Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3941 Latest Draft

Bill / Introduced Version Filed 05/01/2024

                            103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3941 Introduced 5/1/2024, by Sen. Laura Fine 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 Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on January 1, 2025, "prescription and nonprescription medicines and drugs" includes cannabis purchased by a qualified patient, designated caregiver, or provisional patient from a registered dispensing organization for purposes of provisions in those Acts that establish a 1% rate of taxation for prescription and nonprescription medicines and drugs. Amends the Compassionate Use of Medical Cannabis Program Act. Provides that a designated caregiver registered under the Act may perform the designated caregiver's duties at any licensed dispensary or dispensing organization licensed by the Department of Financial and Professional Regulation under the Cannabis Regulation and Tax Act. Makes changes concerning agents under the Act. Provides that a qualifying patient registered under the Act may purchase medical cannabis at any licensed dispensary or dispensing organization licensed by the Department of Financial and Professional Regulation under the Cannabis Regulation and Tax Act. Provides that the physical examination required under the Act may be performed by remote means. Makes changes in provisions concerning definitions; enforcement of the Act; destruction of medical cannabis; and the medical cannabis cultivation privilege tax. Repeals provisions concerning medical cannabis dispensing organization certification renewal and excluded offenses. Amends the Cannabis Regulation and Tax Act. Authorizes a dispensing organization to offer drive-through and pickup options for cannabis and cannabis-infused products and makes related changes. Requires a dispensing organization to implement other security measures. Makes changes in provisions concerning medical cannabis containers. Makes other changes. Effective immediately. LRB103 40497 RJT 72953 b   A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3941 Introduced 5/1/2024, by Sen. Laura Fine 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 Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on January 1, 2025, "prescription and nonprescription medicines and drugs" includes cannabis purchased by a qualified patient, designated caregiver, or provisional patient from a registered dispensing organization for purposes of provisions in those Acts that establish a 1% rate of taxation for prescription and nonprescription medicines and drugs. Amends the Compassionate Use of Medical Cannabis Program Act. Provides that a designated caregiver registered under the Act may perform the designated caregiver's duties at any licensed dispensary or dispensing organization licensed by the Department of Financial and Professional Regulation under the Cannabis Regulation and Tax Act. Makes changes concerning agents under the Act. Provides that a qualifying patient registered under the Act may purchase medical cannabis at any licensed dispensary or dispensing organization licensed by the Department of Financial and Professional Regulation under the Cannabis Regulation and Tax Act. Provides that the physical examination required under the Act may be performed by remote means. Makes changes in provisions concerning definitions; enforcement of the Act; destruction of medical cannabis; and the medical cannabis cultivation privilege tax. Repeals provisions concerning medical cannabis dispensing organization certification renewal and excluded offenses. Amends the Cannabis Regulation and Tax Act. Authorizes a dispensing organization to offer drive-through and pickup options for cannabis and cannabis-infused products and makes related changes. Requires a dispensing organization to implement other security measures. Makes changes in provisions concerning medical cannabis containers. Makes other changes. Effective immediately.  LRB103 40497 RJT 72953 b     LRB103 40497 RJT 72953 b   A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3941 Introduced 5/1/2024, by Sen. Laura Fine SYNOPSIS AS INTRODUCED:
See Index 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 Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on January 1, 2025, "prescription and nonprescription medicines and drugs" includes cannabis purchased by a qualified patient, designated caregiver, or provisional patient from a registered dispensing organization for purposes of provisions in those Acts that establish a 1% rate of taxation for prescription and nonprescription medicines and drugs. Amends the Compassionate Use of Medical Cannabis Program Act. Provides that a designated caregiver registered under the Act may perform the designated caregiver's duties at any licensed dispensary or dispensing organization licensed by the Department of Financial and Professional Regulation under the Cannabis Regulation and Tax Act. Makes changes concerning agents under the Act. Provides that a qualifying patient registered under the Act may purchase medical cannabis at any licensed dispensary or dispensing organization licensed by the Department of Financial and Professional Regulation under the Cannabis Regulation and Tax Act. Provides that the physical examination required under the Act may be performed by remote means. Makes changes in provisions concerning definitions; enforcement of the Act; destruction of medical cannabis; and the medical cannabis cultivation privilege tax. Repeals provisions concerning medical cannabis dispensing organization certification renewal and excluded offenses. Amends the Cannabis Regulation and Tax Act. Authorizes a dispensing organization to offer drive-through and pickup options for cannabis and cannabis-infused products and makes related changes. Requires a dispensing organization to implement other security measures. Makes changes in provisions concerning medical cannabis containers. Makes other changes. Effective immediately.
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A BILL FOR
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1  AN ACT concerning health.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 3. The Department of Professional Regulation Law
5  of the Civil Administrative Code of Illinois is amended by
6  changing Section 2105-117 as follows:
7  (20 ILCS 2105/2105-117)
8  Sec. 2105-117. Confidentiality. All information collected
9  by the Department in the course of an examination or
10  investigation of a licensee, registrant, or applicant,
11  including, but not limited to, any complaint against a
12  licensee or registrant filed with the Department and
13  information collected to investigate any such complaint, shall
14  be maintained for the confidential use of the Department and
15  shall not be disclosed. The Department may not disclose the
16  information to anyone other than law enforcement officials,
17  other regulatory agencies that have an appropriate regulatory
18  interest as determined by the Director, the Office of
19  Executive Inspector General, or a party presenting a lawful
20  subpoena to the Department. Information and documents
21  disclosed to a federal, State, county, or local law
22  enforcement agency, including the Executive Inspector General
23  shall not be disclosed by the agency for any purpose to any

 

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3941 Introduced 5/1/2024, by Sen. Laura Fine SYNOPSIS AS INTRODUCED:
See Index 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 Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on January 1, 2025, "prescription and nonprescription medicines and drugs" includes cannabis purchased by a qualified patient, designated caregiver, or provisional patient from a registered dispensing organization for purposes of provisions in those Acts that establish a 1% rate of taxation for prescription and nonprescription medicines and drugs. Amends the Compassionate Use of Medical Cannabis Program Act. Provides that a designated caregiver registered under the Act may perform the designated caregiver's duties at any licensed dispensary or dispensing organization licensed by the Department of Financial and Professional Regulation under the Cannabis Regulation and Tax Act. Makes changes concerning agents under the Act. Provides that a qualifying patient registered under the Act may purchase medical cannabis at any licensed dispensary or dispensing organization licensed by the Department of Financial and Professional Regulation under the Cannabis Regulation and Tax Act. Provides that the physical examination required under the Act may be performed by remote means. Makes changes in provisions concerning definitions; enforcement of the Act; destruction of medical cannabis; and the medical cannabis cultivation privilege tax. Repeals provisions concerning medical cannabis dispensing organization certification renewal and excluded offenses. Amends the Cannabis Regulation and Tax Act. Authorizes a dispensing organization to offer drive-through and pickup options for cannabis and cannabis-infused products and makes related changes. Requires a dispensing organization to implement other security measures. Makes changes in provisions concerning medical cannabis containers. Makes other changes. Effective immediately.
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A BILL FOR

 

 

See Index



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1  other agency or person, except as necessary to those involved
2  in enforcing the State Officials and Employees Ethics Act. A
3  formal complaint filed against a licensee or registrant by the
4  Department or any order issued by the Department against a
5  licensee, registrant, or applicant shall be a public record,
6  except as otherwise prohibited by law.
7  (Source: P.A. 99-227, eff. 8-3-15.)
8  Section 5. The Use Tax Act is amended by changing Section
9  3-10 as follows:
10  (35 ILCS 105/3-10)
11  Sec. 3-10. Rate of tax. Unless otherwise provided in this
12  Section, the tax imposed by this Act is at the rate of 6.25% of
13  either the selling price or the fair market value, if any, of
14  the tangible personal property. In all cases where property
15  functionally used or consumed is the same as the property that
16  was purchased at retail, then the tax is imposed on the selling
17  price of the property. In all cases where property
18  functionally used or consumed is a by-product or waste product
19  that has been refined, manufactured, or produced from property
20  purchased at retail, then the tax is imposed on the lower of
21  the fair market value, if any, of the specific property so used
22  in this State or on the selling price of the property purchased
23  at retail. For purposes of this Section "fair market value"
24  means the price at which property would change hands between a

 

 

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1  willing buyer and a willing seller, neither being under any
2  compulsion to buy or sell and both having reasonable knowledge
3  of the relevant facts. The fair market value shall be
4  established by Illinois sales by the taxpayer of the same
5  property as that functionally used or consumed, or if there
6  are no such sales by the taxpayer, then comparable sales or
7  purchases of property of like kind and character in Illinois.
8  Beginning on July 1, 2000 and through December 31, 2000,
9  with respect to motor fuel, as defined in Section 1.1 of the
10  Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
11  the Use Tax Act, the tax is imposed at the rate of 1.25%.
12  Beginning on August 6, 2010 through August 15, 2010, and
13  beginning again on August 5, 2022 through August 14, 2022,
14  with respect to sales tax holiday items as defined in Section
15  3-6 of this Act, the tax is imposed at the rate of 1.25%.
16  With respect to gasohol, the tax imposed by this Act
17  applies to (i) 70% of the proceeds of sales made on or after
18  January 1, 1990, and before July 1, 2003, (ii) 80% of the
19  proceeds of sales made on or after July 1, 2003 and on or
20  before July 1, 2017, (iii) 100% of the proceeds of sales made
21  after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
22  the proceeds of sales made on or after January 1, 2024 and on
23  or before December 31, 2028, and (v) 100% of the proceeds of
24  sales made after December 31, 2028. If, at any time, however,
25  the tax under this Act on sales of gasohol is imposed at the
26  rate of 1.25%, then the tax imposed by this Act applies to 100%

 

 

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1  of the proceeds of sales of gasohol made during that time.
2  With respect to mid-range ethanol blends, the tax imposed
3  by this Act applies to (i) 80% of the proceeds of sales made on
4  or after January 1, 2024 and on or before December 31, 2028 and
5  (ii) 100% of the proceeds of sales made thereafter. If, at any
6  time, however, the tax under this Act on sales of mid-range
7  ethanol blends is imposed at the rate of 1.25%, then the tax
8  imposed by this Act applies to 100% of the proceeds of sales of
9  mid-range ethanol blends made during that time.
10  With respect to majority blended ethanol fuel, the tax
11  imposed by this Act does not apply to the proceeds of sales
12  made on or after July 1, 2003 and on or before December 31,
13  2028 but applies to 100% of the proceeds of sales made
14  thereafter.
15  With respect to biodiesel blends with no less than 1% and
16  no more than 10% biodiesel, the tax imposed by this Act applies
17  to (i) 80% of the proceeds of sales made on or after July 1,
18  2003 and on or before December 31, 2018 and (ii) 100% of the
19  proceeds of sales made after December 31, 2018 and before
20  January 1, 2024. On and after January 1, 2024 and on or before
21  December 31, 2030, the taxation of biodiesel, renewable
22  diesel, and biodiesel blends shall be as provided in Section
23  3-5.1. If, at any time, however, the tax under this Act on
24  sales of biodiesel blends with no less than 1% and no more than
25  10% biodiesel is imposed at the rate of 1.25%, then the tax
26  imposed by this Act applies to 100% of the proceeds of sales of

 

 

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1  biodiesel blends with no less than 1% and no more than 10%
2  biodiesel made during that time.
3  With respect to biodiesel and biodiesel blends with more
4  than 10% but no more than 99% biodiesel, the tax imposed by
5  this Act does not apply to the proceeds of sales made on or
6  after July 1, 2003 and on or before December 31, 2023. On and
7  after January 1, 2024 and on or before December 31, 2030, the
8  taxation of biodiesel, renewable diesel, and biodiesel blends
9  shall be as provided in Section 3-5.1.
10  Until July 1, 2022 and beginning again on July 1, 2023,
11  with respect to food for human consumption that is to be
12  consumed off the premises where it is sold (other than
13  alcoholic beverages, food consisting of or infused with adult
14  use cannabis, soft drinks, and food that has been prepared for
15  immediate consumption), the tax is imposed at the rate of 1%.
16  Beginning on July 1, 2022 and until July 1, 2023, with respect
17  to food for human consumption that is to be consumed off the
18  premises where it is sold (other than alcoholic beverages,
19  food consisting of or infused with adult use cannabis, soft
20  drinks, and food that has been prepared for immediate
21  consumption), the tax is imposed at the rate of 0%.
22  With respect to prescription and nonprescription
23  medicines, drugs, medical appliances, products classified as
24  Class III medical devices by the United States Food and Drug
25  Administration that are used for cancer treatment pursuant to
26  a prescription, as well as any accessories and components

 

 

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1  related to those devices, modifications to a motor vehicle for
2  the purpose of rendering it usable by a person with a
3  disability, and insulin, blood sugar testing materials,
4  syringes, and needles used by human diabetics, the tax is
5  imposed at the rate of 1%. For the purposes of this Section,
6  until September 1, 2009: the term "soft drinks" means any
7  complete, finished, ready-to-use, non-alcoholic drink, whether
8  carbonated or not, including, but not limited to, soda water,
9  cola, fruit juice, vegetable juice, carbonated water, and all
10  other preparations commonly known as soft drinks of whatever
11  kind or description that are contained in any closed or sealed
12  bottle, can, carton, or container, regardless of size; but
13  "soft drinks" does not include coffee, tea, non-carbonated
14  water, infant formula, milk or milk products as defined in the
15  Grade A Pasteurized Milk and Milk Products Act, or drinks
16  containing 50% or more natural fruit or vegetable juice.
17  Notwithstanding any other provisions of this Act,
18  beginning September 1, 2009, "soft drinks" means non-alcoholic
19  beverages that contain natural or artificial sweeteners. "Soft
20  drinks" does not include beverages that contain milk or milk
21  products, soy, rice or similar milk substitutes, or greater
22  than 50% of vegetable or fruit juice by volume.
23  Until August 1, 2009, and notwithstanding any other
24  provisions of this Act, "food for human consumption that is to
25  be consumed off the premises where it is sold" includes all
26  food sold through a vending machine, except soft drinks and

 

 

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1  food products that are dispensed hot from a vending machine,
2  regardless of the location of the vending machine. Beginning
3  August 1, 2009, and notwithstanding any other provisions of
4  this Act, "food for human consumption that is to be consumed
5  off the premises where it is sold" includes all food sold
6  through a vending machine, except soft drinks, candy, and food
7  products that are dispensed hot from a vending machine,
8  regardless of the location of the vending machine.
9  Notwithstanding any other provisions of this Act,
10  beginning September 1, 2009, "food for human consumption that
11  is to be consumed off the premises where it is sold" does not
12  include candy. For purposes of this Section, "candy" means a
13  preparation of sugar, honey, or other natural or artificial
14  sweeteners in combination with chocolate, fruits, nuts or
15  other ingredients or flavorings in the form of bars, drops, or
16  pieces. "Candy" does not include any preparation that contains
17  flour or requires refrigeration.
18  Notwithstanding any other provisions of this Act,
19  beginning September 1, 2009, "nonprescription medicines and
20  drugs" does not include grooming and hygiene products. For
21  purposes of this Section, "grooming and hygiene products"
22  includes, but is not limited to, soaps and cleaning solutions,
23  shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
24  lotions and screens, unless those products are available by
25  prescription only, regardless of whether the products meet the
26  definition of "over-the-counter-drugs". For the purposes of

 

 

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1  this paragraph, "over-the-counter-drug" means a drug for human
2  use that contains a label that identifies the product as a drug
3  as required by 21 CFR 201.66. The "over-the-counter-drug"
4  label includes:
5  (A) a "Drug Facts" panel; or
6  (B) a statement of the "active ingredient(s)" with a
7  list of those ingredients contained in the compound,
8  substance or preparation.
9  Beginning on January 1, 2014 (the effective date of Public
10  Act 98-122) and until January 1, 2025, "prescription and
11  nonprescription medicines and drugs" includes medical cannabis
12  purchased from a registered dispensing organization under the
13  Compassionate Use of Medical Cannabis Program Act.
14  Beginning on January 1, 2025, "prescription and
15  nonprescription medicines and drugs" includes cannabis
16  purchased by a qualified patient, designated caregiver, or
17  provisional patient, as defined in the Compassionate Use of
18  Medical Cannabis Program Act, from a registered dispensing
19  organization.
20  As used in this Section, "adult use cannabis" means
21  cannabis subject to tax under the Cannabis Cultivation
22  Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
23  and does not include cannabis purchased by a qualified
24  patient, designated caregiver, or provisional patient, as
25  defined in the Compassionate Use of Medical Cannabis Program
26  Act subject to tax under the Compassionate Use of Medical

 

 

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1  Cannabis Program Act.
2  If the property that is purchased at retail from a
3  retailer is acquired outside Illinois and used outside
4  Illinois before being brought to Illinois for use here and is
5  taxable under this Act, the "selling price" on which the tax is
6  computed shall be reduced by an amount that represents a
7  reasonable allowance for depreciation for the period of prior
8  out-of-state use.
9  (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
10  Section 20-5, eff. 4-19-22; 102-700, Article 60, Section
11  60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff.
12  4-19-22; 103-9, eff. 6-7-23; 103-154 eff. 6-30-23.)
13  Section 10. The Service Use Tax Act is amended by changing
14  Section 3-10 as follows:
15  (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
16  Sec. 3-10. Rate of tax. Unless otherwise provided in this
17  Section, the tax imposed by this Act is at the rate of 6.25% of
18  the selling price of tangible personal property transferred as
19  an incident to the sale of service, but, for the purpose of
20  computing this tax, in no event shall the selling price be less
21  than the cost price of the property to the serviceman.
22  Beginning on July 1, 2000 and through December 31, 2000,
23  with respect to motor fuel, as defined in Section 1.1 of the
24  Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

 

 

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1  the Use Tax Act, the tax is imposed at the rate of 1.25%.
2  With respect to gasohol, as defined in the Use Tax Act, the
3  tax imposed by this Act applies to (i) 70% of the selling price
4  of property transferred as an incident to the sale of service
5  on or after January 1, 1990, and before July 1, 2003, (ii) 80%
6  of the selling price of property transferred as an incident to
7  the sale of service on or after July 1, 2003 and on or before
8  July 1, 2017, (iii) 100% of the selling price of property
9  transferred as an incident to the sale of service after July 1,
10  2017 and before January 1, 2024, (iv) 90% of the selling price
11  of property transferred as an incident to the sale of service
12  on or after January 1, 2024 and on or before December 31, 2028,
13  and (v) 100% of the selling price of property transferred as an
14  incident to the sale of service after December 31, 2028. If, at
15  any time, however, the tax under this Act on sales of gasohol,
16  as defined in the Use Tax Act, is imposed at the rate of 1.25%,
17  then the tax imposed by this Act applies to 100% of the
18  proceeds of sales of gasohol made during that time.
19  With respect to mid-range ethanol blends, as defined in
20  Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
21  applies to (i) 80% of the selling price of property
22  transferred as an incident to the sale of service on or after
23  January 1, 2024 and on or before December 31, 2028 and (ii)
24  100% of the selling price of property transferred as an
25  incident to the sale of service after December 31, 2028. If, at
26  any time, however, the tax under this Act on sales of mid-range

 

 

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1  ethanol blends is imposed at the rate of 1.25%, then the tax
2  imposed by this Act applies to 100% of the selling price of
3  mid-range ethanol blends transferred as an incident to the
4  sale of service during that time.
5  With respect to majority blended ethanol fuel, as defined
6  in the Use Tax Act, the tax imposed by this Act does not apply
7  to the selling price of property transferred as an incident to
8  the sale of service on or after July 1, 2003 and on or before
9  December 31, 2028 but applies to 100% of the selling price
10  thereafter.
11  With respect to biodiesel blends, as defined in the Use
12  Tax Act, with no less than 1% and no more than 10% biodiesel,
13  the tax imposed by this Act applies to (i) 80% of the selling
14  price of property transferred as an incident to the sale of
15  service on or after July 1, 2003 and on or before December 31,
16  2018 and (ii) 100% of the proceeds of the selling price after
17  December 31, 2018 and before January 1, 2024. On and after
18  January 1, 2024 and on or before December 31, 2030, the
19  taxation of biodiesel, renewable diesel, and biodiesel blends
20  shall be as provided in Section 3-5.1 of the Use Tax Act. If,
21  at any time, however, the tax under this Act on sales of
22  biodiesel blends, as defined in the Use Tax Act, with no less
23  than 1% and no more than 10% biodiesel is imposed at the rate
24  of 1.25%, then the tax imposed by this Act applies to 100% of
25  the proceeds of sales of biodiesel blends with no less than 1%
26  and no more than 10% biodiesel made during that time.

 

 

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1  With respect to biodiesel, as defined in the Use Tax Act,
2  and biodiesel blends, as defined in the Use Tax Act, with more
3  than 10% but no more than 99% biodiesel, the tax imposed by
4  this Act does not apply to the proceeds of the selling price of
5  property transferred as an incident to the sale of service on
6  or after July 1, 2003 and on or before December 31, 2023. On
7  and after January 1, 2024 and on or before December 31, 2030,
8  the taxation of biodiesel, renewable diesel, and biodiesel
9  blends shall be as provided in Section 3-5.1 of the Use Tax
10  Act.
11  At the election of any registered serviceman made for each
12  fiscal year, sales of service in which the aggregate annual
13  cost price of tangible personal property transferred as an
14  incident to the sales of service is less than 35%, or 75% in
15  the case of servicemen transferring prescription drugs or
16  servicemen engaged in graphic arts production, of the
17  aggregate annual total gross receipts from all sales of
18  service, the tax imposed by this Act shall be based on the
19  serviceman's cost price of the tangible personal property
20  transferred as an incident to the sale of those services.
21  Until July 1, 2022 and beginning again on July 1, 2023, the
22  tax shall be imposed at the rate of 1% on food prepared for
23  immediate consumption and transferred incident to a sale of
24  service subject to this Act or the Service Occupation Tax Act
25  by an entity licensed under the Hospital Licensing Act, the
26  Nursing Home Care Act, the Assisted Living and Shared Housing

 

 

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1  Act, the ID/DD Community Care Act, the MC/DD Act, the
2  Specialized Mental Health Rehabilitation Act of 2013, or the
3  Child Care Act of 1969, or an entity that holds a permit issued
4  pursuant to the Life Care Facilities Act. Until July 1, 2022
5  and beginning again on July 1, 2023, the tax shall also be
6  imposed at the rate of 1% on food for human consumption that is
7  to be consumed off the premises where it is sold (other than
8  alcoholic beverages, food consisting of or infused with adult
9  use cannabis, soft drinks, and food that has been prepared for
10  immediate consumption and is not otherwise included in this
11  paragraph).
12  Beginning on July 1, 2022 and until July 1, 2023, the tax
13  shall be imposed at the rate of 0% on food prepared for
14  immediate consumption and transferred incident to a sale of
15  service subject to this Act or the Service Occupation Tax Act
16  by an entity licensed under the Hospital Licensing Act, the
17  Nursing Home Care Act, the Assisted Living and Shared Housing
18  Act, the ID/DD Community Care Act, the MC/DD Act, the
19  Specialized Mental Health Rehabilitation Act of 2013, or the
20  Child Care Act of 1969, or an entity that holds a permit issued
21  pursuant to the Life Care Facilities Act. Beginning on July 1,
22  2022 and until July 1, 2023, the tax shall also be imposed at
23  the rate of 0% on food for human consumption that is to be
24  consumed off the premises where it is sold (other than
25  alcoholic beverages, food consisting of or infused with adult
26  use cannabis, soft drinks, and food that has been prepared for

 

 

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1  immediate consumption and is not otherwise included in this
2  paragraph).
3  The tax shall also be imposed at the rate of 1% on
4  prescription and nonprescription medicines, drugs, medical
5  appliances, products classified as Class III medical devices
6  by the United States Food and Drug Administration that are
7  used for cancer treatment pursuant to a prescription, as well
8  as any accessories and components related to those devices,
9  modifications to a motor vehicle for the purpose of rendering
10  it usable by a person with a disability, and insulin, blood
11  sugar testing materials, syringes, and needles used by human
12  diabetics. For the purposes of this Section, until September
13  1, 2009: the term "soft drinks" means any complete, finished,
14  ready-to-use, non-alcoholic drink, whether carbonated or not,
15  including, but not limited to, soda water, cola, fruit juice,
16  vegetable juice, carbonated water, and all other preparations
17  commonly known as soft drinks of whatever kind or description
18  that are contained in any closed or sealed bottle, can,
19  carton, or container, regardless of size; but "soft drinks"
20  does not include coffee, tea, non-carbonated water, infant
21  formula, milk or milk products as defined in the Grade A
22  Pasteurized Milk and Milk Products Act, or drinks containing
23  50% or more natural fruit or vegetable juice.
24  Notwithstanding any other provisions of this Act,
25  beginning September 1, 2009, "soft drinks" means non-alcoholic
26  beverages that contain natural or artificial sweeteners. "Soft

 

 

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1  drinks" does not include beverages that contain milk or milk
2  products, soy, rice or similar milk substitutes, or greater
3  than 50% of vegetable or fruit juice by volume.
4  Until August 1, 2009, and notwithstanding any other
5  provisions of this Act, "food for human consumption that is to
6  be consumed off the premises where it is sold" includes all
7  food sold through a vending machine, except soft drinks and
8  food products that are dispensed hot from a vending machine,
9  regardless of the location of the vending machine. Beginning
10  August 1, 2009, and notwithstanding any other provisions of
11  this Act, "food for human consumption that is to be consumed
12  off the premises where it is sold" includes all food sold
13  through a vending machine, except soft drinks, candy, and food
14  products that are dispensed hot from a vending machine,
15  regardless of the location of the vending machine.
16  Notwithstanding any other provisions of this Act,
17  beginning September 1, 2009, "food for human consumption that
18  is to be consumed off the premises where it is sold" does not
19  include candy. For purposes of this Section, "candy" means a
20  preparation of sugar, honey, or other natural or artificial
21  sweeteners in combination with chocolate, fruits, nuts or
22  other ingredients or flavorings in the form of bars, drops, or
23  pieces. "Candy" does not include any preparation that contains
24  flour or requires refrigeration.
25  Notwithstanding any other provisions of this Act,
26  beginning September 1, 2009, "nonprescription medicines and

 

 

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1  drugs" does not include grooming and hygiene products. For
2  purposes of this Section, "grooming and hygiene products"
3  includes, but is not limited to, soaps and cleaning solutions,
4  shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
5  lotions and screens, unless those products are available by
6  prescription only, regardless of whether the products meet the
7  definition of "over-the-counter-drugs". For the purposes of
8  this paragraph, "over-the-counter-drug" means a drug for human
9  use that contains a label that identifies the product as a drug
10  as required by 21 CFR 201.66. The "over-the-counter-drug"
11  label includes:
12  (A) a "Drug Facts" panel; or
13  (B) a statement of the "active ingredient(s)" with a
14  list of those ingredients contained in the compound,
15  substance or preparation.
16  Beginning on January 1, 2014 (the effective date of Public
17  Act 98-122) and until January 1, 2025, "prescription and
18  nonprescription medicines and drugs" includes medical cannabis
19  purchased from a registered dispensing organization under the
20  Compassionate Use of Medical Cannabis Program Act.
21  Beginning on January 1, 2025, "prescription and
22  nonprescription medicines and drugs" includes cannabis
23  purchased by a qualified patient, designated caregiver, or
24  provisional patient, as defined in the Compassionate Use of
25  Medical Cannabis Program Act, from a registered dispensing
26  organization.

 

 

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1  As used in this Section, "adult use cannabis" means
2  cannabis subject to tax under the Cannabis Cultivation
3  Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
4  and does not include cannabis purchased by a qualified
5  patient, designated caregiver, or provisional patient, as
6  defined in the Compassionate Use of Medical Cannabis Program
7  Act subject to tax under the Compassionate Use of Medical
8  Cannabis Program Act.
9  If the property that is acquired from a serviceman is
10  acquired outside Illinois and used outside Illinois before
11  being brought to Illinois for use here and is taxable under
12  this Act, the "selling price" on which the tax is computed
13  shall be reduced by an amount that represents a reasonable
14  allowance for depreciation for the period of prior
15  out-of-state use.
16  (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
17  102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700,
18  Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23;
19  103-154, eff. 6-30-23.)
20  Section 15. The Service Occupation Tax Act is amended by
21  changing Section 3-10 as follows:
22  (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
23  Sec. 3-10. Rate of tax. Unless otherwise provided in this
24  Section, the tax imposed by this Act is at the rate of 6.25% of

 

 

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1  the "selling price", as defined in Section 2 of the Service Use
2  Tax Act, of the tangible personal property. For the purpose of
3  computing this tax, in no event shall the "selling price" be
4  less than the cost price to the serviceman of the tangible
5  personal property transferred. The selling price of each item
6  of tangible personal property transferred as an incident of a
7  sale of service may be shown as a distinct and separate item on
8  the serviceman's billing to the service customer. If the
9  selling price is not so shown, the selling price of the
10  tangible personal property is deemed to be 50% of the
11  serviceman's entire billing to the service customer. When,
12  however, a serviceman contracts to design, develop, and
13  produce special order machinery or equipment, the tax imposed
14  by this Act shall be based on the serviceman's cost price of
15  the tangible personal property transferred incident to the
16  completion of the contract.
17  Beginning on July 1, 2000 and through December 31, 2000,
18  with respect to motor fuel, as defined in Section 1.1 of the
19  Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
20  the Use Tax Act, the tax is imposed at the rate of 1.25%.
21  With respect to gasohol, as defined in the Use Tax Act, the
22  tax imposed by this Act shall apply to (i) 70% of the cost
23  price of property transferred as an incident to the sale of
24  service on or after January 1, 1990, and before July 1, 2003,
25  (ii) 80% of the selling price of property transferred as an
26  incident to the sale of service on or after July 1, 2003 and on

 

 

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1  or before July 1, 2017, (iii) 100% of the selling price of
2  property transferred as an incident to the sale of service
3  after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
4  the selling price of property transferred as an incident to
5  the sale of service on or after January 1, 2024 and on or
6  before December 31, 2028, and (v) 100% of the selling price of
7  property transferred as an incident to the sale of service
8  after December 31, 2028. If, at any time, however, the tax
9  under this Act on sales of gasohol, as defined in the Use Tax
10  Act, is imposed at the rate of 1.25%, then the tax imposed by
11  this Act applies to 100% of the proceeds of sales of gasohol
12  made during that time.
13  With respect to mid-range ethanol blends, as defined in
14  Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
15  applies to (i) 80% of the selling price of property
16  transferred as an incident to the sale of service on or after
17  January 1, 2024 and on or before December 31, 2028 and (ii)
18  100% of the selling price of property transferred as an
19  incident to the sale of service after December 31, 2028. If, at
20  any time, however, the tax under this Act on sales of mid-range
21  ethanol blends is imposed at the rate of 1.25%, then the tax
22  imposed by this Act applies to 100% of the selling price of
23  mid-range ethanol blends transferred as an incident to the
24  sale of service during that time.
25  With respect to majority blended ethanol fuel, as defined
26  in the Use Tax Act, the tax imposed by this Act does not apply

 

 

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1  to the selling price of property transferred as an incident to
2  the sale of service on or after July 1, 2003 and on or before
3  December 31, 2028 but applies to 100% of the selling price
4  thereafter.
5  With respect to biodiesel blends, as defined in the Use
6  Tax Act, with no less than 1% and no more than 10% biodiesel,
7  the tax imposed by this Act applies to (i) 80% of the selling
8  price of property transferred as an incident to the sale of
9  service on or after July 1, 2003 and on or before December 31,
10  2018 and (ii) 100% of the proceeds of the selling price after
11  December 31, 2018 and before January 1, 2024. On and after
12  January 1, 2024 and on or before December 31, 2030, the
13  taxation of biodiesel, renewable diesel, and biodiesel blends
14  shall be as provided in Section 3-5.1 of the Use Tax Act. If,
15  at any time, however, the tax under this Act on sales of
16  biodiesel blends, as defined in the Use Tax Act, with no less
17  than 1% and no more than 10% biodiesel is imposed at the rate
18  of 1.25%, then the tax imposed by this Act applies to 100% of
19  the proceeds of sales of biodiesel blends with no less than 1%
20  and no more than 10% biodiesel made during that time.
21  With respect to biodiesel, as defined in the Use Tax Act,
22  and biodiesel blends, as defined in the Use Tax Act, with more
23  than 10% but no more than 99% biodiesel material, the tax
24  imposed by this Act does not apply to the proceeds of the
25  selling price of property transferred as an incident to the
26  sale of service on or after July 1, 2003 and on or before

