant,
1039	1039	16 any other compound, manufacture, salt, derivative, mixture, or
1040	1040	17 preparation of the mature stalks (except the resin extracted
1041	1041	18 from it), fiber, oil or cake, or the sterilized seed of the
1042	1042	19 plant that is incapable of germination. "Cannabis" does not
1043	1043	20 include industrial hemp as defined and authorized under the
1044	1044	21 Industrial Hemp Act. "Cannabis" also means cannabis flower,
1045	1045	22 concentrate, and cannabis-infused products and any product
1046	1046	23 whether derived from natural or synthetic sources with a THC
1047	1047	24 concentration greater than the THC limit set forth in the Hemp
1048	1048	25 Consumer Products Act.
1049	1049	26 "Cannabis business establishment" means a cultivation
1050	1050
1051	1051
1052	1052
1053	1053
1054	1054
1055	1055	SB3926 - 28 - LRB103 40218 CES 72109 b
1056	1056
1057	1057
1058	1058	SB3926- 29 -LRB103 40218 CES 72109 b SB3926 - 29 - LRB103 40218 CES 72109 b
1059	1059	SB3926 - 29 - LRB103 40218 CES 72109 b
1060	1060	1 center, craft grower, processing organization, infuser
1061	1061	2 organization, dispensing organization, or transporting
1062	1062	3 organization.
1063	1063	4 "Cannabis concentrate" means a product derived from
1064	1064	5 cannabis that is produced by extracting cannabinoids,
1065	1065	6 including tetrahydrocannabinol (THC), from the plant through
1066	1066	7 the use of propylene glycol, glycerin, butter, olive oil, or
1067	1067	8 other typical cooking fats; water, ice, or dry ice; or butane,
1068	1068	9 propane, CO2, ethanol, or isopropanol and with the intended
1069	1069	10 use of smoking or making a cannabis-infused product. The use
1070	1070	11 of any other solvent is expressly prohibited unless and until
1071	1071	12 it is approved by the Department of Agriculture.
1072	1072	13 "Cannabis container" means a sealed or resealable,
1073	1073	14 traceable, container, or package used for the purpose of
1074	1074	15 containment of cannabis or cannabis-infused product during
1075	1075	16 transportation.
1076	1076	17 "Cannabis flower" means marijuana, hashish, and other
1077	1077	18 substances that are identified as including any parts of the
1078	1078	19 plant Cannabis sativa and including derivatives or subspecies,
1079	1079	20 such as indica, of all strains of cannabis; including raw
1080	1080	21 kief, leaves, and buds, but not resin that has been extracted
1081	1081	22 from any part of such plant; nor any compound, manufacture,
1082	1082	23 salt, derivative, mixture, or preparation of such plant, its
1083	1083	24 seeds, or resin.
1084	1084	25 "Cannabis-infused product" means a beverage, food, oil,
1085	1085	26 ointment, tincture, topical formulation, or another product
1086	1086
1087	1087
1088	1088
1089	1089
1090	1090
1091	1091	SB3926 - 29 - LRB103 40218 CES 72109 b
1092	1092
1093	1093
1094	1094	SB3926- 30 -LRB103 40218 CES 72109 b SB3926 - 30 - LRB103 40218 CES 72109 b
1095	1095	SB3926 - 30 - LRB103 40218 CES 72109 b
1096	1096	1 containing cannabis or cannabis concentrate that is not
1097	1097	2 intended to be smoked.
1098	1098	3 "Cannabis paraphernalia" means equipment, products, or
1099	1099	4 materials intended to be used for planting, propagating,
1100	1100	5 cultivating, growing, harvesting, manufacturing, producing,
1101	1101	6 processing, preparing, testing, analyzing, packaging,
1102	1102	7 repackaging, storing, containing, concealing, ingesting, or
1103	1103	8 otherwise introducing cannabis into the human body.
1104	1104	9 "Cannabis plant monitoring system" or "plant monitoring
1105	1105	10 system" means a system that includes, but is not limited to,
1106	1106	11 testing and data collection established and maintained by the
1107	1107	12 cultivation center, craft grower, or processing organization
1108	1108	13 and that is available to the Department of Revenue, the
1109	1109	14 Department of Agriculture, the Department of Financial and
1110	1110	15 Professional Regulation, and the Illinois State Police for the
1111	1111	16 purposes of documenting each cannabis plant and monitoring
1112	1112	17 plant development throughout the life cycle of a cannabis
1113	1113	18 plant cultivated for the intended use by a customer from seed
1114	1114	19 planting to final packaging.
1115	1115	20 "Cannabis testing facility" means an entity registered by
1116	1116	21 the Department of Agriculture to test cannabis for potency and
1117	1117	22 contaminants.
1118	1118	23 "Clone" means a plant section from a female cannabis plant
1119	1119	24 not yet rootbound, growing in a water solution or other
1120	1120	25 propagation matrix, that is capable of developing into a new
1121	1121	26 plant.
1122	1122
1123	1123
1124	1124
1125	1125
1126	1126
1127	1127	SB3926 - 30 - LRB103 40218 CES 72109 b
1128	1128
1129	1129
1130	1130	SB3926- 31 -LRB103 40218 CES 72109 b SB3926 - 31 - LRB103 40218 CES 72109 b
1131	1131	SB3926 - 31 - LRB103 40218 CES 72109 b
1132	1132	1 "Community College Cannabis Vocational Training Pilot
1133	1133	2 Program faculty participant" means a person who is 21 years of
1134	1134	3 age or older, licensed by the Department of Agriculture, and
1135	1135	4 is employed or contracted by an Illinois community college to
1136	1136	5 provide student instruction using cannabis plants at an
1137	1137	6 Illinois Community College.
1138	1138	7 "Community College Cannabis Vocational Training Pilot
1139	1139	8 Program faculty participant Agent Identification Card" means a
1140	1140	9 document issued by the Department of Agriculture that
1141	1141	10 identifies a person as a Community College Cannabis Vocational
1142	1142	11 Training Pilot Program faculty participant.
1143	1143	12 "Conditional Adult Use Dispensing Organization License"
1144	1144	13 means a contingent license awarded to applicants for an Adult
1145	1145	14 Use Dispensing Organization License that reserves the right to
1146	1146	15 an Adult Use Dispensing Organization License if the applicant
1147	1147	16 meets certain conditions described in this Act, but does not
1148	1148	17 entitle the recipient to begin purchasing or selling cannabis
1149	1149	18 or cannabis-infused products.
1150	1150	19 "Conditional Adult Use Cultivation Center License" means a
1151	1151	20 license awarded to top-scoring applicants for an Adult Use
1152	1152	21 Cultivation Center License that reserves the right to an Adult
1153	1153	22 Use Cultivation Center License if the applicant meets certain
1154	1154	23 conditions as determined by the Department of Agriculture by
1155	1155	24 rule, but does not entitle the recipient to begin growing,
1156	1156	25 processing, or selling cannabis or cannabis-infused products.
1157	1157	26 "Conditional Infuser Organization License" means a
1158	1158
1159	1159
1160	1160
1161	1161
1162	1162
1163	1163	SB3926 - 31 - LRB103 40218 CES 72109 b
1164	1164
1165	1165
1166	1166	SB3926- 32 -LRB103 40218 CES 72109 b SB3926 - 32 - LRB103 40218 CES 72109 b
1167	1167	SB3926 - 32 - LRB103 40218 CES 72109 b
1168	1168	1 contingent license awarded to applicants for an Infuser
1169	1169	2 Organization License that reserves the right to an Infuser
1170	1170	3 Organization License if the applicant meets certain conditions
1171	1171	4 described in this Act, but does not entitle the recipient to
1172	1172	5 begin directly incorporating cannabis or cannabis concentrate
1173	1173	6 into a product formulation to produce a cannabis-infused
1174	1174	7 product.
1175	1175	8 "Craft grower" means a facility operated by an
1176	1176	9 organization or business that is licensed by the Department of
1177	1177	10 Agriculture to cultivate, dry, cure, and package cannabis and
1178	1178	11 perform other necessary activities to make cannabis available
1179	1179	12 for sale at a dispensing organization or use at a processing
1180	1180	13 organization. A craft grower may contain up to 5,000 square
1181	1181	14 feet of canopy space on its premises for plants in the
1182	1182	15 flowering state. The Department of Agriculture may authorize
1183	1183	16 an increase or decrease of flowering stage cultivation space
1184	1184	17 in increments of 3,000 square feet by rule based on market
1185	1185	18 need, craft grower capacity, and the licensee's history of
1186	1186	19 compliance or noncompliance, with a maximum space of 14,000
1187	1187	20 square feet for cultivating plants in the flowering stage,
1188	1188	21 which must be cultivated in all stages of growth in an enclosed
1189	1189	22 and secure area. A craft grower may share premises with a
1190	1190	23 processing organization or a dispensing organization, or both,
1191	1191	24 provided each licensee stores currency and cannabis or
1192	1192	25 cannabis-infused products in a separate secured vault to which
1193	1193	26 the other licensee does not have access or all licensees
1194	1194
1195	1195
1196	1196
1197	1197
1198	1198
1199	1199	SB3926 - 32 - LRB103 40218 CES 72109 b
1200	1200
1201	1201
1202	1202	SB3926- 33 -LRB103 40218 CES 72109 b SB3926 - 33 - LRB103 40218 CES 72109 b
1203	1203	SB3926 - 33 - LRB103 40218 CES 72109 b
1204	1204	1 sharing a vault share more than 50% of the same ownership.
1205	1205	2 "Craft grower agent" means a principal officer, board
1206	1206	3 member, employee, or other agent of a craft grower who is 21
1207	1207	4 years of age or older.
1208	1208	5 "Craft Grower Agent Identification Card" means a document
1209	1209	6 issued by the Department of Agriculture that identifies a
1210	1210	7 person as a craft grower agent.
1211	1211	8 "Cultivation center" means a facility operated by an
1212	1212	9 organization or business that is licensed by the Department of
1213	1213	10 Agriculture to cultivate, process, transport (unless otherwise
1214	1214	11 limited by this Act), and perform other necessary activities
1215	1215	12 to provide cannabis and cannabis-infused products to cannabis
1216	1216	13 business establishments.
1217	1217	14 "Cultivation center agent" means a principal officer,
1218	1218	15 board member, employee, or other agent of a cultivation center
1219	1219	16 who is 21 years of age or older.
1220	1220	17 "Cultivation Center Agent Identification Card" means a
1221	1221	18 document issued by the Department of Agriculture that
1222	1222	19 identifies a person as a cultivation center agent.
1223	1223	20 "Currency" means currency and coin of the United States.
1224	1224	21 "Dispensary" means a facility operated by a dispensing
1225	1225	22 organization at which activities licensed by this Act may
1226	1226	23 occur.
1227	1227	24 "Dispensary Applicant" means the Proposed Dispensing
1228	1228	25 Organization Name as stated on an application for a
1229	1229	26 Conditional Adult Use Dispensing Organization License.
1230	1230
1231	1231
1232	1232
1233	1233
1234	1234
1235	1235	SB3926 - 33 - LRB103 40218 CES 72109 b
1236	1236
1237	1237
1238	1238	SB3926- 34 -LRB103 40218 CES 72109 b SB3926 - 34 - LRB103 40218 CES 72109 b
1239	1239	SB3926 - 34 - LRB103 40218 CES 72109 b
1240	1240	1 "Dispensing organization" means a facility operated by an
1241	1241	2 organization or business that is licensed by the Department of
1242	1242	3 Financial and Professional Regulation to acquire cannabis from
1243	1243	4 a cultivation center, craft grower, processing organization,
1244	1244	5 or another dispensary for the purpose of selling or dispensing
1245	1245	6 cannabis, cannabis-infused products, cannabis seeds,
1246	1246	7 paraphernalia, or related supplies under this Act to
1247	1247	8 purchasers or to qualified registered medical cannabis
1248	1248	9 patients and caregivers. As used in this Act, "dispensing
1249	1249	10 organization" includes a registered medical cannabis
1250	1250	11 organization as defined in the Compassionate Use of Medical
1251	1251	12 Cannabis Program Act or its successor Act that has obtained an
1252	1252	13 Early Approval Adult Use Dispensing Organization License.
1253	1253	14 "Dispensing organization agent" means a principal officer,
1254	1254	15 employee, or agent of a dispensing organization who is 21
1255	1255	16 years of age or older.
1256	1256	17 "Dispensing organization agent identification card" means
1257	1257	18 a document issued by the Department of Financial and
1258	1258	19 Professional Regulation that identifies a person as a
1259	1259	20 dispensing organization agent.
