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. LRB103 40497 RJT 72953 b LRB103 40497 RJT 72953 b LRB103 40497 RJT 72953 b A BILL FOR SB3941LRB103 40497 RJT 72953 b SB3941 LRB103 40497 RJT 72953 b SB3941 LRB103 40497 RJT 72953 b 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. LRB103 40497 RJT 72953 b LRB103 40497 RJT 72953 b LRB103 40497 RJT 72953 b A BILL FOR See Index LRB103 40497 RJT 72953 b SB3941 LRB103 40497 RJT 72953 b SB3941- 2 -LRB103 40497 RJT 72953 b SB3941 - 2 - LRB103 40497 RJT 72953 b SB3941 - 2 - LRB103 40497 RJT 72953 b 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 SB3941 - 2 - LRB103 40497 RJT 72953 b SB3941- 3 -LRB103 40497 RJT 72953 b SB3941 - 3 - LRB103 40497 RJT 72953 b SB3941 - 3 - LRB103 40497 RJT 72953 b 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% SB3941 - 3 - LRB103 40497 RJT 72953 b SB3941- 4 -LRB103 40497 RJT 72953 b SB3941 - 4 - LRB103 40497 RJT 72953 b SB3941 - 4 - LRB103 40497 RJT 72953 b 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 SB3941 - 4 - LRB103 40497 RJT 72953 b SB3941- 5 -LRB103 40497 RJT 72953 b SB3941 - 5 - LRB103 40497 RJT 72953 b SB3941 - 5 - LRB103 40497 RJT 72953 b 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 SB3941 - 5 - LRB103 40497 RJT 72953 b SB3941- 6 -LRB103 40497 RJT 72953 b SB3941 - 6 - LRB103 40497 RJT 72953 b SB3941 - 6 - LRB103 40497 RJT 72953 b 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 SB3941 - 6 - LRB103 40497 RJT 72953 b SB3941- 7 -LRB103 40497 RJT 72953 b SB3941 - 7 - LRB103 40497 RJT 72953 b SB3941 - 7 - LRB103 40497 RJT 72953 b 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 SB3941 - 7 - LRB103 40497 RJT 72953 b SB3941- 8 -LRB103 40497 RJT 72953 b SB3941 - 8 - LRB103 40497 RJT 72953 b SB3941 - 8 - LRB103 40497 RJT 72953 b 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 SB3941 - 8 - LRB103 40497 RJT 72953 b SB3941- 9 -LRB103 40497 RJT 72953 b SB3941 - 9 - LRB103 40497 RJT 72953 b SB3941 - 9 - LRB103 40497 RJT 72953 b 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 SB3941 - 9 - LRB103 40497 RJT 72953 b SB3941- 10 -LRB103 40497 RJT 72953 b SB3941 - 10 - LRB103 40497 RJT 72953 b SB3941 - 10 - LRB103 40497 RJT 72953 b 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 SB3941 - 10 - LRB103 40497 RJT 72953 b SB3941- 11 -LRB103 40497 RJT 72953 b SB3941 - 11 - LRB103 40497 RJT 72953 b SB3941 - 11 - LRB103 40497 RJT 72953 b 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. SB3941 - 11 - LRB103 40497 RJT 72953 b SB3941- 12 -LRB103 40497 RJT 72953 b SB3941 - 12 - LRB103 40497 RJT 72953 b SB3941 - 12 - LRB103 40497 RJT 72953 b 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 SB3941 - 12 - LRB103 40497 RJT 72953 b SB3941- 13 -LRB103 40497 RJT 72953 b SB3941 - 13 - LRB103 40497 RJT 72953 b SB3941 - 13 - LRB103 40497 RJT 72953 b 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 SB3941 - 13 - LRB103 40497 RJT 72953 b SB3941- 14 -LRB103 40497 RJT 72953 b SB3941 - 14 - LRB103 40497 RJT 72953 b SB3941 - 14 - LRB103 40497 RJT 72953 b 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 SB3941 - 14 - LRB103 40497 RJT 72953 b SB3941- 15 -LRB103 40497 RJT 72953 b SB3941 - 15 - LRB103 40497 RJT 72953 b SB3941 - 15 - LRB103 40497 RJT 72953 b 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 SB3941 - 15 - LRB103 40497 RJT 72953 b SB3941- 16 -LRB103 40497 RJT 72953 b SB3941 - 16 - LRB103 40497 RJT 72953 b SB3941 - 16 - LRB103 40497 RJT 72953 b 