 

 

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1  December 31, 2023. On and after January 1, 2024 and on or
2  before December 31, 2030, the taxation of biodiesel, renewable
3  diesel, and biodiesel blends shall be as provided in Section
4  3-5.1 of the Use Tax Act.
5  At the election of any registered serviceman made for each
6  fiscal year, sales of service in which the aggregate annual
7  cost price of tangible personal property transferred as an
8  incident to the sales of service is less than 35%, or 75% in
9  the case of servicemen transferring prescription drugs or
10  servicemen engaged in graphic arts production, of the
11  aggregate annual total gross receipts from all sales of
12  service, the tax imposed by this Act shall be based on the
13  serviceman's cost price of the tangible personal property
14  transferred incident to the sale of those services.
15  Until July 1, 2022 and beginning again on July 1, 2023, the
16  tax shall be imposed at the rate of 1% on food prepared for
17  immediate consumption and transferred incident to a sale of
18  service subject to this Act or the Service Use Tax Act by an
19  entity licensed under the Hospital Licensing Act, the Nursing
20  Home Care Act, the Assisted Living and Shared Housing Act, the
21  ID/DD Community Care Act, the MC/DD Act, the Specialized
22  Mental Health Rehabilitation Act of 2013, or the Child Care
23  Act of 1969, or an entity that holds a permit issued pursuant
24  to the Life Care Facilities Act. Until July 1, 2022 and
25  beginning again on July 1, 2023, the tax shall also be imposed
26  at the rate of 1% on food for human consumption that is to be

 

 

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1  consumed off the premises where it is sold (other than
2  alcoholic beverages, food consisting of or infused with adult
3  use cannabis, soft drinks, and food that has been prepared for
4  immediate consumption and is not otherwise included in this
5  paragraph).
6  Beginning on July 1, 2022 and until July 1, 2023, the tax
7  shall be imposed at the rate of 0% on food prepared for
8  immediate consumption and transferred incident to a sale of
9  service subject to this Act or the Service Use Tax Act by an
10  entity licensed under the Hospital Licensing Act, the Nursing
11  Home Care Act, the Assisted Living and Shared Housing Act, the
12  ID/DD Community Care Act, the MC/DD Act, the Specialized
13  Mental Health Rehabilitation Act of 2013, or the Child Care
14  Act of 1969, or an entity that holds a permit issued pursuant
15  to the Life Care Facilities Act. Beginning July 1, 2022 and
16  until July 1, 2023, the tax shall also be imposed at the rate
17  of 0% on food for human consumption that is to be consumed off
18  the premises where it is sold (other than alcoholic beverages,
19  food consisting of or infused with adult use cannabis, soft
20  drinks, and food that has been prepared for immediate
21  consumption and is not otherwise included in this paragraph).
22  The tax shall also be imposed at the rate of 1% on
23  prescription and nonprescription medicines, drugs, medical
24  appliances, products classified as Class III medical devices
25  by the United States Food and Drug Administration that are
26  used for cancer treatment pursuant to a prescription, as well

 

 

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1  as any accessories and components related to those devices,
2  modifications to a motor vehicle for the purpose of rendering
3  it usable by a person with a disability, and insulin, blood
4  sugar testing materials, syringes, and needles used by human
5  diabetics. For the purposes of this Section, until September
6  1, 2009: the term "soft drinks" means any complete, finished,
7  ready-to-use, non-alcoholic drink, whether carbonated or not,
8  including, but not limited to, soda water, cola, fruit juice,
9  vegetable juice, carbonated water, and all other preparations
10  commonly known as soft drinks of whatever kind or description
11  that are contained in any closed or sealed can, carton, or
12  container, regardless of size; but "soft drinks" does not
13  include coffee, tea, non-carbonated water, infant formula,
14  milk or milk products as defined in the Grade A Pasteurized
15  Milk and Milk Products Act, or drinks containing 50% or more
16  natural fruit or vegetable juice.
17  Notwithstanding any other provisions of this Act,
18  beginning September 1, 2009, "soft drinks" means non-alcoholic
19  beverages that contain natural or artificial sweeteners. "Soft
20  drinks" does not include beverages that contain milk or milk
21  products, soy, rice or similar milk substitutes, or greater
22  than 50% of vegetable or fruit juice by volume.
23  Until August 1, 2009, and notwithstanding any other
24  provisions of this Act, "food for human consumption that is to
25  be consumed off the premises where it is sold" includes all
26  food sold through a vending machine, except soft drinks and

 

 

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1  food products that are dispensed hot from a vending machine,
2  regardless of the location of the vending machine. Beginning
3  August 1, 2009, and notwithstanding any other provisions of
4  this Act, "food for human consumption that is to be consumed
5  off the premises where it is sold" includes all food sold
6  through a vending machine, except soft drinks, candy, and food
7  products that are dispensed hot from a vending machine,
8  regardless of the location of the vending machine.
9  Notwithstanding any other provisions of this Act,
10  beginning September 1, 2009, "food for human consumption that
11  is to be consumed off the premises where it is sold" does not
12  include candy. For purposes of this Section, "candy" means a
13  preparation of sugar, honey, or other natural or artificial
14  sweeteners in combination with chocolate, fruits, nuts or
15  other ingredients or flavorings in the form of bars, drops, or
16  pieces. "Candy" does not include any preparation that contains
17  flour or requires refrigeration.
18  Notwithstanding any other provisions of this Act,
19  beginning September 1, 2009, "nonprescription medicines and
20  drugs" does not include grooming and hygiene products. For
21  purposes of this Section, "grooming and hygiene products"
22  includes, but is not limited to, soaps and cleaning solutions,
23  shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
24  lotions and screens, unless those products are available by
25  prescription only, regardless of whether the products meet the
26  definition of "over-the-counter-drugs". For the purposes of

 

 

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1  this paragraph, "over-the-counter-drug" means a drug for human
2  use that contains a label that identifies the product as a drug
3  as required by 21 CFR 201.66. The "over-the-counter-drug"
4  label includes:
5  (A) a "Drug Facts" panel; or
6  (B) a statement of the "active ingredient(s)" with a
7  list of those ingredients contained in the compound,
8  substance or preparation.
9  Beginning on January 1, 2014 (the effective date of Public
10  Act 98-122) and until January 1, 2025, "prescription and
11  nonprescription medicines and drugs" includes medical cannabis
12  purchased from a registered dispensing organization under the
13  Compassionate Use of Medical Cannabis Program Act.
14  Beginning on January 1, 2025, "prescription and
15  nonprescription medicines and drugs" includes cannabis
16  purchased by a qualified patient, designated caregiver, or
17  provisional patient, as defined in the Compassionate Use of
18  Medical Cannabis Program Act, from a registered dispensing
19  organization.
20  As used in this Section, "adult use cannabis" means
21  cannabis subject to tax under the Cannabis Cultivation
22  Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
23  and does not include cannabis purchased by a qualified
24  patient, designated caregiver, or provisional patient, as
25  defined in the Compassionate Use of Medical Cannabis Program
26  Act subject to tax under the Compassionate Use of Medical

 

 

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1  Cannabis Program Act.
2  (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
3  102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700,
4  Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23;
5  103-154, eff. 6-30-23.)
6  Section 20. The Retailers' Occupation Tax Act is amended
7  by changing Section 2-10 as follows:
8  (35 ILCS 120/2-10)
9  Sec. 2-10. Rate of tax. Unless otherwise provided in this
10  Section, the tax imposed by this Act is at the rate of 6.25% of
11  gross receipts from sales of tangible personal property made
12  in the course of business.
13  Beginning on July 1, 2000 and through December 31, 2000,
14  with respect to motor fuel, as defined in Section 1.1 of the
15  Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
16  the Use Tax Act, the tax is imposed at the rate of 1.25%.
17  Beginning on August 6, 2010 through August 15, 2010, and
18  beginning again on August 5, 2022 through August 14, 2022,
19  with respect to sales tax holiday items as defined in Section
20  2-8 of this Act, the tax is imposed at the rate of 1.25%.
21  Within 14 days after July 1, 2000 (the effective date of
22  Public Act 91-872), each retailer of motor fuel and gasohol
23  shall cause the following notice to be posted in a prominently
24  visible place on each retail dispensing device that is used to

 

 

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1  dispense motor fuel or gasohol in the State of Illinois: "As of
2  July 1, 2000, the State of Illinois has eliminated the State's
3  share of sales tax on motor fuel and gasohol through December
4  31, 2000. The price on this pump should reflect the
5  elimination of the tax." The notice shall be printed in bold
6  print on a sign that is no smaller than 4 inches by 8 inches.
7  The sign shall be clearly visible to customers. Any retailer
8  who fails to post or maintain a required sign through December
9  31, 2000 is guilty of a petty offense for which the fine shall
10  be $500 per day per each retail premises where a violation
11  occurs.
12  With respect to gasohol, as defined in the Use Tax Act, the
13  tax imposed by this Act applies to (i) 70% of the proceeds of
14  sales made on or after January 1, 1990, and before July 1,
15  2003, (ii) 80% of the proceeds of sales made on or after July
16  1, 2003 and on or before July 1, 2017, (iii) 100% of the
17  proceeds of sales made after July 1, 2017 and prior to January
18  1, 2024, (iv) 90% of the proceeds of sales made on or after
19  January 1, 2024 and on or before December 31, 2028, and (v)
20  100% of the proceeds of sales made after December 31, 2028. If,
21  at any time, however, the tax under this Act on sales of
22  gasohol, as defined in the Use Tax Act, is imposed at the rate
23  of 1.25%, then the tax imposed by this Act applies to 100% of
24  the proceeds of sales of gasohol made during that time.
25  With respect to mid-range ethanol blends, as defined in
26  Section 3-44.3 of the Use Tax Act, the tax imposed by this Act

 

 

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1  applies to (i) 80% of the proceeds of sales made on or after
2  January 1, 2024 and on or before December 31, 2028 and (ii)
3  100% of the proceeds of sales made after December 31, 2028. If,
4  at any time, however, the tax under this Act on sales of
5  mid-range ethanol blends is imposed at the rate of 1.25%, then
6  the tax imposed by this Act applies to 100% of the proceeds of
7  sales of mid-range ethanol blends made during that time.
8  With respect to majority blended ethanol fuel, as defined
9  in the Use Tax Act, the tax imposed by this Act does not apply
10  to the proceeds of sales made on or after July 1, 2003 and on
11  or before December 31, 2028 but applies to 100% of the proceeds
12  of sales made thereafter.
13  With respect to biodiesel blends, as defined in the Use
14  Tax Act, with no less than 1% and no more than 10% biodiesel,
15  the tax imposed by this Act applies to (i) 80% of the proceeds
16  of sales made on or after July 1, 2003 and on or before
17  December 31, 2018 and (ii) 100% of the proceeds of sales made
18  after December 31, 2018 and before January 1, 2024. On and
19  after January 1, 2024 and on or before December 31, 2030, the
20  taxation of biodiesel, renewable diesel, and biodiesel blends
21  shall be as provided in Section 3-5.1 of the Use Tax Act. If,
22  at any time, however, the tax under this Act on sales of
23  biodiesel blends, as defined in the Use Tax Act, with no less
24  than 1% and no more than 10% biodiesel is imposed at the rate
25  of 1.25%, then the tax imposed by this Act applies to 100% of
26  the proceeds of sales of biodiesel blends with no less than 1%

 

 

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1  and no more than 10% biodiesel made during that time.
2  With respect to biodiesel, as defined in the Use Tax Act,
3  and biodiesel blends, as defined in the Use Tax Act, with more
4  than 10% but no more than 99% biodiesel, the tax imposed by
5  this Act does not apply to the proceeds of sales made on or
6  after July 1, 2003 and on or before December 31, 2023. On and
7  after January 1, 2024 and on or before December 31, 2030, the
8  taxation of biodiesel, renewable diesel, and biodiesel blends
9  shall be as provided in Section 3-5.1 of the Use Tax Act.
10  Until July 1, 2022 and beginning again on July 1, 2023,
11  with respect to food for human consumption that is to be
12  consumed off the premises where it is sold (other than
13  alcoholic beverages, food consisting of or infused with adult
14  use cannabis, soft drinks, and food that has been prepared for
15  immediate consumption), the tax is imposed at the rate of 1%.
16  Beginning July 1, 2022 and until July 1, 2023, with respect to
17  food for human consumption that is to be consumed off the
18  premises where it is sold (other than alcoholic beverages,
19  food consisting of or infused with adult use cannabis, soft
20  drinks, and food that has been prepared for immediate
21  consumption), the tax is imposed at the rate of 0%.
22  With respect to prescription and nonprescription
23  medicines, drugs, medical appliances, products classified as
24  Class III medical devices by the United States Food and Drug
25  Administration that are used for cancer treatment pursuant to
26  a prescription, as well as any accessories and components

 

 

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1  related to those devices, modifications to a motor vehicle for
2  the purpose of rendering it usable by a person with a
3  disability, and insulin, blood sugar testing materials,
4  syringes, and needles used by human diabetics, the tax is
5  imposed at the rate of 1%. For the purposes of this Section,
6  until September 1, 2009: the term "soft drinks" means any
7  complete, finished, ready-to-use, non-alcoholic drink, whether
8  carbonated or not, including, but not limited to, soda water,
9  cola, fruit juice, vegetable juice, carbonated water, and all
10  other preparations commonly known as soft drinks of whatever
11  kind or description that are contained in any closed or sealed
12  bottle, can, carton, or container, regardless of size; but
13  "soft drinks" does not include coffee, tea, non-carbonated
14  water, infant formula, milk or milk products as defined in the
15  Grade A Pasteurized Milk and Milk Products Act, or drinks
16  containing 50% or more natural fruit or vegetable juice.
17  Notwithstanding any other provisions of this Act,
18  beginning September 1, 2009, "soft drinks" means non-alcoholic
19  beverages that contain natural or artificial sweeteners. "Soft
20  drinks" does not include beverages that contain milk or milk
21  products, soy, rice or similar milk substitutes, or greater
22  than 50% of vegetable or fruit juice by volume.
23  Until August 1, 2009, and notwithstanding any other
24  provisions of this Act, "food for human consumption that is to
25  be consumed off the premises where it is sold" includes all
26  food sold through a vending machine, except soft drinks and

 

 

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1  food products that are dispensed hot from a vending machine,
2  regardless of the location of the vending machine. Beginning
3  August 1, 2009, and notwithstanding any other provisions of
4  this Act, "food for human consumption that is to be consumed
5  off the premises where it is sold" includes all food sold
6  through a vending machine, except soft drinks, candy, and food
7  products that are dispensed hot from a vending machine,
8  regardless of the location of the vending machine.
9  Notwithstanding any other provisions of this Act,
10  beginning September 1, 2009, "food for human consumption that
11  is to be consumed off the premises where it is sold" does not
12  include candy. For purposes of this Section, "candy" means a
13  preparation of sugar, honey, or other natural or artificial
14  sweeteners in combination with chocolate, fruits, nuts or
15  other ingredients or flavorings in the form of bars, drops, or
16  pieces. "Candy" does not include any preparation that contains
17  flour or requires refrigeration.
18  Notwithstanding any other provisions of this Act,
19  beginning September 1, 2009, "nonprescription medicines and
20  drugs" does not include grooming and hygiene products. For
21  purposes of this Section, "grooming and hygiene products"
22  includes, but is not limited to, soaps and cleaning solutions,
23  shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
24  lotions and screens, unless those products are available by
25  prescription only, regardless of whether the products meet the
26  definition of "over-the-counter-drugs". For the purposes of

 

 

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1  this paragraph, "over-the-counter-drug" means a drug for human
2  use that contains a label that identifies the product as a drug
3  as required by 21 CFR 201.66. The "over-the-counter-drug"
4  label includes:
5  (A) a "Drug Facts" panel; or
6  (B) a statement of the "active ingredient(s)" with a
7  list of those ingredients contained in the compound,
8  substance or preparation.
9  Beginning on January 1, 2014 (the effective date of Public
10  Act 98-122) and until January 1, 2025, "prescription and
11  nonprescription medicines and drugs" includes medical cannabis
12  purchased from a registered dispensing organization under the
13  Compassionate Use of Medical Cannabis Program Act.
14  Beginning on January 1, 2025, "prescription and
15  nonprescription medicines and drugs" includes cannabis
16  purchased by a qualified patient, designated caregiver, or
17  provisional patient, as defined in the Compassionate Use of
18  Medical Cannabis Program Act, from a registered dispensing
19  organization.
20  As used in this Section, "adult use cannabis" means
21  cannabis subject to tax under the Cannabis Cultivation
22  Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
23  and does not include cannabis purchased by a qualified
24  patient, designated caregiver, or provisional patient, as
25  defined in the Compassionate Use of Medical Cannabis Program
26  Act subject to tax under the Compassionate Use of Medical

 

 

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1  Cannabis Program Act.
2  (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
3  Section 20-20, eff. 4-19-22; 102-700, Article 60, Section
4  60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff.
5  4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)
6  Section 25. The Compassionate Use of Medical Cannabis
7  Program Act is amended by changing Sections 7, 10, 25, 30, 35,
8  57, 70, 85, 105, 115, 115.5, 120, 130, 145, 150, 165, 170, 180,
9  200, and 210 and by adding Section 136 as follows:
10  (410 ILCS 130/7)
11  Sec. 7. Lawful user and lawful products.  For the purposes
12  of this Act and to clarify the legislative findings on the
13  lawful use of cannabis:
14  (1) A cardholder under this Act shall not be
15  considered an unlawful user or addicted to narcotics
16  solely as a result of his or her qualifying patient,
17  provisional patient, or designated caregiver status.
18  (2) All medical cannabis products purchased by a
19  qualifying patient, provisional patient, or designated
20  caregiver at a licensed dispensing organization shall be
21  lawful products and a distinction shall be made between
22  medical and non-medical uses of cannabis as a result of
23  the qualifying patient's cardholder status, provisional
24  registration for qualifying patient cardholder status, or

 

 

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1  participation in the Opioid Alternative Pilot Program
2  under the authorized use granted under State law.
3  (3) An individual with a provisional registration for
4  qualifying patient cardholder status, a qualifying patient
5  in the Compassionate Use of Medical Cannabis Program, or
6  an Opioid Alternative Pilot Program participant under
7  Section 62 shall not be considered an unlawful user or
8  addicted to narcotics solely as a result of his or her
9  application to or participation in the program.
10  (Source: P.A. 100-1114, eff. 8-28-18; 101-363, eff. 8-9-19.)
11  (410 ILCS 130/10)
12  Sec. 10. Definitions. The following terms, as used in this
13  Act, shall have the meanings set forth in this Section:
14  (a) "Adequate medical supply" means:
15  (1) 2.5 ounces of usable cannabis during a period of
16  14 days and that is derived solely from an intrastate
17  source.
18  (2) Subject to the rules of the Department of Public
19  Health, a patient may apply for a waiver where a
20  certifying health care professional provides a substantial
21  medical basis in a signed, written statement asserting
22  that, based on the patient's medical history, in the
23  certifying health care professional's professional
24  judgment, 2.5 ounces is an insufficient adequate medical
25  supply for a 14-day period to properly alleviate the

 

 

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1  patient's debilitating medical condition or symptoms
2  associated with the debilitating medical condition.
3  (3) This subsection may not be construed to authorize
4  the possession of more than 2.5 ounces at any time without
5  authority from the Department of Public Health.
6  (4) The pre-mixed weight of medical cannabis used in
7  making a cannabis infused product shall apply toward the
8  limit on the total amount of medical cannabis a registered
9  qualifying patient may possess at any one time.
10  (a-5) "Advanced practice registered nurse" means a person
11  who is licensed under the Nurse Practice Act as an advanced
12  practice registered nurse and has a controlled substances
13  license under Article III of the Illinois Controlled
14  Substances Act.
15  (b) "Cannabis" has the meaning given that term in Section
16  3 of the Cannabis Control Act.
17  (c) "Cannabis plant monitoring system" means a system that
18  includes, but is not limited to, testing and data collection
19  established and maintained by the registered cultivation
20  center and available to the Department for the purposes of
21  documenting each cannabis plant and for monitoring plant
22  development throughout the life cycle of a cannabis plant
23  cultivated for the intended use by a qualifying patient from
24  seed planting to final packaging.
25  (d) "Cardholder" means a qualifying patient, provisional
26  patient, or a designated caregiver who has been issued and

 

 

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1  possesses a valid registry identification card by the
2  Department of Public Health.
3  (d-5) "Certifying health care professional" means a
4  physician, an advanced practice registered nurse, or a
5  physician assistant.
6  (e) "Cultivation center" means a facility operated by an
7  organization or business that is registered by the Department
8  of Agriculture to perform necessary activities to provide only
9  registered medical cannabis dispensing organizations with
10  usable medical cannabis.
11  (f) "Cultivation center agent" means a principal officer,
12  board member, employee, or agent of a registered cultivation
13  center who is 21 years of age or older and has not been
14  convicted of an excluded offense.
15  (g) "Cultivation center agent identification card" means a
16  document issued by the Department of Agriculture that
17  identifies a person as a cultivation center agent.
18  (h) "Debilitating medical condition" means one or more of
19  the following:
20  (1) cancer, glaucoma, positive status for human
21  immunodeficiency virus, acquired immune deficiency
22  syndrome, hepatitis C, amyotrophic lateral sclerosis,
23  Crohn's disease (including, but not limited to, ulcerative
24  colitis), agitation of Alzheimer's disease,
25  cachexia/wasting syndrome, muscular dystrophy, severe
26  fibromyalgia, spinal cord disease, including but not

 

 

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1  limited to arachnoiditis, Tarlov cysts, hydromyelia,
2  syringomyelia, Rheumatoid arthritis, fibrous dysplasia,
3  spinal cord injury, traumatic brain injury and
4  post-concussion syndrome, Multiple Sclerosis,
5  Arnold-Chiari malformation and Syringomyelia,
6  Spinocerebellar Ataxia (SCA), Parkinson's, Tourette's,
7  Myoclonus, Dystonia, Reflex Sympathetic Dystrophy, RSD
8  (Complex Regional Pain Syndromes Type I), Causalgia, CRPS
9  (Complex Regional Pain Syndromes Type II),
10  Neurofibromatosis, Chronic Inflammatory Demyelinating
11  Polyneuropathy, Sjogren's syndrome, Lupus, Interstitial
12  Cystitis, Myasthenia Gravis, Hydrocephalus, nail-patella
13  syndrome, residual limb pain, seizures (including those
14  characteristic of epilepsy), post-traumatic stress
15  disorder (PTSD), autism, chronic pain, irritable bowel
16  syndrome, migraines, osteoarthritis, anorexia nervosa,
17  Ehlers-Danlos Syndrome, Neuro-Behcet's Autoimmune
18  Disease, neuropathy, polycystic kidney disease, superior
19  canal dehiscence syndrome, or the treatment of these
20  conditions;
21  (1.5) terminal illness with a diagnosis of 6 months or
22  less; if the terminal illness is not one of the qualifying
23  debilitating medical conditions, then the certifying
24  health care professional shall on the certification form
25  identify the cause of the terminal illness; or
26  (2) any other debilitating medical condition or its

 

 

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1  treatment that is added by the Department of Public Health
2  by rule as provided in Section 45.
3  (i) "Designated caregiver" means a person who: (1) is at
4  least 21 years of age; (2) has agreed to assist with a
5  patient's medical use of cannabis; and (3) has not been
6  convicted of an excluded offense; and (4) assists no more than
7  one registered qualifying patient with his or her medical use
8  of cannabis. Beginning January 1, 2025, a designated caregiver
9  registered under this Act may perform the designated
10  caregiver's duties at any licensed dispensary or dispensing
11  organization licensed by the Department of Financial and
12  Professional Regulation under the Cannabis Regulation and Tax
13  Act.
14  (j) "Dispensing organization agent identification card"
15  means a document issued by the Department of Financial and
16  Professional Regulation that identifies a person as a medical
17  cannabis dispensing organization agent. Beginning January 1,
18  2025, a dispensing organization agent identification card
19  issued under this Act authorizes a person who is a medical
20  cannabis dispensing organization agent to perform the agent's
21  duties at any dispensary or dispensing organization licensed
22  by the Department of Financial and Professional Regulation
23  under the Cannabis Regulation and Tax Act.
24  (k) "Enclosed, locked facility" means a room, greenhouse,
25  building, or other enclosed area equipped with locks or other
26  security devices that permit access only by a cultivation

 

 

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1  center's agents or a dispensing organization's agent working
2  for the registered cultivation center or the registered
3  dispensing organization to cultivate, store, and distribute
4  cannabis for registered qualifying patients.
5  (l) (Blank). "Excluded offense" for cultivation center
6  agents and dispensing organizations means:
7  (1) a violent crime defined in Section 3 of the Rights
8  of Crime Victims and Witnesses Act or a substantially
9  similar offense that was classified as a felony in the
10  jurisdiction where the person was convicted; or
11  (2) a violation of a state or federal controlled
12  substance law, the Cannabis Control Act, or the
13  Methamphetamine Control and Community Protection Act that
14  was classified as a felony in the jurisdiction where the
15  person was convicted, except that the registering
16  Department may waive this restriction if the person
17  demonstrates to the registering Department's satisfaction
18  that his or her conviction was for the possession,
19  cultivation, transfer, or delivery of a reasonable amount
20  of cannabis intended for medical use. This exception does
21  not apply if the conviction was under state law and
22  involved a violation of an existing medical cannabis law.
23  For purposes of this subsection, the Department of Public
24  Health shall determine by emergency rule within 30 days after
25  the effective date of this amendatory Act of the 99th General
26  Assembly what constitutes a "reasonable amount".

 

 

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1  (l-5) (Blank).
2  (l-10) "Illinois Cannabis Tracking System" means a
3  web-based system established and maintained by the Department
4  of Public Health that is available to the Department of
5  Agriculture, the Department of Financial and Professional
6  Regulation, the Illinois State Police, and registered medical
7  cannabis dispensing organizations on a 24-hour basis to upload
8  written certifications for Opioid Alternative Pilot Program
9  participants, to verify Opioid Alternative Pilot Program
10  participants, to verify Opioid Alternative Pilot Program
11  participants' available cannabis allotment and assigned
12  dispensary, and the tracking of the date of sale, amount, and
13  price of medical cannabis purchased by an Opioid Alternative
14  Pilot Program participant.
15  (m) "Medical cannabis cultivation center registration"
16  means a registration issued by the Department of Agriculture.
17  (n) "Medical cannabis container" means a sealed,
18  traceable, food compliant, tamper resistant, tamper evident
19  container, or package used for the purpose of containment of
20  medical cannabis from a cultivation center to a dispensing
21  organization.
22  (o) "Medical cannabis dispensing organization", or
23  "dispensing organization", or "dispensary organization" means
24  a facility operated by an organization or business that is
25  registered by the Department of Financial and Professional
26  Regulation to acquire medical cannabis from a registered

 

 

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1  cultivation center for the purpose of dispensing cannabis,
2  paraphernalia, or related supplies and educational materials
3  to registered qualifying patients, individuals with a
4  provisional registration for qualifying patient cardholder
5  status, or an Opioid Alternative Pilot Program participant.
6  Beginning January 1, 2025, a medical cannabis dispensing
7  organization licensed under this Act is subject to regulation
8  under the Cannabis Regulation and Tax Act as a dispensary or
9  dispensing organization as defined in that Act.
10  (p) "Medical cannabis dispensing organization agent" or
11  "dispensing organization agent" means a principal officer,
12  board member, employee, or agent of a registered medical
13  cannabis dispensing organization who is 21 years of age or
14  older and has not been convicted of an excluded offense.
15  Beginning January 1, 2025, a medical cannabis dispensing
16  organization agent and a dispensing organization agent
17  licensed under this Act are subject to regulation under the
18  Cannabis Regulation and Tax Act as a dispensary organization
19  agent as defined in that Act.
20  (q) "Medical cannabis infused product" means food, oils,
21  ointments, or other products containing usable cannabis that
22  are not smoked.
23  (r) "Medical use" means the acquisition; administration;
24  delivery; possession; transfer; transportation; or use of
25  cannabis to treat or alleviate a registered qualifying
26  patient's debilitating medical condition or symptoms

 

 

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1  associated with the patient's debilitating medical condition.
2  (r-5) "Opioid" means a narcotic drug or substance that is
3  a Schedule II controlled substance under paragraph (1), (2),
4  (3), or (5) of subsection (b) or under subsection (c) of
5  Section 206 of the Illinois Controlled Substances Act.
6  (r-10) "Opioid Alternative Pilot Program participant"
7  means an individual who has received a valid written
8  certification to participate in the Opioid Alternative Pilot
9  Program for a medical condition for which an opioid has been or
10  could be prescribed by a certifying health care professional
11  based on generally accepted standards of care.
12  (s) "Physician" means a doctor of medicine or doctor of
13  osteopathy licensed under the Medical Practice Act of 1987 to
14  practice medicine and who has a controlled substances license
15  under Article III of the Illinois Controlled Substances Act.
16  It does not include a licensed practitioner under any other
17  Act including but not limited to the Illinois Dental Practice
18  Act.
19  (s-1) "Physician assistant" means a physician assistant
20  licensed under the Physician Assistant Practice Act of 1987
21  and who has a controlled substances license under Article III
22  of the Illinois Controlled Substances Act.
23  (s-5) "Provisional registration" means a document issued
24  by the Department of Public Health to a qualifying patient who
25  has submitted: (1) an online application and paid a fee to
26  participate in Compassionate Use of Medical Cannabis Program

 

 

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1  pending approval or denial of the patient's application; or
2  (2) a completed application for terminal illness.
3  (s-10) "Provisional patient" means a qualifying patient
4  who has received a provisional registration from the
5  Department of Public Health.
6  (t) "Qualifying patient" means a person who has been
7  diagnosed by a certifying health care professional as having a
8  debilitating medical condition. Beginning January 1, 2025, a
9  qualifying patient registered under this Act may purchase
10  medical cannabis at any dispensary or dispensing organization
11  licensed by the Department of Financial and Professional
12  Regulation under the Cannabis Regulation and Tax Act.
13  (u) "Registered" means licensed, permitted, or otherwise
14  certified by the Department of Agriculture, Department of
15  Public Health, or Department of Financial and Professional
16  Regulation.
17  (v) "Registry identification card" means a document issued
18  by the Department of Public Health that identifies a person as
19  a registered qualifying patient, provisional patient, or
20  registered designated caregiver.
21  (w) "Usable cannabis" means the seeds, leaves, buds, and
22  flowers of the cannabis plant and any mixture or preparation
23  thereof, but does not include the stalks, and roots of the
24  plant. It does not include the weight of any non-cannabis
25  ingredients combined with cannabis, such as ingredients added
26  to prepare a topical administration, food, or drink.

