Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3940 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 SB3940 Introduced 5/1/2024, by Sen. Kimberly A. Lightford SYNOPSIS AS INTRODUCED: See Index Amends The Department of Professional Regulation Law of the Civil Administrative Code of Illinois, makes changes concerning confidentiality regarding the Office of Executive Inspector General; makes conforming changes. Amends the Illinois Procurement Code. Provides that the exemption in the Code relating to implementing the Cannabis Regulation and Tax Act shall be 8 years (instead of 5 years) after June 25, 2019. Amends the State Finance Act. Changes the name of the Local Cannabis Consumer Excise Tax Trust Fund to the Local Cannabis Retailers' Occupation Tax Trust Fund. Amends the Retailers' Occupation Tax Act. Specifies that it is a purpose of the Act for the Department of Revenue to report certain cannabis-related tax and business district tax revenues. Amends the Counties Code and the Illinois Municipal Code. Makes changes in provisions concerning limitations on the home rule powers of counties and municipalities. Amends the Cannabis Regulation and Tax Act. Adds and makes changes to various definitions. Authorizes the Department of Agriculture and the Department of Financial and Professional Regulation to establish, by rule, certain market protections. Requires the Department of Agriculture to license cannabis laboratories. Provides for the repeal of provisions establishing cultivator taxes and craft grower taxes. Amends the Tobacco Accessories and Smoking Herbs Control Act. Deletes a provision which specifies that the sale and possession of marijuana and hashish is illegal. Makes other changes. Effective immediately. LRB103 40496 RJT 72952 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3940 Introduced 5/1/2024, by Sen. Kimberly A. Lightford SYNOPSIS AS INTRODUCED: See Index See Index Amends The Department of Professional Regulation Law of the Civil Administrative Code of Illinois, makes changes concerning confidentiality regarding the Office of Executive Inspector General; makes conforming changes. Amends the Illinois Procurement Code. Provides that the exemption in the Code relating to implementing the Cannabis Regulation and Tax Act shall be 8 years (instead of 5 years) after June 25, 2019. Amends the State Finance Act. Changes the name of the Local Cannabis Consumer Excise Tax Trust Fund to the Local Cannabis Retailers' Occupation Tax Trust Fund. Amends the Retailers' Occupation Tax Act. Specifies that it is a purpose of the Act for the Department of Revenue to report certain cannabis-related tax and business district tax revenues. Amends the Counties Code and the Illinois Municipal Code. Makes changes in provisions concerning limitations on the home rule powers of counties and municipalities. Amends the Cannabis Regulation and Tax Act. Adds and makes changes to various definitions. Authorizes the Department of Agriculture and the Department of Financial and Professional Regulation to establish, by rule, certain market protections. Requires the Department of Agriculture to license cannabis laboratories. Provides for the repeal of provisions establishing cultivator taxes and craft grower taxes. Amends the Tobacco Accessories and Smoking Herbs Control Act. Deletes a provision which specifies that the sale and possession of marijuana and hashish is illegal. Makes other changes. Effective immediately. LRB103 40496 RJT 72952 b LRB103 40496 RJT 72952 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3940 Introduced 5/1/2024, by Sen. Kimberly A. Lightford SYNOPSIS AS INTRODUCED:
3	3	See Index See Index
4	4	See Index
5	5	Amends The Department of Professional Regulation Law of the Civil Administrative Code of Illinois, makes changes concerning confidentiality regarding the Office of Executive Inspector General; makes conforming changes. Amends the Illinois Procurement Code. Provides that the exemption in the Code relating to implementing the Cannabis Regulation and Tax Act shall be 8 years (instead of 5 years) after June 25, 2019. Amends the State Finance Act. Changes the name of the Local Cannabis Consumer Excise Tax Trust Fund to the Local Cannabis Retailers' Occupation Tax Trust Fund. Amends the Retailers' Occupation Tax Act. Specifies that it is a purpose of the Act for the Department of Revenue to report certain cannabis-related tax and business district tax revenues. Amends the Counties Code and the Illinois Municipal Code. Makes changes in provisions concerning limitations on the home rule powers of counties and municipalities. Amends the Cannabis Regulation and Tax Act. Adds and makes changes to various definitions. Authorizes the Department of Agriculture and the Department of Financial and Professional Regulation to establish, by rule, certain market protections. Requires the Department of Agriculture to license cannabis laboratories. Provides for the repeal of provisions establishing cultivator taxes and craft grower taxes. Amends the Tobacco Accessories and Smoking Herbs Control Act. Deletes a provision which specifies that the sale and possession of marijuana and hashish is illegal. Makes other changes. Effective immediately.
6	6	LRB103 40496 RJT 72952 b LRB103 40496 RJT 72952 b
7	7	LRB103 40496 RJT 72952 b
8	8	A BILL FOR
9	9	SB3940LRB103 40496 RJT 72952 b SB3940 LRB103 40496 RJT 72952 b
10	10	SB3940 LRB103 40496 RJT 72952 b
11	11	1 AN ACT concerning health.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Department of Professional Regulation Law
15	15	5 of the Civil Administrative Code of Illinois is amended by
16	16	6 changing Section 2105-117 as follows:
17	17	7 (20 ILCS 2105/2105-117)
18	18	8 Sec. 2105-117. Confidentiality. All information collected
19	19	9 by the Department in the course of an examination or
20	20	10 investigation of a licensee, registrant, or applicant,
21	21	11 including, but not limited to, any complaint against a
22	22	12 licensee or registrant filed with the Department and
23	23	13 information collected to investigate any such complaint, shall
24	24	14 be maintained for the confidential use of the Department and
25	25	15 shall not be disclosed. The Department may not disclose the
26	26	16 information to anyone other than law enforcement officials,
27	27	17 other regulatory agencies that have an appropriate regulatory
28	28	18 interest as determined by the Director, the Office of
29	29	19 Executive Inspector General, or a party presenting a lawful
30	30	20 subpoena to the Department. Information and documents
31	31	21 disclosed to a federal, State, county, or local law
32	32	22 enforcement agency, including the Executive Inspector General
33	33	23 shall not be disclosed by the agency for any purpose to any
34	34
35	35
36	36
37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3940 Introduced 5/1/2024, by Sen. Kimberly A. Lightford SYNOPSIS AS INTRODUCED:
38	38	See Index See Index
39	39	See Index
40	40	Amends The Department of Professional Regulation Law of the Civil Administrative Code of Illinois, makes changes concerning confidentiality regarding the Office of Executive Inspector General; makes conforming changes. Amends the Illinois Procurement Code. Provides that the exemption in the Code relating to implementing the Cannabis Regulation and Tax Act shall be 8 years (instead of 5 years) after June 25, 2019. Amends the State Finance Act. Changes the name of the Local Cannabis Consumer Excise Tax Trust Fund to the Local Cannabis Retailers' Occupation Tax Trust Fund. Amends the Retailers' Occupation Tax Act. Specifies that it is a purpose of the Act for the Department of Revenue to report certain cannabis-related tax and business district tax revenues. Amends the Counties Code and the Illinois Municipal Code. Makes changes in provisions concerning limitations on the home rule powers of counties and municipalities. Amends the Cannabis Regulation and Tax Act. Adds and makes changes to various definitions. Authorizes the Department of Agriculture and the Department of Financial and Professional Regulation to establish, by rule, certain market protections. Requires the Department of Agriculture to license cannabis laboratories. Provides for the repeal of provisions establishing cultivator taxes and craft grower taxes. Amends the Tobacco Accessories and Smoking Herbs Control Act. Deletes a provision which specifies that the sale and possession of marijuana and hashish is illegal. Makes other changes. Effective immediately.
41	41	LRB103 40496 RJT 72952 b LRB103 40496 RJT 72952 b
42	42	LRB103 40496 RJT 72952 b
43	43	A BILL FOR
44	44
45	45
46	46
47	47
48	48
49	49	See Index
50	50
51	51
52	52
53	53	LRB103 40496 RJT 72952 b
54	54
55	55
56	56
57	57
58	58
59	59
60	60
61	61
62	62
63	63	SB3940 LRB103 40496 RJT 72952 b
64	64
65	65
66	66	SB3940- 2 -LRB103 40496 RJT 72952 b SB3940 - 2 - LRB103 40496 RJT 72952 b
67	67	SB3940 - 2 - LRB103 40496 RJT 72952 b
68	68	1 other agency or person, except as necessary to those involved
69	69	2 in enforcing the State Officials and Employees Ethics Act. A
70	70	3 formal complaint filed against a licensee or registrant by the
71	71	4 Department or any order issued by the Department against a
72	72	5 licensee, registrant, or applicant shall be a public record,
73	73	6 except as otherwise prohibited by law.
74	74	7 (Source: P.A. 99-227, eff. 8-3-15.)
75	75	8 Section 10. The Illinois Procurement Code is amended by
76	76	9 changing Section 1-10 as follows:
77	77	10 (30 ILCS 500/1-10)
78	78	11 Sec. 1-10. Application.
79	79	12 (a) This Code applies only to procurements for which
80	80	13 bidders, offerors, potential contractors, or contractors were
81	81	14 first solicited on or after July 1, 1998. This Code shall not
82	82	15 be construed to affect or impair any contract, or any
83	83	16 provision of a contract, entered into based on a solicitation
84	84	17 prior to the implementation date of this Code as described in
85	85	18 Article 99, including, but not limited to, any covenant
86	86	19 entered into with respect to any revenue bonds or similar
87	87	20 instruments. All procurements for which contracts are
88	88	21 solicited between the effective date of Articles 50 and 99 and
89	89	22 July 1, 1998 shall be substantially in accordance with this
90	90	23 Code and its intent.
91	91	24 (b) This Code shall apply regardless of the source of the
92	92
93	93
94	94
95	95
96	96
97	97	SB3940 - 2 - LRB103 40496 RJT 72952 b
98	98
99	99
100	100	SB3940- 3 -LRB103 40496 RJT 72952 b SB3940 - 3 - LRB103 40496 RJT 72952 b
101	101	SB3940 - 3 - LRB103 40496 RJT 72952 b
102	102	1 funds with which the contracts are paid, including federal
103	103	2 assistance moneys. This Code shall not apply to:
104	104	3 (1) Contracts between the State and its political
105	105	4 subdivisions or other governments, or between State
106	106	5 governmental bodies, except as specifically provided in
107	107	6 this Code.
108	108	7 (2) Grants, except for the filing requirements of
109	109	8 Section 20-80.
110	110	9 (3) Purchase of care, except as provided in Section
111	111	10 5-30.6 of the Illinois Public Aid Code and this Section.
112	112	11 (4) Hiring of an individual as an employee and not as
113	113	12 an independent contractor, whether pursuant to an
114	114	13 employment code or policy or by contract directly with
115	115	14 that individual.
116	116	15 (5) Collective bargaining contracts.
117	117	16 (6) Purchase of real estate, except that notice of
118	118	17 this type of contract with a value of more than $25,000
119	119	18 must be published in the Procurement Bulletin within 10
120	120	19 calendar days after the deed is recorded in the county of
121	121	20 jurisdiction. The notice shall identify the real estate
122	122	21 purchased, the names of all parties to the contract, the
123	123	22 value of the contract, and the effective date of the
124	124	23 contract.
125	125	24 (7) Contracts necessary to prepare for anticipated
126	126	25 litigation, enforcement actions, or investigations,
127	127	26 provided that the chief legal counsel to the Governor
128	128
129	129
130	130
131	131
132	132
133	133	SB3940 - 3 - LRB103 40496 RJT 72952 b
134	134
135	135
136	136	SB3940- 4 -LRB103 40496 RJT 72952 b SB3940 - 4 - LRB103 40496 RJT 72952 b
137	137	SB3940 - 4 - LRB103 40496 RJT 72952 b
138	138	1 shall give his or her prior approval when the procuring
139	139	2 agency is one subject to the jurisdiction of the Governor,
140	140	3 and provided that the chief legal counsel of any other
141	141	4 procuring entity subject to this Code shall give his or
142	142	5 her prior approval when the procuring entity is not one
143	143	6 subject to the jurisdiction of the Governor.
144	144	7 (8) (Blank).
145	145	8 (9) Procurement expenditures by the Illinois
146	146	9 Conservation Foundation when only private funds are used.
147	147	10 (10) (Blank).
148	148	11 (11) Public-private agreements entered into according
149	149	12 to the procurement requirements of Section 20 of the
150	150	13 Public-Private Partnerships for Transportation Act and
151	151	14 design-build agreements entered into according to the
152	152	15 procurement requirements of Section 25 of the
153	153	16 Public-Private Partnerships for Transportation Act.
154	154	17 (12) (A) Contracts for legal, financial, and other
155	155	18 professional and artistic services entered into by the
156	156	19 Illinois Finance Authority in which the State of Illinois
157	157	20 is not obligated. Such contracts shall be awarded through
158	158	21 a competitive process authorized by the members of the
159	159	22 Illinois Finance Authority and are subject to Sections
160	160	23 5-30, 20-160, 50-13, 50-20, 50-35, and 50-37 of this Code,
161	161	24 as well as the final approval by the members of the
162	162	25 Illinois Finance Authority of the terms of the contract.
163	163	26 (B) Contracts for legal and financial services entered
164	164
165	165
166	166
167	167
168	168
169	169	SB3940 - 4 - LRB103 40496 RJT 72952 b
170	170
171	171
172	172	SB3940- 5 -LRB103 40496 RJT 72952 b SB3940 - 5 - LRB103 40496 RJT 72952 b
173	173	SB3940 - 5 - LRB103 40496 RJT 72952 b
174	174	1 into by the Illinois Housing Development Authority in
175	175	2 connection with the issuance of bonds in which the State
176	176	3 of Illinois is not obligated. Such contracts shall be
177	177	4 awarded through a competitive process authorized by the
178	178	5 members of the Illinois Housing Development Authority and
179	179	6 are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35,
180	180	7 and 50-37 of this Code, as well as the final approval by
181	181	8 the members of the Illinois Housing Development Authority
182	182	9 of the terms of the contract.
183	183	10 (13) Contracts for services, commodities, and
184	184	11 equipment to support the delivery of timely forensic
185	185	12 science services in consultation with and subject to the
186	186	13 approval of the Chief Procurement Officer as provided in
187	187	14 subsection (d) of Section 5-4-3a of the Unified Code of
188	188	15 Corrections, except for the requirements of Sections
189	189	16 20-60, 20-65, 20-70, and 20-160 and Article 50 of this
190	190	17 Code; however, the Chief Procurement Officer may, in
191	191	18 writing with justification, waive any certification
192	192	19 required under Article 50 of this Code. For any contracts
193	193	20 for services which are currently provided by members of a
194	194	21 collective bargaining agreement, the applicable terms of
195	195	22 the collective bargaining agreement concerning
196	196	23 subcontracting shall be followed.
197	197	24 On and after January 1, 2019, this paragraph (13),
198	198	25 except for this sentence, is inoperative.
199	199	26 (14) Contracts for participation expenditures required
200	200
201	201
202	202
203	203
204	204
205	205	SB3940 - 5 - LRB103 40496 RJT 72952 b
206	206
207	207
208	208	SB3940- 6 -LRB103 40496 RJT 72952 b SB3940 - 6 - LRB103 40496 RJT 72952 b
209	209	SB3940 - 6 - LRB103 40496 RJT 72952 b
210	210	1 by a domestic or international trade show or exhibition of
211	211	2 an exhibitor, member, or sponsor.
212	212	3 (15) Contracts with a railroad or utility that
213	213	4 requires the State to reimburse the railroad or utilities
214	214	5 for the relocation of utilities for construction or other
215	215	6 public purpose. Contracts included within this paragraph
216	216	7 (15) shall include, but not be limited to, those
217	217	8 associated with: relocations, crossings, installations,
218	218	9 and maintenance. For the purposes of this paragraph (15),
219	219	10 "railroad" means any form of non-highway ground
220	220	11 transportation that runs on rails or electromagnetic
221	221	12 guideways and "utility" means: (1) public utilities as
222	222	13 defined in Section 3-105 of the Public Utilities Act, (2)
223	223	14 telecommunications carriers as defined in Section 13-202
224	224	15 of the Public Utilities Act, (3) electric cooperatives as
225	225	16 defined in Section 3.4 of the Electric Supplier Act, (4)
226	226	17 telephone or telecommunications cooperatives as defined in
227	227	18 Section 13-212 of the Public Utilities Act, (5) rural
228	228	19 water or waste water systems with 10,000 connections or
229	229	20 less, (6) a holder as defined in Section 21-201 of the
230	230	21 Public Utilities Act, and (7) municipalities owning or
231	231	22 operating utility systems consisting of public utilities
232	232	23 as that term is defined in Section 11-117-2 of the
233	233	24 Illinois Municipal Code.
234	234	25 (16) Procurement expenditures necessary for the
235	235	26 Department of Public Health to provide the delivery of
236	236
237	237
238	238
239	239
240	240
241	241	SB3940 - 6 - LRB103 40496 RJT 72952 b
242	242
243	243
244	244	SB3940- 7 -LRB103 40496 RJT 72952 b SB3940 - 7 - LRB103 40496 RJT 72952 b
245	245	SB3940 - 7 - LRB103 40496 RJT 72952 b
246	246	1 timely newborn screening services in accordance with the
247	247	2 Newborn Metabolic Screening Act.
248	248	3 (17) Procurement expenditures necessary for the
249	249	4 Department of Agriculture, the Department of Financial and
250	250	5 Professional Regulation, the Department of Human Services,
251	251	6 and the Department of Public Health to implement the
252	252	7 Compassionate Use of Medical Cannabis Program and Opioid
253	253	8 Alternative Pilot Program requirements and ensure access
254	254	9 to medical cannabis for patients with debilitating medical
255	255	10 conditions in accordance with the Compassionate Use of
256	256	11 Medical Cannabis Program Act.
257	257	12 (18) This Code does not apply to any procurements
258	258	13 necessary for the Department of Agriculture, the
259	259	14 Department of Financial and Professional Regulation, the
260	260	15 Department of Human Services, the Department of Commerce
261	261	16 and Economic Opportunity, and the Department of Public
262	262	17 Health to implement the Cannabis Regulation and Tax Act if
263	263	18 the applicable agency has made a good faith determination
264	264	19 that it is necessary and appropriate for the expenditure
265	265	20 to fall within this exemption and if the process is
266	266	21 conducted in a manner substantially in accordance with the
267	267	22 requirements of Sections 20-160, 25-60, 30-22, 50-5,
268	268	23 50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35,
269	269	24 50-36, 50-37, 50-38, and 50-50 of this Code; however, for
270	270	25 Section 50-35, compliance applies only to contracts or
271	271	26 subcontracts over $100,000. Notice of each contract
272	272
273	273
274	274
275	275
276	276
277	277	SB3940 - 7 - LRB103 40496 RJT 72952 b
278	278
279	279
280	280	SB3940- 8 -LRB103 40496 RJT 72952 b SB3940 - 8 - LRB103 40496 RJT 72952 b
281	281	SB3940 - 8 - LRB103 40496 RJT 72952 b
282	282	1 entered into under this paragraph (18) that is related to
283	283	2 the procurement of goods and services identified in
284	284	3 paragraph (1) through (9) of this subsection shall be
285	285	4 published in the Procurement Bulletin within 14 calendar
286	286	5 days after contract execution. The Chief Procurement
287	287	6 Officer shall prescribe the form and content of the
288	288	7 notice. Each agency shall provide the Chief Procurement
289	289	8 Officer, on a monthly basis, in the form and content
290	290	9 prescribed by the Chief Procurement Officer, a report of
291	291	10 contracts that are related to the procurement of goods and
292	292	11 services identified in this subsection. At a minimum, this
293	293	12 report shall include the name of the contractor, a
294	294	13 description of the supply or service provided, the total
295	295	14 amount of the contract, the term of the contract, and the
296	296	15 exception to this Code utilized. A copy of any or all of
297	297	16 these contracts shall be made available to the Chief
298	298	17 Procurement Officer immediately upon request. The Chief
299	299	18 Procurement Officer shall submit a report to the Governor
300	300	19 and General Assembly no later than November 1 of each year
301	301	20 that includes, at a minimum, an annual summary of the
302	302	21 monthly information reported to the Chief Procurement
303	303	22 Officer. This exemption becomes inoperative 8 5 years
304	304	23 after June 25, 2019 (the effective date of Public Act
305	305	24 101-27).
306	306	25 (19) Acquisition of modifications or adjustments,
307	307	26 limited to assistive technology devices and assistive
308	308
309	309
310	310
311	311
312	312
313	313	SB3940 - 8 - LRB103 40496 RJT 72952 b
314	314
315	315
316	316	SB3940- 9 -LRB103 40496 RJT 72952 b SB3940 - 9 - LRB103 40496 RJT 72952 b
317	317	SB3940 - 9 - LRB103 40496 RJT 72952 b
318	318	1 technology services, adaptive equipment, repairs, and
319	319	2 replacement parts to provide reasonable accommodations (i)
320	320	3 that enable a qualified applicant with a disability to
321	321	4 complete the job application process and be considered for
322	322	5 the position such qualified applicant desires, (ii) that
323	323	6 modify or adjust the work environment to enable a
324	324	7 qualified current employee with a disability to perform
325	325	8 the essential functions of the position held by that
326	326	9 employee, (iii) to enable a qualified current employee
327	327	10 with a disability to enjoy equal benefits and privileges
328	328	11 of employment as are enjoyed by other similarly situated
329	329	12 employees without disabilities, and (iv) that allow a
330	330	13 customer, client, claimant, or member of the public
331	331	14 seeking State services full use and enjoyment of and
332	332	15 access to its programs, services, or benefits.
333	333	16 For purposes of this paragraph (19):
334	334	17 "Assistive technology devices" means any item, piece
335	335	18 of equipment, or product system, whether acquired
336	336	19 commercially off the shelf, modified, or customized, that
337	337	20 is used to increase, maintain, or improve functional
338	338	21 capabilities of individuals with disabilities.
339	339	22 "Assistive technology services" means any service that
340	340	23 directly assists an individual with a disability in
341	341	24 selection, acquisition, or use of an assistive technology
342	342	25 device.
343	343	26 "Qualified" has the same meaning and use as provided
344	344
345	345
346	346
347	347
348	348
349	349	SB3940 - 9 - LRB103 40496 RJT 72952 b
350	350
351	351
352	352	SB3940- 10 -LRB103 40496 RJT 72952 b SB3940 - 10 - LRB103 40496 RJT 72952 b
353	353	SB3940 - 10 - LRB103 40496 RJT 72952 b
354	354	1 under the federal Americans with Disabilities Act when
355	355	2 describing an individual with a disability.
356	356	3 (20) Procurement expenditures necessary for the
357	357	4 Illinois Commerce Commission to hire third-party
358	358	5 facilitators pursuant to Sections 16-105.17 and 16-108.18
359	359	6 of the Public Utilities Act or an ombudsman pursuant to
360	360	7 Section 16-107.5 of the Public Utilities Act, a
361	361	8 facilitator pursuant to Section 16-105.17 of the Public
362	362	9 Utilities Act, or a grid auditor pursuant to Section
363	363	10 16-105.10 of the Public Utilities Act.
364	364	11 (21) Procurement expenditures for the purchase,
365	365	12 renewal, and expansion of software, software licenses, or
366	366	13 software maintenance agreements that support the efforts
367	367	14 of the Illinois State Police to enforce, regulate, and
368	368	15 administer the Firearm Owners Identification Card Act, the
369	369	16 Firearm Concealed Carry Act, the Firearms Restraining
370	370	17 Order Act, the Firearm Dealer License Certification Act,
371	371	18 the Law Enforcement Agencies Data System (LEADS), the
372	372	19 Uniform Crime Reporting Act, the Criminal Identification
373	373	20 Act, the Illinois Uniform Conviction Information Act, and
374	374	21 the Gun Trafficking Information Act, or establish or
375	375	22 maintain record management systems necessary to conduct
376	376	23 human trafficking investigations or gun trafficking or
377	377	24 other stolen firearm investigations. This paragraph (21)
378	378	25 applies to contracts entered into on or after January 10,
379	379	26 2023 (the effective date of Public Act 102-1116) and the
380	380
381	381
382	382
383	383
384	384
385	385	SB3940 - 10 - LRB103 40496 RJT 72952 b
386	386
387	387
388	388	SB3940- 11 -LRB103 40496 RJT 72952 b SB3940 - 11 - LRB103 40496 RJT 72952 b
389	389	SB3940 - 11 - LRB103 40496 RJT 72952 b
390	390	1 renewal of contracts that are in effect on January 10,
391	391	2 2023 (the effective date of Public Act 102-1116).
392	392	3 (22) Contracts for project management services and
393	393	4 system integration services required for the completion of
394	394	5 the State's enterprise resource planning project. This
395	395	6 exemption becomes inoperative 5 years after June 7, 2023
396	396	7 (the effective date of the changes made to this Section by
397	397	8 Public Act 103-8). This paragraph (22) applies to
398	398	9 contracts entered into on or after June 7, 2023 (the
399	399	10 effective date of the changes made to this Section by
400	400	11 Public Act 103-8) and the renewal of contracts that are in
401	401	12 effect on June 7, 2023 (the effective date of the changes
402	402	13 made to this Section by Public Act 103-8).
403	403	14 (23) Procurements necessary for the Department of
404	404	15 Insurance to implement the Illinois Health Benefits
405	405	16 Exchange Law if the Department of Insurance has made a
406	406	17 good faith determination that it is necessary and
407	407	18 appropriate for the expenditure to fall within this
408	408	19 exemption. The procurement process shall be conducted in a
409	409	20 manner substantially in accordance with the requirements
410	410	21 of Sections 20-160 and 25-60 and Article 50 of this Code. A
411	411	22 copy of these contracts shall be made available to the
412	412	23 Chief Procurement Officer immediately upon request. This
413	413	24 paragraph is inoperative 5 years after June 27, 2023 (the
414	414	25 effective date of Public Act 103-103).
415	415	26 (24) (22) Contracts for public education programming,
416	416
417	417
418	418
419	419
420	420
421	421	SB3940 - 11 - LRB103 40496 RJT 72952 b
422	422
423	423
424	424	SB3940- 12 -LRB103 40496 RJT 72952 b SB3940 - 12 - LRB103 40496 RJT 72952 b
425	425	SB3940 - 12 - LRB103 40496 RJT 72952 b
426	426	1 noncommercial sustaining announcements, public service
427	427	2 announcements, and public awareness and education
428	428	3 messaging with the nonprofit trade associations of the
429	429	4 providers of those services that inform the public on
430	430	5 immediate and ongoing health and safety risks and hazards.
431	431	6 Notwithstanding any other provision of law, for contracts
432	432	7 with an annual value of more than $100,000 entered into on or
433	433	8 after October 1, 2017 under an exemption provided in any
434	434	9 paragraph of this subsection (b), except paragraph (1), (2),
435	435	10 or (5), each State agency shall post to the appropriate
436	436	11 procurement bulletin the name of the contractor, a description
437	437	12 of the supply or service provided, the total amount of the
438	438	13 contract, the term of the contract, and the exception to the
439	439	14 Code utilized. The chief procurement officer shall submit a
440	440	15 report to the Governor and General Assembly no later than
441	441	16 November 1 of each year that shall include, at a minimum, an
442	442	17 annual summary of the monthly information reported to the
443	443	18 chief procurement officer.
444	444	19 (c) This Code does not apply to the electric power
445	445	20 procurement process provided for under Section 1-75 of the
446	446	21 Illinois Power Agency Act and Section 16-111.5 of the Public
447	447	22 Utilities Act. This Code does not apply to the procurement of
448	448	23 technical and policy experts pursuant to Section 1-129 of the
449	449	24 Illinois Power Agency Act.
450	450	25 (d) Except for Section 20-160 and Article 50 of this Code,
451	451	26 and as expressly required by Section 9.1 of the Illinois
452	452
453	453
454	454
455	455
456	456
457	457	SB3940 - 12 - LRB103 40496 RJT 72952 b
458	458
459	459
460	460	SB3940- 13 -LRB103 40496 RJT 72952 b SB3940 - 13 - LRB103 40496 RJT 72952 b
461	461	SB3940 - 13 - LRB103 40496 RJT 72952 b
462	462	1 Lottery Law, the provisions of this Code do not apply to the
463	463	2 procurement process provided for under Section 9.1 of the
464	464	3 Illinois Lottery Law.
465	465	4 (e) This Code does not apply to the process used by the
466	466	5 Capital Development Board to retain a person or entity to
467	467	6 assist the Capital Development Board with its duties related
468	468	7 to the determination of costs of a clean coal SNG brownfield
469	469	8 facility, as defined by Section 1-10 of the Illinois Power
470	470	9 Agency Act, as required in subsection (h-3) of Section 9-220
471	471	10 of the Public Utilities Act, including calculating the range
472	472	11 of capital costs, the range of operating and maintenance
473	473	12 costs, or the sequestration costs or monitoring the
474	474	13 construction of clean coal SNG brownfield facility for the
475	475	14 full duration of construction.
476	476	15 (f) (Blank).
477	477	16 (g) (Blank).
478	478	17 (h) This Code does not apply to the process to procure or
479	479	18 contracts entered into in accordance with Sections 11-5.2 and
480	480	19 11-5.3 of the Illinois Public Aid Code.
481	481	20 (i) Each chief procurement officer may access records
482	482	21 necessary to review whether a contract, purchase, or other
483	483	22 expenditure is or is not subject to the provisions of this
484	484	23 Code, unless such records would be subject to attorney-client
485	485	24 privilege.
486	486	25 (j) This Code does not apply to the process used by the
487	487	26 Capital Development Board to retain an artist or work or works
488	488
489	489
490	490
491	491
492	492
493	493	SB3940 - 13 - LRB103 40496 RJT 72952 b
494	494
495	495
496	496	SB3940- 14 -LRB103 40496 RJT 72952 b SB3940 - 14 - LRB103 40496 RJT 72952 b
497	497	SB3940 - 14 - LRB103 40496 RJT 72952 b
498	498	1 of art as required in Section 14 of the Capital Development
499	499	2 Board Act.
500	500	3 (k) This Code does not apply to the process to procure
501	501	4 contracts, or contracts entered into, by the State Board of
502	502	5 Elections or the State Electoral Board for hearing officers
503	503	6 appointed pursuant to the Election Code.
504	504	7 (l) This Code does not apply to the processes used by the
505	505	8 Illinois Student Assistance Commission to procure supplies and
506	506	9 services paid for from the private funds of the Illinois
507	507	10 Prepaid Tuition Fund. As used in this subsection (l), "private
508	508	11 funds" means funds derived from deposits paid into the
509	509	12 Illinois Prepaid Tuition Trust Fund and the earnings thereon.
510	510	13 (m) This Code shall apply regardless of the source of
511	511	14 funds with which contracts are paid, including federal
512	512	15 assistance moneys. Except as specifically provided in this
513	513	16 Code, this Code shall not apply to procurement expenditures
514	514	17 necessary for the Department of Public Health to conduct the
515	515	18 Healthy Illinois Survey in accordance with Section 2310-431 of
516	516	19 the Department of Public Health Powers and Duties Law of the
517	517	20 Civil Administrative Code of Illinois.
518	518	21 (Source: P.A. 102-175, eff. 7-29-21; 102-483, eff 1-1-22;
519	519	22 102-558, eff. 8-20-21; 102-600, eff. 8-27-21; 102-662, eff.
520	520	23 9-15-21; 102-721, eff. 1-1-23; 102-813, eff. 5-13-22;
521	521	24 102-1116, eff. 1-10-23; 103-8, eff. 6-7-23; 103-103, eff.
522	522	25 6-27-23; 103-570, eff. 1-1-24; 103-580, eff. 12-8-23; revised
523	523	26 1-2-24.)
524	524
525	525
526	526
527	527
528	528
529	529	SB3940 - 14 - LRB103 40496 RJT 72952 b
530	530
531	531
532	532	SB3940- 15 -LRB103 40496 RJT 72952 b SB3940 - 15 - LRB103 40496 RJT 72952 b
533	533	SB3940 - 15 - LRB103 40496 RJT 72952 b
534	534	1 Section 15. The State Finance Act is amended by changing
535	535	2 Section 5.916 as follows:
536	536	3 (30 ILCS 105/5.916)
537	537	4 Sec. 5.916. The Local Cannabis Retailers' Occupation
538	538	5 Consumer Excise Tax Trust Fund.
539	539	6 (Source: P.A. 101-27, eff. 6-25-19; 102-558, eff. 8-20-21.)
540	540	7 Section 20. The Retailers' Occupation Tax Act is amended
541	541	8 by changing Section 11 as follows:
542	542	9 (35 ILCS 120/11) (from Ch. 120, par. 450)
543	543	10 Sec. 11. All information received by the Department from
544	544	11 returns filed under this Act, or from any investigation
545	545	12 conducted under this Act, shall be confidential, except for
546	546	13 official purposes, and any person, including a third party as
547	547	14 defined in the Local Government Revenue Recapture Act, who
548	548	15 divulges any such information in any manner, except in
549	549	16 accordance with a proper judicial order or as otherwise
550	550	17 provided by law, including the Local Government Revenue
551	551	18 Recapture Act, shall be guilty of a Class B misdemeanor with a
552	552	19 fine not to exceed $7,500.
553	553	20 Nothing in this Act prevents the Director of Revenue from
554	554	21 publishing or making available to the public the names and
555	555	22 addresses of persons filing returns under this Act, or
556	556
557	557
558	558
559	559
560	560
561	561	SB3940 - 15 - LRB103 40496 RJT 72952 b
562	562
563	563
564	564	SB3940- 16 -LRB103 40496 RJT 72952 b SB3940 - 16 - LRB103 40496 RJT 72952 b
565	565	SB3940 - 16 - LRB103 40496 RJT 72952 b
566	566	1 reasonable statistics concerning the operation of the tax by
567	567	2 grouping the contents of returns so the information in any
568	568	3 individual return is not disclosed.
569	569	4 Nothing in this Act prevents the Director of Revenue from
570	570	5 divulging to the United States Government or the government of
571	571	6 any other state, or any officer or agency thereof, for
572	572	7 exclusively official purposes, information received by the
573	573	8 Department in administering this Act, provided that such other
574	574	9 governmental agency agrees to divulge requested tax
575	575	10 information to the Department.
576	576	11 The Department's furnishing of information derived from a
577	577	12 taxpayer's return or from an investigation conducted under
578	578	13 this Act to the surety on a taxpayer's bond that has been
579	579	14 furnished to the Department under this Act, either to provide
580	580	15 notice to such surety of its potential liability under the
581	581	16 bond or, in order to support the Department's demand for
582	582	17 payment from such surety under the bond, is an official
583	583	18 purpose within the meaning of this Section.
584	584	19 The furnishing upon request of information obtained by the
585	585	20 Department from returns filed under this Act or investigations
586	586	21 conducted under this Act to the Illinois Liquor Control
587	587	22 Commission for official use is deemed to be an official
588	588	23 purpose within the meaning of this Section.
589	589	24 Notice to a surety of potential liability shall not be
590	590	25 given unless the taxpayer has first been notified, not less
591	591	26 than 10 days prior thereto, of the Department's intent to so
592	592
593	593
594	594
595	595
596	596
597	597	SB3940 - 16 - LRB103 40496 RJT 72952 b
598	598
599	599
600	600	SB3940- 17 -LRB103 40496 RJT 72952 b SB3940 - 17 - LRB103 40496 RJT 72952 b
601	601	SB3940 - 17 - LRB103 40496 RJT 72952 b
602	602	1 notify the surety.
603	603	2 The furnishing upon request of the Auditor General, or his
604	604	3 authorized agents, for official use, of returns filed and
605	605	4 information related thereto under this Act is deemed to be an
606	606	5 official purpose within the meaning of this Section.
607	607	6 Where an appeal or a protest has been filed on behalf of a
608	608	7 taxpayer, the furnishing upon request of the attorney for the
609	609	8 taxpayer of returns filed by the taxpayer and information
610	610	9 related thereto under this Act is deemed to be an official
611	611	10 purpose within the meaning of this Section.
612	612	11 The furnishing of financial information to a municipality
613	613	12 or county, upon request of the chief executive officer
614	614	13 thereof, is an official purpose within the meaning of this
615	615	14 Section, provided the municipality or county agrees in writing
616	616	15 to the requirements of this Section. Information provided to
617	617	16 municipalities and counties under this paragraph shall be
618	618	17 limited to: (1) the business name; (2) the business address;
619	619	18 (3) the standard classification number assigned to the
620	620	19 business; (4) net revenue distributed to the requesting
621	621	20 municipality or county that is directly related to the
622	622	21 requesting municipality's or county's local share of the
623	623	22 proceeds under the Use Tax Act, the Service Use Tax Act, the
624	624	23 Service Occupation Tax Act, and the Retailers' Occupation Tax
625	625	24 Act distributed from the Local Government Tax Fund, and, if
626	626	25 applicable, any locally imposed retailers' occupation tax or
627	627	26 service occupation tax; and (5) a listing of all businesses
628	628
629	629
630	630
631	631
632	632
633	633	SB3940 - 17 - LRB103 40496 RJT 72952 b
634	634
635	635
636	636	SB3940- 18 -LRB103 40496 RJT 72952 b SB3940 - 18 - LRB103 40496 RJT 72952 b
637	637	SB3940 - 18 - LRB103 40496 RJT 72952 b
638	638	1 within the requesting municipality or county by account
639	639	2 identification number and address. On and after July 1, 2015,
640	640	3 the furnishing of financial information to municipalities and
641	641	4 counties under this paragraph may be by electronic means. If
642	642	5 the Department may furnish financial information to a
643	643	6 municipality or county under this paragraph, then the chief
644	644	7 executive officer of the municipality or county may, in turn,
645	645	8 provide that financial information to a third party pursuant
646	646	9 to the Local Government Revenue Recapture Act. However, the
647	647	10 third party shall agree in writing to the requirements of this
648	648	11 Section and meet the requirements of the Local Government
649	649	12 Revenue Recapture Act.
650	650	13 Information so provided shall be subject to all
651	651	14 confidentiality provisions of this Section. The written
652	652	15 agreement shall provide for reciprocity, limitations on
653	653	16 access, disclosure, and procedures for requesting information.
654	654	17 For the purposes of furnishing financial information to a
655	655	18 municipality or county under this Section, "chief executive
656	656	19 officer" means the mayor of a city, the village board
657	657	20 president of a village, the mayor or president of an
658	658	21 incorporated town, the county executive of a county that has
659	659	22 adopted the county executive form of government, the president
660	660	23 of the board of commissioners of Cook County, or the
661	661	24 chairperson of the county board or board of county
662	662	25 commissioners of any other county.
663	663	26 The Department may make available to the Board of Trustees
664	664
665	665
666	666
667	667
668	668
669	669	SB3940 - 18 - LRB103 40496 RJT 72952 b
670	670
671	671
672	672	SB3940- 19 -LRB103 40496 RJT 72952 b SB3940 - 19 - LRB103 40496 RJT 72952 b
673	673	SB3940 - 19 - LRB103 40496 RJT 72952 b
674	674	1 of any Metro East Mass Transit District information contained
675	675	2 on transaction reporting returns required to be filed under
676	676	3 Section 3 of this Act that report sales made within the
677	677	4 boundary of the taxing authority of that Metro East Mass
678	678	5 Transit District, as provided in Section 5.01 of the Local
679	679	6 Mass Transit District Act. The disclosure shall be made
680	680	7 pursuant to a written agreement between the Department and the
681	681	8 Board of Trustees of a Metro East Mass Transit District, which
682	682	9 is an official purpose within the meaning of this Section. The
683	683	10 written agreement between the Department and the Board of
684	684	11 Trustees of a Metro East Mass Transit District shall provide
685	685	12 for reciprocity, limitations on access, disclosure, and
686	686	13 procedures for requesting information. Information so provided
687	687	14 shall be subject to all confidentiality provisions of this
688	688	15 Section.
689	689	16 The Director may make available to any State agency,
690	690	17 including the Illinois Supreme Court, which licenses persons
691	691	18 to engage in any occupation, information that a person
692	692	19 licensed by such agency has failed to file returns under this
693	693	20 Act or pay the tax, penalty and interest shown therein, or has
694	694	21 failed to pay any final assessment of tax, penalty or interest
695	695	22 due under this Act. The Director may make available to any
696	696	23 State agency, including the Illinois Supreme Court,
697	697	24 information regarding whether a bidder, contractor, or an
698	698	25 affiliate of a bidder or contractor has failed to collect and
699	699	26 remit Illinois Use tax on sales into Illinois, or any tax under
700	700
701	701
702	702
703	703
704	704
705	705	SB3940 - 19 - LRB103 40496 RJT 72952 b
706	706
707	707
708	708	SB3940- 20 -LRB103 40496 RJT 72952 b SB3940 - 20 - LRB103 40496 RJT 72952 b
709	709	SB3940 - 20 - LRB103 40496 RJT 72952 b
710	710	1 this Act or pay the tax, penalty, and interest shown therein,
711	711	2 or has failed to pay any final assessment of tax, penalty, or
712	712	3 interest due under this Act, for the limited purpose of
713	713	4 enforcing bidder and contractor certifications. The Director
714	714	5 may make available to units of local government and school
715	715	6 districts that require bidder and contractor certifications,
716	716	7 as set forth in Sections 50-11 and 50-12 of the Illinois
717	717	8 Procurement Code, information regarding whether a bidder,
718	718	9 contractor, or an affiliate of a bidder or contractor has
719	719	10 failed to collect and remit Illinois Use tax on sales into
720	720	11 Illinois, file returns under this Act, or pay the tax,
721	721	12 penalty, and interest shown therein, or has failed to pay any
722	722	13 final assessment of tax, penalty, or interest due under this
723	723	14 Act, for the limited purpose of enforcing bidder and
724	724	15 contractor certifications. For purposes of this Section, the
725	725	16 term "affiliate" means any entity that (1) directly,
726	726	17 indirectly, or constructively controls another entity, (2) is
727	727	18 directly, indirectly, or constructively controlled by another
728	728	19 entity, or (3) is subject to the control of a common entity.