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. SB3941 - 16 - LRB103 40497 RJT 72953 b SB3941- 17 -LRB103 40497 RJT 72953 b SB3941 - 17 - LRB103 40497 RJT 72953 b SB3941 - 17 - LRB103 40497 RJT 72953 b 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 SB3941 - 17 - LRB103 40497 RJT 72953 b SB3941- 18 -LRB103 40497 RJT 72953 b SB3941 - 18 - LRB103 40497 RJT 72953 b SB3941 - 18 - LRB103 40497 RJT 72953 b 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 SB3941 - 18 - LRB103 40497 RJT 72953 b SB3941- 19 -LRB103 40497 RJT 72953 b SB3941 - 19 - LRB103 40497 RJT 72953 b SB3941 - 19 - LRB103 40497 RJT 72953 b 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 SB3941 - 19 - LRB103 40497 RJT 72953 b SB3941- 20 -LRB103 40497 RJT 72953 b SB3941 - 20 - LRB103 40497 RJT 72953 b SB3941 - 20 - LRB103 40497 RJT 72953 b 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 SB3941 - 20 - LRB103 40497 RJT 72953 b SB3941- 21 -LRB103 40497 RJT 72953 b SB3941 - 21 - LRB103 40497 RJT 72953 b SB3941 - 21 - LRB103 40497 RJT 72953 b 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 SB3941 - 21 - LRB103 40497 RJT 72953 b SB3941- 22 -LRB103 40497 RJT 72953 b SB3941 - 22 - LRB103 40497 RJT 72953 b SB3941 - 22 - LRB103 40497 RJT 72953 b 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 SB3941 - 22 - LRB103 40497 RJT 72953 b SB3941- 23 -LRB103 40497 RJT 72953 b SB3941 - 23 - LRB103 40497 RJT 72953 b SB3941 - 23 - LRB103 40497 RJT 72953 b 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 SB3941 - 23 - LRB103 40497 RJT 72953 b SB3941- 24 -LRB103 40497 RJT 72953 b SB3941 - 24 - LRB103 40497 RJT 72953 b SB3941 - 24 - LRB103 40497 RJT 72953 b 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 SB3941 - 24 - LRB103 40497 RJT 72953 b SB3941- 25 -LRB103 40497 RJT 72953 b SB3941 - 25 - LRB103 40497 RJT 72953 b SB3941 - 25 - LRB103 40497 RJT 72953 b 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 SB3941 - 25 - LRB103 40497 RJT 72953 b SB3941- 26 -LRB103 40497 RJT 72953 b SB3941 - 26 - LRB103 40497 RJT 72953 b SB3941 - 26 - LRB103 40497 RJT 72953 b 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 SB3941 - 26 - LRB103 40497 RJT 72953 b SB3941- 27 -LRB103 40497 RJT 72953 b SB3941 - 27 - LRB103 40497 RJT 72953 b SB3941 - 27 - LRB103 40497 RJT 72953 b 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 SB3941 - 27 - LRB103 40497 RJT 72953 b SB3941- 28 -LRB103 40497 RJT 72953 b SB3941 - 28 - LRB103 40497 RJT 72953 b SB3941 - 28 - LRB103 40497 RJT 72953 b 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% SB3941 - 28 - LRB103 40497 RJT 72953 b SB3941- 29 -LRB103 40497 RJT 72953 b SB3941 - 29 - LRB103 40497 RJT 72953 b SB3941 - 29 - LRB103 40497 RJT 72953 b 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 SB3941 - 29 - LRB103 40497 RJT 72953 b SB3941- 30 -LRB103 40497 RJT 72953 b SB3941 - 30 - LRB103 40497 RJT 72953 b SB3941 - 30 - LRB103 40497 RJT 72953 b 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 SB3941 - 30 - LRB103 40497 RJT 72953 b SB3941- 31 -LRB103 40497 RJT 72953 b SB3941 - 31 - LRB103 40497 RJT 72953 b SB3941 - 31 - LRB103 40497 RJT 72953 b 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 SB3941 - 31 - LRB103 40497 RJT 72953 b SB3941- 32 -LRB103 40497 RJT 72953 b SB3941 - 32 - LRB103 40497 RJT 72953 b SB3941 - 32 - LRB103 40497 RJT 72953 b 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 SB3941 - 32 - LRB103 40497 RJT 72953 b SB3941- 33 -LRB103 40497 RJT 72953 b SB3941 - 33 - LRB103 40497 