 

 

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1  (x) "Verification system" means a Web-based system
2  established and maintained by the Department of Public Health
3  that is available to the Department of Agriculture, the
4  Department of Financial and Professional Regulation, law
5  enforcement personnel, and registered medical cannabis
6  dispensing organization agents on a 24-hour basis for the
7  verification of registry identification cards, the tracking of
8  delivery of medical cannabis to medical cannabis dispensing
9  organizations, and the tracking of the date of sale, amount,
10  and price of medical cannabis purchased by a registered
11  qualifying patient.
12  (y) "Written certification" means a document dated and
13  signed by a certifying health care professional, stating (1)
14  that the qualifying patient has a debilitating medical
15  condition and specifying the debilitating medical condition
16  the qualifying patient has; and (2) that (A) the certifying
17  health care professional is treating or managing treatment of
18  the patient's debilitating medical condition; or (B) an Opioid
19  Alternative Pilot Program participant has a medical condition
20  for which opioids have been or could be prescribed. A written
21  certification shall be made only in the course of a bona fide
22  health care professional-patient relationship, after the
23  certifying health care professional has completed an
24  assessment of either a qualifying patient's medical history or
25  Opioid Alternative Pilot Program participant, reviewed
26  relevant records related to the patient's debilitating

 

 

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1  condition, and conducted a physical examination.
2  (z) "Bona fide health care professional-patient
3  relationship" means a relationship established at a hospital,
4  certifying health care professional's office, or other health
5  care facility in which the certifying health care professional
6  has an ongoing responsibility for the assessment, care, and
7  treatment of a patient's debilitating medical condition or a
8  symptom of the patient's debilitating medical condition.
9  A veteran who has received treatment at a VA hospital
10  shall be deemed to have a bona fide health care
11  professional-patient relationship with a VA certifying health
12  care professional if the patient has been seen for his or her
13  debilitating medical condition at the VA Hospital in
14  accordance with VA Hospital protocols.
15  A bona fide health care professional-patient relationship
16  under this subsection is a privileged communication within the
17  meaning of Section 8-802 of the Code of Civil Procedure.
18  (Source: P.A. 100-1114, eff. 8-28-18; 101-363, eff. 8-9-19.)
19  (410 ILCS 130/25)
20  Sec. 25. Immunities and presumptions related to the
21  medical use of cannabis.
22  (a) A registered qualifying patient is not subject to
23  arrest, prosecution, or denial of any right or privilege,
24  including, but not limited to, civil penalty or disciplinary
25  action by an occupational or professional licensing board, for

 

 

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1  the medical use of cannabis in accordance with this Act, if the
2  registered qualifying patient possesses an amount of cannabis
3  that does not exceed an adequate medical supply as defined in
4  subsection (a) of Section 10 of this Act of usable cannabis
5  and, where the registered qualifying patient is a licensed
6  professional, the use of cannabis does not impair that
7  licensed professional when he or she is engaged in the
8  practice of the profession for which he or she is licensed.
9  (b) A registered designated caregiver is not subject to
10  arrest, prosecution, or denial of any right or privilege,
11  including, but not limited to, civil penalty or disciplinary
12  action by an occupational or professional licensing board, for
13  acting in accordance with this Act to assist a registered
14  qualifying patient to whom he or she is connected through the
15  Department's registration process with the medical use of
16  cannabis if the designated caregiver possesses an amount of
17  cannabis that does not exceed an adequate medical supply as
18  defined in subsection (a) of Section 10 of this Act of usable
19  cannabis. A school nurse or school administrator is not
20  subject to arrest, prosecution, or denial of any right or
21  privilege, including, but not limited to, a civil penalty, for
22  acting in accordance with Section 22-33 of the School Code
23  relating to administering or assisting a student in
24  self-administering a medical cannabis infused product. The
25  total amount possessed between the qualifying patient and
26  caregiver shall not exceed the patient's adequate medical

 

 

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1  supply as defined in subsection (a) of Section 10 of this Act.
2  (c) A registered qualifying patient or registered
3  designated caregiver is not subject to arrest, prosecution, or
4  denial of any right or privilege, including, but not limited
5  to, civil penalty or disciplinary action by an occupational or
6  professional licensing board for possession of cannabis that
7  is incidental to medical use, but is not usable cannabis as
8  defined in this Act.
9  (d)(1) There is a rebuttable presumption that a registered
10  qualifying patient is engaged in, or a designated caregiver is
11  assisting with, the medical use of cannabis in accordance with
12  this Act if the qualifying patient or designated caregiver:
13  (A) is in possession of a valid registry
14  identification card; and
15  (B) is in possession of an amount of cannabis that
16  does not exceed the amount allowed under subsection (a) of
17  Section 10.
18  (2) The presumption may be rebutted by evidence that
19  conduct related to cannabis was not for the purpose of
20  treating or alleviating the qualifying patient's debilitating
21  medical condition or symptoms associated with the debilitating
22  medical condition in compliance with this Act.
23  (e) A certifying health care professional is not subject
24  to arrest, prosecution, or penalty in any manner, or denial of
25  any right or privilege, including, but not limited to, civil
26  penalty or disciplinary action by the Medical Disciplinary

 

 

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1  Board or by any other occupational or professional licensing
2  board, solely for providing written certifications or for
3  otherwise stating that, in the certifying health care
4  professional's professional opinion, a patient is likely to
5  receive therapeutic or palliative benefit from the medical use
6  of cannabis to treat or alleviate the patient's debilitating
7  medical condition or symptoms associated with the debilitating
8  medical condition, provided that nothing shall prevent a
9  professional licensing or disciplinary board from sanctioning
10  a certifying health care professional for: (1) issuing a
11  written certification to a patient who is not under the
12  certifying health care professional's care for a debilitating
13  medical condition; or (2) failing to properly evaluate a
14  patient's medical condition or otherwise violating the
15  standard of care for evaluating medical conditions.
16  (f) No person may be subject to arrest, prosecution, or
17  denial of any right or privilege, including, but not limited
18  to, civil penalty or disciplinary action by an occupational or
19  professional licensing board, solely for: (1) selling cannabis
20  paraphernalia to a cardholder upon presentation of an
21  unexpired registry identification card in the recipient's
22  name, if employed and registered as a dispensing agent by a
23  registered dispensing organization; (2) being in the presence
24  or vicinity of the medical use of cannabis as allowed under
25  this Act; or (3) assisting a registered qualifying patient
26  with the act of administering cannabis.

 

 

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1  (g) A registered cultivation center is not subject to
2  prosecution; search or inspection, except by the Department of
3  Agriculture, Department of Public Health, or State or local
4  law enforcement under Section 130; seizure; or penalty in any
5  manner, or denial of any right or privilege, including, but
6  not limited to, civil penalty or disciplinary action by a
7  business licensing board or entity, for acting under this Act
8  and Department of Agriculture rules to: acquire, possess,
9  cultivate, manufacture, deliver, transfer, transport, supply,
10  or sell cannabis to registered dispensing organizations.
11  (h) A registered cultivation center agent is not subject
12  to prosecution, search, or penalty in any manner, or denial of
13  any right or privilege, including, but not limited to, civil
14  penalty or disciplinary action by a business licensing board
15  or entity, for working or volunteering for a registered
16  cannabis cultivation center under this Act and Department of
17  Agriculture rules, including to perform the actions listed
18  under subsection (g).
19  (i) A registered dispensing organization is not subject to
20  prosecution; search or inspection, except by the Department of
21  Financial and Professional Regulation or State or local law
22  enforcement pursuant to Section 130; seizure; or penalty in
23  any manner, or denial of any right or privilege, including,
24  but not limited to, civil penalty or disciplinary action by a
25  business licensing board or entity, for acting under this Act
26  and Department of Financial and Professional Regulation rules

 

 

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1  to: acquire, possess, or dispense cannabis, or related
2  supplies, and educational materials to registered qualifying
3  patients or registered designated caregivers on behalf of
4  registered qualifying patients.
5  (j) A registered dispensing organization agent is not
6  subject to prosecution, search, or penalty in any manner, or
7  denial of any right or privilege, including, but not limited
8  to, civil penalty or disciplinary action by a business
9  licensing board or entity, for working or volunteering for a
10  dispensing organization under this Act and Department of
11  Financial and Professional Regulation rules, including to
12  perform the actions listed under subsection (i).
13  (k) Any cannabis, cannabis paraphernalia, illegal
14  property, or interest in legal property that is possessed,
15  owned, or used in connection with the medical use of cannabis
16  as allowed under this Act, or acts incidental to that use, may
17  not be seized or forfeited. This Act does not prevent the
18  seizure or forfeiture of cannabis exceeding the amounts
19  allowed under this Act, nor shall it prevent seizure or
20  forfeiture if the basis for the action is unrelated to the
21  cannabis that is possessed, manufactured, transferred, or used
22  under this Act.
23  (l) Mere possession of, or application for, a registry
24  identification card or registration certificate does not
25  constitute probable cause or reasonable suspicion, nor shall
26  it be used as the sole basis to support the search of the

 

 

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1  person, property, or home of the person possessing or applying
2  for the registry identification card. The possession of, or
3  application for, a registry identification card does not
4  preclude the existence of probable cause if probable cause
5  exists on other grounds.
6  (m) Nothing in this Act shall preclude local or State law
7  enforcement agencies from searching a registered cultivation
8  center where there is probable cause to believe that the
9  criminal laws of this State have been violated and the search
10  is conducted in conformity with the Illinois Constitution, the
11  Constitution of the United States, and all State statutes.
12  (n) Nothing in this Act shall preclude local or State law
13  enforcement agencies from searching a registered dispensing
14  organization where there is probable cause to believe that the
15  criminal laws of this State have been violated and the search
16  is conducted in conformity with the Illinois Constitution, the
17  Constitution of the United States, and all State statutes.
18  (o) No individual employed by the State of Illinois shall
19  be subject to criminal or civil penalties for taking any
20  action in accordance with the provisions of this Act, when the
21  actions are within the scope of his or her employment.
22  Representation and indemnification of State employees shall be
23  provided to State employees as set forth in Section 2 of the
24  State Employee Indemnification Act.
25  (p) No law enforcement or correctional agency, nor any
26  individual employed by a law enforcement or correctional

 

 

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1  agency, shall be subject to criminal or civil liability,
2  except for willful and wanton misconduct, as a result of
3  taking any action within the scope of the official duties of
4  the agency or individual to prohibit or prevent the possession
5  or use of cannabis by a cardholder incarcerated at a
6  correctional facility, jail, or municipal lockup facility, on
7  parole or mandatory supervised release, or otherwise under the
8  lawful jurisdiction of the agency or individual.
9  (Source: P.A. 101-363, eff. 8-19-19; 101-370, eff. 1-1-20;
10  102-558, eff. 8-20-21.)
11  (410 ILCS 130/30)
12  Sec. 30. Limitations and penalties.
13  (a) This Act does not permit any person to engage in, and
14  does not prevent the imposition of any civil, criminal, or
15  other penalties for engaging in, the following conduct:
16  (1) Undertaking any task under the influence of
17  cannabis, when doing so would constitute negligence,
18  professional malpractice, or professional misconduct;
19  (2) Possessing cannabis:
20  (A) except as provided under Section 22-33 of the
21  School Code, in a school bus;
22  (B) except as provided under Section 22-33 of the
23  School Code, on the grounds of any preschool or
24  primary or secondary school;
25  (C) in any correctional facility;

 

 

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1  (D) in a vehicle under Section 11-502.1 of the
2  Illinois Vehicle Code;
3  (E) in a vehicle not open to the public unless the
4  medical cannabis is in a reasonably secured, sealed
5  container and reasonably inaccessible while the
6  vehicle is moving; or
7  (F) in a private residence that is used at any time
8  to provide licensed child care or other similar social
9  service care on the premises;
10  (3) Using cannabis:
11  (A) except as provided under Section 22-33 of the
12  School Code, in a school bus;
13  (B) except as provided under Section 22-33 of the
14  School Code, on the grounds of any preschool or
15  primary or secondary school;
16  (C) in any correctional facility;
17  (D) in any motor vehicle;
18  (E) in a private residence that is used at any time
19  to provide licensed child care or other similar social
20  service care on the premises;
21  (F) except as provided under Section 22-33 of the
22  School Code and Section 31 of this Act, in any public
23  place. "Public place" as used in this subsection means
24  any place where an individual could reasonably be
25  expected to be observed by others. A "public place"
26  includes all parts of buildings owned in whole or in

 

 

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1  part, or leased, by the State or a local unit of
2  government. A "public place" does not include a
3  private residence unless the private residence is used
4  to provide licensed child care, foster care, or other
5  similar social service care on the premises. For
6  purposes of this subsection, a "public place" does not
7  include a health care facility. For purposes of this
8  Section, a "health care facility" includes, but is not
9  limited to, hospitals, nursing homes, hospice care
10  centers, and long-term care facilities;
11  (G) except as provided under Section 22-33 of the
12  School Code and Section 31 of this Act, knowingly in
13  close physical proximity to anyone under the age of 18
14  years of age;
15  (4) Smoking medical cannabis in any public place where
16  an individual could reasonably be expected to be observed
17  by others, in a health care facility, or any other place
18  where smoking is prohibited under the Smoke Free Illinois
19  Act;
20  (5) Operating, navigating, or being in actual physical
21  control of any motor vehicle, aircraft, or motorboat while
22  using or under the influence of cannabis in violation of
23  Sections 11-501 and 11-502.1 of the Illinois Vehicle Code;
24  (6) Using or possessing cannabis if that person does
25  not have a debilitating medical condition and is not a
26  registered qualifying patient or caregiver;

 

 

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1  (7) Allowing any person who is not allowed to use
2  cannabis under this Act to use cannabis that a cardholder
3  is allowed to possess under this Act;
4  (8) Transferring cannabis to any person contrary to
5  the provisions of this Act;
6  (9) The use of medical cannabis by an active duty law
7  enforcement officer, correctional officer, correctional
8  probation officer, or firefighter; or
9  (10) The use of medical cannabis by a person who has a
10  school bus permit or a Commercial Driver's License.
11  (b) Nothing in this Act shall be construed to prevent the
12  arrest or prosecution of a registered qualifying patient for
13  reckless driving or driving under the influence of cannabis
14  where probable cause exists.
15  (c) Notwithstanding any other criminal penalties related
16  to the unlawful possession of cannabis, knowingly making a
17  misrepresentation to a law enforcement official of any fact or
18  circumstance relating to the medical use of cannabis to avoid
19  arrest or prosecution is a petty offense punishable by a fine
20  of up to $1,000, which shall be in addition to any other
21  penalties that may apply for making a false statement or for
22  the use of cannabis other than use undertaken under this Act.
23  (d) Notwithstanding any other criminal penalties related
24  to the unlawful possession of cannabis, any person who makes a
25  misrepresentation of a medical condition to a certifying
26  health care professional or fraudulently provides material

 

 

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1  misinformation to a certifying health care professional in
2  order to obtain a written certification is guilty of a petty
3  offense punishable by a fine of up to $1,000.
4  (e) Any cardholder or registered caregiver who sells
5  cannabis shall have his or her registry identification card
6  revoked and is subject to other penalties for the unauthorized
7  sale of cannabis.
8  (f) Any registered qualifying patient who commits a
9  violation of Section 11-502.1 of the Illinois Vehicle Code or
10  refuses a properly requested test related to operating a motor
11  vehicle while under the influence of cannabis shall have his
12  or her registry identification card revoked.
13  (g) No registered qualifying patient or designated
14  caregiver shall knowingly obtain, seek to obtain, or possess,
15  individually or collectively, an amount of usable cannabis
16  from a registered medical cannabis dispensing organization
17  that would cause him or her to exceed the authorized adequate
18  medical supply under subsection (a) of Section 10.
19  (h) Nothing in this Act shall prevent a private business
20  from restricting or prohibiting the medical use of cannabis on
21  its property.
22  (i) Nothing in this Act shall prevent a university,
23  college, or other institution of post-secondary education from
24  restricting or prohibiting the use of medical cannabis on its
25  property.
26  (Source: P.A. 101-363, eff. 8-9-19; 102-67, eff. 7-9-21.)

 

 

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1  (410 ILCS 130/35)
2  Sec. 35. Certifying health care professional requirements.
3  (a) A certifying health care professional who certifies a
4  debilitating medical condition for a qualifying patient shall
5  comply with all of the following requirements:
6  (1) The certifying health care professional shall be
7  currently licensed under the Medical Practice Act of 1987
8  to practice medicine in all its branches, the Nurse
9  Practice Act, or the Physician Assistant Practice Act of
10  1987, shall be in good standing, and must hold a
11  controlled substances license under Article III of the
12  Illinois Controlled Substances Act.
13  (2) A certifying health care professional certifying a
14  patient's condition shall comply with generally accepted
15  standards of medical practice, the provisions of the Act
16  under which he or she is licensed and all applicable
17  rules.
18  (3) The physical examination required by this Act may
19  not be performed by remote means, including telemedicine.
20  (4) The certifying health care professional shall
21  maintain a record-keeping system for all patients for whom
22  the certifying health care professional has certified the
23  patient's medical condition. These records shall be
24  accessible to and subject to review by the Department of
25  Public Health and the Department of Financial and

 

 

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1  Professional Regulation upon request.
2  (b) A certifying health care professional may not:
3  (1) accept, solicit, or offer any form of remuneration
4  from or to a qualifying patient, provisional patient,
5  primary caregiver, cultivation center, or dispensing
6  organization, including each principal officer, board
7  member, agent, and employee, to certify a patient, other
8  than accepting payment from a patient for the fee
9  associated with the required examination, except for the
10  limited purpose of performing a medical cannabis-related
11  research study;
12  (1.5) accept, solicit, or offer any form of
13  remuneration from or to a medical cannabis cultivation
14  center or dispensary organization for the purposes of
15  referring a patient to a specific dispensary organization;
16  (1.10) engage in any activity that is prohibited under
17  Section 22.2 of the Medical Practice Act of 1987,
18  regardless of whether the certifying health care
19  professional is a physician, advanced practice registered
20  nurse, or physician assistant;
21  (2) offer a discount of any other item of value to a
22  qualifying patient or provisional patient who uses or
23  agrees to use a particular primary caregiver or dispensing
24  organization to obtain medical cannabis;
25  (3) conduct a personal physical examination of a
26  patient for purposes of diagnosing a debilitating medical

 

 

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1  condition at a location where medical cannabis is sold or
2  distributed or at the address of a principal officer,
3  agent, or employee or a medical cannabis organization;
4  (4) hold a direct or indirect economic interest in a
5  cultivation center or dispensing organization if he or she
6  recommends the use of medical cannabis to qualified
7  patients or is in a partnership or other fee or
8  profit-sharing relationship with a certifying health care
9  professional who recommends medical cannabis, except for
10  the limited purpose of performing a medical
11  cannabis-related research study;
12  (5) serve on the board of directors or as an employee
13  of a cultivation center or dispensing organization;
14  (6) refer patients to a cultivation center, a
15  dispensing organization, or a registered designated
16  caregiver; or
17  (7) advertise in a cultivation center or a dispensing
18  organization.
19  (c) The Department of Public Health may with reasonable
20  cause refer a certifying health care professional, who has
21  certified a debilitating medical condition of a patient, to
22  the Illinois Department of Financial and Professional
23  Regulation for potential violations of this Section.
24  (d) Any violation of this Section or any other provision
25  of this Act or rules adopted under this Act is a violation of
26  the certifying health care professional's licensure act.

 

 

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1  (e) A certifying health care professional who certifies a
2  debilitating medical condition for a qualifying patient may
3  notify the Department of Public Health in writing: (1) if the
4  certifying health care professional has reason to believe
5  either that the registered qualifying patient has ceased to
6  suffer from a debilitating medical condition; (2) that the
7  bona fide health care professional-patient relationship has
8  terminated; or (3) that continued use of medical cannabis
9  would result in contraindication with the patient's other
10  medication. The registered qualifying patient's registry
11  identification card shall be revoked by the Department of
12  Public Health after receiving the certifying health care
13  professional's notification.
14  (f) Nothing in this Act shall preclude a certifying health
15  care professional from referring a patient for health
16  services, except when the referral is limited to certification
17  purposes only, under this Act.
18  (Source: P.A. 101-363, eff. 8-9-19; 102-558, eff. 8-20-21.)
19  (410 ILCS 130/57)
20  Sec. 57. Qualifying patients.
21  (a) Qualifying patients that are under the age of 18 years
22  shall not be prohibited from appointing up to 3 designated
23  caregivers who meet the definition of "designated caregiver"
24  under Section 10 so long as at least one designated caregiver
25  is a biological parent or legal guardian.

 

 

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1  (b) Qualifying patients that are 18 years of age or older
2  shall not be prohibited from appointing up to 3 designated
3  caregivers who meet the definition of "designated caregiver"
4  under Section 10.
5  (c) Beginning January 1, 2025, qualifying patients
6  registered under this Act may purchase cannabis and
7  cannabis-infused products at a dispensing organization
8  licensed by the Department of Financial and Professional
9  Regulation.
10  (Source: P.A. 101-363, eff. 8-9-19.)
11  (410 ILCS 130/70)
12  Sec. 70. Registry identification cards.
13  (a) A registered qualifying patient or designated
14  caregiver must keep their registry identification card in his
15  or her possession at all times when engaging in the medical use
16  of cannabis.
17  (b) Registry identification cards shall contain the
18  following:
19  (1) the name of the cardholder;
20  (2) a designation of whether the cardholder is a
21  designated caregiver or qualifying patient;
22  (3) the date of issuance and expiration date of the
23  registry identification card;
24  (4) a random alphanumeric identification number that
25  is unique to the cardholder;

 

 

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1  (5) if the cardholder is a designated caregiver, the
2  random alphanumeric identification number of the
3  registered qualifying patient the designated caregiver is
4  receiving the registry identification card to assist; and
5  (6) a photograph of the cardholder, if required by
6  Department of Public Health rules.
7  (c) To maintain a valid registration identification card,
8  a registered qualifying patient and caregiver must annually
9  resubmit, at least 45 days prior to the expiration date stated
10  on the registry identification card, a completed renewal
11  application, renewal fee, and accompanying documentation as
12  described in Department of Public Health rules. The Department
13  of Public Health shall send a notification to a registered
14  qualifying patient or registered designated caregiver 90 days
15  prior to the expiration of the registered qualifying patient's
16  or registered designated caregiver's identification card. If
17  the Department of Public Health fails to grant or deny a
18  renewal application received in accordance with this Section,
19  then the renewal is deemed granted and the registered
20  qualifying patient or registered designated caregiver may
21  continue to use the expired identification card until the
22  Department of Public Health denies the renewal or issues a new
23  identification card.
24  (d) Except as otherwise provided in this Section, the
25  expiration date is 3 years after the date of issuance.
26  (e) The Department of Public Health may electronically

 

 

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1  store in the card any or all of the information listed in
2  subsection (b), along with the address and date of birth of the
3  cardholder and the qualifying patient's designated dispensary
4  organization, to allow it to be read by law enforcement
5  agents.
6  (Source: P.A. 98-122, eff. 1-1-14; 99-519, eff. 6-30-16.)
7  (410 ILCS 130/85)
8  Sec. 85. Issuance and denial of medical cannabis
9  cultivation permit.
10  (a) The Department of Agriculture may register up to 22
11  cultivation center registrations for operation. The Department
12  of Agriculture may not issue more than one registration per
13  each Illinois State Police District boundary as specified on
14  the date of January 1, 2013. The Department of Agriculture may
15  not issue less than the 22 registrations if there are
16  qualified applicants who have applied with the Department.
17  (b) The registrations shall be issued and renewed annually
18  as determined by administrative rule.
19  (c) The Department of Agriculture shall determine a
20  registration fee by rule.
21  (d) A cultivation center may only operate if it has been
22  issued a valid registration from the Department of
23  Agriculture. When applying for a cultivation center
24  registration, the applicant shall submit the following in
25  accordance with Department of Agriculture rules:

 

 

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1  (1) the proposed legal name of the cultivation center;
2  (2) the proposed physical address of the cultivation
3  center and description of the enclosed, locked facility as
4  it applies to cultivation centers where medical cannabis
5  will be grown, harvested, manufactured, packaged, or
6  otherwise prepared for distribution to a dispensing
7  organization;
8  (3) the name, address, and date of birth of each
9  principal officer and board member of the cultivation
10  center, provided that all those individuals shall be at
11  least 21 years of age;
12  (4) any instance in which a business that any of the
13  prospective board members of the cultivation center had
14  managed or served on the board of the business and was
15  convicted, fined, censured, or had a registration or
16  license suspended or revoked in any administrative or
17  judicial proceeding;
18  (5) cultivation, inventory, and packaging plans;
19  (6) proposed operating by-laws that include procedures
20  for the oversight of the cultivation center, development
21  and implementation of a plant monitoring system, medical
22  cannabis container tracking system, accurate record
23  keeping, staffing plan, and security plan reviewed by the
24  Illinois State Police that are in accordance with the
25  rules issued by the Department of Agriculture under this
26  Act. A physical inventory shall be performed of all plants

 

 

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1  and medical cannabis containers on a weekly basis;
2  (7) experience with agricultural cultivation
3  techniques and industry standards;
4  (8) any academic degrees, certifications, or relevant
5  experience with related businesses;
6  (9) the identity of every person, association, trust,
7  or corporation having any direct or indirect pecuniary
8  interest in the cultivation center operation with respect
9  to which the registration is sought. If the disclosed
10  entity is a trust, the application shall disclose the
11  names and addresses of the beneficiaries; if a
12  corporation, the names and addresses of all stockholders
13  and directors; if a partnership, the names and addresses
14  of all partners, both general and limited;
15  (10) verification from the Illinois State Police that
16  all background checks of the principal officer, board
17  members, and registered agents have been conducted and
18  those individuals have not been convicted of an excluded
19  offense;
20  (11) provide a copy of the current local zoning
21  ordinance to the Department of Agriculture and verify that
22  proposed cultivation center is in compliance with the
23  local zoning rules issued in accordance with Section 140;
24  (12) an application fee set by the Department of
25  Agriculture by rule; and
26  (13) any other information required by Department of

 

 

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1  Agriculture rules, including, but not limited to a
2  cultivation center applicant's experience with the
3  cultivation of agricultural or horticultural products,
4  operating an agriculturally related business, or operating
5  a horticultural business.
6  (e) An application for a cultivation center permit must be
7  denied if any of the following conditions are met:
8  (1) the applicant failed to submit the materials
9  required by this Section, including if the applicant's
10  plans do not satisfy the security, oversight, inventory,
11  or recordkeeping rules issued by the Department of
12  Agriculture;
13  (2) the applicant would not be in compliance with
14  local zoning rules issued in accordance with Section 140;
15  (3) (blank) one or more of the prospective principal
16  officers or board members has been convicted of an
17  excluded offense;
18  (4) one or more of the prospective principal officers
19  or board members has served as a principal officer or
20  board member for a registered dispensing organization or
21  cultivation center that has had its registration revoked;
22  (5) one or more of the principal officers or board
23  members is under 21 years of age;
24  (6) (blank) a principal officer or board member of the
25  cultivation center has been convicted of a felony under
26  the laws of this State, any other state, or the United

 

 

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1  States;
2  (7) (blank) a principal officer or board member of the
3  cultivation center has been convicted of any violation of
4  Article 28 of the Criminal Code of 2012, or substantially
5  similar laws of any other jurisdiction; or
6  (8) the person has submitted an application for a
7  certificate under this Act which contains false
8  information.
9  (Source: P.A. 102-538, eff. 8-20-21.)
10  (410 ILCS 130/105)
11  Sec. 105. Requirements; prohibitions; penalties for
12  cultivation centers.
13  (a) The operating documents of a registered cultivation
14  center shall include procedures for the oversight of the
15  cultivation center, a cannabis plant monitoring system
16  including a physical inventory recorded weekly, a cannabis
17  container system including a physical inventory recorded
18  weekly, accurate record keeping, and a staffing plan.
19  (b) A registered cultivation center shall implement a
20  security plan reviewed by the Illinois State Police and
21  including but not limited to: facility access controls,
22  perimeter intrusion detection systems, personnel
23  identification systems, 24-hour surveillance system to monitor
24  the interior and exterior of the registered cultivation center
25  facility and accessible to authorized law enforcement and the

 

 

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1  Department of Agriculture in real-time.
2  (c) A registered cultivation center may not be located
3  within 2,500 feet of the property line of a pre-existing
4  public or private preschool or elementary or secondary school
5  or day care center, day care home, group day care home, part
6  day child care facility, or an area zoned for residential use.
7  (d) All cultivation of cannabis for distribution to a
8  registered dispensing organization must take place in an
9  enclosed, locked facility as it applies to cultivation centers
10  at the physical address provided to the Department of
11  Agriculture during the registration process. The cultivation
12  center location shall only be accessed by the cultivation
13  center agents working for the registered cultivation center,
14  Department of Agriculture staff performing inspections,
15  Department of Public Health staff performing inspections, law
16  enforcement or other emergency personnel, and contractors
17  working on jobs unrelated to medical cannabis, such as
18  installing or maintaining security devices or performing
19  electrical wiring.
20  (e) A cultivation center may not sell or distribute any
21  cannabis to any individual or entity other than another
22  cultivation center, a dispensing organization registered under
23  this Act, or a laboratory licensed by the Department of
24  Agriculture.
25  (f) All harvested cannabis intended for distribution to a
26  dispensing organization must be packaged in a labeled medical

 

 

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1  cannabis container and entered into a data collection system.
2  (g) (Blank). No person who has been convicted of an
3  excluded offense may be a cultivation center agent.
4  (h) Registered cultivation centers are subject to random
5  inspection by the Illinois State Police.
6  (i) Registered cultivation centers are subject to random
7  inspections by the Department of Agriculture and the
8  Department of Public Health.
9  (j) A cultivation center agent shall notify local law
10  enforcement, the Illinois State Police, and the Department of
11  Agriculture within 24 hours of the discovery of any loss or
12  theft. Notification shall be made by phone or in-person, or by
13  written or electronic communication.
14  (k) A cultivation center shall comply with all State and
15  federal rules and regulations regarding the use of pesticides.
16  (Source: P.A. 101-363, eff. 8-9-19; 102-538, eff. 8-20-21.)
17  (410 ILCS 130/115)
18  Sec. 115. Registration of dispensing organizations.
19  (a) The Department of Financial and Professional
20  Regulation may issue up to 60 dispensing organization
21  registrations for operation. The Department of Financial and
22  Professional Regulation may not issue less than the 60
23  registrations if there are qualified applicants who have
24  applied with the Department of Financial and Professional
25  Regulation. The organizations shall be geographically

 

 

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1  dispersed throughout the State to allow all registered
2  qualifying patients reasonable proximity and access to a
3  dispensing organization.
4  (a-1) Beginning January 1, 2025, a dispensing organization
5  registered under this Act shall be deemed a dispensing
6  organization or a dispensary as defined in the Cannabis
7  Regulation and Tax Act. Dispensing organizations registered
8  under this Act have the same rights, privileges, duties, and
9  responsibilities as dispensing organizations licensed under
10  Section 15-36 of the Cannabis Regulation and Tax Act.
11  Dispensing organizations licensed under Section 15-36 of the
12  Cannabis Regulation and Tax Act may sell cannabis and
13  cannabis-infused products to purchasers over 21 years of age
14  and to qualifying patients, provisional patients, and
15  designated caregivers registered under this Act.
16  (a-5) The Department of Financial and Professional
17  Regulation may shall adopt rules to create a registration
18  process for Social Equity Justice Involved Applicants and
19  Qualifying Applicants, a streamlined application, and a Social
20  Equity Justice Involved Medical Lottery under Section 115.5 to
21  issue the remaining available 5 dispensing organization
22  registrations for operation. For purposes of this Section:
23  "Disproportionately Impacted Area" means a census tract or
24  comparable geographic area that satisfies the following
25  criteria as determined by the Department of Commerce and
26  Economic Opportunity, that:

 

 

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1  (1) meets at least one of the following criteria:
2  (A) the area has a poverty rate of at least 20%
3  according to the latest federal decennial census; or
4  (B) 75% or more of the children in the area
5  participate in the federal free lunch program
6  according to reported statistics from the State Board
7  of Education; or
8  (C) at least 20% of the households in the area
9  receive assistance under the Supplemental Nutrition
10  Assistance Program; or
11  (D) the area has an average unemployment rate, as
12  determined by the Illinois Department of Employment
13  Security, that is more than 120% of the national
14  unemployment average, as determined by the United
15  States Department of Labor, for a period of at least 2
16  consecutive calendar years preceding the date of the
17  application; and
18  (2) has high rates of arrest, conviction, and
19  incarceration related to sale, possession, use,
20  cultivation, manufacture, or transport of cannabis.
21  "Qualifying Applicant" means an applicant that: (i)
22  submitted an application pursuant to Section 15-30 of the
23  Cannabis Regulation and Tax Act that received at least 85% of
24  250 application points available under Section 15-30 of the
25  Cannabis Regulation and Tax Act as the applicant's final
26  score; (ii) received points at the conclusion of the scoring

 

 

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1  process for meeting the definition of a "Social Equity
2  Applicant" as set forth under the Cannabis Regulation and Tax
3  Act; and (iii) is an applicant that did not receive a
4  Conditional Adult Use Dispensing Organization License through
5  a Qualifying Applicant Lottery pursuant to Section 15-35 of
6  the Cannabis Regulation and Tax Act or any Tied Applicant
7  Lottery conducted under the Cannabis Regulation and Tax Act.
8  "Social Equity Justice Involved Applicant" means an
9  applicant that is an Illinois resident and one of the
10  following:
11  (1) an applicant with at least 51% ownership and
12  control by one or more individuals who have resided for at
13  least 5 of the preceding 10 years in a Disproportionately
14  Impacted Area;
15  (2) an applicant with at least 51% of ownership and
16  control by one or more individuals who have been arrested
17  for, convicted of, or adjudicated delinquent for any
18  offense that is eligible for expungement under subsection
19  (i) of Section 5.2 of the Criminal Identification Act; or
20  (3) an applicant with at least 51% ownership and
21  control by one or more members of an impacted family.
22  (b) A dispensing organization may only operate if it has
23  been issued a registration from the Department of Financial
24  and Professional Regulation. The Department of Financial and
25  Professional Regulation shall adopt rules establishing the
26  procedures for applicants for dispensing organizations.