1260	1260	21 "Disproportionately Impacted Area" means a census tract or
1261	1261	22 comparable geographic area that satisfies the following
1262	1262	23 criteria as determined by the Department of Commerce and
1263	1263	24 Economic Opportunity, that:
1264	1264	25 (1) meets at least one of the following criteria:
1265	1265	26 (A) the area has a poverty rate of at least 20%
1266	1266
1267	1267
1268	1268
1269	1269
1270	1270
1271	1271	SB3926 - 34 - LRB103 40218 CES 72109 b
1272	1272
1273	1273
1274	1274	SB3926- 35 -LRB103 40218 CES 72109 b SB3926 - 35 - LRB103 40218 CES 72109 b
1275	1275	SB3926 - 35 - LRB103 40218 CES 72109 b
1276	1276	1 according to the latest federal decennial census; or
1277	1277	2 (B) 75% or more of the children in the area
1278	1278	3 participate in the federal free lunch program
1279	1279	4 according to reported statistics from the State Board
1280	1280	5 of Education; or
1281	1281	6 (C) at least 20% of the households in the area
1282	1282	7 receive assistance under the Supplemental Nutrition
1283	1283	8 Assistance Program; or
1284	1284	9 (D) the area has an average unemployment rate, as
1285	1285	10 determined by the Illinois Department of Employment
1286	1286	11 Security, that is more than 120% of the national
1287	1287	12 unemployment average, as determined by the United
1288	1288	13 States Department of Labor, for a period of at least 2
1289	1289	14 consecutive calendar years preceding the date of the
1290	1290	15 application; and
1291	1291	16 (2) has high rates of arrest, conviction, and
1292	1292	17 incarceration related to the sale, possession, use,
1293	1293	18 cultivation, manufacture, or transport of cannabis.
1294	1294	19 "Early Approval Adult Use Cultivation Center License"
1295	1295	20 means a license that permits a medical cannabis cultivation
1296	1296	21 center licensed under the Compassionate Use of Medical
1297	1297	22 Cannabis Program Act as of the effective date of this Act to
1298	1298	23 begin cultivating, infusing, packaging, transporting (unless
1299	1299	24 otherwise provided in this Act), processing, and selling
1300	1300	25 cannabis or cannabis-infused product to cannabis business
1301	1301	26 establishments for resale to purchasers as permitted by this
1302	1302
1303	1303
1304	1304
1305	1305
1306	1306
1307	1307	SB3926 - 35 - LRB103 40218 CES 72109 b
1308	1308
1309	1309
1310	1310	SB3926- 36 -LRB103 40218 CES 72109 b SB3926 - 36 - LRB103 40218 CES 72109 b
1311	1311	SB3926 - 36 - LRB103 40218 CES 72109 b
1312	1312	1 Act as of January 1, 2020.
1313	1313	2 "Early Approval Adult Use Dispensing Organization License"
1314	1314	3 means a license that permits a medical cannabis dispensing
1315	1315	4 organization licensed under the Compassionate Use of Medical
1316	1316	5 Cannabis Program Act as of the effective date of this Act to
1317	1317	6 begin selling cannabis or cannabis-infused product to
1318	1318	7 purchasers as permitted by this Act as of January 1, 2020.
1319	1319	8 "Early Approval Adult Use Dispensing Organization at a
1320	1320	9 secondary site" means a license that permits a medical
1321	1321	10 cannabis dispensing organization licensed under the
1322	1322	11 Compassionate Use of Medical Cannabis Program Act as of the
1323	1323	12 effective date of this Act to begin selling cannabis or
1324	1324	13 cannabis-infused product to purchasers as permitted by this
1325	1325	14 Act on January 1, 2020 at a different dispensary location from
1326	1326	15 its existing registered medical dispensary location.
1327	1327	16 "Eligible Tied Applicant" means a Tied Applicant that is
1328	1328	17 eligible to participate in the process by which a remaining
1329	1329	18 available license is distributed by lot pursuant to a Tied
1330	1330	19 Applicant Lottery.
1331	1331	20 "Enclosed, locked facility" means a room, greenhouse,
1332	1332	21 building, or other enclosed area equipped with locks or other
1333	1333	22 security devices that permit access only by cannabis business
1334	1334	23 establishment agents working for the licensed cannabis
1335	1335	24 business establishment or acting pursuant to this Act to
1336	1336	25 cultivate, process, store, or distribute cannabis.
1337	1337	26 "Enclosed, locked space" means a closet, room, greenhouse,
1338	1338
1339	1339
1340	1340
1341	1341
1342	1342
1343	1343	SB3926 - 36 - LRB103 40218 CES 72109 b
1344	1344
1345	1345
1346	1346	SB3926- 37 -LRB103 40218 CES 72109 b SB3926 - 37 - LRB103 40218 CES 72109 b
1347	1347	SB3926 - 37 - LRB103 40218 CES 72109 b
1348	1348	1 building, or other enclosed area equipped with locks or other
1349	1349	2 security devices that permit access only by authorized
1350	1350	3 individuals under this Act. "Enclosed, locked space" may
1351	1351	4 include:
1352	1352	5 (1) a space within a residential building that (i) is
1353	1353	6 the primary residence of the individual cultivating 5 or
1354	1354	7 fewer cannabis plants that are more than 5 inches tall and
1355	1355	8 (ii) includes sleeping quarters and indoor plumbing. The
1356	1356	9 space must only be accessible by a key or code that is
1357	1357	10 different from any key or code that can be used to access
1358	1358	11 the residential building from the exterior; or
1359	1359	12 (2) a structure, such as a shed or greenhouse, that
1360	1360	13 lies on the same plot of land as a residential building
1361	1361	14 that (i) includes sleeping quarters and indoor plumbing
1362	1362	15 and (ii) is used as a primary residence by the person
1363	1363	16 cultivating 5 or fewer cannabis plants that are more than
1364	1364	17 5 inches tall, such as a shed or greenhouse. The structure
1365	1365	18 must remain locked when it is unoccupied by people.
1366	1366	19 "Financial institution" has the same meaning as "financial
1367	1367	20 organization" as defined in Section 1501 of the Illinois
1368	1368	21 Income Tax Act, and also includes the holding companies,
1369	1369	22 subsidiaries, and affiliates of such financial organizations.
1370	1370	23 "Flowering stage" means the stage of cultivation where and
1371	1371	24 when a cannabis plant is cultivated to produce plant material
1372	1372	25 for cannabis products. This includes mature plants as follows:
1373	1373	26 (1) if greater than 2 stigmas are visible at each
1374	1374
1375	1375
1376	1376
1377	1377
1378	1378
1379	1379	SB3926 - 37 - LRB103 40218 CES 72109 b
1380	1380
1381	1381
1382	1382	SB3926- 38 -LRB103 40218 CES 72109 b SB3926 - 38 - LRB103 40218 CES 72109 b
1383	1383	SB3926 - 38 - LRB103 40218 CES 72109 b
1384	1384	1 internode of the plant; or
1385	1385	2 (2) if the cannabis plant is in an area that has been
1386	1386	3 intentionally deprived of light for a period of time
1387	1387	4 intended to produce flower buds and induce maturation,
1388	1388	5 from the moment the light deprivation began through the
1389	1389	6 remainder of the marijuana plant growth cycle.
1390	1390	7 "Individual" means a natural person.
1391	1391	8 "Infuser organization" or "infuser" means a facility
1392	1392	9 operated by an organization or business that is licensed by
1393	1393	10 the Department of Agriculture to directly incorporate cannabis
1394	1394	11 or cannabis concentrate into a product formulation to produce
1395	1395	12 a cannabis-infused product.
1396	1396	13 "Kief" means the resinous crystal-like trichomes that are
1397	1397	14 found on cannabis and that are accumulated, resulting in a
1398	1398	15 higher concentration of cannabinoids, untreated by heat or
1399	1399	16 pressure, or extracted using a solvent.
1400	1400	17 "Labor peace agreement" means an agreement between a
1401	1401	18 cannabis business establishment and any labor organization
1402	1402	19 recognized under the National Labor Relations Act, referred to
1403	1403	20 in this Act as a bona fide labor organization, that prohibits
1404	1404	21 labor organizations and members from engaging in picketing,
1405	1405	22 work stoppages, boycotts, and any other economic interference
1406	1406	23 with the cannabis business establishment. This agreement means
1407	1407	24 that the cannabis business establishment has agreed not to
1408	1408	25 disrupt efforts by the bona fide labor organization to
1409	1409	26 communicate with, and attempt to organize and represent, the
1410	1410
1411	1411
1412	1412
1413	1413
1414	1414
1415	1415	SB3926 - 38 - LRB103 40218 CES 72109 b
1416	1416
1417	1417
1418	1418	SB3926- 39 -LRB103 40218 CES 72109 b SB3926 - 39 - LRB103 40218 CES 72109 b
1419	1419	SB3926 - 39 - LRB103 40218 CES 72109 b
1420	1420	1 cannabis business establishment's employees. The agreement
1421	1421	2 shall provide a bona fide labor organization access at
1422	1422	3 reasonable times to areas in which the cannabis business
1423	1423	4 establishment's employees work, for the purpose of meeting
1424	1424	5 with employees to discuss their right to representation,
1425	1425	6 employment rights under State law, and terms and conditions of
1426	1426	7 employment. This type of agreement shall not mandate a
1427	1427	8 particular method of election or certification of the bona
1428	1428	9 fide labor organization.
1429	1429	10 "Limited access area" means a room or other area under the
1430	1430	11 control of a cannabis dispensing organization licensed under
1431	1431	12 this Act and upon the licensed premises where cannabis sales
1432	1432	13 occur with access limited to purchasers, dispensing
1433	1433	14 organization owners and other dispensing organization agents,
1434	1434	15 or service professionals conducting business with the
1435	1435	16 dispensing organization, or, if sales to registered qualifying
1436	1436	17 patients, caregivers, provisional patients, and Opioid
1437	1437	18 Alternative Pilot Program participants licensed pursuant to
1438	1438	19 the Compassionate Use of Medical Cannabis Program Act are also
1439	1439	20 permitted at the dispensary, registered qualifying patients,
1440	1440	21 caregivers, provisional patients, and Opioid Alternative Pilot
1441	1441	22 Program participants.
1442	1442	23 "Member of an impacted family" means an individual who has
1443	1443	24 a parent, legal guardian, child, spouse, or dependent, or was
1444	1444	25 a dependent of an individual who, prior to the effective date
1445	1445	26 of this Act, was arrested for, convicted of, or adjudicated
1446	1446
1447	1447
1448	1448
1449	1449
1450	1450
1451	1451	SB3926 - 39 - LRB103 40218 CES 72109 b
1452	1452
1453	1453
1454	1454	SB3926- 40 -LRB103 40218 CES 72109 b SB3926 - 40 - LRB103 40218 CES 72109 b
1455	1455	SB3926 - 40 - LRB103 40218 CES 72109 b
1456	1456	1 delinquent for any offense that is eligible for expungement
1457	1457	2 under this Act.
1458	1458	3 "Mother plant" means a cannabis plant that is cultivated
1459	1459	4 or maintained for the purpose of generating clones, and that
1460	1460	5 will not be used to produce plant material for sale to an
1461	1461	6 infuser or dispensing organization.
1462	1462	7 "Ordinary public view" means within the sight line with
1463	1463	8 normal visual range of a person, unassisted by visual aids,
1464	1464	9 from a public street or sidewalk adjacent to real property, or
1465	1465	10 from within an adjacent property.
1466	1466	11 "Ownership and control" means ownership of at least 51% of
1467	1467	12 the business, including corporate stock if a corporation, and
1468	1468	13 control over the management and day-to-day operations of the
1469	1469	14 business and an interest in the capital, assets, and profits
1470	1470	15 and losses of the business proportionate to percentage of
1471	1471	16 ownership.
1472	1472	17 "Person" means a natural individual, firm, partnership,
1473	1473	18 association, joint stock company, joint venture, public or
1474	1474	19 private corporation, limited liability company, or a receiver,
1475	1475	20 executor, trustee, guardian, or other representative appointed
1476	1476	21 by order of any court.
1477	1477	22 "Possession limit" means the amount of cannabis under
1478	1478	23 Section 10-10 that may be possessed at any one time by a person
1479	1479	24 21 years of age or older or who is a registered qualifying
1480	1480	25 medical cannabis patient or caregiver under the Compassionate
1481	1481	26 Use of Medical Cannabis Program Act.
1482	1482
1483	1483
1484	1484
1485	1485
1486	1486
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1488	1488
1489	1489
1490	1490	SB3926- 41 -LRB103 40218 CES 72109 b SB3926 - 41 - LRB103 40218 CES 72109 b
1491	1491	SB3926 - 41 - LRB103 40218 CES 72109 b
1492	1492	1 "Principal officer" includes a cannabis business
1493	1493	2 establishment applicant or licensed cannabis business
1494	1494	3 establishment's board member, owner with more than 1% interest
1495	1495	4 of the total cannabis business establishment or more than 5%
1496	1496	5 interest of the total cannabis business establishment of a
1497	1497	6 publicly traded company, president, vice president, secretary,
1498	1498	7 treasurer, partner, officer, member, manager member, or person
1499	1499	8 with a profit sharing, financial interest, or revenue sharing
1500	1500	9 arrangement. The definition includes a person with authority
1501	1501	10 to control the cannabis business establishment, a person who
1502	1502	11 assumes responsibility for the debts of the cannabis business
1503	1503	12 establishment and who is further defined in this Act.
1504	1504	13 "Primary residence" means a dwelling where a person
1505	1505	14 usually stays or stays more often than other locations. It may
1506	1506	15 be determined by, without limitation, presence, tax filings;
1507	1507	16 address on an Illinois driver's license, an Illinois
1508	1508	17 Identification Card, or an Illinois Person with a Disability
1509	1509	18 Identification Card; or voter registration. No person may have
1510	1510	19 more than one primary residence.