RJT 72953 b SB3941 - 33 - LRB103 40497 RJT 72953 b 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 SB3941 - 33 - LRB103 40497 RJT 72953 b SB3941- 34 -LRB103 40497 RJT 72953 b SB3941 - 34 - LRB103 40497 RJT 72953 b SB3941 - 34 - LRB103 40497 RJT 72953 b 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 SB3941 - 34 - LRB103 40497 RJT 72953 b SB3941- 35 -LRB103 40497 RJT 72953 b SB3941 - 35 - LRB103 40497 RJT 72953 b SB3941 - 35 - LRB103 40497 RJT 72953 b 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 SB3941 - 35 - LRB103 40497 RJT 72953 b SB3941- 36 -LRB103 40497 RJT 72953 b SB3941 - 36 - LRB103 40497 RJT 72953 b SB3941 - 36 - LRB103 40497 RJT 72953 b 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 SB3941 - 36 - LRB103 40497 RJT 72953 b SB3941- 37 -LRB103 40497 RJT 72953 b SB3941 - 37 - LRB103 40497 RJT 72953 b SB3941 - 37 - LRB103 40497 RJT 72953 b 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 SB3941 - 37 - LRB103 40497 RJT 72953 b SB3941- 38 -LRB103 40497 RJT 72953 b SB3941 - 38 - LRB103 40497 RJT 72953 b SB3941 - 38 - LRB103 40497 RJT 72953 b 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 SB3941 - 38 - LRB103 40497 RJT 72953 b SB3941- 39 -LRB103 40497 RJT 72953 b SB3941 - 39 - LRB103 40497 RJT 72953 b SB3941 - 39 - LRB103 40497 RJT 72953 b 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". SB3941 - 39 - LRB103 40497 RJT 72953 b SB3941- 40 -LRB103 40497 RJT 72953 b SB3941 - 40 - LRB103 40497 RJT 72953 b SB3941 - 40 - LRB103 40497 RJT 72953 b 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 SB3941 - 40 - LRB103 40497 RJT 72953 b SB3941- 41 -LRB103 40497 RJT 72953 b SB3941 - 41 - LRB103 40497 RJT 72953 b SB3941 - 41 - LRB103 40497 RJT 72953 b 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 SB3941 - 41 - LRB103 40497 RJT 72953 b SB3941- 42 -LRB103 40497 RJT 72953 b SB3941 - 42 - LRB103 40497 RJT 72953 b SB3941 - 42 - LRB103 40497 RJT 72953 b 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 SB3941 - 42 - LRB103 40497 RJT 72953 b SB3941- 43 -LRB103 40497 RJT 72953 b SB3941 - 43 - LRB103 40497 RJT 72953 b SB3941 - 43 - LRB103 40497 RJT 72953 b 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. SB3941 - 43 - LRB103 40497 RJT 72953 b SB3941- 44 -LRB103 40497 RJT 72953 b SB3941 - 44 - LRB103 40497 RJT 72953 b SB3941 - 44 - LRB103 40497 RJT 72953 b 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 SB3941 - 44 - LRB103 40497 RJT 72953 b SB3941- 45 -LRB103 40497 RJT 72953 b SB3941 - 45 - LRB103 40497 RJT 72953 b SB3941 - 45 - LRB103 40497 RJT 72953 b 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 SB3941 - 45 - LRB103 40497 RJT 72953 b SB3941- 46 -LRB103 40497 RJT 72953 b SB3941 - 46 - LRB103 40497 RJT 72953 b SB3941 - 46 - LRB103 40497 RJT 72953 b 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 SB3941 - 46 - LRB103 40497 RJT 72953 b SB3941- 47 -LRB103 40497 RJT 72953 b SB3941 - 47 - LRB103 40497 RJT 72953 b SB3941 - 47 - LRB103 40497 RJT 72953 b 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 SB3941 - 47 - LRB103 40497 RJT 72953 b SB3941- 48 -LRB103 40497 RJT 72953 b SB3941 - 48 - LRB103 40497 RJT 72953 b SB3941 - 48 - LRB103 40497 RJT 72953 b 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. SB3941 - 48 - LRB103 40497 RJT 72953 b SB3941- 49 -LRB103 40497 RJT 72953 b SB3941 - 49 - LRB103 40497 RJT 72953 b SB3941 - 49 - LRB103 40497 RJT 72953 b 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 SB3941 - 49 - LRB103 40497 RJT 