 

 

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1  (c) When applying for a dispensing organization
2  registration, the applicant shall submit, at a minimum, the
3  following in accordance with Department of Financial and
4  Professional Regulation rules:
5  (1) a non-refundable application fee established by
6  rule;
7  (2) the proposed legal name of the dispensing
8  organization;
9  (3) the proposed physical address of the dispensing
10  organization;
11  (4) the name, address, and date of birth of each
12  principal officer and board member of the dispensing
13  organization, provided that all those individuals shall be
14  at least 21 years of age;
15  (5) (blank);
16  (6) (blank); and
17  (7) (blank).
18  (d) The Department of Financial and Professional
19  Regulation shall conduct a background check of the prospective
20  dispensing organization agents in order to carry out this
21  Section. The Department of State Police shall charge a fee for
22  conducting the criminal history record check, which shall be
23  deposited in the State Police Services Fund and shall not
24  exceed the actual cost of the record check. Each person
25  applying as a dispensing organization agent shall submit a
26  full set of fingerprints to the Department of State Police for

 

 

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1  the purpose of obtaining a State and federal criminal records
2  check. These fingerprints shall be checked against the
3  fingerprint records now and hereafter, to the extent allowed
4  by law, filed in the Department of State Police and Federal
5  Bureau of Investigation criminal history records databases.
6  The Department of State Police shall furnish, following
7  positive identification, all Illinois conviction information
8  to the Department of Financial and Professional Regulation.
9  (e) A dispensing organization must pay a registration fee
10  set by the Department of Financial and Professional
11  Regulation.
12  (f) An application for a medical cannabis dispensing
13  organization registration must be denied if any of the
14  following conditions are met:
15  (1) the applicant failed to submit the materials
16  required by this Section, including if the applicant's
17  plans do not satisfy the security, oversight, or
18  recordkeeping rules issued by the Department of Financial
19  and Professional Regulation;
20  (2) the applicant would not be in compliance with
21  local zoning rules issued in accordance with Section 140;
22  (3) the applicant does not meet the requirements of
23  Section 130;
24  (4) (blank) one or more of the prospective principal
25  officers or board members has been convicted of an
26  excluded offense;

 

 

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1  (5) one or more of the prospective principal officers
2  or board members has served as a principal officer or
3  board member for a registered medical cannabis dispensing
4  organization that has had its registration revoked; and
5  (6) one or more of the principal officers or board
6  members is under 21 years of age.
7  (Source: P.A. 101-363, eff. 8-9-19; 102-98, eff. 7-15-21.)
8  (410 ILCS 130/115.5)
9  Sec. 115.5. Social Equity Justice Involved Medical
10  Lottery.
11  (a) In this Section:
12  "By lot" has the same meaning as defined in Section 1-10 of
13  the Cannabis Regulation and Tax Act.
14  "Qualifying Applicant" has the same meaning as defined in
15  subsection (a-5) of Section 115.
16  "Social Equity Justice Involved Applicant" has the same
17  meaning as defined in subsection (a-5) of Section 115.
18  "Social Equity Justice Involved Medical Lottery" means the
19  process of issuing 5 available medical cannabis dispensing
20  organization registrations by lot, conducted by the Department
21  of Financial and Professional Regulation, for applicants who
22  are either: (i) Social Equity Justice Involved Applicants; or
23  (ii) Qualifying Applicants.
24  (b) The Department of Financial and Professional
25  Regulation may shall conduct a Social Equity Justice Involved

 

 

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1  Medical Lottery to award up to 5 medical cannabis dispensing
2  organization registrations by lot in accordance with Section
3  115.
4  (c) The Department of Financial and Professional
5  Regulation shall adopt rules through emergency rulemaking in
6  accordance with subsection (kk) of Section 5-45 of the
7  Illinois Administrative Procedure Act to create a registration
8  process, a streamlined application, an application fee not to
9  exceed $5,000 for purposes of this Section, and limits on the
10  number of entries into the Social Equity Justice Involved
11  Medical Lottery, as well as any other measures to reduce
12  barriers to enter the cannabis industry. The General Assembly
13  finds that the adoption of rules to regulate cannabis use is
14  deemed an emergency and necessary for the public interest,
15  safety, and welfare.
16  (d) Social Equity Justice Involved Applicants awarded a
17  registration under subsection (a-5) of Section 115 are
18  eligible to serve purchasers at the same site and a secondary
19  site under the Cannabis Regulation and Tax Act, subject to
20  application and inspection processes established by the
21  Department. The licenses issued under this Section shall be
22  valid for 2 years after the date of issuance and shall renew in
23  the manner proscribed by the Department.
24  (e) No applicant may be awarded more than one medical
25  cannabis dispensing organization registration at the
26  conclusion of the lottery conducted under this Section.

 

 

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1  (f) No individual may be listed as a principal officer of
2  more than one medical cannabis dispensing organization
3  registration awarded under this Section.
4  (Source: P.A. 102-98, eff. 7-15-21.)
5  (410 ILCS 130/120)
6  Sec. 120. Dispensing organization agent identification
7  card.
8  (a) Beginning January 1, 2025, a dispensing organization
9  agent registered under this Act shall be deemed to be a
10  dispensing organization agent under the Cannabis Regulation
11  and Tax Act. Dispensing organization agents registered under
12  this Act have the same rights, privileges, duties, and
13  responsibilities as dispensing organization agents licensed
14  under the Cannabis Regulation and Tax Act. Dispensing
15  organization agents are subject to the Cannabis Regulation and
16  Tax Act and any rules adopted under that Act. The Department of
17  Financial and Professional Regulation shall:
18  (1) verify the information contained in an application
19  or renewal for a dispensing organization agent
20  identification card submitted under this Act, and approve
21  or deny an application or renewal, within 30 days of
22  receiving a completed application or renewal application
23  and all supporting documentation required by rule;
24  (2) issue a dispensing organization agent
25  identification card to a qualifying agent within 15

 

 

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1  business days of approving the application or renewal;
2  (3) enter the registry identification number of the
3  dispensing organization where the agent works; and
4  (4) allow for an electronic application process, and
5  provide a confirmation by electronic or other methods that
6  an application has been submitted.
7  (b) The Department of Financial and Professional
8  Regulation shall, pursuant to Section 15-45 of the Cannabis
9  Regulation and Tax Act and subject to the agent meeting all
10  other licensing requirements, issue all dispensing
11  organization agents a new license number at the time of their
12  first renewal after the effective date of this amendatory Act
13  of the 103rd General Assembly. A dispensing agent must keep
14  his or her identification card visible at all times when on the
15  property of a dispensing organization.
16  (c) (Blank). The dispensing organization agent
17  identification cards shall contain the following:
18  (1) the name of the cardholder;
19  (2) the date of issuance and expiration date of the
20  dispensing organization agent identification cards;
21  (3) a random 10 digit alphanumeric identification
22  number containing at least 4 numbers and at least 4
23  letters; that is unique to the holder; and
24  (4) a photograph of the cardholder.
25  (d) (Blank). The dispensing organization agent
26  identification cards shall be immediately returned to the

 

 

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1  dispensing organization upon termination of employment.
2  (e) (Blank). Any card lost by a dispensing organization
3  agent shall be reported to the Illinois State Police and the
4  Department of Financial and Professional Regulation
5  immediately upon discovery of the loss.
6  (f) (Blank). An applicant shall be denied a dispensing
7  organization agent identification card if he or she has been
8  convicted of an excluded offense.
9  (Source: P.A. 98-122, eff. 1-1-14; 98-1172, eff. 1-12-15.)
10  (410 ILCS 130/130)
11  Sec. 130. Requirements; prohibitions; penalties;
12  dispensing organizations.
13  (a) Beginning January 1, 2025, a dispensing organization
14  registered under this Act shall be deemed to be a dispensing
15  organization or a dispensary as defined in the Cannabis
16  Regulation and Tax Act. Dispensing organizations registered
17  under this Act have the same rights, privileges, duties, and
18  responsibilities as a dispensing organization licensed under
19  Section 15-36 of the Cannabis Regulation and Tax Act.
20  Dispensing organizations are subject to the Cannabis
21  Regulation and Tax Act and any rules adopted under that Act.
22  The Department of Financial and Professional Regulation shall
23  implement the provisions of this Section by rule.
24  (b) (Blank). A dispensing organization shall maintain
25  operating documents which shall include procedures for the

 

 

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1  oversight of the registered dispensing organization and
2  procedures to ensure accurate recordkeeping.
3  (c) (Blank). A dispensing organization shall implement
4  appropriate security measures, as provided by rule, to deter
5  and prevent the theft of cannabis and unauthorized entrance
6  into areas containing cannabis.
7  (d) (Blank). A dispensing organization may not be located
8  within 1,000 feet of the property line of a pre-existing
9  public or private preschool or elementary or secondary school
10  or day care center, day care home, group day care home, or part
11  day child care facility. A registered dispensing organization
12  may not be located in a house, apartment, condominium, or an
13  area zoned for residential use. This subsection shall not
14  apply to any dispensing organizations registered on or after
15  July 1, 2019.
16  (e) (Blank). A dispensing organization is prohibited from
17  acquiring cannabis from anyone other than a cultivation
18  center, craft grower, processing organization, another
19  dispensing organization, or transporting organization licensed
20  or registered under this Act or the Cannabis Regulation and
21  Tax Act. A dispensing organization is prohibited from
22  obtaining cannabis from outside the State of Illinois.
23  (f) (Blank). A registered dispensing organization is
24  prohibited from dispensing cannabis for any purpose except to
25  assist registered qualifying patients with the medical use of
26  cannabis directly or through the qualifying patients'

 

 

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1  designated caregivers.
2  (g) (Blank). The area in a dispensing organization where
3  medical cannabis is stored can only be accessed by dispensing
4  organization agents working for the dispensing organization,
5  Department of Financial and Professional Regulation staff
6  performing inspections, law enforcement or other emergency
7  personnel, and contractors working on jobs unrelated to
8  medical cannabis, such as installing or maintaining security
9  devices or performing electrical wiring.
10  (h) (Blank). A dispensing organization may not dispense
11  more than 2.5 ounces of cannabis to a registered qualifying
12  patient, directly or via a designated caregiver, in any 14-day
13  period unless the qualifying patient has a Department of
14  Public Health-approved quantity waiver. Any Department of
15  Public Health-approved quantity waiver process must be made
16  available to qualified veterans.
17  (i) (Blank). Except as provided in subsection (i-5),
18  before medical cannabis may be dispensed to a designated
19  caregiver or a registered qualifying patient, a dispensing
20  organization agent must determine that the individual is a
21  current cardholder in the verification system and must verify
22  each of the following:
23  (1) that the registry identification card presented to
24  the registered dispensing organization is valid;
25  (2) that the person presenting the card is the person
26  identified on the registry identification card presented

 

 

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1  to the dispensing organization agent;
2  (3) (blank); and
3  (4) that the registered qualifying patient has not
4  exceeded his or her adequate supply.
5  (i-5) (Blank). A dispensing organization may dispense
6  medical cannabis to an Opioid Alternative Pilot Program
7  participant under Section 62 and to a person presenting proof
8  of provisional registration under Section 55. Before
9  dispensing medical cannabis, the dispensing organization shall
10  comply with the requirements of Section 62 or Section 55,
11  whichever is applicable, and verify the following:
12  (1) that the written certification presented to the
13  registered dispensing organization is valid and an
14  original document;
15  (2) that the person presenting the written
16  certification is the person identified on the written
17  certification; and
18  (3) that the participant has not exceeded his or her
19  adequate supply.
20  (j) (Blank). Dispensing organizations shall ensure
21  compliance with this limitation by maintaining internal,
22  confidential records that include records specifying how much
23  medical cannabis is dispensed to the registered qualifying
24  patient and whether it was dispensed directly to the
25  registered qualifying patient or to the designated caregiver.
26  Each entry must include the date and time the cannabis was

 

 

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1  dispensed. Additional recordkeeping requirements may be set by
2  rule.
3  (k) (Blank). The health care professional-patient
4  privilege as set forth by Section 8-802 of the Code of Civil
5  Procedure shall apply between a qualifying patient and a
6  registered dispensing organization and its agents with respect
7  to communications and records concerning qualifying patients'
8  debilitating conditions.
9  (l) (Blank). A dispensing organization may not permit any
10  person to consume cannabis on the property of a medical
11  cannabis organization.
12  (m) (Blank). A dispensing organization may not share
13  office space with or refer patients to a certifying health
14  care professional.
15  (n) (Blank). Notwithstanding any other criminal penalties
16  related to the unlawful possession of cannabis, the Department
17  of Financial and Professional Regulation may revoke, suspend,
18  place on probation, reprimand, refuse to issue or renew, or
19  take any other disciplinary or non-disciplinary action as the
20  Department of Financial and Professional Regulation may deem
21  proper with regard to the registration of any person issued
22  under this Act to operate a dispensing organization or act as a
23  dispensing organization agent, including imposing fines not to
24  exceed $10,000 for each violation, for any violations of this
25  Act and rules adopted in accordance with this Act. The
26  procedures for disciplining a registered dispensing

 

 

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1  organization shall be determined by rule. All final
2  administrative decisions of the Department of Financial and
3  Professional Regulation are subject to judicial review under
4  the Administrative Review Law and its rules. The term
5  "administrative decision" is defined as in Section 3-101 of
6  the Code of Civil Procedure.
7  (o) (Blank). Dispensing organizations are subject to
8  random inspection and cannabis testing by the Department of
9  Financial and Professional Regulation, the Illinois State
10  Police, the Department of Revenue, the Department of Public
11  Health, the Department of Agriculture, or as provided by rule.
12  (p) (Blank). The Department of Financial and Professional
13  Regulation shall adopt rules permitting returns, and potential
14  refunds, for damaged or inadequate products.
15  (q) (Blank). The Department of Financial and Professional
16  Regulation may issue nondisciplinary citations for minor
17  violations which may be accompanied by a civil penalty not to
18  exceed $10,000 per violation. The penalty shall be a civil
19  penalty or other condition as established by rule. The
20  citation shall be issued to the licensee and shall contain the
21  licensee's name, address, and license number, a brief factual
22  statement, the Sections of the law or rule allegedly violated,
23  and the civil penalty, if any, imposed. The citation must
24  clearly state that the licensee may choose, in lieu of
25  accepting the citation, to request a hearing. If the licensee
26  does not dispute the matter in the citation with the

 

 

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1  Department of Financial and Professional Regulation within 30
2  days after the citation is served, then the citation shall
3  become final and shall not be subject to appeal.
4  (Source: P.A. 101-363, eff. 8-9-19; 102-98, eff. 7-15-21.)
5  (410 ILCS 130/145)
6  Sec. 145. Confidentiality.
7  (a) The following information received and records kept by
8  the Department of Public Health, Department of Financial and
9  Professional Regulation, Department of Agriculture, the
10  Department of Commerce and Economic Opportunity, the Office of
11  Executive Inspector General, or Illinois State Police for
12  purposes of administering this Act are subject to all
13  applicable federal privacy laws, confidential, and exempt from
14  the Freedom of Information Act, and not subject to disclosure
15  to any individual or public or private entity, except as
16  necessary for authorized employees of those authorized
17  agencies to perform official duties under this Act and except
18  as necessary to those involved in enforcing the State
19  Officials and Employees Ethics Act, and the following
20  information received and records kept by Department of Public
21  Health, Department of Agriculture, Department of Commerce and
22  Economic Opportunity, Department of Financial and Professional
23  Regulation, Office of Executive Inspector General, and
24  Illinois State Police, excluding any existing or non-existing
25  Illinois or national criminal history record information as

 

 

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1  defined in subsection (d), may be disclosed to each other upon
2  request:
3  (1) Applications and renewals, their contents, and
4  supporting information submitted by qualifying patients
5  and designated caregivers, including information regarding
6  their designated caregivers and certifying health care
7  professionals.
8  (2) Applications and renewals, their contents, and
9  supporting information submitted by or on behalf of
10  cultivation centers and dispensing organizations in
11  compliance with this Act, including their physical
12  addresses. This does not preclude the release of ownership
13  information of cannabis business establishment licenses.
14  (3) The individual names and other information
15  identifying persons to whom the Department of Public
16  Health has issued registry identification cards.
17  (4) Any dispensing information required to be kept
18  under Section 135, Section 150, or Department of Public
19  Health, Department of Agriculture, or Department of
20  Financial and Professional Regulation rules shall identify
21  cardholders and registered cultivation centers by their
22  registry identification numbers and medical cannabis
23  dispensing organizations by their registration number and
24  not contain names or other personally identifying
25  information.
26  (5) All medical records provided to the Department of

 

 

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1  Public Health in connection with an application for a
2  registry card.
3  (b) Nothing in this Section precludes the following:
4  (1) Department of Agriculture, Department of Financial
5  and Professional Regulation, or Public Health employees
6  may notify law enforcement about falsified or fraudulent
7  information submitted to the Departments if the employee
8  who suspects that falsified or fraudulent information has
9  been submitted conferred with his or her supervisor and
10  both agree that circumstances exist that warrant
11  reporting.
12  (2) If the employee conferred with his or her
13  supervisor and both agree that circumstances exist that
14  warrant reporting, Department of Public Health employees
15  may notify the Department of Financial and Professional
16  Regulation if there is reasonable cause to believe a
17  certifying health care professional:
18  (A) issued a written certification without a bona
19  fide health care professional-patient relationship
20  under this Act;
21  (B) issued a written certification to a person who
22  was not under the certifying health care
23  professional's care for the debilitating medical
24  condition; or
25  (C) failed to abide by the acceptable and
26  prevailing standard of care when evaluating a

 

 

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1  patient's medical condition.
2  (3) The Department of Public Health, Department of
3  Agriculture, and Department of Financial and Professional
4  Regulation may notify State or local law enforcement about
5  apparent criminal violations of this Act if the employee
6  who suspects the offense has conferred with his or her
7  supervisor and both agree that circumstances exist that
8  warrant reporting.
9  (4) Medical cannabis cultivation center agents and
10  medical cannabis dispensing organizations may notify the
11  Department of Public Health, Department of Financial and
12  Professional Regulation, or Department of Agriculture of a
13  suspected violation or attempted violation of this Act or
14  the rules issued under it.
15  (5) Each Department may verify registry identification
16  cards under Section 150.
17  (6) The submission of the report to the General
18  Assembly under Section 160.
19  (b-5) Each Department responsible for licensure under this
20  Act shall publish on the Department's website a list of the
21  ownership information of cannabis business establishment
22  licensees under the Department's jurisdiction. The list shall
23  include, but shall not be limited to, the name of the person or
24  entity holding each cannabis business establishment license
25  and the address at which the entity is operating under this
26  Act. This list shall be published and updated monthly.

 

 

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1  (c) Except for any ownership information released pursuant
2  to subsection (b-5) or as otherwise authorized or required by
3  law, it is a Class B misdemeanor with a $1,000 fine for any
4  person, including an employee or official of the Department of
5  Public Health, Department of Financial and Professional
6  Regulation, or Department of Agriculture or another State
7  agency or local government, to breach the confidentiality of
8  information obtained under this Act.
9  (d) The Department of Public Health, the Department of
10  Agriculture, the Illinois State Police, and the Department of
11  Financial and Professional Regulation shall not share or
12  disclose any existing or non-existing Illinois or national
13  criminal history record information. For the purposes of this
14  Section, "any existing or non-existing Illinois or national
15  criminal history record information" means any Illinois or
16  national criminal history record information, including but
17  not limited to the lack of or non-existence of these records.
18  (Source: P.A. 101-363, eff. 8-9-19; 102-98, eff. 7-15-21;
19  102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)
20  (410 ILCS 130/150)
21  Sec. 150. Registry identification and registration
22  certificate verification.
23  (a) The Department of Public Health shall maintain a
24  confidential list of the persons to whom the Department of
25  Public Health has issued registry identification cards and

 

 

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1  their addresses, phone numbers, and registry identification
2  numbers. This confidential list may not be combined or linked
3  in any manner with any other list or database except as
4  provided in this Section.
5  (b) Within 180 days of the effective date of this Act, the
6  Department of Public Health, Department of Financial and
7  Professional Regulation, and Department of Agriculture shall
8  together establish a computerized database or verification
9  system. The database or verification system must allow law
10  enforcement personnel and medical cannabis dispensary
11  organization agents to determine whether or not the
12  identification number corresponds with a current, valid
13  registry identification card. The system shall only disclose
14  whether the identification card is valid, whether the
15  cardholder is a registered qualifying patient, provisional
16  patient, or a registered designated caregiver, the registry
17  identification number of the registered medical cannabis
18  dispensing organization designated to serve the registered
19  qualifying patient who holds the card, and the registry
20  identification number of the patient who is assisted by a
21  registered designated caregiver who holds the card. The
22  Department of Public Health, the Department of Agriculture,
23  the Illinois State Police, and the Department of Financial and
24  Professional Regulation shall not share or disclose any
25  existing or non-existing Illinois or national criminal history
26  record information. Notwithstanding any other requirements

 

 

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1  established by this subsection, the Department of Public
2  Health shall issue registry cards to qualifying patients, the
3  Department of Financial and Professional Regulation may issue
4  registration to medical cannabis dispensing organizations for
5  the period during which the database is being established, and
6  the Department of Agriculture may issue registration cards to
7  medical cannabis cultivation organizations for the period
8  during which the database is being established.
9  (c) For the purposes of this Section, "any existing or
10  non-existing Illinois or national criminal history record
11  information" means any Illinois or national criminal history
12  record information, including but not limited to the lack of
13  or non-existence of these records.
14  (Source: P.A. 102-538, eff. 8-20-21.)
15  (410 ILCS 130/165)
16  Sec. 165. Administrative rulemaking.
17  (a) Not later than 120 days after the effective date of
18  this Act, the Department of Public Health, Department of
19  Agriculture, and the Department of Financial and Professional
20  Regulation shall develop rules in accordance to their
21  responsibilities under this Act and file those rules with the
22  Joint Committee on Administrative Rules.
23  (b) The Department of Public Health rules shall address,
24  but not be limited to, the following:
25  (1) fees for applications for registration as a

 

 

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1  qualified patient or caregiver;
2  (2) establishing the form and content of registration
3  and renewal applications submitted under this Act,
4  including a standard form for written certifications;
5  (3) governing the manner in which it shall consider
6  applications for and renewals of registry identification
7  cards;
8  (4) the manufacture of medical cannabis-infused
9  products;
10  (5) fees for the application and renewal of registry
11  identification cards. Fee revenue may be offset or
12  supplemented by private donations;
13  (6) any other matters as are necessary for the fair,
14  impartial, stringent, and comprehensive administration of
15  this Act; and
16  (7) reasonable rules concerning the medical use of
17  cannabis at a nursing care institution, hospice, assisted
18  living center, assisted living facility, assisted living
19  home, residential care institution, or adult day health
20  care facility.
21  (c) The Department of Agriculture rules shall address, but
22  not be limited to the following related to registered
23  cultivation centers, with the goal of protecting against
24  diversion and theft, without imposing an undue burden on the
25  registered cultivation centers:
26  (1) oversight requirements for registered cultivation

 

 

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1  centers;
2  (2) recordkeeping requirements for registered
3  cultivation centers;
4  (3) security requirements for registered cultivation
5  centers, which shall include that each registered
6  cultivation center location must be protected by a fully
7  operational security alarm system;
8  (4) rules and standards for what constitutes an
9  enclosed, locked facility under this Act;
10  (5) procedures for suspending or revoking the
11  registration certificates or registry identification cards
12  of registered cultivation centers and their agents that
13  commit violations of the provisions of this Act or the
14  rules adopted under this Section;
15  (6) rules concerning the intrastate transportation of
16  medical cannabis from a cultivation center to a dispensing
17  organization;
18  (7) standards concerning the testing, quality, and
19  cultivation of medical cannabis;
20  (8) any other matters as are necessary for the fair,
21  impartial, stringent, and comprehensive administration of
22  this Act;
23  (9) application and renewal fees for cultivation
24  center agents; and
25  (10) application, renewal, and registration fees for
26  cultivation centers.

 

 

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1  (d) Beginning January 1, 2025, a dispensing organization
2  registered under this Act shall be deemed to be a dispensing
3  organization or a dispensary under the Cannabis Regulation and
4  Tax Act. Dispensing organizations registered under this Act
5  have the same rights, privileges, duties, and responsibilities
6  as a dispensing organization licensed under Section 15-36 of
7  the Cannabis Regulation and Tax Act. Dispensing organizations
8  are subject to the Cannabis Regulation and Tax Act and any
9  rules adopted under that Act. The Department of Financial and
10  Professional Regulation rules shall address, but not be
11  limited to the following matters related to registered
12  dispensing organizations, with the goal of protecting against
13  diversion and theft, without imposing an undue burden on the
14  registered dispensing organizations or compromising the
15  confidentiality of cardholders:
16  (1) application and renewal and registration fees for
17  dispensing organizations and dispensing organizations
18  agents;
19  (2) medical cannabis dispensing agent-in-charge
20  oversight requirements for dispensing organizations;
21  (3) recordkeeping requirements for dispensing
22  organizations;
23  (4) security requirements for medical cannabis
24  dispensing organizations, which shall include that each
25  registered dispensing organization location must be
26  protected by a fully operational security alarm system;

 

 

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1  (5) procedures for suspending or revoking the
2  registrations of dispensing organizations and dispensing
3  organization agents that commit violations of the
4  provisions of this Act or the rules adopted under this
5  Act;
6  (6) application and renewal fees for dispensing
7  organizations; and
8  (7) application and renewal fees for dispensing
9  organization agents.
10  (e) The Department of Public Health may establish a
11  sliding scale of patient application and renewal fees based
12  upon a qualifying patient's household income. The Department
13  of Public health may accept donations from private sources to
14  reduce application and renewal fees, and registry
15  identification card fees shall include an additional fee set
16  by rule which shall be used to develop and disseminate
17  educational information about the health risks associated with
18  the abuse of cannabis and prescription medications.
19  (f) During the rule-making process, each Department shall
20  make a good faith effort to consult with stakeholders
21  identified in the rule-making analysis as being impacted by
22  the rules, including patients or a representative of an
23  organization advocating on behalf of patients.
24  (g) The Department of Public Health shall develop and
25  disseminate educational information about the health risks
26  associated with the abuse of cannabis and prescription

 

 

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1  medications.
2  (Source: P.A. 98-122, eff. 1-1-14; 98-1172, eff. 1-12-15.)
3  (410 ILCS 130/170)
4  Sec. 170. Enforcement of this Act.
5  (a) If a Department fails to adopt rules to implement this
6  Act within the times provided for in this Act, any citizen may
7  commence a mandamus action in the Circuit Court to compel the
8  Departments to perform the actions mandated under the
9  provisions of this Act.
10  (b) If the Department of Public Health or the , Department
11  of Agriculture, or Department of Financial and Professional
12  Regulation fails to issue a valid identification card in
13  response to a valid application or renewal submitted under
14  this Act or fails to issue a verbal or written notice of denial
15  of the application within 30 days of its submission, the
16  identification card is deemed granted, and a copy of the
17  registry identification application, including a valid written
18  certification in the case of patients, or renewal shall be
19  deemed a valid registry identification card.
20  (c) Authorized employees of State or local law enforcement
21  agencies shall immediately notify the Department of Public
22  Health when any person in possession of a registry
23  identification card has been determined by a court of law to
24  have willfully violated the provisions of this Act or has pled
25  guilty to the offense.

 

 

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1  (Source: P.A. 98-122, eff. 1-1-14.)
2  (410 ILCS 130/180)
3  Sec. 180. Destruction of medical cannabis.
4  (a) All cannabis byproduct, scrap, and harvested cannabis
5  not intended for distribution to a medical cannabis
6  organization must be destroyed and disposed of pursuant to
7  State law. Documentation of destruction and disposal shall be
8  retained at the cultivation center for a period of not less
9  than 5 years.
10  (b) A cultivation center shall prior to the destruction,
11  notify the Department of Agriculture and the Illinois State
12  Police.
13  (c) The cultivation center shall keep record of the date
14  of destruction and how much was destroyed.
15  (d) (Blank). A dispensary organization shall destroy all
16  cannabis, including cannabis-infused products, that are not
17  sold to registered qualifying patients. Documentation of
18  destruction and disposal shall be retained at the dispensary
19  organization for a period of not less than 5 years.
20  (e) (Blank). A dispensary organization shall prior to the
21  destruction, notify the Department of Financial and
22  Professional Regulation and the Illinois State Police.
23  (Source: P.A. 102-538, eff. 8-20-21.)
24  (410 ILCS 130/200)

 

 

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1  Sec. 200. Tax imposed.
2  (a) Beginning on the effective date of this Act and until
3  January 1, 2025, a tax is imposed upon the privilege of
4  cultivating medical cannabis at a rate of 7% of the sales price
5  per ounce. Beginning on January 1, 2025, a tax is imposed upon
6  the privilege of cultivating medical cannabis at the rate of
7  7% of the gross receipts from the first sale of medical
8  cannabis by a cultivator. The sale of any product that
9  contains any amount of medical cannabis or any derivative
10  thereof is subject to the tax under this Section on the full
11  selling price of the product. The Department of Revenue may
12  determine the selling price of the medical cannabis when a
13  value is not established for the medical cannabis and either
14  (i) the seller and purchaser are affiliated persons or (ii)
15  the sale and purchase of medical cannabis is not an arm's
16  length transaction. The value determined by the Department
17  shall be commensurate with the actual price received for
18  products of like quality, character, and use in the area. If
19  there are no sales of medical cannabis of like quality,
20  character, and use in the same area, then the Department shall
21  establish a reasonable value based on sales of products of
22  like quality, character, and use in other areas of the State,
23  taking into consideration any other relevant factors. The
24  proceeds from this tax shall be deposited into the
25  Compassionate Use of Medical Cannabis Fund created under the
26  Compassionate Use of Medical Cannabis Program Act. This tax

 

 

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1  shall be paid by a cultivation center and is not the
2  responsibility of a dispensing organization or a qualifying
3  patient.
4  (b) The tax imposed under this Act shall be in addition to
5  all other occupation or privilege taxes imposed by the State
6  of Illinois or by any municipal corporation or political
7  subdivision thereof.
8  (Source: P.A. 101-363, eff. 8-9-19.)
9  (410 ILCS 130/210)
10  Sec. 210. Returns.
11  (a) This subsection (a) applies to returns due on or
12  before June 25, 2019 (the effective date of Public Act 101-27)
13  this amendatory Act of the 101st General Assembly. On or
14  before the twentieth day of each calendar month, every person
15  subject to the tax imposed under this Law during the preceding
16  calendar month shall file a return with the Department,
17  stating:
18  (1) The name of the taxpayer;
19  (2) The number of ounces of medical cannabis sold to a
20  dispensing organization or a registered qualifying patient
21  during the preceding calendar month;
22  (3) The amount of tax due;
23  (4) The signature of the taxpayer; and
24  (5) Such other reasonable information as the
25  Department may require.