1511	1511	20 "Processing organization" or "processor" means a facility
1512	1512	21 operated by an organization or business that is licensed by
1513	1513	22 the Department of Agriculture to either extract constituent
1514	1514	23 chemicals or compounds to produce cannabis concentrate or
1515	1515	24 incorporate cannabis or cannabis concentrate into a product
1516	1516	25 formulation to produce a cannabis product.
1517	1517	26 "Processing organization agent" means a principal officer,
1518	1518
1519	1519
1520	1520
1521	1521
1522	1522
1523	1523	SB3926 - 41 - LRB103 40218 CES 72109 b
1524	1524
1525	1525
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1527	1527	SB3926 - 42 - LRB103 40218 CES 72109 b
1528	1528	1 board member, employee, or agent of a processing organization.
1529	1529	2 "Processing organization agent identification card" means
1530	1530	3 a document issued by the Department of Agriculture that
1531	1531	4 identifies a person as a processing organization agent.
1532	1532	5 "Purchaser" means a person 21 years of age or older who
1533	1533	6 acquires cannabis for a valuable consideration. "Purchaser"
1534	1534	7 does not include a cardholder under the Compassionate Use of
1535	1535	8 Medical Cannabis Program Act.
1536	1536	9 "Qualifying Applicant" means an applicant that submitted
1537	1537	10 an application pursuant to Section 15-30 that received at
1538	1538	11 least 85% of 250 application points available under Section
1539	1539	12 15-30 as the applicant's final score and meets the definition
1540	1540	13 of "Social Equity Applicant" as set forth under this Section.
1541	1541	14 "Qualifying Social Equity Justice Involved Applicant"
1542	1542	15 means an applicant that submitted an application pursuant to
1543	1543	16 Section 15-30 that received at least 85% of 250 application
1544	1544	17 points available under Section 15-30 as the applicant's final
1545	1545	18 score and meets the criteria of either paragraph (1) or (2) of
1546	1546	19 the definition of "Social Equity Applicant" as set forth under
1547	1547	20 this Section.
1548	1548	21 "Qualified Social Equity Applicant" means a Social Equity
1549	1549	22 Applicant who has been awarded a conditional license under
1550	1550	23 this Act to operate a cannabis business establishment.
1551	1551	24 "Resided" means an individual's primary residence was
1552	1552	25 located within the relevant geographic area as established by
1553	1553	26 2 of the following:
1554	1554
1555	1555
1556	1556
1557	1557
1558	1558
1559	1559	SB3926 - 42 - LRB103 40218 CES 72109 b
1560	1560
1561	1561
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1563	1563	SB3926 - 43 - LRB103 40218 CES 72109 b
1564	1564	1 (1) a signed lease agreement that includes the
1565	1565	2 applicant's name;
1566	1566	3 (2) a property deed that includes the applicant's
1567	1567	4 name;
1568	1568	5 (3) school records;
1569	1569	6 (4) a voter registration card;
1570	1570	7 (5) an Illinois driver's license, an Illinois
1571	1571	8 Identification Card, or an Illinois Person with a
1572	1572	9 Disability Identification Card;
1573	1573	10 (6) a paycheck stub;
1574	1574	11 (7) a utility bill;
1575	1575	12 (8) tax records; or
1576	1576	13 (9) any other proof of residency or other information
1577	1577	14 necessary to establish residence as provided by rule.
1578	1578	15 "Smoking" means the inhalation of smoke caused by the
1579	1579	16 combustion of cannabis.
1580	1580	17 "Social Equity Applicant" means an applicant that is an
1581	1581	18 Illinois resident that meets one of the following criteria:
1582	1582	19 (1) an applicant with at least 51% ownership and
1583	1583	20 control by one or more individuals who have resided for at
1584	1584	21 least 5 of the preceding 10 years in a Disproportionately
1585	1585	22 Impacted Area;
1586	1586	23 (2) an applicant with at least 51% ownership and
1587	1587	24 control by one or more individuals who:
1588	1588	25 (i) have been arrested for, convicted of, or
1589	1589	26 adjudicated delinquent for any offense that is
1590	1590
1591	1591
1592	1592
1593	1593
1594	1594
1595	1595	SB3926 - 43 - LRB103 40218 CES 72109 b
1596	1596
1597	1597
1598	1598	SB3926- 44 -LRB103 40218 CES 72109 b SB3926 - 44 - LRB103 40218 CES 72109 b
1599	1599	SB3926 - 44 - LRB103 40218 CES 72109 b
1600	1600	1 eligible for expungement under this Act; or
1601	1601	2 (ii) is a member of an impacted family;
1602	1602	3 (3) for applicants with a minimum of 10 full-time
1603	1603	4 employees, an applicant with at least 51% of current
1604	1604	5 employees who:
1605	1605	6 (i) currently reside in a Disproportionately
1606	1606	7 Impacted Area; or
1607	1607	8 (ii) have been arrested for, convicted of, or
1608	1608	9 adjudicated delinquent for any offense that is
1609	1609	10 eligible for expungement under this Act or member of
1610	1610	11 an impacted family.
1611	1611	12 Nothing in this Act shall be construed to preempt or limit
1612	1612	13 the duties of any employer under the Job Opportunities for
1613	1613	14 Qualified Applicants Act. Nothing in this Act shall permit an
1614	1614	15 employer to require an employee to disclose sealed or expunged
1615	1615	16 offenses, unless otherwise required by law.
1616	1616	17 "Tetrahydrocannabinol" or "THC" means any naturally
1617	1617	18 occurring or synthetic tetrahydrocannabinol, including its
1618	1618	19 salts, isomers, and salts of isomers whenever the existence of
1619	1619	20 such salts, isomers, and salts of isomers is possible within
1620	1620	21 the specific chemical designation and any preparation,
1621	1621	22 mixture, or substance containing, or mixed or infused with,
1622	1622	23 any detectable amount of tetrahydrocannabinol or
1623	1623	24 tetrahydrocannabolic acid, including, but not limited to,
1624	1624	25 delta-8-tetrahydrocannabinol, delta-9-tetrahydrocannabinol,
1625	1625	26 delta-10-tetrahydrocannabinol, tetrahydrocannabolic acid,
1626	1626
1627	1627
1628	1628
1629	1629
1630	1630
1631	1631	SB3926 - 44 - LRB103 40218 CES 72109 b
1632	1632
1633	1633
1634	1634	SB3926- 45 -LRB103 40218 CES 72109 b SB3926 - 45 - LRB103 40218 CES 72109 b
1635	1635	SB3926 - 45 - LRB103 40218 CES 72109 b
1636	1636	1 tetrahydrocannabipherol, or hexahydrocannabinol, however
1637	1637	2 derived, or any other substance determined to have similar
1638	1638	3 intoxicating effects on the mind or body by the Department.
1639	1639	4 For the purposes of this definition, "isomer" means the
1640	1640	5 optical, position, and geometric isomers.
1641	1641	6 "Tied Applicant" means an application submitted by a
1642	1642	7 Dispensary Applicant pursuant to Section 15-30 that received
1643	1643	8 the same number of application points under Section 15-30 as
1644	1644	9 the Dispensary Applicant's final score as one or more
1645	1645	10 top-scoring applications in the same BLS Region and would have
1646	1646	11 been awarded a license but for the one or more other
1647	1647	12 top-scoring applications that received the same number of
1648	1648	13 application points. Each application for which a Dispensary
1649	1649	14 Applicant was required to pay a required application fee for
1650	1650	15 the application period ending January 2, 2020 shall be
1651	1651	16 considered an application of a separate Tied Applicant.
1652	1652	17 "Tied Applicant Lottery" means the process established
1653	1653	18 under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
1654	1654	19 Use Dispensing Organization Licenses pursuant to Sections
1655	1655	20 15-25 and 15-30 among Eligible Tied Applicants.
1656	1656	21 "Tincture" means a cannabis-infused solution, typically
1657	1657	22 comprised of alcohol, glycerin, or vegetable oils, derived
1658	1658	23 either directly from the cannabis plant or from a processed
1659	1659	24 cannabis extract. A tincture is not an alcoholic liquor as
1660	1660	25 defined in the Liquor Control Act of 1934. A tincture shall
1661	1661	26 include a calibrated dropper or other similar device capable
1662	1662
1663	1663
1664	1664
1665	1665
1666	1666
1667	1667	SB3926 - 45 - LRB103 40218 CES 72109 b
1668	1668
1669	1669
1670	1670	SB3926- 46 -LRB103 40218 CES 72109 b SB3926 - 46 - LRB103 40218 CES 72109 b
1671	1671	SB3926 - 46 - LRB103 40218 CES 72109 b
1672	1672	1 of accurately measuring servings.
1673	1673	2 "Transporting organization" or "transporter" means an
1674	1674	3 organization or business that is licensed by the Department of
1675	1675	4 Agriculture to transport cannabis or cannabis-infused product
1676	1676	5 on behalf of a cannabis business establishment or a community
1677	1677	6 college licensed under the Community College Cannabis
1678	1678	7 Vocational Training Pilot Program.
1679	1679	8 "Transporting organization agent" means a principal
1680	1680	9 officer, board member, employee, or agent of a transporting
1681	1681	10 organization.
1682	1682	11 "Transporting organization agent identification card"
1683	1683	12 means a document issued by the Department of Agriculture that
1684	1684	13 identifies a person as a transporting organization agent.
1685	1685	14 "Unit of local government" means any county, city,
1686	1686	15 village, or incorporated town.
1687	1687	16 "Vegetative stage" means the stage of cultivation in which
1688	1688	17 a cannabis plant is propagated to produce additional cannabis
1689	1689	18 plants or reach a sufficient size for production. This
1690	1690	19 includes seedlings, clones, mothers, and other immature
1691	1691	20 cannabis plants as follows:
1692	1692	21 (1) if the cannabis plant is in an area that has not
1693	1693	22 been intentionally deprived of light for a period of time
1694	1694	23 intended to produce flower buds and induce maturation, it
1695	1695	24 has no more than 2 stigmas visible at each internode of the
1696	1696	25 cannabis plant; or
1697	1697	26 (2) any cannabis plant that is cultivated solely for
1698	1698
1699	1699
1700	1700
1701	1701
1702	1702
1703	1703	SB3926 - 46 - LRB103 40218 CES 72109 b
1704	1704
1705	1705
1706	1706	SB3926- 47 -LRB103 40218 CES 72109 b SB3926 - 47 - LRB103 40218 CES 72109 b
1707	1707	SB3926 - 47 - LRB103 40218 CES 72109 b
1708	1708	1 the purpose of propagating clones and is never used to
1709	1709	2 produce cannabis.
1710	1710	3 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
1711	1711	4 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
1712	1712	5 5-13-22.)
1713	1713	6 (410 ILCS 705/5-11 new)
1714	1714	7 Sec. 5-11. Illinois Department of Agriculture policy
1715	1715	8 regarding hemp and hemp derivatives in medical and adult use
1716	1716	9 cannabis products.
1717	1717	10 (a) For purposes of this Section, "industrial hemp" has
1718	1718	11 the meaning given to it under the Industrial Hemp Act.
1719	1719	12 (b) Cannabis business establishments licensed by the
1720	1720	13 Department of Agriculture for cultivation, growing,
1721	1721	14 processing, manufacturing, or infusing of medical or adult use
1722	1722	15 cannabis products pursuant to this Act or the Compassionate
1723	1723	16 Use of Medicinal Cannabis Program Act may use industrial hemp
1724	1724	17 as an ingredient in cannabis-infused products offered for sale
1725	1725	18 at licensed dispensaries in Illinois. Hemp flower shall not be
1726	1726	19 sold to dispensaries.
1727	1727	20 (c) All hemp obtained through this policy must be used in
1728	1728	21 extracted form and in infused cannabis products only.
1729	1729	22 (d) Industrial hemp may be procured from third party
1730	1730	23 licensed growers or processors from within the State or any
1731	1731	24 other state with a regulated industrial hemp program.
1732	1732	25 (e) All hemp and hemp derivatives shall be obtained from a
1733	1733
1734	1734
1735	1735
1736	1736
1737	1737
1738	1738	SB3926 - 47 - LRB103 40218 CES 72109 b
1739	1739
1740	1740
1741	1741	SB3926- 48 -LRB103 40218 CES 72109 b SB3926 - 48 - LRB103 40218 CES 72109 b
1742	1742	SB3926 - 48 - LRB103 40218 CES 72109 b
1743	1743	1 licensed or registered hemp grower or processor, regardless of
1744	1744	2 the home state of the grower or processor. Cannabis producers
1745	1745	3 shall provide a copy of the hemp grower's or processor's
1746	1746	4 state-issued license upon demand of the Department of
1747	1747	5 Agriculture or the Illinois State Police.
1748	1748	6 (f) Any licensed cannabis cultivation center or licensed
1749	1749	7 craft grower that intends to use hemp or hemp derivatives must
1750	1750	8 apply for, and be issued, a hemp processor's registration
1751	1751	9 through the Department of Agriculture. Any licensed infuser
1752	1752	10 that intends to use hemp derivatives must apply for, and be
1753	1753	11 issued, a hemp processor's registration through the Department
1754	1754	12 of Agriculture. The Department of Agriculture shall make
1755	1755	13 available an application form on its website.