72953 b SB3941- 50 -LRB103 40497 RJT 72953 b SB3941 - 50 - LRB103 40497 RJT 72953 b SB3941 - 50 - LRB103 40497 RJT 72953 b 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 SB3941 - 50 - LRB103 40497 RJT 72953 b SB3941- 51 -LRB103 40497 RJT 72953 b SB3941 - 51 - LRB103 40497 RJT 72953 b SB3941 - 51 - LRB103 40497 RJT 72953 b 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 SB3941 - 51 - LRB103 40497 RJT 72953 b SB3941- 52 -LRB103 40497 RJT 72953 b SB3941 - 52 - LRB103 40497 RJT 72953 b SB3941 - 52 - LRB103 40497 RJT 72953 b 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; SB3941 - 52 - LRB103 40497 RJT 72953 b SB3941- 53 -LRB103 40497 RJT 72953 b SB3941 - 53 - LRB103 40497 RJT 72953 b SB3941 - 53 - LRB103 40497 RJT 72953 b 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 SB3941 - 53 - LRB103 40497 RJT 72953 b SB3941- 54 -LRB103 40497 RJT 72953 b SB3941 - 54 - LRB103 40497 RJT 72953 b SB3941 - 54 - LRB103 40497 RJT 72953 b 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; SB3941 - 54 - LRB103 40497 RJT 72953 b SB3941- 55 -LRB103 40497 RJT 72953 b SB3941 - 55 - LRB103 40497 RJT 72953 b SB3941 - 55 - LRB103 40497 RJT 72953 b 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 SB3941 - 55 - LRB103 40497 RJT 72953 b SB3941- 56 -LRB103 40497 RJT 72953 b SB3941 - 56 - LRB103 40497 RJT 72953 b SB3941 - 56 - LRB103 40497 RJT 72953 b 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.) SB3941 - 56 - LRB103 40497 RJT 72953 b SB3941- 57 -LRB103 40497 RJT 72953 b SB3941 - 57 - LRB103 40497 RJT 72953 b SB3941 - 57 - LRB103 40497 RJT 72953 b 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 SB3941 - 57 - LRB103 40497 RJT 72953 b SB3941- 58 -LRB103 40497 RJT 72953 b SB3941 - 58 - LRB103 40497 RJT 72953 b SB3941 - 58 - LRB103 40497 RJT 72953 b 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 SB3941 - 58 - LRB103 40497 RJT 72953 b SB3941- 59 -LRB103 40497 RJT 72953 b SB3941 - 59 - LRB103 40497 RJT 72953 b SB3941 - 59 - LRB103 40497 RJT 72953 b 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. SB3941 - 59 - LRB103 40497 RJT 72953 b SB3941- 60 -LRB103 40497 RJT 72953 b SB3941 - 60 - LRB103 40497 RJT 72953 b SB3941 - 60 - LRB103 40497 RJT 72953 b 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. SB3941 - 60 - LRB103 40497 RJT 72953 b SB3941- 61 -LRB103 40497 RJT 72953 b SB3941 - 61 - LRB103 40497 RJT 72953 b SB3941 - 61 - LRB103 40497 RJT 72953 b 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; SB3941 - 61 - LRB103 40497 RJT 72953 b SB3941- 62 -LRB103 40497 RJT 72953 b SB3941 - 62 - LRB103 40497 RJT 72953 b SB3941 - 62 - LRB103 40497 RJT 72953 b 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 SB3941 - 62 - LRB103 40497 RJT 72953 b SB3941- 63 -LRB103 40497 RJT 72953 b SB3941 - 63 - LRB103 40497 RJT 72953 b SB3941 - 63 - LRB103 40497 RJT 72953 b 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: SB3941 - 63 - LRB103 40497 RJT 72953 b SB3941- 64 -LRB103 40497 RJT 72953 b SB3941 - 64 - LRB103 40497 RJT 72953 b SB3941 - 64 - LRB103 40497 RJT 72953 b 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 SB3941 - 64 - LRB103 40497 RJT 72953 b SB3941- 65 -LRB103 40497 RJT 72953 b SB3941 - 65 - LRB103 40497 RJT 72953 b SB3941 - 65 - LRB103 40497 RJT 72953 b 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 SB3941 - 65 - LRB103 40497 RJT 72953 b SB3941- 66 -LRB103 40497 RJT 72953 b SB3941 - 66 - LRB103 40497 RJT 72953 b SB3941 - 66 - LRB103 40497 RJT 72953 b 