 

 

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1  If a taxpayer fails to sign a return within 30 days after
2  the proper notice and demand for signature by the Department,
3  the return shall be considered valid and any amount shown to be
4  due on the return shall be deemed assessed.
5  The taxpayer shall remit the amount of the tax due to the
6  Department at the time the taxpayer files his or her return.
7  (b) Beginning on June 25, 2019 (the effective date of
8  Public Act 101-27) this amendatory Act of the 101st General
9  Assembly, Section 60-20 65-20 of the Cannabis Regulation and
10  Tax Act shall apply to returns filed and taxes paid under this
11  Act to the same extent as if those provisions were set forth in
12  full in this Section.
13  (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
14  (410 ILCS 130/125 rep.)
15  Section 30. The Compassionate Use of Medical Cannabis
16  Program Act is amended by repealing Section 125.
17  Section 35. The Cannabis Regulation and Tax Act is amended
18  by changing Sections 1-10, 10-10, 15-15, 15-20, 15-25, 15-35,
19  15-35.10, 15-36, 15-70, 15-85, 15-100, 55-30, and 55-65 and
20  adding Section 15-13, 15-17, 15-23, 15-24 as follows:
21  (410 ILCS 705/1-10)
22  Sec. 1-10. Definitions. In this Act:
23  "Adequate medical supply" means:

 

 

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1  (1) 2.5 ounces of usable cannabis during a period of
2  14 days and that is derived solely from an intrastate
3  source.
4  (2) Subject to the rules of the Department of Public
5  Health, a patient may apply for a waiver where a
6  certifying health care professional provides a substantial
7  medical basis in a signed, written statement asserting
8  that, based on the patient's medical history, in the
9  certifying health care professional's professional
10  judgment, 2.5 ounces is an insufficient adequate medical
11  supply for a 14-day period to properly alleviate the
12  patient's debilitating medical condition or symptoms
13  associated with the debilitating medical condition.
14  (3) This subsection may not be construed to authorize
15  the possession of more than 2.5 ounces at any time without
16  authority from the Department of Public Health.
17  (4) The pre-mixed weight of medical cannabis used in
18  making a cannabis infused product shall apply toward the
19  limit on the total amount of medical cannabis a registered
20  qualifying patient may possess at any one time.
21  "Adult Use Cultivation Center License" means a license
22  issued by the Department of Agriculture that permits a person
23  to act as a cultivation center under this Act and any
24  administrative rule made in furtherance of this Act.
25  "Adult Use Dispensing Organization License" means a
26  license issued by the Department of Financial and Professional

 

 

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1  Regulation that permits a person to act as a dispensing
2  organization under this Act and any administrative rule made
3  in furtherance of this Act.
4  "Advertise" means to engage in promotional activities
5  including, but not limited to: newspaper, radio, Internet and
6  electronic media, and television advertising; the distribution
7  of fliers and circulars; billboard advertising; and the
8  display of window and interior signs. "Advertise" does not
9  mean exterior signage displaying only the name of the licensed
10  cannabis business establishment.
11  "Application points" means the number of points a
12  Dispensary Applicant receives on an application for a
13  Conditional Adult Use Dispensing Organization License.
14  "BLS Region" means a region in Illinois used by the United
15  States Bureau of Labor Statistics to gather and categorize
16  certain employment and wage data. The 17 such regions in
17  Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
18  Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
19  Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
20  Rockford, St. Louis, Springfield, Northwest Illinois
21  nonmetropolitan area, West Central Illinois nonmetropolitan
22  area, East Central Illinois nonmetropolitan area, and South
23  Illinois nonmetropolitan area.
24  (1) Bloomington (DeWitt County; McLean County),
25  (2) Cape Girardeau (Alexander County),
26  (3) Carbondale-Marion (Jackson County; Williamson

 

 

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1  County),
2  (4) Champaign-Urbana (Champaign County; Ford County;
3  Piatt County),
4  (5) Chicago-Naperville-Elgin (Cook County; DeKalb
5  County; DuPage County; Grundy County; Kane County; Kendall
6  County; Lake County; McHenry County; Will County),
7  (6) Danville (Vermilion County),
8  (7) Davenport-Moline-Rock Island (Henry County; Mercer
9  County; Rock Island County),
10  (8) Decatur (Macon County),
11  (9) Kankakee (Kankakee County),
12  (10) Peoria (Marshall County; Peoria County; Stark
13  County; Tazewell County; Woodford County),
14  (11) Rockford (Boone County; Winnebago County),
15  (12) St. Louis (Bond County; Calhoun County; Clinton
16  County; Jersey County; Madison County; Macoupin County;
17  Monroe County; St. Clair County),
18  (13) Springfield (Menard County; Sangamon County),
19  (14) Northwest Illinois nonmetropolitan area (Bureau
20  County; Carroll County; Jo Daviess County; LaSalle County;
21  Lee County; Ogle County; Putnam County; Stephenson County;
22  Whiteside County),
23  (15) West Central Illinois nonmetropolitan area (Adams
24  County; Brown County; Cass County; Christian County;
25  Fulton County; Greene County; Hancock County; Henderson
26  County; Knox County; Livingston County; Logan County;

 

 

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1  Mason County; McDonough County; Montgomery County; Morgan
2  County; Moultrie County; Pike County; Schuyler County;
3  Scott County; Shelby County; Warren County),
4  (16) East Central Illinois nonmetropolitan area (Clark
5  County; Clay County; Coles County; Crawford County;
6  Cumberland County; Douglas County; Edgar County; Effingham
7  County; Fayette County; Iroquois County; Jasper County;
8  Lawrence County; Marion County; Richland County), and
9  (17) South Illinois nonmetropolitan area (Edwards
10  County; Franklin County; Gallatin County; Hamilton County;
11  Hardin County; Jefferson County; Johnson County; Massac
12  County; Perry County; Pope County; Pulaski County;
13  Randolph County; Saline County; Union County; Wabash
14  County; Wayne County; White County).
15  "By lot" means a randomized method of choosing between 2
16  or more Eligible Tied Applicants or 2 or more Qualifying
17  Applicants.
18  "Cannabis" means marijuana, hashish, and other substances
19  that are identified as including any parts of the plant
20  Cannabis sativa and including derivatives or subspecies, such
21  as indica, of all strains of cannabis, whether growing or not;
22  the seeds thereof, the resin extracted from any part of the
23  plant; and any compound, manufacture, salt, derivative,
24  mixture, or preparation of the plant, its seeds, or resin,
25  including tetrahydrocannabinol (THC) and all other naturally
26  produced cannabinol derivatives, whether produced directly or

 

 

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1  indirectly by extraction; however, "cannabis" does not include
2  the mature stalks of the plant, fiber produced from the
3  stalks, oil or cake made from the seeds of the plant, any other
4  compound, manufacture, salt, derivative, mixture, or
5  preparation of the mature stalks (except the resin extracted
6  from it), fiber, oil or cake, or the sterilized seed of the
7  plant that is incapable of germination. "Cannabis" does not
8  include industrial hemp as defined and authorized under the
9  Industrial Hemp Act. "Cannabis" also means cannabis flower,
10  concentrate, and cannabis-infused products.
11  "Cannabis business establishment" means a cultivation
12  center, craft grower, processing organization, infuser
13  organization, dispensing organization, or transporting
14  organization.
15  "Cannabis concentrate" means a product derived from
16  cannabis that is produced by extracting cannabinoids,
17  including tetrahydrocannabinol (THC), from the plant through
18  the use of propylene glycol, glycerin, butter, olive oil, or
19  other typical cooking fats; water, ice, or dry ice; or butane,
20  propane, CO2, ethanol, or isopropanol and with the intended
21  use of smoking or making a cannabis-infused product. The use
22  of any other solvent is expressly prohibited unless and until
23  it is approved by the Department of Agriculture.
24  "Cannabis container" means a sealed or resealable,
25  traceable, container, or package used for the purpose of
26  containment of cannabis or cannabis-infused product during

 

 

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1  transportation.
2  "Cannabis flower" means marijuana, hashish, and other
3  substances that are identified as including any parts of the
4  plant Cannabis sativa and including derivatives or subspecies,
5  such as indica, of all strains of cannabis; including raw
6  kief, leaves, and buds, but not resin that has been extracted
7  from any part of such plant; nor any compound, manufacture,
8  salt, derivative, mixture, or preparation of such plant, its
9  seeds, or resin.
10  "Cannabis-infused product" means a beverage, food, oil,
11  ointment, tincture, topical formulation, or another product
12  containing cannabis or cannabis concentrate that is not
13  intended to be smoked.
14  "Cannabis paraphernalia" means equipment, products, or
15  materials intended to be used for planting, propagating,
16  cultivating, growing, harvesting, manufacturing, producing,
17  processing, preparing, testing, analyzing, packaging,
18  repackaging, storing, containing, concealing, ingesting, or
19  otherwise introducing cannabis into the human body.
20  "Cannabis plant monitoring system" or "plant monitoring
21  system" means a system that includes, but is not limited to,
22  testing and data collection established and maintained by the
23  cultivation center, craft grower, or processing organization
24  and that is available to the Department of Revenue, the
25  Department of Agriculture, the Department of Financial and
26  Professional Regulation, and the Illinois State Police for the

 

 

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1  purposes of documenting each cannabis plant and monitoring
2  plant development throughout the life cycle of a cannabis
3  plant cultivated for the intended use by a customer from seed
4  planting to final packaging.
5  "Cannabis testing facility" means an entity registered by
6  the Department of Agriculture to test cannabis for potency and
7  contaminants.
8  "Clone" means a plant section from a female cannabis plant
9  not yet rootbound, growing in a water solution or other
10  propagation matrix, that is capable of developing into a new
11  plant.
12  "Community College Cannabis Vocational Training Pilot
13  Program faculty participant" means a person who is 21 years of
14  age or older, licensed by the Department of Agriculture, and
15  is employed or contracted by an Illinois community college to
16  provide student instruction using cannabis plants at an
17  Illinois Community College.
18  "Community College Cannabis Vocational Training Pilot
19  Program faculty participant Agent Identification Card" means a
20  document issued by the Department of Agriculture that
21  identifies a person as a Community College Cannabis Vocational
22  Training Pilot Program faculty participant.
23  "Conditional Adult Use Dispensing Organization License"
24  means a contingent license awarded to applicants for an Adult
25  Use Dispensing Organization License that reserves the right to
26  an Adult Use Dispensing Organization License if the applicant

 

 

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1  meets certain conditions described in this Act, but does not
2  entitle the recipient to begin purchasing or selling cannabis
3  or cannabis-infused products.
4  "Conditional Adult Use Cultivation Center License" means a
5  license awarded to top-scoring applicants for an Adult Use
6  Cultivation Center License that reserves the right to an Adult
7  Use Cultivation Center License if the applicant meets certain
8  conditions as determined by the Department of Agriculture by
9  rule, but does not entitle the recipient to begin growing,
10  processing, or selling cannabis or cannabis-infused products.
11  "Craft grower" means a facility operated by an
12  organization or business that is licensed by the Department of
13  Agriculture to cultivate, dry, cure, and package cannabis and
14  perform other necessary activities to make cannabis available
15  for sale at a dispensing organization or use at a processing
16  organization. A craft grower may contain up to 5,000 square
17  feet of canopy space on its premises for plants in the
18  flowering state. The Department of Agriculture may authorize
19  an increase or decrease of flowering stage cultivation space
20  in increments of 3,000 square feet by rule based on market
21  need, craft grower capacity, and the licensee's history of
22  compliance or noncompliance, with a maximum space of 14,000
23  square feet for cultivating plants in the flowering stage,
24  which must be cultivated in all stages of growth in an enclosed
25  and secure area. A craft grower may share premises with a
26  processing organization or a dispensing organization, or both,

 

 

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1  provided each licensee stores currency and cannabis or
2  cannabis-infused products in a separate secured vault to which
3  the other licensee does not have access or all licensees
4  sharing a vault share more than 50% of the same ownership.
5  "Craft grower agent" means a principal officer, board
6  member, employee, or other agent of a craft grower who is 21
7  years of age or older.
8  "Craft Grower Agent Identification Card" means a document
9  issued by the Department of Agriculture that identifies a
10  person as a craft grower agent.
11  "Cultivation center" means a facility operated by an
12  organization or business that is licensed by the Department of
13  Agriculture to cultivate, process, transport (unless otherwise
14  limited by this Act), and perform other necessary activities
15  to provide cannabis and cannabis-infused products to cannabis
16  business establishments.
17  "Cultivation center agent" means a principal officer,
18  board member, employee, or other agent of a cultivation center
19  who is 21 years of age or older.
20  "Cultivation Center Agent Identification Card" means a
21  document issued by the Department of Agriculture that
22  identifies a person as a cultivation center agent.
23  "Currency" means currency and coin of the United States.
24  "Designated caregiver" means a person who:
25  (1) is at least 21 years of age;
26  (2) has agreed to assist with a patient's medical use

 

 

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1  of cannabis;
2  (3) has not been convicted of an excluded offense; and
3  (4) assists no more than one registered qualifying
4  patient with his or her medical use of cannabis.
5  Beginning January 1, 2025, all "designated caregivers"
6  registered under the Compassionate Use of Medical Program Act
7  shall be permitted to perform his or her duties at any licensed
8  dispensary or dispensing organization licensed by the
9  Department of Financial and Professional Regulation pursuant
10  to the Cannabis Regulation and Tax Act.
11  "Dispensary" means a facility operated by a dispensing
12  organization at which activities licensed by this Act may
13  occur.
14  "Dispensary Applicant" means the Proposed Dispensing
15  Organization Name as stated on an application for a
16  Conditional Adult Use Dispensing Organization License.
17  "Dispensing organization" or "dispensary" means a facility
18  operated by an organization or business that is licensed by
19  the Department of Financial and Professional Regulation to
20  acquire cannabis from a cultivation center, craft grower,
21  processing organization, or another dispensary for the purpose
22  of selling or dispensing cannabis, cannabis-infused products,
23  cannabis seeds, paraphernalia, or related supplies under this
24  Act to purchasers or to qualified registered medical cannabis
25  patients and designated caregivers and provisional patients
26  registered under the Compassionate Use of Medical Cannabis

 

 

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1  Program Act. As used in this Act, "dispensing organization" or
2  "dispensary" includes those medical cannabis dispensing
3  organizations as licensed under the Compassionate Use of
4  Medical Program Act includes a registered medical cannabis
5  organization as defined in the Compassionate Use of Medical
6  Cannabis Program Act or its successor Act that has obtained an
7  Early Approval Adult Use Dispensing Organization License.
8  "Dispensing organization agent" means a principal officer,
9  employee, or agent of a dispensing organization who is 21
10  years of age or older.
11  "Dispensing organization agent identification card" means
12  a document issued by the Department of Financial and
13  Professional Regulation that identifies a person as a
14  dispensing organization agent.
15  "Disproportionately Impacted Area" means a census tract or
16  comparable geographic area that satisfies the following
17  criteria as determined by the Department of Commerce and
18  Economic Opportunity, that:
19  (1) meets at least one of the following criteria:
20  (A) the area has a poverty rate of at least 20%
21  according to the latest federal decennial census; or
22  (B) 75% or more of the children in the area
23  participate in the federal free lunch program
24  according to reported statistics from the State Board
25  of Education; or
26  (C) at least 20% of the households in the area

 

 

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1  receive assistance under the Supplemental Nutrition
2  Assistance Program; or
3  (D) the area has an average unemployment rate, as
4  determined by the Illinois Department of Employment
5  Security, that is more than 120% of the national
6  unemployment average, as determined by the United
7  States Department of Labor, for a period of at least 2
8  consecutive calendar years preceding the date of the
9  application; and
10  (2) has high rates of arrest, conviction, and
11  incarceration related to the sale, possession, use,
12  cultivation, manufacture, or transport of cannabis.
13  "Early Approval Adult Use Cultivation Center License"
14  means a license that permits a medical cannabis cultivation
15  center licensed under the Compassionate Use of Medical
16  Cannabis Program Act as of the effective date of this Act to
17  begin cultivating, infusing, packaging, transporting (unless
18  otherwise provided in this Act), processing, and selling
19  cannabis or cannabis-infused product to cannabis business
20  establishments for resale to purchasers as permitted by this
21  Act as of January 1, 2020.
22  "Early Approval Adult Use Dispensing Organization License"
23  means a license that permits a medical cannabis dispensing
24  organization licensed under the Compassionate Use of Medical
25  Cannabis Program Act as of the effective date of this Act to
26  begin selling cannabis or cannabis-infused product to

 

 

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1  purchasers as permitted by this Act as of January 1, 2020.
2  "Early Approval Adult Use Dispensing Organization at a
3  secondary site" means a license that permits a medical
4  cannabis dispensing organization licensed under the
5  Compassionate Use of Medical Cannabis Program Act as of the
6  effective date of this Act to begin selling cannabis or
7  cannabis-infused product to purchasers as permitted by this
8  Act on January 1, 2020 at a different dispensary location from
9  its existing registered medical dispensary location.
10  "Eligible Tied Applicant" means a Tied Applicant that is
11  eligible to participate in the process by which a remaining
12  available license is distributed by lot pursuant to a Tied
13  Applicant Lottery.
14  "Enclosed, locked facility" means a room, greenhouse,
15  building, or other enclosed area equipped with locks or other
16  security devices that permit access only by cannabis business
17  establishment agents working for the licensed cannabis
18  business establishment or acting pursuant to this Act to
19  cultivate, process, store, or distribute cannabis.
20  "Enclosed, locked space" means a closet, room, greenhouse,
21  building, or other enclosed area equipped with locks or other
22  security devices that permit access only by authorized
23  individuals under this Act. "Enclosed, locked space" may
24  include:
25  (1) a space within a residential building that (i) is
26  the primary residence of the individual cultivating 5 or

 

 

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1  fewer cannabis plants that are more than 5 inches tall and
2  (ii) includes sleeping quarters and indoor plumbing. The
3  space must only be accessible by a key or code that is
4  different from any key or code that can be used to access
5  the residential building from the exterior; or
6  (2) a structure, such as a shed or greenhouse, that
7  lies on the same plot of land as a residential building
8  that (i) includes sleeping quarters and indoor plumbing
9  and (ii) is used as a primary residence by the person
10  cultivating 5 or fewer cannabis plants that are more than
11  5 inches tall, such as a shed or greenhouse. The structure
12  must remain locked when it is unoccupied by people.
13  "Financial institution" has the same meaning as "financial
14  organization" as defined in Section 1501 of the Illinois
15  Income Tax Act, and also includes the holding companies,
16  subsidiaries, and affiliates of such financial organizations.
17  "Flowering stage" means the stage of cultivation where and
18  when a cannabis plant is cultivated to produce plant material
19  for cannabis products. This includes mature plants as follows:
20  (1) if greater than 2 stigmas are visible at each
21  internode of the plant; or
22  (2) if the cannabis plant is in an area that has been
23  intentionally deprived of light for a period of time
24  intended to produce flower buds and induce maturation,
25  from the moment the light deprivation began through the
26  remainder of the marijuana plant growth cycle.

 

 

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1  "Individual" means a natural person.
2  "Infuser organization" or "infuser" means a facility
3  operated by an organization or business that is licensed by
4  the Department of Agriculture to directly incorporate cannabis
5  or cannabis concentrate into a product formulation to produce
6  a cannabis-infused product.
7  "Kief" means the resinous crystal-like trichomes that are
8  found on cannabis and that are accumulated, resulting in a
9  higher concentration of cannabinoids, untreated by heat or
10  pressure, or extracted using a solvent.
11  "Labor peace agreement" means an agreement between a
12  cannabis business establishment and any labor organization
13  recognized under the National Labor Relations Act, referred to
14  in this Act as a bona fide labor organization, that prohibits
15  labor organizations and members from engaging in picketing,
16  work stoppages, boycotts, and any other economic interference
17  with the cannabis business establishment. This agreement means
18  that the cannabis business establishment has agreed not to
19  disrupt efforts by the bona fide labor organization to
20  communicate with, and attempt to organize and represent, the
21  cannabis business establishment's employees. The agreement
22  shall provide a bona fide labor organization access at
23  reasonable times to areas in which the cannabis business
24  establishment's employees work, for the purpose of meeting
25  with employees to discuss their right to representation,
26  employment rights under State law, and terms and conditions of

 

 

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1  employment. This type of agreement shall not mandate a
2  particular method of election or certification of the bona
3  fide labor organization.
4  "Limited access area" means a room or other area under the
5  control of a cannabis dispensing organization licensed under
6  this Act and upon the licensed premises where cannabis sales
7  occur with access limited to purchasers, dispensing
8  organization owners and other dispensing organization agents,
9  or service professionals conducting business with the
10  dispensing organization, or, if sales to registered qualifying
11  patients, caregivers, provisional patients, and Opioid
12  Alternative Pilot Program participants licensed pursuant to
13  the Compassionate Use of Medical Cannabis Program Act are also
14  permitted at the dispensary, registered qualifying patients,
15  caregivers, provisional patients, and Opioid Alternative Pilot
16  Program participants.
17  "Member of an impacted family" means an individual who has
18  a parent, legal guardian, child, spouse, or dependent, or was
19  a dependent of an individual who, prior to the effective date
20  of this Act, was arrested for, convicted of, or adjudicated
21  delinquent for any offense that is eligible for expungement
22  under this Act.
23  "Mother plant" means a cannabis plant that is cultivated
24  or maintained for the purpose of generating clones, and that
25  will not be used to produce plant material for sale to an
26  infuser or dispensing organization.

 

 

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1  "Ordinary public view" means within the sight line with
2  normal visual range of a person, unassisted by visual aids,
3  from a public street or sidewalk adjacent to real property, or
4  from within an adjacent property.
5  "Ownership and control" means ownership of at least 51% of
6  the business, including corporate stock if a corporation, and
7  control over the management and day-to-day operations of the
8  business and an interest in the capital, assets, and profits
9  and losses of the business proportionate to percentage of
10  ownership.
11  "Person" means a natural individual, firm, partnership,
12  association, joint stock company, joint venture, public or
13  private corporation, limited liability company, or a receiver,
14  executor, trustee, guardian, or other representative appointed
15  by order of any court.
16  "Possession limit" means the amount of cannabis under
17  Section 10-10 that may be possessed at any one time by a person
18  21 years of age or older or who is a registered qualifying
19  medical cannabis patient or caregiver under the Compassionate
20  Use of Medical Cannabis Program Act.
21  "Principal officer" includes a cannabis business
22  establishment applicant or licensed cannabis business
23  establishment's board member, owner with more than 1% interest
24  of the total cannabis business establishment or more than 5%
25  interest of the total cannabis business establishment of a
26  publicly traded company, president, vice president, secretary,

 

 

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1  treasurer, partner, officer, member, manager member, or person
2  with a profit sharing, financial interest, or revenue sharing
3  arrangement. The definition includes a person with authority
4  to control the cannabis business establishment, a person who
5  assumes responsibility for the debts of the cannabis business
6  establishment and who is further defined in this Act.
7  "Primary residence" means a dwelling where a person
8  usually stays or stays more often than other locations. It may
9  be determined by, without limitation, presence, tax filings;
10  address on an Illinois driver's license, an Illinois
11  Identification Card, or an Illinois Person with a Disability
12  Identification Card; or voter registration. No person may have
13  more than one primary residence.
14  "Processing organization" or "processor" means a facility
15  operated by an organization or business that is licensed by
16  the Department of Agriculture to either extract constituent
17  chemicals or compounds to produce cannabis concentrate or
18  incorporate cannabis or cannabis concentrate into a product
19  formulation to produce a cannabis product.
20  "Processing organization agent" means a principal officer,
21  board member, employee, or agent of a processing organization.
22  "Processing organization agent identification card" means
23  a document issued by the Department of Agriculture that
24  identifies a person as a processing organization agent.
25  "Provisional registration" means a document issued by the
26  Department of Public Health to a qualifying patient who has

 

 

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1  submitted (i) an online application and paid a fee to
2  participate in Compassionate Use of Medical Cannabis Program
3  pending approval or denial of the patient's application or
4  (ii) a completed application for terminal illness.
5  "Provisional patient" means a qualifying patient who has
6  received a provisional registration from the Department of
7  Public Health.
8  "Purchaser" means a person 21 years of age or older who
9  acquires cannabis for a valuable consideration. "Purchaser"
10  does not include a cardholder under the Compassionate Use of
11  Medical Cannabis Program Act.
12  "Qualifying Applicant" means an applicant that submitted
13  an application pursuant to Section 15-30 that received at
14  least 85% of 250 application points available under Section
15  15-30 as the applicant's final score and meets the definition
16  of "Social Equity Applicant" as set forth under this Section.
17  "Qualifying Social Equity Justice Involved Applicant"
18  means an applicant that submitted an application pursuant to
19  Section 15-30 that received at least 85% of 250 application
20  points available under Section 15-30 as the applicant's final
21  score and meets the criteria of either paragraph (1) or (2) of
22  the definition of "Social Equity Applicant" as set forth under
23  this Section.
24  "Qualified Social Equity Applicant" means a Social Equity
25  Applicant who has been awarded a conditional license under
26  this Act to operate a cannabis business establishment.

 

 

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1  "Qualifying patient" means a person who has been diagnosed
2  by a certifying health care professional as having a
3  debilitating medical condition. Beginning on January 1, 2025,
4  all "qualifying patients" registered under the Compassionate
5  Use of Medical Cannabis Program Act shall be permitted to
6  purchase cannabis and cannabis-infused products at any
7  dispensary or dispensing organization licensed by the
8  Department of Financial and Professional Regulation pursuant
9  to the Cannabis Regulation and Tax Act.
10  "Resided" means an individual's primary residence was
11  located within the relevant geographic area as established by
12  2 of the following:
13  (1) a signed lease agreement that includes the
14  applicant's name;
15  (2) a property deed that includes the applicant's
16  name;
17  (3) school records;
18  (4) a voter registration card;
19  (5) an Illinois driver's license, an Illinois
20  Identification Card, or an Illinois Person with a
21  Disability Identification Card;
22  (6) a paycheck stub;
23  (7) a utility bill;
24  (8) tax records; or
25  (9) any other proof of residency or other information
26  necessary to establish residence as provided by rule.

 

 

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1  "Smoking" means the inhalation of smoke caused by the
2  combustion of cannabis.
3  "Social Equity Applicant" means an applicant that is an
4  Illinois resident that meets one of the following criteria:
5  (1) an applicant with at least 51% ownership and
6  control by one or more individuals who have resided for at
7  least 5 of the preceding 10 years in a Disproportionately
8  Impacted Area;
9  (2) an applicant with at least 51% ownership and
10  control by one or more individuals who:
11  (i) have been arrested for, convicted of, or
12  adjudicated delinquent for any offense that is
13  eligible for expungement under this Act; or
14  (ii) is a member of an impacted family;
15  (3) for applicants with a minimum of 10 full-time
16  employees, an applicant with at least 51% of current
17  employees who:
18  (i) currently reside in a Disproportionately
19  Impacted Area; or
20  (ii) have been arrested for, convicted of, or
21  adjudicated delinquent for any offense that is
22  eligible for expungement under this Act or member of
23  an impacted family.
24  Nothing in this Act shall be construed to preempt or limit
25  the duties of any employer under the Job Opportunities for
26  Qualified Applicants Act. Nothing in this Act shall permit an

 

 

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1  employer to require an employee to disclose sealed or expunged
2  offenses, unless otherwise required by law.
3  "Tied Applicant" means an application submitted by a
4  Dispensary Applicant pursuant to Section 15-30 that received
5  the same number of application points under Section 15-30 as
6  the Dispensary Applicant's final score as one or more
7  top-scoring applications in the same BLS Region and would have
8  been awarded a license but for the one or more other
9  top-scoring applications that received the same number of
10  application points. Each application for which a Dispensary
11  Applicant was required to pay a required application fee for
12  the application period ending January 2, 2020 shall be
13  considered an application of a separate Tied Applicant.
14  "Tied Applicant Lottery" means the process established
15  under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
16  Use Dispensing Organization Licenses pursuant to Sections
17  15-25 and 15-30 among Eligible Tied Applicants.
18  "Tincture" means a cannabis-infused solution, typically
19  comprised of alcohol, glycerin, or vegetable oils, derived
20  either directly from the cannabis plant or from a processed
21  cannabis extract. A tincture is not an alcoholic liquor as
22  defined in the Liquor Control Act of 1934. A tincture shall
23  include a calibrated dropper or other similar device capable
24  of accurately measuring servings.
25  "Transporting organization" or "transporter" means an
26  organization or business that is licensed by the Department of

 

 

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1  Agriculture to transport cannabis or cannabis-infused product
2  on behalf of a cannabis business establishment or a community
3  college licensed under the Community College Cannabis
4  Vocational Training Pilot Program.
5  "Transporting organization agent" means a principal
6  officer, board member, employee, or agent of a transporting
7  organization.
8  "Transporting organization agent identification card"
9  means a document issued by the Department of Agriculture that
10  identifies a person as a transporting organization agent.
11  "Unit of local government" means any county, city,
12  village, or incorporated town.
13  "Vegetative stage" means the stage of cultivation in which
14  a cannabis plant is propagated to produce additional cannabis
15  plants or reach a sufficient size for production. This
16  includes seedlings, clones, mothers, and other immature
17  cannabis plants as follows:
18  (1) if the cannabis plant is in an area that has not
19  been intentionally deprived of light for a period of time
20  intended to produce flower buds and induce maturation, it
21  has no more than 2 stigmas visible at each internode of the
22  cannabis plant; or
23  (2) any cannabis plant that is cultivated solely for
24  the purpose of propagating clones and is never used to
25  produce cannabis.
26  (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;

 

 

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1  102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
2  5-13-22.)
3  (410 ILCS 705/10-10)
4  Sec. 10-10. Possession limit.
5  (a) Except if otherwise authorized by this Act, for a
6  person who is 21 years of age or older and a resident of this
7  State, the possession limit is as follows:
8  (1) 30 grams of cannabis flower;
9  (2) no more than 500 milligrams of THC contained in
10  cannabis-infused product;
11  (3) 5 grams of cannabis concentrate; and
12  (4) for registered qualifying patients, any cannabis
13  produced by cannabis plants grown under subsection (b) of
14  Section 10-5, provided any amount of cannabis produced in
15  excess of 30 grams of raw cannabis or its equivalent must
16  remain secured within the residence or residential
17  property in which it was grown.
18  (b) For a person who is 21 years of age or older and who is
19  not a resident of this State, the possession limit is:
20  (1) 15 grams of cannabis flower;
21  (2) 2.5 grams of cannabis concentrate; and
22  (3) 250 milligrams of THC contained in a
23  cannabis-infused product.
24  (c) The possession limits found in subsections (a) and (b)
25  of this Section are to be considered cumulative.

 

 

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1  (d) No person shall knowingly obtain, seek to obtain, or
2  possess an amount of cannabis from a dispensing organization
3  or craft grower that would cause him or her to exceed the
4  possession limit under this Section, including cannabis that
5  is cultivated by a person under this Act or obtained under the
6  Compassionate Use of Medical Cannabis Program Act.
7  (e) Cannabis and cannabis-derived substances regulated
8  under the Industrial Hemp Act are not covered by this Act.
9  (f) No registered qualifying patient, provisional patient,
10  or designated caregiver shall knowingly obtain, seek to
11  obtain, or possess, individually or collectively, an amount of
12  usable cannabis from a dispensing organization that would
13  cause the person to exceed their adequate medical supply.
14  (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
15  (410 ILCS 705/15-13 new)
16  Sec. 15-13. Adult Use and medical cannabis dispensing
17  organization license merger; medical patient prioritization.
18  (a) Beginning January 1, 2025, all dispensing
19  organizations shall sell cannabis and cannabis-infused
20  products to purchasers who are 21 years of age or older, and to
21  qualifying patients, provisional patients, and designated
22  caregivers registered under the Compassionate Use of Medical
23  Cannabis Act. By April 1, 2025, all dispensing organizations
24  licensed under Section 15-36 shall have paid the required fee
25  identified in subsection (d) or shall have entered into an

 

 

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1  approved payment plan with the Department to pay the required
2  fee.
3  (b) Beginning on January 1, 2025, all dispensing
4  organization agents registered under the Compassionate Use of
5  Medical Cannabis Program Act shall be deemed to be a
6  "dispensing organization agent" as that term is defined in
7  this Act. All dispensing organization agents registered under
8  the Compassionate Use of Medical Cannabis Program Act shall
9  then have the same rights, privileges, duties, and
10  responsibilities of dispensing organization agents licensed
11  pursuant this Act. All dispensing organization agents shall be
12  subject to the rules and regulations of this Act and any
13  administrative rules promulgated pursuant to this Act.
14  (c) At the date of a dispensing organization's first
15  renewal after the effective date of this amendatory Act of the
16  103rd General Assembly, a dispensing organizations shall renew
17  their licenses pursuant to Section 15-45.
18  (d) By April 1, 2025, all dispensing organizations shall
19  pay a one-time fee of $10,000 to be deposited into the
20  Compassionate Use of Medical Cannabis Fund. After this
21  one-time fee, all dispensing organizations shall renew under
22  Section 15-45. The Department may approve payment plans which
23  extend beyond April 1, 2025 for the fee paid under this
24  subsection if the first payment under the payment plan
25  remitted by April 1, 2025.
26  (e) All dispensing organizations must maintain an adequate

 

 

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1  medical supply of cannabis and cannabis-infused products for
2  purchase by qualifying patients, designated caregivers, and
3  provisional patients. For the purposes of this subsection,
4  "adequate medical supply" shall have the same meaning as used
5  in Section 1-10.
6  (f) If there is a shortage of cannabis or cannabis-infused
7  products, a dispensing organization shall prioritize serving
8  qualifying patients, designated caregivers, and provisional
9  patients before serving purchasers.
10  (g) Beginning on January 1, 2025, cannabis and
11  cannabis-infused products purchased from a registered
12  dispensing organization by a qualified patient, provisional
13  patient, or designated caregiver is not subject to Section
14  65-10.
15  (410 ILCS 705/15-15)
16  Sec. 15-15. Early Approval Adult Use Dispensing
17  Organization License.
18  (a) Any medical cannabis dispensing organization holding a
19  valid registration under the Compassionate Use of Medical
20  Cannabis Program Act as of the effective date of this Act may,
21  within 60 days of the effective date of this Act, apply to the
22  Department for an Early Approval Adult Use Dispensing
23  Organization License to serve purchasers at any medical
24  cannabis dispensing location in operation on the effective
25  date of this Act, pursuant to this Section.