1756	1756	14 (g) Industrial hemp flower and biomass may be purchased
1757	1757	15 and extracted by licensed cannabis cultivation centers or
1758	1758	16 licensed craft growers.
1759	1759	17 (h) Licensed cannabis cultivation centers and licensed
1760	1760	18 craft growers may procure or process industrial hemp in the
1761	1761	19 form of distillate or isolate. Licensed infusers may procure
1762	1762	20 industrial hemp in the form of distillate or isolate. All
1763	1763	21 processed hemp derivatives must be accompanied by a
1764	1764	22 certificate of analysis showing potency levels for THC, THCa,
1765	1765	23 CBD, and CBDa, and any other cannabinoids required by the
1766	1766	24 Department by rule or guidance.
1767	1767	25 (i) The delta-9 tetrahydrocannabinol contained in the hemp
1768	1768	26 and hemp derivatives may not be concentrated above the
1769	1769
1770	1770
1771	1771
1772	1772
1773	1773
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1775	1775
1776	1776
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1778	1778	SB3926 - 49 - LRB103 40218 CES 72109 b
1779	1779	1 allowable 0.3% threshold.
1780	1780	2 (j) Hemp and hemp derivatives may not be used to
1781	1781	3 concentrate or to synthesize intoxicating compounds including,
1782	1782	4 but not limited to, delta-9 tetrahydrocannabinol or delta-8
1783	1783	5 tetrahydrocannabinol, unless permitted by the Department by
1784	1784	6 rule, and shall be subject to the recommendations of the
1785	1785	7 Intoxicating Hemp-Derived THC Consumer Products Safety
1786	1786	8 Committee.
1787	1787	9 (k) A representative sample of all final products
1788	1788	10 containing industrial hemp or hemp derivatives must undergo
1789	1789	11 testing pursuant to the Compassionate Use of Medical Cannabis
1790	1790	12 Act and the Cannabis Regulation and Tax Act and any applicable
1791	1791	13 administrative rules.
1792	1792	14 (l) Final products containing hemp or hemp derivatives are
1793	1793	15 subject to the requirements of the Compassionate Use of
1794	1794	16 Medical Cannabis Act and the Cannabis Regulation and Tax Act
1795	1795	17 and any applicable administrative rules.
1796	1796	18 (410 ILCS 705/15-35.5 new)
1797	1797	19 Sec. 15-35.5. Intoxicating Hemp-Derived THC Consumer
1798	1798	20 Products Safety Committee.
1799	1799	21 (a) The General Assembly finds that an Intoxicating
1800	1800	22 Hemp-Derived THC Consumer Products Safety Committee is
1801	1801	23 necessary to evaluate the public health impacts, product
1802	1802	24 formulations, manufacturing standards, and consumer safety
1803	1803	25 standards for intoxicating THC products derived or produced
1804	1804
1805	1805
1806	1806
1807	1807
1808	1808
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1810	1810
1811	1811
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1813	1813	SB3926 - 50 - LRB103 40218 CES 72109 b
1814	1814	1 from the industrial hemp, and make recommendations to the
1815	1815	2 General Assembly, the Governor, the Attorney General, and
1816	1816	3 State regulatory agencies on a regulatory framework for the
1817	1817	4 manufacture, distribution, and sale of hemp-derived THC
1818	1818	5 consumer products within Illinois.
1819	1819	6 (b) The Committee shall consist of the following members:
1820	1820	7 (1) a member of the Senate, designated by the
1821	1821	8 President of the Senate;
1822	1822	9 (2) a member of the House of Representatives,
1823	1823	10 designated by the Speaker of the House of Representatives;
1824	1824	11 (3) a member of the Senate, designated by the Minority
1825	1825	12 Leader of the Senate;
1826	1826	13 (4) a member of the House of Representative,
1827	1827	14 designated by the Minority Leader of the House of
1828	1828	15 Representatives;
1829	1829	16 (5) the Illinois Cannabis Regulation and Oversight
1830	1830	17 Officer, or a designee;
1831	1831	18 (6) the Director of Agriculture, or a designee;
1832	1832	19 (7) the Secretary of Financial and Professional
1833	1833	20 Regulation, or a designee;
1834	1834	21 (8) the Director of Public Health, or a designee;
1835	1835	22 (9) the Director of Revenue, or a designee;
1836	1836	23 (10) the Attorney General, or a designee;
1837	1837	24 (11) the Director of the Illinois State Police, or a
1838	1838	25 designee;
1839	1839	26 (12) one member who is an attorney with expertise in
1840	1840
1841	1841
1842	1842
1843	1843
1844	1844
1845	1845	SB3926 - 50 - LRB103 40218 CES 72109 b
1846	1846
1847	1847
1848	1848	SB3926- 51 -LRB103 40218 CES 72109 b SB3926 - 51 - LRB103 40218 CES 72109 b
1849	1849	SB3926 - 51 - LRB103 40218 CES 72109 b
1850	1850	1 the regulation of cannabis, appointed by the Director of
1851	1851	2 Agriculture;
1852	1852	3 (13) one member who is an individual with expertise in
1853	1853	4 the processing of cannabis, appointed by the Director of
1854	1854	5 Agriculture;
1855	1855	6 (14) one member who is an individual with expertise in
1856	1856	7 consumer safety over hemp and cannabis product
1857	1857	8 formulations, appointed by the Director of Public Health;
1858	1858	9 (15) one member who is a physician with expertise in
1859	1859	10 the consumer safety impacts of hemp and cannabis product
1860	1860	11 consumption and its effects on the mind and body,
1861	1861	12 appointed by the Director of Public Health;
1862	1862	13 (16) one member who is a laboratory technician or
1863	1863	14 scientist with expertise in the testing and evaluation of
1864	1864	15 cannabis product safety, appointed by the Director of
1865	1865	16 Agriculture;
1866	1866	17 (17) one member who is an individual with expertise in
1867	1867	18 consumer product approvals and requirements under the
1868	1868	19 Food, Drug, and Cosmetic Act (21 U.S.C. 9), appointed by
1869	1869	20 the Director of Public Health;
1870	1870	21 (18) one member who is a school superintendent or
1871	1871	22 principal, appointed by the State Superintendent of
1872	1872	23 Education; and
1873	1873	24 (19) one member who is a college or university
1874	1874	25 representative with expertise in research and development
1875	1875	26 of consumer safety standards and products, appointed by
1876	1876
1877	1877
1878	1878
1879	1879
1880	1880
1881	1881	SB3926 - 51 - LRB103 40218 CES 72109 b
1882	1882
1883	1883
1884	1884	SB3926- 52 -LRB103 40218 CES 72109 b SB3926 - 52 - LRB103 40218 CES 72109 b
1885	1885	SB3926 - 52 - LRB103 40218 CES 72109 b
1886	1886	1 the State Superintendent of Education.
1887	1887	2 (c) The Committee shall produce a report on or before
1888	1888	3 January 1, 2025 with recommendations on appropriate consumer
1889	1889	4 safety standards, including product formulations,
1890	1890	5 manufacturing standards, advertising standards, and a
1891	1891	6 comprehensive regulatory framework for the safe manufacture,
1892	1892	7 distribution, and sale of hemp-derived THC products within
1893	1893	8 this State.
1894	1894	9 (d) The Department of Agriculture, the Department of
1895	1895	10 Financial and Professional Regulation, the Cannabis Oversight
1896	1896	11 Officer, the Department of Public Health, the Department of
1897	1897	12 State Police, and the Attorney General shall issue a report
1898	1898	13 with any legislative recommendations, if deemed necessary, to
1899	1899	14 the General Assembly on or before March 1, 2025 to establish a
1900	1900	15 regulatory and enforcement framework for hemp-derived THC
1901	1901	16 products to be manufactured, distributed, and sold to
1902	1902	17 consumers within this State.
1903	1903	18 (410 ILCS 705/15-35.11 new)
1904	1904	19 Sec. 15-35.11. Social Equity Justice Involved Lottery for
1905	1905	20 an Additional 50 New Conditional Adult Use Dispensing
1906	1906	21 Organization Licenses.(a) In addition to any of the licenses
1907	1907	22 issued under this Article, within 10 business days after the
1908	1908	23 resulting final scores for all scored applications pursuant to
1909	1909	24 Section 35-15 are released, the Department shall issue up to
1910	1910	25 50 Conditional Adult Use Dispensing Organization Licenses by
1911	1911
1912	1912
1913	1913
1914	1914
1915	1915
1916	1916	SB3926 - 52 - LRB103 40218 CES 72109 b
1917	1917
1918	1918
1919	1919	SB3926- 53 -LRB103 40218 CES 72109 b SB3926 - 53 - LRB103 40218 CES 72109 b
1920	1920	SB3926 - 53 - LRB103 40218 CES 72109 b
1921	1921	1 lot, pursuant to the application process adopted under this
1922	1922	2 Section. In order to be eligible to be awarded a Conditional
1923	1923	3 Adult Use Dispensing Organization License by lot, a Dispensary
1924	1924	4 Applicant must be a Qualifying Social Equity Justice Involved
1925	1925	5 Applicant.
1926	1926	6 The licenses issued under this Section shall be awarded on
1927	1927	7 or before July 1, 2025 in each BLS Region in the following
1928	1928	8 amounts:
1929	1929	9 (1) Bloomington: 1.
1930	1930	10 (2) Cape Girardeau: 1.
1931	1931	11 (3) Carbondale-Marion: 1.
1932	1932	12 (4) Champaign-Urbana: 1.
1933	1933	13 (5) Chicago-Naperville-Elgin: 31.
1934	1934	14 (6) Danville: 1.
1935	1935	15 (7) Davenport-Moline-Rock Island: 1.
1936	1936	16 (8) Decatur: 1.
1937	1937	17 (9) Kankakee: 1.
1938	1938	18 (10) Peoria: 2.
1939	1939	19 (11) Rockford: 1.
1940	1940	20 (12) St. Louis: 3.
1941	1941	21 (13) Springfield: 1.
1942	1942	22 (14) Northwest Illinois nonmetropolitan: 1.
1943	1943	23 (15) West Central Illinois nonmetropolitan: 1.
1944	1944	24 (16) East Central Illinois nonmetropolitan: 1.
1945	1945	25 (17) South Illinois nonmetropolitan: 1.
1946	1946	26 (b) The Department shall distribute the available licenses
1947	1947
1948	1948
1949	1949
1950	1950
1951	1951
1952	1952	SB3926 - 53 - LRB103 40218 CES 72109 b
1953	1953
1954	1954
1955	1955	SB3926- 54 -LRB103 40218 CES 72109 b SB3926 - 54 - LRB103 40218 CES 72109 b
1956	1956	SB3926 - 54 - LRB103 40218 CES 72109 b
1957	1957	1 established under this Section subject to the following:
1958	1958	2 (1) The drawing by lot for all available licenses
1959	1959	3 established under this Section shall occur on the same day
1960	1960	4 when practicable.
1961	1961	5 (2) Within each BLS Region, the first Qualifying
1962	1962	6 Social Equity Justice Involved Applicant drawn will have
1963	1963	7 the first right to an available license. The second
1964	1964	8 Qualifying Social Equity Justice Involved Applicant drawn
1965	1965	9 will have the second right to an available license. The
1966	1966	10 same pattern will continue for each subsequent applicant
1967	1967	11 drawn.
1968	1968	12 (3) The process for distributing available licenses
1969	1969	13 under this Section shall be recorded by the Department in
1970	1970	14 a format selected by the Department.
1971	1971	15 (4) A Dispensary Applicant is prohibited from becoming
1972	1972	16 a Qualifying Social Equity Justice Involved Applicant if a
1973	1973	17 principal officer resigns after the resulting final scores
1974	1974	18 for all scored applications pursuant to Sections 15-25 and
1975	1975	19 15-30 are released.
1976	1976	20 (5) No Qualifying Social Equity Justice Involved
1977	1977	21 Applicant may be awarded more than 2 Conditional Adult Use
1978	1978	22 Dispensing Organization Licenses at the conclusion of a
1979	1979	23 lottery conducted under this Section.
1980	1980	24 (6) No individual may be listed as a principal officer
1981	1981	25 of more than 2 Conditional Adult Use Dispensing
1982	1982	26 Organization Licenses awarded under this Section.
1983	1983
1984	1984
1985	1985
1986	1986
1987	1987
1988	1988	SB3926 - 54 - LRB103 40218 CES 72109 b
1989	1989
1990	1990
1991	1991	SB3926- 55 -LRB103 40218 CES 72109 b SB3926 - 55 - LRB103 40218 CES 72109 b
1992	1992	SB3926 - 55 - LRB103 40218 CES 72109 b
1993	1993	1 (7) If, upon being selected for an available license
1994	1994	2 established under this Section, a Qualifying Social Equity
1995	1995	3 Justice Involved Applicant exceeds the limits under
1996	1996	4 paragraph (5) or (6), the Qualifying Social Equity Justice
1997	1997	5 Involved Applicant must choose which license to abandon
1998	1998	6 and notify the Department in writing within 5 business
1999	1999	7 days on forms prescribed by the Department. If the
2000	2000	8 Qualifying Social Equity Justice Involved Applicant does
2001	2001	9 not notify the Department as required, the Department
2002	2002	10 shall refuse to issue the Qualifying Social Equity Justice
2003	2003	11 Involved Applicant all available licenses established
2004	2004	12 under this Section obtained by lot in all BLS Regions.