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 SB3941 - 66 - LRB103 40497 RJT 72953 b SB3941- 67 -LRB103 40497 RJT 72953 b SB3941 - 67 - LRB103 40497 RJT 72953 b SB3941 - 67 - LRB103 40497 RJT 72953 b 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 SB3941 - 67 - LRB103 40497 RJT 72953 b SB3941- 68 -LRB103 40497 RJT 72953 b SB3941 - 68 - LRB103 40497 RJT 72953 b SB3941 - 68 - LRB103 40497 RJT 72953 b 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 SB3941 - 68 - LRB103 40497 RJT 72953 b SB3941- 69 -LRB103 40497 RJT 72953 b SB3941 - 69 - LRB103 40497 RJT 72953 b SB3941 - 69 - LRB103 40497 RJT 72953 b 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 SB3941 - 69 - LRB103 40497 RJT 72953 b SB3941- 70 -LRB103 40497 RJT 72953 b SB3941 - 70 - LRB103 40497 RJT 72953 b SB3941 - 70 - LRB103 40497 RJT 72953 b 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: SB3941 - 70 - LRB103 40497 RJT 72953 b SB3941- 71 -LRB103 40497 RJT 72953 b SB3941 - 71 - LRB103 40497 RJT 72953 b SB3941 - 71 - LRB103 40497 RJT 72953 b 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 SB3941 - 71 - LRB103 40497 RJT 72953 b SB3941- 72 -LRB103 40497 RJT 72953 b SB3941 - 72 - LRB103 40497 RJT 72953 b SB3941 - 72 - LRB103 40497 RJT 72953 b 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. SB3941 - 72 - LRB103 40497 RJT 72953 b SB3941- 73 -LRB103 40497 RJT 72953 b SB3941 - 73 - LRB103 40497 RJT 72953 b SB3941 - 73 - LRB103 40497 RJT 72953 b 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 SB3941 - 73 - LRB103 40497 RJT 72953 b SB3941- 74 -LRB103 40497 RJT 72953 b SB3941 - 74 - LRB103 40497 RJT 72953 b SB3941 - 74 - LRB103 40497 RJT 72953 b 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; SB3941 - 74 - LRB103 40497 RJT 72953 b SB3941- 75 -LRB103 40497 RJT 72953 b SB3941 - 75 - LRB103 40497 RJT 72953 b SB3941 - 75 - LRB103 40497 RJT 72953 b 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 SB3941 - 75 - LRB103 40497 RJT 72953 b SB3941- 76 -LRB103 40497 RJT 72953 b SB3941 - 76 - LRB103 40497 RJT 72953 b SB3941 - 76 - LRB103 40497 RJT 72953 b 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. SB3941 - 76 - LRB103 40497 RJT 72953 b SB3941- 77 -LRB103 40497 RJT 72953 b SB3941 - 77 - LRB103 40497 RJT 72953 b SB3941 - 77 - LRB103 40497 RJT 72953 b 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 SB3941 - 77 - LRB103 40497 RJT 72953 b SB3941- 78 -LRB103 40497 RJT 72953 b SB3941 - 78 - LRB103 40497 RJT 72953 b SB3941 - 78 - LRB103 40497 RJT 72953 b 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 SB3941 - 78 - LRB103 40497 RJT 72953 b SB3941- 79 -LRB103 40497 RJT 72953 b SB3941 - 79 - LRB103 40497 RJT 72953 b SB3941 - 79 - LRB103 40497 RJT 72953 b 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 SB3941 - 79 - LRB103 40497 RJT 72953 b SB3941- 80 -LRB103 40497 RJT 72953 b SB3941 - 80 - LRB103 40497 RJT 72953 b SB3941 - 80 - LRB103 40497 RJT 72953 b 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' SB3941 - 80 - LRB103 40497 RJT 72953 b SB3941- 81 -LRB103 40497 RJT 72953 b SB3941 - 81 - LRB103 40497 RJT 72953 b SB3941 - 81 - LRB103 40497 RJT 72953 b 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 SB3941 - 81 - LRB103 40497 RJT 72953 b SB3941- 82 -LRB103 40497 RJT 72953 b SB3941 - 82 - LRB103 40497 RJT 72953 b SB3941 - 82 - LRB103 40497 RJT 72953 b 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 SB3941 - 82 - LRB103 40497 RJT 72953 b SB3941- 83 -LRB103 40497 RJT 72953 b SB3941 - 83 - LRB103 40497 RJT 72953 b SB3941 - 83 - LRB103 40497 RJT 72953 b 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 SB3941 - 83 - LRB103 40497 RJT 72953 b SB3941- 84 -LRB103 40497 RJT 72953 b SB3941 - 84 - LRB103 40497 RJT 72953 b SB3941 - 84 - LRB103 40497 RJT 72953 b 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 SB3941 - 84 - LRB103 40497 RJT 72953 b SB3941- 85 -LRB103 40497 RJT 72953 b SB3941 - 85 - LRB103 40497 RJT 72953 b SB3941 - 85 - LRB103 40497 RJT 72953 b 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 SB3941 - 85 - LRB103 40497 RJT 72953 b SB3941- 86 -LRB103 40497 RJT 72953 b SB3941 - 86 - LRB103 40497 RJT 72953 b SB3941 - 86 - LRB103 40497 RJT 72953 b 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 SB3941 - 86 - LRB103 40497 RJT 72953 b SB3941- 87 -LRB103 40497 RJT 72953 b SB3941 - 87 - LRB103 40497 RJT 72953 b SB3941 - 87 - LRB103 40497 RJT 72953 b 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 SB3941 - 87 - LRB103 40497 RJT 72953 b SB3941- 88 -LRB103 40497 RJT 72953 b SB3941 - 88 - LRB103 40497 RJT 72953 b SB3941 - 88 - LRB103 40497 RJT 72953 b 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. SB3941 - 88 - LRB103 40497 RJT 72953 b SB3941- 89 -LRB103 40497 RJT 72953 b SB3941 - 89 - LRB103 40497 RJT 72953 b SB3941 - 89 - LRB103 40497 RJT 72953 b 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 SB3941 - 89 - LRB103 40497 RJT 72953 b SB3941- 90 -LRB103 40497 RJT 72953 b SB3941 - 90 - LRB103 40497 RJT 72953 b SB3941 - 90 - LRB103 40497 RJT 72953 b 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 SB3941 - 90 - LRB103 40497 RJT 72953 b SB3941- 91 -LRB103 40497 RJT 72953 b SB3941 - 91 - LRB103 40497 RJT 72953 b SB3941 - 91 - LRB103 40497 RJT 72953 b 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 SB3941 - 91 - LRB103 40497 RJT 72953 b SB3941- 92 -LRB103 40497 RJT 72953 b SB3941 - 92 - LRB103 40497 RJT 72953 b SB3941 - 92 - LRB103 40497 RJT 72953 b 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 SB3941 - 92 - LRB103 40497 RJT 72953 b SB3941- 93 -LRB103 40497 RJT 72953 b SB3941 - 93 - LRB103 40497 RJT 72953 b SB3941 - 93 - LRB103 40497 RJT 72953 b 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. SB3941 - 93 - LRB103 40497 RJT 72953 b SB3941- 94 -LRB103 40497 RJT 72953 b SB3941 - 94 - LRB103 40497 RJT 72953 b SB3941 - 94 - LRB103 40497 RJT 72953 b 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; SB3941 - 94 - LRB103 40497 RJT 72953 b SB3941- 95 -LRB103 40497 RJT 72953 b SB3941 - 95 - LRB103 40497 RJT 72953 b SB3941 - 95 - LRB103 40497 RJT 72953 b 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 SB3941 - 95 - LRB103 40497 RJT 72953 b SB3941- 96 -LRB103 40497 RJT 72953 b SB3941 - 96 - LRB103 40497 RJT 72953 b SB3941 - 96 - LRB103 40497 RJT 72953 b 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. SB3941 - 96 - LRB103 40497 RJT 72953 b SB3941- 97 -LRB103 40497 RJT 72953 b SB3941 - 97 - LRB103 40497 RJT 72953 b SB3941 - 97 - LRB103 40497 RJT 72953 b 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) SB3941 - 97 - LRB103 40497 RJT 72953 b SB3941- 98 -LRB103 40497 RJT 72953 b SB3941 - 98 - LRB103 40497 RJT 72953 b SB3941 - 98 - LRB103 40497 RJT 72953 b 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 SB3941 - 98 - LRB103 40497 RJT 72953 b SB3941- 99 -LRB103 40497 RJT 72953 b SB3941 - 99 - LRB103 40497 RJT 72953 b SB3941 - 99 - LRB103 40497 RJT 72953 b 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. SB3941 - 99 - LRB103 40497 RJT 72953 b SB3941- 100 -LRB103 40497 RJT 72953 b SB3941 - 100 - LRB103 40497 RJT 72953 b SB3941 - 100 - LRB103 40497 RJT 72953 b 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: SB3941 - 100 - LRB103 40497 RJT 72953 b SB3941- 101 -LRB103 40497 RJT 72953 b SB3941 - 101 - LRB103 40497 RJT 72953 b SB3941 - 101 - LRB103 40497 RJT 72953 b 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 SB3941 - 101 - LRB103 40497 RJT 72953 b SB3941- 102 -LRB103 40497 RJT 72953 b SB3941 - 102 - LRB103 40497 RJT 72953 b SB3941 - 102 - LRB103 40497 RJT 72953 b 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 SB3941 - 102 - LRB103 40497 RJT 72953 b SB3941- 103 -LRB103 40497 RJT 72953 b SB3941 - 103 - LRB103 40497 RJT 72953 b SB3941 - 103 - LRB103 40497 RJT 72953 b 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; SB3941 - 103 - LRB103 40497 RJT 72953 b SB3941- 104 -LRB103 40497 RJT 72953 b SB3941 - 104 - LRB103 40497 RJT 72953 b SB3941 - 104 - LRB103 40497 RJT 72953 b 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 SB3941 - 104 - LRB103 40497 RJT 72953 b SB3941- 105 -LRB103 40497 RJT 72953 b SB3941 - 105 - LRB103 40497 RJT 72953 b SB3941 - 105 - LRB103 40497 RJT 72953 b 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 SB3941 - 105 - LRB103 40497 RJT 72953 b SB3941- 106 -LRB103 40497 RJT 72953 b SB3941 - 106 - LRB103 40497 RJT 72953 b SB3941 - 106 - LRB103 40497 RJT 72953 b 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 SB3941 - 106 - LRB103 40497 RJT 72953 b SB3941- 107 -LRB103 40497 RJT 72953 b SB3941 - 107 - LRB103 40497 RJT 72953 b SB3941 - 107 - LRB103 40497 RJT 72953 b 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 SB3941 - 107 - LRB103 40497 RJT 72953 b SB3941- 108 -LRB103 40497 RJT 72953 b SB3941 - 108 - LRB103 40497 RJT 72953 b SB3941 - 108 - LRB103 40497 RJT 72953 b 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, SB3941 - 108 - LRB103 40497 RJT 72953 b SB3941- 109 -LRB103 40497 RJT 72953 b SB3941 - 109 - LRB103 40497 RJT 72953 b SB3941 - 109 - LRB103 40497 RJT 72953 b 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 SB3941 - 109 - LRB103 40497 RJT 72953 b SB3941- 110 -LRB103 40497 RJT 72953 b SB3941 - 110 - LRB103 40497 RJT 72953 b SB3941 - 110 - LRB103 40497 RJT 72953 b 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 SB3941 - 110 - LRB103 40497 RJT 72953 b SB3941- 111 -LRB103 40497 RJT 72953 b SB3941 - 111 - LRB103 40497 RJT 72953 b SB3941 - 111 - LRB103 40497 RJT 72953 b 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 SB3941 - 111 - LRB103 40497 RJT 72953 b SB3941- 112 -LRB103 40497 RJT 72953 b SB3941 - 112 - LRB103 40497 RJT 72953 b SB3941 - 112 - LRB103 40497 RJT 72953 b 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 SB3941 - 112 - LRB103 40497 RJT 72953 b SB3941- 113 -LRB103 40497 RJT 72953 b SB3941 - 113 - LRB103 40497 RJT 72953 b SB3941 - 113 - LRB103 40497 RJT 72953 b 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 SB3941 - 113 - LRB103 40497 RJT 72953 b SB3941- 114 -LRB103 40497 RJT 72953 b SB3941 - 114 - LRB103 40497 RJT 72953 b SB3941 - 114 - LRB103 40497 RJT 72953 b 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. SB3941 - 114 - LRB103 40497 RJT 72953 b SB3941- 115 -LRB103 40497 RJT 72953 b SB3941 - 115 - LRB103 40497 RJT 72953 b SB3941 - 115 - LRB103 40497 RJT 72953 b 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 SB3941 - 115 - LRB103 40497 RJT 72953 b SB3941- 116 -LRB103 40497 RJT 72953 