 

 

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1  (b) A medical cannabis dispensing organization seeking
2  issuance of an Early Approval Adult Use Dispensing
3  Organization License to serve purchasers at any medical
4  cannabis dispensing location in operation as of the effective
5  date of this Act shall submit an application on forms provided
6  by the Department. The application must be submitted by the
7  same person or entity that holds the medical cannabis
8  dispensing organization registration and include the
9  following:
10  (1) Payment of a nonrefundable fee of $30,000 to be
11  deposited into the Cannabis Regulation Fund;
12  (2) Proof of registration as a medical cannabis
13  dispensing organization that is in good standing;
14  (3) Certification that the applicant will comply with
15  the requirements contained in the Compassionate Use of
16  Medical Cannabis Program Act except as provided in this
17  Act;
18  (4) The legal name of the dispensing organization;
19  (5) The physical address of the dispensing
20  organization;
21  (6) The name, address, social security number, and
22  date of birth of each principal officer and board member
23  of the dispensing organization, each of whom must be at
24  least 21 years of age;
25  (7) A nonrefundable Cannabis Business Development Fee
26  equal to 3% of the dispensing organization's total sales

 

 

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1  between June 1, 2018 to June 1, 2019, or $100,000,
2  whichever is less, to be deposited into the Cannabis
3  Business Development Fund; and
4  (8) Identification of one of the following Social
5  Equity Inclusion Plans to be completed by March 31, 2021:
6  (A) Make a contribution of 3% of total sales from
7  June 1, 2018 to June 1, 2019, or $100,000, whichever is
8  less, to the Cannabis Business Development Fund. This
9  is in addition to the fee required by item (7) of this
10  subsection (b);
11  (B) Make a grant of 3% of total sales from June 1,
12  2018 to June 1, 2019, or $100,000, whichever is less,
13  to a cannabis industry training or education program
14  at an Illinois community college as defined in the
15  Public Community College Act;
16  (C) Make a donation of $100,000 or more to a
17  program that provides job training services to persons
18  recently incarcerated or that operates in a
19  Disproportionately Impacted Area;
20  (D) Participate as a host in a cannabis business
21  establishment incubator program approved by the
22  Department of Commerce and Economic Opportunity, and
23  in which an Early Approval Adult Use Dispensing
24  Organization License holder agrees to provide a loan
25  of at least $100,000 and mentorship to incubate, for
26  at least a year, a Social Equity Applicant intending

 

 

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1  to seek a license or a licensee that qualifies as a
2  Social Equity Applicant. As used in this Section,
3  "incubate" means providing direct financial assistance
4  and training necessary to engage in licensed cannabis
5  industry activity similar to that of the host
6  licensee. The Early Approval Adult Use Dispensing
7  Organization License holder or the same entity holding
8  any other licenses issued pursuant to this Act shall
9  not take an ownership stake of greater than 10% in any
10  business receiving incubation services to comply with
11  this subsection. If an Early Approval Adult Use
12  Dispensing Organization License holder fails to find a
13  business to incubate to comply with this subsection
14  before its Early Approval Adult Use Dispensing
15  Organization License expires, it may opt to meet the
16  requirement of this subsection by completing another
17  item from this subsection; or
18  (E) Participate in a sponsorship program for at
19  least 2 years approved by the Department of Commerce
20  and Economic Opportunity in which an Early Approval
21  Adult Use Dispensing Organization License holder
22  agrees to provide an interest-free loan of at least
23  $200,000 to a Social Equity Applicant. The sponsor
24  shall not take an ownership stake in any cannabis
25  business establishment receiving sponsorship services
26  to comply with this subsection.

 

 

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1  (b-5) Beginning 90 days after the effective date of this
2  amendatory Act of the 102nd General Assembly, an Early
3  Approval Adult Use Dispensing Organization licensee whose
4  license was issued pursuant to this Section may apply to
5  relocate within the same geographic district where its
6  existing associated medical cannabis dispensing organization
7  dispensary licensed under the Compassionate Use of Medical
8  Cannabis Act is authorized to operate. A request to relocate
9  under this subsection is subject to approval by the
10  Department. An Early Approval Adult Use Dispensing
11  Organization's application to relocate its license under this
12  subsection shall be deemed approved 30 days following the
13  submission of a complete application to relocate, unless
14  sooner approved or denied in writing by the Department. If an
15  application to relocate is denied, the Department shall
16  provide, in writing, the specific reason for denial.
17  An Early Approval Adult Use Dispensing Organization may
18  request to relocate under this subsection if:
19  (1) its existing location is within the boundaries of
20  a unit of local government that prohibits the sale of
21  adult use cannabis; or
22  (2) the Early Approval Adult Use Dispensing
23  Organization has obtained the approval of the municipality
24  or, if outside the boundaries of a municipality in an
25  unincorporated area of the county, the approval of the
26  county where the existing license is located to move to

 

 

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1  another location within that unit of local government.
2  At no time may an Early Approval Adult Use Dispensing
3  Organization dispensary licensed under this Section operate in
4  a separate facility from its associated medical cannabis
5  dispensing organization dispensary licensed under the
6  Compassionate Use of Medical Cannabis Act. The relocation of
7  an Early Approval Adult Use Dispensing Organization License
8  under this subsection shall be subject to Sections 55-25 and
9  55-28 of this Act.
10  (c) The license fee required by paragraph (1) of
11  subsection (b) of this Section shall be in addition to any
12  license fee required for the renewal of a registered medical
13  cannabis dispensing organization license.
14  (d) Applicants must submit all required information,
15  including the requirements in subsection (b) of this Section,
16  to the Department. Failure by an applicant to submit all
17  required information may result in the application being
18  disqualified.
19  (e) If the Department receives an application that fails
20  to provide the required elements contained in subsection (b),
21  the Department shall issue a deficiency notice to the
22  applicant. The applicant shall have 10 calendar days from the
23  date of the deficiency notice to submit complete information.
24  Applications that are still incomplete after this opportunity
25  to cure may be disqualified.
26  (f) If an applicant meets all the requirements of

 

 

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1  subsection (b) of this Section, the Department shall issue the
2  Early Approval Adult Use Dispensing Organization License
3  within 14 days of receiving a completed application unless:
4  (1) The licensee or a principal officer is delinquent
5  in filing any required tax returns or paying any amounts
6  owed to the State of Illinois;
7  (2) The Secretary of Financial and Professional
8  Regulation determines there is reason, based on documented
9  compliance violations, the licensee is not entitled to an
10  Early Approval Adult Use Dispensing Organization License;
11  or
12  (3) Any principal officer fails to register and remain
13  in compliance with this Act or the Compassionate Use of
14  Medical Cannabis Program Act.
15  (g) A registered medical cannabis dispensing organization
16  that obtains an Early Approval Adult Use Dispensing
17  Organization License may begin selling cannabis,
18  cannabis-infused products, paraphernalia, and related items to
19  purchasers under the rules of this Act no sooner than January
20  1, 2020.
21  (h) A dispensing organization holding a medical cannabis
22  dispensing organization license issued under the Compassionate
23  Use of Medical Cannabis Program Act must maintain an adequate
24  supply of cannabis and cannabis-infused products for purchase
25  by qualifying patients, caregivers, provisional patients, and
26  Opioid Alternative Pilot Program participants. For the

 

 

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1  purposes of this subsection, "adequate supply" means a monthly
2  inventory level that is comparable in type and quantity to
3  those medical cannabis products provided to patients and
4  caregivers on an average monthly basis for the 6 months before
5  the effective date of this Act.
6  (i) If there is a shortage of cannabis or cannabis-infused
7  products, a dispensing organization holding both a dispensing
8  organization license under the Compassionate Use of Medical
9  Cannabis Program Act and this Act shall prioritize serving
10  qualifying patients, caregivers, provisional patients, and
11  Opioid Alternative Pilot Program participants before serving
12  purchasers.
13  (j) Notwithstanding any law or rule to the contrary, a
14  person that holds a medical cannabis dispensing organization
15  license issued under the Compassionate Use of Medical Cannabis
16  Program Act and an Early Approval Adult Use Dispensing
17  Organization License may permit purchasers into a limited
18  access area as that term is defined in administrative rules
19  made under the authority in the Compassionate Use of Medical
20  Cannabis Program Act.
21  (k) An Early Approval Adult Use Dispensing Organization
22  License is valid until March 31, 2021. A dispensing
23  organization that obtains an Early Approval Adult Use
24  Dispensing Organization License shall receive written or
25  electronic notice 90 days before the expiration of the license
26  that the license will expire, and that informs the license

 

 

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1  holder that it may apply to renew its Early Approval Adult Use
2  Dispensing Organization License on forms provided by the
3  Department. The Department shall renew the Early Approval
4  Adult Use Dispensing Organization License within 60 days of
5  the renewal application being deemed complete if:
6  (1) the dispensing organization submits an application
7  and the required nonrefundable renewal fee of $30,000, to
8  be deposited into the Cannabis Regulation Fund;
9  (2) the Department has not suspended or permanently
10  revoked the Early Approval Adult Use Dispensing
11  Organization License or a medical cannabis dispensing
12  organization license on the same premises for violations
13  of this Act, the Compassionate Use of Medical Cannabis
14  Program Act, or rules adopted pursuant to those Acts;
15  (3) the dispensing organization has completed a Social
16  Equity Inclusion Plan as provided by parts (A), (B), and
17  (C) of paragraph (8) of subsection (b) of this Section or
18  has made substantial progress toward completing a Social
19  Equity Inclusion Plan as provided by parts (D) and (E) of
20  paragraph (8) of subsection (b) of this Section; and
21  (4) the dispensing organization is in compliance with
22  this Act and rules.
23  (l) The Early Approval Adult Use Dispensing Organization
24  License renewed pursuant to subsection (k) of this Section
25  shall expire March 31, 2022. The Early Approval Adult Use
26  Dispensing Organization Licensee shall receive written or

 

 

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1  electronic notice 90 days before the expiration of the license
2  that the license will expire, and that informs the license
3  holder that it may apply for an Adult Use Dispensing
4  Organization License on forms provided by the Department. The
5  Department shall grant an Adult Use Dispensing Organization
6  License within 60 days of an application being deemed complete
7  if the applicant has met all of the criteria in Section 15-36.
8  (m) If a dispensing organization fails to submit an
9  application for renewal of an Early Approval Adult Use
10  Dispensing Organization License or for an Adult Use Dispensing
11  Organization License before the expiration dates provided in
12  subsections (k) and (l) of this Section, the dispensing
13  organization shall cease serving purchasers and cease all
14  operations until it receives a renewal or an Adult Use
15  Dispensing Organization License, as the case may be.
16  (n) A dispensing organization agent who holds a valid
17  dispensing organization agent identification card issued under
18  the Compassionate Use of Medical Cannabis Program Act and is
19  an officer, director, manager, or employee of the dispensing
20  organization licensed under this Section may engage in all
21  activities authorized by this Article to be performed by a
22  dispensing organization agent.
23  (o) If the Department suspends, permanently revokes, or
24  otherwise disciplines the Early Approval Adult Use Dispensing
25  Organization License of a dispensing organization that also
26  holds a medical cannabis dispensing organization license

 

 

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1  issued under the Compassionate Use of Medical Cannabis Program
2  Act, the Department may consider the suspension, permanent
3  revocation, or other discipline of the medical cannabis
4  dispensing organization license.
5  (p) All fees collected pursuant to this Section shall be
6  deposited into the Cannabis Regulation Fund, unless otherwise
7  specified.
8  (q) Beginning January 1, 2025, all dispensing
9  organization licenses which were or are issued as Early
10  Approval Adult Use Dispensing Organization licenses under this
11  Section shall be a "dispensing organization" or a "dispensary"
12  as those terms are defined under this Act and shall be an adult
13  use dispensing organization license holder under Section
14  15-36.
15  (r) This Section is inoperative one year after the
16  effective date of this amendatory Act of the 103rd General
17  Assembly.
18  (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
19  102-98, eff. 7-15-21.)
20  (410 ILCS 705/15-17 new)
21  Sec. 15-17. Early Approval Adult Use Dispensing
22  Organization license merger with Adult Use Dispensing
23  Organization license.
24  (a) Beginning January 1, 2025, all dispensing
25  organizations previously registered as an Early Approval Adult

 

 

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1  Use Dispensing Organization license shall be a "dispensing
2  organization" or a "dispensary" under this Act and shall be an
3  Adult Use Dispensing Organization license holder under Section
4  15-36.
5  (b) The BLS Region in which all dispensing organization
6  licenses originally issued pursuant as Early Approval Adult
7  Use Dispensing Organization Licenses shall be considered that
8  license's BLS Region. The dispensing organization shall remain
9  in that BLS Region, even if the license changes its ownership,
10  is sold, is transferred, or receives authorization under
11  subsection (e-5) of Section 15-25.
12  (410 ILCS 705/15-20)
13  Sec. 15-20. Early Approval Adult Use Dispensing
14  Organization License; secondary site.
15  (a) Any medical cannabis dispensing organization holding a
16  valid registration under the Compassionate Use of Medical
17  Cannabis Program Act as of the effective date of this Act may,
18  within 60 days of the effective date of this Act, apply to the
19  Department for an Early Approval Adult Use Dispensing
20  Organization License to operate a dispensing organization to
21  serve purchasers at a secondary site not within 1,500 feet of
22  another medical cannabis dispensing organization or adult use
23  dispensing organization. The Early Approval Adult Use
24  Dispensing Organization secondary site shall be within any BLS
25  Region that shares territory with the dispensing organization

 

 

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1  district to which the medical cannabis dispensing organization
2  is assigned under the administrative rules for dispensing
3  organizations under the Compassionate Use of Medical Cannabis
4  Program Act.
5  (a-5) If, within 360 days of the effective date of this
6  Act, a dispensing organization is unable to find a location
7  within the BLS Regions prescribed in subsection (a) of this
8  Section in which to operate an Early Approval Adult Use
9  Dispensing Organization at a secondary site because no
10  jurisdiction within the prescribed area allows the operation
11  of an Adult Use Cannabis Dispensing Organization, the
12  Department of Financial and Professional Regulation may waive
13  the geographic restrictions of subsection (a) of this Section
14  and specify another BLS Region into which the dispensary may
15  be placed.
16  (b) (Blank).
17  (c) A medical cannabis dispensing organization seeking
18  issuance of an Early Approval Adult Use Dispensing
19  Organization License at a secondary site to serve purchasers
20  at a secondary site as prescribed in subsection (a) of this
21  Section shall submit an application on forms provided by the
22  Department. The application must meet or include the following
23  qualifications:
24  (1) a payment of a nonrefundable application fee of
25  $30,000;
26  (2) proof of registration as a medical cannabis

 

 

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1  dispensing organization that is in good standing;
2  (3) submission of the application by the same person
3  or entity that holds the medical cannabis dispensing
4  organization registration;
5  (4) the legal name of the medical cannabis dispensing
6  organization;
7  (5) the physical address of the medical cannabis
8  dispensing organization and the proposed physical address
9  of the secondary site;
10  (6) a copy of the current local zoning ordinance
11  Sections relevant to dispensary operations and
12  documentation of the approval, the conditional approval or
13  the status of a request for zoning approval from the local
14  zoning office that the proposed dispensary location is in
15  compliance with the local zoning rules;
16  (7) a plot plan of the dispensary drawn to scale. The
17  applicant shall submit general specifications of the
18  building exterior and interior layout;
19  (8) a statement that the dispensing organization
20  agrees to respond to the Department's supplemental
21  requests for information;
22  (9) for the building or land to be used as the proposed
23  dispensary:
24  (A) if the property is not owned by the applicant,
25  a written statement from the property owner and
26  landlord, if any, certifying consent that the

 

 

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1  applicant may operate a dispensary on the premises; or
2  (B) if the property is owned by the applicant,
3  confirmation of ownership;
4  (10) a copy of the proposed operating bylaws;
5  (11) a copy of the proposed business plan that
6  complies with the requirements in this Act, including, at
7  a minimum, the following:
8  (A) a description of services to be offered; and
9  (B) a description of the process of dispensing
10  cannabis;
11  (12) a copy of the proposed security plan that
12  complies with the requirements in this Article, including:
13  (A) a description of the delivery process by which
14  cannabis will be received from a transporting
15  organization, including receipt of manifests and
16  protocols that will be used to avoid diversion, theft,
17  or loss at the dispensary acceptance point; and
18  (B) the process or controls that will be
19  implemented to monitor the dispensary, secure the
20  premises, agents, patients, and currency, and prevent
21  the diversion, theft, or loss of cannabis; and
22  (C) the process to ensure that access to the
23  restricted access areas is restricted to, registered
24  agents, service professionals, transporting
25  organization agents, Department inspectors, and
26  security personnel;

 

 

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1  (13) a proposed inventory control plan that complies
2  with this Section;
3  (14) the name, address, social security number, and
4  date of birth of each principal officer and board member
5  of the dispensing organization; each of those individuals
6  shall be at least 21 years of age;
7  (15) a nonrefundable Cannabis Business Development Fee
8  equal to $200,000, to be deposited into the Cannabis
9  Business Development Fund; and
10  (16) a commitment to completing one of the following
11  Social Equity Inclusion Plans in subsection (d).
12  (d) Before receiving an Early Approval Adult Use
13  Dispensing Organization License at a secondary site, a
14  dispensing organization shall indicate the Social Equity
15  Inclusion Plan that the applicant plans to achieve before the
16  expiration of the Early Approval Adult Use Dispensing
17  Organization License from the list below:
18  (1) make a contribution of 3% of total sales from June
19  1, 2018 to June 1, 2019, or $100,000, whichever is less, to
20  the Cannabis Business Development Fund. This is in
21  addition to the fee required by paragraph (16) of
22  subsection (c) of this Section;
23  (2) make a grant of 3% of total sales from June 1, 2018
24  to June 1, 2019, or $100,000, whichever is less, to a
25  cannabis industry training or education program at an
26  Illinois community college as defined in the Public

 

 

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1  Community College Act;
2  (3) make a donation of $100,000 or more to a program
3  that provides job training services to persons recently
4  incarcerated or that operates in a Disproportionately
5  Impacted Area;
6  (4) participate as a host in a cannabis business
7  establishment incubator program approved by the Department
8  of Commerce and Economic Opportunity, and in which an
9  Early Approval Adult Use Dispensing Organization License
10  at a secondary site holder agrees to provide a loan of at
11  least $100,000 and mentorship to incubate, for at least a
12  year, a Social Equity Applicant intending to seek a
13  license or a licensee that qualifies as a Social Equity
14  Applicant. In this paragraph (4), "incubate" means
15  providing direct financial assistance and training
16  necessary to engage in licensed cannabis industry activity
17  similar to that of the host licensee. The Early Approval
18  Adult Use Dispensing Organization License holder or the
19  same entity holding any other licenses issued under this
20  Act shall not take an ownership stake of greater than 10%
21  in any business receiving incubation services to comply
22  with this subsection. If an Early Approval Adult Use
23  Dispensing Organization License at a secondary site holder
24  fails to find a business to incubate in order to comply
25  with this subsection before its Early Approval Adult Use
26  Dispensing Organization License at a secondary site

 

 

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1  expires, it may opt to meet the requirement of this
2  subsection by completing another item from this subsection
3  before the expiration of its Early Approval Adult Use
4  Dispensing Organization License at a secondary site to
5  avoid a penalty; or
6  (5) participate in a sponsorship program for at least
7  2 years approved by the Department of Commerce and
8  Economic Opportunity in which an Early Approval Adult Use
9  Dispensing Organization License at a secondary site holder
10  agrees to provide an interest-free loan of at least
11  $200,000 to a Social Equity Applicant. The sponsor shall
12  not take an ownership stake of greater than 10% in any
13  business receiving sponsorship services to comply with
14  this subsection.
15  (e) The license fee required by paragraph (1) of
16  subsection (c) of this Section is in addition to any license
17  fee required for the renewal of a registered medical cannabis
18  dispensing organization license.
19  (f) Applicants must submit all required information,
20  including the requirements in subsection (c) of this Section,
21  to the Department. Failure by an applicant to submit all
22  required information may result in the application being
23  disqualified. Principal officers shall not be required to
24  submit to the fingerprint and background check requirements of
25  Section 5-20.
26  (g) If the Department receives an application that fails

 

 

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1  to provide the required elements contained in subsection (c),
2  the Department shall issue a deficiency notice to the
3  applicant. The applicant shall have 10 calendar days from the
4  date of the deficiency notice to submit complete information.
5  Applications that are still incomplete after this opportunity
6  to cure may be disqualified.
7  (h) Once all required information and documents have been
8  submitted, the Department will review the application. The
9  Department may request revisions and retains final approval
10  over dispensary features. Once the application is complete and
11  meets the Department's approval, the Department shall
12  conditionally approve the license. Final approval is
13  contingent on the build-out and Department inspection.
14  (i) Upon submission of the Early Approval Adult Use
15  Dispensing Organization at a secondary site application, the
16  applicant shall request an inspection and the Department may
17  inspect the Early Approval Adult Use Dispensing Organization's
18  secondary site to confirm compliance with the application and
19  this Act.
20  (j) The Department shall only issue an Early Approval
21  Adult Use Dispensing Organization License at a secondary site
22  after the completion of a successful inspection.
23  (k) If an applicant passes the inspection under this
24  Section, the Department shall issue the Early Approval Adult
25  Use Dispensing Organization License at a secondary site within
26  10 business days unless:

 

 

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1  (1) The licensee, any principal officer or board
2  member of the licensee, or any person having a financial
3  or voting interest of 5% or greater in the licensee is
4  delinquent in filing any required tax returns or paying
5  any amounts owed to the State of Illinois; or
6  (2) The Secretary of Financial and Professional
7  Regulation determines there is reason, based on documented
8  compliance violations, the licensee is not entitled to an
9  Early Approval Adult Use Dispensing Organization License
10  at its secondary site.
11  (l) Once the Department has issued a license, the
12  dispensing organization shall notify the Department of the
13  proposed opening date.
14  (m) A registered medical cannabis dispensing organization
15  that obtains an Early Approval Adult Use Dispensing
16  Organization License at a secondary site may begin selling
17  cannabis, cannabis-infused products, paraphernalia, and
18  related items to purchasers under the rules of this Act no
19  sooner than January 1, 2020.
20  (n) If there is a shortage of cannabis or cannabis-infused
21  products, a dispensing organization holding both a dispensing
22  organization license under the Compassionate Use of Medical
23  Cannabis Program Act and this Article shall prioritize serving
24  qualifying patients, provisional patients, and caregivers
25  before serving purchasers.
26  (o) An Early Approval Adult Use Dispensing Organization

 

 

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1  License at a secondary site is valid until March 31, 2021. A
2  dispensing organization that obtains an Early Approval Adult
3  Use Dispensing Organization License at a secondary site shall
4  receive written or electronic notice 90 days before the
5  expiration of the license that the license will expire, and
6  inform the license holder that it may renew its Early Approval
7  Adult Use Dispensing Organization License at a secondary site.
8  The Department shall renew an Early Approval Adult Use
9  Dispensing Organization License at a secondary site within 60
10  days of submission of the renewal application being deemed
11  complete if:
12  (1) the dispensing organization submits an application
13  and the required nonrefundable renewal fee of $30,000, to
14  be deposited into the Cannabis Regulation Fund;
15  (2) the Department has not suspended or permanently
16  revoked the Early Approval Adult Use Dispensing
17  Organization License or a medical cannabis dispensing
18  organization license held by the same person or entity for
19  violating this Act or rules adopted under this Act or the
20  Compassionate Use of Medical Cannabis Program Act or rules
21  adopted under that Act; and
22  (3) the dispensing organization has completed a Social
23  Equity Inclusion Plan provided by paragraph (1), (2), or
24  (3) of subsection (d) of this Section or has made
25  substantial progress toward completing a Social Equity
26  Inclusion Plan provided by paragraph (4) or (5) of

 

 

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1  subsection (d) of this Section.
2  (p) The Early Approval Adult Use Dispensing Organization
3  Licensee at a secondary site renewed pursuant to subsection
4  (o) shall receive written or electronic notice 90 days before
5  the expiration of the license that the license will expire,
6  and that informs the license holder that it may apply for an
7  Adult Use Dispensing Organization License on forms provided by
8  the Department. The Department shall grant an Adult Use
9  Dispensing Organization License within 60 days of an
10  application being deemed complete if the applicant has meet
11  all of the criteria in Section 15-36.
12  (q) If a dispensing organization fails to submit an
13  application for renewal of an Early Approval Adult Use
14  Dispensing Organization License or for an Adult Use Dispensing
15  Organization License before the expiration dates provided in
16  subsections (o) and (p) of this Section, the dispensing
17  organization shall cease serving purchasers until it receives
18  a renewal or an Adult Use Dispensing Organization License.
19  (r) A dispensing organization agent who holds a valid
20  dispensing organization agent identification card issued under
21  the Compassionate Use of Medical Cannabis Program Act and is
22  an officer, director, manager, or employee of the dispensing
23  organization licensed under this Section may engage in all
24  activities authorized by this Article to be performed by a
25  dispensing organization agent.
26  (s) If the Department suspends, permanently revokes, or

 

 

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1  otherwise disciplines the Early Approval Adult Use Dispensing
2  Organization License of a dispensing organization that also
3  holds a medical cannabis dispensing organization license
4  issued under the Compassionate Use of Medical Cannabis Program
5  Act, the Department may consider the suspension, permanent
6  revocation, or other discipline as grounds to take
7  disciplinary action against the medical cannabis dispensing
8  organization.
9  (t) All fees collected pursuant to this Section shall be
10  deposited into the Cannabis Regulation Fund, unless otherwise
11  specified.
12  (u) Beginning January 1, 2025, all dispensing organization
13  licenses which were or are issued as Early Approval Adult Use
14  Dispensing Organization licenses, Secondary Site, under this
15  Section shall be a "dispensing organization" or a "dispensary"
16  as those terms are defined under this Act and shall be an adult
17  use dispensing organization license holder under Section
18  15-36.
19  (v) This Section is inoperative one year after the
20  effective date of this amendatory Act of the 103rd General
21  Assembly.
22  (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
23  (410 ILCS 705/15-23 new)
24  Sec. 15-23. Medical dispensary merger for Early Approval
25  Adult Use Dispensing Organization Licenses at a Secondary

 

 

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1  Site.
2  (a) Beginning January 1, 2025,, all dispensing
3  organizations previously registered as an Early Approval Adult
4  Use Dispensing Organization license at a Secondary Site shall
5  be a "dispensing organization" or a "dispensary" and shall be
6  an adult use dispensing organization license holder under
7  Section 15-36.
8  (b) The BLS Region in which all dispensing organization
9  licenses originally issued as an Early Approval Adult Use
10  Dispensing Organization License at a Secondary Site shall be
11  considered that license's BLS Region. The dispensing
12  organization shall remain in that BLS region, even if the
13  license changes its ownership, sold, transferred, or receives
14  authorization under subsection (e-5) of Section 15-25.
15  (410 ILCS 705/15-24 new)
16  Sec. 15-24. Adult Use Dispensing Organization licensees
17  relocation. An Adult Use Dispensing Organization licensee may
18  apply to relocate within their specific BLS Region. A request
19  to relocate under this Section is subject to approval by the
20  Department. An Early Approval Adult Use Dispensing
21  Organization's application to relocate its license under this
22  Section shall be considered to be approved 30 days following
23  the submission of a complete application to relocate, unless
24  the request is sooner approved or denied in writing by the
25  Department. If an application to relocate is denied, the

 

 

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1  Department shall provide, in writing, the specific reason for
2  denial. An Adult Use Dispensing Organization may request to
3  relocate under this Section if:
4  (1) The Adult Use Dispensing Organization's existing
5  location is within the boundaries of a unit of local
6  government that prohibits the sale of adult use cannabis;
7  or
8  (2) The Adult Use Dispensing Organization has obtained
9  the approval of the municipality or, if outside the
10  boundaries of a municipality in an unincorporated area of
11  the county, the approval of the county where the existing
12  license is located to move to another location within that
13  unit of local government.
14  The relocation of an Adult Use Dispensing Organization
15  License under this Section shall be subject to Sections 55-25
16  and 55-28.
17  (410 ILCS 705/15-25)
18  Sec. 15-25. Awarding of Conditional Adult Use Dispensing
19  Organization Licenses prior to January 1, 2021.
20  (a) The Department shall issue up to 75 Conditional Adult
21  Use Dispensing Organization Licenses before May 1, 2020.
22  (b) The Department shall make the application for a
23  Conditional Adult Use Dispensing Organization License
24  available no later than October 1, 2019 and shall accept
25  applications no later than January 1, 2020.