2005	2005	13 (8) If, upon being selected for an available license
2006	2006	14 established under this Section, a Qualifying Social Equity
2007	2007	15 Justice Involved Applicant has a principal officer who is
2008	2008	16 a principal officer in more than 10 Early Approval Adult
2009	2009	17 Use Dispensing Organization Licenses, Conditional Adult
2010	2010	18 Use Dispensing Organization Licenses, Adult Use Dispensing
2011	2011	19 Organization Licenses, or any combination thereof, the
2012	2012	20 licensees and the Qualifying Social Equity Justice
2013	2013	21 Involved Applicant listing that principal officer must
2014	2014	22 choose which license to abandon pursuant to subsection (d)
2015	2015	23 of Section 15-36 and notify the Department in writing
2016	2016	24 within 5 business days on forms prescribed by the
2017	2017	25 Department. If the Dispensary Applicant or licensees do
2018	2018	26 not notify the Department as required, the Department
2019	2019
2020	2020
2021	2021
2022	2022
2023	2023
2024	2024	SB3926 - 55 - LRB103 40218 CES 72109 b
2025	2025
2026	2026
2027	2027	SB3926- 56 -LRB103 40218 CES 72109 b SB3926 - 56 - LRB103 40218 CES 72109 b
2028	2028	SB3926 - 56 - LRB103 40218 CES 72109 b
2029	2029	1 shall refuse to issue the Qualifying Social Equity Justice
2030	2030	2 Involved Applicant all available licenses established
2031	2031	3 under this Section obtained by lot in all BLS Regions.
2032	2032	4 (9) All available licenses that have been abandoned
2033	2033	5 under paragraph (7) or (8) shall be distributed to the
2034	2034	6 next Qualifying Social Equity Justice Involved Applicant
2035	2035	7 drawn by lot.
2036	2036	8 Any and all rights conferred or obtained under this
2037	2037	9 subsection shall be limited to the provisions of this
2038	2038	10 subsection.
2039	2039	11 (c) An applicant who receives a Conditional Adult Use
2040	2040	12 Dispensing Organization License under this Section has 180
2041	2041	13 days from the date of the award to identify a physical location
2042	2042	14 for the dispensing organization's retail storefront. The
2043	2043	15 applicant shall provide evidence that the location is not
2044	2044	16 within 1,500 feet of an existing dispensing organization,
2045	2045	17 unless the applicant is a Social Equity Applicant or Social
2046	2046	18 Equity Justice Involved Applicant located or seeking to locate
2047	2047	19 within 1,500 feet of a dispensing organization licensed under
2048	2048	20 Section 15-15 or Section 15-20. If an applicant is unable to
2049	2049	21 find a suitable physical address in the opinion of the
2050	2050	22 Department within 180 days from the issuance of the
2051	2051	23 Conditional Adult Use Dispensing Organization License, the
2052	2052	24 Department may extend the period for finding a physical
2053	2053	25 address an additional 540 days if the Conditional Adult Use
2054	2054	26 Dispensing Organization License holder demonstrates a concrete
2055	2055
2056	2056
2057	2057
2058	2058
2059	2059
2060	2060	SB3926 - 56 - LRB103 40218 CES 72109 b
2061	2061
2062	2062
2063	2063	SB3926- 57 -LRB103 40218 CES 72109 b SB3926 - 57 - LRB103 40218 CES 72109 b
2064	2064	SB3926 - 57 - LRB103 40218 CES 72109 b
2065	2065	1 attempt to secure a location and a hardship. If the Department
2066	2066	2 denies the extension or the Conditional Adult Use Dispensing
2067	2067	3 Organization License holder is unable to find a location or
2068	2068	4 become operational within 720 days of being awarded a
2069	2069	5 Conditional Adult Use Dispensing Organization License under
2070	2070	6 this Section, the Department shall rescind the Conditional
2071	2071	7 Adult Use Dispensing Organization License and award it
2072	2072	8 pursuant to subsection (b) and notify the new awardee at the
2073	2073	9 email address provided in the awardee's application, provided
2074	2074	10 the applicant receiving the Conditional Adult Use Dispensing
2075	2075	11 Organization License: (i) confirms a continued interest in
2076	2076	12 operating a dispensing organization; (ii) can provide evidence
2077	2077	13 that the applicant continues to meet all requirements for
2078	2078	14 holding a Conditional Adult Use Dispensing Organization
2079	2079	15 License set forth in this Act; and (iii) has not otherwise
2080	2080	16 become ineligible to be awarded a Conditional Adult Use
2081	2081	17 Dispensing Organization License. If the new awardee is unable
2082	2082	18 to accept the Conditional Adult Use Dispensing Organization
2083	2083	19 License, the Department shall award the Conditional Adult Use
2084	2084	20 Dispensing Organization License pursuant to subsection (b).
2085	2085	21 The new awardee shall be subject to the same required
2086	2086	22 deadlines as provided in this subsection.
2087	2087	23 (d) If, within 180 days of being awarded a Conditional
2088	2088	24 Adult Use Dispensing Organization License, a dispensing
2089	2089	25 organization is unable to find a location within the BLS
2090	2090	26 Region in which it was awarded a Conditional Adult Use
2091	2091
2092	2092
2093	2093
2094	2094
2095	2095
2096	2096	SB3926 - 57 - LRB103 40218 CES 72109 b
2097	2097
2098	2098
2099	2099	SB3926- 58 -LRB103 40218 CES 72109 b SB3926 - 58 - LRB103 40218 CES 72109 b
2100	2100	SB3926 - 58 - LRB103 40218 CES 72109 b
2101	2101	1 Dispensing Organization License under this Section because no
2102	2102	2 jurisdiction within the BLS Region allows for the operation of
2103	2103	3 an Adult Use Dispensing Organization, the Department may
2104	2104	4 authorize the Conditional Adult Use Dispensing Organization
2105	2105	5 License holder to transfer its Conditional Adult Use
2106	2106	6 Dispensing Organization License to a BLS Region specified by
2107	2107	7 the Department.
2108	2108	8 (e) A dispensing organization that is awarded a
2109	2109	9 Conditional Adult Use Dispensing Organization License under
2110	2110	10 this Section shall not purchase, possess, sell, or dispense
2111	2111	11 cannabis or cannabis-infused products until the dispensing
2112	2112	12 organization has received an Adult Use Dispensing Organization
2113	2113	13 License issued by the Department pursuant to Section 15-36.
2114	2114	14 (f) The Department shall conduct a background check of the
2115	2115	15 prospective dispensing organization agents in order to carry
2116	2116	16 out this Article. The Illinois State Police shall charge the
2117	2117	17 applicant a fee for conducting the criminal history record
2118	2118	18 check, which shall be deposited into the State Police Services
2119	2119	19 Fund and shall not exceed the actual cost of the record check.
2120	2120	20 Each person applying as a dispensing organization agent shall
2121	2121	21 submit a full set of fingerprints to the Illinois State Police
2122	2122	22 for the purpose of obtaining a State and federal criminal
2123	2123	23 records check. These fingerprints shall be checked against the
2124	2124	24 fingerprint records now and hereafter, to the extent allowed
2125	2125	25 by law, filed with the Illinois State Police and the Federal
2126	2126	26 Bureau of Investigation criminal history records databases.
2127	2127
2128	2128
2129	2129
2130	2130
2131	2131
2132	2132	SB3926 - 58 - LRB103 40218 CES 72109 b
2133	2133
2134	2134
2135	2135	SB3926- 59 -LRB103 40218 CES 72109 b SB3926 - 59 - LRB103 40218 CES 72109 b
2136	2136	SB3926 - 59 - LRB103 40218 CES 72109 b
2137	2137	1 The Illinois State Police shall furnish, following positive
2138	2138	2 identification, all Illinois conviction information to the
2139	2139	3 Department.
2140	2140	4 (g) The Department may verify information contained in
2141	2141	5 each application and accompanying documentation to assess the
2142	2142	6 applicant's veracity and fitness to operate a dispensing
2143	2143	7 organization.
2144	2144	8 (h) The Department may, in its discretion, refuse to issue
2145	2145	9 an authorization to an applicant who meets any of the
2146	2146	10 following criteria:
2147	2147	11 (1) An applicant who is unqualified to perform the
2148	2148	12 duties required of the applicant.
2149	2149	13 (2) An applicant who fails to disclose or states
2150	2150	14 falsely any information called for in the application.
2151	2151	15 (3) An applicant who has been found guilty of a
2152	2152	16 violation of this Act, who has had any disciplinary order
2153	2153	17 entered against the applicant by the Department, who has
2154	2154	18 entered into a disciplinary or nondisciplinary agreement
2155	2155	19 with the Department, whose medical cannabis dispensing
2156	2156	20 organization, medical cannabis cultivation organization,
2157	2157	21 Early Approval Adult Use Dispensing Organization License,
2158	2158	22 Early Approval Adult Use Dispensing Organization License
2159	2159	23 at a secondary site, Early Approval Cultivation Center
2160	2160	24 License, Conditional Adult Use Dispensing Organization
2161	2161	25 License, or Adult Use Dispensing Organization License was
2162	2162	26 suspended, restricted, revoked, or denied for just cause,
2163	2163
2164	2164
2165	2165
2166	2166
2167	2167
2168	2168	SB3926 - 59 - LRB103 40218 CES 72109 b
2169	2169
2170	2170
2171	2171	SB3926- 60 -LRB103 40218 CES 72109 b SB3926 - 60 - LRB103 40218 CES 72109 b
2172	2172	SB3926 - 60 - LRB103 40218 CES 72109 b
2173	2173	1 or whose cannabis business establishment license was
2174	2174	2 suspended, restricted, revoked, or denied in any other
2175	2175	3 state.
2176	2176	4 (4) An applicant who has engaged in a pattern or
2177	2177	5 practice of unfair or illegal practices, methods, or
2178	2178	6 activities in the conduct of owning a cannabis business
2179	2179	7 establishment or other business.
2180	2180	8 (i) The Department shall deny the license if any principal
2181	2181	9 officer, board member, or person having a financial or voting
2182	2182	10 interest of 5% or greater in the licensee is delinquent in
2183	2183	11 filing any required tax return or paying any amount owed to the
2184	2184	12 State of Illinois.
2185	2185	13 (j) The Department shall verify an applicant's compliance
2186	2186	14 with the requirements of this Article and rules adopted under
2187	2187	15 this Article before issuing a Conditional Adult Use Dispensing
2188	2188	16 Organization License.
2189	2189	17 (k) If an applicant is awarded a Conditional Adult Use
2190	2190	18 Dispensing Organization License under this Section, the
2191	2191	19 information and plans provided in the application, including
2192	2192	20 any plans submitted for bonus points, shall become a condition
2193	2193	21 of the Conditional Adult Use Dispensing Organization License
2194	2194	22 and any Adult Use Dispensing Organization License issued to
2195	2195	23 the holder of the Conditional Adult Use Dispensing
2196	2196	24 Organization License, except as otherwise provided by this Act
2197	2197	25 or by rule. Dispensing organizations have a duty to disclose
2198	2198	26 any material changes to the application. The Department shall
2199	2199
2200	2200
2201	2201
2202	2202
2203	2203
2204	2204	SB3926 - 60 - LRB103 40218 CES 72109 b
2205	2205
2206	2206
2207	2207	SB3926- 61 -LRB103 40218 CES 72109 b SB3926 - 61 - LRB103 40218 CES 72109 b
2208	2208	SB3926 - 61 - LRB103 40218 CES 72109 b
2209	2209	1 review all material changes disclosed by the dispensing
2210	2210	2 organization and may reevaluate its prior decision regarding
2211	2211	3 the awarding of a Conditional Adult Use Dispensing
2212	2212	4 Organization License, including, but not limited to,
2213	2213	5 suspending or permanently revoking a Conditional Adult Use
2214	2214	6 Dispensing Organization License. Failure to comply with the
2215	2215	7 conditions or requirements in the application may subject the
2216	2216	8 dispensing organization to discipline up to and including
2217	2217	9 suspension or permanent revocation of its authorization or
2218	2218	10 Conditional Adult Use Dispensing Organization License by the
2219	2219	11 Department.
2220	2220	12 (l) If an applicant has not begun operating as a
2221	2221	13 dispensing organization within one year after the issuance of
2222	2222	14 the Conditional Adult Use Dispensing Organization License
2223	2223	15 under this Section, the Department may permanently revoke the
2224	2224	16 Conditional Adult Use Dispensing Organization License and
2225	2225	17 award it to the next highest scoring applicant in the BLS
2226	2226	18 Region if a suitable applicant indicates a continued interest
2227	2227	19 in the Conditional Adult Use Dispensing Organization License
2228	2228	20 or may begin a new selection process to award a Conditional
2229	2229	21 Adult Use Dispensing Organization License.
2230	2230	22 (410 ILCS 705/15-155)
2231	2231	23 Sec. 15-155. Unlicensed practice; violation; civil
2232	2232	24 penalty.