729	729	20 For purposes of this Section, an entity controls another
730	730	21 entity if it owns, directly or individually, more than 10% of
731	731	22 the voting securities of that entity. As used in this Section,
732	732	23 the term "voting security" means a security that (1) confers
733	733	24 upon the holder the right to vote for the election of members
734	734	25 of the board of directors or similar governing body of the
735	735	26 business or (2) is convertible into, or entitles the holder to
736	736
737	737
738	738
739	739
740	740
741	741	SB3940 - 20 - LRB103 40496 RJT 72952 b
742	742
743	743
744	744	SB3940- 21 -LRB103 40496 RJT 72952 b SB3940 - 21 - LRB103 40496 RJT 72952 b
745	745	SB3940 - 21 - LRB103 40496 RJT 72952 b
746	746	1 receive upon its exercise, a security that confers such a
747	747	2 right to vote. A general partnership interest is a voting
748	748	3 security.
749	749	4 The Director may make available to any State agency,
750	750	5 including the Illinois Supreme Court, units of local
751	751	6 government, and school districts, information regarding
752	752	7 whether a bidder or contractor is an affiliate of a person who
753	753	8 is not collecting and remitting Illinois Use taxes for the
754	754	9 limited purpose of enforcing bidder and contractor
755	755	10 certifications.
756	756	11 The Director may also make available to the Secretary of
757	757	12 State information that a limited liability company, which has
758	758	13 filed articles of organization with the Secretary of State, or
759	759	14 corporation which has been issued a certificate of
760	760	15 incorporation by the Secretary of State has failed to file
761	761	16 returns under this Act or pay the tax, penalty and interest
762	762	17 shown therein, or has failed to pay any final assessment of
763	763	18 tax, penalty or interest due under this Act. An assessment is
764	764	19 final when all proceedings in court for review of such
765	765	20 assessment have terminated or the time for the taking thereof
766	766	21 has expired without such proceedings being instituted.
767	767	22 It is an official purpose within the meaning of this
768	768	23 Section for the Department to publicly report the aggregate
769	769	24 amount of tax revenues from a given tax return type that the
770	770	25 Department allocates from a State fund or State trust fund to
771	771	26 each unit of local government, such as the amount of the
772	772
773	773
774	774
775	775
776	776
777	777	SB3940 - 21 - LRB103 40496 RJT 72952 b
778	778
779	779
780	780	SB3940- 22 -LRB103 40496 RJT 72952 b SB3940 - 22 - LRB103 40496 RJT 72952 b
781	781	SB3940 - 22 - LRB103 40496 RJT 72952 b
782	782	1 monthly allocation to each unit of local government of
783	783	2 Municipal Cannabis Retailers' Occupation Tax, County Cannabis
784	784	3 Retailers' Occupation Tax, or Business District Retailers'
785	785	4 Occupation Tax, notwithstanding that some units of local
786	786	5 government may have as few as one retailer reporting revenues
787	787	6 for a given tax return type in any given reporting period.
788	788	7 The Director shall make available for public inspection in
789	789	8 the Department's principal office and for publication, at
790	790	9 cost, administrative decisions issued on or after January 1,
791	791	10 1995. These decisions are to be made available in a manner so
792	792	11 that the following taxpayer information is not disclosed:
793	793	12 (1) The names, addresses, and identification numbers
794	794	13 of the taxpayer, related entities, and employees.
795	795	14 (2) At the sole discretion of the Director, trade
796	796	15 secrets or other confidential information identified as
797	797	16 such by the taxpayer, no later than 30 days after receipt
798	798	17 of an administrative decision, by such means as the
799	799	18 Department shall provide by rule.
800	800	19 The Director shall determine the appropriate extent of the
801	801	20 deletions allowed in paragraph (2). In the event the taxpayer
802	802	21 does not submit deletions, the Director shall make only the
803	803	22 deletions specified in paragraph (1).
804	804	23 The Director shall make available for public inspection
805	805	24 and publication an administrative decision within 180 days
806	806	25 after the issuance of the administrative decision. The term
807	807	26 "administrative decision" has the same meaning as defined in
808	808
809	809
810	810
811	811
812	812
813	813	SB3940 - 22 - LRB103 40496 RJT 72952 b
814	814
815	815
816	816	SB3940- 23 -LRB103 40496 RJT 72952 b SB3940 - 23 - LRB103 40496 RJT 72952 b
817	817	SB3940 - 23 - LRB103 40496 RJT 72952 b
818	818	1 Section 3-101 of Article III of the Code of Civil Procedure.
819	819	2 Costs collected under this Section shall be paid into the Tax
820	820	3 Compliance and Administration Fund.
821	821	4 Nothing contained in this Act shall prevent the Director
822	822	5 from divulging information to any person pursuant to a request
823	823	6 or authorization made by the taxpayer or by an authorized
824	824	7 representative of the taxpayer.
825	825	8 The furnishing of information obtained by the Department
826	826	9 from returns filed under Public Act 101-10 to the Department
827	827	10 of Transportation for purposes of compliance with Public Act
828	828	11 101-10 regarding aviation fuel is deemed to be an official
829	829	12 purpose within the meaning of this Section.
830	830	13 The Director may make information available to the
831	831	14 Secretary of State for the purpose of administering Section
832	832	15 5-901 of the Illinois Vehicle Code.
833	833	16 (Source: P.A. 101-10, eff. 6-5-19; 101-628, eff. 6-1-20;
834	834	17 102-558, eff. 8-20-21; 102-941, eff. 7-1-22.)
835	835	18 Section 25. The Counties Code is amended by changing
836	836	19 Section 5-1009 as follows:
837	837	20 (55 ILCS 5/5-1009) (from Ch. 34, par. 5-1009)
838	838	21 Sec. 5-1009. Limitation on home rule powers. Except as
839	839	22 provided in Sections 5-1006, 5-1006.5, 5-1006.8, 5-1007, and
840	840	23 5-1008, on and after September 1, 1990, no home rule county has
841	841	24 the authority to impose, pursuant to its home rule authority,
842	842
843	843
844	844
845	845
846	846
847	847	SB3940 - 23 - LRB103 40496 RJT 72952 b
848	848
849	849
850	850	SB3940- 24 -LRB103 40496 RJT 72952 b SB3940 - 24 - LRB103 40496 RJT 72952 b
851	851	SB3940 - 24 - LRB103 40496 RJT 72952 b
852	852	1 a retailers' occupation tax, service occupation tax, use tax,
853	853	2 sales tax or other tax on the use, sale or purchase of tangible
854	854	3 personal property based on the gross receipts from such sales
855	855	4 or the selling or purchase price of said tangible personal
856	856	5 property. Notwithstanding the foregoing, this Section does not
857	857	6 preempt any home rule imposed tax such as the following: (1) a
858	858	7 tax on alcoholic beverages, whether based on gross receipts,
859	859	8 volume sold or any other measurement; (2) a tax based on the
860	860	9 number of units of cigarettes or tobacco products; (3) a tax,
861	861	10 however measured, based on the use of a hotel or motel room or
862	862	11 similar facility; (4) a tax, however measured, on the sale or
863	863	12 transfer of real property; (5) a tax, however measured, on
864	864	13 lease receipts; (6) a tax on food prepared for immediate
865	865	14 consumption and on alcoholic beverages sold by a business
866	866	15 which provides for on premise consumption of said food or
867	867	16 alcoholic beverages; or (7) other taxes not based on the
868	868	17 selling or purchase price or gross receipts from the use, sale
869	869	18 or purchase of tangible personal property, other than a tax on
870	870	19 cannabis in any of its forms, which is prohibited except as
871	871	20 otherwise provided in this Section. This Section does not
872	872	21 preempt a home rule county from imposing a tax, however
873	873	22 measured, on the use, for consideration, of a parking lot,
874	874	23 garage, or other parking facility.
875	875	24 On and after December 1, 2019, no home rule county has the
876	876	25 authority to impose, pursuant to its home rule authority, a
877	877	26 tax, however measured, on sales of aviation fuel, as defined
878	878
879	879
880	880
881	881
882	882
883	883	SB3940 - 24 - LRB103 40496 RJT 72952 b
884	884
885	885
886	886	SB3940- 25 -LRB103 40496 RJT 72952 b SB3940 - 25 - LRB103 40496 RJT 72952 b
887	887	SB3940 - 25 - LRB103 40496 RJT 72952 b
888	888	1 in Section 3 of the Retailers' Occupation Tax Act, unless the
889	889	2 tax revenue is expended for airport-related purposes. For
890	890	3 purposes of this Section, "airport-related purposes" has the
891	891	4 meaning ascribed in Section 6z-20.2 of the State Finance Act.
892	892	5 Aviation fuel shall be excluded from tax only for so long as
893	893	6 the revenue use requirements of 49 U.S.C. 47017(b) and 49
894	894	7 U.S.C. 47133 are binding on the county.
895	895	8 This Section is a limitation, pursuant to subsection (g)
896	896	9 of Section 6 of Article VII of the Illinois Constitution, on
897	897	10 the power of home rule units to tax. The changes made to this
898	898	11 Section by Public Act 101-10 are a denial and limitation of
899	899	12 home rule powers and functions under subsection (g) of Section
900	900	13 6 of Article VII of the Illinois Constitution.
901	901	14 (Source: P.A. 101-10, eff. 6-5-19; 101-27, eff. 6-25-19;
902	902	15 102-558, eff. 8-20-21.)
903	903	16 Section 30. The Illinois Municipal Code is amended by
904	904	17 changing Section 8-11-6a as follows:
905	905	18 (65 ILCS 5/8-11-6a) (from Ch. 24, par. 8-11-6a)
906	906	19 Sec. 8-11-6a. Home rule municipalities; preemption of
907	907	20 certain taxes. Except as provided in Sections 8-11-1, 8-11-5,
908	908	21 8-11-6, 8-11-6b, 8-11-6c, 8-11-23, and 11-74.3-6 on and after
909	909	22 September 1, 1990, no home rule municipality has the authority
910	910	23 to impose, pursuant to its home rule authority, a retailer's
911	911	24 occupation tax, service occupation tax, use tax, sales tax or
912	912
913	913
914	914
915	915
916	916
917	917	SB3940 - 25 - LRB103 40496 RJT 72952 b
918	918
919	919
920	920	SB3940- 26 -LRB103 40496 RJT 72952 b SB3940 - 26 - LRB103 40496 RJT 72952 b
921	921	SB3940 - 26 - LRB103 40496 RJT 72952 b
922	922	1 other tax on the use, sale or purchase of tangible personal
923	923	2 property based on the gross receipts from such sales or the
924	924	3 selling or purchase price of said tangible personal property.
925	925	4 Notwithstanding the foregoing, this Section does not preempt
926	926	5 any home rule imposed tax such as the following: (1) a tax on
927	927	6 alcoholic beverages, whether based on gross receipts, volume
928	928	7 sold or any other measurement; (2) a tax based on the number of
929	929	8 units of cigarettes or tobacco products (provided, however,
930	930	9 that a home rule municipality that has not imposed a tax based
931	931	10 on the number of units of cigarettes or tobacco products
932	932	11 before July 1, 1993, shall not impose such a tax after that
933	933	12 date); (3) a tax, however measured, based on the use of a hotel
934	934	13 or motel room or similar facility; (4) a tax, however
935	935	14 measured, on the sale or transfer of real property; (5) a tax,
936	936	15 however measured, on lease receipts; (6) a tax on food
937	937	16 prepared for immediate consumption and on alcoholic beverages
938	938	17 sold by a business which provides for on premise consumption
939	939	18 of said food or alcoholic beverages; or (7) other taxes not
940	940	19 based on the selling or purchase price or gross receipts from
941	941	20 the use, sale or purchase of tangible personal property, other
942	942	21 than a tax on cannabis in any of its forms, which is prohibited
943	943	22 except as otherwise provided in this Section. This Section
944	944	23 does not preempt a home rule municipality with a population of
945	945	24 more than 2,000,000 from imposing a tax, however measured, on
946	946	25 the use, for consideration, of a parking lot, garage, or other
947	947	26 parking facility. This Section is not intended to affect any
948	948
949	949
950	950
951	951
952	952
953	953	SB3940 - 26 - LRB103 40496 RJT 72952 b
954	954
955	955
956	956	SB3940- 27 -LRB103 40496 RJT 72952 b SB3940 - 27 - LRB103 40496 RJT 72952 b
957	957	SB3940 - 27 - LRB103 40496 RJT 72952 b
958	958	1 existing tax on food and beverages prepared for immediate
959	959	2 consumption on the premises where the sale occurs, or any
960	960	3 existing tax on alcoholic beverages, or any existing tax
961	961	4 imposed on the charge for renting a hotel or motel room, which
962	962	5 was in effect January 15, 1988, or any extension of the
963	963	6 effective date of such an existing tax by ordinance of the
964	964	7 municipality imposing the tax, which extension is hereby
965	965	8 authorized, in any non-home rule municipality in which the
966	966	9 imposition of such a tax has been upheld by judicial
967	967	10 determination, nor is this Section intended to preempt the
968	968	11 authority granted by Public Act 85-1006. On and after December
969	969	12 1, 2019, no home rule municipality has the authority to
970	970	13 impose, pursuant to its home rule authority, a tax, however
971	971	14 measured, on sales of aviation fuel, as defined in Section 3 of
972	972	15 the Retailers' Occupation Tax Act, unless the tax is not
973	973	16 subject to the revenue use requirements of 49 U.S.C. 47107(b)
974	974	17 and 49 U.S.C. 47133, or unless the tax revenue is expended for
975	975	18 airport-related purposes. For purposes of this Section,
976	976	19 "airport-related purposes" has the meaning ascribed in Section
977	977	20 6z-20.2 of the State Finance Act. Aviation fuel shall be
978	978	21 excluded from tax only if, and for so long as, the revenue use
979	979	22 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
980	980	23 binding on the municipality. This Section is a limitation,
981	981	24 pursuant to subsection (g) of Section 6 of Article VII of the
982	982	25 Illinois Constitution, on the power of home rule units to tax.
983	983	26 The changes made to this Section by Public Act 101-10 are a
984	984
985	985
986	986
987	987
988	988
989	989	SB3940 - 27 - LRB103 40496 RJT 72952 b
990	990
991	991
992	992	SB3940- 28 -LRB103 40496 RJT 72952 b SB3940 - 28 - LRB103 40496 RJT 72952 b
993	993	SB3940 - 28 - LRB103 40496 RJT 72952 b
994	994	1 denial and limitation of home rule powers and functions under
995	995	2 subsection (g) of Section 6 of Article VII of the Illinois
996	996	3 Constitution.
997	997	4 (Source: P.A. 101-10, eff. 6-5-19; 101-27, eff. 6-25-19;
998	998	5 101-593, eff. 12-4-19.)
999	999	6 Section 35. The Compassionate Use of Medical Cannabis
1000	1000	7 Program Act is amended by changing Sections 145 and 210 as
1001	1001	8 follows:
1002	1002	9 (410 ILCS 130/145)
1003	1003	10 Sec. 145. Confidentiality.
1004	1004	11 (a) The following information received and records kept by
1005	1005	12 the Department of Public Health, Department of Financial and
1006	1006	13 Professional Regulation, Department of Agriculture, or
1007	1007	14 Illinois State Police, or Department of Commerce and Economic
1008	1008	15 Opportunity for purposes of administering this Act are subject
1009	1009	16 to all applicable federal privacy laws, confidential, and
1010	1010	17 exempt from the Freedom of Information Act, and not subject to
1011	1011	18 disclosure to any individual or public or private entity,
1012	1012	19 except as necessary for authorized employees of those
1013	1013	20 authorized agencies to perform official duties under this Act
1014	1014	21 and except as necessary to those involved in enforcing the
1015	1015	22 State Officials and Employees Ethics Act, and the following
1016	1016	23 information received and records kept by Department of Public
1017	1017	24 Health, Department of Agriculture, Department of Financial and
1018	1018
1019	1019
1020	1020
1021	1021
1022	1022
1023	1023	SB3940 - 28 - LRB103 40496 RJT 72952 b
1024	1024
1025	1025
1026	1026	SB3940- 29 -LRB103 40496 RJT 72952 b SB3940 - 29 - LRB103 40496 RJT 72952 b
1027	1027	SB3940 - 29 - LRB103 40496 RJT 72952 b
1028	1028	1 Professional Regulation, Department of Commerce and Economic
1029	1029	2 Opportunity, and Illinois State Police, excluding any existing
1030	1030	3 or non-existing Illinois or national criminal history record
1031	1031	4 information as defined in subsection (d), may be disclosed to
1032	1032	5 each other upon request:
1033	1033	6 (1) Applications and renewals, their contents, and all
1034	1034	7 supporting information submitted by qualifying patients
1035	1035	8 and designated caregivers, including information regarding
1036	1036	9 their designated caregivers and certifying health care
1037	1037	10 professionals.
1038	1038	11 (2) Applications and renewals, their contents, and all
1039	1039	12 supporting information submitted by or on behalf of
1040	1040	13 cultivation centers and dispensing organizations in
1041	1041	14 compliance with this Act, including their physical
1042	1042	15 addresses. This does not preclude the release of ownership
1043	1043	16 information of cannabis business establishment licenses.
1044	1044	17 (3) The individual names and other information
1045	1045	18 identifying persons to whom the Department of Public
1046	1046	19 Health has issued registry identification cards.
1047	1047	20 (4) Any dispensing information required to be kept
1048	1048	21 under Section 135, Section 150, or Department of Public
1049	1049	22 Health, Department of Agriculture, or Department of
1050	1050	23 Financial and Professional Regulation rules shall identify
1051	1051	24 cardholders and registered cultivation centers by their
1052	1052	25 registry identification numbers and medical cannabis
1053	1053	26 dispensing organizations by their registration number and
1054	1054
1055	1055
1056	1056
1057	1057
1058	1058
1059	1059	SB3940 - 29 - LRB103 40496 RJT 72952 b
1060	1060
1061	1061
1062	1062	SB3940- 30 -LRB103 40496 RJT 72952 b SB3940 - 30 - LRB103 40496 RJT 72952 b
1063	1063	SB3940 - 30 - LRB103 40496 RJT 72952 b
1064	1064	1 not contain names or other personally identifying
1065	1065	2 information.
1066	1066	3 (5) All medical records provided to the Department of
1067	1067	4 Public Health in connection with an application for a
1068	1068	5 registry card.
1069	1069	6 (b) Nothing in this Section precludes the following:
1070	1070	7 (1) Department of Agriculture, Department of Financial
1071	1071	8 and Professional Regulation, or Public Health employees
1072	1072	9 may notify law enforcement about falsified or fraudulent
1073	1073	10 information submitted to the Departments if the employee
1074	1074	11 who suspects that falsified or fraudulent information has
1075	1075	12 been submitted conferred with his or her supervisor and
1076	1076	13 both agree that circumstances exist that warrant
1077	1077	14 reporting.
1078	1078	15 (2) If the employee conferred with his or her
1079	1079	16 supervisor and both agree that circumstances exist that
1080	1080	17 warrant reporting, Department of Public Health employees
1081	1081	18 may notify the Department of Financial and Professional
1082	1082	19 Regulation if there is reasonable cause to believe a
1083	1083	20 certifying health care professional:
1084	1084	21 (A) issued a written certification without a bona
1085	1085	22 fide health care professional-patient relationship
1086	1086	23 under this Act;
1087	1087	24 (B) issued a written certification to a person who
1088	1088	25 was not under the certifying health care
1089	1089	26 professional's care for the debilitating medical
1090	1090
1091	1091
1092	1092
1093	1093
1094	1094
1095	1095	SB3940 - 30 - LRB103 40496 RJT 72952 b
1096	1096
1097	1097
1098	1098	SB3940- 31 -LRB103 40496 RJT 72952 b SB3940 - 31 - LRB103 40496 RJT 72952 b
1099	1099	SB3940 - 31 - LRB103 40496 RJT 72952 b
1100	1100	1 condition; or
1101	1101	2 (C) failed to abide by the acceptable and
1102	1102	3 prevailing standard of care when evaluating a
1103	1103	4 patient's medical condition.
1104	1104	5 (3) The Department of Public Health, Department of
1105	1105	6 Agriculture, and Department of Financial and Professional
1106	1106	7 Regulation may notify State or local law enforcement about
1107	1107	8 apparent criminal violations of this Act if the employee
1108	1108	9 who suspects the offense has conferred with his or her
1109	1109	10 supervisor and both agree that circumstances exist that
1110	1110	11 warrant reporting.
1111	1111	12 (4) Medical cannabis cultivation center agents and
1112	1112	13 medical cannabis dispensing organizations may notify the
1113	1113	14 Department of Public Health, Department of Financial and
1114	1114	15 Professional Regulation, or Department of Agriculture of a
1115	1115	16 suspected violation or attempted violation of this Act or
1116	1116	17 the rules issued under it.
1117	1117	18 (5) Each Department may verify registry identification
1118	1118	19 cards under Section 150.
1119	1119	20 (6) The submission of the report to the General
1120	1120	21 Assembly under Section 160.
1121	1121	22 (b-5) Each Department responsible for licensure under this
1122	1122	23 Act shall publish on the Department's website a list of the
1123	1123	24 ownership information of cannabis business establishment
1124	1124	25 licensees under the Department's jurisdiction. The list shall
1125	1125	26 include, but shall not be limited to, the name of the person or
1126	1126
1127	1127
1128	1128
1129	1129
1130	1130
1131	1131	SB3940 - 31 - LRB103 40496 RJT 72952 b
1132	1132
1133	1133
1134	1134	SB3940- 32 -LRB103 40496 RJT 72952 b SB3940 - 32 - LRB103 40496 RJT 72952 b
1135	1135	SB3940 - 32 - LRB103 40496 RJT 72952 b
1136	1136	1 entity holding each cannabis business establishment license
1137	1137	2 and the address at which the entity is operating under this
1138	1138	3 Act. This list shall be published and updated monthly.
1139	1139	4 (c) Except for any ownership information released pursuant
1140	1140	5 to subsection (b-5) or as otherwise authorized or required by
1141	1141	6 law, it is a Class B misdemeanor with a $1,000 fine for any
1142	1142	7 person, including an employee or official of the Department of
1143	1143	8 Public Health, Department of Financial and Professional
1144	1144	9 Regulation, or Department of Agriculture or another State
1145	1145	10 agency or local government, to breach the confidentiality of
1146	1146	11 information obtained under this Act.
1147	1147	12 (d) The Department of Public Health, the Department of
1148	1148	13 Agriculture, the Illinois State Police, and the Department of
1149	1149	14 Financial and Professional Regulation shall not share or
1150	1150	15 disclose any existing or non-existing Illinois or national
1151	1151	16 criminal history record information. For the purposes of this
1152	1152	17 Section, "any existing or non-existing Illinois or national
1153	1153	18 criminal history record information" means any Illinois or
1154	1154	19 national criminal history record information, including but
1155	1155	20 not limited to the lack of or non-existence of these records.
1156	1156	21 (Source: P.A. 101-363, eff. 8-9-19; 102-98, eff. 7-15-21;
1157	1157	22 102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)
1158	1158	23 (410 ILCS 130/210)
1159	1159	24 Sec. 210. Returns.
1160	1160	25 (a) This subsection (a) applies to returns due on or
1161	1161
1162	1162
1163	1163
1164	1164
1165	1165
1166	1166	SB3940 - 32 - LRB103 40496 RJT 72952 b
1167	1167
1168	1168
1169	1169	SB3940- 33 -LRB103 40496 RJT 72952 b SB3940 - 33 - LRB103 40496 RJT 72952 b
1170	1170	SB3940 - 33 - LRB103 40496 RJT 72952 b
1171	1171	1 before June 25, 2019 the effective date of this amendatory Act
1172	1172	2 of the 101st General Assembly. On or before the twentieth day
1173	1173	3 of each calendar month, every person subject to the tax
1174	1174	4 imposed under this Law during the preceding calendar month
1175	1175	5 shall file a return with the Department, stating:
1176	1176	6 (1) The name of the taxpayer;
1177	1177	7 (2) The number of ounces of medical cannabis sold to a
1178	1178	8 dispensing organization or a registered qualifying patient
1179	1179	9 during the preceding calendar month;
1180	1180	10 (3) The amount of tax due;
1181	1181	11 (4) The signature of the taxpayer; and
1182	1182	12 (5) Such other reasonable information as the
1183	1183	13 Department may require.
1184	1184	14 If a taxpayer fails to sign a return within 30 days after
1185	1185	15 the proper notice and demand for signature by the Department,
1186	1186	16 the return shall be considered valid and any amount shown to be
1187	1187	17 due on the return shall be deemed assessed.
1188	1188	18 The taxpayer shall remit the amount of the tax due to the
1189	1189	19 Department at the time the taxpayer files his or her return.
1190	1190	20 (b) Beginning on June 25, 2019 the effective date of this
1191	1191	21 amendatory Act of the 101st General Assembly, Section 60-20
1192	1192	22 65-20 of the Cannabis Regulation and Tax Act shall apply to
1193	1193	23 returns filed and taxes paid under this Act to the same extent
1194	1194	24 as if those provisions were set forth in full in this Section.
1195	1195	25 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
1196	1196
1197	1197
1198	1198
1199	1199
1200	1200
1201	1201	SB3940 - 33 - LRB103 40496 RJT 72952 b
1202	1202
1203	1203
1204	1204	SB3940- 34 -LRB103 40496 RJT 72952 b SB3940 - 34 - LRB103 40496 RJT 72952 b
1205	1205	SB3940 - 34 - LRB103 40496 RJT 72952 b
1206	1206	1 Section 40. The Cannabis Regulation and Tax Act is amended
1207	1207	2 by changing Sections 1-10, 5-10, 5-15, 7-10, 7-15, 10-15,
1208	1208	3 15-25, 15-35, 15-35.10, 15-40, 15-50, 15-70, 20-15, 20-30,
1209	1209	4 20-35, 20-45, 25-35, 30-30, 30-35, 30-45, 35-25, 35-30, 45-5,
1210	1210	5 50-5, 55-30, 55-65, 60-10, 65-10, 65-38, and 65-42 and by
1211	1211	6 adding Sections 20-32, 30-31, and 30-32 as follows:
1212	1212	7 (410 ILCS 705/1-10)
1213	1213	8 Sec. 1-10. Definitions. In this Act:
1214	1214	9 "Adult Use Cultivation Center License" means a license
1215	1215	10 issued by the Department of Agriculture that permits a person
1216	1216	11 to act as a cultivation center under this Act and any
1217	1217	12 administrative rule made in furtherance of this Act.
1218	1218	13 "Adult Use Dispensing Organization License" means a
1219	1219	14 license issued by the Department of Financial and Professional
1220	1220	15 Regulation that permits a person to act as a dispensing
1221	1221	16 organization under this Act and any administrative rule made
1222	1222	17 in furtherance of this Act.
1223	1223	18 "Advertise" means to engage in promotional activities
1224	1224	19 including, but not limited to: newspaper, radio, Internet and
1225	1225	20 electronic media, and television advertising; the distribution
1226	1226	21 of fliers and circulars; billboard advertising; and the
1227	1227	22 display of window and interior signs. "Advertise" does not
1228	1228	23 mean exterior signage displaying only the name of the licensed
1229	1229	24 cannabis business establishment.
1230	1230	25 "Application points" means the number of points a
1231	1231
1232	1232
1233	1233
1234	1234
1235	1235
1236	1236	SB3940 - 34 - LRB103 40496 RJT 72952 b
1237	1237
1238	1238
1239	1239	SB3940- 35 -LRB103 40496 RJT 72952 b SB3940 - 35 - LRB103 40496 RJT 72952 b
1240	1240	SB3940 - 35 - LRB103 40496 RJT 72952 b
1241	1241	1 Dispensary Applicant receives on an application for a
1242	1242	2 Conditional Adult Use Dispensing Organization License.
1243	1243	3 "BLS Region" means a region in Illinois used by the United
1244	1244	4 States Bureau of Labor Statistics to gather and categorize
1245	1245	5 certain employment and wage data. The 17 such regions in
1246	1246	6 Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
1247	1247	7 Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
1248	1248	8 Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
1249	1249	9 Rockford, St. Louis, Springfield, Northwest Illinois
1250	1250	10 nonmetropolitan area, West Central Illinois nonmetropolitan
1251	1251	11 area, East Central Illinois nonmetropolitan area, and South
1252	1252	12 Illinois nonmetropolitan area.
1253	1253	13 (1) Bloomington (DeWitt County; McLean County),
1254	1254	14 (2) Cape Girardeau (Alexander County),
1255	1255	15 (3) Carbondale-Marion (Jackson County; Williamson
1256	1256	16 County),
1257	1257	17 (4) Champaign-Urbana (Champaign County; Ford County;
1258	1258	18 Piatt County),
1259	1259	19 (5) Chicago-Naperville-Elgin (Cook County; DeKalb
1260	1260	20 County; DuPage County; Grundy County; Kane County; Kendall
1261	1261	21 County; Lake County; McHenry County; Will County),
1262	1262	22 (6) Danville (Vermilion County),
1263	1263	23 (7) Davenport-Moline-Rock Island (Henry County; Mercer
1264	1264	24 County; Rock Island County),
1265	1265	25 (8) Decatur (Macon County),
1266	1266	26 (9) Kankakee (Kankakee County),
1267	1267
1268	1268
1269	1269
1270	1270
1271	1271
1272	1272	SB3940 - 35 - LRB103 40496 RJT 72952 b
1273	1273
1274	1274
1275	1275	SB3940- 36 -LRB103 40496 RJT 72952 b SB3940 - 36 - LRB103 40496 RJT 72952 b
1276	1276	SB3940 - 36 - LRB103 40496 RJT 72952 b
1277	1277	1 (10) Peoria (Marshall County; Peoria County; Stark
1278	1278	2 County; Tazewell County; Woodford County),
1279	1279	3 (11) Rockford (Boone County; Winnebago County),
1280	1280	4 (12) St. Louis (Bond County; Calhoun County; Clinton
1281	1281	5 County; Jersey County; Madison County; Macoupin County;
1282	1282	6 Monroe County; St. Clair County),
1283	1283	7 (13) Springfield (Menard County; Sangamon County),
1284	1284	8 (14) Northwest Illinois nonmetropolitan area (Bureau
1285	1285	9 County; Carroll County; Jo Daviess County; LaSalle County;
1286	1286	10 Lee County; Ogle County; Putnam County; Stephenson County;
1287	1287	11 Whiteside County),
1288	1288	12 (15) West Central Illinois nonmetropolitan area (Adams
1289	1289	13 County; Brown County; Cass County; Christian County;
1290	1290	14 Fulton County; Greene County; Hancock County; Henderson
1291	1291	15 County; Knox County; Livingston County; Logan County;
1292	1292	16 Mason County; McDonough County; Montgomery County; Morgan
1293	1293	17 County; Moultrie County; Pike County; Schuyler County;
1294	1294	18 Scott County; Shelby County; Warren County),
1295	1295	19 (16) East Central Illinois nonmetropolitan area (Clark
1296	1296	20 County; Clay County; Coles County; Crawford County;
1297	1297	21 Cumberland County; Douglas County; Edgar County; Effingham
1298	1298	22 County; Fayette County; Iroquois County; Jasper County;
1299	1299	23 Lawrence County; Marion County; Richland County), and
1300	1300	24 (17) South Illinois nonmetropolitan area (Edwards
1301	1301	25 County; Franklin County; Gallatin County; Hamilton County;
1302	1302	26 Hardin County; Jefferson County; Johnson County; Massac
1303	1303
1304	1304
1305	1305
1306	1306
1307	1307
1308	1308	SB3940 - 36 - LRB103 40496 RJT 72952 b
1309	1309
1310	1310
1311	1311	SB3940- 37 -LRB103 40496 RJT 72952 b SB3940 - 37 - LRB103 40496 RJT 72952 b
1312	1312	SB3940 - 37 - LRB103 40496 RJT 72952 b
1313	1313	1 County; Perry County; Pope County; Pulaski County;
1314	1314	2 Randolph County; Saline County; Union County; Wabash
1315	1315	3 County; Wayne County; White County).
1316	1316	4 "By lot" means a randomized method of choosing between 2
1317	1317	5 or more Eligible Tied Applicants or 2 or more Qualifying
1318	1318	6 Applicants.
1319	1319	7 "Cannabis" means marijuana, hashish, and other substances
1320	1320	8 that are identified as including any parts of the plant
1321	1321	9 Cannabis sativa and including derivatives or subspecies, such
1322	1322	10 as indica, of all strains of cannabis, whether growing or not;
1323	1323	11 the seeds thereof, the resin extracted from any part of the
1324	1324	12 plant; and any compound, manufacture, salt, derivative,
1325	1325	13 mixture, or preparation of the plant, its seeds, or resin,
1326	1326	14 including tetrahydrocannabinol (THC) and all other naturally
1327	1327	15 produced cannabinol derivatives, whether produced directly or
1328	1328	16 indirectly by extraction; however, "cannabis" does not include
1329	1329	17 the mature stalks of the plant, fiber produced from the
1330	1330	18 stalks, oil or cake made from the seeds of the plant, any other
1331	1331	19 compound, manufacture, salt, derivative, mixture, or
1332	1332	20 preparation of the mature stalks (except the resin extracted
1333	1333	21 from it), fiber, oil or cake, or the sterilized seed of the
1334	1334	22 plant that is incapable of germination. "Cannabis" does not
1335	1335	23 include industrial hemp as defined and authorized under the
1336	1336	24 Industrial Hemp Act. "Cannabis" also means cannabis flower,
1337	1337	25 concentrate, and cannabis-infused products.
1338	1338	26 "Cannabis business establishment" means a cultivation
1339	1339
1340	1340
1341	1341
1342	1342
1343	1343
1344	1344	SB3940 - 37 - LRB103 40496 RJT 72952 b
1345	1345
1346	1346
1347	1347	SB3940- 38 -LRB103 40496 RJT 72952 b SB3940 - 38 - LRB103 40496 RJT 72952 b
1348	1348	SB3940 - 38 - LRB103 40496 RJT 72952 b
1349	1349	1 center, craft grower, processing organization, infuser
1350	1350	2 organization, dispensing organization, or transporting
1351	1351	3 organization.
1352	1352	4 "Cannabis concentrate" means a product derived from
1353	1353	5 cannabis that is produced by extracting cannabinoids,
1354	1354	6 including tetrahydrocannabinol (THC), from the plant through
1355	1355	7 the use of propylene glycol, glycerin, butter, olive oil, or
1356	1356	8 other typical cooking fats; water, ice, or dry ice; or butane,
1357	1357	9 propane, CO2, ethanol, or isopropanol and with the intended
1358	1358	10 use of smoking or making a cannabis-infused product. The use
1359	1359	11 of any other solvent is expressly prohibited unless and until
1360	1360	12 it is approved by the Department of Agriculture.
1361	1361	13 "Cannabis container" means a sealed or resealable,
1362	1362	14 traceable, container, or package used for the purpose of
1363	1363	15 containment of cannabis or cannabis-infused product during
1364	1364	16 transportation.
1365	1365	17 "Cannabis flower" means marijuana, hashish, and other
1366	1366	18 substances that are identified as including any parts of the
1367	1367	19 plant Cannabis sativa and including derivatives or subspecies,
1368	1368	20 such as indica, of all strains of cannabis; including raw
1369	1369	21 kief, leaves, and buds, but not resin that has been extracted
1370	1370	22 from any part of such plant; nor any compound, manufacture,
1371	1371	23 salt, derivative, mixture, or preparation of such plant, its
1372	1372	24 seeds, or resin.
1373	1373	25 "Cannabis-infused product" means a beverage, food, oil,
1374	1374	26 ointment, tincture, topical formulation, or another product
1375	1375
1376	1376
1377	1377
1378	1378
1379	1379
1380	1380	SB3940 - 38 - LRB103 40496 RJT 72952 b
1381	1381
1382	1382
1383	1383	SB3940- 39 -LRB103 40496 RJT 72952 b SB3940 - 39 - LRB103 40496 RJT 72952 b
1384	1384	SB3940 - 39 - LRB103 40496 RJT 72952 b
1385	1385	1 containing cannabis or cannabis concentrate that is not
1386	1386	2 intended to be smoked.
1387	1387	3 "Cannabis paraphernalia" means equipment, products, or
1388	1388	4 materials intended to be used for planting, propagating,
1389	1389	5 cultivating, growing, harvesting, manufacturing, producing,
1390	1390	6 processing, preparing, testing, analyzing, packaging,
1391	1391	7 repackaging, storing, containing, concealing, ingesting, or
1392	1392	8 otherwise introducing cannabis into the human body.
1393	1393	9 "Cannabis plant monitoring system" or "plant monitoring
1394	1394	10 system" means a system that includes, but is not limited to,
1395	1395	11 testing and data collection established and maintained by the
1396	1396	12 cultivation center, craft grower, or infuser processing
1397	1397	13 organization and that is available to the Department of
1398	1398	14 Revenue, the Department of Agriculture, the Department of
1399	1399	15 Financial and Professional Regulation, and the Illinois State
1400	1400	16 Police for the purposes of documenting each cannabis plant and
1401	1401	17 monitoring plant development throughout the life cycle of a
1402	1402	18 cannabis plant cultivated for the intended use by a customer
1403	1403	19 from seed planting to final packaging.
1404	1404	20 "Cannabis testing facility" means an entity registered by
1405	1405	21 the Department of Agriculture to test cannabis for potency and
1406	1406	22 contaminants. Licensed cannabis testing facilities are
1407	1407	23 authorized under this Act to transport cannabis from licensed
1408	1408	24 cannabis business establishments to the licensed cannabis
1409	1409	25 testing facility and are exempt from the transporting
1410	1410	26 organization license requirements.
1411	1411
1412	1412
1413	1413
1414	1414
1415	1415
1416	1416	SB3940 - 39 - LRB103 40496 RJT 72952 b
1417	1417
1418	1418
1419	1419	SB3940- 40 -LRB103 40496 RJT 72952 b SB3940 - 40 - LRB103 40496 RJT 72952 b
1420	1420	SB3940 - 40 - LRB103 40496 RJT 72952 b
1421	1421	1 "Clone" means a plant section from a female cannabis plant
1422	1422	2 not yet rootbound, growing in a water solution or other
1423	1423	3 propagation matrix, that is capable of developing into a new
1424	1424	4 plant.
1425	1425	5 "Community College Cannabis Vocational Training Pilot
1426	1426	6 Program faculty participant" means a person who is 21 years of
1427	1427	7 age or older, licensed by the Department of Agriculture, and
1428	1428	8 is employed or contracted by an Illinois community college to
1429	1429	9 provide student instruction using cannabis plants at an
1430	1430	10 Illinois Community College.
1431	1431	11 "Community College Cannabis Vocational Training Pilot
1432	1432	12 Program faculty participant Agent Identification Card" means a
1433	1433	13 document issued by the Department of Agriculture that
1434	1434	14 identifies a person as a Community College Cannabis Vocational
1435	1435	15 Training Pilot Program faculty participant.
1436	1436	16 "Conditional Adult Use Dispensing Organization License"
1437	1437	17 means a contingent license awarded to applicants for an Adult
1438	1438	18 Use Dispensing Organization License that reserves the right to
1439	1439	19 an Adult Use Dispensing Organization License if the applicant
1440	1440	20 meets certain conditions described in this Act, but does not
1441	1441	21 entitle the recipient to begin purchasing or selling cannabis
1442	1442	22 or cannabis-infused products.
1443	1443	23 "Conditional Adult Use Cultivation Center License" means a
1444	1444	24 license awarded to top-scoring applicants for an Adult Use
1445	1445	25 Cultivation Center License that reserves the right to an Adult
1446	1446	26 Use Cultivation Center License if the applicant meets certain
1447	1447
1448	1448
1449	1449
1450	1450
1451	1451
1452	1452	SB3940 - 40 - LRB103 40496 RJT 72952 b
1453	1453
1454	1454
1455	1455	SB3940- 41 -LRB103 40496 RJT 72952 b SB3940 - 41 - LRB103 40496 RJT 72952 b
1456	1456	SB3940 - 41 - LRB103 40496 RJT 72952 b
1457	1457	1 conditions as determined by the Department of Agriculture by
1458	1458	2 rule, but does not entitle the recipient to begin growing,
1459	1459	3 processing, or selling cannabis or cannabis-infused products.
1460	1460	4 "Craft grower" means a facility operated by an
1461	1461	5 organization or business that is licensed by the Department of
1462	1462	6 Agriculture to cultivate, dry, cure, and package cannabis and
1463	1463	7 perform other necessary activities to make cannabis available
1464	1464	8 for sale at a dispensing organization or use at an infuser a
1465	1465	9 processing organization. A craft grower may contain up to
1466	1466	10 5,000 square feet of canopy space on its premises for plants in
1467	1467	11 the flowering state. The Department of Agriculture may
1468	1468	12 authorize an increase or decrease of flowering stage
1469	1469	13 cultivation space in increments of 3,000 square feet by rule
1470	1470	14 based on market need, craft grower capacity, and the
1471	1471	15 licensee's history of compliance or noncompliance, with a
1472	1472	16 maximum space of 14,000 square feet for cultivating plants in
1473	1473	17 the flowering stage, which must be cultivated in all stages of
1474	1474	18 growth in an enclosed and secure area. A craft grower may share
1475	1475	19 premises with an infuser a processing organization or a
1476	1476	20 dispensing organization, or both, provided each licensee
1477	1477	21 stores currency and cannabis or cannabis-infused products in a
1478	1478	22 separate secured vault to which the other licensee does not
1479	1479	23 have access or all licensees sharing a vault share more than
1480	1480	24 50% of the same ownership.
1481	1481	25 "Craft grower agent" means a principal officer, board
1482	1482	26 member, employee, or other agent of a craft grower who is 21
1483	1483
1484	1484
1485	1485
1486	1486
1487	1487
1488	1488	SB3940 - 41 - LRB103 40496 RJT 72952 b
1489	1489
1490	1490
1491	1491	SB3940- 42 -LRB103 40496 RJT 72952 b SB3940 - 42 - LRB103 40496 RJT 72952 b
1492	1492	SB3940 - 42 - LRB103 40496 RJT 72952 b
1493	1493	1 years of age or older.
1494	1494	2 "Craft Grower Agent Identification Card" means a document
1495	1495	3 issued by the Department of Agriculture that identifies a
1496	1496	4 person as a craft grower agent.
1497	1497	5 "Cultivation center" means a facility operated by an
1498	1498	6 organization or business that is licensed by the Department of
1499	1499	7 Agriculture to cultivate, process, transport (unless otherwise
1500	1500	8 limited by this Act), and perform other necessary activities
1501	1501	9 to provide cannabis and cannabis-infused products to cannabis
1502	1502	10 business establishments.