 

 

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1  (c) To ensure the geographic dispersion of Conditional
2  Adult Use Dispensing Organization License holders, the
3  following number of licenses shall be awarded in each BLS
4  Region as determined by each region's percentage of the
5  State's population:
6  (1) Bloomington: 1
7  (2) Cape Girardeau: 1
8  (3) Carbondale-Marion: 1
9  (4) Champaign-Urbana: 1
10  (5) Chicago-Naperville-Elgin: 47
11  (6) Danville: 1
12  (7) Davenport-Moline-Rock Island: 1
13  (8) Decatur: 1
14  (9) Kankakee: 1
15  (10) Peoria: 3
16  (11) Rockford: 2
17  (12) St. Louis: 4
18  (13) Springfield: 1
19  (14) Northwest Illinois nonmetropolitan: 3
20  (15) West Central Illinois nonmetropolitan: 3
21  (16) East Central Illinois nonmetropolitan: 2
22  (17) South Illinois nonmetropolitan: 2
23  (d) An applicant seeking issuance of a Conditional Adult
24  Use Dispensing Organization License shall submit an
25  application on forms provided by the Department. An applicant
26  must meet the following requirements:

 

 

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1  (1) Payment of a nonrefundable application fee of
2  $5,000 for each license for which the applicant is
3  applying, which shall be deposited into the Cannabis
4  Regulation Fund;
5  (2) Certification that the applicant will comply with
6  the requirements contained in this Act;
7  (3) The legal name of the proposed dispensing
8  organization;
9  (4) A statement that the dispensing organization
10  agrees to respond to the Department's supplemental
11  requests for information;
12  (5) From each principal officer, a statement
13  indicating whether that person:
14  (A) has previously held or currently holds an
15  ownership interest in a cannabis business
16  establishment in Illinois; or
17  (B) has held an ownership interest in a dispensing
18  organization or its equivalent in another state or
19  territory of the United States that had the dispensing
20  organization registration or license suspended,
21  revoked, placed on probationary status, or subjected
22  to other disciplinary action;
23  (6) Disclosure of whether any principal officer has
24  ever filed for bankruptcy or defaulted on spousal support
25  or child support obligation;
26  (7) A resume for each principal officer, including

 

 

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1  whether that person has an academic degree, certification,
2  or relevant experience with a cannabis business
3  establishment or in a related industry;
4  (8) A description of the training and education that
5  will be provided to dispensing organization agents;
6  (9) A copy of the proposed operating bylaws;
7  (10) A copy of the proposed business plan that
8  complies with the requirements in this Act, including, at
9  a minimum, the following:
10  (A) A description of services to be offered; and
11  (B) A description of the process of dispensing
12  cannabis;
13  (11) A copy of the proposed security plan that
14  complies with the requirements in this Article, including:
15  (A) The process or controls that will be
16  implemented to monitor the dispensary, secure the
17  premises, agents, and currency, and prevent the
18  diversion, theft, or loss of cannabis; and
19  (B) The process to ensure that access to the
20  restricted access areas is restricted to, registered
21  agents, service professionals, transporting
22  organization agents, Department inspectors, and
23  security personnel;
24  (12) A proposed inventory control plan that complies
25  with this Section;
26  (13) A proposed floor plan, a square footage estimate,

 

 

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1  and a description of proposed security devices, including,
2  without limitation, cameras, motion detectors, servers,
3  video storage capabilities, and alarm service providers;
4  (14) The name, address, social security number, and
5  date of birth of each principal officer and board member
6  of the dispensing organization; each of those individuals
7  shall be at least 21 years of age;
8  (15) Evidence of the applicant's status as a Social
9  Equity Applicant, if applicable, and whether a Social
10  Equity Applicant plans to apply for a loan or grant issued
11  by the Department of Commerce and Economic Opportunity;
12  (16) The address, telephone number, and email address
13  of the applicant's principal place of business, if
14  applicable. A post office box is not permitted;
15  (17) Written summaries of any information regarding
16  instances in which a business or not-for-profit that a
17  prospective board member previously managed or served on
18  were fined or censured, or any instances in which a
19  business or not-for-profit that a prospective board member
20  previously managed or served on had its registration
21  suspended or revoked in any administrative or judicial
22  proceeding;
23  (18) A plan for community engagement;
24  (19) Procedures to ensure accurate recordkeeping and
25  security measures that are in accordance with this Article
26  and Department rules;

 

 

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1  (20) The estimated volume of cannabis it plans to
2  store at the dispensary;
3  (21) A description of the features that will provide
4  accessibility to purchasers as required by the Americans
5  with Disabilities Act;
6  (22) A detailed description of air treatment systems
7  that will be installed to reduce odors;
8  (23) A reasonable assurance that the issuance of a
9  license will not have a detrimental impact on the
10  community in which the applicant wishes to locate;
11  (24) The dated signature of each principal officer;
12  (25) A description of the enclosed, locked facility
13  where cannabis will be stored by the dispensing
14  organization;
15  (26) Signed statements from each dispensing
16  organization agent stating that he or she will not divert
17  cannabis;
18  (27) The number of licenses it is applying for in each
19  BLS Region;
20  (28) A diversity plan that includes a narrative of at
21  least 2,500 words that establishes a goal of diversity in
22  ownership, management, employment, and contracting to
23  ensure that diverse participants and groups are afforded
24  equality of opportunity;
25  (29) A contract with a private security contractor
26  agency that is licensed under Section 10-5 of the Private

 

 

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1  Detective, Private Alarm, Private Security, Fingerprint
2  Vendor, and Locksmith Act of 2004 in order for the
3  dispensary to have adequate security at its facility; and
4  (30) Other information deemed necessary by the
5  Illinois Cannabis Regulation Oversight Officer to conduct
6  the disparity and availability study referenced in
7  subsection (e) of Section 5-45.
8  (e) An applicant who receives a Conditional Adult Use
9  Dispensing Organization License under this Section has 180
10  days from the date of award to identify a physical location for
11  the dispensing organization retail storefront. The applicant
12  shall provide evidence that the location is not within 1,500
13  feet of an existing dispensing organization, unless the
14  applicant is a Social Equity Applicant or Social Equity
15  Justice Involved Applicant located or seeking to locate within
16  1,500 feet of a dispensing organization licensed under Section
17  15-15 or Section 15-20. If an applicant is unable to find a
18  suitable physical address in the opinion of the Department
19  within 180 days of the issuance of the Conditional Adult Use
20  Dispensing Organization License, the Department may extend the
21  period for finding a physical address an additional 540 days
22  if the Conditional Adult Use Dispensing Organization License
23  holder demonstrates concrete attempts to secure a location and
24  a hardship. If the Department denies the extension or the
25  Conditional Adult Use Dispensing Organization License holder
26  is unable to find a location within 720 days of being awarded a

 

 

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1  conditional license and then becomes operational within 120
2  days of finding a location, or is unable to become operational
3  within 720 days of being awarded a conditional license, the
4  Department shall rescind the conditional license and award it
5  to the next highest scoring applicant in the BLS Region for
6  which the license was assigned, provided the applicant
7  receiving the license: (i) confirms a continued interest in
8  operating a dispensing organization; (ii) can provide evidence
9  that the applicant continues to meet all requirements for
10  holding a Conditional Adult Use Dispensing Organization
11  License set forth in this Act; and (iii) has not otherwise
12  become ineligible to be awarded a dispensing organization
13  license. If the new awardee is unable to accept the
14  Conditional Adult Use Dispensing Organization License, the
15  Department shall award the Conditional Adult Use Dispensing
16  Organization License to the next highest scoring applicant in
17  the same manner. The new awardee shall be subject to the same
18  required deadlines as provided in this subsection.
19  (e-5) If, within 720 days of being awarded a Conditional
20  Adult Use Dispensing Organization License, a dispensing
21  organization is unable to find a location within the BLS
22  Region in which it was awarded a Conditional Adult Use
23  Dispensing Organization License because no jurisdiction within
24  the BLS Region allows for the operation of an Adult Use
25  Dispensing Organization, the Department of Financial and
26  Professional Regulation may authorize the Conditional Adult

 

 

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1  Use Dispensing Organization License holder to transfer its
2  license to a BLS Region specified by the Department.
3  (f) A dispensing organization that is awarded a
4  Conditional Adult Use Dispensing Organization License pursuant
5  to the criteria in Section 15-30 shall not purchase, possess,
6  sell, or dispense cannabis or cannabis-infused products until
7  the person has received an Adult Use Dispensing Organization
8  License issued by the Department pursuant to Section 15-36 of
9  this Act.
10  (g) The Department shall conduct a background check of the
11  prospective organization agents in order to carry out this
12  Article. The Illinois State Police shall charge the applicant
13  a fee for conducting the criminal history record check, which
14  shall be deposited into the State Police Services Fund and
15  shall not exceed the actual cost of the record check. Each
16  person applying as a dispensing organization agent shall
17  submit a full set of fingerprints to the Illinois State Police
18  for the purpose of obtaining a State and federal criminal
19  records check. These fingerprints shall be checked against the
20  fingerprint records now and hereafter, to the extent allowed
21  by law, filed in the Illinois State Police and Federal Bureau
22  of Identification criminal history records databases. The
23  Illinois State Police shall furnish, following positive
24  identification, all Illinois conviction information to the
25  Department.
26  (Source: P.A. 102-98, eff. 7-15-21; 102-538, eff. 8-20-21;

 

 

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1  102-813, eff. 5-13-22; 103-8, eff. 6-7-23.)
2  (410 ILCS 705/15-35)
3  Sec. 15-35. Qualifying Applicant Lottery for Conditional
4  Adult Use Dispensing Organization Licenses.
5  (a) In addition to any of the licenses issued under
6  Section 15-15, Section 15-20, Section 15-25, Section 15-30.20,
7  or Section 15-35.10 of this Act, within 10 business days after
8  the resulting final scores for all scored applications
9  pursuant to Sections 15-25 and 15-30 are released, the
10  Department shall issue up to 55 Conditional Adult Use
11  Dispensing Organization Licenses by lot, pursuant to the
12  application process adopted under this Section. In order to be
13  eligible to be awarded a Conditional Adult Use Dispensing
14  Organization License by lot under this Section, a Dispensary
15  Applicant must be a Qualifying Applicant.
16  The licenses issued under this Section shall be awarded in
17  each BLS Region in the following amounts:
18  (1) Bloomington: 1.
19  (2) Cape Girardeau: 1.
20  (3) Carbondale-Marion: 1.
21  (4) Champaign-Urbana: 1.
22  (5) Chicago-Naperville-Elgin: 36.
23  (6) Danville: 1.
24  (7) Davenport-Moline-Rock Island: 1.
25  (8) Decatur: 1.

 

 

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1  (9) Kankakee: 1.
2  (10) Peoria: 2.
3  (11) Rockford: 1.
4  (12) St. Louis: 3.
5  (13) Springfield: 1.
6  (14) Northwest Illinois nonmetropolitan: 1.
7  (15) West Central Illinois nonmetropolitan: 1.
8  (16) East Central Illinois nonmetropolitan: 1.
9  (17) South Illinois nonmetropolitan: 1.
10  (a-5) Prior to issuing licenses under subsection (a), the
11  Department may adopt rules through emergency rulemaking in
12  accordance with subsection (kk) of Section 5-45 of the
13  Illinois Administrative Procedure Act. The General Assembly
14  finds that the adoption of rules to regulate cannabis use is
15  deemed an emergency and necessary for the public interest,
16  safety, and welfare.
17  (b) The Department shall distribute the available licenses
18  established under this Section subject to the following:
19  (1) The drawing by lot for all available licenses
20  issued under this Section shall occur on the same day when
21  practicable.
22  (2) Within each BLS Region, the first Qualifying
23  Applicant drawn will have the first right to an available
24  license. The second Qualifying Applicant drawn will have
25  the second right to an available license. The same pattern
26  will continue for each subsequent Qualifying Applicant

 

 

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1  drawn.
2  (3) The process for distributing available licenses
3  under this Section shall be recorded by the Department in
4  a format selected by the Department.
5  (4) A Dispensary Applicant is prohibited from becoming
6  a Qualifying Applicant if a principal officer resigns
7  after the resulting final scores for all scored
8  applications pursuant to Sections 15-25 and 15-30 are
9  released.
10  (5) No Qualifying Applicant may be awarded more than 2
11  Conditional Adult Use Dispensing Organization Licenses at
12  the conclusion of a lottery conducted under this Section.
13  (6) No individual may be listed as a principal officer
14  of more than 2 Conditional Adult Use Dispensing
15  Organization Licenses awarded under this Section.
16  (7) If, upon being selected for an available license
17  established under this Section, a Qualifying Applicant
18  exceeds the limits under paragraph (5) or (6), the
19  Qualifying Applicant must choose which license to abandon
20  and notify the Department in writing within 5 business
21  days. If the Qualifying Applicant does not notify the
22  Department as required, the Department shall refuse to
23  issue the Qualifying Applicant all available licenses
24  established under this Section obtained by lot in all BLS
25  Regions.
26  (8) If, upon being selected for an available license

 

 

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1  established under this Section, a Qualifying Applicant has
2  a principal officer who is a principal officer in more
3  than 10 Early Approval Adult Use Dispensing Organization
4  Licenses, Conditional Adult Use Dispensing Organization
5  Licenses, Adult Use Dispensing Organization Licenses, or
6  any combination thereof, the licensees and the Qualifying
7  Applicant listing that principal officer must choose which
8  license to abandon pursuant to subsection (d) of Section
9  15-36 and notify the Department in writing within 5
10  business days. If the Qualifying Applicant or licensees do
11  not notify the Department as required, the Department
12  shall refuse to issue the Qualifying Applicant all
13  available licenses established under this Section obtained
14  by lot in all BLS Regions.
15  (9) All available licenses that have been abandoned
16  under paragraph (7) or (8) shall be distributed to the
17  next Qualifying Applicant drawn by lot.
18  Any and all rights conferred or obtained under this
19  Section shall be limited to the provisions of this Section.
20  (c) An applicant who receives a Conditional Adult Use
21  Dispensing Organization License under this Section has 180
22  days from the date it is awarded to identify a physical
23  location for the dispensing organization's retail storefront.
24  The applicant shall provide evidence that the location is not
25  within 1,500 feet of an existing dispensing organization,
26  unless the applicant is a Social Equity Applicant or Social

 

 

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1  Equity Justice Involved Applicant located or seeking to locate
2  within 1,500 feet of a dispensing organization licensed under
3  Section 15-15 or Section 15-20. If an applicant is unable to
4  find a suitable physical address in the opinion of the
5  Department within 180 days from the issuance of the
6  Conditional Adult Use Dispensing Organization License, the
7  Department may extend the period for finding a physical
8  address an additional 540 days if the Conditional Adult Use
9  Dispensing Organization License holder demonstrates a concrete
10  attempt to secure a location and a hardship. If the Department
11  denies the extension or the Conditional Adult Use Dispensing
12  Organization License holder is unable to find a location
13  within 720 days of being awarded a conditional license and
14  then becomes operational within 120 days of finding a
15  location, or is unable to become operational within 720 days
16  of being awarded a Conditional Adult Use Dispensing
17  Organization License under this Section, the Department shall
18  rescind the Conditional Adult Use Dispensing Organization
19  License and award it pursuant to subsection (b), provided the
20  applicant receiving the Conditional Adult Use Dispensing
21  Organization License: (i) confirms a continued interest in
22  operating a dispensing organization; (ii) can provide evidence
23  that the applicant continues to meet all requirements for
24  holding a Conditional Adult Use Dispensing Organization
25  License set forth in this Act; and (iii) has not otherwise
26  become ineligible to be awarded a Conditional Adult Use

 

 

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1  Dispensing Organization License. If the new awardee is unable
2  to accept the Conditional Adult Use Dispensing Organization
3  License, the Department shall award the Conditional Adult Use
4  Dispensing Organization License pursuant to subsection (b).
5  The new awardee shall be subject to the same required
6  deadlines as provided in this subsection.
7  (d) If, within 720 days of being awarded a Conditional
8  Adult Use Dispensing Organization License, a dispensing
9  organization is unable to find a location within the BLS
10  Region in which it was awarded a Conditional Adult Use
11  Dispensing Organization License because no jurisdiction within
12  the BLS Region allows for the operation of an Adult Use
13  Dispensing Organization, the Department may authorize the
14  Conditional Adult Use Dispensing Organization License holder
15  to transfer its Conditional Adult Use Dispensing Organization
16  License to a BLS Region specified by the Department.
17  (e) A dispensing organization that is awarded a
18  Conditional Adult Use Dispensing Organization License under
19  this Section shall not purchase, possess, sell, or dispense
20  cannabis or cannabis-infused products until the dispensing
21  organization has received an Adult Use Dispensing Organization
22  License issued by the Department pursuant to Section 15-36.
23  (f) The Department shall conduct a background check of the
24  prospective dispensing organization agents in order to carry
25  out this Article. The Illinois State Police shall charge the
26  applicant a fee for conducting the criminal history record

 

 

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1  check, which shall be deposited into the State Police Services
2  Fund and shall not exceed the actual cost of the record check.
3  Each person applying as a dispensing organization agent shall
4  submit a full set of fingerprints to the Illinois State Police
5  for the purpose of obtaining a State and federal criminal
6  records check. These fingerprints shall be checked against the
7  fingerprint records now and hereafter, to the extent allowed
8  by law, filed with the Illinois State Police and the Federal
9  Bureau of Investigation criminal history records databases.
10  The Illinois State Police shall furnish, following positive
11  identification, all Illinois conviction information to the
12  Department.
13  (g) The Department may verify information contained in
14  each application and accompanying documentation to assess the
15  applicant's veracity and fitness to operate a dispensing
16  organization.
17  (h) The Department may, in its discretion, refuse to issue
18  authorization to an applicant who meets any of the following
19  criteria:
20  (1) An applicant who is unqualified to perform the
21  duties required of the applicant.
22  (2) An applicant who fails to disclose or states
23  falsely any information called for in the application.
24  (3) An applicant who has been found guilty of a
25  violation of this Act, who has had any disciplinary order
26  entered against the applicant by the Department, who has

 

 

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1  entered into a disciplinary or nondisciplinary agreement
2  with the Department, whose medical cannabis dispensing
3  organization, medical cannabis cultivation organization,
4  Early Approval Adult Use Dispensing Organization License,
5  Early Approval Adult Use Dispensing Organization License
6  at a secondary site, Early Approval Cultivation Center
7  License, Conditional Adult Use Dispensing Organization
8  License, or Adult Use Dispensing Organization License was
9  suspended, restricted, revoked, or denied for just cause,
10  or whose cannabis business establishment license was
11  suspended, restricted, revoked, or denied in any other
12  state.
13  (4) An applicant who has engaged in a pattern or
14  practice of unfair or illegal practices, methods, or
15  activities in the conduct of owning a cannabis business
16  establishment or other business.
17  (i) The Department shall deny issuance of a license under
18  this Section if any principal officer, board member, or person
19  having a financial or voting interest of 5% or greater in the
20  licensee is delinquent in filing any required tax return or
21  paying any amount owed to the State of Illinois.
22  (j) The Department shall verify an applicant's compliance
23  with the requirements of this Article and rules adopted under
24  this Article before issuing a Conditional Adult Use Dispensing
25  Organization License under this Section.
26  (k) If an applicant is awarded a Conditional Adult Use

 

 

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1  Dispensing Organization License under this Section, the
2  information and plans provided in the application, including
3  any plans submitted for bonus points, shall become a condition
4  of the Conditional Adult Use Dispensing Organization License
5  and any Adult Use Dispensing Organization License issued to
6  the holder of the Conditional Adult Use Dispensing
7  Organization License, except as otherwise provided by this Act
8  or by rule. A dispensing organization has a duty to disclose
9  any material changes to the application. The Department shall
10  review all material changes disclosed by the dispensing
11  organization and may reevaluate its prior decision regarding
12  the awarding of a Conditional Adult Use Dispensing
13  Organization License, including, but not limited to,
14  suspending or permanently revoking a Conditional Adult Use
15  Dispensing Organization License. Failure to comply with the
16  conditions or requirements in the application may subject the
17  dispensing organization to discipline up to and including
18  suspension or permanent revocation of its authorization or
19  Conditional Adult Use Dispensing Organization License by the
20  Department.
21  (l) If an applicant has not begun operating as a
22  dispensing organization within one year after the issuance of
23  the Conditional Adult Use Dispensing Organization License
24  under this Section, the Department may permanently revoke the
25  Conditional Adult Use Dispensing Organization License and
26  award it to the next highest scoring applicant in the BLS

 

 

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1  Region if a suitable applicant indicates a continued interest
2  in the Conditional Adult Use Dispensing Organization License
3  or may begin a new selection process to award a Conditional
4  Adult Use Dispensing Organization License.
5  (Source: P.A. 102-98, eff. 7-15-21; 103-8, eff. 6-7-23.)
6  (410 ILCS 705/15-35.10)
7  Sec. 15-35.10. Social Equity Justice Involved Lottery for
8  Conditional Adult Use Dispensing Organization Licenses.
9  (a) In addition to any of the licenses issued under
10  Section 15-15, Section 15-20, Section 15-25, Section 15-30.20,
11  or Section 15-35, within 10 business days after the resulting
12  final scores for all scored applications pursuant to Sections
13  15-25 and 15-30 are released, the Department shall issue up to
14  55 Conditional Adult Use Dispensing Organization Licenses by
15  lot, pursuant to the application process adopted under this
16  Section. In order to be eligible to be awarded a Conditional
17  Adult Use Dispensing Organization License by lot, a Dispensary
18  Applicant must be a Qualifying Social Equity Justice Involved
19  Applicant.
20  The licenses issued under this Section shall be awarded in
21  each BLS Region in the following amounts:
22  (1) Bloomington: 1.
23  (2) Cape Girardeau: 1.
24  (3) Carbondale-Marion: 1.
25  (4) Champaign-Urbana: 1.

 

 

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1  (5) Chicago-Naperville-Elgin: 36.
2  (6) Danville: 1.
3  (7) Davenport-Moline-Rock Island: 1.
4  (8) Decatur: 1.
5  (9) Kankakee: 1.
6  (10) Peoria: 2.
7  (11) Rockford: 1.
8  (12) St. Louis: 3.
9  (13) Springfield: 1.
10  (14) Northwest Illinois nonmetropolitan: 1.
11  (15) West Central Illinois nonmetropolitan: 1.
12  (16) East Central Illinois nonmetropolitan: 1.
13  (17) South Illinois nonmetropolitan: 1.
14  (a-5) Prior to issuing licenses under subsection (a), the
15  Department may adopt rules through emergency rulemaking in
16  accordance with subsection (kk) of Section 5-45 of the
17  Illinois Administrative Procedure Act. The General Assembly
18  finds that the adoption of rules to regulate cannabis use is
19  deemed an emergency and necessary for the public interest,
20  safety, and welfare.
21  (b) The Department shall distribute the available licenses
22  established under this Section subject to the following:
23  (1) The drawing by lot for all available licenses
24  established under this Section shall occur on the same day
25  when practicable.
26  (2) Within each BLS Region, the first Qualifying

 

 

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1  Social Equity Justice Involved Applicant drawn will have
2  the first right to an available license. The second
3  Qualifying Social Equity Justice Involved Applicant drawn
4  will have the second right to an available license. The
5  same pattern will continue for each subsequent applicant
6  drawn.
7  (3) The process for distributing available licenses
8  under this Section shall be recorded by the Department in
9  a format selected by the Department.
10  (4) A Dispensary Applicant is prohibited from becoming
11  a Qualifying Social Equity Justice Involved Applicant if a
12  principal officer resigns after the resulting final scores
13  for all scored applications pursuant to Sections 15-25 and
14  15-30 are released.
15  (5) No Qualifying Social Equity Justice Involved
16  Applicant may be awarded more than 2 Conditional Adult Use
17  Dispensing Organization Licenses at the conclusion of a
18  lottery conducted under this Section.
19  (6) No individual may be listed as a principal officer
20  of more than 2 Conditional Adult Use Dispensing
21  Organization Licenses awarded under this Section.
22  (7) If, upon being selected for an available license
23  established under this Section, a Qualifying Social Equity
24  Justice Involved Applicant exceeds the limits under
25  paragraph (5) or (6), the Qualifying Social Equity Justice
26  Involved Applicant must choose which license to abandon

 

 

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1  and notify the Department in writing within 5 business
2  days on forms prescribed by the Department. If the
3  Qualifying Social Equity Justice Involved Applicant does
4  not notify the Department as required, the Department
5  shall refuse to issue the Qualifying Social Equity Justice
6  Involved Applicant all available licenses established
7  under this Section obtained by lot in all BLS Regions.
8  (8) If, upon being selected for an available license
9  established under this Section, a Qualifying Social Equity
10  Justice Involved Applicant has a principal officer who is
11  a principal officer in more than 10 Early Approval Adult
12  Use Dispensing Organization Licenses, Conditional Adult
13  Use Dispensing Organization Licenses, Adult Use Dispensing
14  Organization Licenses, or any combination thereof, the
15  licensees and the Qualifying Social Equity Justice
16  Involved Applicant listing that principal officer must
17  choose which license to abandon pursuant to subsection (d)
18  of Section 15-36 and notify the Department in writing
19  within 5 business days on forms prescribed by the
20  Department. If the Dispensary Applicant or licensees do
21  not notify the Department as required, the Department
22  shall refuse to issue the Qualifying Social Equity Justice
23  Involved Applicant all available licenses established
24  under this Section obtained by lot in all BLS Regions.
25  (9) All available licenses that have been abandoned
26  under paragraph (7) or (8) shall be distributed to the

 

 

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1  next Qualifying Social Equity Justice Involved Applicant
2  drawn by lot.
3  Any and all rights conferred or obtained under this
4  subsection shall be limited to the provisions of this
5  subsection.
6  (c) An applicant who receives a Conditional Adult Use
7  Dispensing Organization License under this Section has 180
8  days from the date of the award to identify a physical location
9  for the dispensing organization's retail storefront. The
10  applicant shall provide evidence that the location is not
11  within 1,500 feet of an existing dispensing organization,
12  unless the applicant is a Social Equity Applicant or Social
13  Equity Justice Involved Applicant located or seeking to locate
14  within 1,500 feet of a dispensing organization licensed under
15  Section 15-15 or Section 15-20. If an applicant is unable to
16  find a suitable physical address in the opinion of the
17  Department within 180 days from the issuance of the
18  Conditional Adult Use Dispensing Organization License, the
19  Department may extend the period for finding a physical
20  address an additional 540 days if the Conditional Adult Use
21  Dispensing Organization License holder demonstrates a concrete
22  attempt to secure a location and a hardship. If the Department
23  denies the extension or the Conditional Adult Use Dispensing
24  Organization License holder is unable to find a location
25  within 720 days of being awarded a conditional license and
26  then becomes operational within 120 days of finding a

 

 

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1  location, or is unable to become operational within 720 days
2  of being awarded a Conditional Adult Use Dispensing
3  Organization License under this Section, the Department shall
4  rescind the Conditional Adult Use Dispensing Organization
5  License and award it pursuant to subsection (b) and notify the
6  new awardee at the email address provided in the awardee's
7  application, provided the applicant receiving the Conditional
8  Adult Use Dispensing Organization License: (i) confirms a
9  continued interest in operating a dispensing organization;
10  (ii) can provide evidence that the applicant continues to meet
11  all requirements for holding a Conditional Adult Use
12  Dispensing Organization License set forth in this Act; and
13  (iii) has not otherwise become ineligible to be awarded a
14  Conditional Adult Use Dispensing Organization License. If the
15  new awardee is unable to accept the Conditional Adult Use
16  Dispensing Organization License, the Department shall award
17  the Conditional Adult Use Dispensing Organization License
18  pursuant to subsection (b). The new awardee shall be subject
19  to the same required deadlines as provided in this subsection.
20  (d) If, within 720 180 days of being awarded a Conditional
21  Adult Use Dispensing Organization License, a dispensing
22  organization is unable to find a location within the BLS
23  Region in which it was awarded a Conditional Adult Use
24  Dispensing Organization License under this Section because no
25  jurisdiction within the BLS Region allows for the operation of
26  an Adult Use Dispensing Organization, the Department may

 

 

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1  authorize the Conditional Adult Use Dispensing Organization
2  License holder to transfer its Conditional Adult Use
3  Dispensing Organization License to a BLS Region specified by
4  the Department.
5  (e) A dispensing organization that is awarded a
6  Conditional Adult Use Dispensing Organization License under
7  this Section shall not purchase, possess, sell, or dispense
8  cannabis or cannabis-infused products until the dispensing
9  organization has received an Adult Use Dispensing Organization
10  License issued by the Department pursuant to Section 15-36.
11  (f) The Department shall conduct a background check of the
12  prospective dispensing organization agents in order to carry
13  out this Article. The Illinois State Police shall charge the
14  applicant a fee for conducting the criminal history record
15  check, which shall be deposited into the State Police Services
16  Fund and shall not exceed the actual cost of the record check.
17  Each person applying as a dispensing organization agent shall
18  submit a full set of fingerprints to the Illinois State Police
19  for the purpose of obtaining a State and federal criminal
20  records check. These fingerprints shall be checked against the
21  fingerprint records now and hereafter, to the extent allowed
22  by law, filed with the Illinois State Police and the Federal
23  Bureau of Investigation criminal history records databases.
24  The Illinois State Police shall furnish, following positive
25  identification, all Illinois conviction information to the
26  Department.

 

 

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1  (g) The Department may verify information contained in
2  each application and accompanying documentation to assess the
3  applicant's veracity and fitness to operate a dispensing
4  organization.
5  (h) The Department may, in its discretion, refuse to issue
6  an authorization to an applicant who meets any of the
7  following criteria:
8  (1) An applicant who is unqualified to perform the
9  duties required of the applicant.
10  (2) An applicant who fails to disclose or states
11  falsely any information called for in the application.
12  (3) An applicant who has been found guilty of a
13  violation of this Act, who has had any disciplinary order
14  entered against the applicant by the Department, who has
15  entered into a disciplinary or nondisciplinary agreement
16  with the Department, whose medical cannabis dispensing
17  organization, medical cannabis cultivation organization,
18  Early Approval Adult Use Dispensing Organization License,
19  Early Approval Adult Use Dispensing Organization License
20  at a secondary site, Early Approval Cultivation Center
21  License, Conditional Adult Use Dispensing Organization
22  License, or Adult Use Dispensing Organization License was
23  suspended, restricted, revoked, or denied for just cause,
24  or whose cannabis business establishment license was
25  suspended, restricted, revoked, or denied in any other
26  state.

 

 

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1  (4) An applicant who has engaged in a pattern or
2  practice of unfair or illegal practices, methods, or
3  activities in the conduct of owning a cannabis business
4  establishment or other business.
5  (i) The Department shall deny the license if any principal
6  officer, board member, or person having a financial or voting
7  interest of 5% or greater in the licensee is delinquent in
8  filing any required tax return or paying any amount owed to the
9  State of Illinois.
10  (j) The Department shall verify an applicant's compliance
11  with the requirements of this Article and rules adopted under
12  this Article before issuing a Conditional Adult Use Dispensing
13  Organization License.
14  (k) If an applicant is awarded a Conditional Adult Use
15  Dispensing Organization License under this Section, the
16  information and plans provided in the application, including
17  any plans submitted for bonus points, shall become a condition
18  of the Conditional Adult Use Dispensing Organization License
19  and any Adult Use Dispensing Organization License issued to
20  the holder of the Conditional Adult Use Dispensing
21  Organization License, except as otherwise provided by this Act
22  or by rule. Dispensing organizations have a duty to disclose
23  any material changes to the application. The Department shall
24  review all material changes disclosed by the dispensing
25  organization and may reevaluate its prior decision regarding
26  the awarding of a Conditional Adult Use Dispensing

 

 

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1  Organization License, including, but not limited to,
2  suspending or permanently revoking a Conditional Adult Use
3  Dispensing Organization License. Failure to comply with the
4  conditions or requirements in the application may subject the
5  dispensing organization to discipline up to and including
6  suspension or permanent revocation of its authorization or
7  Conditional Adult Use Dispensing Organization License by the
8  Department.
9  (l) If an applicant has not begun operating as a
10  dispensing organization within one year after the issuance of
11  the Conditional Adult Use Dispensing Organization License
12  under this Section, the Department may permanently revoke the
13  Conditional Adult Use Dispensing Organization License and
14  award it to the next highest scoring applicant in the BLS
15  Region if a suitable applicant indicates a continued interest
16  in the Conditional Adult Use Dispensing Organization License
17  or may begin a new selection process to award a Conditional
18  Adult Use Dispensing Organization License.
19  (Source: P.A. 102-98, eff. 7-15-21; 103-8, eff. 6-7-23.)
20  (410 ILCS 705/15-36)
21  Sec. 15-36. Adult Use Dispensing Organization License.
22  (a) A person is only eligible to receive or hold an Adult
23  Use Dispensing Organization if the person has been awarded a
24  Conditional Adult Use Dispensing Organization License pursuant
25  to this Act or has renewed its license pursuant to Section

 

 

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1  15-45 subsection (k) of Section 15-15 or subsection (p) of
2  Section 15-20.
3  (a-5) Beginning January 1, 2025, all dispensing
4  organizations registered under the Compassionate Use of
5  Medical Cannabis Program Act and Section 15-15 and 15-20 shall
6  be a "dispensing organization" or a "dispensary" as those
7  terms are defined in this Act and shall be an adult use
8  dispensing organization license holder under this Section.
9  Beginning on the effective date of this amendatory Act of the
10  103rd General Assembly, all dispensing organizations
11  registered under the Compassionate Use of Medical Cannabis
12  Program Act and Section 15-15 and 15-20 shall have the same
13  rights, privileges, duties, and responsibilities of dispensing
14  organizations licensed pursuant to this Section and shall be
15  subject to the rules this Act.
16  (a-10) Beginning January 1, 2025, all adult use dispensing
17  organization licensees shall sell cannabis and
18  cannabis-infused products to both persons 21 years of age or
19  older and to persons who are a registered qualifying medical
20  cannabis patient, provisional patient, or designated
21  caregiver.
22  (a-15) By April 1, 2025, all dispensing organizations
23  licensed under Section 15-36 shall pay the fee under
24  subsection (d) of Section 15-10 or shall have entered into an
25  approved payment plan with the Department to pay the fee.
26  (b) The Department shall not issue an Adult Use Dispensing

 

 

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1  Organization License until:
2  (1) the Department has inspected the dispensary site
3  and proposed operations and verified that they are in
4  compliance with this Act and local zoning laws;
5  (2) the Conditional Adult Use Dispensing Organization
6  License holder has paid a license fee of $70,000 $60,000
7  or a prorated amount accounting for the difference of time
8  between when the Adult Use Dispensing Organization License
9  is issued and March 31 of the next even-numbered year and
10  $60,000, or the proportional prorated amount paid, shall
11  be remitted into the Cannabis Business Development Fund
12  and $10,000, or the proportional prorated amount paid,
13  shall be remitted into the Compassionate Use of Medical
14  Cannabis Fund; and
15  (3) the Conditional Adult Use Dispensing Organization
16  License holder has met all the requirements in this Act
17  and rules.
18  (c) No person or entity shall hold any legal, equitable,
19  ownership, or beneficial interest, directly or indirectly, of
20  more than 10 dispensing organizations licensed under this
21  Article. Further, no person or entity that is:
22  (1) employed by, is an agent of, or participates in
23  the management of a dispensing organization or registered
24  medical cannabis dispensing organization;
25  (2) a principal officer of a dispensing organization
26  or registered medical cannabis dispensing organization; or

 

 