2233	2233	25 (a) In addition to any other penalty provided by law, any
2234	2234
2235	2235
2236	2236
2237	2237
2238	2238
2239	2239	SB3926 - 61 - LRB103 40218 CES 72109 b
2240	2240
2241	2241
2242	2242	SB3926- 62 -LRB103 40218 CES 72109 b SB3926 - 62 - LRB103 40218 CES 72109 b
2243	2243	SB3926 - 62 - LRB103 40218 CES 72109 b
2244	2244	1 person who practices, offers to practice, attempts to
2245	2245	2 practice, or holds oneself out to practice as a licensed
2246	2246	3 dispensing organization owner, principal officer,
2247	2247	4 agent-in-charge, or agent, cultivates, processes, distributes,
2248	2248	5 sells, or offers for sale cannabis, cannabis-infused products,
2249	2249	6 cannabis concentrates, or cannabis flower without being
2250	2250	7 licensed under this Act shall, in addition to any other
2251	2251	8 penalty provided by law, pay a civil penalty to the Department
2252	2252	9 of Financial and Professional Regulation in an amount not to
2253	2253	10 exceed $10,000 for each offense as determined by the
2254	2254	11 Department. Each day a person engages in unlicensed practice
2255	2255	12 in violation of the provisions of this Section constitutes a
2256	2256	13 separate offense. The civil penalty shall be assessed by the
2257	2257	14 Department after a hearing is held in accordance with the
2258	2258	15 provisions set forth in this Act regarding the provision of a
2259	2259	16 hearing for the discipline of a licensee.
2260	2260	17 (b) The Department, the Attorney General, any State or
2261	2261	18 local law enforcement agency, or any State's Attorney has the
2262	2262	19 authority and power to investigate any and all unlicensed
2263	2263	20 activity.
2264	2264	21 (b-5) Whenever a person is convicted of unlicensed
2265	2265	22 activity under this Act or the Compassionate Use of Medical
2266	2266	23 Cannabis Act, it shall be the duty of the clerk of the court in
2267	2267	24 which the conviction is had, within 5 days after the
2268	2268	25 conviction, to forward to the Secretary of Financial and
2269	2269	26 Professional Regulation a report of the conviction, and the
2270	2270
2271	2271
2272	2272
2273	2273
2274	2274
2275	2275	SB3926 - 62 - LRB103 40218 CES 72109 b
2276	2276
2277	2277
2278	2278	SB3926- 63 -LRB103 40218 CES 72109 b SB3926 - 63 - LRB103 40218 CES 72109 b
2279	2279	SB3926 - 63 - LRB103 40218 CES 72109 b
2280	2280	1 court may recommend the suspension of any licenses awarded to
2281	2281	2 the convicted person under this Act, the Compassionate Use of
2282	2282	3 Medical Cannabis Act, or the Hemp Consumers Products Act.
2283	2283	4 (b-10) Whenever a person is convicted, for a third or
2284	2284	5 subsequent violation in a 3-year period, of unlicensed
2285	2285	6 activity under this Act or the Compassionate Use of Medical
2286	2286	7 Cannabis Act, the judge of the court in which the conviction is
2287	2287	8 had shall require the immediate surrender to the clerk of the
2288	2288	9 court of all licenses or conditional licenses awarded to the
2289	2289	10 convicted person under this Act, the Compassionate Use of
2290	2290	11 Medical Cannabis Act, or the Hemp Consumers Products Act, and
2291	2291	12 the clerk of the court shall, within 5 days after the
2292	2292	13 conviction, forward the surrendered licenses, together with a
2293	2293	14 report of the conviction, to the Secretary of Financial and
2294	2294	15 Professional Regulation.
2295	2295	16 (c) The civil penalty shall be paid within 60 days after
2296	2296	17 the effective date of the order imposing the civil penalty or
2297	2297	18 in accordance with the order imposing the civil penalty. The
2298	2298	19 order shall constitute a judgment and may be filed and
2299	2299	20 execution had thereon in the same manner as any judgment from
2300	2300	21 any court of this State.
2301	2301	22 (d) A violation of subsection (a) is an unlawful practice
2302	2302	23 under Section 2Z of the Consumer Fraud and Deceptive Business
2303	2303	24 Practices Act. All remedies, penalties, and authority granted
2304	2304	25 to the Attorney General under that Act shall be available for
2305	2305	26 the enforcement of this Act.
2306	2306
2307	2307
2308	2308
2309	2309
2310	2310
2311	2311	SB3926 - 63 - LRB103 40218 CES 72109 b
2312	2312
2313	2313
2314	2314	SB3926- 64 -LRB103 40218 CES 72109 b SB3926 - 64 - LRB103 40218 CES 72109 b
2315	2315	SB3926 - 64 - LRB103 40218 CES 72109 b
2316	2316	1 (e) Nothing in this Section shall prohibit a unit of local
2317	2317	2 government from enacting a local law or ordinance to carry out
2318	2318	3 enforcement activities and assess civil penalties against
2319	2319	4 unlicensed cannabis sales.
2320	2320	5 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
2321	2321	6 (410 ILCS 705/20-60 new)
2322	2322	7 Sec. 20-60. Unlicensed practice; violation; civil penalty.
2323	2323	8 (a) In addition to any other penalty provided by law, any
2324	2324	9 person who practices, offers to practice, attempts to
2325	2325	10 practice, or holds oneself out to practice as a licensed
2326	2326	11 cultivation center, infuser, or craft grower owner, principal
2327	2327	12 officer, agent-in-charge, or agent or who cultivates,
2328	2328	13 processes, distributes, sells, or offers for sale cannabis,
2329	2329	14 cannabis-infused products, cannabis concentrates, or cannabis
2330	2330	15 flower without being licensed under this Act shall, in
2331	2331	16 addition to any other penalty provided by law, pay a civil
2332	2332	17 penalty to the Department of Agriculture in an amount not to
2333	2333	18 exceed $10,000 for each offense. Each day any person engages
2334	2334	19 in unlicensed practice in violation of the provisions of this
2335	2335	20 Section constitutes a separate offense. The civil penalty
2336	2336	21 shall be assessed by the Department after a hearing is held in
2337	2337	22 accordance with the provisions set forth in this Act regarding
2338	2338	23 hearings for the discipline of a licensee.
2339	2339	24 (b) The Department, the Attorney General, any State or
2340	2340	25 local law enforcement agency, or any State's Attorney has the
2341	2341
2342	2342
2343	2343
2344	2344
2345	2345
2346	2346	SB3926 - 64 - LRB103 40218 CES 72109 b
2347	2347
2348	2348
2349	2349	SB3926- 65 -LRB103 40218 CES 72109 b SB3926 - 65 - LRB103 40218 CES 72109 b
2350	2350	SB3926 - 65 - LRB103 40218 CES 72109 b
2351	2351	1 authority and power to investigate any and all unlicensed
2352	2352	2 activity.
2353	2353	3 (b-5) Whenever a person is convicted of unlicensed
2354	2354	4 activity under this Act, or the Compassionate Use of Medical
2355	2355	5 Cannabis Act, it shall be the duty of the clerk of the court in
2356	2356	6 which the conviction is had, within 5 days after the
2357	2357	7 conviction, to forward to the Director of Agriculture a report
2358	2358	8 of the conviction, and the court may recommend the suspension
2359	2359	9 of any licenses awarded to the convicted person under this
2360	2360	10 Act, the Compassionate Use of Medical Cannabis Act, or the
2361	2361	11 Hemp Consumers Products Act.
2362	2362	12 (b-10) Whenever a person is convicted, for a third
2363	2363	13 subsequent violation in a 3 -year period, of unlicensed
2364	2364	14 activity under this Act, or the Compassionate Use of Medical
2365	2365	15 Cannabis Act, the judge of the court in which the conviction is
2366	2366	16 had shall require the surrender to the clerk of the court of
2367	2367	17 all licenses or conditional license awarded to the convicted
2368	2368	18 person under this Act, the Compassionate Use of Medical
2369	2369	19 Cannabis Act, or the Hemp Consumers Products Act, and the
2370	2370	20 clerk of the court shall, within 5 days after the conviction,
2371	2371	21 forward the surrendered licenses, together with a report of
2372	2372	22 the conviction, to the Director of Agriculture.
2373	2373	23 (c) The civil penalty shall be paid within 60 days after
2374	2374	24 the effective date of the order imposing the civil penalty or
2375	2375	25 in accordance with the order imposing the civil penalty. The
2376	2376	26 order shall constitute a judgment and may be filed and
2377	2377
2378	2378
2379	2379
2380	2380
2381	2381
2382	2382	SB3926 - 65 - LRB103 40218 CES 72109 b
2383	2383
2384	2384
2385	2385	SB3926- 66 -LRB103 40218 CES 72109 b SB3926 - 66 - LRB103 40218 CES 72109 b
2386	2386	SB3926 - 66 - LRB103 40218 CES 72109 b
2387	2387	1 execution had thereon in the same manner as any judgment from
2388	2388	2 any court of this State.
2389	2389	3 (d) In addition to any other remedies or penalties
2390	2390	4 provided by law, upon a third or subsequent revocation or
2391	2391	5 suspension of a license, a unit of local government may
2392	2392	6 suspend or revoke any locally established licenses held by the
2393	2393	7 person, and prohibit the person
2394	2394	from further operations and
2395	2395	8 seize any cannabis or THC product.
2396	2396	9 (410 ILCS 705/35-22 new)
2397	2397	10 Sec. 35-22. Social Equity Justice Involved Lottery for 50
2398	2398	11 New Conditional Infuser Organization Licenses.
2399	2399	12 (a) In addition to any of the licenses issued under this
2400	2400	13 Article, within 10 business days after the resulting final
2401	2401	14 scores for all scored applications pursuant to Section 35-15
2402	2402	15 are released, the Department shall issue up to 50 Conditional
2403	2403	16 Infuser Organization Licenses by lot, pursuant to the
2404	2404	17 application process adopted under this Section. In order to be
2405	2405	18 eligible to be awarded a Conditional Infuser Organization
2406	2406	19 License by lot, an Infuser Applicant must be a Qualifying
2407	2407	20 Social Equity Justice Involved Applicant.
2408	2408	21 The licenses issued under this Section shall be awarded on
2409	2409	22 or before July 1, 2025 in each BLS Region in the following
2410	2410	23 amounts:
2411	2411	24 (1) Bloomington: 1.
2412	2412	25 (2) Cape Girardeau: 1.
2413	2413
2414	2414
2415	2415
2416	2416
2417	2417
2418	2418	SB3926 - 66 - LRB103 40218 CES 72109 b
2419	2419
2420	2420
2421	2421	SB3926- 67 -LRB103 40218 CES 72109 b SB3926 - 67 - LRB103 40218 CES 72109 b
2422	2422	SB3926 - 67 - LRB103 40218 CES 72109 b
2423	2423	1 (3) Carbondale-Marion: 1.
2424	2424	2 (4) Champaign-Urbana: 1.
2425	2425	3 (5) Chicago-Naperville-Elgin: 31.
2426	2426	4 (6) Danville: 1.
2427	2427	5 (7) Davenport-Moline-Rock Island: 1.
2428	2428	6 (8) Decatur: 1.
2429	2429	7 (9) Kankakee: 1.
2430	2430	8 (10) Peoria: 2.
2431	2431	9 (11) Rockford: 1.
2432	2432	10 (12) St. Louis: 3.
2433	2433	11 (13) Springfield: 1.
2434	2434	12 (14) Northwest Illinois nonmetropolitan: 1.
2435	2435	13 (15) West Central Illinois nonmetropolitan: 1.
2436	2436	14 (16) East Central Illinois nonmetropolitan: 1.
2437	2437	15 (17) South Illinois nonmetropolitan: 1.
2438	2438	16 (b) The Department shall distribute the available licenses
2439	2439	17 established under this Section subject to the following:
2440	2440	18 (1) The drawing by lot for all available licenses
2441	2441	19 established under this Section shall occur on the same day
2442	2442	20 when practicable.
2443	2443	21 (2) Within each BLS Region, the first Qualifying
2444	2444	22 Social Equity Justice Involved Applicant drawn will have
2445	2445	23 the first right to an available license. The second
2446	2446	24 Qualifying Social Equity Justice Involved Applicant drawn
2447	2447	25 will have the second right to an available license. The
2448	2448	26 same pattern will continue for each subsequent applicant
2449	2449
2450	2450
2451	2451
2452	2452
2453	2453
2454	2454	SB3926 - 67 - LRB103 40218 CES 72109 b
2455	2455
2456	2456
2457	2457	SB3926- 68 -LRB103 40218 CES 72109 b SB3926 - 68 - LRB103 40218 CES 72109 b
2458	2458	SB3926 - 68 - LRB103 40218 CES 72109 b
2459	2459	1 drawn.
2460	2460	2 (3) The process for distributing available licenses
2461	2461	3 under this Section shall be recorded by the Department in
2462	2462	4 a format selected by the Department.
2463	2463	5 (4) An Infuser Applicant is prohibited from becoming a
2464	2464	6 Qualifying Social Equity Justice Involved Applicant if a
2465	2465	7 principal officer resigns after the resulting final scores
2466	2466	8 for all scored applications pursuant to Sections 35-15 are
2467	2467	9 released.
2468	2468	10 (5) No Qualifying Social Equity Justice Involved
2469	2469	11 Applicant may be awarded more than 2 Conditional Infuser
2470	2470	12 Organization Licenses at the conclusion of a lottery
2471	2471	13 conducted under this Section.