1503	1503	11 "Cultivation center agent" means a principal officer,
1504	1504	12 board member, employee, or other agent of a cultivation center
1505	1505	13 who is 21 years of age or older.
1506	1506	14 "Cultivation Center Agent Identification Card" means a
1507	1507	15 document issued by the Department of Agriculture that
1508	1508	16 identifies a person as a cultivation center agent.
1509	1509	17 "Currency" means currency and coins coin of the United
1510	1510	18 States.
1511	1511	19 "Dispensary" means a facility operated by a dispensing
1512	1512	20 organization at which activities licensed by this Act may
1513	1513	21 occur.
1514	1514	22 "Dispensary Applicant" means the Proposed Dispensing
1515	1515	23 Organization Name as stated on an application for a
1516	1516	24 Conditional Adult Use Dispensing Organization License.
1517	1517	25 "Dispensing organization" means a facility operated by an
1518	1518	26 organization or business that is licensed by the Department of
1519	1519
1520	1520
1521	1521
1522	1522
1523	1523
1524	1524	SB3940 - 42 - LRB103 40496 RJT 72952 b
1525	1525
1526	1526
1527	1527	SB3940- 43 -LRB103 40496 RJT 72952 b SB3940 - 43 - LRB103 40496 RJT 72952 b
1528	1528	SB3940 - 43 - LRB103 40496 RJT 72952 b
1529	1529	1 Financial and Professional Regulation to acquire cannabis from
1530	1530	2 a cultivation center, craft grower, infuser processing
1531	1531	3 organization, or another dispensary for the purpose of selling
1532	1532	4 or dispensing cannabis, cannabis-infused products, cannabis
1533	1533	5 seeds, paraphernalia, or related supplies under this Act to
1534	1534	6 purchasers or to qualified registered medical cannabis
1535	1535	7 patients and caregivers. As used in this Act, "dispensing
1536	1536	8 organization" includes a registered medical cannabis
1537	1537	9 organization as defined in the Compassionate Use of Medical
1538	1538	10 Cannabis Program Act or its successor Act that has obtained an
1539	1539	11 Early Approval Adult Use Dispensing Organization License.
1540	1540	12 "Dispensing organization agent" means a principal officer,
1541	1541	13 employee, or agent of a dispensing organization who is 21
1542	1542	14 years of age or older.
1543	1543	15 "Dispensing organization agent identification card" means
1544	1544	16 a document issued by the Department of Financial and
1545	1545	17 Professional Regulation that identifies a person as a
1546	1546	18 dispensing organization agent.
1547	1547	19 "Disproportionately Impacted Area" means a census tract or
1548	1548	20 comparable geographic area that satisfies the following
1549	1549	21 criteria as determined by the Department of Commerce and
1550	1550	22 Economic Opportunity, that:
1551	1551	23 (1) meets at least one of the following criteria:
1552	1552	24 (A) the area has a poverty rate of at least 20%
1553	1553	25 according to the latest federal decennial census; or
1554	1554	26 (B) 75% or more of the children in the area
1555	1555
1556	1556
1557	1557
1558	1558
1559	1559
1560	1560	SB3940 - 43 - LRB103 40496 RJT 72952 b
1561	1561
1562	1562
1563	1563	SB3940- 44 -LRB103 40496 RJT 72952 b SB3940 - 44 - LRB103 40496 RJT 72952 b
1564	1564	SB3940 - 44 - LRB103 40496 RJT 72952 b
1565	1565	1 participate in the federal free lunch program
1566	1566	2 according to reported statistics from the State Board
1567	1567	3 of Education; or
1568	1568	4 (C) at least 20% of the households in the area
1569	1569	5 receive assistance under the Supplemental Nutrition
1570	1570	6 Assistance Program; or
1571	1571	7 (D) the area has an average unemployment rate, as
1572	1572	8 determined by the Illinois Department of Employment
1573	1573	9 Security, that is more than 120% of the national
1574	1574	10 unemployment average, as determined by the United
1575	1575	11 States Department of Labor, for a period of at least 2
1576	1576	12 consecutive calendar years preceding the date of the
1577	1577	13 application; and
1578	1578	14 (2) has high rates of arrest, conviction, and
1579	1579	15 incarceration related to the sale, possession, use,
1580	1580	16 cultivation, manufacture, or transport of cannabis.
1581	1581	17 "Early Approval Adult Use Cultivation Center License"
1582	1582	18 means a license that permits a medical cannabis cultivation
1583	1583	19 center licensed under the Compassionate Use of Medical
1584	1584	20 Cannabis Program Act as of the effective date of this Act to
1585	1585	21 begin cultivating, infusing, packaging, transporting (unless
1586	1586	22 otherwise provided in this Act), processing, and selling
1587	1587	23 cannabis or cannabis-infused product to cannabis business
1588	1588	24 establishments for resale to purchasers as permitted by this
1589	1589	25 Act as of January 1, 2020.
1590	1590	26 "Early Approval Adult Use Dispensing Organization License"
1591	1591
1592	1592
1593	1593
1594	1594
1595	1595
1596	1596	SB3940 - 44 - LRB103 40496 RJT 72952 b
1597	1597
1598	1598
1599	1599	SB3940- 45 -LRB103 40496 RJT 72952 b SB3940 - 45 - LRB103 40496 RJT 72952 b
1600	1600	SB3940 - 45 - LRB103 40496 RJT 72952 b
1601	1601	1 means a license that permits a medical cannabis dispensing
1602	1602	2 organization licensed under the Compassionate Use of Medical
1603	1603	3 Cannabis Program Act as of the effective date of this Act to
1604	1604	4 begin selling cannabis or cannabis-infused product to
1605	1605	5 purchasers as permitted by this Act as of January 1, 2020.
1606	1606	6 "Early Approval Adult Use Dispensing Organization at a
1607	1607	7 secondary site" means a license that permits a medical
1608	1608	8 cannabis dispensing organization licensed under the
1609	1609	9 Compassionate Use of Medical Cannabis Program Act as of the
1610	1610	10 effective date of this Act to begin selling cannabis or
1611	1611	11 cannabis-infused product to purchasers as permitted by this
1612	1612	12 Act on January 1, 2020 at a different dispensary location from
1613	1613	13 its existing registered medical dispensary location.
1614	1614	14 "Eligible Tied Applicant" means a Tied Applicant that is
1615	1615	15 eligible to participate in the process by which a remaining
1616	1616	16 available license is distributed by lot pursuant to a Tied
1617	1617	17 Applicant Lottery.
1618	1618	18 "Enclosed, locked facility" means a room, greenhouse,
1619	1619	19 building, or other enclosed area equipped with locks or other
1620	1620	20 security devices that permit access only by cannabis business
1621	1621	21 establishment agents working for the licensed cannabis
1622	1622	22 business establishment or acting pursuant to this Act to
1623	1623	23 cultivate, process, store, or distribute cannabis.
1624	1624	24 "Enclosed, locked space" means a closet, room, greenhouse,
1625	1625	25 building, or other enclosed area equipped with locks or other
1626	1626	26 security devices that permit access only by authorized
1627	1627
1628	1628
1629	1629
1630	1630
1631	1631
1632	1632	SB3940 - 45 - LRB103 40496 RJT 72952 b
1633	1633
1634	1634
1635	1635	SB3940- 46 -LRB103 40496 RJT 72952 b SB3940 - 46 - LRB103 40496 RJT 72952 b
1636	1636	SB3940 - 46 - LRB103 40496 RJT 72952 b
1637	1637	1 individuals under this Act. "Enclosed, locked space" may
1638	1638	2 include:
1639	1639	3 (1) a space within a residential building that (i) is
1640	1640	4 the primary residence of the individual cultivating 5 or
1641	1641	5 fewer cannabis plants that are more than 5 inches tall and
1642	1642	6 (ii) includes sleeping quarters and indoor plumbing. The
1643	1643	7 space must only be accessible by a key or code that is
1644	1644	8 different from any key or code that can be used to access
1645	1645	9 the residential building from the exterior; or
1646	1646	10 (2) a structure, such as a shed or greenhouse, that
1647	1647	11 lies on the same plot of land as a residential building
1648	1648	12 that (i) includes sleeping quarters and indoor plumbing
1649	1649	13 and (ii) is used as a primary residence by the person
1650	1650	14 cultivating 5 or fewer cannabis plants that are more than
1651	1651	15 5 inches tall, such as a shed or greenhouse. The structure
1652	1652	16 must remain locked when it is unoccupied by people.
1653	1653	17 "Financial institution" has the same meaning as "financial
1654	1654	18 organization" as defined in Section 1501 of the Illinois
1655	1655	19 Income Tax Act, and also includes the holding companies,
1656	1656	20 subsidiaries, and affiliates of such financial organizations.
1657	1657	21 "Flowering stage" means the stage of cultivation where and
1658	1658	22 when a cannabis plant is cultivated to produce plant material
1659	1659	23 for cannabis products. This includes mature plants as follows:
1660	1660	24 (1) if greater than 2 stigmas are visible at each
1661	1661	25 internode of the plant; or
1662	1662	26 (2) if the cannabis plant is in an area that has been
1663	1663
1664	1664
1665	1665
1666	1666
1667	1667
1668	1668	SB3940 - 46 - LRB103 40496 RJT 72952 b
1669	1669
1670	1670
1671	1671	SB3940- 47 -LRB103 40496 RJT 72952 b SB3940 - 47 - LRB103 40496 RJT 72952 b
1672	1672	SB3940 - 47 - LRB103 40496 RJT 72952 b
1673	1673	1 intentionally deprived of light for a period of time
1674	1674	2 intended to produce flower buds and induce maturation,
1675	1675	3 from the moment the light deprivation began through the
1676	1676	4 remainder of the marijuana plant growth cycle.
1677	1677	5 "Individual" means a natural person.
1678	1678	6 "Infuser organization" or "infuser" means a facility
1679	1679	7 operated by an organization or business that is licensed by
1680	1680	8 the Department of Agriculture to directly incorporate cannabis
1681	1681	9 or cannabis concentrate into a product formulation to produce
1682	1682	10 a cannabis-infused product.
1683	1683	11 "Infuser organization agent" means a principal officer,
1684	1684	12 board member, employee, or other agent of an infuser
1685	1685	13 organization.
1686	1686	14 "Infuser organization agent identification card" means a
1687	1687	15 document issued by the Department of Agriculture that
1688	1688	16 identifies a person as an infuser organization agent.
1689	1689	17 "Kief" means the resinous crystal-like trichomes that are
1690	1690	18 found on cannabis and that are accumulated, resulting in a
1691	1691	19 higher concentration of cannabinoids, untreated by heat or
1692	1692	20 pressure, or extracted using a solvent.
1693	1693	21 "Labor peace agreement" means an agreement between a
1694	1694	22 cannabis business establishment and any labor organization
1695	1695	23 recognized under the National Labor Relations Act, referred to
1696	1696	24 in this Act as a bona fide labor organization, that prohibits
1697	1697	25 labor organizations and members from engaging in picketing,
1698	1698	26 work stoppages, boycotts, and any other economic interference
1699	1699
1700	1700
1701	1701
1702	1702
1703	1703
1704	1704	SB3940 - 47 - LRB103 40496 RJT 72952 b
1705	1705
1706	1706
1707	1707	SB3940- 48 -LRB103 40496 RJT 72952 b SB3940 - 48 - LRB103 40496 RJT 72952 b
1708	1708	SB3940 - 48 - LRB103 40496 RJT 72952 b
1709	1709	1 with the cannabis business establishment. This agreement means
1710	1710	2 that the cannabis business establishment has agreed not to
1711	1711	3 disrupt efforts by the bona fide labor organization to
1712	1712	4 communicate with, and attempt to organize and represent, the
1713	1713	5 cannabis business establishment's employees. The agreement
1714	1714	6 shall provide a bona fide labor organization access at
1715	1715	7 reasonable times to areas in which the cannabis business
1716	1716	8 establishment's employees work, for the purpose of meeting
1717	1717	9 with employees to discuss their right to representation,
1718	1718	10 employment rights under State law, and terms and conditions of
1719	1719	11 employment. This type of agreement shall not mandate a
1720	1720	12 particular method of election or certification of the bona
1721	1721	13 fide labor organization.
1722	1722	14 "Limited access area" means a room or other area under the
1723	1723	15 control of a cannabis dispensing organization licensed under
1724	1724	16 this Act and upon the licensed premises where cannabis sales
1725	1725	17 occur with access limited to purchasers, dispensing
1726	1726	18 organization owners and other dispensing organization agents,
1727	1727	19 or service professionals conducting business with the
1728	1728	20 dispensing organization, or, if sales to registered qualifying
1729	1729	21 patients, caregivers, provisional patients, and Opioid
1730	1730	22 Alternative Pilot Program participants licensed pursuant to
1731	1731	23 the Compassionate Use of Medical Cannabis Program Act are also
1732	1732	24 permitted at the dispensary, registered qualifying patients,
1733	1733	25 caregivers, provisional patients, and Opioid Alternative Pilot
1734	1734	26 Program participants.
1735	1735
1736	1736
1737	1737
1738	1738
1739	1739
1740	1740	SB3940 - 48 - LRB103 40496 RJT 72952 b
1741	1741
1742	1742
1743	1743	SB3940- 49 -LRB103 40496 RJT 72952 b SB3940 - 49 - LRB103 40496 RJT 72952 b
1744	1744	SB3940 - 49 - LRB103 40496 RJT 72952 b
1745	1745	1 "Member of an impacted family" means an individual who has
1746	1746	2 a parent, legal guardian, child, spouse, or dependent, or was
1747	1747	3 a dependent of an individual who, prior to the effective date
1748	1748	4 of this Act, was arrested for, convicted of, or adjudicated
1749	1749	5 delinquent for any offense that is eligible for expungement
1750	1750	6 under this Act.
1751	1751	7 "Mother plant" means a cannabis plant that is cultivated
1752	1752	8 or maintained for the purpose of generating clones, and that
1753	1753	9 will not be used to produce plant material for sale to an
1754	1754	10 infuser or dispensing organization.
1755	1755	11 "Ordinary public view" means within the sight line with
1756	1756	12 normal visual range of a person, unassisted by visual aids,
1757	1757	13 from a public street or sidewalk adjacent to real property, or
1758	1758	14 from within an adjacent property.
1759	1759	15 "Ownership and control" means ownership of at least 51% of
1760	1760	16 the business, including corporate stock if a corporation, and
1761	1761	17 control over the management and day-to-day operations of the
1762	1762	18 business and an interest in the capital, assets, and profits
1763	1763	19 and losses of the business proportionate to percentage of
1764	1764	20 ownership.
1765	1765	21 "Person" means a natural individual, firm, partnership,
1766	1766	22 association, joint-stock joint stock company, joint venture,
1767	1767	23 public or private corporation, limited liability company, or a
1768	1768	24 receiver, executor, trustee, guardian, or other representative
1769	1769	25 appointed by order of any court.
1770	1770	26 "Possession limit" means the amount of cannabis under
1771	1771
1772	1772
1773	1773
1774	1774
1775	1775
1776	1776	SB3940 - 49 - LRB103 40496 RJT 72952 b
1777	1777
1778	1778
1779	1779	SB3940- 50 -LRB103 40496 RJT 72952 b SB3940 - 50 - LRB103 40496 RJT 72952 b
1780	1780	SB3940 - 50 - LRB103 40496 RJT 72952 b
1781	1781	1 Section 10-10 that may be possessed at any one time by a person
1782	1782	2 21 years of age or older or who is a registered qualifying
1783	1783	3 medical cannabis patient or caregiver under the Compassionate
1784	1784	4 Use of Medical Cannabis Program Act.
1785	1785	5 "Principal officer" includes a cannabis business
1786	1786	6 establishment applicant or licensed cannabis business
1787	1787	7 establishment's board member, owner with more than 1% interest
1788	1788	8 of the total cannabis business establishment or more than 5%
1789	1789	9 interest of the total cannabis business establishment of a
1790	1790	10 publicly traded company, president, vice president, secretary,
1791	1791	11 treasurer, partner, officer, member, manager member, or person
1792	1792	12 with a profit sharing, financial interest, or revenue sharing
1793	1793	13 arrangement. The definition includes a person with authority
1794	1794	14 to control the cannabis business establishment, a person who
1795	1795	15 assumes responsibility for the debts of the cannabis business
1796	1796	16 establishment and who is further defined in this Act.
1797	1797	17 "Primary residence" means a dwelling where a person
1798	1798	18 usually stays or stays more often than other locations. It may
1799	1799	19 be determined by, without limitation, presence, tax filings;
1800	1800	20 address on an Illinois driver's license, an Illinois
1801	1801	21 Identification Card, or an Illinois Person with a Disability
1802	1802	22 Identification Card; or voter registration. No person may have
1803	1803	23 more than one primary residence.
1804	1804	24 "Processor license" means a license issued to an infuser
1805	1805	25 organization that is licensed by the Department of Agriculture
1806	1806	26 under subsection (f) of Section 35-31 to extract raw materials
1807	1807
1808	1808
1809	1809
1810	1810
1811	1811
1812	1812	SB3940 - 50 - LRB103 40496 RJT 72952 b
1813	1813
1814	1814
1815	1815	SB3940- 51 -LRB103 40496 RJT 72952 b SB3940 - 51 - LRB103 40496 RJT 72952 b
1816	1816	SB3940 - 51 - LRB103 40496 RJT 72952 b
1817	1817	1 from cannabis flower.
1818	1818	2 "Processing organization" or "processor" means a facility
1819	1819	3 operated by an organization or business that is licensed by
1820	1820	4 the Department of Agriculture to either extract constituent
1821	1821	5 chemicals or compounds to produce cannabis concentrate or
1822	1822	6 incorporate cannabis or cannabis concentrate into a product
1823	1823	7 formulation to produce a cannabis product.
1824	1824	8 "Processing organization agent" means a principal officer,
1825	1825	9 board member, employee, or agent of a processing organization.
1826	1826	10 "Processing organization agent identification card" means
1827	1827	11 a document issued by the Department of Agriculture that
1828	1828	12 identifies a person as a processing organization agent.
1829	1829	13 "Purchaser" means a person 21 years of age or older who
1830	1830	14 acquires cannabis for a valuable consideration. "Purchaser"
1831	1831	15 does not include a cardholder under the Compassionate Use of
1832	1832	16 Medical Cannabis Program Act.
1833	1833	17 "Qualifying Applicant" means an applicant that submitted
1834	1834	18 an application pursuant to Section 15-30 that received at
1835	1835	19 least 85% of 250 application points available under Section
1836	1836	20 15-30 as the applicant's final score and meets the definition
1837	1837	21 of "Social Equity Applicant" as set forth under this Section.
1838	1838	22 "Qualifying Social Equity Justice Involved Applicant"
1839	1839	23 means an applicant that submitted an application pursuant to
1840	1840	24 Section 15-30 that received at least 85% of 250 application
1841	1841	25 points available under Section 15-30 as the applicant's final
1842	1842	26 score and meets the criteria of either paragraph (1) or (2) of
1843	1843
1844	1844
1845	1845
1846	1846
1847	1847
1848	1848	SB3940 - 51 - LRB103 40496 RJT 72952 b
1849	1849
1850	1850
1851	1851	SB3940- 52 -LRB103 40496 RJT 72952 b SB3940 - 52 - LRB103 40496 RJT 72952 b
1852	1852	SB3940 - 52 - LRB103 40496 RJT 72952 b
1853	1853	1 the definition of "Social Equity Applicant" as set forth under
1854	1854	2 this Section.
1855	1855	3 "Qualified Social Equity Applicant" means a Social Equity
1856	1856	4 Applicant who has been awarded a license or conditional
1857	1857	5 license under this Act to operate a cannabis business
1858	1858	6 establishment.
1859	1859	7 "Resided" means an individual's primary residence was
1860	1860	8 located within the relevant geographic area as established by
1861	1861	9 2 of the following:
1862	1862	10 (1) a signed lease agreement that includes the
1863	1863	11 applicant's name;
1864	1864	12 (2) a property deed that includes the applicant's
1865	1865	13 name;
1866	1866	14 (3) school records;
1867	1867	15 (4) a voter registration card;
1868	1868	16 (5) an Illinois driver's license, an Illinois
1869	1869	17 Identification Card, or an Illinois Person with a
1870	1870	18 Disability Identification Card;
1871	1871	19 (6) a paycheck stub;
1872	1872	20 (7) a utility bill;
1873	1873	21 (8) tax records; or
1874	1874	22 (9) any other proof of residency or other information
1875	1875	23 necessary to establish residence as provided by rule.
1876	1876	24 "Smoking" means the inhalation of smoke caused by the
1877	1877	25 combustion of cannabis.
1878	1878	26 "Social Equity Applicant" means an applicant that is an
1879	1879
1880	1880
1881	1881
1882	1882
1883	1883
1884	1884	SB3940 - 52 - LRB103 40496 RJT 72952 b
1885	1885
1886	1886
1887	1887	SB3940- 53 -LRB103 40496 RJT 72952 b SB3940 - 53 - LRB103 40496 RJT 72952 b
1888	1888	SB3940 - 53 - LRB103 40496 RJT 72952 b
1889	1889	1 Illinois resident that meets one of the following criteria:
1890	1890	2 (1) an applicant with at least 51% ownership and
1891	1891	3 control by one or more individuals who have resided for at
1892	1892	4 least 5 of the preceding 10 years in a Disproportionately
1893	1893	5 Impacted Area;
1894	1894	6 (2) an applicant with at least 51% ownership and
1895	1895	7 control by one or more individuals who:
1896	1896	8 (i) have been arrested for, convicted of, or
1897	1897	9 adjudicated delinquent for any offense that is
1898	1898	10 eligible for expungement under this Act; or
1899	1899	11 (ii) is a member of an impacted family;
1900	1900	12 (3) for applicants with a minimum of 10 full-time
1901	1901	13 employees, an applicant with at least 51% of current
1902	1902	14 employees who:
1903	1903	15 (i) currently reside in a Disproportionately
1904	1904	16 Impacted Area; or
1905	1905	17 (ii) have been arrested for, convicted of, or
1906	1906	18 adjudicated delinquent for any offense that is
1907	1907	19 eligible for expungement under this Act or member of
1908	1908	20 an impacted family.
1909	1909	21 Nothing in this Act shall be construed to preempt or limit
1910	1910	22 the duties of any employer under the Job Opportunities for
1911	1911	23 Qualified Applicants Act. Nothing in this Act shall permit an
1912	1912	24 employer to require an employee to disclose sealed or expunged
1913	1913	25 offenses, unless otherwise required by law.
1914	1914	26 "Social Equity Criteria Lottery Licensee" means a holder
1915	1915
1916	1916
1917	1917
1918	1918
1919	1919
1920	1920	SB3940 - 53 - LRB103 40496 RJT 72952 b
1921	1921
1922	1922
1923	1923	SB3940- 54 -LRB103 40496 RJT 72952 b SB3940 - 54 - LRB103 40496 RJT 72952 b
1924	1924	SB3940 - 54 - LRB103 40496 RJT 72952 b
1925	1925	1 of an adult use cannabis dispensary license awarded through a
1926	1926	2 lottery held under subsection (c) of Section 15-35.20.
1927	1927	3 "Tied Applicant" means an application submitted by a
1928	1928	4 Dispensary Applicant pursuant to Section 15-30 that received
1929	1929	5 the same number of application points under Section 15-30 as
1930	1930	6 the Dispensary Applicant's final score as one or more
1931	1931	7 top-scoring applications in the same BLS Region and would have
1932	1932	8 been awarded a license but for the one or more other
1933	1933	9 top-scoring applications that received the same number of
1934	1934	10 application points. Each application for which a Dispensary
1935	1935	11 Applicant was required to pay a required application fee for
1936	1936	12 the application period ending January 2, 2020 shall be
1937	1937	13 considered an application of a separate Tied Applicant.
1938	1938	14 "Tied Applicant Lottery" means the process established
1939	1939	15 under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
1940	1940	16 Use Dispensing Organization Licenses pursuant to Sections
1941	1941	17 15-25 and 15-30 among Eligible Tied Applicants.
1942	1942	18 "Tincture" means a cannabis-infused solution, typically
1943	1943	19 composed comprised of alcohol, glycerin, or vegetable oils,
1944	1944	20 derived either directly from the cannabis plant or from a
1945	1945	21 processed cannabis extract. A tincture is not an alcoholic
1946	1946	22 liquor as defined in the Liquor Control Act of 1934. A tincture
1947	1947	23 shall include a calibrated dropper or other similar device
1948	1948	24 capable of accurately measuring servings.
1949	1949	25 "Transporting organization" or "transporter" means an
1950	1950	26 organization or business that is licensed by the Department of
1951	1951
1952	1952
1953	1953
1954	1954
1955	1955
1956	1956	SB3940 - 54 - LRB103 40496 RJT 72952 b
1957	1957
1958	1958
1959	1959	SB3940- 55 -LRB103 40496 RJT 72952 b SB3940 - 55 - LRB103 40496 RJT 72952 b
1960	1960	SB3940 - 55 - LRB103 40496 RJT 72952 b
1961	1961	1 Agriculture to transport cannabis or cannabis-infused product
1962	1962	2 on behalf of a cannabis business establishment or a community
1963	1963	3 college licensed under the Community College Cannabis
1964	1964	4 Vocational Training Pilot Program.
1965	1965	5 "Transporting organization agent" means a principal
1966	1966	6 officer, board member, employee, or agent of a transporting
1967	1967	7 organization.
1968	1968	8 "Transporting organization agent identification card"
1969	1969	9 means a document issued by the Department of Agriculture that
1970	1970	10 identifies a person as a transporting organization agent.
1971	1971	11 "Unit of local government" means any county, city,
1972	1972	12 village, or incorporated town.
1973	1973	13 "Vegetative stage" means the stage of cultivation in which
1974	1974	14 a cannabis plant is propagated to produce additional cannabis
1975	1975	15 plants or reach a sufficient size for production. This
1976	1976	16 includes seedlings, clones, mothers, and other immature
1977	1977	17 cannabis plants as follows:
1978	1978	18 (1) if the cannabis plant is in an area that has not
1979	1979	19 been intentionally deprived of light for a period of time
1980	1980	20 intended to produce flower buds and induce maturation, it
1981	1981	21 has no more than 2 stigmas visible at each internode of the
1982	1982	22 cannabis plant; or
1983	1983	23 (2) any cannabis plant that is cultivated solely for
1984	1984	24 the purpose of propagating clones and is never used to
1985	1985	25 produce cannabis.
1986	1986	26 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
1987	1987
1988	1988
1989	1989
1990	1990
1991	1991
1992	1992	SB3940 - 55 - LRB103 40496 RJT 72952 b
1993	1993
1994	1994
1995	1995	SB3940- 56 -LRB103 40496 RJT 72952 b SB3940 - 56 - LRB103 40496 RJT 72952 b
1996	1996	SB3940 - 56 - LRB103 40496 RJT 72952 b
1997	1997	1 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
1998	1998	2 5-13-22.)
1999	1999	3 (410 ILCS 705/5-10)
2000	2000	4 Sec. 5-10. Department of Agriculture.
2001	2001	5 (a) The Department of Agriculture shall administer and
2002	2002	6 enforce provisions of this Act relating to the oversight and
2003	2003	7 registration of cultivation centers, craft growers, infuser
2004	2004	8 organizations, and transporting organizations and agents,
2005	2005	9 including the issuance of identification cards and
2006	2006	10 establishing limits on potency or serving size for cannabis or
2007	2007	11 cannabis products. The Department of Agriculture may suspend
2008	2008	12 or revoke the license of, or impose other penalties upon
2009	2009	13 cannabis testing facilities, cultivation centers, craft
2010	2010	14 growers, infuser organizations, transporting organizations,
2011	2011	15 and their principal officers, Agents-in-Charge, and agents for
2012	2012	16 violations of this Act and any rules adopted under this Act.
2013	2013	17 (b) The Department of Agriculture may establish, by rule,
2014	2014	18 market protections that protect against unfair business
2015	2015	19 practices, including, but not limited to, price-fixing, bid
2016	2016	20 rigging, boycotts, agreements to not compete, exclusive
2017	2017	21 wholesale arrangements for cannabis concentrate, cannabis
2018	2018	22 flower, cannabis-infused products, and any product that is
2019	2019	23 licensed under this Act to ensure all license types have equal
2020	2020	24 access to the market without unfair competition.
2021	2021	25 (Source: P.A. 101-27, eff. 6-25-19.)
2022	2022
2023	2023
2024	2024
2025	2025
2026	2026
2027	2027	SB3940 - 56 - LRB103 40496 RJT 72952 b
2028	2028
2029	2029
2030	2030	SB3940- 57 -LRB103 40496 RJT 72952 b SB3940 - 57 - LRB103 40496 RJT 72952 b
2031	2031	SB3940 - 57 - LRB103 40496 RJT 72952 b
2032	2032	1 (410 ILCS 705/5-15)
2033	2033	2 Sec. 5-15. Department of Financial and Professional
2034	2034	3 Regulation.
2035	2035	4 (a) The Department of Financial and Professional
2036	2036	5 Regulation shall enforce the provisions of this Act relating
2037	2037	6 to the oversight and registration of dispensing organizations
2038	2038	7 and agents, including the issuance of identification cards for
2039	2039	8 dispensing organization agents. The Department of Financial
2040	2040	9 and Professional Regulation may suspend or revoke the license
2041	2041	10 of, or otherwise discipline dispensing organizations,
2042	2042	11 principal officers, agents-in-charge, and agents for
2043	2043	12 violations of this Act and any rules adopted under this Act.
2044	2044	13 (b) The Department of Financial and Professional
2045	2045	14 Regulation may establish, by rule, market protections that
2046	2046	15 protect against unfair business practices, including, but not
2047	2047	16 limited to, price-fixing, bid rigging, boycotts, agreements to
2048	2048	17 not compete, exclusive wholesale arrangements for cannabis
2049	2049	18 concentrate, cannabis flower, cannabis-infused products, and
2050	2050	19 any product that is licensed under this Act to ensure all
2051	2051	20 license types have equal access to the market without unfair
2052	2052	21 competition.
2053	2053	22 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
2054	2054	23 (410 ILCS 705/7-10)
2055	2055	24 Sec. 7-10. Cannabis Business Development Fund.
2056	2056
2057	2057
2058	2058
2059	2059
2060	2060
2061	2061	SB3940 - 57 - LRB103 40496 RJT 72952 b
2062	2062
2063	2063
2064	2064	SB3940- 58 -LRB103 40496 RJT 72952 b SB3940 - 58 - LRB103 40496 RJT 72952 b
2065	2065	SB3940 - 58 - LRB103 40496 RJT 72952 b
2066	2066	1 (a) There is created in the State treasury a special fund,
2067	2067	2 which shall be held separate and apart from all other State
2068	2068	3 moneys, to be known as the Cannabis Business Development Fund.
2069	2069	4 The Cannabis Business Development Fund shall be exclusively
2070	2070	5 used for the following purposes:
2071	2071	6 (1) to provide low-interest rate loans to Qualified
2072	2072	7 Social Equity Applicants and Social Equity Criteria
2073	2073	8 Lottery Licensees to pay for ordinary and necessary
2074	2074	9 expenses to start and operate a cannabis business
2075	2075	10 establishment permitted by this Act;
2076	2076	11 (2) to provide grants to Qualified Social Equity
2077	2077	12 Applicants to pay for ordinary and necessary expenses to
2078	2078	13 start and operate a cannabis business establishment
2079	2079	14 permitted by this Act;
2080	2080	15 (3) to compensate the Department of Commerce and
2081	2081	16 Economic Opportunity for any costs related to the
2082	2082	17 provision of low-interest loans and grants to Qualified
2083	2083	18 Social Equity Applicants and Social Equity Criteria
2084	2084	19 Lottery Licensees;
2085	2085	20 (4) to pay for outreach that may be provided or
2086	2086	21 targeted to attract and support Social Equity Applicants,
2087	2087	22 and Qualified Social Equity Applicants, and Social Equity
2088	2088	23 Criteria Lottery Licensees;
2089	2089	24 (5) (blank);
2090	2090	25 (5.5) to provide financial assistance that supports
2091	2091	26 lending to or private investment in Qualified Social
2092	2092
2093	2093
2094	2094
2095	2095
2096	2096
2097	2097	SB3940 - 58 - LRB103 40496 RJT 72952 b
2098	2098
2099	2099
2100	2100	SB3940- 59 -LRB103 40496 RJT 72952 b SB3940 - 59 - LRB103 40496 RJT 72952 b
2101	2101	SB3940 - 59 - LRB103 40496 RJT 72952 b
2102	2102	1 Equity Applicants and Social Equity Criteria Lottery
2103	2103	2 Licensees or that facilitates access to the facilities
2104	2104	3 needed to commence operations as a cannabis business
2105	2105	4 establishment;
2106	2106	5 (6) to conduct any study or research concerning the
2107	2107	6 participation of minorities, women, veterans, or people
2108	2108	7 with disabilities in the cannabis industry, including,
2109	2109	8 without limitation, barriers to such individuals entering
2110	2110	9 the industry as equity owners of cannabis business
2111	2111	10 establishments;
2112	2112	11 (7) (blank); and
2113	2113	12 (8) to assist with job training and technical
2114	2114	13 assistance for residents in Disproportionately Impacted
2115	2115	14 Areas.
2116	2116	15 (b) All moneys collected under Sections 15-15 and 15-20
2117	2117	16 for Early Approval Adult Use Dispensing Organization Licenses
2118	2118	17 issued before January 1, 2021 and remunerations made as a
2119	2119	18 result of transfers of permits awarded to Qualified Social
2120	2120	19 Equity Applicants shall be deposited into the Cannabis
2121	2121	20 Business Development Fund.
2122	2122	21 (c) (Blank).
2123	2123	22 (c-5) In addition to any other transfers that may be
2124	2124	23 provided for by law, on July 1, 2023, or as soon thereafter as
2125	2125	24 practical, the State Comptroller shall direct and the State
2126	2126	25 Treasurer shall transfer the sum of $40,000,000 from the
2127	2127	26 Compassionate Use of Medical Cannabis Fund to the Cannabis
2128	2128
2129	2129
2130	2130
2131	2131
2132	2132
2133	2133	SB3940 - 59 - LRB103 40496 RJT 72952 b
2134	2134
2135	2135
2136	2136	SB3940- 60 -LRB103 40496 RJT 72952 b SB3940 - 60 - LRB103 40496 RJT 72952 b
2137	2137	SB3940 - 60 - LRB103 40496 RJT 72952 b
2138	2138	1 Business Development Fund.
2139	2139	2 (d) Notwithstanding any other law to the contrary, the
2140	2140	3 Cannabis Business Development Fund is not subject to sweeps,
2141	2141	4 administrative charge-backs, or any other fiscal or budgetary
2142	2142	5 maneuver that would in any way transfer any amounts from the
2143	2143	6 Cannabis Business Development Fund into any other fund of the
2144	2144	7 State.
2145	2145	8 (Source: P.A. 103-8, eff. 6-7-23.)
2146	2146	9 (410 ILCS 705/7-15)
2147	2147	10 Sec. 7-15. Loans, financial assistance, and grants to
2148	2148	11 Qualified Social Equity Applicants and Social Equity Criteria
2149	2149	12 Lottery Licensees.
2150	2150	13 (a) The Department of Commerce and Economic Opportunity
2151	2151	14 shall establish grant, and loan, and financial assistance
2152	2152	15 programs, subject to appropriations from the Cannabis Business
2153	2153	16 Development Fund, for the purposes of providing financial
2154	2154	17 assistance, loans, grants, and technical assistance to
2155	2155	18 Qualified Social Equity Applicants and Social Equity Criteria
2156	2156	19 Lottery Licensee.
2157	2157	20 (b) The Department of Commerce and Economic Opportunity
2158	2158	21 has the power to:
2159	2159	22 (1) provide Cannabis Social Equity loans, financial
2160	2160	23 assistance, and grants from appropriations from the
2161	2161	24 Cannabis Business Development Fund to assist Qualified
2162	2162	25 Social Equity Applicants and Social Equity Criteria
2163	2163
2164	2164
2165	2165
2166	2166
2167	2167
2168	2168	SB3940 - 60 - LRB103 40496 RJT 72952 b
2169	2169
2170	2170
2171	2171	SB3940- 61 -LRB103 40496 RJT 72952 b SB3940 - 61 - LRB103 40496 RJT 72952 b
2172	2172	SB3940 - 61 - LRB103 40496 RJT 72952 b
2173	2173	1 Lottery Licensee in gaining entry to, and successfully
2174	2174	2 operating in, the State's regulated cannabis marketplace;
2175	2175	3 (2) enter into agreements that set forth terms and
2176	2176	4 conditions of the financial assistance, accept funds or
2177	2177	5 grants, and engage in cooperation with private entities
2178	2178	6 and agencies of State or local government to carry out the
2179	2179	7 purposes of this Section;
2180	2180	8 (3) fix, determine, charge, and collect any premiums,
2181	2181	9 fees, charges, costs and expenses, including application
2182	2182	10 fees, commitment fees, program fees, financing charges, or
2183	2183	11 publication fees in connection with its activities under
2184	2184	12 this Section;
2185	2185	13 (4) coordinate assistance under these financial
2186	2186	14 assistance loan programs with activities of the Illinois
2187	2187	15 Department of Financial and Professional Regulation, the
2188	2188	16 Illinois Department of Agriculture, and other agencies as
2189	2189	17 needed to maximize the effectiveness and efficiency of
2190	2190	18 this Act;
2191	2191	19 (5) provide staff, administration, and related support
2192	2192	20 required to administer this Section;
2193	2193	21 (6) take whatever actions are necessary or appropriate
2194	2194	22 to protect the State's interest in the event of
2195	2195	23 bankruptcy, default, foreclosure, or noncompliance with
2196	2196	24 the terms and conditions of financial assistance provided
2197	2197	25 under this Section, including the ability to recapture
2198	2198	26 funds if the recipient is found to be noncompliant with
2199	2199
2200	2200
2201	2201
2202	2202
2203	2203
2204	2204	SB3940 - 61 - LRB103 40496 RJT 72952 b
2205	2205
2206	2206
2207	2207	SB3940- 62 -LRB103 40496 RJT 72952 b SB3940 - 62 - LRB103 40496 RJT 72952 b
2208	2208	SB3940 - 62 - LRB103 40496 RJT 72952 b
2209	2209	1 the terms and conditions of the financial assistance
2210	2210	2 agreement;
2211	2211	3 (6.5) enter into financial intermediary agreements to
2212	2212	4 facilitate lending to or investment in Qualified Social
2213	2213	5 Equity Applicants, or Social Equity Criteria Lottery
2214	2214	6 Licensee, or their subsidiaries or affiliates, to ensure
2215	2215	7 the availability of facilities necessary to operate a
2216	2216	8 cannabis business establishment;
2217	2217	9 (7) establish application, notification, contract, and
2218	2218	10 other forms, procedures, or rules deemed necessary and
2219	2219	11 appropriate; and
2220	2220	12 (8) utilize vendors or contract work to carry out the
2221	2221	13 purposes of this Act.
2222	2222	14 (c) Loans made under this Section:
2223	2223	15 (1) shall only be made if, in the Department's
2224	2224	16 judgment, the project furthers the goals set forth in this
2225	2225	17 Act; and
2226	2226	18 (2) shall be in such principal amount and form and
2227	2227	19 contain such terms and provisions with respect to
2228	2228	20 security, insurance, reporting, delinquency charges,
2229	2229	21 default remedies, forgiveness, and other matters as the
2230	2230	22 Department shall determine appropriate to protect the
2231	2231	23 public interest and to be consistent with the purposes of
2232	2232	24 this Section. The terms and provisions may be less than
2233	2233	25 required for similar loans not covered by this Section;
2234	2234	26 and .
2235	2235
2236	2236
2237	2237
2238	2238
2239	2239
2240	2240	SB3940 - 62 - LRB103 40496 RJT 72952 b
2241	2241
2242	2242
2243	2243	SB3940- 63 -LRB103 40496 RJT 72952 b SB3940 - 63 - LRB103 40496 RJT 72952 b
2244	2244	SB3940 - 63 - LRB103 40496 RJT 72952 b
2245	2245	1 (3) may be distributed by a lottery if the Department
2246	2246	2 determines that the amount of funding available is
2247	2247	3 insufficient to provide an adequate amount of funding for
2248	2248	4 all of the applicants eligible to receive a loan. The
2249	2249	5 Department may determine the number of loans available
2250	2250	6 based on the amount of funding available and communicate
2251	2251	7 the number of loans available on the loan application. The
2252	2252	8 Department may use competitive criteria to establish which
2253	2253	9 applicants are eligible to receive a grant, loan, or
2254	2254	10 financial assistance.
2255	2255	11 (d) Grants made under this Section shall be awarded on a
2256	2256	12 competitive and annual basis under the Grant Accountability
2257	2257	13 and Transparency Act. Grants made under this Section shall
2258	2258	14 further and promote the goals of this Act, including promotion
2259	2259	15 of Social Equity Applicants, Qualified Social Equity
2260	2260	16 Applicants, or Social Equity Criteria Lottery Licensee, job
2261	2261	17 training and workforce development, and technical assistance
2262	2262	18 to Social Equity Applicants. To the extent registration with
2263	2263	19 the federal System for Award Management requires a grant
2264	2264	20 applicant to certify compliance with all federal laws, the
2265	2265	21 grant applicants under this Section shall not be required to
2266	2266	22 register for a unique entity identifier through the federal
2267	2267	23 System for Award Management to be qualified to receive a grant
2268	2268	24 so long as federal law prohibits the cultivation and sale of
2269	2269	25 cannabis.
2270	2270	26 (d-5) Financial intermediary agreements to provide
2271	2271
2272	2272
2273	2273
2274	2274
2275	2275
2276	2276	SB3940 - 63 - LRB103 40496 RJT 72952 b
2277	2277
2278	2278
2279	2279	SB3940- 64 -LRB103 40496 RJT 72952 b SB3940 - 64 - LRB103 40496 RJT 72952 b
2280	2280	SB3940 - 64 - LRB103 40496 RJT 72952 b
2281	2281	1 financial assistance must further the goals set forth in this
2282	2282	2 Act and result in financing or lease costs that are affordable
2283	2283	3 or below market rate.