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1  (3) an entity controlled by or affiliated with a
2  principal officer of a dispensing organization or
3  registered medical cannabis dispensing organization;
4  shall hold any legal, equitable, ownership, or beneficial
5  interest, directly or indirectly, in a dispensing organization
6  that would result in such person or entity owning or
7  participating in the management of more than 10 Early Approval
8  Adult Use Dispensing Organization Licenses, Early Approval
9  Adult Use Dispensing Organization Licenses at a secondary
10  site, Conditional Adult Use Dispensing Organization Licenses,
11  or Adult Use Dispensing Organization Licenses. For the purpose
12  of this subsection, participating in management may include,
13  without limitation, controlling decisions regarding staffing,
14  pricing, purchasing, marketing, store design, hiring, and
15  website design.
16  (d) The Department shall deny an application if granting
17  that application would result in a person or entity obtaining
18  direct or indirect financial interest in more than 10 Early
19  Approval Adult Use Dispensing Organization Licenses,
20  Conditional Adult Use Dispensing Organization Licenses, Adult
21  Use Dispensing Organization Licenses, or any combination
22  thereof. If a person or entity is awarded a Conditional Adult
23  Use Dispensing Organization License that would cause the
24  person or entity to be in violation of this subsection, he,
25  she, or it shall choose which license application it wants to
26  abandon and such licenses shall become available to the next

 

 

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1  qualified applicant in the region in which the abandoned
2  license was awarded.
3  (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
4  (410 ILCS 705/15-70)
5  Sec. 15-70. Operational requirements; prohibitions.
6  (a) A dispensing organization shall operate in accordance
7  with the representations made in its application and license
8  materials. It shall be in compliance with this Act and rules.
9  (b) A dispensing organization must include the legal name
10  of the dispensary on the packaging of any cannabis product it
11  sells.
12  (c) All cannabis, cannabis-infused products, and cannabis
13  seeds must be obtained from an Illinois registered adult use
14  cultivation center, craft grower, infuser, or another
15  dispensary.
16  (c-5) A dispensing organization may sell cannabis and
17  cannabis-infused products purchased from any cultivation
18  center, craft grower, infuser, or other dispensary to persons
19  over 21 years of age and to qualifying patients, designated
20  caregivers, and provisional patients.
21  (d) Dispensing organizations are prohibited from selling
22  any product containing alcohol except tinctures, which must be
23  limited to containers that are no larger than 100 milliliters.
24  (e) A dispensing organization shall inspect and count
25  product received from a transporting organization, adult use

 

 

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1  cultivation center, craft grower, infuser organization, or
2  other dispensing organization before dispensing it.
3  (f) A dispensing organization may only accept cannabis
4  deliveries into a restricted access area. Deliveries may not
5  be accepted through the public or limited access areas unless
6  otherwise approved by the Department.
7  (g) A dispensing organization shall maintain compliance
8  with State and local building, fire, and zoning requirements
9  or regulations.
10  (h) A dispensing organization shall submit a list to the
11  Department of the names of all service professionals that will
12  work at the dispensary. The list shall include a description
13  of the type of business or service provided. Changes to the
14  service professional list shall be promptly provided. No
15  service professional shall work in the dispensary until the
16  name is provided to the Department on the service professional
17  list.
18  (i) A dispensing organization's license allows for a
19  dispensary to be operated only at a single location.
20  (j) A dispensary may operate between 6 a.m. and 10 p.m.
21  local time.
22  (k) A dispensing organization must keep all lighting
23  outside and inside the dispensary in good working order and
24  wattage sufficient for security cameras.
25  (l) A dispensing organization must keep all air treatment
26  systems that will be installed to reduce odors in good working

 

 

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1  order.
2  (m) A dispensing organization must contract with a private
3  security contractor that is licensed under Section 10-5 of the
4  Private Detective, Private Alarm, Private Security,
5  Fingerprint Vendor, and Locksmith Act of 2004 to provide
6  on-site security at all hours of the dispensary's operation.
7  (n) A dispensing organization shall ensure that any
8  building or equipment used by a dispensing organization for
9  the storage or sale of cannabis is maintained in a clean and
10  sanitary condition.
11  (o) The dispensary shall be free from infestation by
12  insects, rodents, or pests.
13  (p) A dispensing organization shall not:
14  (1) Produce or manufacture cannabis;
15  (2) Accept a cannabis product from a an adult use
16  cultivation center, craft grower, infuser, dispensing
17  organization, or transporting organization unless it is
18  pre-packaged and labeled in accordance with this Act and
19  any rules that may be adopted pursuant to this Act;
20  (3) Obtain cannabis or cannabis-infused products from
21  outside the State of Illinois;
22  (4) Sell cannabis or cannabis-infused products to a
23  purchaser unless the purchaser is a qualified patient,
24  designated caregiver, or provisional patient the
25  dispensing organization is licensed under the
26  Compassionate Use of Medical Cannabis Program Act, and the

 

 

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1  individual is registered under the Compassionate Use of
2  Medical Cannabis Program or the purchaser has been
3  verified to be 21 years of age or older;
4  (5) Enter into an exclusive agreement with any adult
5  use cultivation center, craft grower, or infuser.
6  Dispensaries shall provide consumers an assortment of
7  products from various cannabis business establishment
8  licensees such that the inventory available for sale at
9  any dispensary from any single cultivation center, craft
10  grower, processor, transporter, or infuser entity shall
11  not be more than 40% of the total inventory available for
12  sale. For the purpose of this subsection, a cultivation
13  center, craft grower, processor, or infuser shall be
14  considered part of the same entity if the licensees share
15  at least one principal officer. The Department may request
16  that a dispensary diversify its products as needed or
17  otherwise discipline a dispensing organization for
18  violating this requirement;
19  (6) Refuse to conduct business with an adult use
20  cultivation center, craft grower, transporting
21  organization, or infuser that has the ability to properly
22  deliver the product and is permitted by the Department of
23  Agriculture, on the same terms as other adult use
24  cultivation centers, craft growers, infusers, or
25  transporters with whom it is dealing;
26  (7) (Blank) Operate drive-through windows;

 

 

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1  (8) Allow for the dispensing of cannabis or
2  cannabis-infused products in vending machines;
3  (9) Transport cannabis to residences or transport
4  cannabis to other locations where purchasers may be for
5  delivery, except for the limited circumstances provided in
6  paragraph (5.5) of subsection (c) of Section 15-100;
7  (10) Enter into agreements to allow persons who are
8  not dispensing organization agents to deliver cannabis or
9  to transport cannabis to purchasers;
10  (11) Operate a dispensary if its video surveillance
11  equipment is inoperative;
12  (12) Operate a dispensary if the point-of-sale
13  equipment is inoperative;
14  (13) Operate a dispensary if the State's cannabis
15  electronic verification system is inoperative;
16  (14) Have fewer than 2 people working at the
17  dispensary at any time while the dispensary is open;
18  (15) Be located within 1,500 feet of the property line
19  of a pre-existing dispensing organization, unless the
20  applicant is a Social Equity Applicant or Social Equity
21  Justice Involved Applicant located or seeking to locate
22  within 1,500 feet of a dispensing organization licensed
23  under Section 15-15 or Section 15-20;
24  (16) Sell seeds, clones, or any other live plant
25  material, except to a registered qualifying medical
26  cannabis patient or designated caregiver;

 

 

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1  (17) Sell cannabis, cannabis concentrate, or
2  cannabis-infused products in combination or bundled with
3  each other or any other items for one price, and each item
4  of cannabis, concentrate, or cannabis-infused product must
5  be separately identified by quantity and price on the
6  receipt;
7  (18) Violate any other requirements or prohibitions
8  set by Department rules.
9  (q) It is unlawful for any person having an Early Approval
10  Adult Use Cannabis Dispensing Organization License, a
11  Conditional Adult Use Cannabis Dispensing Organization, an
12  Adult Use Dispensing Organization License, or a medical
13  cannabis dispensing organization license issued under the
14  Compassionate Use of Medical Cannabis Program Act or any
15  officer, associate, member, representative, or agent of such
16  licensee to accept, receive, or borrow money or anything else
17  of value or accept or receive credit (other than merchandising
18  credit in the ordinary course of business for a period not to
19  exceed 30 days) directly or indirectly from any adult use
20  cultivation center, craft grower, infuser, or transporting
21  organization in exchange for preferential placement on the
22  dispensing organization's shelves, display cases, or website.
23  This includes anything received or borrowed or from any
24  stockholders, officers, agents, or persons connected with an
25  adult use cultivation center, craft grower, infuser, or
26  transporting organization.

 

 

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1  (r) It is unlawful for any person having an Early Approval
2  Adult Use Cannabis Dispensing Organization License, a
3  Conditional Adult Use Cannabis Dispensing Organization, an
4  Adult Use Dispensing Organization License, or a medical
5  cannabis dispensing organization license issued under the
6  Compassionate Use of Medical Cannabis Program to enter into
7  any contract with any person licensed to cultivate, process,
8  or transport cannabis whereby such dispensing organization
9  agrees not to sell any cannabis cultivated, processed,
10  transported, manufactured, or distributed by any other
11  cultivator, transporter, or infuser, and any provision in any
12  contract violative of this Section shall render the whole of
13  such contract void and no action shall be brought thereon in
14  any court.
15  (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
16  102-98, eff. 7-15-21.)
17  (410 ILCS 705/15-85)
18  Sec. 15-85. Dispensing cannabis.
19  (a) Before a dispensing organization agent dispenses
20  cannabis to a purchaser, the agent shall:
21  (1) Verify the age of the purchaser by checking a
22  government-issued identification card by use of an
23  electronic reader or electronic scanning device to scan a
24  purchaser's government-issued identification, if
25  applicable, to determine the purchaser's age and the

 

 

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1  validity of the identification;
2  (2) Verify the validity of the government-issued
3  identification card by use of an electronic reader or
4  electronic scanning device to scan a purchaser's
5  government-issued identification, if applicable, to
6  determine the purchaser's age and the validity of the
7  identification;
8  (3) Offer any appropriate purchaser education or
9  support materials;
10  (3.5) Verify the qualifying patient, provisional
11  patient, or designated caregiver registration card, if
12  applicable;
13  (4) Enter the following information into the State's
14  cannabis electronic verification system:
15  (i) The dispensing organization agent's
16  identification number, or if the agent's card
17  application is pending the Department's approval, a
18  temporary and unique identifier until the agent's card
19  application is approved or denied by the Department;
20  (ii) The dispensing organization's identification
21  number;
22  (iii) The amount, type (including strain, if
23  applicable) of cannabis or cannabis-infused product
24  dispensed;
25  (iv) The date and time the cannabis was dispensed.
26  (b) A dispensing organization shall refuse to sell

 

 

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1  cannabis or cannabis-infused products to any person unless the
2  person produces a valid identification showing that the person
3  is 21 years of age or older. A medical cannabis dispensing
4  organization may sell cannabis or cannabis-infused products to
5  a person who is under 21 years of age if the sale complies with
6  the provisions of the Compassionate Use of Medical Cannabis
7  Program Act and this Act rules.
8  (c) For the purposes of this Section, valid identification
9  must:
10  (1) Be valid and unexpired;
11  (2) Contain a photograph and the date of birth of the
12  person.
13  (d) Notwithstanding any other provision of law, a
14  dispensing organization may offer pickup or drive-through
15  locations of cannabis or cannabis-infused products to
16  purchasers over 21 years or age, qualifying patients,
17  provisional patients, and designated caregivers, in accordance
18  with Section 15-100.
19  (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
20  102-98, eff. 7-15-21.)
21  (410 ILCS 705/15-100)
22  Sec. 15-100. Security.
23  (a) A dispensing organization shall implement security
24  measures to deter and prevent entry into and theft of cannabis
25  or currency.

 

 

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1  (b) A dispensing organization shall submit any changes to
2  the floor plan or security plan to the Department for
3  pre-approval. All cannabis shall be maintained and stored in a
4  restricted access area during construction.
5  (c) The dispensing organization shall implement security
6  measures to protect the premises, purchasers, and dispensing
7  organization agents including, but not limited to the
8  following:
9  (1) Establish a locked door or barrier between the
10  facility's entrance and the limited access area;
11  (2) Prevent individuals from remaining on the premises
12  if they are not engaging in activity permitted by this Act
13  or rules;
14  (3) Develop a policy that addresses the maximum
15  capacity and purchaser flow in the waiting rooms and
16  limited access areas;
17  (4) Dispose of cannabis in accordance with this Act
18  and rules;
19  (5) During hours of operation, store and dispense all
20  cannabis in from the restricted access area. During
21  operational hours, cannabis shall be stored in an enclosed
22  locked room or cabinet and accessible only to specifically
23  authorized dispensing organization agents;
24  (5.5) During hours of operation, dispense all cannabis
25  from the restricted access area, including a drive-through
26  window, or from a pickup location in close proximity to

 

 

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1  the restricted access area if (i) all orders in a pickup or
2  drive-through location must be placed in advance, (ii) no
3  in-person or on-site ordering is permitted for a pickup or
4  drive-through location, and (iii) dispensing organizations
5  confirm that the purchaser, registered qualifying patient,
6  provisional patient, or designated caregiver complies with
7  Section 15-85; as used in this paragraph, "pickup location
8  in close proximity" means an area contiguous to the real
9  property of the dispensary, such as a sidewalk or parking
10  lot;
11  (6) When the dispensary is closed, store all cannabis
12  and currency in a reinforced vault room in the restricted
13  access area and in a manner as to prevent diversion,
14  theft, or loss;
15  (7) Keep the reinforced vault room and any other
16  equipment or cannabis storage areas securely locked and
17  protected from unauthorized entry;
18  (8) Keep an electronic daily log of dispensing
19  organization agents with access to the reinforced vault
20  room and knowledge of the access code or combination;
21  (9) Keep all locks and security equipment in good
22  working order;
23  (10) Maintain an operational security and alarm system
24  at all times;
25  (11) Prohibit keys, if applicable, from being left in
26  the locks, or stored or placed in a location accessible to

 

 

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1  persons other than specifically authorized personnel;
2  (12) Prohibit accessibility of security measures,
3  including combination numbers, passwords, or electronic or
4  biometric security systems to persons other than
5  specifically authorized dispensing organization agents;
6  (13) Ensure that the dispensary interior and exterior
7  premises are sufficiently lit to facilitate surveillance;
8  (14) Ensure that trees, bushes, and other foliage
9  outside of the dispensary premises do not allow for a
10  person or persons to conceal themselves from sight;
11  (15) Develop emergency policies and procedures for
12  securing all product and currency following any instance
13  of diversion, theft, or loss of cannabis, and conduct an
14  assessment to determine whether additional safeguards are
15  necessary; and
16  (16) Develop sufficient additional safeguards in
17  response to any special security concerns, or as required
18  by the Department.
19  (d) The Department may request or approve alternative
20  security provisions that it determines are an adequate
21  substitute for a security requirement specified in this
22  Article. Any additional protections may be considered by the
23  Department in evaluating overall security measures.
24  (e) A dispensing organization may share premises with a
25  craft grower or an infuser organization, or both, provided
26  each licensee stores currency and cannabis or cannabis-infused

 

 

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1  products in a separate secured vault to which the other
2  licensee does not have access or all licensees sharing a vault
3  share more than 50% of the same ownership.
4  (f) A dispensing organization shall provide additional
5  security as needed and in a manner appropriate for the
6  community where it operates.
7  (g) Restricted access areas.
8  (1) All restricted access areas must be identified by
9  the posting of a sign that is a minimum of 12 inches by 12
10  inches and that states "Do Not Enter - Restricted Access
11  Area - Authorized Personnel Only" in lettering no smaller
12  than one inch in height.
13  (2) All restricted access areas shall be clearly
14  described in the floor plan of the premises, in the form
15  and manner determined by the Department, reflecting walls,
16  partitions, counters, and all areas of entry and exit. The
17  floor plan shall show all storage, disposal, and retail
18  sales areas.
19  (3) All restricted access areas must be secure, with
20  locking devices that prevent access from the limited
21  access areas.
22  (h) Security and alarm.
23  (1) A dispensing organization shall have an adequate
24  security plan and security system to prevent and detect
25  diversion, theft, or loss of cannabis, currency, or
26  unauthorized intrusion using commercial grade equipment

 

 

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1  installed by an Illinois licensed private alarm contractor
2  or private alarm contractor agency that shall, at a
3  minimum, include:
4  (i) A perimeter alarm on all entry points and
5  glass break protection on perimeter windows;
6  (ii) Security shatterproof tinted film on exterior
7  windows;
8  (iii) A failure notification system that provides
9  an audible, text, or visual notification of any
10  failure in the surveillance system, including, but not
11  limited to, panic buttons, alarms, and video
12  monitoring system. The failure notification system
13  shall provide an alert to designated dispensing
14  organization agents within 5 minutes after the
15  failure, either by telephone or text message;
16  (iv) A duress alarm, panic button, and alarm, or
17  holdup alarm and after-hours intrusion detection alarm
18  that by design and purpose will directly or indirectly
19  notify, by the most efficient means, the Public Safety
20  Answering Point for the law enforcement agency having
21  primary jurisdiction;
22  (v) Security equipment to deter and prevent
23  unauthorized entrance into the dispensary, including
24  electronic door locks on the limited and restricted
25  access areas that include devices or a series of
26  devices to detect unauthorized intrusion that may

 

 

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1  include a signal system interconnected with a radio
2  frequency method, cellular, private radio signals or
3  other mechanical or electronic device.
4  (2) All security system equipment and recordings shall
5  be maintained in good working order, in a secure location
6  so as to prevent theft, loss, destruction, or alterations.
7  (3) Access to surveillance monitoring recording
8  equipment shall be limited to persons who are essential to
9  surveillance operations, law enforcement authorities
10  acting within their jurisdiction, security system service
11  personnel, and the Department. A current list of
12  authorized dispensing organization agents and service
13  personnel that have access to the surveillance equipment
14  must be available to the Department upon request.
15  (4) All security equipment shall be inspected and
16  tested at regular intervals, not to exceed one month from
17  the previous inspection, and tested to ensure the systems
18  remain functional.
19  (5) The security system shall provide protection
20  against theft and diversion that is facilitated or hidden
21  by tampering with computers or electronic records.
22  (6) The dispensary shall ensure all access doors are
23  not solely controlled by an electronic access panel to
24  ensure that locks are not released during a power outage.
25  (i) To monitor the dispensary, the dispensing organization
26  shall incorporate continuous electronic video monitoring

 

 

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1  including the following:
2  (1) All monitors must be 19 inches or greater;
3  (2) Unobstructed video surveillance of all enclosed
4  dispensary areas, unless prohibited by law, including all
5  points of entry and exit that shall be appropriate for the
6  normal lighting conditions of the area under surveillance.
7  The cameras shall be directed so all areas are captured,
8  including, but not limited to, safes, vaults, sales areas,
9  and areas where cannabis is stored, handled, dispensed, or
10  destroyed. Cameras shall be angled to allow for facial
11  recognition, the capture of clear and certain
12  identification of any person entering or exiting the
13  dispensary area and in lighting sufficient during all
14  times of night or day;
15  (3) Unobstructed video surveillance of outside areas,
16  the storefront, and the parking lot, that shall be
17  appropriate for the normal lighting conditions of the area
18  under surveillance. Cameras shall be angled so as to allow
19  for the capture of facial recognition, clear and certain
20  identification of any person entering or exiting the
21  dispensary and the immediate surrounding area, and license
22  plates of vehicles in the parking lot;
23  (4) 24-hour recordings from all video cameras
24  available for immediate viewing by the Department upon
25  request. Recordings shall not be destroyed or altered and
26  shall be retained for at least 90 days. Recordings shall

 

 

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1  be retained as long as necessary if the dispensing
2  organization is aware of the loss or theft of cannabis or a
3  pending criminal, civil, or administrative investigation
4  or legal proceeding for which the recording may contain
5  relevant information;
6  (5) The ability to immediately produce a clear, color
7  still photo from the surveillance video, either live or
8  recorded;
9  (6) A date and time stamp embedded on all video
10  surveillance recordings. The date and time shall be
11  synchronized and set correctly and shall not significantly
12  obscure the picture;
13  (7) The ability to remain operational during a power
14  outage and ensure all access doors are not solely
15  controlled by an electronic access panel to ensure that
16  locks are not released during a power outage;
17  (8) All video surveillance equipment shall allow for
18  the exporting of still images in an industry standard
19  image format, including .jpg, .bmp, and .gif. Exported
20  video shall have the ability to be archived in a
21  proprietary format that ensures authentication of the
22  video and guarantees that no alteration of the recorded
23  image has taken place. Exported video shall also have the
24  ability to be saved in an industry standard file format
25  that can be played on a standard computer operating
26  system. All recordings shall be erased or destroyed before

 

 

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1  disposal;
2  (9) The video surveillance system shall be operational
3  during a power outage with a 4-hour minimum battery
4  backup;
5  (10) A video camera or cameras recording at each
6  point-of-sale location allowing for the identification of
7  the dispensing organization agent distributing the
8  cannabis and any purchaser. The camera or cameras shall
9  capture the sale, the individuals and the computer
10  monitors used for the sale;
11  (11) A failure notification system that provides an
12  audible and visual notification of any failure in the
13  electronic video monitoring system; and
14  (12) All electronic video surveillance monitoring must
15  record at least the equivalent of 8 frames per second and
16  be available as recordings to the Department and the
17  Illinois State Police 24 hours a day via a secure
18  web-based portal with reverse functionality.
19  (j) The requirements contained in this Act are minimum
20  requirements for operating a dispensing organization. The
21  Department may establish additional requirements by rule.
22  (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
23  102-538, eff. 8-20-21.)
24  (410 ILCS 705/55-30)
25  Sec. 55-30. Confidentiality.

 

 

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1  (a) Information provided by the cannabis business
2  establishment licensees or applicants to the Department of
3  Agriculture, the Department of Public Health, the Department
4  of Financial and Professional Regulation, the Department of
5  Commerce and Economic Opportunity, or other agency shall be
6  limited to information necessary for the purposes of
7  administering this Act. The information is subject to the
8  provisions and limitations contained in the Freedom of
9  Information Act and may be disclosed in accordance with
10  Section 55-65.
11  (b) The following information received and records kept by
12  the Department of Agriculture, the Department of Public
13  Health, the Illinois State Police, and the Department of
14  Financial and Professional Regulation for purposes of
15  administering this Article are subject to all applicable
16  federal privacy laws, are confidential and exempt from
17  disclosure under the Freedom of Information Act, except as
18  provided in this Act, and not subject to disclosure to any
19  individual or public or private entity, except to the
20  Department of Financial and Professional Regulation, the
21  Department of Agriculture, the Department of Public Health,
22  the Department of Commerce and Economic Opportunity, the
23  Office of Executive Inspector General, and the Illinois State
24  Police as necessary to perform official duties under this
25  Article and to the Attorney General as necessary to enforce
26  the provisions of this Act and except as necessary to those

 

 

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1  involved in enforcing the State Officials and Employees Ethics
2  Act. The following information received and kept by the
3  Department of Financial and Professional Regulation or the
4  Department of Agriculture may be disclosed to the Department
5  of Public Health, the Department of Agriculture, the
6  Department of Revenue, the Department of Commerce and Economic
7  Opportunity, the Illinois State Police, the Office of
8  Executive Inspector General, or the Attorney General upon
9  proper request:
10  (1) Applications and renewals, their contents, and
11  supporting information submitted by or on behalf of
12  dispensing organizations, cannabis business
13  establishments, or Community College Cannabis Vocational
14  Program licensees, in compliance with this Article,
15  including their physical addresses; however, this does not
16  preclude the release of ownership information about
17  cannabis business establishment licenses, or information
18  submitted with an application required to be disclosed
19  pursuant to subsection (f);
20  (2) Any plans, procedures, policies, or other records
21  relating to cannabis business establishment security; and
22  (3) Information otherwise exempt from disclosure by
23  State or federal law.
24  Illinois or national criminal history record information,
25  or the nonexistence or lack of such information, may not be
26  disclosed by the Department of Financial and Professional

 

 

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1  Regulation or the Department of Agriculture, except as
2  necessary to the Attorney General to enforce this Act.
3  (c) The name and address of a dispensing organization
4  licensed under this Act shall be subject to disclosure under
5  the Freedom of Information Act. The name and cannabis business
6  establishment address of the person or entity holding each
7  cannabis business establishment license shall be subject to
8  disclosure.
9  (d) All information collected by the Department of
10  Financial and Professional Regulation or the Department of
11  Agriculture in the course of an examination, inspection, or
12  investigation of a licensee or applicant, including, but not
13  limited to, any complaint against a licensee or applicant
14  filed with the Department of Financial and Professional
15  Regulation or the Department of Agriculture and information
16  collected to investigate any such complaint, shall be
17  maintained for the confidential use of the Department of
18  Financial and Professional Regulation or the Department of
19  Agriculture and shall not be disclosed, except to those
20  involved in enforcing the State Officials and Employees Ethics
21  Act and as otherwise provided in this Act. A formal complaint
22  against a licensee by the Department of Financial and
23  Professional Regulation or the Department of Agriculture or
24  any disciplinary order issued by the Department of Financial
25  and Professional Regulation or the Department of Agriculture
26  against a licensee or applicant shall be a public record,

 

 

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1  except as otherwise provided by law. Complaints from consumers
2  or members of the general public received regarding a
3  specific, named licensee or complaints regarding conduct by
4  unlicensed entities shall be subject to disclosure under the
5  Freedom of Information Act.
6  (e) The Department of Agriculture, the Illinois State
7  Police, and the Department of Financial and Professional
8  Regulation shall not share or disclose any Illinois or
9  national criminal history record information, or the
10  nonexistence or lack of such information, to any person or
11  entity not expressly authorized by this Act.
12  (f) Each Department responsible for licensure under this
13  Act shall publish on the Department's website a list of the
14  ownership information of cannabis business establishment
15  licensees under the Department's jurisdiction. The list shall
16  include, but is not limited to: the name of the person or
17  entity holding each cannabis business establishment license;
18  and the address at which the entity is operating under this
19  Act. This list shall be published and updated monthly.
20  (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
21  102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
22  5-13-22.)
23  (410 ILCS 705/55-65)
24  Sec. 55-65. Financial institutions.
25  (a) A financial institution that provides financial

 

 

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1  services customarily provided by financial institutions to a
2  cannabis business establishment authorized under this Act or
3  the Compassionate Use of Medical Cannabis Program Act, or to a
4  person that is affiliated with such cannabis business
5  establishment, is exempt from any criminal law of this State
6  as it relates to cannabis-related conduct authorized under
7  State law.
8  (b) Upon request of a financial institution, a cannabis
9  business establishment or proposed cannabis business
10  establishment may provide to the financial institution the
11  following information:
12  (1) Whether a cannabis business establishment with
13  which the financial institution is doing or is considering
14  doing business holds a license under this Act or the
15  Compassionate Use of Medical Cannabis Program Act;
16  (2) The name of any other business or individual
17  affiliate with the cannabis business establishment;
18  (3) A copy of the application, and any supporting
19  documentation submitted with the application, for a
20  license or a permit submitted on behalf of the proposed
21  cannabis business establishment;
22  (4) If applicable, data relating to sales and the
23  volume of product sold by the cannabis business
24  establishment;
25  (5) Any past or pending violation by the person of
26  this Act, the Compassionate Use of Medical Cannabis

 

 

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1  Program Act, or the rules adopted under these Acts where
2  applicable; and
3  (6) Any penalty imposed upon the person for violating
4  this Act, the Compassionate Use of Medical Cannabis
5  Program Act, or the rules adopted under these Acts.
6  (c) (Blank).
7  (d) (Blank).
8  (e) Information received by a financial institution under
9  this Section is confidential. Except as otherwise required or
10  permitted by this Act, State law or rule, or federal law or
11  regulation, a financial institution may not make the
12  information available to any person other than:
13  (1) the customer to whom the information applies;
14  (2) a trustee, conservator, guardian, personal
15  representative, or agent of the customer to whom the
16  information applies; a federal or State regulator when
17  requested in connection with an examination of the
18  financial institution or if otherwise necessary for
19  complying with federal or State law;
20  (3) a federal or State regulator when requested in
21  connection with an examination of the financial
22  institution or if otherwise necessary for complying with
23  federal or State law; and
24  (4) a third party performing services for the
25  financial institution, provided the third party is
26  performing such services under a written agreement that

 

 

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1  expressly or by operation of law prohibits the third
2  party's sharing and use of such confidential information
3  for any purpose other than as provided in its agreement to
4  provide services to the financial institution; and .
5  (5) the Office of Executive Inspector General pursuant
6  to an investigation.
7  (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
8  (410 ILCS 705/15-10 rep.)
9  Section 40. The Cannabis Regulation and Tax Act is amended
10  by repealing Section 15-10.
11  Section 99. Effective date. This Act takes effect upon
12  becoming law.
SB3941- 207 -LRB103 40497 RJT 72953 b 1 INDEX 2 Statutes amended in order of appearance 3 20 ILCS 2105/2105-1174 35 ILCS 105/3-105 35 ILCS 110/3-10from Ch. 120, par. 439.33-106 35 ILCS 115/3-10from Ch. 120, par. 439.103-107 35 ILCS 120/2-108 410 ILCS 130/79 410 ILCS 130/1010 410 ILCS 130/2511 410 ILCS 130/3012 410 ILCS 130/3513 410 ILCS 130/5714 410 ILCS 130/7015 410 ILCS 130/8516 410 ILCS 130/10517 410 ILCS 130/11518 410 ILCS 130/115.519 410 ILCS 130/12020 410 ILCS 130/13021 410 ILCS 130/14522 410 ILCS 130/15023 410 ILCS 130/16524 410 ILCS 130/17025 410 ILCS 130/180  SB3941- 208 -LRB103 40497 RJT 72953 b  SB3941- 207 -LRB103 40497 RJT 72953 b   SB3941 - 207 - LRB103 40497 RJT 72953 b  1  INDEX 2  Statutes amended in order of appearance  3  20 ILCS 2105/2105-117   4  35 ILCS 105/3-10   5  35 ILCS 110/3-10 from Ch. 120, par. 439.33-10  6  35 ILCS 115/3-10 from Ch. 120, par. 439.103-10  7  35 ILCS 120/2-10   8  410 ILCS 130/7   9  410 ILCS 130/10   10  410 ILCS 130/25   11  410 ILCS 130/30   12  410 ILCS 130/35   13  410 ILCS 130/57   14  410 ILCS 130/70   15  410 ILCS 130/85   16  410 ILCS 130/105   17  410 ILCS 130/115   18  410 ILCS 130/115.5   19  410 ILCS 130/120   20  410 ILCS 130/130   21  410 ILCS 130/145   22  410 ILCS 130/150   23  410 ILCS 130/165   24  410 ILCS 130/170   25  410 ILCS 130/180    SB3941- 208 -LRB103 40497 RJT 72953 b   SB3941 - 208 - LRB103 40497 RJT 72953 b
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1  INDEX
2  Statutes amended in order of appearance
3  20 ILCS 2105/2105-117
4  35 ILCS 105/3-10
5  35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
6  35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
7  35 ILCS 120/2-10
8  410 ILCS 130/7
9  410 ILCS 130/10
10  410 ILCS 130/25
11  410 ILCS 130/30
12  410 ILCS 130/35
13  410 ILCS 130/57
14  410 ILCS 130/70
15  410 ILCS 130/85
16  410 ILCS 130/105
17  410 ILCS 130/115
18  410 ILCS 130/115.5
19  410 ILCS 130/120
20  410 ILCS 130/130
21  410 ILCS 130/145
22  410 ILCS 130/150
23  410 ILCS 130/165
24  410 ILCS 130/170
25  410 ILCS 130/180
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  SB3941 - 208 - LRB103 40497 RJT 72953 b

 

 

  SB3941 - 206 - LRB103 40497 RJT 72953 b



SB3941- 207 -LRB103 40497 RJT 72953 b   SB3941 - 207 - LRB103 40497 RJT 72953 b
  SB3941 - 207 - LRB103 40497 RJT 72953 b
1  INDEX
2  Statutes amended in order of appearance
3  20 ILCS 2105/2105-117
4  35 ILCS 105/3-10
5  35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
6  35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
7  35 ILCS 120/2-10
8  410 ILCS 130/7
9  410 ILCS 130/10
10  410 ILCS 130/25
11  410 ILCS 130/30
12  410 ILCS 130/35
13  410 ILCS 130/57
14  410 ILCS 130/70
15  410 ILCS 130/85
16  410 ILCS 130/105
17  410 ILCS 130/115
18  410 ILCS 130/115.5
19  410 ILCS 130/120
20  410 ILCS 130/130
21  410 ILCS 130/145
22  410 ILCS 130/150
23  410 ILCS 130/165
24  410 ILCS 130/170
25  410 ILCS 130/180

 

 

  SB3941 - 207 - LRB103 40497 RJT 72953 b


SB3941- 208 -LRB103 40497 RJT 72953 b   SB3941 - 208 - LRB103 40497 RJT 72953 b
  SB3941 - 208 - LRB103 40497 RJT 72953 b

 

 

  SB3941 - 208 - LRB103 40497 RJT 72953 b