2472	2472	14 (6) No individual may be listed as a principal officer
2473	2473	15 of more than 2 Conditional Infuser Organization Licenses
2474	2474	16 awarded under this Section.
2475	2475	17 (7) If, upon being selected for an available license
2476	2476	18 established under this Section, a Qualifying Social Equity
2477	2477	19 Justice Involved Applicant exceeds the limits under
2478	2478	20 paragraph (5) or (6), the Qualifying Social Equity Justice
2479	2479	21 Involved Applicant must choose which license to abandon
2480	2480	22 and notify the Department in writing within 5 business
2481	2481	23 days on forms prescribed by the Department. If the
2482	2482	24 Qualifying Social Equity Justice Involved Applicant does
2483	2483	25 not notify the Department as required, the Department
2484	2484	26 shall refuse to issue the Qualifying Social Equity Justice
2485	2485
2486	2486
2487	2487
2488	2488
2489	2489
2490	2490	SB3926 - 68 - LRB103 40218 CES 72109 b
2491	2491
2492	2492
2493	2493	SB3926- 69 -LRB103 40218 CES 72109 b SB3926 - 69 - LRB103 40218 CES 72109 b
2494	2494	SB3926 - 69 - LRB103 40218 CES 72109 b
2495	2495	1 Involved Applicant all available licenses established
2496	2496	2 under this Section obtained by lot in all BLS Regions.
2497	2497	3 (8) If, upon being selected for an available license
2498	2498	4 established under this Section, a Qualifying Social Equity
2499	2499	5 Justice Involved Applicant has a principal officer who is
2500	2500	6 a principal officer in more than 10 Early Approval Adult
2501	2501	7 Use Dispensing Organization Licenses, Conditional Adult
2502	2502	8 Use Dispensing Organization Licenses, Adult Use Dispensing
2503	2503	9 Organization Licenses, or any combination thereof, the
2504	2504	10 licensees and the Qualifying Social Equity Justice
2505	2505	11 Involved Applicant listing that principal officer must
2506	2506	12 choose which license to abandon and notify the Department
2507	2507	13 in writing within 5 business days on forms prescribed by
2508	2508	14 the Department. If the Infuser Applicant or licensees do
2509	2509	15 not notify the Department as required, the Department
2510	2510	16 shall refuse to issue the Qualifying Social Equity Justice
2511	2511	17 Involved Applicant all available licenses established
2512	2512	18 under this Section obtained by lot in all BLS Regions.
2513	2513	19 (9) All available licenses that have been abandoned
2514	2514	20 under paragraph (7) or (8) shall be distributed to the
2515	2515	21 next Qualifying Social Equity Justice Involved Applicant
2516	2516	22 drawn by lot.
2517	2517	23 Any and all rights conferred or obtained under this
2518	2518	24 subsection shall be limited to the provisions of this
2519	2519	25 subsection.
2520	2520	26 (c) An applicant who receives a Conditional Infuser
2521	2521
2522	2522
2523	2523
2524	2524
2525	2525
2526	2526	SB3926 - 69 - LRB103 40218 CES 72109 b
2527	2527
2528	2528
2529	2529	SB3926- 70 -LRB103 40218 CES 72109 b SB3926 - 70 - LRB103 40218 CES 72109 b
2530	2530	SB3926 - 70 - LRB103 40218 CES 72109 b
2531	2531	1 Organization License under this Section has 180 days from the
2532	2532	2 date of the award to identify a physical location for the
2533	2533	3 infuser organization's activities. The applicant shall provide
2534	2534	4 evidence that the location is not within 1,500 feet of an
2535	2535	5 existing dispensing organization, unless the applicant is a
2536	2536	6 Social Equity Applicant or Social Equity Justice Involved
2537	2537	7 Applicant located or seeking to locate within 1,500 feet of a
2538	2538	8 dispensing organization licensed under Section 15-15 or
2539	2539	9 Section 15-20. If an applicant is unable to find a suitable
2540	2540	10 physical address in the opinion of the Department within 180
2541	2541	11 days from the issuance of the Conditional Infuser Organization
2542	2542	12 License, the Department may extend the period for finding a
2543	2543	13 physical address an additional 540 days if the Conditional
2544	2544	14 Infuser Organization License holder demonstrates a concrete
2545	2545	15 attempt to secure a location and a hardship. If the Department
2546	2546	16 denies the extension or the Conditional Infuser Organization
2547	2547	17 License holder is unable to find a location or become
2548	2548	18 operational within 720 days of being awarded a Conditional
2549	2549	19 Infuser Organization License under this Section, the
2550	2550	20 Department shall rescind the Conditional Infuser Organization
2551	2551	21 License and award it pursuant to subsection (b) and notify the
2552	2552	22 new awardee at the email address provided in the awardee's
2553	2553	23 application, provided the applicant receiving the Conditional
2554	2554	24 Infuser Organization License: (i) confirms a continued
2555	2555	25 interest in operating an infuser organization; (ii) can
2556	2556	26 provide evidence that the applicant continues to meet all
2557	2557
2558	2558
2559	2559
2560	2560
2561	2561
2562	2562	SB3926 - 70 - LRB103 40218 CES 72109 b
2563	2563
2564	2564
2565	2565	SB3926- 71 -LRB103 40218 CES 72109 b SB3926 - 71 - LRB103 40218 CES 72109 b
2566	2566	SB3926 - 71 - LRB103 40218 CES 72109 b
2567	2567	1 requirements for holding a Conditional Infuser Organization
2568	2568	2 License set forth in this Act; and (iii) has not otherwise
2569	2569	3 become ineligible to be awarded a Conditional Infuser
2570	2570	4 Organization License. If the new awardee is unable to accept
2571	2571	5 the Conditional Infuser Organization License, the Department
2572	2572	6 shall award the Conditional Infuser Organization License
2573	2573	7 pursuant to subsection (b). The new awardee shall be subject
2574	2574	8 to the same required deadlines as provided in this subsection.
2575	2575	9 (d) If, within 180 days of being awarded a Conditional
2576	2576	10 Infuser Organization License, a dispensing organization is
2577	2577	11 unable to find a location within the BLS Region in which it was
2578	2578	12 awarded a Conditional Infuser Organization License under this
2579	2579	13 Section because no jurisdiction within the BLS Region allows
2580	2580	14 for the operation of an Infuser Organization, the Department
2581	2581	15 may authorize the Conditional Infuser Organization License
2582	2582	16 holder to transfer its Conditional Infuser Organization
2583	2583	17 License to a BLS Region specified by the Department.
2584	2584	18 (e) An infuser organization that is awarded a Conditional
2585	2585	19 Infuser Organization License under this Section shall not
2586	2586	20 directly incorporate cannabis or cannabis concentrate into a
2587	2587	21 product formulation to produce a cannabis-infused product
2588	2588	22 until the infuser organization has received an Infuser
2589	2589	23 Organization License issued by the Department pursuant to
2590	2590	24 Section 35-15.
2591	2591	25 (f) The Department shall conduct a background check of the
2592	2592	26 prospective dispensing organization agents in order to carry
2593	2593
2594	2594
2595	2595
2596	2596
2597	2597
2598	2598	SB3926 - 71 - LRB103 40218 CES 72109 b
2599	2599
2600	2600
2601	2601	SB3926- 72 -LRB103 40218 CES 72109 b SB3926 - 72 - LRB103 40218 CES 72109 b
2602	2602	SB3926 - 72 - LRB103 40218 CES 72109 b
2603	2603	1 out this Article. The Illinois State Police shall charge the
2604	2604	2 applicant a fee for conducting the criminal history record
2605	2605	3 check, which shall be deposited into the State Police Services
2606	2606	4 Fund and shall not exceed the actual cost of the record check.
2607	2607	5 Each person applying as a dispensing organization agent shall
2608	2608	6 submit a full set of fingerprints to the Illinois State Police
2609	2609	7 for the purpose of obtaining a State and federal criminal
2610	2610	8 records check. These fingerprints shall be checked against the
2611	2611	9 fingerprint records now and hereafter, to the extent allowed
2612	2612	10 by law, filed with the Illinois State Police and the Federal
2613	2613	11 Bureau of Investigation criminal history records databases.
2614	2614	12 The Illinois State Police shall furnish, following positive
2615	2615	13 identification, all Illinois conviction information to the
2616	2616	14 Department.
2617	2617	15 (g) The Department may verify information contained in
2618	2618	16 each application and accompanying documentation to assess the
2619	2619	17 applicant's veracity and fitness to operate a dispensing
2620	2620	18 organization.
2621	2621	19 (h) The Department may, in its discretion, refuse to issue
2622	2622	20 an authorization to an applicant who meets any of the
2623	2623	21 following criteria:
2624	2624	22 (1) An applicant who is unqualified to perform the
2625	2625	23 duties required of the applicant.
2626	2626	24 (2) An applicant who fails to disclose or states
2627	2627	25 falsely any information called for in the application.
2628	2628	26 (3) An applicant who has been found guilty of a
2629	2629
2630	2630
2631	2631
2632	2632
2633	2633
2634	2634	SB3926 - 72 - LRB103 40218 CES 72109 b
2635	2635
2636	2636
2637	2637	SB3926- 73 -LRB103 40218 CES 72109 b SB3926 - 73 - LRB103 40218 CES 72109 b
2638	2638	SB3926 - 73 - LRB103 40218 CES 72109 b
2639	2639	1 violation of this Act, who has had any disciplinary order
2640	2640	2 entered against the applicant by the Department, who has
2641	2641	3 entered into a disciplinary or nondisciplinary agreement
2642	2642	4 with the Department, whose medical cannabis dispensing
2643	2643	5 organization, medical cannabis cultivation organization,
2644	2644	6 Early Approval Adult Use Dispensing Organization License,
2645	2645	7 Early Approval Adult Use Dispensing Organization License
2646	2646	8 at a secondary site, Early Approval Cultivation Center
2647	2647	9 License, Conditional Adult Use Dispensing Organization
2648	2648	10 License, or Adult Use Dispensing Organization License was
2649	2649	11 suspended, restricted, revoked, or denied for just cause,
2650	2650	12 or whose cannabis business establishment license was
2651	2651	13 suspended, restricted, revoked, or denied in any other
2652	2652	14 state.
2653	2653	15 (4) An applicant who has engaged in a pattern or
2654	2654	16 practice of unfair or illegal practices, methods, or
2655	2655	17 activities in the conduct of owning a cannabis business
2656	2656	18 establishment or other business.
2657	2657	19 (i) The Department shall deny the license if any principal
2658	2658	20 officer, board member, or person having a financial or voting
2659	2659	21 interest of 5% or greater in the licensee is delinquent in
2660	2660	22 filing any required tax return or paying any amount owed to the
2661	2661	23 State of Illinois.
2662	2662	24 (j) The Department shall verify an applicant's compliance
2663	2663	25 with the requirements of this Article and rules adopted under
2664	2664	26 this Article before issuing a Conditional Infuser Organization
2665	2665
2666	2666
2667	2667
2668	2668
2669	2669
2670	2670	SB3926 - 73 - LRB103 40218 CES 72109 b
2671	2671
2672	2672
2673	2673	SB3926- 74 -LRB103 40218 CES 72109 b SB3926 - 74 - LRB103 40218 CES 72109 b
2674	2674	SB3926 - 74 - LRB103 40218 CES 72109 b
2675	2675	1 License.
2676	2676	2 (k) If an applicant is awarded a Conditional Infuser
2677	2677	3 Organization License under this Section, the information and
2678	2678	4 plans provided in the application, including any plans
2679	2679	5 submitted for bonus points, shall become a condition of the
2680	2680	6 Conditional Infuser Organization License and any Infuser
2681	2681	7 Organization License issued to the holder of the Conditional
2682	2682	8 Infuser Organization License, except as otherwise provided by
2683	2683	9 this Act or by rule. Dispensing organizations have a duty to
2684	2684	10 disclose any material changes to the application. The
2685	2685	11 Department shall review all material changes disclosed by the
2686	2686	12 dispensing organization and may reevaluate its prior decision
2687	2687	13 regarding the awarding of a Conditional Infuser Organization
2688	2688	14 License, including, but not limited to, suspending or
2689	2689	15 permanently revoking a Conditional Infuser Organization
2690	2690	16 License. Failure to comply with the conditions or requirements
2691	2691	17 in the application may subject the dispensing organization to
2692	2692	18 discipline up to and including suspension or permanent
2693	2693	19 revocation of its authorization or Conditional Infuser
2694	2694	20 Organization License by the Department.
2695	2695	21 (l) If an applicant has not begun operating as a
2696	2696	22 dispensing organization within one year after the issuance of
2697	2697	23 the Conditional Infuser Organization License under this
2698	2698	24 Section, the Department may permanently revoke the Conditional
2699	2699	25 Infuser Organization License and award it to the next highest
2700	2700	26 scoring applicant in the BLS Region if a suitable applicant
2701	2701
2702	2702
2703	2703
2704	2704
2705	2705
2706	2706	SB3926 - 74 - LRB103 40218 CES 72109 b
2707	2707
2708	2708
2709	2709	SB3926- 75 -LRB103 40218 CES 72109 b SB3926 - 75 - LRB103 40218 CES 72109 b
2710	2710	SB3926 - 75 - LRB103 40218 CES 72109 b
2711	2711	1 indicates a continued interest in the Conditional Infuser
2712	2712	2 Organization License or may begin a new selection process to
2713	2713	3 award a Conditional Infuser Organization License.