2284	2284	4 (e) Beginning January 1, 2021 and each year thereafter,
2285	2285	5 the Department shall annually report to the Governor and the
2286	2286	6 General Assembly on the outcomes and effectiveness of this
2287	2287	7 Section that shall include the following:
2288	2288	8 (1) the number of persons or businesses receiving
2289	2289	9 financial assistance under this Section;
2290	2290	10 (2) the amount in financial assistance awarded in the
2291	2291	11 aggregate, in addition to the amount of loans made that
2292	2292	12 are outstanding and the amount of grants awarded;
2293	2293	13 (3) the location of the project engaged in by the
2294	2294	14 person or business; and
2295	2295	15 (4) if applicable, the number of new jobs and other
2296	2296	16 forms of economic output created as a result of the
2297	2297	17 financial assistance.
2298	2298	18 (f) The Department of Commerce and Economic Opportunity
2299	2299	19 shall include engagement with individuals with limited English
2300	2300	20 proficiency as part of its outreach provided or targeted to
2301	2301	21 attract and support Social Equity Applicants.
2302	2302	22 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
2303	2303	23 (410 ILCS 705/10-15)
2304	2304	24 Sec. 10-15. Persons under 21 years of age.
2305	2305	25 (a) Nothing in this Act is intended to permit the transfer
2306	2306
2307	2307
2308	2308
2309	2309
2310	2310
2311	2311	SB3940 - 64 - LRB103 40496 RJT 72952 b
2312	2312
2313	2313
2314	2314	SB3940- 65 -LRB103 40496 RJT 72952 b SB3940 - 65 - LRB103 40496 RJT 72952 b
2315	2315	SB3940 - 65 - LRB103 40496 RJT 72952 b
2316	2316	1 of cannabis, with or without remuneration, to a person under
2317	2317	2 21 years of age, or to allow a person under 21 years of age to
2318	2318	3 purchase, possess, use, process, transport, grow, or consume
2319	2319	4 cannabis except where authorized by this Act, the
2320	2320	5 Compassionate Use of Medical Cannabis Program Act, or by the
2321	2321	6 Community College Cannabis Vocational Pilot Program.
2322	2322	7 (b) Notwithstanding any other provisions of law
2323	2323	8 authorizing the possession of medical cannabis, nothing in
2324	2324	9 this Act authorizes a person who is under 21 years of age to
2325	2325	10 possess cannabis. A person under 21 years of age with cannabis
2326	2326	11 in his or her possession is guilty of a civil law violation as
2327	2327	12 outlined in paragraph (a) of Section 4 of the Cannabis Control
2328	2328	13 Act.
2329	2329	14 (c) If the person under the age of 21 was in a motor
2330	2330	15 vehicle at the time of the offense, the Secretary of State may
2331	2331	16 suspend or revoke the driving privileges of any person for a
2332	2332	17 violation of this Section under Section 6-206 of the Illinois
2333	2333	18 Vehicle Code and the rules adopted under it.
2334	2334	19 (d) It is unlawful for any parent or guardian to knowingly
2335	2335	20 permit his or her residence, any other private property under
2336	2336	21 his or her control, or any vehicle, conveyance, or watercraft
2337	2337	22 under his or her control to be used by an invitee of the
2338	2338	23 parent's child or the guardian's ward, if the invitee is under
2339	2339	24 the age of 21, in a manner that constitutes a violation of this
2340	2340	25 Section. A parent or guardian is deemed to have knowingly
2341	2341	26 permitted his or her residence, any other private property
2342	2342
2343	2343
2344	2344
2345	2345
2346	2346
2347	2347	SB3940 - 65 - LRB103 40496 RJT 72952 b
2348	2348
2349	2349
2350	2350	SB3940- 66 -LRB103 40496 RJT 72952 b SB3940 - 66 - LRB103 40496 RJT 72952 b
2351	2351	SB3940 - 66 - LRB103 40496 RJT 72952 b
2352	2352	1 under his or her control, or any vehicle, conveyance, or
2353	2353	2 watercraft under his or her control to be used in violation of
2354	2354	3 this Section if he or she knowingly authorizes or permits
2355	2355	4 consumption of cannabis by underage invitees. Any person who
2356	2356	5 violates this subsection (d) is guilty of a Class A
2357	2357	6 misdemeanor and the person's sentence shall include, but shall
2358	2358	7 not be limited to, a fine of not less than $500. If a violation
2359	2359	8 of this subsection (d) directly or indirectly results in great
2360	2360	9 bodily harm or death to any person, the person violating this
2361	2361	10 subsection is guilty of a Class 4 felony. In this subsection
2362	2362	11 (d), where the residence or other property has an owner and a
2363	2363	12 tenant or lessee, the trier of fact may infer that the
2364	2364	13 residence or other property is occupied only by the tenant or
2365	2365	14 lessee.
2366	2366	15 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
2367	2367	16 (410 ILCS 705/15-25)
2368	2368	17 Sec. 15-25. Awarding of Conditional Adult Use Dispensing
2369	2369	18 Organization Licenses prior to January 1, 2021.
2370	2370	19 (a) The Department shall issue up to 75 Conditional Adult
2371	2371	20 Use Dispensing Organization Licenses before May 1, 2020.
2372	2372	21 (b) The Department shall make the application for a
2373	2373	22 Conditional Adult Use Dispensing Organization License
2374	2374	23 available no later than October 1, 2019 and shall accept
2375	2375	24 applications no later than January 1, 2020.
2376	2376	25 (c) To ensure the geographic dispersion of Conditional
2377	2377
2378	2378
2379	2379
2380	2380
2381	2381
2382	2382	SB3940 - 66 - LRB103 40496 RJT 72952 b
2383	2383
2384	2384
2385	2385	SB3940- 67 -LRB103 40496 RJT 72952 b SB3940 - 67 - LRB103 40496 RJT 72952 b
2386	2386	SB3940 - 67 - LRB103 40496 RJT 72952 b
2387	2387	1 Adult Use Dispensing Organization License holders, the
2388	2388	2 following number of licenses shall be awarded in each BLS
2389	2389	3 Region as determined by each region's percentage of the
2390	2390	4 State's population:
2391	2391	5 (1) Bloomington: 1
2392	2392	6 (2) Cape Girardeau: 1
2393	2393	7 (3) Carbondale-Marion: 1
2394	2394	8 (4) Champaign-Urbana: 1
2395	2395	9 (5) Chicago-Naperville-Elgin: 47
2396	2396	10 (6) Danville: 1
2397	2397	11 (7) Davenport-Moline-Rock Island: 1
2398	2398	12 (8) Decatur: 1
2399	2399	13 (9) Kankakee: 1
2400	2400	14 (10) Peoria: 3
2401	2401	15 (11) Rockford: 2
2402	2402	16 (12) St. Louis: 4
2403	2403	17 (13) Springfield: 1
2404	2404	18 (14) Northwest Illinois nonmetropolitan: 3
2405	2405	19 (15) West Central Illinois nonmetropolitan: 3
2406	2406	20 (16) East Central Illinois nonmetropolitan: 2
2407	2407	21 (17) South Illinois nonmetropolitan: 2
2408	2408	22 (d) An applicant seeking issuance of a Conditional Adult
2409	2409	23 Use Dispensing Organization License shall submit an
2410	2410	24 application on forms provided by the Department. An applicant
2411	2411	25 must meet the following requirements:
2412	2412	26 (1) Payment of a nonrefundable application fee of
2413	2413
2414	2414
2415	2415
2416	2416
2417	2417
2418	2418	SB3940 - 67 - LRB103 40496 RJT 72952 b
2419	2419
2420	2420
2421	2421	SB3940- 68 -LRB103 40496 RJT 72952 b SB3940 - 68 - LRB103 40496 RJT 72952 b
2422	2422	SB3940 - 68 - LRB103 40496 RJT 72952 b
2423	2423	1 $5,000 for each license for which the applicant is
2424	2424	2 applying, which shall be deposited into the Cannabis
2425	2425	3 Regulation Fund;
2426	2426	4 (2) Certification that the applicant will comply with
2427	2427	5 the requirements contained in this Act;
2428	2428	6 (3) The legal name of the proposed dispensing
2429	2429	7 organization;
2430	2430	8 (4) A statement that the dispensing organization
2431	2431	9 agrees to respond to the Department's supplemental
2432	2432	10 requests for information;
2433	2433	11 (5) From each principal officer, a statement
2434	2434	12 indicating whether that person:
2435	2435	13 (A) has previously held or currently holds an
2436	2436	14 ownership interest in a cannabis business
2437	2437	15 establishment in Illinois; or
2438	2438	16 (B) has held an ownership interest in a dispensing
2439	2439	17 organization or its equivalent in another state or
2440	2440	18 territory of the United States that had the dispensing
2441	2441	19 organization registration or license suspended,
2442	2442	20 revoked, placed on probationary status, or subjected
2443	2443	21 to other disciplinary action;
2444	2444	22 (6) Disclosure of whether any principal officer has
2445	2445	23 ever filed for bankruptcy or defaulted on spousal support
2446	2446	24 or child support obligation;
2447	2447	25 (7) A resume for each principal officer, including
2448	2448	26 whether that person has an academic degree, certification,
2449	2449
2450	2450
2451	2451
2452	2452
2453	2453
2454	2454	SB3940 - 68 - LRB103 40496 RJT 72952 b
2455	2455
2456	2456
2457	2457	SB3940- 69 -LRB103 40496 RJT 72952 b SB3940 - 69 - LRB103 40496 RJT 72952 b
2458	2458	SB3940 - 69 - LRB103 40496 RJT 72952 b
2459	2459	1 or relevant experience with a cannabis business
2460	2460	2 establishment or in a related industry;
2461	2461	3 (8) A description of the training and education that
2462	2462	4 will be provided to dispensing organization agents;
2463	2463	5 (9) A copy of the proposed operating bylaws;
2464	2464	6 (10) A copy of the proposed business plan that
2465	2465	7 complies with the requirements in this Act, including, at
2466	2466	8 a minimum, the following:
2467	2467	9 (A) A description of services to be offered; and
2468	2468	10 (B) A description of the process of dispensing
2469	2469	11 cannabis;
2470	2470	12 (11) A copy of the proposed security plan that
2471	2471	13 complies with the requirements in this Article, including:
2472	2472	14 (A) The process or controls that will be
2473	2473	15 implemented to monitor the dispensary, secure the
2474	2474	16 premises, agents, and currency, and prevent the
2475	2475	17 diversion, theft, or loss of cannabis; and
2476	2476	18 (B) The process to ensure that access to the
2477	2477	19 restricted access areas is restricted to, registered
2478	2478	20 agents, service professionals, transporting
2479	2479	21 organization agents, Department inspectors, and
2480	2480	22 security personnel;
2481	2481	23 (12) A proposed inventory control plan that complies
2482	2482	24 with this Section;
2483	2483	25 (13) A proposed floor plan, a square footage estimate,
2484	2484	26 and a description of proposed security devices, including,
2485	2485
2486	2486
2487	2487
2488	2488
2489	2489
2490	2490	SB3940 - 69 - LRB103 40496 RJT 72952 b
2491	2491
2492	2492
2493	2493	SB3940- 70 -LRB103 40496 RJT 72952 b SB3940 - 70 - LRB103 40496 RJT 72952 b
2494	2494	SB3940 - 70 - LRB103 40496 RJT 72952 b
2495	2495	1 without limitation, cameras, motion detectors, servers,
2496	2496	2 video storage capabilities, and alarm service providers;
2497	2497	3 (14) The name, address, social security number, and
2498	2498	4 date of birth of each principal officer and board member
2499	2499	5 of the dispensing organization; each of those individuals
2500	2500	6 shall be at least 21 years of age;
2501	2501	7 (15) Evidence of the applicant's status as a Social
2502	2502	8 Equity Applicant, if applicable, and whether a Social
2503	2503	9 Equity Applicant plans to apply for a loan or grant issued
2504	2504	10 by the Department of Commerce and Economic Opportunity;
2505	2505	11 (16) The address, telephone number, and email address
2506	2506	12 of the applicant's principal place of business, if
2507	2507	13 applicable. A post office box is not permitted;
2508	2508	14 (17) Written summaries of any information regarding
2509	2509	15 instances in which a business or not-for-profit that a
2510	2510	16 prospective board member previously managed or served on
2511	2511	17 were fined or censured, or any instances in which a
2512	2512	18 business or not-for-profit that a prospective board member
2513	2513	19 previously managed or served on had its registration
2514	2514	20 suspended or revoked in any administrative or judicial
2515	2515	21 proceeding;
2516	2516	22 (18) A plan for community engagement;
2517	2517	23 (19) Procedures to ensure accurate recordkeeping and
2518	2518	24 security measures that are in accordance with this Article
2519	2519	25 and Department rules;
2520	2520	26 (20) The estimated volume of cannabis it plans to
2521	2521
2522	2522
2523	2523
2524	2524
2525	2525
2526	2526	SB3940 - 70 - LRB103 40496 RJT 72952 b
2527	2527
2528	2528
2529	2529	SB3940- 71 -LRB103 40496 RJT 72952 b SB3940 - 71 - LRB103 40496 RJT 72952 b
2530	2530	SB3940 - 71 - LRB103 40496 RJT 72952 b
2531	2531	1 store at the dispensary;
2532	2532	2 (21) A description of the features that will provide
2533	2533	3 accessibility to purchasers as required by the Americans
2534	2534	4 with Disabilities Act;
2535	2535	5 (22) A detailed description of air treatment systems
2536	2536	6 that will be installed to reduce odors;
2537	2537	7 (23) A reasonable assurance that the issuance of a
2538	2538	8 license will not have a detrimental impact on the
2539	2539	9 community in which the applicant wishes to locate;
2540	2540	10 (24) The dated signature of each principal officer;
2541	2541	11 (25) A description of the enclosed, locked facility
2542	2542	12 where cannabis will be stored by the dispensing
2543	2543	13 organization;
2544	2544	14 (26) Signed statements from each dispensing
2545	2545	15 organization agent stating that he or she will not divert
2546	2546	16 cannabis;
2547	2547	17 (27) The number of licenses it is applying for in each
2548	2548	18 BLS Region;
2549	2549	19 (28) A diversity plan that includes a narrative of at
2550	2550	20 least 2,500 words that establishes a goal of diversity in
2551	2551	21 ownership, management, employment, and contracting to
2552	2552	22 ensure that diverse participants and groups are afforded
2553	2553	23 equality of opportunity;
2554	2554	24 (29) A contract with a private security contractor
2555	2555	25 agency that is licensed under Section 10-5 of the Private
2556	2556	26 Detective, Private Alarm, Private Security, Fingerprint
2557	2557
2558	2558
2559	2559
2560	2560
2561	2561
2562	2562	SB3940 - 71 - LRB103 40496 RJT 72952 b
2563	2563
2564	2564
2565	2565	SB3940- 72 -LRB103 40496 RJT 72952 b SB3940 - 72 - LRB103 40496 RJT 72952 b
2566	2566	SB3940 - 72 - LRB103 40496 RJT 72952 b
2567	2567	1 Vendor, and Locksmith Act of 2004 in order for the
2568	2568	2 dispensary to have adequate security at its facility; and
2569	2569	3 (30) Other information deemed necessary by the
2570	2570	4 Illinois Cannabis Regulation Oversight Officer to conduct
2571	2571	5 the disparity and availability study referenced in
2572	2572	6 subsection (e) of Section 5-45.
2573	2573	7 (e) An applicant who receives a Conditional Adult Use
2574	2574	8 Dispensing Organization License under this Section has 180
2575	2575	9 days from the date of award to identify a physical location for
2576	2576	10 the dispensing organization retail storefront. The applicant
2577	2577	11 shall provide evidence that the location is not within 1,500
2578	2578	12 feet of an existing dispensing organization, unless the
2579	2579	13 applicant is a Social Equity Applicant or Social Equity
2580	2580	14 Justice Involved Applicant located or seeking to locate within
2581	2581	15 1,500 feet of a dispensing organization licensed under Section
2582	2582	16 15-15 or Section 15-20. If an applicant is unable to find a
2583	2583	17 suitable physical address in the opinion of the Department
2584	2584	18 within 180 days of the issuance of the Conditional Adult Use
2585	2585	19 Dispensing Organization License, the Department may extend the
2586	2586	20 period for finding a physical address an additional 540 days
2587	2587	21 if the Conditional Adult Use Dispensing Organization License
2588	2588	22 holder demonstrates concrete attempts to secure a location and
2589	2589	23 a hardship. If the Department denies the extension or the
2590	2590	24 Conditional Adult Use Dispensing Organization License holder
2591	2591	25 is unable to find a location within 720 days of being awarded a
2592	2592	26 conditional license and then becomes operational within 120
2593	2593
2594	2594
2595	2595
2596	2596
2597	2597
2598	2598	SB3940 - 72 - LRB103 40496 RJT 72952 b
2599	2599
2600	2600
2601	2601	SB3940- 73 -LRB103 40496 RJT 72952 b SB3940 - 73 - LRB103 40496 RJT 72952 b
2602	2602	SB3940 - 73 - LRB103 40496 RJT 72952 b
2603	2603	1 days of finding a location, or is unable to become operational
2604	2604	2 within 720 days of being awarded a conditional license, the
2605	2605	3 Department shall rescind the conditional license and award it
2606	2606	4 to the next highest scoring applicant in the BLS Region for
2607	2607	5 which the license was assigned, provided the applicant
2608	2608	6 receiving the license: (i) confirms a continued interest in
2609	2609	7 operating a dispensing organization; (ii) can provide evidence
2610	2610	8 that the applicant continues to meet all requirements for
2611	2611	9 holding a Conditional Adult Use Dispensing Organization
2612	2612	10 License set forth in this Act; and (iii) has not otherwise
2613	2613	11 become ineligible to be awarded a dispensing organization
2614	2614	12 license. If the new awardee is unable to accept the
2615	2615	13 Conditional Adult Use Dispensing Organization License, the
2616	2616	14 Department shall award the Conditional Adult Use Dispensing
2617	2617	15 Organization License to the next highest scoring applicant in
2618	2618	16 the same manner. The new awardee shall be subject to the same
2619	2619	17 required deadlines as provided in this subsection.
2620	2620	18 (e-5) If, within 720 days of being awarded a Conditional
2621	2621	19 Adult Use Dispensing Organization License, a dispensing
2622	2622	20 organization is unable to find a location within the BLS
2623	2623	21 Region in which it was awarded a Conditional Adult Use
2624	2624	22 Dispensing Organization License because no jurisdiction within
2625	2625	23 the BLS Region allows for the operation of an Adult Use
2626	2626	24 Dispensing Organization, the Department of Financial and
2627	2627	25 Professional Regulation may authorize the Conditional Adult
2628	2628	26 Use Dispensing Organization License holder to transfer its
2629	2629
2630	2630
2631	2631
2632	2632
2633	2633
2634	2634	SB3940 - 73 - LRB103 40496 RJT 72952 b
2635	2635
2636	2636
2637	2637	SB3940- 74 -LRB103 40496 RJT 72952 b SB3940 - 74 - LRB103 40496 RJT 72952 b
2638	2638	SB3940 - 74 - LRB103 40496 RJT 72952 b
2639	2639	1 license to a BLS Region specified by the Department.
2640	2640	2 (f) A dispensing organization that is awarded a
2641	2641	3 Conditional Adult Use Dispensing Organization License pursuant
2642	2642	4 to the criteria in Section 15-30 shall not purchase, possess,
2643	2643	5 sell, or dispense cannabis or cannabis-infused products until
2644	2644	6 the person has received an Adult Use Dispensing Organization
2645	2645	7 License issued by the Department pursuant to Section 15-36 of
2646	2646	8 this Act.
2647	2647	9 (g) The Department shall conduct a background check of the
2648	2648	10 prospective organization agents in order to carry out this
2649	2649	11 Article. The Illinois State Police shall charge the applicant
2650	2650	12 a fee for conducting the criminal history record check, which
2651	2651	13 shall be deposited into the State Police Services Fund and
2652	2652	14 shall not exceed the actual cost of the record check. Each
2653	2653	15 person applying as a dispensing organization agent shall
2654	2654	16 submit a full set of fingerprints to the Illinois State Police
2655	2655	17 for the purpose of obtaining a State and federal criminal
2656	2656	18 records check. These fingerprints shall be checked against the
2657	2657	19 fingerprint records now and hereafter, to the extent allowed
2658	2658	20 by law, filed in the Illinois State Police and Federal Bureau
2659	2659	21 of Identification criminal history records databases. The
2660	2660	22 Illinois State Police shall furnish, following positive
2661	2661	23 identification, all Illinois conviction information to the
2662	2662	24 Department.
2663	2663	25 (Source: P.A. 102-98, eff. 7-15-21; 102-538, eff. 8-20-21;
2664	2664	26 102-813, eff. 5-13-22; 103-8, eff. 6-7-23.)
2665	2665
2666	2666
2667	2667
2668	2668
2669	2669
2670	2670	SB3940 - 74 - LRB103 40496 RJT 72952 b
2671	2671
2672	2672
2673	2673	SB3940- 75 -LRB103 40496 RJT 72952 b SB3940 - 75 - LRB103 40496 RJT 72952 b
2674	2674	SB3940 - 75 - LRB103 40496 RJT 72952 b
2675	2675	1 (410 ILCS 705/15-35)
2676	2676	2 Sec. 15-35. Qualifying Applicant Lottery for Conditional
2677	2677	3 Adult Use Dispensing Organization Licenses.
2678	2678	4 (a) In addition to any of the licenses issued under
2679	2679	5 Section 15-15, Section 15-20, Section 15-25, Section 15-30.20,
2680	2680	6 or Section 15-35.10 of this Act, within 10 business days after
2681	2681	7 the resulting final scores for all scored applications
2682	2682	8 pursuant to Sections 15-25 and 15-30 are released, the
2683	2683	9 Department shall issue up to 55 Conditional Adult Use
2684	2684	10 Dispensing Organization Licenses by lot, pursuant to the
2685	2685	11 application process adopted under this Section. In order to be
2686	2686	12 eligible to be awarded a Conditional Adult Use Dispensing
2687	2687	13 Organization License by lot under this Section, a Dispensary
2688	2688	14 Applicant must be a Qualifying Applicant.
2689	2689	15 The licenses issued under this Section shall be awarded in
2690	2690	16 each BLS Region in the following amounts:
2691	2691	17 (1) Bloomington: 1.
2692	2692	18 (2) Cape Girardeau: 1.
2693	2693	19 (3) Carbondale-Marion: 1.
2694	2694	20 (4) Champaign-Urbana: 1.
2695	2695	21 (5) Chicago-Naperville-Elgin: 36.
2696	2696	22 (6) Danville: 1.
2697	2697	23 (7) Davenport-Moline-Rock Island: 1.
2698	2698	24 (8) Decatur: 1.
2699	2699	25 (9) Kankakee: 1.
2700	2700
2701	2701
2702	2702
2703	2703
2704	2704
2705	2705	SB3940 - 75 - LRB103 40496 RJT 72952 b
2706	2706
2707	2707
2708	2708	SB3940- 76 -LRB103 40496 RJT 72952 b SB3940 - 76 - LRB103 40496 RJT 72952 b
2709	2709	SB3940 - 76 - LRB103 40496 RJT 72952 b
2710	2710	1 (10) Peoria: 2.
2711	2711	2 (11) Rockford: 1.
2712	2712	3 (12) St. Louis: 3.
2713	2713	4 (13) Springfield: 1.
2714	2714	5 (14) Northwest Illinois nonmetropolitan: 1.
2715	2715	6 (15) West Central Illinois nonmetropolitan: 1.
2716	2716	7 (16) East Central Illinois nonmetropolitan: 1.
2717	2717	8 (17) South Illinois nonmetropolitan: 1.
2718	2718	9 (a-5) Prior to issuing licenses under subsection (a), the
2719	2719	10 Department may adopt rules through emergency rulemaking in
2720	2720	11 accordance with subsection (kk) of Section 5-45 of the
2721	2721	12 Illinois Administrative Procedure Act. The General Assembly
2722	2722	13 finds that the adoption of rules to regulate cannabis use is
2723	2723	14 deemed an emergency and necessary for the public interest,
2724	2724	15 safety, and welfare.
2725	2725	16 (b) The Department shall distribute the available licenses
2726	2726	17 established under this Section subject to the following:
2727	2727	18 (1) The drawing by lot for all available licenses
2728	2728	19 issued under this Section shall occur on the same day when
2729	2729	20 practicable.
2730	2730	21 (2) Within each BLS Region, the first Qualifying
2731	2731	22 Applicant drawn will have the first right to an available
2732	2732	23 license. The second Qualifying Applicant drawn will have
2733	2733	24 the second right to an available license. The same pattern
2734	2734	25 will continue for each subsequent Qualifying Applicant
2735	2735	26 drawn.
2736	2736
2737	2737
2738	2738
2739	2739
2740	2740
2741	2741	SB3940 - 76 - LRB103 40496 RJT 72952 b
2742	2742
2743	2743
2744	2744	SB3940- 77 -LRB103 40496 RJT 72952 b SB3940 - 77 - LRB103 40496 RJT 72952 b
2745	2745	SB3940 - 77 - LRB103 40496 RJT 72952 b
2746	2746	1 (3) The process for distributing available licenses
2747	2747	2 under this Section shall be recorded by the Department in
2748	2748	3 a format selected by the Department.
2749	2749	4 (4) A Dispensary Applicant is prohibited from becoming
2750	2750	5 a Qualifying Applicant if a principal officer resigns
2751	2751	6 after the resulting final scores for all scored
2752	2752	7 applications pursuant to Sections 15-25 and 15-30 are
2753	2753	8 released.
2754	2754	9 (5) No Qualifying Applicant may be awarded more than 2
2755	2755	10 Conditional Adult Use Dispensing Organization Licenses at
2756	2756	11 the conclusion of a lottery conducted under this Section.
2757	2757	12 (6) No individual may be listed as a principal officer
2758	2758	13 of more than 2 Conditional Adult Use Dispensing
2759	2759	14 Organization Licenses awarded under this Section.
2760	2760	15 (7) If, upon being selected for an available license
2761	2761	16 established under this Section, a Qualifying Applicant
2762	2762	17 exceeds the limits under paragraph (5) or (6), the
2763	2763	18 Qualifying Applicant must choose which license to abandon
2764	2764	19 and notify the Department in writing within 5 business
2765	2765	20 days. If the Qualifying Applicant does not notify the
2766	2766	21 Department as required, the Department shall refuse to
2767	2767	22 issue the Qualifying Applicant all available licenses
2768	2768	23 established under this Section obtained by lot in all BLS
2769	2769	24 Regions.
2770	2770	25 (8) If, upon being selected for an available license
2771	2771	26 established under this Section, a Qualifying Applicant has
2772	2772
2773	2773
2774	2774
2775	2775
2776	2776
2777	2777	SB3940 - 77 - LRB103 40496 RJT 72952 b
2778	2778
2779	2779
2780	2780	SB3940- 78 -LRB103 40496 RJT 72952 b SB3940 - 78 - LRB103 40496 RJT 72952 b
2781	2781	SB3940 - 78 - LRB103 40496 RJT 72952 b
2782	2782	1 a principal officer who is a principal officer in more
2783	2783	2 than 10 Early Approval Adult Use Dispensing Organization
2784	2784	3 Licenses, Conditional Adult Use Dispensing Organization
2785	2785	4 Licenses, Adult Use Dispensing Organization Licenses, or
2786	2786	5 any combination thereof, the licensees and the Qualifying
2787	2787	6 Applicant listing that principal officer must choose which
2788	2788	7 license to abandon pursuant to subsection (d) of Section
2789	2789	8 15-36 and notify the Department in writing within 5
2790	2790	9 business days. If the Qualifying Applicant or licensees do
2791	2791	10 not notify the Department as required, the Department
2792	2792	11 shall refuse to issue the Qualifying Applicant all
2793	2793	12 available licenses established under this Section obtained
2794	2794	13 by lot in all BLS Regions.
2795	2795	14 (9) All available licenses that have been abandoned
2796	2796	15 under paragraph (7) or (8) shall be distributed to the
2797	2797	16 next Qualifying Applicant drawn by lot.
2798	2798	17 Any and all rights conferred or obtained under this
2799	2799	18 Section shall be limited to the provisions of this Section.
2800	2800	19 (c) An applicant who receives a Conditional Adult Use
2801	2801	20 Dispensing Organization License under this Section has 180
2802	2802	21 days from the date it is awarded to identify a physical
2803	2803	22 location for the dispensing organization's retail storefront.
2804	2804	23 The applicant shall provide evidence that the location is not
2805	2805	24 within 1,500 feet of an existing dispensing organization,
2806	2806	25 unless the applicant is a Social Equity Applicant or Social
2807	2807	26 Equity Justice Involved Applicant located or seeking to locate
2808	2808
2809	2809
2810	2810
2811	2811
2812	2812
2813	2813	SB3940 - 78 - LRB103 40496 RJT 72952 b
2814	2814
2815	2815
2816	2816	SB3940- 79 -LRB103 40496 RJT 72952 b SB3940 - 79 - LRB103 40496 RJT 72952 b
2817	2817	SB3940 - 79 - LRB103 40496 RJT 72952 b
2818	2818	1 within 1,500 feet of a dispensing organization licensed under
2819	2819	2 Section 15-15 or Section 15-20. If an applicant is unable to
2820	2820	3 find a suitable physical address in the opinion of the
2821	2821	4 Department within 180 days from the issuance of the
2822	2822	5 Conditional Adult Use Dispensing Organization License, the
2823	2823	6 Department may extend the period for finding a physical
2824	2824	7 address an additional 540 days if the Conditional Adult Use
2825	2825	8 Dispensing Organization License holder demonstrates a concrete
2826	2826	9 attempt to secure a location and a hardship. If the Department
2827	2827	10 denies the extension or the Conditional Adult Use Dispensing
2828	2828	11 Organization License holder is unable to find a location
2829	2829	12 within 720 days of being awarded a conditional license and
2830	2830	13 then becomes operational within 120 days of finding a
2831	2831	14 location, or is unable to become operational within 720 days
2832	2832	15 of being awarded a Conditional Adult Use Dispensing
2833	2833	16 Organization License under this Section, the Department shall
2834	2834	17 rescind the Conditional Adult Use Dispensing Organization
2835	2835	18 License and award it pursuant to subsection (b), provided the
2836	2836	19 applicant receiving the Conditional Adult Use Dispensing
2837	2837	20 Organization License: (i) confirms a continued interest in
2838	2838	21 operating a dispensing organization; (ii) can provide evidence
2839	2839	22 that the applicant continues to meet all requirements for
2840	2840	23 holding a Conditional Adult Use Dispensing Organization
2841	2841	24 License set forth in this Act; and (iii) has not otherwise
2842	2842	25 become ineligible to be awarded a Conditional Adult Use
2843	2843	26 Dispensing Organization License. If the new awardee is unable
2844	2844
2845	2845
2846	2846
2847	2847
2848	2848
2849	2849	SB3940 - 79 - LRB103 40496 RJT 72952 b
2850	2850
2851	2851
2852	2852	SB3940- 80 -LRB103 40496 RJT 72952 b SB3940 - 80 - LRB103 40496 RJT 72952 b
2853	2853	SB3940 - 80 - LRB103 40496 RJT 72952 b
2854	2854	1 to accept the Conditional Adult Use Dispensing Organization
2855	2855	2 License, the Department shall award the Conditional Adult Use
2856	2856	3 Dispensing Organization License pursuant to subsection (b).
2857	2857	4 The new awardee shall be subject to the same required
2858	2858	5 deadlines as provided in this subsection.
2859	2859	6 (d) If, within 720 days of being awarded a Conditional
2860	2860	7 Adult Use Dispensing Organization License, a dispensing
2861	2861	8 organization is unable to find a location within the BLS
2862	2862	9 Region in which it was awarded a Conditional Adult Use
2863	2863	10 Dispensing Organization License because no jurisdiction within
2864	2864	11 the BLS Region allows for the operation of an Adult Use
2865	2865	12 Dispensing Organization, the Department may authorize the
2866	2866	13 Conditional Adult Use Dispensing Organization License holder
2867	2867	14 to transfer its Conditional Adult Use Dispensing Organization
2868	2868	15 License to a BLS Region specified by the Department.
2869	2869	16 (e) A dispensing organization that is awarded a
2870	2870	17 Conditional Adult Use Dispensing Organization License under
2871	2871	18 this Section shall not purchase, possess, sell, or dispense
2872	2872	19 cannabis or cannabis-infused products until the dispensing
2873	2873	20 organization has received an Adult Use Dispensing Organization
2874	2874	21 License issued by the Department pursuant to Section 15-36.
2875	2875	22 (f) The Department shall conduct a background check of the
2876	2876	23 prospective dispensing organization agents in order to carry
2877	2877	24 out this Article. The Illinois State Police shall charge the
2878	2878	25 applicant a fee for conducting the criminal history record
2879	2879	26 check, which shall be deposited into the State Police Services
2880	2880
2881	2881
2882	2882
2883	2883
2884	2884
2885	2885	SB3940 - 80 - LRB103 40496 RJT 72952 b
2886	2886
2887	2887
2888	2888	SB3940- 81 -LRB103 40496 RJT 72952 b SB3940 - 81 - LRB103 40496 RJT 72952 b
2889	2889	SB3940 - 81 - LRB103 40496 RJT 72952 b
2890	2890	1 Fund and shall not exceed the actual cost of the record check.
2891	2891	2 Each person applying as a dispensing organization agent shall
2892	2892	3 submit a full set of fingerprints to the Illinois State Police
2893	2893	4 for the purpose of obtaining a State and federal criminal
2894	2894	5 records check. These fingerprints shall be checked against the
2895	2895	6 fingerprint records now and hereafter, to the extent allowed
2896	2896	7 by law, filed with the Illinois State Police and the Federal
2897	2897	8 Bureau of Investigation criminal history records databases.
2898	2898	9 The Illinois State Police shall furnish, following positive
2899	2899	10 identification, all Illinois conviction information to the
2900	2900	11 Department.
2901	2901	12 (g) The Department may verify information contained in
2902	2902	13 each application and accompanying documentation to assess the
2903	2903	14 applicant's veracity and fitness to operate a dispensing
2904	2904	15 organization.
2905	2905	16 (h) The Department may, in its discretion, refuse to issue
2906	2906	17 authorization to an applicant who meets any of the following
2907	2907	18 criteria:
2908	2908	19 (1) An applicant who is unqualified to perform the
2909	2909	20 duties required of the applicant.
2910	2910	21 (2) An applicant who fails to disclose or states
2911	2911	22 falsely any information called for in the application.
2912	2912	23 (3) An applicant who has been found guilty of a
2913	2913	24 violation of this Act, who has had any disciplinary order
2914	2914	25 entered against the applicant by the Department, who has
2915	2915	26 entered into a disciplinary or nondisciplinary agreement
2916	2916
2917	2917
2918	2918
2919	2919
2920	2920
2921	2921	SB3940 - 81 - LRB103 40496 RJT 72952 b
2922	2922
2923	2923
2924	2924	SB3940- 82 -LRB103 40496 RJT 72952 b SB3940 - 82 - LRB103 40496 RJT 72952 b
2925	2925	SB3940 - 82 - LRB103 40496 RJT 72952 b
2926	2926	1 with the Department, whose medical cannabis dispensing
2927	2927	2 organization, medical cannabis cultivation organization,
2928	2928	3 Early Approval Adult Use Dispensing Organization License,
2929	2929	4 Early Approval Adult Use Dispensing Organization License
2930	2930	5 at a secondary site, Early Approval Cultivation Center
2931	2931	6 License, Conditional Adult Use Dispensing Organization
2932	2932	7 License, or Adult Use Dispensing Organization License was
2933	2933	8 suspended, restricted, revoked, or denied for just cause,
2934	2934	9 or whose cannabis business establishment license was
2935	2935	10 suspended, restricted, revoked, or denied in any other
2936	2936	11 state.
2937	2937	12 (4) An applicant who has engaged in a pattern or
2938	2938	13 practice of unfair or illegal practices, methods, or
2939	2939	14 activities in the conduct of owning a cannabis business
2940	2940	15 establishment or other business.
2941	2941	16 (i) The Department shall deny issuance of a license under
2942	2942	17 this Section if any principal officer, board member, or person
2943	2943	18 having a financial or voting interest of 5% or greater in the
2944	2944	19 licensee is delinquent in filing any required tax return or
2945	2945	20 paying any amount owed to the State of Illinois.
2946	2946	21 (j) The Department shall verify an applicant's compliance
2947	2947	22 with the requirements of this Article and rules adopted under
2948	2948	23 this Article before issuing a Conditional Adult Use Dispensing
2949	2949	24 Organization License under this Section.
2950	2950	25 (k) If an applicant is awarded a Conditional Adult Use
2951	2951	26 Dispensing Organization License under this Section, the
2952	2952
2953	2953
2954	2954
2955	2955
2956	2956
2957	2957	SB3940 - 82 - LRB103 40496 RJT 72952 b
2958	2958
2959	2959
2960	2960	SB3940- 83 -LRB103 40496 RJT 72952 b SB3940 - 83 - LRB103 40496 RJT 72952 b
2961	2961	SB3940 - 83 - LRB103 40496 RJT 72952 b
2962	2962	1 information and plans provided in the application, including
2963	2963	2 any plans submitted for bonus points, shall become a condition
2964	2964	3 of the Conditional Adult Use Dispensing Organization License
2965	2965	4 and any Adult Use Dispensing Organization License issued to
2966	2966	5 the holder of the Conditional Adult Use Dispensing
2967	2967	6 Organization License, except as otherwise provided by this Act
2968	2968	7 or by rule. A dispensing organization has a duty to disclose
2969	2969	8 any material changes to the application. The Department shall
2970	2970	9 review all material changes disclosed by the dispensing
2971	2971	10 organization and may reevaluate its prior decision regarding
2972	2972	11 the awarding of a Conditional Adult Use Dispensing
2973	2973	12 Organization License, including, but not limited to,
2974	2974	13 suspending or permanently revoking a Conditional Adult Use
2975	2975	14 Dispensing Organization License. Failure to comply with the
2976	2976	15 conditions or requirements in the application may subject the
2977	2977	16 dispensing organization to discipline up to and including
2978	2978	17 suspension or permanent revocation of its authorization or
2979	2979	18 Conditional Adult Use Dispensing Organization License by the
2980	2980	19 Department.
2981	2981	20 (l) If an applicant has not begun operating as a
2982	2982	21 dispensing organization within one year after the issuance of
2983	2983	22 the Conditional Adult Use Dispensing Organization License
2984	2984	23 under this Section, the Department may permanently revoke the
2985	2985	24 Conditional Adult Use Dispensing Organization License and
2986	2986	25 award it to the next highest scoring applicant in the BLS
2987	2987	26 Region if a suitable applicant indicates a continued interest
2988	2988
2989	2989
2990	2990
2991	2991
2992	2992
2993	2993	SB3940 - 83 - LRB103 40496 RJT 72952 b
2994	2994
2995	2995
2996	2996	SB3940- 84 -LRB103 40496 RJT 72952 b SB3940 - 84 - LRB103 40496 RJT 72952 b
2997	2997	SB3940 - 84 - LRB103 40496 RJT 72952 b
2998	2998	1 in the Conditional Adult Use Dispensing Organization License
2999	2999	2 or may begin a new selection process to award a Conditional
3000	3000	3 Adult Use Dispensing Organization License.
3001	3001	4 (Source: P.A. 102-98, eff. 7-15-21; 103-8, eff. 6-7-23.)
3002	3002	5 (410 ILCS 705/15-35.10)
3003	3003	6 Sec. 15-35.10. Social Equity Justice Involved Lottery for
3004	3004	7 Conditional Adult Use Dispensing Organization Licenses.
3005	3005	8 (a) In addition to any of the licenses issued under
3006	3006	9 Section 15-15, Section 15-20, Section 15-25, Section 15-30.20,
3007	3007	10 or Section 15-35, within 10 business days after the resulting
3008	3008	11 final scores for all scored applications pursuant to Sections
3009	3009	12 15-25 and 15-30 are released, the Department shall issue up to
3010	3010	13 55 Conditional Adult Use Dispensing Organization Licenses by
3011	3011	14 lot, pursuant to the application process adopted under this
3012	3012	15 Section. In order to be eligible to be awarded a Conditional
3013	3013	16 Adult Use Dispensing Organization License by lot, a Dispensary
3014	3014	17 Applicant must be a Qualifying Social Equity Justice Involved
3015	3015	18 Applicant.
3016	3016	19 The licenses issued under this Section shall be awarded in
3017	3017	20 each BLS Region in the following amounts:
3018	3018	21 (1) Bloomington: 1.
3019	3019	22 (2) Cape Girardeau: 1.
3020	3020	23 (3) Carbondale-Marion: 1.
3021	3021	24 (4) Champaign-Urbana: 1.
3022	3022	25 (5) Chicago-Naperville-Elgin: 36.
3023	3023
3024	3024
3025	3025
3026	3026
3027	3027
3028	3028	SB3940 - 84 - LRB103 40496 RJT 72952 b
3029	3029
3030	3030
3031	3031	SB3940- 85 -LRB103 40496 RJT 72952 b SB3940 - 85 - LRB103 40496 RJT 72952 b
3032	3032	SB3940 - 85 - LRB103 40496 RJT 72952 b
3033	3033	1 (6) Danville: 1.
3034	3034	2 (7) Davenport-Moline-Rock Island: 1.
3035	3035	3 (8) Decatur: 1.
3036	3036	4 (9) Kankakee: 1.
3037	3037	5 (10) Peoria: 2.
3038	3038	6 (11) Rockford: 1.
3039	3039	7 (12) St. Louis: 3.
3040	3040	8 (13) Springfield: 1.
3041	3041	9 (14) Northwest Illinois nonmetropolitan: 1.
3042	3042	10 (15) West Central Illinois nonmetropolitan: 1.
3043	3043	11 (16) East Central Illinois nonmetropolitan: 1.
3044	3044	12 (17) South Illinois nonmetropolitan: 1.
3045	3045	13 (a-5) Prior to issuing licenses under subsection (a), the
3046	3046	14 Department may adopt rules through emergency rulemaking in
3047	3047	15 accordance with subsection (kk) of Section 5-45 of the
3048	3048	16 Illinois Administrative Procedure Act. The General Assembly
3049	3049	17 finds that the adoption of rules to regulate cannabis use is
3050	3050	18 deemed an emergency and necessary for the public interest,
3051	3051	19 safety, and welfare.
3052	3052	20 (b) The Department shall distribute the available licenses
3053	3053	21 established under this Section subject to the following:
3054	3054	22 (1) The drawing by lot for all available licenses
3055	3055	23 established under this Section shall occur on the same day
3056	3056	24 when practicable.
3057	3057	25 (2) Within each BLS Region, the first Qualifying
3058	3058	26 Social Equity Justice Involved Applicant drawn will have
3059	3059
3060	3060
3061	3061
3062	3062
3063	3063
3064	3064	SB3940 - 85 - LRB103 40496 RJT 72952 b
3065	3065
3066	3066
3067	3067	SB3940- 86 -LRB103 40496 RJT 72952 b SB3940 - 86 - LRB103 40496 RJT 72952 b
3068	3068	SB3940 - 86 - LRB103 40496 RJT 72952 b
3069	3069	1 the first right to an available license. The second
3070	3070	2 Qualifying Social Equity Justice Involved Applicant drawn
3071	3071	3 will have the second right to an available license. The
3072	3072	4 same pattern will continue for each subsequent applicant
3073	3073	5 drawn.
3074	3074	6 (3) The process for distributing available licenses
3075	3075	7 under this Section shall be recorded by the Department in
3076	3076	8 a format selected by the Department.
3077	3077	9 (4) A Dispensary Applicant is prohibited from becoming
3078	3078	10 a Qualifying Social Equity Justice Involved Applicant if a
3079	3079	11 principal officer resigns after the resulting final scores
3080	3080	12 for all scored applications pursuant to Sections 15-25 and
3081	3081	13 15-30 are released.
3082	3082	14 (5) No Qualifying Social Equity Justice Involved
3083	3083	15 Applicant may be awarded more than 2 Conditional Adult Use
3084	3084	16 Dispensing Organization Licenses at the conclusion of a
3085	3085	17 lottery conducted under this Section.
3086	3086	18 (6) No individual may be listed as a principal officer
3087	3087	19 of more than 2 Conditional Adult Use Dispensing
3088	3088	20 Organization Licenses awarded under this Section.
3089	3089	21 (7) If, upon being selected for an available license
3090	3090	22 established under this Section, a Qualifying Social Equity
3091	3091	23 Justice Involved Applicant exceeds the limits under
3092	3092	24 paragraph (5) or (6), the Qualifying Social Equity Justice
3093	3093	25 Involved Applicant must choose which license to abandon
3094	3094	26 and notify the Department in writing within 5 business
3095	3095
3096	3096
3097	3097
3098	3098
3099	3099
3100	3100	SB3940 - 86 - LRB103 40496 RJT 72952 b
3101	3101
3102	3102
3103	3103	SB3940- 87 -LRB103 40496 RJT 72952 b SB3940 - 87 - LRB103 40496 RJT 72952 b
3104	3104	SB3940 - 87 - LRB103 40496 RJT 72952 b
3105	3105	1 days on forms prescribed by the Department. If the
3106	3106	2 Qualifying Social Equity Justice Involved Applicant does
3107	3107	3 not notify the Department as required, the Department
3108	3108	4 shall refuse to issue the Qualifying Social Equity Justice
3109	3109	5 Involved Applicant all available licenses established
3110	3110	6 under this Section obtained by lot in all BLS Regions.
3111	3111	7 (8) If, upon being selected for an available license
3112	3112	8 established under this Section, a Qualifying Social Equity
3113	3113	9 Justice Involved Applicant has a principal officer who is
3114	3114	10 a principal officer in more than 10 Early Approval Adult
3115	3115	11 Use Dispensing Organization Licenses, Conditional Adult
3116	3116	12 Use Dispensing Organization Licenses, Adult Use Dispensing
3117	3117	13 Organization Licenses, or any combination thereof, the
3118	3118	14 licensees and the Qualifying Social Equity Justice
3119	3119	15 Involved Applicant listing that principal officer must
3120	3120	16 choose which license to abandon pursuant to subsection (d)
3121	3121	17 of Section 15-36 and notify the Department in writing
3122	3122	18 within 5 business days on forms prescribed by the
3123	3123	19 Department. If the Dispensary Applicant or licensees do
3124	3124	20 not notify the Department as required, the Department
3125	3125	21 shall refuse to issue the Qualifying Social Equity Justice
3126	3126	22 Involved Applicant all available licenses established
3127	3127	23 under this Section obtained by lot in all BLS Regions.
3128	3128	24 (9) All available licenses that have been abandoned
3129	3129	25 under paragraph (7) or (8) shall be distributed to the
3130	3130	26 next Qualifying Social Equity Justice Involved Applicant
3131	3131
3132	3132
3133	3133
3134	3134
3135	3135
3136	3136	SB3940 - 87 - LRB103 40496 RJT 72952 b
3137	3137
3138	3138
3139	3139	SB3940- 88 -LRB103 40496 RJT 72952 b SB3940 - 88 - LRB103 40496 RJT 72952 b
3140	3140	SB3940 - 88 - LRB103 40496 RJT 72952 b
3141	3141	1 drawn by lot.
3142	3142	2 Any and all rights conferred or obtained under this
3143	3143	3 subsection shall be limited to the provisions of this
3144	3144	4 subsection.
3145	3145	5 (c) An applicant who receives a Conditional Adult Use
3146	3146	6 Dispensing Organization License under this Section has 180
3147	3147	7 days from the date of the award to identify a physical location
3148	3148	8 for the dispensing organization's retail storefront. The
3149	3149	9 applicant shall provide evidence that the location is not
3150	3150	10 within 1,500 feet of an existing dispensing organization,
3151	3151	11 unless the applicant is a Social Equity Applicant or Social
3152	3152	12 Equity Justice Involved Applicant located or seeking to locate
3153	3153	13 within 1,500 feet of a dispensing organization licensed under
3154	3154	14 Section 15-15 or Section 15-20. If an applicant is unable to
3155	3155	15 find a suitable physical address in the opinion of the
3156	3156	16 Department within 180 days from the issuance of the
3157	3157	17 Conditional Adult Use Dispensing Organization License, the
3158	3158	18 Department may extend the period for finding a physical
3159	3159	19 address an additional 540 days if the Conditional Adult Use
3160	3160	20 Dispensing Organization License holder demonstrates a concrete
3161	3161	21 attempt to secure a location and a hardship. If the Department
3162	3162	22 denies the extension or the Conditional Adult Use Dispensing
3163	3163	23 Organization License holder is unable to find a location
3164	3164	24 within 720 days of being awarded a conditional license and
3165	3165	25 then becomes operational within 120 days of finding a
3166	3166	26 location, or is unable to become operational within 720 days
3167	3167
3168	3168
3169	3169
3170	3170
3171	3171
3172	3172	SB3940 - 88 - LRB103 40496 RJT 72952 b
3173	3173
3174	3174
3175	3175	SB3940- 89 -LRB103 40496 RJT 72952 b SB3940 - 89 - LRB103 40496 RJT 72952 b
3176	3176	SB3940 - 89 - LRB103 40496 RJT 72952 b
3177	3177	1 of being awarded a Conditional Adult Use Dispensing
3178	3178	2 Organization License under this Section, the Department shall
3179	3179	3 rescind the Conditional Adult Use Dispensing Organization
3180	3180	4 License and award it pursuant to subsection (b) and notify the
3181	3181	5 new awardee at the email address provided in the awardee's
3182	3182	6 application, provided the applicant receiving the Conditional
3183	3183	7 Adult Use Dispensing Organization License: (i) confirms a
3184	3184	8 continued interest in operating a dispensing organization;
3185	3185	9 (ii) can provide evidence that the applicant continues to meet
3186	3186	10 all requirements for holding a Conditional Adult Use
3187	3187	11 Dispensing Organization License set forth in this Act; and
3188	3188	12 (iii) has not otherwise become ineligible to be awarded a
3189	3189	13 Conditional Adult Use Dispensing Organization License. If the
3190	3190	14 new awardee is unable to accept the Conditional Adult Use
3191	3191	15 Dispensing Organization License, the Department shall award
3192	3192	16 the Conditional Adult Use Dispensing Organization License
3193	3193	17 pursuant to subsection (b). The new awardee shall be subject
3194	3194	18 to the same required deadlines as provided in this subsection.
3195	3195	19 (d) If, within 720 180 days of being awarded a Conditional
3196	3196	20 Adult Use Dispensing Organization License, a dispensing
3197	3197	21 organization is unable to find a location within the BLS
3198	3198	22 Region in which it was awarded a Conditional Adult Use
3199	3199	23 Dispensing Organization License under this Section because no
3200	3200	24 jurisdiction within the BLS Region allows for the operation of
3201	3201	25 an Adult Use Dispensing Organization, the Department may
3202	3202	26 authorize the Conditional Adult Use Dispensing Organization
3203	3203
3204	3204
3205	3205
3206	3206
3207	3207
3208	3208	SB3940 - 89 - LRB103 40496 RJT 72952 b
3209	3209
3210	3210
3211	3211	SB3940- 90 -LRB103 40496 RJT 72952 b SB3940 - 90 - LRB103 40496 RJT 72952 b
3212	3212	SB3940 - 90 - LRB103 40496 RJT 72952 b
3213	3213	1 License holder to transfer its Conditional Adult Use
3214	3214	2 Dispensing Organization License to a BLS Region specified by
3215	3215	3 the Department.
3216	3216	4 (e) A dispensing organization that is awarded a
3217	3217	5 Conditional Adult Use Dispensing Organization License under
3218	3218	6 this Section shall not purchase, possess, sell, or dispense
3219	3219	7 cannabis or cannabis-infused products until the dispensing
3220	3220	8 organization has received an Adult Use Dispensing Organization
3221	3221	9 License issued by the Department pursuant to Section 15-36.
3222	3222	10 (f) The Department shall conduct a background check of the
3223	3223	11 prospective dispensing organization agents in order to carry
3224	3224	12 out this Article. The Illinois State Police shall charge the
3225	3225	13 applicant a fee for conducting the criminal history record
3226	3226	14 check, which shall be deposited into the State Police Services
3227	3227	15 Fund and shall not exceed the actual cost of the record check.
3228	3228	16 Each person applying as a dispensing organization agent shall
3229	3229	17 submit a full set of fingerprints to the Illinois State Police
3230	3230	18 for the purpose of obtaining a State and federal criminal
3231	3231	19 records check. These fingerprints shall be checked against the
3232	3232	20 fingerprint records now and hereafter, to the extent allowed
3233	3233	21 by law, filed with the Illinois State Police and the Federal
3234	3234	22 Bureau of Investigation criminal history records databases.
3235	3235	23 The Illinois State Police shall furnish, following positive
3236	3236	24 identification, all Illinois conviction information to the
3237	3237	25 Department.
3238	3238	26 (g) The Department may verify information contained in
3239	3239
3240	3240
3241	3241
3242	3242
3243	3243
3244	3244	SB3940 - 90 - LRB103 40496 RJT 72952 b
3245	3245
3246	3246
3247	3247	SB3940- 91 -LRB103 40496 RJT 72952 b SB3940 - 91 - LRB103 40496 RJT 72952 b
3248	3248	SB3940 - 91 - LRB103 40496 RJT 72952 b
3249	3249	1 each application and accompanying documentation to assess the
3250	3250	2 applicant's veracity and fitness to operate a dispensing
3251	3251	3 organization.
3252	3252	4 (h) The Department may, in its discretion, refuse to issue
3253	3253	5 an authorization to an applicant who meets any of the
3254	3254	6 following criteria:
3255	3255	7 (1) An applicant who is unqualified to perform the
3256	3256	8 duties required of the applicant.
3257	3257	9 (2) An applicant who fails to disclose or states
3258	3258	10 falsely any information called for in the application.
3259	3259	11 (3) An applicant who has been found guilty of a
3260	3260	12 violation of this Act, who has had any disciplinary order
3261	3261	13 entered against the applicant by the Department, who has
3262	3262	14 entered into a disciplinary or nondisciplinary agreement
3263	3263	15 with the Department, whose medical cannabis dispensing
3264	3264	16 organization, medical cannabis cultivation organization,
3265	3265	17 Early Approval Adult Use Dispensing Organization License,
3266	3266	18 Early Approval Adult Use Dispensing Organization License
3267	3267	19 at a secondary site, Early Approval Cultivation Center
3268	3268	20 License, Conditional Adult Use Dispensing Organization
3269	3269	21 License, or Adult Use Dispensing Organization License was
3270	3270	22 suspended, restricted, revoked, or denied for just cause,
3271	3271	23 or whose cannabis business establishment license was
3272	3272	24 suspended, restricted, revoked, or denied in any other
3273	3273	25 state.
3274	3274	26 (4) An applicant who has engaged in a pattern or
3275	3275
3276	3276
3277	3277
3278	3278
3279	3279
3280	3280	SB3940 - 91 - LRB103 40496 RJT 72952 b
3281	3281
3282	3282
3283	3283	SB3940- 92 -LRB103 40496 RJT 72952 b SB3940 - 92 - LRB103 40496 RJT 72952 b
3284	3284	SB3940 - 92 - LRB103 40496 RJT 72952 b
3285	3285	1 practice of unfair or illegal practices, methods, or
3286	3286	2 activities in the conduct of owning a cannabis business
3287	3287	3 establishment or other business.
3288	3288	4 (i) The Department shall deny the license if any principal
3289	3289	5 officer, board member, or person having a financial or voting
3290	3290	6 interest of 5% or greater in the licensee is delinquent in
3291	3291	7 filing any required tax return or paying any amount owed to the
3292	3292	8 State of Illinois.
3293	3293	9 (j) The Department shall verify an applicant's compliance
3294	3294	10 with the requirements of this Article and rules adopted under
3295	3295	11 this Article before issuing a Conditional Adult Use Dispensing
3296	3296	12 Organization License.
3297	3297	13 (k) If an applicant is awarded a Conditional Adult Use
3298	3298	14 Dispensing Organization License under this Section, the
3299	3299	15 information and plans provided in the application, including
3300	3300	16 any plans submitted for bonus points, shall become a condition
3301	3301	17 of the Conditional Adult Use Dispensing Organization License
3302	3302	18 and any Adult Use Dispensing Organization License issued to
3303	3303	19 the holder of the Conditional Adult Use Dispensing
3304	3304	20 Organization License, except as otherwise provided by this Act
3305	3305	21 or by rule. Dispensing organizations have a duty to disclose
3306	3306	22 any material changes to the application. The Department shall
3307	3307	23 review all material changes disclosed by the dispensing
3308	3308	24 organization and may reevaluate its prior decision regarding
3309	3309	25 the awarding of a Conditional Adult Use Dispensing
3310	3310	26 Organization License, including, but not limited to,
3311	3311
3312	3312
3313	3313
3314	3314
3315	3315
3316	3316	SB3940 - 92 - LRB103 40496 RJT 72952 b
3317	3317
3318	3318
3319	3319	SB3940- 93 -LRB103 40496 RJT 72952 b SB3940 - 93 - LRB103 40496 RJT 72952 b
3320	3320	SB3940 - 93 - LRB103 40496 RJT 72952 b
3321	3321	1 suspending or permanently revoking a Conditional Adult Use
3322	3322	2 Dispensing Organization License. Failure to comply with the
3323	3323	3 conditions or requirements in the application may subject the
3324	3324	4 dispensing organization to discipline up to and including
3325	3325	5 suspension or permanent revocation of its authorization or
3326	3326	6 Conditional Adult Use Dispensing Organization License by the
3327	3327	7 Department.
3328	3328	8 (l) If an applicant has not begun operating as a
3329	3329	9 dispensing organization within one year after the issuance of
3330	3330	10 the Conditional Adult Use Dispensing Organization License
3331	3331	11 under this Section, the Department may permanently revoke the
3332	3332	12 Conditional Adult Use Dispensing Organization License and
3333	3333	13 award it to the next highest scoring applicant in the BLS
3334	3334	14 Region if a suitable applicant indicates a continued interest
3335	3335	15 in the Conditional Adult Use Dispensing Organization License
3336	3336	16 or may begin a new selection process to award a Conditional
3337	3337	17 Adult Use Dispensing Organization License.
3338	3338	18 (Source: P.A. 102-98, eff. 7-15-21; 103-8, eff. 6-7-23.)
3339	3339	19 (410 ILCS 705/15-40)
3340	3340	20 Sec. 15-40. Dispensing organization agent identification
3341	3341	21 card; agent training.
3342	3342	22 (a) The Department shall:
3343	3343	23 (1) verify the information contained in an application
3344	3344	24 or renewal for a dispensing organization agent
3345	3345	25 identification card submitted under this Article, and
3346	3346
3347	3347
3348	3348
3349	3349
3350	3350
3351	3351	SB3940 - 93 - LRB103 40496 RJT 72952 b
3352	3352
3353	3353
3354	3354	SB3940- 94 -LRB103 40496 RJT 72952 b SB3940 - 94 - LRB103 40496 RJT 72952 b
3355	3355	SB3940 - 94 - LRB103 40496 RJT 72952 b
3356	3356	1 approve or deny an application or renewal, within 30 days
3357	3357	2 of receiving a completed application or renewal
3358	3358	3 application and all supporting documentation required by
3359	3359	4 rule;
3360	3360	5 (2) issue a dispensing organization agent
3361	3361	6 identification card to a qualifying agent within 15
3362	3362	7 business days of approving the application or renewal;
3363	3363	8 (3) enter the registry identification number of the
3364	3364	9 dispensing organization where the agent works;
3365	3365	10 (4) within one year from the effective date of this
3366	3366	11 Act, allow for an electronic application process and
3367	3367	12 provide a confirmation by electronic or other methods that
3368	3368	13 an application has been submitted; and
3369	3369	14 (5) collect a $100 nonrefundable fee from the
3370	3370	15 applicant to be deposited into the Cannabis Regulation
3371	3371	16 Fund.
3372	3372	17 (b) A dispensing organization agent must keep his or her
3373	3373	18 identification card visible at all times when in the
3374	3374	19 dispensary.
3375	3375	20 (c) The dispensing organization agent identification cards
3376	3376	21 shall contain the following:
3377	3377	22 (1) the name of the cardholder;
3378	3378	23 (2) the date of issuance and expiration date of the
3379	3379	24 dispensing organization agent identification cards;
3380	3380	25 (3) a random 10-digit alphanumeric identification
3381	3381	26 number containing at least 4 numbers and at least 4
3382	3382
3383	3383
3384	3384
3385	3385
3386	3386
3387	3387	SB3940 - 94 - LRB103 40496 RJT 72952 b
3388	3388
3389	3389
3390	3390	SB3940- 95 -LRB103 40496 RJT 72952 b SB3940 - 95 - LRB103 40496 RJT 72952 b
3391	3391	SB3940 - 95 - LRB103 40496 RJT 72952 b
3392	3392	1 letters that is unique to the cardholder; and
3393	3393	2 (4) a photograph of the cardholder.
3394	3394	3 (d) The dispensing organization agent identification cards
3395	3395	4 shall be immediately returned to the dispensing organization
3396	3396	5 upon termination of employment.
3397	3397	6 (e) The Department may not shall not issue an agent
3398	3398	7 identification card if the applicant is delinquent in filing
3399	3399	8 any required tax returns or paying any amounts owed to the
3400	3400	9 State of Illinois.
3401	3401	10 (f) Any card lost by a dispensing organization agent shall
3402	3402	11 be reported to the Illinois State Police and the Department
3403	3403	12 immediately upon discovery of the loss.
3404	3404	13 (g) An applicant shall be denied a dispensing organization
3405	3405	14 agent identification card renewal if he or she fails to
3406	3406	15 complete the training provided for in this Section.
3407	3407	16 (h) A dispensing organization agent shall only be required
3408	3408	17 to hold one card for the same employer regardless of what type
3409	3409	18 of dispensing organization license the employer holds.
3410	3410	19 (i) Cannabis retail sales training requirements.
3411	3411	20 (1) Within 90 days of September 1, 2019, or 90 days of
3412	3412	21 employment, whichever is later, all owners, managers,
3413	3413	22 employees, and agents involved in the handling or sale of
3414	3414	23 cannabis or cannabis-infused product employed by an adult
3415	3415	24 use dispensing organization or medical cannabis dispensing
3416	3416	25 organization as defined in Section 10 of the Compassionate
3417	3417	26 Use of Medical Cannabis Program Act shall attend and
3418	3418
3419	3419
3420	3420
3421	3421
3422	3422
3423	3423	SB3940 - 95 - LRB103 40496 RJT 72952 b
3424	3424
3425	3425
3426	3426	SB3940- 96 -LRB103 40496 RJT 72952 b SB3940 - 96 - LRB103 40496 RJT 72952 b
3427	3427	SB3940 - 96 - LRB103 40496 RJT 72952 b
3428	3428	1 successfully complete a Responsible Vendor Program.
3429	3429	2 (2) Each owner, manager, employee, and agent of an
3430	3430	3 adult use dispensing organization or medical cannabis
3431	3431	4 dispensing organization shall successfully complete the
3432	3432	5 program annually.
3433	3433	6 (3) Responsible Vendor Program Training modules shall
3434	3434	7 include at least 2 hours of instruction time approved by
3435	3435	8 the Department including:
3436	3436	9 (i) Health and safety concerns of cannabis use,
3437	3437	10 including the responsible use of cannabis, its
3438	3438	11 physical effects, onset of physiological effects,
3439	3439	12 recognizing signs of impairment, and appropriate
3440	3440	13 responses in the event of overconsumption.
3441	3441	14 (ii) Training on laws and regulations on driving
3442	3442	15 while under the influence and operating a watercraft
3443	3443	16 or snowmobile while under the influence.
3444	3444	17 (iii) Sales to minors prohibition. Training shall
3445	3445	18 cover all relevant Illinois laws and rules.
3446	3446	19 (iv) Quantity limitations on sales to purchasers.
3447	3447	20 Training shall cover all relevant Illinois laws and
3448	3448	21 rules.
3449	3449	22 (v) Acceptable forms of identification. Training
3450	3450	23 shall include:
3451	3451	24 (I) How to check identification; and
3452	3452	25 (II) Common mistakes made in verification;
3453	3453	26 (vi) Safe storage of cannabis;
3454	3454
3455	3455
3456	3456
3457	3457
3458	3458
3459	3459	SB3940 - 96 - LRB103 40496 RJT 72952 b
3460	3460
3461	3461
3462	3462	SB3940- 97 -LRB103 40496 RJT 72952 b SB3940 - 97 - LRB103 40496 RJT 72952 b
3463	3463	SB3940 - 97 - LRB103 40496 RJT 72952 b
3464	3464	1 (vii) Compliance with all inventory tracking
3465	3465	2 system regulations;
3466	3466	3 (viii) Waste handling, management, and disposal;
3467	3467	4 (ix) Health and safety standards;
3468	3468	5 (x) Maintenance of records;
3469	3469	6 (xi) Security and surveillance requirements;
3470	3470	7 (xii) Permitting inspections by State and local
3471	3471	8 licensing and enforcement authorities;
3472	3472	9 (xiii) Privacy issues;
3473	3473	10 (xiv) Packaging and labeling requirement for sales
3474	3474	11 to purchasers; and
3475	3475	12 (xv) Other areas as determined by rule.
3476	3476	13 (j) Blank.
3477	3477	14 (k) Upon the successful completion of the Responsible
3478	3478	15 Vendor Program, the provider shall deliver proof of completion
3479	3479	16 either through mail or electronic communication to the
3480	3480	17 dispensing organization, which shall retain a copy of the
3481	3481	18 certificate.
3482	3482	19 (l) The license of a dispensing organization or medical
3483	3483	20 cannabis dispensing organization whose owners, managers,
3484	3484	21 employees, or agents fail to comply with this Section may be
3485	3485	22 suspended or permanently revoked under Section 15-145 or may
3486	3486	23 face other disciplinary action.
3487	3487	24 (m) The regulation of dispensing organization and medical
3488	3488	25 cannabis dispensing employer and employee training is an
3489	3489	26 exclusive function of the State, and regulation by a unit of
3490	3490
3491	3491
3492	3492
3493	3493
3494	3494
3495	3495	SB3940 - 97 - LRB103 40496 RJT 72952 b
3496	3496
3497	3497
3498	3498	SB3940- 98 -LRB103 40496 RJT 72952 b SB3940 - 98 - LRB103 40496 RJT 72952 b
3499	3499	SB3940 - 98 - LRB103 40496 RJT 72952 b
3500	3500	1 local government, including a home rule unit, is prohibited.
3501	3501	2 This subsection (m) is a denial and limitation of home rule
3502	3502	3 powers and functions under subsection (h) of Section 6 of
3503	3503	4 Article VII of the Illinois Constitution.
3504	3504	5 (n) Persons seeking Department approval to offer the
3505	3505	6 training required by paragraph (3) of subsection (i) may apply
3506	3506	7 for such approval between August 1 and August 15 of each
3507	3507	8 odd-numbered year in a manner prescribed by the Department.
3508	3508	9 (o) Persons seeking Department approval to offer the
3509	3509	10 training required by paragraph (3) of subsection (i) shall
3510	3510	11 submit a nonrefundable application fee of $2,000 to be
3511	3511	12 deposited into the Cannabis Regulation Fund or a fee as may be
3512	3512	13 set by rule. Any changes made to the training module shall be
3513	3513	14 approved by the Department.
3514	3514	15 (p) The Department may not shall not unreasonably deny
3515	3515	16 approval of a training module that meets all the requirements
3516	3516	17 of paragraph (3) of subsection (i). A denial of approval shall
3517	3517	18 include a detailed description of the reasons for the denial.
3518	3518	19 (q) Any person approved to provide the training required
3519	3519	20 by paragraph (3) of subsection (i) shall submit an application
3520	3520	21 for re-approval between August 1 and August 15 of each
3521	3521	22 odd-numbered year and include a nonrefundable application fee
3522	3522	23 of $2,000 to be deposited into the Cannabis Regulation Fund or
3523	3523	24 a fee as may be set by rule.
3524	3524	25 (r) All persons applying to become or renewing their
3525	3525	26 registrations to be agents, including agents-in-charge and
3526	3526
3527	3527
3528	3528
3529	3529
3530	3530
3531	3531	SB3940 - 98 - LRB103 40496 RJT 72952 b
3532	3532
3533	3533
3534	3534	SB3940- 99 -LRB103 40496 RJT 72952 b SB3940 - 99 - LRB103 40496 RJT 72952 b
3535	3535	SB3940 - 99 - LRB103 40496 RJT 72952 b
3536	3536	1 principal officers, shall disclose any disciplinary action
3537	3537	2 taken against them that may have occurred in Illinois, another
3538	3538	3 state, or another country in relation to their employment at a
3539	3539	4 cannabis business establishment or at any cannabis cultivation
3540	3540	5 center, processor, infuser, dispensary, or other cannabis
3541	3541	6 business establishment.
3542	3542	7 (s) An agent applicant may begin employment at a
3543	3543	8 dispensing organization while the agent applicant's
3544	3544	9 identification card application is pending. Upon approval, the
3545	3545	10 Department shall issue the agent's identification card to the
3546	3546	11 agent. If denied, the dispensing organization and the agent
3547	3547	12 applicant shall be notified and the agent applicant must cease
3548	3548	13 all activity at the dispensing organization immediately.
3549	3549	14 (t) The Department and the Department of Agriculture may
3550	3550	15 develop and implement an integrated system to issue an agent
3551	3551	16 identification card which identifies a dispensary agent
3552	3552	17 licensed by the Department as well as any cultivator, craft
3553	3553	18 grower, transporter, community college program or infuser
3554	3554	19 license or registration the agent may simultaneously hold.
3555	3555	20 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
3556	3556	21 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
3557	3557	22 5-13-22.)
3558	3558	23 (410 ILCS 705/15-50)
3559	3559	24 Sec. 15-50. Disclosure of ownership and control.
3560	3560	25 (a) Each dispensing organization applicant and licensee
3561	3561
3562	3562
3563	3563
3564	3564
3565	3565
3566	3566	SB3940 - 99 - LRB103 40496 RJT 72952 b
3567	3567
3568	3568
3569	3569	SB3940- 100 -LRB103 40496 RJT 72952 b SB3940 - 100 - LRB103 40496 RJT 72952 b
3570	3570	SB3940 - 100 - LRB103 40496 RJT 72952 b
3571	3571	1 shall file and maintain a Table of Organization, Ownership,
3572	3572	2 and Control with the Department. The Table of Organization,
3573	3573	3 Ownership, and Control shall contain the information required
3574	3574	4 by this Section in sufficient detail to identify all owners,
3575	3575	5 directors, and principal officers, and the title of each
3576	3576	6 principal officer or business entity that, through direct or
3577	3577	7 indirect means, manages, owns, or controls the applicant or
3578	3578	8 licensee.
3579	3579	9 (b) The Table of Organization, Ownership, and Control
3580	3580	10 shall identify the following information:
3581	3581	11 (1) The management structure, ownership, and control
3582	3582	12 of the applicant or license holder including the name of
3583	3583	13 each principal officer or business entity, the office or
3584	3584	14 position held, and the percentage ownership interest, if
3585	3585	15 any. If the business entity has a parent company, the name
3586	3586	16 of each owner, board member, and officer of the parent
3587	3587	17 company and his or her percentage ownership interest in
3588	3588	18 the parent company and the dispensing organization.
3589	3589	19 (2) If the applicant or licensee is a business entity
3590	3590	20 with publicly traded stock, the identification of
3591	3591	21 ownership shall be provided as required in subsection (c).
3592	3592	22 (c) If a business entity identified in subsection (b) is a
3593	3593	23 publicly traded company, the following information shall be
3594	3594	24 provided in the Table of Organization, Ownership, and Control:
3595	3595	25 (1) The name and percentage of ownership interest of
3596	3596	26 each individual or business entity with ownership of more
3597	3597
3598	3598
3599	3599
3600	3600
3601	3601
3602	3602	SB3940 - 100 - LRB103 40496 RJT 72952 b
3603	3603
3604	3604
3605	3605	SB3940- 101 -LRB103 40496 RJT 72952 b SB3940 - 101 - LRB103 40496 RJT 72952 b
3606	3606	SB3940 - 101 - LRB103 40496 RJT 72952 b
3607	3607	1 than 5% of the voting shares of the entity, to the extent
3608	3608	2 such information is known or contained in 13D or 13G
3609	3609	3 Securities and Exchange Commission filings.
3610	3610	4 (2) To the extent known, the names and percentage of
3611	3611	5 interest of ownership of persons who are relatives of one
3612	3612	6 another and who together exercise control over or own more
3613	3613	7 than 10% of the voting shares of the entity.
3614	3614	8 (d) A dispensing organization with a parent company or
3615	3615	9 companies, or partially owned or controlled by another entity
3616	3616	10 must disclose to the Department the relationship and all
3617	3617	11 owners, board members, officers, or individuals with control
3618	3618	12 or management of those entities. A dispensing organization
3619	3619	13 shall not shield its ownership or control from the Department.
3620	3620	14 (e) All principal officers must submit a complete online
3621	3621	15 application with the Department within 14 days of the
3622	3622	16 dispensing organization being licensed by the Department or
3623	3623	17 within 14 days of Department notice of approval as a new
3624	3624	18 principal officer.
3625	3625	19 (f) A principal officer may not allow his or her
3626	3626	20 registration to expire.
3627	3627	21 (g) A dispensing organization separating with a principal
3628	3628	22 officer must do so under this Act. The principal officer must
3629	3629	23 communicate the separation to the Department within 5 business
3630	3630	24 days.
3631	3631	25 (h) A principal officer not in compliance with the
3632	3632	26 requirements of this Act shall be removed from his or her
3633	3633
3634	3634
3635	3635
3636	3636
3637	3637
3638	3638	SB3940 - 101 - LRB103 40496 RJT 72952 b
3639	3639
3640	3640
3641	3641	SB3940- 102 -LRB103 40496 RJT 72952 b SB3940 - 102 - LRB103 40496 RJT 72952 b
3642	3642	SB3940 - 102 - LRB103 40496 RJT 72952 b
3643	3643	1 position with the dispensing organization or shall otherwise
3644	3644	2 terminate his or her affiliation. Failure to do so may subject
3645	3645	3 the dispensing organization to discipline, suspension, or
3646	3646	4 revocation of its license by the Department.
3647	3647	5 (i) It is the responsibility of the dispensing
3648	3648	6 organization and its principal officers to promptly notify the
3649	3649	7 Department of any change of the principal place of business
3650	3650	8 address, hours of operation, change in ownership or control,
3651	3651	9 or a change of the dispensing organization's primary or
3652	3652	10 secondary contact information. Any changes must be made to the
3653	3653	11 Department in writing.
3654	3654	12 (Source: P.A. 101-27, eff. 6-25-19.)
3655	3655	13 (410 ILCS 705/15-70)
3656	3656	14 Sec. 15-70. Operational requirements; prohibitions.
3657	3657	15 (a) A dispensing organization shall operate in accordance
3658	3658	16 with the representations made in its application and license
3659	3659	17 materials. It shall be in compliance with this Act and rules.
3660	3660	18 (b) (Blank). A dispensing organization must include the
3661	3661	19 legal name of the dispensary on the packaging of any cannabis
3662	3662	20 product it sells.
3663	3663	21 (c) All cannabis, cannabis-infused products, and cannabis
3664	3664	22 seeds must be obtained from an Illinois registered adult use
3665	3665	23 cultivation center, craft grower, infuser, or another
3666	3666	24 dispensary.
3667	3667	25 (d) Dispensing organizations are prohibited from selling
3668	3668
3669	3669
3670	3670
3671	3671
3672	3672
3673	3673	SB3940 - 102 - LRB103 40496 RJT 72952 b
3674	3674
3675	3675
3676	3676	SB3940- 103 -LRB103 40496 RJT 72952 b SB3940 - 103 - LRB103 40496 RJT 72952 b
3677	3677	SB3940 - 103 - LRB103 40496 RJT 72952 b
3678	3678	1 any product containing alcohol except tinctures, which must be
3679	3679	2 limited to containers that are no larger than 100 milliliters.
3680	3680	3 (e) A dispensing organization shall inspect and count
3681	3681	4 product received from a transporting organization, adult use
3682	3682	5 cultivation center, craft grower, infuser organization, or
3683	3683	6 other dispensing organization before dispensing it.
3684	3684	7 (f) A dispensing organization may only accept cannabis
3685	3685	8 deliveries into a restricted access area. Deliveries may not
3686	3686	9 be accepted through the public or limited access areas unless
3687	3687	10 otherwise approved by the Department.
3688	3688	11 (g) A dispensing organization shall maintain compliance
3689	3689	12 with State and local building, fire, and zoning requirements
3690	3690	13 or regulations.
3691	3691	14 (h) A dispensing organization shall submit a list to the
3692	3692	15 Department of the names of all service professionals that will
3693	3693	16 work at the dispensary. The list shall include a description
3694	3694	17 of the type of business or service provided. Changes to the
3695	3695	18 service professional list shall be promptly provided. No
3696	3696	19 service professional shall work in the dispensary until the
3697	3697	20 name is provided to the Department on the service professional
3698	3698	21 list.
3699	3699	22 (i) A dispensing organization's license allows for a
3700	3700	23 dispensary to be operated only at a single location.
3701	3701	24 (j) A dispensary may operate between 6 a.m. and 10 p.m.
3702	3702	25 local time.
3703	3703	26 (k) A dispensing organization must keep all lighting
3704	3704
3705	3705
3706	3706
3707	3707
3708	3708
3709	3709	SB3940 - 103 - LRB103 40496 RJT 72952 b
3710	3710
3711	3711
3712	3712	SB3940- 104 -LRB103 40496 RJT 72952 b SB3940 - 104 - LRB103 40496 RJT 72952 b
3713	3713	SB3940 - 104 - LRB103 40496 RJT 72952 b
3714	3714	1 outside and inside the dispensary in good working order and
3715	3715	2 wattage sufficient for security cameras.
3716	3716	3 (l) A dispensing organization must keep all air treatment
3717	3717	4 systems that will be installed to reduce odors in good working
3718	3718	5 order.
3719	3719	6 (m) A dispensing organization must contract with a private
3720	3720	7 security contractor that is licensed under Section 10-5 of the
3721	3721	8 Private Detective, Private Alarm, Private Security,
3722	3722	9 Fingerprint Vendor, and Locksmith Act of 2004 to provide
3723	3723	10 on-site security at all hours of the dispensary's operation.
3724	3724	11 (n) A dispensing organization shall ensure that any
3725	3725	12 building or equipment used by a dispensing organization for
3726	3726	13 the storage or sale of cannabis is maintained in a clean and
3727	3727	14 sanitary condition.
3728	3728	15 (o) The dispensary shall be free from infestation by
3729	3729	16 insects, rodents, or pests.
3730	3730	17 (p) A dispensing organization shall not:
3731	3731	18 (1) Produce or manufacture cannabis;
3732	3732	19 (2) Accept a cannabis product from an adult use
3733	3733	20 cultivation center, craft grower, infuser, dispensing
3734	3734	21 organization, or transporting organization unless it is
3735	3735	22 pre-packaged and labeled in accordance with this Act and
3736	3736	23 any rules that may be adopted pursuant to this Act;
3737	3737	24 (3) Obtain cannabis or cannabis-infused products from
3738	3738	25 outside the State of Illinois;
3739	3739	26 (4) Sell cannabis or cannabis-infused products to a
3740	3740
3741	3741
3742	3742
3743	3743
3744	3744
3745	3745	SB3940 - 104 - LRB103 40496 RJT 72952 b
3746	3746
3747	3747
3748	3748	SB3940- 105 -LRB103 40496 RJT 72952 b SB3940 - 105 - LRB103 40496 RJT 72952 b
3749	3749	SB3940 - 105 - LRB103 40496 RJT 72952 b
3750	3750	1 purchaser unless the dispensing organization is licensed
3751	3751	2 under the Compassionate Use of Medical Cannabis Program
3752	3752	3 Act, and the individual is registered under the
3753	3753	4 Compassionate Use of Medical Cannabis Program or the
3754	3754	5 purchaser has been verified to be 21 years of age or older;
3755	3755	6 (5) Enter into an exclusive agreement with any adult
3756	3756	7 use cultivation center, craft grower, or infuser.
3757	3757	8 Dispensaries shall provide consumers an assortment of
3758	3758	9 products from various cannabis business establishment
3759	3759	10 licensees such that the inventory available for sale at
3760	3760	11 any dispensary from any single cultivation center, craft
3761	3761	12 grower, processor, transporter, or infuser entity shall
3762	3762	13 not be more than 40% of the total inventory available for
3763	3763	14 sale. For the purpose of this subsection, a cultivation
3764	3764	15 center, craft grower, processor, or infuser shall be
3765	3765	16 considered part of the same entity if the licensees share
3766	3766	17 at least one principal officer. The Department may request
3767	3767	18 that a dispensary diversify its products as needed or
3768	3768	19 otherwise discipline a dispensing organization for
3769	3769	20 violating this requirement;
3770	3770	21 (6) Refuse to conduct business with an adult use
3771	3771	22 cultivation center, craft grower, transporting
3772	3772	23 organization, or infuser that has the ability to properly
3773	3773	24 deliver the product and is permitted by the Department of
3774	3774	25 Agriculture, on the same terms as other adult use
3775	3775	26 cultivation centers, craft growers, infusers, or
3776	3776
3777	3777
3778	3778
3779	3779
3780	3780
3781	3781	SB3940 - 105 - LRB103 40496 RJT 72952 b
3782	3782
3783	3783
3784	3784	SB3940- 106 -LRB103 40496 RJT 72952 b SB3940 - 106 - LRB103 40496 RJT 72952 b
3785	3785	SB3940 - 106 - LRB103 40496 RJT 72952 b
3786	3786	1 transporters with whom it is dealing;
3787	3787	2 (7) Operate drive-through windows;
3788	3788	3 (8) Allow for the dispensing of cannabis or
3789	3789	4 cannabis-infused products in vending machines;
3790	3790	5 (9) Transport cannabis to residences or other
3791	3791	6 locations where purchasers may be for delivery;
3792	3792	7 (10) Enter into agreements to allow persons who are
3793	3793	8 not dispensing organization agents to deliver cannabis or
3794	3794	9 to transport cannabis to purchasers;
3795	3795	10 (11) Operate a dispensary if its video surveillance
3796	3796	11 equipment is inoperative;
3797	3797	12 (12) Operate a dispensary if the point-of-sale
3798	3798	13 equipment is inoperative;
3799	3799	14 (13) Operate a dispensary if the State's cannabis
3800	3800	15 electronic verification system is inoperative;
3801	3801	16 (14) Have fewer than 2 people working at the
3802	3802	17 dispensary at any time while the dispensary is open;
3803	3803	18 (15) Be located within 1,500 feet of the property line
3804	3804	19 of a pre-existing dispensing organization, unless the
3805	3805	20 applicant is a Social Equity Applicant or Social Equity
3806	3806	21 Justice Involved Applicant located or seeking to locate
3807	3807	22 within 1,500 feet of a dispensing organization licensed
3808	3808	23 under Section 15-15 or Section 15-20;
3809	3809	24 (16) Sell clones or any other live plant material;
3810	3810	25 (17) Sell cannabis, cannabis concentrate, or
3811	3811	26 cannabis-infused products in combination or bundled with
3812	3812
3813	3813
3814	3814
3815	3815
3816	3816
3817	3817	SB3940 - 106 - LRB103 40496 RJT 72952 b
3818	3818
3819	3819
3820	3820	SB3940- 107 -LRB103 40496 RJT 72952 b SB3940 - 107 - LRB103 40496 RJT 72952 b
3821	3821	SB3940 - 107 - LRB103 40496 RJT 72952 b
3822	3822	1 each other or any other items for one price, and each item
3823	3823	2 of cannabis, concentrate, or cannabis-infused product must
3824	3824	3 be separately identified by quantity and price on the
3825	3825	4 receipt;
3826	3826	5 (18) Violate any other requirements or prohibitions
3827	3827	6 set by Department rules.