2714	2714	4 (410 ILCS 705/55-35)
2715	2715	5 Sec. 55-35. Administrative rulemaking.
2716	2716	6 (a) No later than 180 days after the effective date of this
2717	2717	7 Act, the Department of Agriculture, the Illinois State Police,
2718	2718	8 the Department of Financial and Professional Regulation, the
2719	2719	9 Department of Revenue, the Department of Commerce and Economic
2720	2720	10 Opportunity, and the Treasurer's Office shall adopt permanent
2721	2721	11 rules in accordance with their responsibilities under this
2722	2722	12 Act. The Department of Agriculture, the Illinois State Police,
2723	2723	13 the Department of Financial and Professional Regulation, the
2724	2724	14 Department of Revenue, and the Department of Commerce and
2725	2725	15 Economic Opportunity may adopt rules necessary to regulate
2726	2726	16 personal cannabis use through the use of emergency rulemaking
2727	2727	17 in accordance with subsection (gg) of Section 5-45 of the
2728	2728	18 Illinois Administrative Procedure Act. The General Assembly
2729	2729	19 finds that the adoption of rules to regulate cannabis use is
2730	2730	20 deemed an emergency and necessary for the public interest,
2731	2731	21 safety, and welfare.
2732	2732	22 (b) The Department of Agriculture rules may address, but
2733	2733	23 are not limited to, the following matters related to
2734	2734	24 cultivation centers, craft growers, infuser organizations, and
2735	2735	25 transporting organizations with the goal of protecting against
2736	2736
2737	2737
2738	2738
2739	2739
2740	2740
2741	2741	SB3926 - 75 - LRB103 40218 CES 72109 b
2742	2742
2743	2743
2744	2744	SB3926- 76 -LRB103 40218 CES 72109 b SB3926 - 76 - LRB103 40218 CES 72109 b
2745	2745	SB3926 - 76 - LRB103 40218 CES 72109 b
2746	2746	1 diversion and theft, without imposing an undue burden on the
2747	2747	2 cultivation centers, craft growers, infuser organizations, or
2748	2748	3 transporting organizations:
2749	2749	4 (1) oversight requirements for cultivation centers,
2750	2750	5 craft growers, infuser organizations, and transporting
2751	2751	6 organizations;
2752	2752	7 (2) recordkeeping requirements for cultivation
2753	2753	8 centers, craft growers, infuser organizations, and
2754	2754	9 transporting organizations;
2755	2755	10 (3) security requirements for cultivation centers,
2756	2756	11 craft growers, infuser organizations, and transporting
2757	2757	12 organizations, which shall include that each cultivation
2758	2758	13 center, craft grower, infuser organization, and
2759	2759	14 transporting organization location must be protected by a
2760	2760	15 fully operational security alarm system;
2761	2761	16 (4) standards for enclosed, locked facilities under
2762	2762	17 this Act;
2763	2763	18 (5) procedures for suspending or revoking the
2764	2764	19 identification cards of agents of cultivation centers,
2765	2765	20 craft growers, infuser organizations, and transporting
2766	2766	21 organizations that commit violations of this Act or the
2767	2767	22 rules adopted under this Section;
2768	2768	23 (6) rules concerning the intrastate transportation of
2769	2769	24 cannabis from a cultivation center, craft grower, infuser
2770	2770	25 organization, and transporting organization to a
2771	2771	26 dispensing organization;
2772	2772
2773	2773
2774	2774
2775	2775
2776	2776
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2782	2782	1 (7) standards concerning the testing, quality,
2783	2783	2 cultivation, and processing of cannabis; and
2784	2784	3 (7.5) standards and rules for the investigation and
2785	2785	4 enforcement of unregulated and unlicensed sale of cannabis
2786	2786	5 and cannabis products; and
2787	2787	6 (8) any other matters under oversight by the
2788	2788	7 Department of Agriculture as are necessary for the fair,
2789	2789	8 impartial, stringent, and comprehensive administration of
2790	2790	9 this Act.
2791	2791	10 (b-5) Notwithstanding any standards and rules developed
2792	2792	11 under paragraph (7.5) of subsection (b) of this Section, the
2793	2793	12 Department of Agriculture shall update through official
2794	2794	13 guidance and publish publicly on its website the cannabinoids
2795	2795	14 that it deems tetrahydrocannabinol or THC on or before January
2796	2796	15 1 and July 1 of each calendar year.
2797	2797	16 (c) The Department of Financial and Professional
2798	2798	17 Regulation rules may address, but are not limited to, the
2799	2799	18 following matters related to dispensing organizations, with
2800	2800	19 the goal of protecting against diversion and theft, without
2801	2801	20 imposing an undue burden on the dispensing organizations:
2802	2802	21 (1) oversight requirements for dispensing
2803	2803	22 organizations;
2804	2804	23 (2) recordkeeping requirements for dispensing
2805	2805	24 organizations;
2806	2806	25 (3) security requirements for dispensing
2807	2807	26 organizations, which shall include that each dispensing
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2818	2818	1 organization location must be protected by a fully
2819	2819	2 operational security alarm system;
2820	2820	3 (4) procedures for suspending or revoking the licenses
2821	2821	4 of dispensing organization agents that commit violations
2822	2822	5 of this Act or the rules adopted under this Act;
2823	2823	6 (4.5) standards and rules for the investigation and
2824	2824	7 enforcement of unregulated and unlicensed sale of cannabis
2825	2825	8 and cannabis products; and
2826	2826	9 (5) any other matters under oversight by the
2827	2827	10 Department of Financial and Professional Regulation that
2828	2828	11 are necessary for the fair, impartial, stringent, and
2829	2829	12 comprehensive administration of this Act.
2830	2830	13 (d) The Department of Revenue rules may address, but are
2831	2831	14 not limited to, the following matters related to the payment
2832	2832	15 of taxes by cannabis business establishments:
2833	2833	16 (1) recording of sales;
2834	2834	17 (2) documentation of taxable income and expenses;
2835	2835	18 (3) transfer of funds for the payment of taxes; or
2836	2836	19 (4) any other matter under the oversight of the
2837	2837	20 Department of Revenue.
2838	2838	21 (e) The Department of Commerce and Economic Opportunity
2839	2839	22 rules may address, but are not limited to, a loan program or
2840	2840	23 grant program to assist Social Equity Applicants access the
2841	2841	24 capital needed to start a cannabis business establishment. The
2842	2842	25 names of recipients and the amounts of any moneys received
2843	2843	26 through a loan program or grant program shall be a public
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2854	2854	1 record.
2855	2855	2 (f) The Illinois State Police rules may address
2856	2856	3 enforcement of its authority under this Act. The Illinois
2857	2857	4 State Police shall not make rules that infringe on the
2858	2858	5 exclusive authority of the Department of Financial and
2859	2859	6 Professional Regulation or the Department of Agriculture over
2860	2860	7 licensees under this Act.
2861	2861	8 (g) The Department of Human Services shall develop and
2862	2862	9 disseminate:
2863	2863	10 (1) educational information about the health risks
2864	2864	11 associated with the use of cannabis; and
2865	2865	12 (2) one or more public education campaigns in
2866	2866	13 coordination with local health departments and community
2867	2867	14 organizations, including one or more prevention campaigns
2868	2868	15 directed at children, adolescents, parents, and pregnant
2869	2869	16 or breastfeeding women, to inform them of the potential
2870	2870	17 health risks associated with intentional or unintentional
2871	2871	18 cannabis use.
2872	2872	19 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
2873	2873	20 102-538, eff. 8-20-21.)
2874	2874	21 Section 910. The Industrial Hemp Act is amended by
2875	2875	22 changing Sections 5 and 20 as follows:
2876	2876	23 (505 ILCS 89/5)
2877	2877	24 Sec. 5. Definitions. In this Act:
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2888	2888	1 "Department" means the Department of Agriculture.
2889	2889	2 "Director" means the Director of Agriculture.
2890	2890	3 "Hemp" or "industrial hemp" means the plant Cannabis
2891	2891	4 sativa L. and any part of that plant, whether growing or not,
2892	2892	5 with a delta-9 tetrahydrocannabinol concentration of not more
2893	2893	6 than 0.3 percent on a dry weight basis and includes any
2894	2894	7 intermediate or finished product made or derived from
2895	2895	8 industrial hemp that is not intended for human or animal
2896	2896	9 consumption by any means.
2897	2897	10 "Hemp production plan" means a plan submitted by the
2898	2898	11 Department to the Secretary of the United States Department of
2899	2899	12 Agriculture pursuant to the federal Agriculture Improvement
2900	2900	13 Act of 2018, Public Law 115-334, and consistent with the
2901	2901	14 Domestic Hemp Production Program pursuant to 7 CFR Part 990
2902	2902	15 wherein the Department establishes its desire to have primary
2903	2903	16 regulatory authority over the production of hemp.
2904	2904	17 "Land area" means a farm as defined in Section 1-60 of the
2905	2905	18 Property Tax Code in this State or land or facilities under the
2906	2906	19 control of an institution of higher education.
2907	2907	20 "Person" means any individual, partnership, firm,
2908	2908	21 corporation, company, society, association, the State or any
2909	2909	22 department, agency, or subdivision thereof, or any other
2910	2910	23 entity.
2911	2911	24 "Process" means the conversion of raw industrial hemp
2912	2912	25 plant material into a form that is presently legal to import
2913	2913	26 from outside the United States under federal law.
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2924	2924	1 "THC" means delta-9 tetrahydrocannabinol.
2925	2925	2 (Source: P.A. 102-690, eff. 12-17-21.)
2926	2926	3 (505 ILCS 89/20)
2927	2927	4 Sec. 20. Hemp products. Nothing in this Act shall alter
2928	2928	5 the legality of industrial hemp or hemp products not intended
2929	2929	6 for human or animal consumption that are presently legal to
2930	2930	7 possess or own. The manufacture, sale, and advertisement of
2931	2931	8 all hemp or hemp products that are intended for human or animal
2932	2932	9 consumption by any means are regulated under the Hemp Consumer
2933	2933	10 Products Act hemp or hemp products that are presently legal to
2934	2934	11 possess or own.
2935	2935	12 (Source: P.A. 100-1091, eff. 8-26-18.)
2936	2936	13 Section 915. The Consumer Fraud and Deceptive Business
2937	2937	14 Practices Act is amended by changing Section 2Z as follows:
2938	2938	15 (815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
2939	2939	16 Sec. 2Z. Violations of other Acts. Any person who
2940	2940	17 knowingly violates the Automotive Repair Act, the Automotive
2941	2941	18 Collision Repair Act, the Home Repair and Remodeling Act, the
2942	2942	19 Dance Studio Act, the Physical Fitness Services Act, the
2943	2943	20 Hearing Instrument Consumer Protection Act, the Illinois Union
2944	2944	21 Label Act, the Installment Sales Contract Act, the Job
2945	2945	22 Referral and Job Listing Services Consumer Protection Act, the
2946	2946	23 Travel Promotion Consumer Protection Act, the Credit Services
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2957	2957	1 Organizations Act, the Automatic Telephone Dialers Act, the
2958	2958	2 Pay-Per-Call Services Consumer Protection Act, the Telephone
2959	2959	3 Solicitations Act, the Illinois Funeral or Burial Funds Act,
2960	2960	4 the Cemetery Oversight Act, the Cemetery Care Act, the Safe
2961	2961	5 and Hygienic Bed Act, the Illinois Pre-Need Cemetery Sales
2962	2962	6 Act, the High Risk Home Loan Act, the Payday Loan Reform Act,
2963	2963	7 the Predatory Loan Prevention Act, the Mortgage Rescue Fraud
2964	2964	8 Act, subsection (a) or (b) of Section 3-10 of the Cigarette Tax
2965	2965	9 Act, subsection (a) or (b) of Section 3-10 of the Cigarette Use
2966	2966	10 Tax Act, the Electronic Mail Act, the Internet Caller
2967	2967	11 Identification Act, paragraph (6) of subsection (k) of Section
2968	2968	12 6-305 of the Illinois Vehicle Code, Section 11-1431, 18d-115,
2969	2969	13 18d-120, 18d-125, 18d-135, 18d-150, or 18d-153 of the Illinois
2970	2970	14 Vehicle Code, Article 3 of the Residential Real Property
2971	2971	15 Disclosure Act, the Automatic Contract Renewal Act, the
2972	2972	16 Reverse Mortgage Act, Section 25 of the Youth Mental Health
2973	2973	17 Protection Act, the Personal Information Protection Act, or
2974	2974	18 the Student Online Personal Protection Act, or subsection (a)
2975	2975	19 of Section 15-155 of the Cannabis Regulation and Tax Act
2976	2976	20 commits an unlawful practice within the meaning of this Act.
2977	2977	21 (Source: P.A. 100-315, eff. 8-24-17; 100-416, eff. 1-1-18;
2978	2978	22 100-863, eff. 8-14-18; 101-658, eff. 3-23-21.)
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