3828	3828	7 (q) It is unlawful for any person having an Early Approval
3829	3829	8 Adult Use Cannabis Dispensing Organization License, a
3830	3830	9 Conditional Adult Use Cannabis Dispensing Organization, an
3831	3831	10 Adult Use Dispensing Organization License, or a medical
3832	3832	11 cannabis dispensing organization license issued under the
3833	3833	12 Compassionate Use of Medical Cannabis Program Act or any
3834	3834	13 officer, associate, member, representative, or agent of such
3835	3835	14 licensee to accept, receive, or borrow money or anything else
3836	3836	15 of value or accept or receive credit (other than merchandising
3837	3837	16 credit in the ordinary course of business for a period not to
3838	3838	17 exceed 30 days) directly or indirectly from any adult use
3839	3839	18 cultivation center, craft grower, infuser, or transporting
3840	3840	19 organization in exchange for preferential placement on the
3841	3841	20 dispensing organization's shelves, display cases, or website.
3842	3842	21 This includes anything received or borrowed or from any
3843	3843	22 stockholders, officers, agents, or persons connected with an
3844	3844	23 adult use cultivation center, craft grower, infuser, or
3845	3845	24 transporting organization.
3846	3846	25 (r) It is unlawful for any person having an Early Approval
3847	3847	26 Adult Use Cannabis Dispensing Organization License, a
3848	3848
3849	3849
3850	3850
3851	3851
3852	3852
3853	3853	SB3940 - 107 - LRB103 40496 RJT 72952 b
3854	3854
3855	3855
3856	3856	SB3940- 108 -LRB103 40496 RJT 72952 b SB3940 - 108 - LRB103 40496 RJT 72952 b
3857	3857	SB3940 - 108 - LRB103 40496 RJT 72952 b
3858	3858	1 Conditional Adult Use Cannabis Dispensing Organization, an
3859	3859	2 Adult Use Dispensing Organization License, or a medical
3860	3860	3 cannabis dispensing organization license issued under the
3861	3861	4 Compassionate Use of Medical Cannabis Program to enter into
3862	3862	5 any contract with any person licensed to cultivate, process,
3863	3863	6 or transport cannabis whereby such dispensing organization
3864	3864	7 agrees not to sell any cannabis cultivated, processed,
3865	3865	8 transported, manufactured, or distributed by any other
3866	3866	9 cultivator, transporter, or infuser, and any provision in any
3867	3867	10 contract violative of this Section shall render the whole of
3868	3868	11 such contract void and no action shall be brought thereon in
3869	3869	12 any court.
3870	3870	13 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
3871	3871	14 102-98, eff. 7-15-21.)
3872	3872	15 (410 ILCS 705/20-15)
3873	3873	16 Sec. 20-15. Conditional Adult Use Cultivation Center
3874	3874	17 application.
3875	3875	18 (a) If the Department of Agriculture makes available
3876	3876	19 additional cultivation center licenses pursuant to Section
3877	3877	20 20-5, applicants for a Conditional Adult Use Cultivation
3878	3878	21 Center License shall electronically submit the following in
3879	3879	22 such form as the Department of Agriculture may direct:
3880	3880	23 (1) the nonrefundable application fee set by rule by
3881	3881	24 the Department of Agriculture, to be deposited into the
3882	3882	25 Cannabis Regulation Fund;
3883	3883
3884	3884
3885	3885
3886	3886
3887	3887
3888	3888	SB3940 - 108 - LRB103 40496 RJT 72952 b
3889	3889
3890	3890
3891	3891	SB3940- 109 -LRB103 40496 RJT 72952 b SB3940 - 109 - LRB103 40496 RJT 72952 b
3892	3892	SB3940 - 109 - LRB103 40496 RJT 72952 b
3893	3893	1 (2) the legal name of the cultivation center;
3894	3894	2 (3) the proposed physical address of the cultivation
3895	3895	3 center;
3896	3896	4 (4) the name, address, social security number, and
3897	3897	5 date of birth of each principal officer and board member
3898	3898	6 of the cultivation center; each principal officer and
3899	3899	7 board member shall be at least 21 years of age;
3900	3900	8 (5) the details of any administrative or judicial
3901	3901	9 proceeding in which any of the principal officers or board
3902	3902	10 members of the cultivation center (i) pled guilty, were
3903	3903	11 convicted, were fined, or had a registration or license
3904	3904	12 suspended or revoked, or (ii) managed or served on the
3905	3905	13 board of a business or non-profit organization that pled
3906	3906	14 guilty, was convicted, was fined, or had a registration or
3907	3907	15 license suspended or revoked;
3908	3908	16 (6) proposed operating bylaws that include procedures
3909	3909	17 for the oversight of the cultivation center, including the
3910	3910	18 development and implementation of a plant monitoring
3911	3911	19 system, accurate recordkeeping, staffing plan, and
3912	3912	20 security plan approved by the Illinois State Police that
3913	3913	21 are in accordance with the rules issued by the Department
3914	3914	22 of Agriculture under this Act. A physical inventory shall
3915	3915	23 be performed of all plants and cannabis on a weekly basis
3916	3916	24 by the cultivation center;
3917	3917	25 (7) verification from the Illinois State Police that
3918	3918	26 all background checks of the prospective principal
3919	3919
3920	3920
3921	3921
3922	3922
3923	3923
3924	3924	SB3940 - 109 - LRB103 40496 RJT 72952 b
3925	3925
3926	3926
3927	3927	SB3940- 110 -LRB103 40496 RJT 72952 b SB3940 - 110 - LRB103 40496 RJT 72952 b
3928	3928	SB3940 - 110 - LRB103 40496 RJT 72952 b
3929	3929	1 officers, board members, and agents of the cannabis
3930	3930	2 business establishment have been conducted;
3931	3931	3 (8) a copy of the current local zoning ordinance or
3932	3932	4 permit and verification that the proposed cultivation
3933	3933	5 center is in compliance with the local zoning rules and
3934	3934	6 distance limitations established by the local
3935	3935	7 jurisdiction;
3936	3936	8 (9) proposed employment practices, in which the
3937	3937	9 applicant must demonstrate a plan of action to inform,
3938	3938	10 hire, and educate minorities, women, veterans, and persons
3939	3939	11 with disabilities, engage in fair labor practices, and
3940	3940	12 provide worker protections;
3941	3941	13 (10) whether an applicant can demonstrate experience
3942	3942	14 in or business practices that promote economic empowerment
3943	3943	15 in Disproportionately Impacted Areas;
3944	3944	16 (11) experience with the cultivation of agricultural
3945	3945	17 or horticultural products, operating an agriculturally
3946	3946	18 related business, or operating a horticultural business;
3947	3947	19 (12) a description of the enclosed, locked facility
3948	3948	20 where cannabis will be grown, harvested, manufactured,
3949	3949	21 processed, packaged, or otherwise prepared for
3950	3950	22 distribution to a dispensing organization;
3951	3951	23 (13) a survey of the enclosed, locked facility,
3952	3952	24 including the space used for cultivation;
3953	3953	25 (14) cultivation, processing, inventory, and packaging
3954	3954	26 plans;
3955	3955
3956	3956
3957	3957
3958	3958
3959	3959
3960	3960	SB3940 - 110 - LRB103 40496 RJT 72952 b
3961	3961
3962	3962
3963	3963	SB3940- 111 -LRB103 40496 RJT 72952 b SB3940 - 111 - LRB103 40496 RJT 72952 b
3964	3964	SB3940 - 111 - LRB103 40496 RJT 72952 b
3965	3965	1 (15) a description of the applicant's experience with
3966	3966	2 agricultural cultivation techniques and industry
3967	3967	3 standards;
3968	3968	4 (16) a list of any academic degrees, certifications,
3969	3969	5 or relevant experience of all prospective principal
3970	3970	6 officers, board members, and agents of the related
3971	3971	7 business;
3972	3972	8 (17) the identity of every person having a financial
3973	3973	9 or voting interest of 5% or greater in the cultivation
3974	3974	10 center operation with respect to which the license is
3975	3975	11 sought, whether a trust, corporation, partnership, limited
3976	3976	12 liability company, or sole proprietorship, including the
3977	3977	13 name and address of each person;
3978	3978	14 (18) a plan describing how the cultivation center will
3979	3979	15 address each of the following:
3980	3980	16 (i) energy needs, including estimates of monthly
3981	3981	17 electricity and gas usage, to what extent it will
3982	3982	18 procure energy from a local utility or from on-site
3983	3983	19 generation, and if it has or will adopt a sustainable
3984	3984	20 energy use and energy conservation policy;
3985	3985	21 (ii) water needs, including estimated water draw
3986	3986	22 and if it has or will adopt a sustainable water use and
3987	3987	23 water conservation policy; and
3988	3988	24 (iii) waste management, including if it has or
3989	3989	25 will adopt a waste reduction policy;
3990	3990	26 (19) a diversity plan that includes a narrative of not
3991	3991
3992	3992
3993	3993
3994	3994
3995	3995
3996	3996	SB3940 - 111 - LRB103 40496 RJT 72952 b
3997	3997
3998	3998
3999	3999	SB3940- 112 -LRB103 40496 RJT 72952 b SB3940 - 112 - LRB103 40496 RJT 72952 b
4000	4000	SB3940 - 112 - LRB103 40496 RJT 72952 b
4001	4001	1 more than 2,500 words that establishes a goal of diversity
4002	4002	2 in ownership, management, employment, and contracting to
4003	4003	3 ensure that diverse participants and groups are afforded
4004	4004	4 equality of opportunity;
4005	4005	5 (20) any other information required by rule;
4006	4006	6 (21) a recycling plan:
4007	4007	7 (A) Purchaser packaging, including cartridges,
4008	4008	8 shall be accepted by the applicant and recycled.
4009	4009	9 (B) Any recyclable waste generated by the cannabis
4010	4010	10 cultivation facility shall be recycled per applicable
4011	4011	11 State and local laws, ordinances, and rules.
4012	4012	12 (C) Any cannabis waste, liquid waste, or hazardous
4013	4013	13 waste shall be disposed of in accordance with 8 Ill.
4014	4014	14 Adm. Code 1000.460, except, to the greatest extent
4015	4015	15 feasible, all cannabis plant waste will be rendered
4016	4016	16 unusable by grinding and incorporating the cannabis
4017	4017	17 plant waste with compostable mixed waste to be
4018	4018	18 disposed of in accordance with 8 Ill. Adm. Code
4019	4019	19 1000.460(g)(1);
4020	4020	20 (22) commitment to comply with local waste provisions:
4021	4021	21 a cultivation facility must remain in compliance with
4022	4022	22 applicable State and federal environmental requirements,
4023	4023	23 including, but not limited to:
4024	4024	24 (A) storing, securing, and managing all
4025	4025	25 recyclables and waste, including organic waste
4026	4026	26 composed of or containing finished cannabis and
4027	4027
4028	4028
4029	4029
4030	4030
4031	4031
4032	4032	SB3940 - 112 - LRB103 40496 RJT 72952 b
4033	4033
4034	4034
4035	4035	SB3940- 113 -LRB103 40496 RJT 72952 b SB3940 - 113 - LRB103 40496 RJT 72952 b
4036	4036	SB3940 - 113 - LRB103 40496 RJT 72952 b
4037	4037	1 cannabis products, in accordance with applicable State
4038	4038	2 and local laws, ordinances, and rules; and
4039	4039	3 (B) disposing liquid waste containing cannabis or
4040	4040	4 byproducts of cannabis processing in compliance with
4041	4041	5 all applicable State and federal requirements,
4042	4042	6 including, but not limited to, the cannabis
4043	4043	7 cultivation facility's permits under Title X of the
4044	4044	8 Environmental Protection Act; and
4045	4045	9 (23) a commitment to a technology standard for
4046	4046	10 resource efficiency of the cultivation center facility.
4047	4047	11 (A) A cannabis cultivation facility commits to use
4048	4048	12 resources efficiently, including energy and water. For
4049	4049	13 the following, a cannabis cultivation facility commits
4050	4050	14 to meet or exceed the technology standard identified
4051	4051	15 in items (i), (ii), (iii), and (iv), which may be
4052	4052	16 modified by rule:
4053	4053	17 (i) lighting systems, including light bulbs;
4054	4054	18 (ii) HVAC system;
4055	4055	19 (iii) water application system to the crop;
4056	4056	20 and
4057	4057	21 (iv) filtration system for removing
4058	4058	22 contaminants from wastewater.
4059	4059	23 (B) Lighting. The Lighting Power Densities (LPD)
4060	4060	24 for cultivation space commits to not exceed an average
4061	4061	25 of 36 watts per gross square foot of active and growing
4062	4062	26 space canopy, or all installed lighting technology
4063	4063
4064	4064
4065	4065
4066	4066
4067	4067
4068	4068	SB3940 - 113 - LRB103 40496 RJT 72952 b
4069	4069
4070	4070
4071	4071	SB3940- 114 -LRB103 40496 RJT 72952 b SB3940 - 114 - LRB103 40496 RJT 72952 b
4072	4072	SB3940 - 114 - LRB103 40496 RJT 72952 b
4073	4073	1 shall meet a photosynthetic photon efficacy (PPE) of
4074	4074	2 no less than 2.2 micromoles per joule fixture and
4075	4075	3 shall be featured on the DesignLights Consortium (DLC)
4076	4076	4 Horticultural Specification Qualified Products List
4077	4077	5 (QPL). In the event that DLC requirement for minimum
4078	4078	6 efficacy exceeds 2.2 micromoles per joule fixture,
4079	4079	7 that PPE shall become the new standard.
4080	4080	8 (C) HVAC. The (i) For cannabis grow operations
4081	4081	9 with less than 6,000 square feet of canopy, the
4082	4082	10 licensee commits that all HVAC units will be
4083	4083	11 high-efficiency ductless split HVAC units, or other
4084	4084	12 more energy efficient equipment.
4085	4085	13 (ii) For cannabis grow operations with 6,000
4086	4086	14 square feet of canopy or more, the licensee
4087	4087	15 commits that all HVAC units will be variable
4088	4088	16 refrigerant flow HVAC units, or other more energy
4089	4089	17 efficient equipment.
4090	4090	18 (D) Water application.
4091	4091	19 (i) The cannabis cultivation facility commits
4092	4092	20 to use automated watering systems, including, but
4093	4093	21 not limited to, drip irrigation and flood tables,
4094	4094	22 to irrigate cannabis crops crop.
4095	4095	23 (ii) The cannabis cultivation facility commits
4096	4096	24 to measure runoff from watering events and report
4097	4097	25 this volume in its water usage plan, and that on
4098	4098	26 average, watering events shall have no more than
4099	4099
4100	4100
4101	4101
4102	4102
4103	4103
4104	4104	SB3940 - 114 - LRB103 40496 RJT 72952 b
4105	4105
4106	4106
4107	4107	SB3940- 115 -LRB103 40496 RJT 72952 b SB3940 - 115 - LRB103 40496 RJT 72952 b
4108	4108	SB3940 - 115 - LRB103 40496 RJT 72952 b
4109	4109	1 20% of runoff of water.
4110	4110	2 (E) Filtration. The cultivator commits that HVAC
4111	4111	3 condensate, dehumidification water, excess runoff, and
4112	4112	4 other wastewater produced by the cannabis cultivation
4113	4113	5 facility shall be captured and filtered to the best of
4114	4114	6 the facility's ability to achieve the quality needed
4115	4115	7 to be reused in subsequent watering rounds.
4116	4116	8 (F) Reporting energy use and efficiency as
4117	4117	9 required by rule.
4118	4118	10 (b) Applicants must submit all required information,
4119	4119	11 including the information required in Section 20-10, to the
4120	4120	12 Department of Agriculture. Failure by an applicant to submit
4121	4121	13 all required information may result in the application being
4122	4122	14 disqualified.
4123	4123	15 (c) If the Department of Agriculture receives an
4124	4124	16 application with missing information, the Department of
4125	4125	17 Agriculture may issue a deficiency notice to the applicant.
4126	4126	18 The applicant shall have 10 calendar days from the date of the
4127	4127	19 deficiency notice to resubmit the incomplete information.
4128	4128	20 Applications that are still incomplete after this opportunity
4129	4129	21 to cure will not be scored and will be disqualified.
4130	4130	22 (e) A cultivation center that is awarded a Conditional
4131	4131	23 Adult Use Cultivation Center License pursuant to the criteria
4132	4132	24 in Section 20-20 shall not grow, purchase, possess, or sell
4133	4133	25 cannabis or cannabis-infused products until the person has
4134	4134	26 received an Adult Use Cultivation Center License issued by the
4135	4135
4136	4136
4137	4137
4138	4138
4139	4139
4140	4140	SB3940 - 115 - LRB103 40496 RJT 72952 b
4141	4141
4142	4142
4143	4143	SB3940- 116 -LRB103 40496 RJT 72952 b SB3940 - 116 - LRB103 40496 RJT 72952 b
4144	4144	SB3940 - 116 - LRB103 40496 RJT 72952 b
4145	4145	1 Department of Agriculture pursuant to Section 20-21 of this
4146	4146	2 Act.
4147	4147	3 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
4148	4148	4 102-538, eff. 8-20-21.)
4149	4149	5 (410 ILCS 705/20-30)
4150	4150	6 Sec. 20-30. Cultivation center requirements; prohibitions.
4151	4151	7 (a) The operating documents of a cultivation center shall
4152	4152	8 include procedures for the oversight of the cultivation
4153	4153	9 center, a cannabis plant monitoring system including a
4154	4154	10 physical inventory recorded weekly, accurate recordkeeping,
4155	4155	11 and a staffing plan.
4156	4156	12 (b) A cultivation center shall implement a security plan
4157	4157	13 reviewed by the Illinois State Police that includes, but is
4158	4158	14 not limited to: facility access controls, perimeter intrusion
4159	4159	15 detection systems, personnel identification systems, 24-hour
4160	4160	16 surveillance system to monitor the interior and exterior of
4161	4161	17 the cultivation center facility and accessibility to
4162	4162	18 authorized law enforcement, the Department of Public Health
4163	4163	19 where processing takes place, and the Department of
4164	4164	20 Agriculture in real time.
4165	4165	21 (c) All cultivation of cannabis by a cultivation center
4166	4166	22 must take place in an enclosed, locked facility at the
4167	4167	23 physical address provided to the Department of Agriculture
4168	4168	24 during the licensing process. The cultivation center location
4169	4169	25 shall only be accessed by the agents working for the
4170	4170
4171	4171
4172	4172
4173	4173
4174	4174
4175	4175	SB3940 - 116 - LRB103 40496 RJT 72952 b
4176	4176
4177	4177
4178	4178	SB3940- 117 -LRB103 40496 RJT 72952 b SB3940 - 117 - LRB103 40496 RJT 72952 b
4179	4179	SB3940 - 117 - LRB103 40496 RJT 72952 b
4180	4180	1 cultivation center, the Department of Agriculture staff
4181	4181	2 performing inspections, the Department of Public Health staff
4182	4182	3 performing inspections, local and State law enforcement or
4183	4183	4 other emergency personnel, contractors working on jobs
4184	4184	5 unrelated to cannabis, such as installing or maintaining
4185	4185	6 security devices or performing electrical wiring, transporting
4186	4186	7 organization agents as provided in this Act, individuals in a
4187	4187	8 mentoring or educational program approved by the State, or
4188	4188	9 other individuals as provided by rule.
4189	4189	10 (d) A cultivation center may not sell or distribute any
4190	4190	11 cannabis, or cannabis-infused products, or any other product
4191	4191	12 to any person other than a dispensing organization, craft
4192	4192	13 grower, infuser organization, transporter, or as otherwise
4193	4193	14 authorized by rule.
4194	4194	15 (e) A cultivation center may not either directly or
4195	4195	16 indirectly discriminate in price between different dispensing
4196	4196	17 organizations, craft growers, or infuser organizations that
4197	4197	18 are purchasing a like grade, strain, brand, and quality of
4198	4198	19 cannabis or cannabis-infused product. Nothing in this
4199	4199	20 subsection (e) prevents a cultivation center from pricing
4200	4200	21 cannabis differently based on differences in the cost of
4201	4201	22 manufacturing or processing, the quantities sold, such as
4202	4202	23 volume discounts, or the way the products are delivered.
4203	4203	24 (f) All cannabis harvested by a cultivation center and
4204	4204	25 intended for distribution to a dispensing organization must be
4205	4205	26 entered into a data collection system, packaged and labeled
4206	4206
4207	4207
4208	4208
4209	4209
4210	4210
4211	4211	SB3940 - 117 - LRB103 40496 RJT 72952 b
4212	4212
4213	4213
4214	4214	SB3940- 118 -LRB103 40496 RJT 72952 b SB3940 - 118 - LRB103 40496 RJT 72952 b
4215	4215	SB3940 - 118 - LRB103 40496 RJT 72952 b
4216	4216	1 under Section 55-21, and placed into a cannabis container for
4217	4217	2 transport. All cannabis harvested by a cultivation center and
4218	4218	3 intended for distribution to a craft grower or infuser
4219	4219	4 organization must be packaged in a labeled cannabis container
4220	4220	5 and entered into a data collection system before transport.
4221	4221	6 (g) Cultivation centers are subject to random inspections
4222	4222	7 by the Department of Agriculture, the Department of Public
4223	4223	8 Health, local safety or health inspectors, the Illinois State
4224	4224	9 Police, or as provided by rule.
4225	4225	10 (h) A cultivation center agent shall notify local law
4226	4226	11 enforcement, the Illinois State Police, and the Department of
4227	4227	12 Agriculture within 24 hours of the discovery of any loss or
4228	4228	13 theft. Notification shall be made by phone or in person, or by
4229	4229	14 written or electronic communication.
4230	4230	15 (i) A cultivation center shall comply with all State and
4231	4231	16 any applicable federal rules and regulations regarding the use
4232	4232	17 of pesticides on cannabis plants.
4233	4233	18 (j) No person or entity shall hold any legal, equitable,
4234	4234	19 ownership, or beneficial interest, directly or indirectly, of
4235	4235	20 more than 3 cultivation centers licensed under this Article.
4236	4236	21 Further, no person or entity that is employed by, an agent of,
4237	4237	22 has a contract to receive payment in any form from a
4238	4238	23 cultivation center, is a principal officer of a cultivation
4239	4239	24 center, or entity controlled by or affiliated with a principal
4240	4240	25 officer of a cultivation shall hold any legal, equitable,
4241	4241	26 ownership, or beneficial interest, directly or indirectly, in
4242	4242
4243	4243
4244	4244
4245	4245
4246	4246
4247	4247	SB3940 - 118 - LRB103 40496 RJT 72952 b
4248	4248
4249	4249
4250	4250	SB3940- 119 -LRB103 40496 RJT 72952 b SB3940 - 119 - LRB103 40496 RJT 72952 b
4251	4251	SB3940 - 119 - LRB103 40496 RJT 72952 b
4252	4252	1 a cultivation that would result in the person or entity owning
4253	4253	2 or controlling in combination with any cultivation center,
4254	4254	3 principal officer of a cultivation center, or entity
4255	4255	4 controlled or affiliated with a principal officer of a
4256	4256	5 cultivation center by which he, she, or it is employed, is an
4257	4257	6 agent of, or participates in the management of, more than 3
4258	4258	7 cultivation center licenses.
4259	4259	8 (k) A cultivation center may not contain more than 210,000
4260	4260	9 square feet of canopy space for plants in the flowering stage
4261	4261	10 for cultivation of adult use cannabis as provided in this Act.
4262	4262	11 (l) A cultivation center may process cannabis, cannabis
4263	4263	12 concentrates, and cannabis-infused products.
4264	4264	13 (m) Beginning July 1, 2020, a cultivation center shall not
4265	4265	14 transport cannabis or cannabis-infused products to a craft
4266	4266	15 grower, dispensing organization, infuser organization, or
4267	4267	16 laboratory licensed under this Act, unless it has obtained a
4268	4268	17 transporting organization license.
4269	4269	18 (n) It is unlawful for any person having a cultivation
4270	4270	19 center license or any officer, associate, member,
4271	4271	20 representative, or agent of such licensee to offer or deliver
4272	4272	21 money, or anything else of value, directly or indirectly to
4273	4273	22 any person having an Early Approval Adult Use Dispensing
4274	4274	23 Organization License, a Conditional Adult Use Dispensing
4275	4275	24 Organization License, an Adult Use Dispensing Organization
4276	4276	25 License, or a medical cannabis dispensing organization license
4277	4277	26 issued under the Compassionate Use of Medical Cannabis Program
4278	4278
4279	4279
4280	4280
4281	4281
4282	4282
4283	4283	SB3940 - 119 - LRB103 40496 RJT 72952 b
4284	4284
4285	4285
4286	4286	SB3940- 120 -LRB103 40496 RJT 72952 b SB3940 - 120 - LRB103 40496 RJT 72952 b
4287	4287	SB3940 - 120 - LRB103 40496 RJT 72952 b
4288	4288	1 Act, or to any person connected with or in any way
4289	4289	2 representing, or to any member of the family of, such person
4290	4290	3 holding an Early Approval Adult Use Dispensing Organization
4291	4291	4 License, a Conditional Adult Use Dispensing Organization
4292	4292	5 License, an Adult Use Dispensing Organization License, or a
4293	4293	6 medical cannabis dispensing organization license issued under
4294	4294	7 the Compassionate Use of Medical Cannabis Program Act, or to
4295	4295	8 any stockholders in any corporation engaged in the retail sale
4296	4296	9 of cannabis, or to any officer, manager, agent, or
4297	4297	10 representative of the Early Approval Adult Use Dispensing
4298	4298	11 Organization License, a Conditional Adult Use Dispensing
4299	4299	12 Organization License, an Adult Use Dispensing Organization
4300	4300	13 License, or a medical cannabis dispensing organization license
4301	4301	14 issued under the Compassionate Use of Medical Cannabis Program
4302	4302	15 Act to obtain preferential placement within the dispensing
4303	4303	16 organization, including, without limitation, on shelves and in
4304	4304	17 display cases where purchasers can view products, or on the
4305	4305	18 dispensing organization's website.
4306	4306	19 (o) A cultivation center must comply with any other
4307	4307	20 requirements or prohibitions set by administrative rule of the
4308	4308	21 Department of Agriculture.
4309	4309	22 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
4310	4310	23 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
4311	4311	24 5-13-22.)
4312	4312	25 (410 ILCS 705/20-32 new)
4313	4313
4314	4314
4315	4315
4316	4316
4317	4317
4318	4318	SB3940 - 120 - LRB103 40496 RJT 72952 b
4319	4319
4320	4320
4321	4321	SB3940- 121 -LRB103 40496 RJT 72952 b SB3940 - 121 - LRB103 40496 RJT 72952 b
4322	4322	SB3940 - 121 - LRB103 40496 RJT 72952 b
4323	4323	1 Sec. 20-32. Rules concerning application of pesticides.
4324	4324	2 Within one year after the effective date of this amendatory
4325	4325	3 Act of the 103rd General Assembly, the Department shall adopt
4326	4326	4 rules prohibiting the application of pesticides to cannabis
4327	4327	5 plants in the flowering stage in a cultivation center.
4328	4328	6 (410 ILCS 705/20-35)
4329	4329	7 Sec. 20-35. Cultivation center agent identification card.
4330	4330	8 (a) The Department of Agriculture shall:
4331	4331	9 (1) establish by rule the information required in an
4332	4332	10 initial application or renewal application for an agent
4333	4333	11 identification card submitted under this Act and the
4334	4334	12 nonrefundable fee to accompany the initial application or
4335	4335	13 renewal application;
4336	4336	14 (2) verify the information contained in an initial
4337	4337	15 application or renewal application for an agent
4338	4338	16 identification card submitted under this Act, and approve
4339	4339	17 or deny an application within 30 days of receiving a
4340	4340	18 completed initial application or renewal application and
4341	4341	19 all supporting documentation required by rule;
4342	4342	20 (3) issue an agent identification card to a qualifying
4343	4343	21 agent within 15 business days of approving the initial
4344	4344	22 application or renewal application;
4345	4345	23 (4) enter the license number of the cultivation center
4346	4346	24 where the agent works; and
4347	4347	25 (5) allow for an electronic initial application and
4348	4348
4349	4349
4350	4350
4351	4351
4352	4352
4353	4353	SB3940 - 121 - LRB103 40496 RJT 72952 b
4354	4354
4355	4355
4356	4356	SB3940- 122 -LRB103 40496 RJT 72952 b SB3940 - 122 - LRB103 40496 RJT 72952 b
4357	4357	SB3940 - 122 - LRB103 40496 RJT 72952 b
4358	4358	1 renewal application process, and provide a confirmation by
4359	4359	2 electronic or other methods that an application has been
4360	4360	3 submitted. The Department of Agriculture may by rule
4361	4361	4 require prospective agents to file their applications by
4362	4362	5 electronic means and provide notices to the agents by
4363	4363	6 electronic means.
4364	4364	7 (b) An agent must keep his or her identification card
4365	4365	8 visible at all times when on the property of the cultivation
4366	4366	9 center at which the agent is employed.
4367	4367	10 (c) The agent identification cards shall contain the
4368	4368	11 following:
4369	4369	12 (1) the name of the cardholder;
4370	4370	13 (2) the date of issuance and expiration date of the
4371	4371	14 identification card;
4372	4372	15 (3) a random 10-digit alphanumeric identification
4373	4373	16 number containing at least 4 numbers and at least 4
4374	4374	17 letters that is unique to the holder;
4375	4375	18 (4) a photograph of the cardholder; and
4376	4376	19 (5) the legal name of the cultivation center employing
4377	4377	20 the agent.
4378	4378	21 (d) An agent identification card shall be immediately
4379	4379	22 returned to the cultivation center of the agent upon
4380	4380	23 termination of his or her employment.
4381	4381	24 (e) Any agent identification card lost by a cultivation
4382	4382	25 center agent shall be reported to the Illinois State Police
4383	4383	26 and the Department of Agriculture immediately upon discovery
4384	4384
4385	4385
4386	4386
4387	4387
4388	4388
4389	4389	SB3940 - 122 - LRB103 40496 RJT 72952 b
4390	4390
4391	4391
4392	4392	SB3940- 123 -LRB103 40496 RJT 72952 b SB3940 - 123 - LRB103 40496 RJT 72952 b
4393	4393	SB3940 - 123 - LRB103 40496 RJT 72952 b
4394	4394	1 of the loss.
4395	4395	2 (f) The Department of Agriculture may not shall not issue
4396	4396	3 an agent identification card if the applicant is delinquent in
4397	4397	4 filing any required tax returns or paying any amounts owed to
4398	4398	5 the State of Illinois.
4399	4399	6 (g) The Department and the Department of Financial and
4400	4400	7 Professional Regulation may develop and implement an
4401	4401	8 integrated system to issue an agent identification card which
4402	4402	9 identifies a cultivation center agent licensed by the
4403	4403	10 Department as well as any craft grower, transporter,
4404	4404	11 dispensing organization, community college program or infuser
4405	4405	12 license or registration the agent may simultaneously hold.
4406	4406	13 (Source: P.A. 101-27, eff. 6-25-19; 102-538, eff. 8-20-21.)
4407	4407	14 (410 ILCS 705/20-45)
4408	4408	15 Sec. 20-45. Renewal of cultivation center licenses and
4409	4409	16 agent identification cards.
4410	4410	17 (a) Licenses and identification cards issued under this
4411	4411	18 Act shall be renewed annually. A cultivation center shall
4412	4412	19 receive written or electronic notice 90 days before the
4413	4413	20 expiration of its current license that the license will
4414	4414	21 expire. The Department of Agriculture shall grant a renewal
4415	4415	22 within 45 days of submission of a renewal application if:
4416	4416	23 (1) the cultivation center submits a renewal
4417	4417	24 application and the required nonrefundable renewal fee of
4418	4418	25 $100,000, or another amount as the Department of
4419	4419
4420	4420
4421	4421
4422	4422
4423	4423
4424	4424	SB3940 - 123 - LRB103 40496 RJT 72952 b
4425	4425
4426	4426
4427	4427	SB3940- 124 -LRB103 40496 RJT 72952 b SB3940 - 124 - LRB103 40496 RJT 72952 b
4428	4428	SB3940 - 124 - LRB103 40496 RJT 72952 b
4429	4429	1 Agriculture may set by rule after January 1, 2021, to be
4430	4430	2 deposited into the Cannabis Regulation Fund.
4431	4431	3 (2) the Department of Agriculture has not suspended
4432	4432	4 the license of the cultivation center or suspended or
4433	4433	5 revoked the license for violating this Act or rules
4434	4434	6 adopted under this Act;
4435	4435	7 (3) the cultivation center has continued to operate in
4436	4436	8 accordance with all plans submitted as part of its
4437	4437	9 application and approved by the Department of Agriculture
4438	4438	10 or any amendments thereto that have been approved by the
4439	4439	11 Department of Agriculture;
4440	4440	12 (4) the cultivation center has submitted an agent,
4441	4441	13 employee, contracting, and subcontracting diversity report
4442	4442	14 as required by the Department; and
4443	4443	15 (5) the cultivation center has submitted an
4444	4444	16 environmental impact report.
4445	4445	17 (b) If a cultivation center fails to renew its license
4446	4446	18 before expiration, it shall cease operations until its license
4447	4447	19 is renewed.
4448	4448	20 (c) If a cultivation center agent fails to renew his or her
4449	4449	21 identification card before its expiration, he or she shall
4450	4450	22 cease to work as an agent of the cultivation center until his
4451	4451	23 or her identification card is renewed.
4452	4452	24 (d) Any cultivation center that continues to operate, or
4453	4453	25 any cultivation center agent who continues to work as an
4454	4454	26 agent, after the applicable license or identification card has
4455	4455
4456	4456
4457	4457
4458	4458
4459	4459
4460	4460	SB3940 - 124 - LRB103 40496 RJT 72952 b
4461	4461
4462	4462
4463	4463	SB3940- 125 -LRB103 40496 RJT 72952 b SB3940 - 125 - LRB103 40496 RJT 72952 b
4464	4464	SB3940 - 125 - LRB103 40496 RJT 72952 b
4465	4465	1 expired without renewal is subject to the penalties provided
4466	4466	2 under Section 45-5.
4467	4467	3 (e) The Department of Agriculture may not renew a license
4468	4468	4 or an agent identification card if the applicant is delinquent
4469	4469	5 in filing any required tax returns or paying any amounts owed
4470	4470	6 to the State.
4471	4471	7 (Source: P.A. 101-27, eff. 6-25-19.)
4472	4472	8 (410 ILCS 705/25-35)
4473	4473	9 (Section scheduled to be repealed on July 1, 2026)
4474	4474	10 Sec. 25-35. Community College Cannabis Vocational Training
4475	4475	11 Pilot Program faculty participant agent identification card.
4476	4476	12 (a) The Department shall:
4477	4477	13 (1) establish by rule the information required in an
4478	4478	14 initial application or renewal application for an agent
4479	4479	15 identification card submitted under this Article and the
4480	4480	16 nonrefundable fee to accompany the initial application or
4481	4481	17 renewal application;
4482	4482	18 (2) verify the information contained in an initial
4483	4483	19 application or renewal application for an agent
4484	4484	20 identification card submitted under this Article, and
4485	4485	21 approve or deny an application within 30 days of receiving
4486	4486	22 a completed initial application or renewal application and
4487	4487	23 all supporting documentation required by rule;
4488	4488	24 (3) issue an agent identification card to a qualifying
4489	4489	25 agent within 15 business days of approving the initial
4490	4490
4491	4491
4492	4492
4493	4493
4494	4494
4495	4495	SB3940 - 125 - LRB103 40496 RJT 72952 b
4496	4496
4497	4497
4498	4498	SB3940- 126 -LRB103 40496 RJT 72952 b SB3940 - 126 - LRB103 40496 RJT 72952 b
4499	4499	SB3940 - 126 - LRB103 40496 RJT 72952 b
4500	4500	1 application or renewal application;
4501	4501	2 (4) enter the license number of the community college
4502	4502	3 where the agent works; and
4503	4503	4 (5) allow for an electronic initial application and
4504	4504	5 renewal application process, and provide a confirmation by
4505	4505	6 electronic or other methods that an application has been
4506	4506	7 submitted. Each Department may by rule require prospective
4507	4507	8 agents to file their applications by electronic means and
4508	4508	9 to provide notices to the agents by electronic means.
4509	4509	10 (b) An agent must keep his or her identification card
4510	4510	11 visible at all times when in the enclosed, locked facility, or
4511	4511	12 facilities for which he or she is an agent.
4512	4512	13 (c) The agent identification cards shall contain the
4513	4513	14 following:
4514	4514	15 (1) the name of the cardholder;
4515	4515	16 (2) the date of issuance and expiration date of the
4516	4516	17 identification card;
4517	4517	18 (3) a random 10-digit alphanumeric identification
4518	4518	19 number containing at least 4 numbers and at least 4
4519	4519	20 letters that is unique to the holder;
4520	4520	21 (4) a photograph of the cardholder; and
4521	4521	22 (5) the legal name of the community college employing
4522	4522	23 the agent.
4523	4523	24 (d) An agent identification card shall be immediately
4524	4524	25 returned to the community college of the agent upon
4525	4525	26 termination of his or her employment.
4526	4526
4527	4527
4528	4528
4529	4529
4530	4530
4531	4531	SB3940 - 126 - LRB103 40496 RJT 72952 b
4532	4532
4533	4533
4534	4534	SB3940- 127 -LRB103 40496 RJT 72952 b SB3940 - 127 - LRB103 40496 RJT 72952 b
4535	4535	SB3940 - 127 - LRB103 40496 RJT 72952 b
4536	4536	1 (e) Any agent identification card lost shall be reported
4537	4537	2 to the Illinois State Police and the Department of Agriculture
4538	4538	3 immediately upon discovery of the loss.
4539	4539	4 (f) An agent applicant may begin employment at a Community
4540	4540	5 College Cannabis Vocational Training Pilot Program while the
4541	4541	6 agent applicant's identification card application is pending.
4542	4542	7 Upon approval, the Department shall issue the agent's
4543	4543	8 identification card to the agent. If denied, the Community
4544	4544	9 College Cannabis Vocational Training Pilot Program and the
4545	4545	10 agent applicant shall be notified and the agent applicant must
4546	4546	11 cease all activity at the Community College Cannabis
4547	4547	12 Vocational Training Pilot Program immediately.
4548	4548	13 (g) The Department of Agriculture may not issue an agent
4549	4549	14 identification card if the applicant is delinquent in filing
4550	4550	15 any required tax returns or paying any amounts owed to the
4551	4551	16 State.
4552	4552	17 (h) The Department of Agriculture and the Department of
4553	4553	18 Financial and Professional Regulation may develop and
4554	4554	19 implement an integrated system to issue an agent
4555	4555	20 identification card which identifies a community college
4556	4556	21 program agent licensed by the Department as well as any
4557	4557	22 cultivation center, craft grower, transporter, dispensing
4558	4558	23 organization, or infuser license or registration the agent may
4559	4559	24 simultaneously hold.
4560	4560	25 (Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21;
4561	4561	26 102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)
4562	4562
4563	4563
4564	4564
4565	4565
4566	4566
4567	4567	SB3940 - 127 - LRB103 40496 RJT 72952 b
4568	4568
4569	4569
4570	4570	SB3940- 128 -LRB103 40496 RJT 72952 b SB3940 - 128 - LRB103 40496 RJT 72952 b
4571	4571	SB3940 - 128 - LRB103 40496 RJT 72952 b
4572	4572	1 (410 ILCS 705/30-30)
4573	4573	2 Sec. 30-30. Craft grower requirements; prohibitions.
4574	4574	3 (a) The operating documents of a craft grower shall
4575	4575	4 include procedures for the oversight of the craft grower, a
4576	4576	5 cannabis plant monitoring system including a physical
4577	4577	6 inventory recorded weekly, accurate recordkeeping, and a
4578	4578	7 staffing plan.
4579	4579	8 (b) A craft grower shall implement a security plan
4580	4580	9 reviewed by the Illinois State Police that includes, but is
4581	4581	10 not limited to: facility access controls, perimeter intrusion
4582	4582	11 detection systems, personnel identification systems, and a
4583	4583	12 24-hour surveillance system to monitor the interior and
4584	4584	13 exterior of the craft grower facility and that is accessible
4585	4585	14 to authorized law enforcement and the Department of
4586	4586	15 Agriculture in real time.
4587	4587	16 (c) All cultivation of cannabis by a craft grower must
4588	4588	17 take place in an enclosed, locked facility at the physical
4589	4589	18 address provided to the Department of Agriculture during the
4590	4590	19 licensing process. The craft grower location shall only be
4591	4591	20 accessed by the agents working for the craft grower, the
4592	4592	21 Department of Agriculture staff performing inspections, the
4593	4593	22 Department of Public Health staff performing inspections,
4594	4594	23 State and local law enforcement or other emergency personnel,
4595	4595	24 contractors working on jobs unrelated to cannabis, such as
4596	4596	25 installing or maintaining security devices or performing
4597	4597
4598	4598
4599	4599
4600	4600
4601	4601
4602	4602	SB3940 - 128 - LRB103 40496 RJT 72952 b
4603	4603
4604	4604
4605	4605	SB3940- 129 -LRB103 40496 RJT 72952 b SB3940 - 129 - LRB103 40496 RJT 72952 b
4606	4606	SB3940 - 129 - LRB103 40496 RJT 72952 b
4607	4607	1 electrical wiring, transporting organization agents as
4608	4608	2 provided in this Act, or participants in the incubator
4609	4609	3 program, individuals in a mentoring or educational program
4610	4610	4 approved by the State, or other individuals as provided by
4611	4611	5 rule. However, if a craft grower shares a premises with an
4612	4612	6 infuser or dispensing organization, agents from those other
4613	4613	7 licensees may access the craft grower portion of the premises
4614	4614	8 if that is the location of common bathrooms, lunchrooms,
4615	4615	9 locker rooms, or other areas of the building where work or
4616	4616	10 cultivation of cannabis is not performed. At no time may an
4617	4617	11 infuser or dispensing organization agent perform work at a
4618	4618	12 craft grower without being a registered agent of the craft
4619	4619	13 grower.
4620	4620	14 (d) A craft grower may not sell or distribute any cannabis
4621	4621	15 or any other product to any person other than a cultivation
4622	4622	16 center, a craft grower, an infuser organization, a dispensing
4623	4623	17 organization, or as otherwise authorized by rule.
4624	4624	18 (e) A craft grower may not be located in an area zoned for
4625	4625	19 residential use.
4626	4626	20 (f) A craft grower may not either directly or indirectly
4627	4627	21 discriminate in price between different cannabis business
4628	4628	22 establishments that are purchasing a like grade, strain,
4629	4629	23 brand, and quality of cannabis or cannabis-infused product.
4630	4630	24 Nothing in this subsection (f) prevents a craft grower from
4631	4631	25 pricing cannabis differently based on differences in the cost
4632	4632	26 of manufacturing or processing, the quantities sold, such as
4633	4633
4634	4634
4635	4635
4636	4636
4637	4637
4638	4638	SB3940 - 129 - LRB103 40496 RJT 72952 b
4639	4639
4640	4640
4641	4641	SB3940- 130 -LRB103 40496 RJT 72952 b SB3940 - 130 - LRB103 40496 RJT 72952 b
4642	4642	SB3940 - 130 - LRB103 40496 RJT 72952 b
4643	4643	1 volume discounts, or the way the products are delivered.
4644	4644	2 (g) All cannabis harvested by a craft grower and intended
4645	4645	3 for distribution to a dispensing organization must be entered
4646	4646	4 into a data collection system, packaged and labeled under
4647	4647	5 Section 55-21, and, if distribution is to a dispensing
4648	4648	6 organization that does not share a premises with the
4649	4649	7 dispensing organization receiving the cannabis, placed into a
4650	4650	8 cannabis container for transport. All cannabis harvested by a
4651	4651	9 craft grower and intended for distribution to a cultivation
4652	4652	10 center, to an infuser organization, or to a craft grower with
4653	4653	11 which it does not share a premises, must be packaged in a
4654	4654	12 labeled cannabis container and entered into a data collection
4655	4655	13 system before transport.
4656	4656	14 (h) Craft growers are subject to random inspections by the
4657	4657	15 Department of Agriculture, local safety or health inspectors,
4658	4658	16 the Illinois State Police, or as provided by rule.
4659	4659	17 (i) A craft grower agent shall notify local law
4660	4660	18 enforcement, the Illinois State Police, and the Department of
4661	4661	19 Agriculture within 24 hours of the discovery of any loss or
4662	4662	20 theft. Notification shall be made by phone, in person, or
4663	4663	21 written or electronic communication.
4664	4664	22 (j) A craft grower shall comply with all State and any
4665	4665	23 applicable federal rules and regulations regarding the use of
4666	4666	24 pesticides.
4667	4667	25 (k) A craft grower or craft grower agent shall not
4668	4668	26 transport cannabis or cannabis-infused products to any other
4669	4669
4670	4670
4671	4671
4672	4672
4673	4673
4674	4674	SB3940 - 130 - LRB103 40496 RJT 72952 b
4675	4675
4676	4676
4677	4677	SB3940- 131 -LRB103 40496 RJT 72952 b SB3940 - 131 - LRB103 40496 RJT 72952 b
4678	4678	SB3940 - 131 - LRB103 40496 RJT 72952 b
4679	4679	1 cannabis business establishment without a transport
4680	4680	2 organization license unless:
4681	4681	3 (i) If the craft grower is located in a county with a
4682	4682	4 population of 3,000,000 or more, the cannabis business
4683	4683	5 establishment receiving the cannabis is within 2,000 feet
4684	4684	6 of the property line of the craft grower;
4685	4685	7 (ii) If the craft grower is located in a county with a
4686	4686	8 population of more than 700,000 but fewer than 3,000,000,
4687	4687	9 the cannabis business establishment receiving the cannabis
4688	4688	10 is within 2 miles of the craft grower; or
4689	4689	11 (iii) If the craft grower is located in a county with a
4690	4690	12 population of fewer than 700,000, the cannabis business
4691	4691	13 establishment receiving the cannabis is within 15 miles of
4692	4692	14 the craft grower.
4693	4693	15 (l) A craft grower may enter into a contract with a
4694	4694	16 transporting organization to transport cannabis to a
4695	4695	17 cultivation center, a craft grower, an infuser organization, a
4696	4696	18 dispensing organization, or a laboratory.
4697	4697	19 (m) No person or entity shall hold any legal, equitable,
4698	4698	20 ownership, or beneficial interest, directly or indirectly, of
4699	4699	21 more than 3 craft grower licenses. Further, no person or
4700	4700	22 entity that is employed by, an agent of, or has a contract to
4701	4701	23 receive payment from or participate in the management of a
4702	4702	24 craft grower, is a principal officer of a craft grower, or
4703	4703	25 entity controlled by or affiliated with a principal officer of
4704	4704	26 a craft grower shall hold any legal, equitable, ownership, or
4705	4705
4706	4706
4707	4707
4708	4708
4709	4709
4710	4710	SB3940 - 131 - LRB103 40496 RJT 72952 b
4711	4711
4712	4712
4713	4713	SB3940- 132 -LRB103 40496 RJT 72952 b SB3940 - 132 - LRB103 40496 RJT 72952 b
4714	4714	SB3940 - 132 - LRB103 40496 RJT 72952 b
4715	4715	1 beneficial interest, directly or indirectly, in a craft grower
4716	4716	2 license that would result in the person or entity owning or
4717	4717	3 controlling in combination with any craft grower, principal
4718	4718	4 officer of a craft grower, or entity controlled or affiliated
4719	4719	5 with a principal officer of a craft grower by which he, she, or
4720	4720	6 it is employed, is an agent of, or participates in the
4721	4721	7 management of more than 3 craft grower licenses.
4722	4722	8 (n) It is unlawful for any person having a craft grower
4723	4723	9 license or any officer, associate, member, representative, or
4724	4724	10 agent of the licensee to offer or deliver money, or anything
4725	4725	11 else of value, directly or indirectly, to any person having an
4726	4726	12 Early Approval Adult Use Dispensing Organization License, a
4727	4727	13 Conditional Adult Use Dispensing Organization License, an
4728	4728	14 Adult Use Dispensing Organization License, or a medical
4729	4729	15 cannabis dispensing organization license issued under the
4730	4730	16 Compassionate Use of Medical Cannabis Program Act, or to any
4731	4731	17 person connected with or in any way representing, or to any
4732	4732	18 member of the family of, the person holding an Early Approval
4733	4733	19 Adult Use Dispensing Organization License, a Conditional Adult
4734	4734	20 Use Dispensing Organization License, an Adult Use Dispensing
4735	4735	21 Organization License, or a medical cannabis dispensing
4736	4736	22 organization license issued under the Compassionate Use of
4737	4737	23 Medical Cannabis Program Act, or to any stockholders in any
4738	4738	24 corporation engaged in the retail sale of cannabis, or to any
4739	4739	25 officer, manager, agent, or representative of the Early
4740	4740	26 Approval Adult Use Dispensing Organization License, a
4741	4741
4742	4742
4743	4743
4744	4744
4745	4745
4746	4746	SB3940 - 132 - LRB103 40496 RJT 72952 b
4747	4747
4748	4748
4749	4749	SB3940- 133 -LRB103 40496 RJT 72952 b SB3940 - 133 - LRB103 40496 RJT 72952 b
4750	4750	SB3940 - 133 - LRB103 40496 RJT 72952 b
4751	4751	1 Conditional Adult Use Dispensing Organization License, an
4752	4752	2 Adult Use Dispensing Organization License, or a medical
4753	4753	3 cannabis dispensing organization license issued under the
4754	4754	4 Compassionate Use of Medical Cannabis Program Act to obtain
4755	4755	5 preferential placement within the dispensing organization,
4756	4756	6 including, without limitation, on shelves and in display cases
4757	4757	7 where purchasers can view products, or on the dispensing
4758	4758	8 organization's website.
4759	4759	9 (o) A craft grower shall not be located within 1,500 feet
4760	4760	10 of another craft grower or a cultivation center, except as
4761	4761	11 provided under Section 30-31.
4762	4762	12 (p) A craft grower may process cannabis, cannabis
4763	4763	13 concentrates, and cannabis-infused products.
4764	4764	14 (q) A craft grower must comply with any other requirements
4765	4765	15 or prohibitions set by administrative rule of the Department
4766	4766	16 of Agriculture.
4767	4767	17 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
4768	4768	18 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
4769	4769	19 5-13-22.)
4770	4770	20 (410 ILCS 705/30-31 new)
4771	4771	21 Sec. 30-31. Craft grower shared premises pilot program.
4772	4772	22 (a) The Department of Agriculture shall create a pilot
4773	4773	23 program that shall allow craft growers to share premises with
4774	4774	24 a cultivation center. The Department shall adopt rules to
4775	4775	25 specify that a craft grower may only locate within 1,500 feet
4776	4776
4777	4777
4778	4778
4779	4779
4780	4780
4781	4781	SB3940 - 133 - LRB103 40496 RJT 72952 b
4782	4782
4783	4783
4784	4784	SB3940- 134 -LRB103 40496 RJT 72952 b SB3940 - 134 - LRB103 40496 RJT 72952 b
4785	4785	SB3940 - 134 - LRB103 40496 RJT 72952 b
4786	4786	1 of another craft grower or cultivation center upon approval by
4787	4787	2 the Department, that multiple craft growers may share a
4788	4788	3 premises within a single cultivation center. A craft grower
4789	4789	4 may not share a premises with another craft grower outside of a
4790	4790	5 cultivation center.
4791	4791	6 (b) The Department of Agriculture shall adopt rules by
4792	4792	7 January 1, 2025.
4793	4793	8 (c) This Section is repealed on January 1, 2030.
4794	4794	9 (410 ILCS 705/30-32 new)
4795	4795	10 Sec. 30-32. Rules concerning application of pesticides.
4796	4796	11 Within one year after the effective date of this amendatory
4797	4797	12 Act of the 103rd General Assembly, the Department shall adopt
4798	4798	13 rules prohibiting the application of pesticides to cannabis
4799	4799	14 plants in the flowering stage in a craft grower facility.
4800	4800	15 (410 ILCS 705/30-35)
4801	4801	16 Sec. 30-35. Craft grower agent identification card.
4802	4802	17 (a) The Department of Agriculture shall:
4803	4803	18 (1) establish by rule the information required in an
4804	4804	19 initial application or renewal application for an agent
4805	4805	20 identification card submitted under this Act and the
4806	4806	21 nonrefundable fee to accompany the initial application or
4807	4807	22 renewal application;
4808	4808	23 (2) verify the information contained in an initial
4809	4809	24 application or renewal application for an agent
4810	4810
4811	4811
4812	4812
4813	4813
4814	4814
4815	4815	SB3940 - 134 - LRB103 40496 RJT 72952 b
4816	4816
4817	4817
4818	4818	SB3940- 135 -LRB103 40496 RJT 72952 b SB3940 - 135 - LRB103 40496 RJT 72952 b
4819	4819	SB3940 - 135 - LRB103 40496 RJT 72952 b
4820	4820	1 identification card submitted under this Act and approve
4821	4821	2 or deny an application within 30 days of receiving a
4822	4822	3 completed initial application or renewal application and
4823	4823	4 all supporting documentation required by rule;
4824	4824	5 (3) issue an agent identification card to a qualifying
4825	4825	6 agent within 15 business days of approving the initial
4826	4826	7 application or renewal application;
4827	4827	8 (4) enter the license number of the craft grower where
4828	4828	9 the agent works; and
4829	4829	10 (5) allow for an electronic initial application and
4830	4830	11 renewal application process, and provide a confirmation by
4831	4831	12 electronic or other methods that an application has been
4832	4832	13 submitted. The Department of Agriculture may by rule
4833	4833	14 require prospective agents to file their applications by
4834	4834	15 electronic means and provide notices to the agents by
4835	4835	16 electronic means.
4836	4836	17 (b) An agent must keep his or her identification card
4837	4837	18 visible at all times when on the property of a cannabis
4838	4838	19 business establishment, including the craft grower
4839	4839	20 organization for which he or she is an agent.
4840	4840	21 (c) The agent identification cards shall contain the
4841	4841	22 following:
4842	4842	23 (1) the name of the cardholder;
4843	4843	24 (2) the date of issuance and expiration date of the
4844	4844	25 identification card;
4845	4845	26 (3) a random 10-digit alphanumeric identification
4846	4846
4847	4847
4848	4848
4849	4849
4850	4850
4851	4851	SB3940 - 135 - LRB103 40496 RJT 72952 b
4852	4852
4853	4853
4854	4854	SB3940- 136 -LRB103 40496 RJT 72952 b SB3940 - 136 - LRB103 40496 RJT 72952 b
4855	4855	SB3940 - 136 - LRB103 40496 RJT 72952 b
4856	4856	1 number containing at least 4 numbers and at least 4
4857	4857	2 letters that is unique to the holder;
4858	4858	3 (4) a photograph of the cardholder; and
4859	4859	4 (5) the legal name of the craft grower organization
4860	4860	5 employing the agent.
4861	4861	6 (d) An agent identification card shall be immediately
4862	4862	7 returned to the cannabis business establishment of the agent
4863	4863	8 upon termination of his or her employment.
4864	4864	9 (e) Any agent identification card lost by a craft grower
4865	4865	10 agent shall be reported to the Illinois State Police and the
4866	4866	11 Department of Agriculture immediately upon discovery of the
4867	4867	12 loss.
4868	4868	13 (f) The Department of Agriculture may not issue an agent
4869	4869	14 identification card if the applicant is delinquent in filing
4870	4870	15 any required tax returns or paying any amounts owed to the
4871	4871	16 State.
4872	4872	17 (Source: P.A. 101-27, eff. 6-25-19; 102-538, eff. 8-20-21.)
4873	4873	18 (410 ILCS 705/30-45)
4874	4874	19 Sec. 30-45. Renewal of craft grower licenses and agent
4875	4875	20 identification cards.
4876	4876	21 (a) Licenses and identification cards issued under this
4877	4877	22 Act shall be renewed annually. A craft grower shall receive
4878	4878	23 written or electronic notice 90 days before the expiration of
4879	4879	24 its current license that the license will expire. The
4880	4880	25 Department of Agriculture shall grant a renewal within 45 days
4881	4881
4882	4882
4883	4883
4884	4884
4885	4885
4886	4886	SB3940 - 136 - LRB103 40496 RJT 72952 b
4887	4887
4888	4888
4889	4889	SB3940- 137 -LRB103 40496 RJT 72952 b SB3940 - 137 - LRB103 40496 RJT 72952 b
4890	4890	SB3940 - 137 - LRB103 40496 RJT 72952 b
4891	4891	1 of submission of a renewal application if:
4892	4892	2 (1) the craft grower submits a renewal application and
4893	4893	3 the required nonrefundable renewal fee of $40,000, or
4894	4894	4 another amount as the Department of Agriculture may set by
4895	4895	5 rule after January 1, 2021;
4896	4896	6 (2) the Department of Agriculture has not suspended
4897	4897	7 the license of the craft grower or suspended or revoked
4898	4898	8 the license for violating this Act or rules adopted under
4899	4899	9 this Act;
4900	4900	10 (3) the craft grower has continued to operate in
4901	4901	11 accordance with all plans submitted as part of its
4902	4902	12 application and approved by the Department of Agriculture
4903	4903	13 or any amendments thereto that have been approved by the
4904	4904	14 Department of Agriculture;
4905	4905	15 (4) the craft grower has submitted an agent, employee,
4906	4906	16 contracting, and subcontracting diversity report as
4907	4907	17 required by the Department; and
4908	4908	18 (5) the craft grower has submitted an environmental
4909	4909	19 impact report.
4910	4910	20 (b) If a craft grower fails to renew its license before
4911	4911	21 expiration, it shall cease operations until its license is
4912	4912	22 renewed.
4913	4913	23 (c) If a craft grower agent fails to renew his or her
4914	4914	24 identification card before its expiration, he or she shall
4915	4915	25 cease to work as an agent of the craft grower organization
4916	4916	26 until his or her identification card is renewed.
4917	4917
4918	4918
4919	4919
4920	4920
4921	4921
4922	4922	SB3940 - 137 - LRB103 40496 RJT 72952 b
4923	4923
4924	4924
4925	4925	SB3940- 138 -LRB103 40496 RJT 72952 b SB3940 - 138 - LRB103 40496 RJT 72952 b
4926	4926	SB3940 - 138 - LRB103 40496 RJT 72952 b
4927	4927	1 (d) Any craft grower that continues to operate, or any
4928	4928	2 craft grower agent who continues to work as an agent, after the
4929	4929	3 applicable license or identification card has expired without
4930	4930	4 renewal is subject to the penalties provided under Section
4931	4931	5 45-5.
4932	4932	6 (e) All fees or fines collected from the renewal of a craft
4933	4933	7 grower license shall be deposited into the Cannabis Regulation
4934	4934	8 Fund.
4935	4935	9 (f) The Department of Agriculture may not renew a license
4936	4936	10 or an agent identification card if the applicant is delinquent
4937	4937	11 in filing any required tax returns or paying any amounts owed
4938	4938	12 to the State.
4939	4939	13 (g) The Department and the Department of Financial and
4940	4940	14 Professional Regulation may develop and implement an
4941	4941	15 integrated system to issue an agent identification card which
4942	4942	16 identifies a craft grower agent licensed by the Department as
4943	4943	17 well as any cultivator, dispensary, transporter, community
4944	4944	18 college program or infuser license or registration the agent
4945	4945	19 may simultaneously hold.
4946	4946	20 (Source: P.A. 101-27, eff. 6-25-19.)
4947	4947	21 (410 ILCS 705/35-25)
4948	4948	22 Sec. 35-25. Infuser organization requirements;
4949	4949	23 prohibitions.
4950	4950	24 (a) The operating documents of an infuser shall include
4951	4951	25 procedures for the oversight of the infuser, an inventory
4952	4952
4953	4953
4954	4954
4955	4955
4956	4956
4957	4957	SB3940 - 138 - LRB103 40496 RJT 72952 b
4958	4958
4959	4959
4960	4960	SB3940- 139 -LRB103 40496 RJT 72952 b SB3940 - 139 - LRB103 40496 RJT 72952 b
4961	4961	SB3940 - 139 - LRB103 40496 RJT 72952 b
4962	4962	1 monitoring system including a physical inventory recorded
4963	4963	2 weekly, accurate recordkeeping, and a staffing plan.
4964	4964	3 (b) An infuser shall implement a security plan reviewed by
4965	4965	4 the Illinois State Police that includes, but is not limited
4966	4966	5 to: facility access controls, perimeter intrusion detection
4967	4967	6 systems, personnel identification systems, and a 24-hour
4968	4968	7 surveillance system to monitor the interior and exterior of
4969	4969	8 the infuser facility and that is accessible to authorized law
4970	4970	9 enforcement, the Department of Public Health, and the
4971	4971	10 Department of Agriculture in real time.
4972	4972	11 (c) All processing of cannabis by an infuser must take
4973	4973	12 place in an enclosed, locked facility at the physical address
4974	4974	13 provided to the Department of Agriculture during the licensing
4975	4975	14 process. The infuser location shall only be accessed by the
4976	4976	15 agents working for the infuser, the Department of Agriculture
4977	4977	16 staff performing inspections, the Department of Public Health
4978	4978	17 staff performing inspections, State and local law enforcement
4979	4979	18 or other emergency personnel, contractors working on jobs
4980	4980	19 unrelated to cannabis, such as installing or maintaining
4981	4981	20 security devices or performing electrical wiring, transporting
4982	4982	21 organization agents as provided in this Act, participants in
4983	4983	22 the incubator program, individuals in a mentoring or
4984	4984	23 educational program approved by the State, local safety or
4985	4985	24 health inspectors, or other individuals as provided by rule.
4986	4986	25 However, if an infuser shares a premises with a craft grower or
4987	4987	26 dispensing organization, agents from these other licensees may
4988	4988
4989	4989
4990	4990
4991	4991
4992	4992
4993	4993	SB3940 - 139 - LRB103 40496 RJT 72952 b
4994	4994
4995	4995
4996	4996	SB3940- 140 -LRB103 40496 RJT 72952 b SB3940 - 140 - LRB103 40496 RJT 72952 b
4997	4997	SB3940 - 140 - LRB103 40496 RJT 72952 b
4998	4998	1 access the infuser portion of the premises if that is the
4999	4999	2 location of common bathrooms, lunchrooms, locker rooms, or
5000	5000	3 other areas of the building where processing of cannabis is
5001	5001	4 not performed. At no time may a craft grower or dispensing
5002	5002	5 organization agent perform work at an infuser without being a
5003	5003	6 registered agent of the infuser.
5004	5004	7 (d) An infuser may not sell or distribute any cannabis or
5005	5005	8 any other product to any person other than a dispensing
5006	5006	9 organization, or as otherwise authorized by rule.
5007	5007	10 (e) An infuser may not either directly or indirectly
5008	5008	11 discriminate in price between different cannabis business
5009	5009	12 establishments that are purchasing a like grade, strain,
5010	5010	13 brand, and quality of cannabis or cannabis-infused product.
5011	5011	14 Nothing in this subsection (e) prevents an infuser from
5012	5012	15 pricing cannabis differently based on differences in the cost
5013	5013	16 of manufacturing or processing, the quantities sold, such
5014	5014	17 volume discounts, or the way the products are delivered.
5015	5015	18 (f) All cannabis infused by an infuser and intended for
5016	5016	19 distribution to a dispensing organization must be entered into
5017	5017	20 a data collection system, packaged and labeled under Section
5018	5018	21 55-21, and, if distribution is to a dispensing organization
5019	5019	22 that does not share a premises with the infuser, placed into a
5020	5020	23 cannabis container for transport. All cannabis produced by an
5021	5021	24 infuser and intended for distribution to a cultivation center,
5022	5022	25 infuser organization, or craft grower with which it does not
5023	5023	26 share a premises, must be packaged in a labeled cannabis
5024	5024
5025	5025
5026	5026
5027	5027
5028	5028
5029	5029	SB3940 - 140 - LRB103 40496 RJT 72952 b
5030	5030
5031	5031
5032	5032	SB3940- 141 -LRB103 40496 RJT 72952 b SB3940 - 141 - LRB103 40496 RJT 72952 b
5033	5033	SB3940 - 141 - LRB103 40496 RJT 72952 b
5034	5034	1 container and entered into a data collection system before
5035	5035	2 transport.
5036	5036	3 (g) Infusers are subject to random inspections by the
5037	5037	4 Department of Agriculture, the Department of Public Health,
5038	5038	5 the Illinois State Police, local law enforcement, or as
5039	5039	6 provided by rule.
5040	5040	7 (h) An infuser agent shall notify local law enforcement,
5041	5041	8 the Illinois State Police, and the Department of Agriculture
5042	5042	9 within 24 hours of the discovery of any loss or theft.
5043	5043	10 Notification shall be made by phone, in person, or by written
5044	5044	11 or electronic communication.
5045	5045	12 (i) An infuser organization may not be located in an area
5046	5046	13 zoned for residential use.
5047	5047	14 (j) An infuser or infuser agent shall not transport
5048	5048	15 cannabis or cannabis-infused products to any other cannabis
5049	5049	16 business establishment without a transport organization
5050	5050	17 license unless:
5051	5051	18 (i) If the infuser is located in a county with a
5052	5052	19 population of 3,000,000 or more, the cannabis business
5053	5053	20 establishment receiving the cannabis or cannabis-infused
5054	5054	21 product is within 2,000 feet of the property line of the
5055	5055	22 infuser;
5056	5056	23 (ii) If the infuser is located in a county with a
5057	5057	24 population of more than 700,000 but fewer than 3,000,000,
5058	5058	25 the cannabis business establishment receiving the cannabis
5059	5059	26 or cannabis-infused product is within 2 miles of the
5060	5060
5061	5061
5062	5062
5063	5063
5064	5064
5065	5065	SB3940 - 141 - LRB103 40496 RJT 72952 b
5066	5066
5067	5067
5068	5068	SB3940- 142 -LRB103 40496 RJT 72952 b SB3940 - 142 - LRB103 40496 RJT 72952 b
5069	5069	SB3940 - 142 - LRB103 40496 RJT 72952 b
5070	5070	1 infuser; or
5071	5071	2 (iii) If the infuser is located in a county with a
5072	5072	3 population of fewer than 700,000, the cannabis business
5073	5073	4 establishment receiving the cannabis or cannabis-infused
5074	5074	5 product is within 15 miles of the infuser.
5075	5075	6 (k) An infuser may enter into a contract with a
5076	5076	7 transporting organization to transport cannabis to a
5077	5077	8 dispensing organization or a laboratory.
5078	5078	9 (l) An infuser organization may share premises with a
5079	5079	10 craft grower or a dispensing organization, or both, provided
5080	5080	11 each licensee stores currency and cannabis or cannabis-infused
5081	5081	12 products in a separate secured vault to which the other
5082	5082	13 licensee does not have access or all licensees sharing a vault
5083	5083	14 share more than 50% of the same ownership.
5084	5084	15 (m) It is unlawful for any person or entity having an
5085	5085	16 infuser organization license or any officer, associate,
5086	5086	17 member, representative or agent of such licensee to offer or
5087	5087	18 deliver money, or anything else of value, directly or
5088	5088	19 indirectly to any person having an Early Approval Adult Use
5089	5089	20 Dispensing Organization License, a Conditional Adult Use
5090	5090	21 Dispensing Organization License, an Adult Use Dispensing
5091	5091	22 Organization License, or a medical cannabis dispensing
5092	5092	23 organization license issued under the Compassionate Use of
5093	5093	24 Medical Cannabis Program Act, or to any person connected with
5094	5094	25 or in any way representing, or to any member of the family of,
5095	5095	26 such person holding an Early Approval Adult Use Dispensing
5096	5096
5097	5097
5098	5098
5099	5099
5100	5100
5101	5101	SB3940 - 142 - LRB103 40496 RJT 72952 b
5102	5102
5103	5103
5104	5104	SB3940- 143 -LRB103 40496 RJT 72952 b SB3940 - 143 - LRB103 40496 RJT 72952 b
5105	5105	SB3940 - 143 - LRB103 40496 RJT 72952 b
5106	5106	1 Organization License, a Conditional Adult Use Dispensing
5107	5107	2 Organization License, an Adult Use Dispensing Organization
5108	5108	3 License, or a medical cannabis dispensing organization license
5109	5109	4 issued under the Compassionate Use of Medical Cannabis Program
5110	5110	5 Act, or to any stockholders in any corporation engaged the
5111	5111	6 retail sales of cannabis, or to any officer, manager, agent,
5112	5112	7 or representative of the Early Approval Adult Use Dispensing
5113	5113	8 Organization License, a Conditional Adult Use Dispensing
5114	5114	9 Organization License, an Adult Use Dispensing Organization
5115	5115	10 License, or a medical cannabis dispensing organization license
5116	5116	11 issued under the Compassionate Use of Medical Cannabis Program
5117	5117	12 Act to obtain preferential placement within the dispensing
5118	5118	13 organization, including, without limitation, on shelves and in
5119	5119	14 display cases where purchasers can view products, or on the
5120	5120	15 dispensing organization's website.
5121	5121	16 (n) At no time shall an infuser organization or an infuser
5122	5122	17 agent perform the extraction of cannabis concentrate from
5123	5123	18 cannabis flower except if the infuser organization has also
5124	5124	19 been issued a processor license under subsection (f) of
5125	5125	20 Section 35-31.
5126	5126	21 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
5127	5127	22 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
5128	5128	23 5-13-22.)
5129	5129	24 (410 ILCS 705/35-30)
5130	5130	25 Sec. 35-30. Infuser agent identification card.
5131	5131
5132	5132
5133	5133
5134	5134
5135	5135
5136	5136	SB3940 - 143 - LRB103 40496 RJT 72952 b
5137	5137
5138	5138
5139	5139	SB3940- 144 -LRB103 40496 RJT 72952 b SB3940 - 144 - LRB103 40496 RJT 72952 b
5140	5140	SB3940 - 144 - LRB103 40496 RJT 72952 b
5141	5141	1 (a) The Department of Agriculture shall:
5142	5142	2 (1) establish by rule the information required in an
5143	5143	3 initial application or renewal application for an agent
5144	5144	4 identification card submitted under this Act and the
5145	5145	5 nonrefundable fee to accompany the initial application or
5146	5146	6 renewal application;
5147	5147	7 (2) verify the information contained in an initial
5148	5148	8 application or renewal application for an agent
5149	5149	9 identification card submitted under this Act, and approve
5150	5150	10 or deny an application within 30 days of receiving a
5151	5151	11 completed initial application or renewal application and
5152	5152	12 all supporting documentation required by rule;
5153	5153	13 (3) issue an agent identification card to a qualifying
5154	5154	14 agent within 15 business days of approving the initial
5155	5155	15 application or renewal application;
5156	5156	16 (4) enter the license number of the infuser where the
5157	5157	17 agent works; and
5158	5158	18 (5) allow for an electronic initial application and
5159	5159	19 renewal application process, and provide a confirmation by
5160	5160	20 electronic or other methods that an application has been
5161	5161	21 submitted. The Department of Agriculture may by rule
5162	5162	22 require prospective agents to file their applications by
5163	5163	23 electronic means and provide notices to the agents by
5164	5164	24 electronic means.
5165	5165	25 (b) An agent must keep his or her identification card
5166	5166	26 visible at all times when on the property of a cannabis
5167	5167
5168	5168
5169	5169
5170	5170
5171	5171
5172	5172	SB3940 - 144 - LRB103 40496 RJT 72952 b
5173	5173
5174	5174
5175	5175	SB3940- 145 -LRB103 40496 RJT 72952 b SB3940 - 145 - LRB103 40496 RJT 72952 b
5176	5176	SB3940 - 145 - LRB103 40496 RJT 72952 b
5177	5177	1 business establishment including the cannabis business
5178	5178	2 establishment for which he or she is an agent.
5179	5179	3 (c) The agent identification cards shall contain the
5180	5180	4 following:
5181	5181	5 (1) the name of the cardholder;
5182	5182	6 (2) the date of issuance and expiration date of the
5183	5183	7 identification card;
5184	5184	8 (3) a random 10-digit alphanumeric identification
5185	5185	9 number containing at least 4 numbers and at least 4
5186	5186	10 letters that is unique to the holder;
5187	5187	11 (4) a photograph of the cardholder; and
5188	5188	12 (5) the legal name of the infuser organization
5189	5189	13 employing the agent.
5190	5190	14 (d) An agent identification card shall be immediately
5191	5191	15 returned to the infuser organization of the agent upon
5192	5192	16 termination of his or her employment.
5193	5193	17 (e) Any agent identification card lost by a transporting
5194	5194	18 agent shall be reported to the Illinois State Police and the
5195	5195	19 Department of Agriculture immediately upon discovery of the
5196	5196	20 loss.
5197	5197	21 (f) An agent applicant may begin employment at an infuser
5198	5198	22 organization while the agent applicant's identification card
5199	5199	23 application is pending. Upon approval, the Department shall
5200	5200	24 issue the agent's identification card to the agent. If denied,
5201	5201	25 the infuser organization and the agent applicant shall be
5202	5202	26 notified and the agent applicant must cease all activity at
5203	5203
5204	5204
5205	5205
5206	5206
5207	5207
5208	5208	SB3940 - 145 - LRB103 40496 RJT 72952 b
5209	5209
5210	5210
5211	5211	SB3940- 146 -LRB103 40496 RJT 72952 b SB3940 - 146 - LRB103 40496 RJT 72952 b
5212	5212	SB3940 - 146 - LRB103 40496 RJT 72952 b
5213	5213	1 the infuser organization immediately.
5214	5214	2 (g) The Department of Agriculture may not issue an agent
5215	5215	3 identification card if the applicant is delinquent in filing
5216	5216	4 any required tax returns or paying any amounts owed to the
5217	5217	5 State.
5218	5218	6 (h) The Department and the Department of Financial and
5219	5219	7 Professional Regulation may develop and implement an
5220	5220	8 integrated system to issue an agent identification card which
5221	5221	9 identifies an infuser agent licensed by the Department as well
5222	5222	10 as any cultivation center, craft grower, transporter,
5223	5223	11 dispensing organization, or community college program license
5224	5224	12 or registration the agent may simultaneously hold.
5225	5225	13 (Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21;
5226	5226	14 102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)
5227	5227	15 (410 ILCS 705/45-5)
5228	5228	16 Sec. 45-5. License suspension; revocation; other
5229	5229	17 penalties.
5230	5230	18 (a) Notwithstanding any other criminal penalties related
5231	5231	19 to the unlawful possession of cannabis, the Department of
5232	5232	20 Financial and Professional Regulation and the Department of
5233	5233	21 Agriculture may revoke, suspend, place on probation,
5234	5234	22 reprimand, issue cease and desist orders, refuse to issue or
5235	5235	23 renew a license, or take any other disciplinary or
5236	5236	24 nondisciplinary action as each department may deem proper with
5237	5237	25 regard to a cannabis business establishment or cannabis
5238	5238
5239	5239
5240	5240
5241	5241
5242	5242
5243	5243	SB3940 - 146 - LRB103 40496 RJT 72952 b
5244	5244
5245	5245
5246	5246	SB3940- 147 -LRB103 40496 RJT 72952 b SB3940 - 147 - LRB103 40496 RJT 72952 b
5247	5247	SB3940 - 147 - LRB103 40496 RJT 72952 b
5248	5248	1 business establishment agent, including fines not to exceed:
5249	5249	2 (1) $50,000 for each violation of this Act or rules
5250	5250	3 adopted under this Act by a cultivation center or
5251	5251	4 cultivation center agent;
5252	5252	5 (2) $20,000 for each violation of this Act or rules
5253	5253	6 adopted under this Act by a dispensing organization or
5254	5254	7 dispensing organization agent;
5255	5255	8 (3) $15,000 for each violation of this Act or rules
5256	5256	9 adopted under this Act by a craft grower or craft grower
5257	5257	10 agent;
5258	5258	11 (4) $10,000 for each violation of this Act or rules
5259	5259	12 adopted under this Act by an infuser organization or
5260	5260	13 infuser organization agent; and
5261	5261	14 (5) $10,000 for each violation of this Act or rules
5262	5262	15 adopted under this Act by a transporting organization or
5263	5263	16 transporting organization agent.
5264	5264	17 (6) [$15,000] for each violation of this Act or rules
5265	5265	18 adopted under this Act by a cannabis testing facility.
5266	5266	19 (b) The Department of Financial and Professional
5267	5267	20 Regulation and the Department of Agriculture, as the case may
5268	5268	21 be, shall consider licensee cooperation in any agency or other
5269	5269	22 investigation in its determination of penalties imposed under
5270	5270	23 this Section.
5271	5271	24 (c) The procedures for disciplining a cannabis business
5272	5272	25 establishment or cannabis business establishment agent and for
5273	5273	26 administrative hearings shall be determined by rule, and shall
5274	5274
5275	5275
5276	5276
5277	5277
5278	5278
5279	5279	SB3940 - 147 - LRB103 40496 RJT 72952 b
5280	5280
5281	5281
5282	5282	SB3940- 148 -LRB103 40496 RJT 72952 b SB3940 - 148 - LRB103 40496 RJT 72952 b
5283	5283	SB3940 - 148 - LRB103 40496 RJT 72952 b
5284	5284	1 provide for the review of final decisions under the
5285	5285	2 Administrative Review Law.
5286	5286	3 (d) The Attorney General may also enforce a violation of
5287	5287	4 Section 55-20, Section 55-21, and Section 15-155 as an
5288	5288	5 unlawful practice under the Consumer Fraud and Deceptive
5289	5289	6 Business Practices Act.
5290	5290	7 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
5291	5291	8 (410 ILCS 705/50-5)
5292	5292	9 Sec. 50-5. Laboratory testing.
5293	5293	10 (a) Notwithstanding any other provision of law, the
5294	5294	11 following acts, when performed by a cannabis testing facility
5295	5295	12 with a current, valid license registration, or a person 21
5296	5296	13 years of age or older who is acting in his or her capacity as
5297	5297	14 an owner, employee, or agent of a cannabis testing facility,
5298	5298	15 are not unlawful and shall not be an offense under Illinois law
5299	5299	16 or be a basis for seizure or forfeiture of assets under
5300	5300	17 Illinois law:
5301	5301	18 (1) possessing, repackaging, transporting, storing, or
5302	5302	19 displaying cannabis or cannabis-infused products;
5303	5303	20 (2) receiving or transporting cannabis or
5304	5304	21 cannabis-infused products from a cannabis business
5305	5305	22 establishment, a community college licensed under the
5306	5306	23 Community College Cannabis Vocational Training Pilot
5307	5307	24 Program, or a person 21 years of age or older; and
5308	5308	25 (3) returning or transporting cannabis or
5309	5309
5310	5310
5311	5311
5312	5312
5313	5313
5314	5314	SB3940 - 148 - LRB103 40496 RJT 72952 b
5315	5315
5316	5316
5317	5317	SB3940- 149 -LRB103 40496 RJT 72952 b SB3940 - 149 - LRB103 40496 RJT 72952 b
5318	5318	SB3940 - 149 - LRB103 40496 RJT 72952 b
5319	5319	1 cannabis-infused products to a cannabis business
5320	5320	2 establishment, a community college licensed under the
5321	5321	3 Community College Cannabis Vocational Training Pilot
5322	5322	4 Program, or a person 21 years of age or older.
5323	5323	5 (b)(1) No laboratory shall handle, test, or analyze
5324	5324	6 cannabis unless approved by the Department of Agriculture in
5325	5325	7 accordance with this Section.
5326	5326	8 (2) No laboratory shall be approved to handle, test, or
5327	5327	9 analyze cannabis unless the laboratory:
5328	5328	10 (A) is licensed by the Department of Agriculture;
5329	5329	11 (A-5) is accredited by a private laboratory
5330	5330	12 accrediting organization;
5331	5331	13 (B) is independent from all other persons involved in
5332	5332	14 the cannabis industry in Illinois and no person with a
5333	5333	15 direct or indirect interest in the laboratory has a direct
5334	5334	16 or indirect financial, management, or other interest in an
5335	5335	17 Illinois cultivation center, craft grower, dispensary,
5336	5336	18 infuser, transporter, certifying physician, or any other
5337	5337	19 entity in the State that may benefit from the production,
5338	5338	20 manufacture, dispensing, sale, purchase, or use of
5339	5339	21 cannabis; and
5340	5340	22 (C) has employed at least one person to oversee and be
5341	5341	23 responsible for the laboratory testing who has earned,
5342	5342	24 from a college or university accredited by a national or
5343	5343	25 regional certifying authority, at least:
5344	5344	26 (i) a master's level degree in chemical or
5345	5345
5346	5346
5347	5347
5348	5348
5349	5349
5350	5350	SB3940 - 149 - LRB103 40496 RJT 72952 b
5351	5351
5352	5352
5353	5353	SB3940- 150 -LRB103 40496 RJT 72952 b SB3940 - 150 - LRB103 40496 RJT 72952 b
5354	5354	SB3940 - 150 - LRB103 40496 RJT 72952 b
5355	5355	1 biological sciences and a minimum of 2 years'
5356	5356	2 post-degree laboratory experience; or
5357	5357	3 (ii) a bachelor's degree in chemical or biological
5358	5358	4 sciences and a minimum of 4 years' post-degree
5359	5359	5 laboratory experience.
5360	5360	6 (3) Each independent testing laboratory that claims to be
5361	5361	7 accredited must provide the Department of Agriculture with a
5362	5362	8 copy of the most recent annual inspection report granting
5363	5363	9 accreditation and every annual report thereafter.
5364	5364	10 (c) Immediately before manufacturing or natural processing
5365	5365	11 of any cannabis or cannabis-infused product or packaging
5366	5366	12 cannabis for sale to a dispensary, each batch shall be made
5367	5367	13 available by the cultivation center, craft grower, or infuser
5368	5368	14 for an employee of an approved laboratory to select a random
5369	5369	15 sample, which shall be tested by the approved laboratory for:
5370	5370	16 (1) microbiological contaminants;
5371	5371	17 (2) mycotoxins;
5372	5372	18 (3) pesticide active ingredients;
5373	5373	19 (4) residual solvent; and
5374	5374	20 (5) an active ingredient analysis.
5375	5375	21 (d) The Department of Agriculture may select a random
5376	5376	22 sample that shall, for the purposes of conducting an active
5377	5377	23 ingredient analysis, be tested by the Department of
5378	5378	24 Agriculture for verification of label information and any
5379	5379	25 other testing deemed necessary by the Department.
5380	5380	26 (e) A laboratory shall immediately return or dispose of
5381	5381
5382	5382
5383	5383
5384	5384
5385	5385
5386	5386	SB3940 - 150 - LRB103 40496 RJT 72952 b
5387	5387
5388	5388
5389	5389	SB3940- 151 -LRB103 40496 RJT 72952 b SB3940 - 151 - LRB103 40496 RJT 72952 b
5390	5390	SB3940 - 151 - LRB103 40496 RJT 72952 b
5391	5391	1 any cannabis upon the completion of any testing, use, or
5392	5392	2 research. If cannabis is disposed of, it shall be done in
5393	5393	3 compliance with Department of Agriculture rule.
5394	5394	4 (f) If a sample of cannabis does not pass the
5395	5395	5 microbiological, mycotoxin, pesticide chemical residue, or
5396	5396	6 solvent residue test, based on the standards established by
5397	5397	7 the Department of Agriculture, the following shall apply:
5398	5398	8 (1) If the sample failed the pesticide chemical
5399	5399	9 residue test, the entire batch from which the sample was
5400	5400	10 taken shall, if applicable, be recalled as provided by
5401	5401	11 rule.
5402	5402	12 (2) If the sample failed any other test, the batch may
5403	5403	13 be used to make a CO2-based or solvent based extract. After
5404	5404	14 processing, the CO2-based or solvent based extract must
5405	5405	15 still pass all required tests.
5406	5406	16 (g) The Department of Agriculture shall establish
5407	5407	17 standards for microbial, mycotoxin, pesticide residue, solvent
5408	5408	18 residue, or other standards for the presence of possible
5409	5409	19 contaminants, in addition to labeling requirements for
5410	5410	20 contents and potency.
5411	5411	21 (h) The laboratory shall file with the Department of
5412	5412	22 Agriculture an electronic copy of each laboratory test result
5413	5413	23 for any batch that does not pass the microbiological,
5414	5414	24 mycotoxin, or pesticide chemical residue test, at the same
5415	5415	25 time that it transmits those results to the cultivation
5416	5416	26 center. In addition, the laboratory shall maintain the
5417	5417
5418	5418
5419	5419
5420	5420
5421	5421
5422	5422	SB3940 - 151 - LRB103 40496 RJT 72952 b
5423	5423
5424	5424
5425	5425	SB3940- 152 -LRB103 40496 RJT 72952 b SB3940 - 152 - LRB103 40496 RJT 72952 b
5426	5426	SB3940 - 152 - LRB103 40496 RJT 72952 b
5427	5427	1 laboratory test results for at least 5 years and make them
5428	5428	2 available at the Department of Agriculture's request.
5429	5429	3 (i) A cultivation center, craft grower, and infuser shall
5430	5430	4 provide to a dispensing organization the laboratory test
5431	5431	5 results for each batch of cannabis product purchased by the
5432	5432	6 dispensing organization, if sampled. Each dispensing
5433	5433	7 organization must have those laboratory results available upon
5434	5434	8 request to purchasers.
5435	5435	9 (j) The Department of Agriculture may adopt rules related
5436	5436	10 to testing and licensing of laboratories in furtherance of
5437	5437	11 this Act.
5438	5438	12 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
5439	5439	13 (410 ILCS 705/55-30)
5440	5440	14 Sec. 55-30. Confidentiality.
5441	5441	15 (a) Information provided by the cannabis business
5442	5442	16 establishment licensees or applicants to the Department of
5443	5443	17 Agriculture, the Department of Public Health, the Department
5444	5444	18 of Financial and Professional Regulation, the Department of
5445	5445	19 Commerce and Economic Opportunity, or other agency shall be
5446	5446	20 limited to information necessary for the purposes of
5447	5447	21 administering this Act. The information is subject to the
5448	5448	22 provisions and limitations contained in the Freedom of
5449	5449	23 Information Act and may be disclosed in accordance with
5450	5450	24 Section 55-65.
5451	5451	25 (b) The following information received and records kept by
5452	5452
5453	5453
5454	5454
5455	5455
5456	5456
5457	5457	SB3940 - 152 - LRB103 40496 RJT 72952 b
5458	5458
5459	5459
5460	5460	SB3940- 153 -LRB103 40496 RJT 72952 b SB3940 - 153 - LRB103 40496 RJT 72952 b
5461	5461	SB3940 - 153 - LRB103 40496 RJT 72952 b
5462	5462	1 the Department of Agriculture, the Department of Public
5463	5463	2 Health, the Illinois State Police, and the Department of
5464	5464	3 Financial and Professional Regulation for purposes of
5465	5465	4 administering this Article are subject to all applicable
5466	5466	5 federal privacy laws, are confidential and exempt from
5467	5467	6 disclosure under the Freedom of Information Act, except as
5468	5468	7 provided in this Act, and not subject to disclosure to any
5469	5469	8 individual or public or private entity, except to the
5470	5470	9 Department of Financial and Professional Regulation, the
5471	5471	10 Department of Agriculture, the Department of Public Health,
5472	5472	11 the Department of Commerce and Economic Opportunity, the
5473	5473	12 Office of Executive Inspector General and the Illinois State
5474	5474	13 Police as necessary to perform official duties under this
5475	5475	14 Article, and to the Attorney General as necessary to enforce
5476	5476	15 the provisions of this Act, and except as necessary to those
5477	5477	16 involved in enforcing the State Officials and Employees Ethics
5478	5478	17 Act. The following information received and kept by the
5479	5479	18 Department of Financial and Professional Regulation or the
5480	5480	19 Department of Agriculture may be disclosed to the Department
5481	5481	20 of Public Health, the Department of Agriculture, the
5482	5482	21 Department of Revenue, the Illinois State Police, the
5483	5483	22 Department of Commerce and Economic Opportunity, the Office of
5484	5484	23 Executive Inspector General, or the Attorney General upon
5485	5485	24 proper request:
5486	5486	25 (1) (Blank); Applications and renewals, their
5487	5487	26 contents, and supporting information submitted by or on
5488	5488
5489	5489
5490	5490
5491	5491
5492	5492
5493	5493	SB3940 - 153 - LRB103 40496 RJT 72952 b
5494	5494
5495	5495
5496	5496	SB3940- 154 -LRB103 40496 RJT 72952 b SB3940 - 154 - LRB103 40496 RJT 72952 b
5497	5497	SB3940 - 154 - LRB103 40496 RJT 72952 b
5498	5498	1 behalf of dispensing organizations, cannabis business
5499	5499	2 establishments, or Community College Cannabis Vocational
5500	5500	3 Program licensees, in compliance with this Article,
5501	5501	4 including their physical addresses; however, this does not
5502	5502	5 preclude the release of ownership information about
5503	5503	6 cannabis business establishment licenses, or information
5504	5504	7 submitted with an application required to be disclosed
5505	5505	8 pursuant to subsection (f);
5506	5506	9 (2) Any plans, procedures, policies, or other records
5507	5507	10 relating to cannabis business establishment security; and
5508	5508	11 (3) Information otherwise exempt from disclosure by
5509	5509	12 State or federal law.
5510	5510	13 Illinois or national criminal history record information,
5511	5511	14 or the nonexistence or lack of such information, may not be
5512	5512	15 disclosed by the Department of Financial and Professional
5513	5513	16 Regulation or the Department of Agriculture, except as
5514	5514	17 necessary to the Attorney General to enforce this Act.
5515	5515	18 (c) (Blank). The name and address of a dispensing
5516	5516	19 organization licensed under this Act shall be subject to
5517	5517	20 disclosure under the Freedom of Information Act. The name and
5518	5518	21 cannabis business establishment address of the person or
5519	5519	22 entity holding each cannabis business establishment license
5520	5520	23 shall be subject to disclosure.
5521	5521	24 (d) All information collected by the Department of
5522	5522	25 Financial and Professional Regulation or the Department of
5523	5523	26 Agriculture in the course of an examination, inspection, or
5524	5524
5525	5525
5526	5526
5527	5527
5528	5528
5529	5529	SB3940 - 154 - LRB103 40496 RJT 72952 b
5530	5530
5531	5531
5532	5532	SB3940- 155 -LRB103 40496 RJT 72952 b SB3940 - 155 - LRB103 40496 RJT 72952 b
5533	5533	SB3940 - 155 - LRB103 40496 RJT 72952 b
5534	5534	1 investigation of a licensee or applicant, including, but not
5535	5535	2 limited to, any complaint against a licensee or applicant
5536	5536	3 filed with the Department of Financial and Professional
5537	5537	4 Regulation or the Department of Agriculture and information
5538	5538	5 collected to investigate any such complaint, shall be
5539	5539	6 maintained for the confidential use of the Department of
5540	5540	7 Financial and Professional Regulation or the Department of
5541	5541	8 Agriculture and shall not be disclosed, except to those
5542	5542	9 involved in enforcing the State Officials and Employees Ethics
5543	5543	10 Act and as otherwise provided in this Act. A formal complaint
5544	5544	11 against a licensee by the Department of Financial and
5545	5545	12 Professional Regulation or the Department of Agriculture or
5546	5546	13 any disciplinary order issued by the Department of Financial
5547	5547	14 and Professional Regulation or the Department of Agriculture
5548	5548	15 against a licensee or applicant shall be a public record,
5549	5549	16 except as otherwise provided by law. Complaints from consumers
5550	5550	17 or members of the general public received regarding a
5551	5551	18 specific, named licensee or complaints regarding conduct by
5552	5552	19 unlicensed entities shall be subject to disclosure under the
5553	5553	20 Freedom of Information Act.
5554	5554	21 (e) The Department of Agriculture, the Illinois State
5555	5555	22 Police, and the Department of Financial and Professional
5556	5556	23 Regulation shall not share or disclose any Illinois or
5557	5557	24 national criminal history record information, or the
5558	5558	25 nonexistence or lack of such information, to any person or
5559	5559	26 entity not expressly authorized by this Act.
5560	5560
5561	5561
5562	5562
5563	5563
5564	5564
5565	5565	SB3940 - 155 - LRB103 40496 RJT 72952 b
5566	5566
5567	5567
5568	5568	SB3940- 156 -LRB103 40496 RJT 72952 b SB3940 - 156 - LRB103 40496 RJT 72952 b
5569	5569	SB3940 - 156 - LRB103 40496 RJT 72952 b
5570	5570	1 (f) (Blank). Each Department responsible for licensure
5571	5571	2 under this Act shall publish on the Department's website a
5572	5572	3 list of the ownership information of cannabis business
5573	5573	4 establishment licensees under the Department's jurisdiction.
5574	5574	5 The list shall include, but is not limited to: the name of the
5575	5575	6 person or entity holding each cannabis business establishment
5576	5576	7 license; and the address at which the entity is operating
5577	5577	8 under this Act. This list shall be published and updated
5578	5578	9 monthly.
5579	5579	10 (g) Notwithstanding anything in this Section to the
5580	5580	11 contrary, the Department of Financial and Professional
5581	5581	12 Regulation and the Department of Agriculture may share
5582	5582	13 licensee information with the Department of Commerce and
5583	5583	14 Economic Opportunity necessary to support the administration
5584	5584	15 of Social Equity programming.
5585	5585	16 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
5586	5586	17 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
5587	5587	18 5-13-22.)
5588	5588	19 (410 ILCS 705/55-65)
5589	5589	20 Sec. 55-65. Financial institutions.
5590	5590	21 (a) A financial institution that provides financial
5591	5591	22 services customarily provided by financial institutions to a
5592	5592	23 cannabis business establishment authorized under this Act or
5593	5593	24 the Compassionate Use of Medical Cannabis Program Act, or to a
5594	5594	25 person that is affiliated with such cannabis business
5595	5595
5596	5596
5597	5597
5598	5598
5599	5599
5600	5600	SB3940 - 156 - LRB103 40496 RJT 72952 b
5601	5601
5602	5602
5603	5603	SB3940- 157 -LRB103 40496 RJT 72952 b SB3940 - 157 - LRB103 40496 RJT 72952 b
5604	5604	SB3940 - 157 - LRB103 40496 RJT 72952 b
5605	5605	1 establishment, is exempt from any criminal law of this State
5606	5606	2 as it relates to cannabis-related conduct authorized under
5607	5607	3 State law.
5608	5608	4 (b) Upon request of a financial institution, a cannabis
5609	5609	5 business establishment or proposed cannabis business
5610	5610	6 establishment may provide to the financial institution the
5611	5611	7 following information:
5612	5612	8 (1) Whether a cannabis business establishment with
5613	5613	9 which the financial institution is doing or is considering
5614	5614	10 doing business holds a license under this Act or the
5615	5615	11 Compassionate Use of Medical Cannabis Program Act;
5616	5616	12 (2) The name of any other business or individual
5617	5617	13 affiliate with the cannabis business establishment;
5618	5618	14 (3) A copy of the application, and any supporting
5619	5619	15 documentation submitted with the application, for a
5620	5620	16 license or a permit submitted on behalf of the proposed
5621	5621	17 cannabis business establishment;
5622	5622	18 (4) If applicable, data relating to sales and the
5623	5623	19 volume of product sold by the cannabis business
5624	5624	20 establishment;
5625	5625	21 (5) Any past or pending violation by the person of
5626	5626	22 this Act, the Compassionate Use of Medical Cannabis
5627	5627	23 Program Act, or the rules adopted under these Acts where
5628	5628	24 applicable; and
5629	5629	25 (6) Any penalty imposed upon the person for violating
5630	5630	26 this Act, the Compassionate Use of Medical Cannabis
5631	5631
5632	5632
5633	5633
5634	5634
5635	5635
5636	5636	SB3940 - 157 - LRB103 40496 RJT 72952 b
5637	5637
5638	5638
5639	5639	SB3940- 158 -LRB103 40496 RJT 72952 b SB3940 - 158 - LRB103 40496 RJT 72952 b
5640	5640	SB3940 - 158 - LRB103 40496 RJT 72952 b
5641	5641	1 Program Act, or the rules adopted under these Acts.
5642	5642	2 (c) (Blank).
5643	5643	3 (d) (Blank).
5644	5644	4 (e) Information received by a financial institution under
5645	5645	5 this Section is confidential. Except as otherwise required or
5646	5646	6 permitted by this Act, State law or rule, or federal law or
5647	5647	7 regulation, a financial institution may not make the
5648	5648	8 information available to any person other than:
5649	5649	9 (1) the customer to whom the information applies;
5650	5650	10 (2) a trustee, conservator, guardian, personal
5651	5651	11 representative, or agent of the customer to whom the
5652	5652	12 information applies; a federal or State regulator when
5653	5653	13 requested in connection with an examination of the
5654	5654	14 financial institution or if otherwise necessary for
5655	5655	15 complying with federal or State law;
5656	5656	16 (3) a federal or State regulator when requested in
5657	5657	17 connection with an examination of the financial
5658	5658	18 institution or if otherwise necessary for complying with
5659	5659	19 federal or State law; and
5660	5660	20 (4) a third party performing services for the
5661	5661	21 financial institution, provided the third party is
5662	5662	22 performing such services under a written agreement that
5663	5663	23 expressly or by operation of law prohibits the third
5664	5664	24 party's sharing and use of such confidential information
5665	5665	25 for any purpose other than as provided in its agreement to
5666	5666	26 provide services to the financial institution; and .
5667	5667
5668	5668
5669	5669
5670	5670
5671	5671
5672	5672	SB3940 - 158 - LRB103 40496 RJT 72952 b
5673	5673
5674	5674
5675	5675	SB3940- 159 -LRB103 40496 RJT 72952 b SB3940 - 159 - LRB103 40496 RJT 72952 b
5676	5676	SB3940 - 159 - LRB103 40496 RJT 72952 b
5677	5677	1 (5) the Office of Executive Inspector General pursuant
5678	5678	2 to an investigation.
5679	5679	3 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
5680	5680	4 (410 ILCS 705/60-10)
5681	5681	5 Sec. 60-10. Tax imposed.
5682	5682	6 (a) Beginning September 1, 2019, a tax is imposed upon the
5683	5683	7 privilege of cultivating cannabis at the rate of 7% of the
5684	5684	8 gross receipts from the first sale of cannabis by a
5685	5685	9 cultivator. The sale of any product that contains any amount
5686	5686	10 of cannabis or any derivative thereof is subject to the tax
5687	5687	11 under this Section on the full selling price of the product.
5688	5688	12 The Department may determine the selling price of the cannabis
5689	5689	13 when the seller and purchaser are affiliated persons, when the
5690	5690	14 sale and purchase of cannabis is not an arm's length
5691	5691	15 transaction, or when cannabis is transferred by a craft grower
5692	5692	16 to the craft grower's dispensing organization or infuser or
5693	5693	17 processing organization and a value is not established for the
5694	5694	18 cannabis. The value determined by the Department shall be
5695	5695	19 commensurate with the actual price received for products of
5696	5696	20 like quality, character, and use in the area. If there are no
5697	5697	21 sales of cannabis of like quality, character, and use in the
5698	5698	22 same area, then the Department shall establish a reasonable
5699	5699	23 value based on sales of products of like quality, character,
5700	5700	24 and use in other areas of the State, taking into consideration
5701	5701	25 any other relevant factors.
5702	5702
5703	5703
5704	5704
5705	5705
5706	5706
5707	5707	SB3940 - 159 - LRB103 40496 RJT 72952 b
5708	5708
5709	5709
5710	5710	SB3940- 160 -LRB103 40496 RJT 72952 b SB3940 - 160 - LRB103 40496 RJT 72952 b
5711	5711	SB3940 - 160 - LRB103 40496 RJT 72952 b
5712	5712	1 (b) The Cannabis Cultivation Privilege Tax imposed under
5713	5713	2 this Article is solely the responsibility of the cultivator
5714	5714	3 who makes the first sale and is not the responsibility of a
5715	5715	4 subsequent purchaser, a dispensing organization, or an
5716	5716	5 infuser. Persons subject to the tax imposed under this Article
5717	5717	6 may, however, reimburse themselves for their tax liability
5718	5718	7 hereunder by separately stating reimbursement for their tax
5719	5719	8 liability as an additional charge.
5720	5720	9 (c) The tax imposed under this Article shall be in
5721	5721	10 addition to all other occupation, privilege, or excise taxes
5722	5722	11 imposed by the State of Illinois or by any unit of local
5723	5723	12 government.
5724	5724	13 (Source: P.A. 101-27, eff. 6-25-19.)
5725	5725	14 (410 ILCS 705/65-10)
5726	5726	15 Sec. 65-10. Tax imposed.
5727	5727	16 (a) Beginning January 1, 2020, a tax is imposed upon
5728	5728	17 purchasers for the privilege of using cannabis, and not for
5729	5729	18 the purpose of resale, at the following rates:
5730	5730	19 (1) Any cannabis, other than a cannabis-infused
5731	5731	20 product, with an adjusted delta-9-tetrahydrocannabinol
5732	5732	21 level at or below 35% shall be taxed at a rate of 10% of
5733	5733	22 the purchase price;
5734	5734	23 (2) Any cannabis, other than a cannabis-infused
5735	5735	24 product, with an adjusted delta-9-tetrahydrocannabinol
5736	5736	25 level above 35% shall be taxed at a rate of 25% of the
5737	5737
5738	5738
5739	5739
5740	5740
5741	5741
5742	5742	SB3940 - 160 - LRB103 40496 RJT 72952 b
5743	5743
5744	5744
5745	5745	SB3940- 161 -LRB103 40496 RJT 72952 b SB3940 - 161 - LRB103 40496 RJT 72952 b
5746	5746	SB3940 - 161 - LRB103 40496 RJT 72952 b
5747	5747	1 purchase price; and
5748	5748	2 (3) A cannabis-infused product shall be taxed at a
5749	5749	3 rate of 20% of the purchase price.
5750	5750	4 (b) The purchase of any product that contains any amount
5751	5751	5 of cannabis or any derivative thereof is subject to the tax
5752	5752	6 under subsection (a) of this Section on the full purchase
5753	5753	7 price of the product.
5754	5754	8 (c) The tax imposed under this Section is not imposed on
5755	5755	9 cannabis that is subject to tax under the Compassionate Use of
5756	5756	10 Medical Cannabis Program Act. The tax imposed by this Section
5757	5757	11 is not imposed with respect to any transaction in interstate
5758	5758	12 commerce, to the extent the transaction may not, under the
5759	5759	13 Constitution and statutes of the United States, be made the
5760	5760	14 subject of taxation by this State.
5761	5761	15 (d) The tax imposed under this Article shall be in
5762	5762	16 addition to all other occupation, privilege, or excise taxes
5763	5763	17 imposed by the State of Illinois or by any municipal
5764	5764	18 corporation or political subdivision thereof.
5765	5765	19 (e) The tax imposed under this Article shall not be
5766	5766	20 imposed on any purchase by a purchaser if the cannabis
5767	5767	21 retailer is prohibited by federal or State Constitution,
5768	5768	22 treaty, convention, statute, or court decision from collecting
5769	5769	23 the tax from the purchaser.
5770	5770	24 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
5771	5771	25 (410 ILCS 705/65-38)
5772	5772
5773	5773
5774	5774
5775	5775
5776	5776
5777	5777	SB3940 - 161 - LRB103 40496 RJT 72952 b
5778	5778
5779	5779
5780	5780	SB3940- 162 -LRB103 40496 RJT 72952 b SB3940 - 162 - LRB103 40496 RJT 72952 b
5781	5781	SB3940 - 162 - LRB103 40496 RJT 72952 b
5782	5782	1 Sec. 65-38. Violations and penalties.
5783	5783	2 (a) When the amount due is under $300, any retailer of
5784	5784	3 cannabis who fails to file a return, willfully fails or
5785	5785	4 refuses to make any payment to the Department of the tax
5786	5786	5 imposed by this Article, or files a fraudulent return, or any
5787	5787	6 officer or agent of a corporation engaged in the business of
5788	5788	7 selling cannabis to purchasers located in this State who signs
5789	5789	8 a fraudulent return filed on behalf of the corporation, or any
5790	5790	9 accountant or other agent who knowingly enters false
5791	5791	10 information on the return of any taxpayer under this Article
5792	5792	11 is guilty of a Class 4 felony.
5793	5793	12 (b) When the amount due is $300 or more, any retailer of
5794	5794	13 cannabis who files, or causes to be filed, a fraudulent
5795	5795	14 return, or any officer or agent of a corporation engaged in the
5796	5796	15 business of selling cannabis to purchasers located in this
5797	5797	16 State who files or causes to be filed or signs or causes to be
5798	5798	17 signed a fraudulent return filed on behalf of the corporation,
5799	5799	18 or any accountant or other agent who knowingly enters false
5800	5800	19 information on the return of any taxpayer under this Article
5801	5801	20 is guilty of a Class 3 felony.
5802	5802	21 (c) Any person who violates any provision of Section
5803	5803	22 65-20, fails to keep books and records as required under this
5804	5804	23 Article, or willfully violates a rule of the Department for
5805	5805	24 the administration and enforcement of this Article is guilty
5806	5806	25 of a Class 4 felony. A person commits a separate offense on
5807	5807	26 each day that he or she engages in business in violation of
5808	5808
5809	5809
5810	5810
5811	5811
5812	5812
5813	5813	SB3940 - 162 - LRB103 40496 RJT 72952 b
5814	5814
5815	5815
5816	5816	SB3940- 163 -LRB103 40496 RJT 72952 b SB3940 - 163 - LRB103 40496 RJT 72952 b
5817	5817	SB3940 - 163 - LRB103 40496 RJT 72952 b
5818	5818	1 Section 65-20 or a rule of the Department for the
5819	5819	2 administration and enforcement of this Article. If a person
5820	5820	3 fails to produce the books and records for inspection by the
5821	5821	4 Department upon request, a prima facie presumption shall arise
5822	5822	5 that the person has failed to keep books and records as
5823	5823	6 required under this Article. A person who is unable to rebut
5824	5824	7 this presumption is in violation of this Article and is
5825	5825	8 subject to the penalties provided in this Section.
5826	5826	9 (d) Any person who violates any provision of Sections
5827	5827	10 65-20, fails to keep books and records as required under this
5828	5828	11 Article, or willfully violates a rule of the Department for
5829	5829	12 the administration and enforcement of this Article, is guilty
5830	5830	13 of a business offense and may be fined up to $5,000. If a
5831	5831	14 person fails to produce books and records for inspection by
5832	5832	15 the Department upon request, a prima facie presumption shall
5833	5833	16 arise that the person has failed to keep books and records as
5834	5834	17 required under this Article. A person who is unable to rebut
5835	5835	18 this presumption is in violation of this Article and is
5836	5836	19 subject to the penalties provided in this Section. A person
5837	5837	20 commits a separate offense on each day that he or she engages
5838	5838	21 in business in violation of Section 65-20.
5839	5839	22 (e) Any taxpayer or agent of a taxpayer who with the intent
5840	5840	23 to defraud purports to make a payment due to the Department by
5841	5841	24 issuing or delivering a check or other order upon a real or
5842	5842	25 fictitious depository for the payment of money, knowing that
5843	5843	26 it will not be paid by the depository, is guilty of a deceptive
5844	5844
5845	5845
5846	5846
5847	5847
5848	5848
5849	5849	SB3940 - 163 - LRB103 40496 RJT 72952 b
5850	5850
5851	5851
5852	5852	SB3940- 164 -LRB103 40496 RJT 72952 b SB3940 - 164 - LRB103 40496 RJT 72952 b
5853	5853	SB3940 - 164 - LRB103 40496 RJT 72952 b
5854	5854	1 practice in violation of Section 17-1 of the Criminal Code of
5855	5855	2 2012.
5856	5856	3 (f) Any person who fails to keep books and records or fails
5857	5857	4 to produce books and records for inspection, as required by
5858	5858	5 Section 65-36, is liable to pay to the Department, for deposit
5859	5859	6 in the Tax Compliance and Administration Fund, a penalty of
5860	5860	7 $1,000 for the first failure to keep books and records or
5861	5861	8 failure to produce books and records for inspection, as
5862	5862	9 required by Section 65-36, and $3,000 for each subsequent
5863	5863	10 failure to keep books and records or failure to produce books
5864	5864	11 and records for inspection, as required by Section 65-36.
5865	5865	12 (g) Any person who knowingly acts as a retailer of
5866	5866	13 cannabis in this State without first having obtained a
5867	5867	14 certificate of registration to do so in compliance with
5868	5868	15 Section 65-20 of this Article shall be guilty of a Class 4
5869	5869	16 felony.
5870	5870	17 (h) A person commits the offense of tax evasion under this
5871	5871	18 Article when he or she knowingly attempts in any manner to
5872	5872	19 evade or defeat the tax imposed on him or her or on any other
5873	5873	20 person, or the payment thereof, and he or she commits an
5874	5874	21 affirmative act in furtherance of the evasion. As used in this
5875	5875	22 Section, "affirmative act in furtherance of the evasion" means
5876	5876	23 an act designed in whole or in part to (i) conceal,
5877	5877	24 misrepresent, falsify, or manipulate any material fact or (ii)
5878	5878	25 tamper with or destroy documents or materials related to a
5879	5879	26 person's tax liability under this Article. Two or more acts of
5880	5880
5881	5881
5882	5882
5883	5883
5884	5884
5885	5885	SB3940 - 164 - LRB103 40496 RJT 72952 b
5886	5886
5887	5887
5888	5888	SB3940- 165 -LRB103 40496 RJT 72952 b SB3940 - 165 - LRB103 40496 RJT 72952 b
5889	5889	SB3940 - 165 - LRB103 40496 RJT 72952 b
5890	5890	1 sales tax evasion may be charged as a single count in any
5891	5891	2 indictment, information, or complaint and the amount of tax
5892	5892	3 deficiency may be aggregated for purposes of determining the
5893	5893	4 amount of tax that is attempted to be or is evaded and the
5894	5894	5 period between the first and last acts may be alleged as the
5895	5895	6 date of the offense.
5896	5896	7 (1) When the amount of tax, the assessment or payment
5897	5897	8 of which is attempted to be or is evaded is less than $500,
5898	5898	9 a person is guilty of a Class 4 felony.
5899	5899	10 (2) When the amount of tax, the assessment or payment
5900	5900	11 of which is attempted to be or is evaded is $500 or more
5901	5901	12 but less than $10,000, a person is guilty of a Class 3
5902	5902	13 felony.
5903	5903	14 (3) When the amount of tax, the assessment or payment
5904	5904	15 of which is attempted to be or is evaded is $10,000 or more
5905	5905	16 but less than $100,000, a person is guilty of a Class 2
5906	5906	17 felony.
5907	5907	18 (4) When the amount of tax, the assessment or payment
5908	5908	19 of which is attempted to be or is evaded is $100,000 or
5909	5909	20 more, a person is guilty of a Class 1 felony.
5910	5910	21 Any person who knowingly sells, purchases, installs,
5911	5911	22 transfers, possesses, uses, or accesses any automated sales
5912	5912	23 suppression device, zapper, or phantom-ware in this State is
5913	5913	24 guilty of a Class 3 felony.
5914	5914	25 As used in this Section:
5915	5915	26 "Automated sales suppression device" or "zapper" means a
5916	5916
5917	5917
5918	5918
5919	5919
5920	5920
5921	5921	SB3940 - 165 - LRB103 40496 RJT 72952 b
5922	5922
5923	5923
5924	5924	SB3940- 166 -LRB103 40496 RJT 72952 b SB3940 - 166 - LRB103 40496 RJT 72952 b
5925	5925	SB3940 - 166 - LRB103 40496 RJT 72952 b
5926	5926	1 software program that falsifies the electronic records of an
5927	5927	2 electronic cash register or other point-of-sale system,
5928	5928	3 including, but not limited to, transaction data and
5929	5929	4 transaction reports. The term includes the software program,
5930	5930	5 any device that carries the software program, or an Internet
5931	5931	6 link to the software program.
5932	5932	7 "Phantom-ware" means a hidden programming option embedded
5933	5933	8 in the operating system of an electronic cash register or
5934	5934	9 hardwired into an electronic cash register that can be used to
5935	5935	10 create a second set of records or that can eliminate or
5936	5936	11 manipulate transaction records in an electronic cash register.
5937	5937	12 "Electronic cash register" means a device that keeps a
5938	5938	13 register or supporting documents through the use of an
5939	5939	14 electronic device or computer system designed to record
5940	5940	15 transaction data for the purpose of computing, compiling, or
5941	5941	16 processing retail sales transaction data in any manner.
5942	5942	17 "Transaction data" includes: items purchased by a
5943	5943	18 purchaser; the price of each item; a taxability determination
5944	5944	19 for each item; a segregated tax amount for each taxed item; the
5945	5945	20 amount of cash or credit tendered; the net amount returned to
5946	5946	21 the customer in change; the date and time of the purchase; the
5947	5947	22 name, address, and identification number of the vendor; and
5948	5948	23 the receipt or invoice number of the transaction.
5949	5949	24 "Transaction report" means a report that documents,
5950	5950	25 without limitation, the sales, taxes, or fees collected, media
5951	5951	26 totals, and discount voids at an electronic cash register and
5952	5952
5953	5953
5954	5954
5955	5955
5956	5956
5957	5957	SB3940 - 166 - LRB103 40496 RJT 72952 b
5958	5958
5959	5959
5960	5960	SB3940- 167 -LRB103 40496 RJT 72952 b SB3940 - 167 - LRB103 40496 RJT 72952 b
5961	5961	SB3940 - 167 - LRB103 40496 RJT 72952 b
5962	5962	1 that is printed on a cash register tape at the end of a day or
5963	5963	2 shift, or a report that documents every action at an
5964	5964	3 electronic cash register and is stored electronically.
5965	5965	4 A prosecution for any act in violation of this Section may
5966	5966	5 be commenced at any time within 5 years of the commission of
5967	5967	6 that act.
5968	5968	7 (i) The Department may adopt rules to administer the
5969	5969	8 penalties under this Section.
5970	5970	9 (j) Any person whose principal place of business is in
5971	5971	10 this State and who is charged with a violation under this
5972	5972	11 Section shall be tried in the county where his or her principal
5973	5973	12 place of business is located unless he or she asserts a right
5974	5974	13 to be tried in another venue.
5975	5975	14 (k) Except as otherwise provided in subsection (h), a
5976	5976	15 prosecution for a violation described in this Section may be
5977	5977	16 commenced within 3 years after the commission of the act
5978	5978	17 constituting the violation.
5979	5979	18 (Source: P.A. 101-27, eff. 6-25-19.)
5980	5980	19 (410 ILCS 705/65-42)
5981	5981	20 Sec. 65-42. Seizure and forfeiture. After seizing any
5982	5982	21 cannabis as provided in Section 65-41, the Department must
5983	5983	22 hold a hearing and determine whether (i) the retailer was
5984	5984	23 properly registered to sell the cannabis; (ii) the retailer
5985	5985	24 possessed the cannabis in violation of this Act; (iii) the
5986	5986	25 retailer possessed the cannabis in violation of any reasonable
5987	5987
5988	5988
5989	5989
5990	5990
5991	5991
5992	5992	SB3940 - 167 - LRB103 40496 RJT 72952 b
5993	5993
5994	5994
5995	5995	SB3940- 168 -LRB103 40496 RJT 72952 b SB3940 - 168 - LRB103 40496 RJT 72952 b
5996	5996	SB3940 - 168 - LRB103 40496 RJT 72952 b
5997	5997	1 rule or regulation adopted by the Department for the
5998	5998	2 enforcement of this Act; or (iv) the tax imposed by Article 60
5999	5999	3 had been paid on the cannabis at the time of its seizure by the
6000	6000	4 Department. The Department shall give not less than 20 days'
6001	6001	5 notice of the time and place of the hearing to the owner of the
6002	6002	6 cannabis, if the owner is known, and also to the person in
6003	6003	7 whose possession the cannabis was found, if that person is
6004	6004	8 known and if the person in possession is not the owner of the
6005	6005	9 cannabis. If neither the owner nor the person in possession of
6006	6006	10 the cannabis is known, the Department must cause publication
6007	6007	11 of the time and place of the hearing to be made at least once
6008	6008	12 in each week for 3 weeks successively in a newspaper of general
6009	6009	13 circulation in the county where the hearing is to be held.
6010	6010	14 If, as the result of the hearing, the Department makes any
6011	6011	15 of the findings listed in items (i) through (iv) above
6012	6012	16 determines that the retailer was not properly registered at
6013	6013	17 the time the cannabis was seized, the Department must enter an
6014	6014	18 order declaring the cannabis confiscated and forfeited to the
6015	6015	19 State, to be held by the Department for disposal by it as
6016	6016	20 provided in Section 65-43. The Department must give notice of
6017	6017	21 the order to the owner of the cannabis, if the owner is known,
6018	6018	22 and also to the person in whose possession the cannabis was
6019	6019	23 found, if that person is known and if the person in possession
6020	6020	24 is not the owner of the cannabis. If neither the owner nor the
6021	6021	25 person in possession of the cannabis is known, the Department
6022	6022	26 must cause publication of the order to be made at least once in
6023	6023
6024	6024
6025	6025
6026	6026
6027	6027
6028	6028	SB3940 - 168 - LRB103 40496 RJT 72952 b
6029	6029
6030	6030
6031	6031	SB3940- 169 -LRB103 40496 RJT 72952 b SB3940 - 169 - LRB103 40496 RJT 72952 b
6032	6032	SB3940 - 169 - LRB103 40496 RJT 72952 b
6033	6033	1 each week for 3 weeks successively in a newspaper of general
6034	6034	2 circulation in the county where the hearing was held.
6035	6035	3 (Source: P.A. 101-27, eff. 6-25-19.)
6036	6036	4 (410 ILCS 705/20-50 rep.)
6037	6037	5 (410 ILCS 705/30-50 rep.)
6038	6038	6 Section 45. The Cannabis Regulation and Tax Act is amended
6039	6039	7 by repealing Sections 20-50 and 30-50.
6040	6040	8 Section 50. The Tobacco Accessories and Smoking Herbs
6041	6041	9 Control Act is amended by changing Section 2 as follows:
6042	6042	10 (720 ILCS 685/2) (from Ch. 23, par. 2358-2)
6043	6043	11 Sec. 2. Purpose. The sale and possession of marijuana,
6044	6044	12 hashish, cocaine, opium and their derivatives, is not only
6045	6045	13 prohibited by Illinois Law, but the use of these substances
6046	6046	14 has been deemed injurious to the health of the user.
6047	6047	15 It has further been determined by the Surgeon General of
6048	6048	16 the United States that the use of tobacco is hazardous to human
6049	6049	17 health.
6050	6050	18 The ready availability of smoking herbs to persons under
6051	6051	19 21 years of age could lead to the use of tobacco and illegal
6052	6052	20 drugs.
6053	6053	21 It is in the best interests of the citizens of the State of
6054	6054	22 Illinois to seek to prohibit the spread of illegal drugs,
6055	6055	23 tobacco or smoking materials to persons under 21 years of age.
6056	6056
6057	6057
6058	6058
6059	6059
6060	6060
6061	6061	SB3940 - 169 - LRB103 40496 RJT 72952 b
6062	6062
6063	6063
6064	6064	SB3940- 170 -LRB103 40496 RJT 72952 b SB3940 - 170 - LRB103 40496 RJT 72952 b
6065	6065	SB3940 - 170 - LRB103 40496 RJT 72952 b
6066	6066	1 The prohibition of the sale of tobacco and snuff accessories
6067	6067	2 and smoking herbs to persons under 21 years of age would help
6068	6068	3 to curb the usage of illegal drugs and tobacco products, among
6069	6069	4 our youth.
6070	6070	5 (Source: P.A. 101-2, eff. 7-1-19.)
6071	6071	6 Section 99. Effective date. This Act takes effect upon
6072	6072	7 becoming law.
6073	6073	SB3940- 171 -LRB103 40496 RJT 72952 b 1 INDEX 2 Statutes amended in order of appearance 3 20 ILCS 2105/2105-1174 30 ILCS 500/1-105 30 ILCS 105/5.9166 35 ILCS 120/11from Ch. 120, par. 4507 55 ILCS 5/5-1009from Ch. 34, par. 5-10098 65 ILCS 5/8-11-6afrom Ch. 24, par. 8-11-6a9 410 ILCS 130/14510 410 ILCS 130/21011 410 ILCS 705/1-1012 410 ILCS 705/5-1013 410 ILCS 705/5-1514 410 ILCS 705/7-1015 410 ILCS 705/7-1516 410 ILCS 705/10-1517 410 ILCS 705/15-2518 410 ILCS 705/15-3519 410 ILCS 705/15-35.1020 410 ILCS 705/15-4021 410 ILCS 705/15-5022 410 ILCS 705/15-7023 410 ILCS 705/20-1524 410 ILCS 705/20-3025 410 ILCS 705/20-32 new SB3940- 172 -LRB103 40496 RJT 72952 b SB3940- 171 -LRB103 40496 RJT 72952 b SB3940 - 171 - LRB103 40496 RJT 72952 b 1 INDEX 2 Statutes amended in order of appearance 3 20 ILCS 2105/2105-117 4 30 ILCS 500/1-10 5 30 ILCS 105/5.916 6 35 ILCS 120/11 from Ch. 120, par. 450 7 55 ILCS 5/5-1009 from Ch. 34, par. 5-1009 8 65 ILCS 5/8-11-6a from Ch. 24, par. 8-11-6a 9 410 ILCS 130/145 10 410 ILCS 130/210 11 410 ILCS 705/1-10 12 410 ILCS 705/5-10 13 410 ILCS 705/5-15 14 410 ILCS 705/7-10 15 410 ILCS 705/7-15 16 410 ILCS 705/10-15 17 410 ILCS 705/15-25 18 410 ILCS 705/15-35 19 410 ILCS 705/15-35.10 20 410 ILCS 705/15-40 21 410 ILCS 705/15-50 22 410 ILCS 705/15-70 23 410 ILCS 705/20-15 24 410 ILCS 705/20-30 25 410 ILCS 705/20-32 new SB3940- 172 -LRB103 40496 RJT 72952 b SB3940 - 172 - LRB103 40496 RJT 72952 b
6074	6074	SB3940- 171 -LRB103 40496 RJT 72952 b SB3940 - 171 - LRB103 40496 RJT 72952 b
6075	6075	SB3940 - 171 - LRB103 40496 RJT 72952 b
6076	6076	1 INDEX
6077	6077	2 Statutes amended in order of appearance
6078	6078	3 20 ILCS 2105/2105-117
6079	6079	4 30 ILCS 500/1-10
6080	6080	5 30 ILCS 105/5.916
6081	6081	6 35 ILCS 120/11 from Ch. 120, par. 450
6082	6082	7 55 ILCS 5/5-1009 from Ch. 34, par. 5-1009
6083	6083	8 65 ILCS 5/8-11-6a from Ch. 24, par. 8-11-6a
6084	6084	9 410 ILCS 130/145
6085	6085	10 410 ILCS 130/210
6086	6086	11 410 ILCS 705/1-10
6087	6087	12 410 ILCS 705/5-10
6088	6088	13 410 ILCS 705/5-15
6089	6089	14 410 ILCS 705/7-10
6090	6090	15 410 ILCS 705/7-15
6091	6091	16 410 ILCS 705/10-15
6092	6092	17 410 ILCS 705/15-25
6093	6093	18 410 ILCS 705/15-35
6094	6094	19 410 ILCS 705/15-35.10
6095	6095	20 410 ILCS 705/15-40
6096	6096	21 410 ILCS 705/15-50
6097	6097	22 410 ILCS 705/15-70
6098	6098	23 410 ILCS 705/20-15
6099	6099	24 410 ILCS 705/20-30
6100	6100	25 410 ILCS 705/20-32 new
6101	6101	SB3940- 172 -LRB103 40496 RJT 72952 b SB3940 - 172 - LRB103 40496 RJT 72952 b
6102	6102	SB3940 - 172 - LRB103 40496 RJT 72952 b
6103	6103
6104	6104
6105	6105
6106	6106
6107	6107
6108	6108	SB3940 - 170 - LRB103 40496 RJT 72952 b
6109	6109
6110	6110
6111	6111
6112	6112	SB3940- 171 -LRB103 40496 RJT 72952 b SB3940 - 171 - LRB103 40496 RJT 72952 b
6113	6113	SB3940 - 171 - LRB103 40496 RJT 72952 b
6114	6114	1 INDEX
6115	6115	2 Statutes amended in order of appearance
6116	6116	3 20 ILCS 2105/2105-117
6117	6117	4 30 ILCS 500/1-10
6118	6118	5 30 ILCS 105/5.916
6119	6119	6 35 ILCS 120/11 from Ch. 120, par. 450
6120	6120	7 55 ILCS 5/5-1009 from Ch. 34, par. 5-1009
6121	6121	8 65 ILCS 5/8-11-6a from Ch. 24, par. 8-11-6a
6122	6122	9 410 ILCS 130/145
6123	6123	10 410 ILCS 130/210
6124	6124	11 410 ILCS 705/1-10
6125	6125	12 410 ILCS 705/5-10
6126	6126	13 410 ILCS 705/5-15
6127	6127	14 410 ILCS 705/7-10
6128	6128	15 410 ILCS 705/7-15
6129	6129	16 410 ILCS 705/10-15
6130	6130	17 410 ILCS 705/15-25
6131	6131	18 410 ILCS 705/15-35
6132	6132	19 410 ILCS 705/15-35.10
6133	6133	20 410 ILCS 705/15-40
6134	6134	21 410 ILCS 705/15-50
6135	6135	22 410 ILCS 705/15-70
6136	6136	23 410 ILCS 705/20-15
6137	6137	24 410 ILCS 705/20-30
6138	6138	25 410 ILCS 705/20-32 new
6139	6139
6140	6140
6141	6141
6142	6142
6143	6143
6144	6144	SB3940 - 171 - LRB103 40496 RJT 72952 b
6145	6145
6146	6146
6147	6147	SB3940- 172 -LRB103 40496 RJT 72952 b SB3940 - 172 - LRB103 40496 RJT 72952 b
6148	6148	SB3940 - 172 - LRB103 40496 RJT 72952 b
6149	6149
6150	6150
6151	6151
6152	6152
6153	6153
6154	6154	SB3940 - 172 - LRB103 40496 RJT 72952 b