b SB3941 - 116 - LRB103 40497 RJT 72953 b SB3941 - 116 - LRB103 40497 RJT 72953 b 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. SB3941 - 116 - LRB103 40497 RJT 72953 b SB3941- 117 -LRB103 40497 RJT 72953 b SB3941 - 117 - LRB103 40497 RJT 72953 b SB3941 - 117 - LRB103 40497 RJT 72953 b 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, SB3941 - 117 - LRB103 40497 RJT 72953 b SB3941- 118 -LRB103 40497 RJT 72953 b SB3941 - 118 - LRB103 40497 RJT 72953 b SB3941 - 118 - LRB103 40497 RJT 72953 b 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 SB3941 - 118 - LRB103 40497 RJT 72953 b SB3941- 119 -LRB103 40497 RJT 72953 b SB3941 - 119 - LRB103 40497 RJT 72953 b SB3941 - 119 - LRB103 40497 RJT 72953 b 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. SB3941 - 119 - LRB103 40497 RJT 72953 b SB3941- 120 -LRB103 40497 RJT 72953 b SB3941 - 120 - LRB103 40497 RJT 72953 b SB3941 - 120 - LRB103 40497 RJT 72953 b 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. SB3941 - 120 - LRB103 40497 RJT 72953 b SB3941- 121 -LRB103 40497 RJT 72953 b SB3941 - 121 - LRB103 40497 RJT 72953 b SB3941 - 121 - LRB103 40497 RJT 72953 b 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 SB3941 - 121 - LRB103 40497 RJT 72953 b SB3941- 122 -LRB103 40497 RJT 72953 b SB3941 - 122 - LRB103 40497 RJT 72953 b SB3941 - 122 - LRB103 40497 RJT 72953 b 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 SB3941 - 122 - LRB103 40497 RJT 72953 b SB3941- 123 -LRB103 40497 RJT 72953 b SB3941 - 123 - LRB103 40497 RJT 72953 b SB3941 - 123 - LRB103 40497 RJT 72953 b 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; SB3941 - 123 - LRB103 40497 RJT 72953 b SB3941- 124 -LRB103 40497 RJT 72953 b SB3941 - 124 - LRB103 40497 RJT 72953 b SB3941 - 124 - LRB103 40497 RJT 72953 b 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. SB3941 - 124 - LRB103 40497 RJT 72953 b SB3941- 125 -LRB103 40497 RJT 72953 b SB3941 - 125 - LRB103 40497 RJT 72953 b SB3941 - 125 - LRB103 40497 RJT 72953 b 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 SB3941 - 125 - LRB103 40497 RJT 72953 b SB3941- 126 -LRB103 40497 RJT 72953 b SB3941 - 126 - LRB103 40497 RJT 72953 b SB3941 - 126 - LRB103 40497 RJT 72953 b 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 SB3941 - 126 - LRB103 40497 RJT 72953 b SB3941- 127 -LRB103 40497 RJT 72953 b SB3941 - 127 - LRB103 40497 RJT 72953 b SB3941 - 127 - LRB103 40497 RJT 72953 b 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. SB3941 - 127 - LRB103 40497 RJT 72953 b SB3941- 128 -LRB103 40497 RJT 72953 b SB3941 - 128 - LRB103 40497 RJT 72953 b SB3941 - 128 - LRB103 40497 RJT 72953 b 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 SB3941 - 128 - LRB103 40497 RJT 72953 b SB3941- 129 -LRB103 40497 RJT 72953 b SB3941 - 129 - LRB103 40497 RJT 72953 b SB3941 - 129 - LRB103 40497 RJT 72953 b 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 SB3941 - 129 - LRB103 40497 RJT 72953 b SB3941- 130 -LRB103 40497 RJT 72953 b SB3941 - 130 - LRB103 40497 RJT 72953 b SB3941 - 130 - LRB103 40497 RJT 72953 b 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. SB3941 - 130 - LRB103 40497 RJT 72953 b SB3941- 131 -LRB103 40497 RJT 72953 b SB3941 - 131 - LRB103 40497 RJT 72953 b SB3941 - 131 - LRB103 40497 RJT 72953 b 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 SB3941 - 131 - LRB103 40497 RJT 72953 b SB3941- 132 -LRB103 40497 RJT 72953 b SB3941 - 132 - LRB103 40497 RJT 72953 b SB3941 - 132 - LRB103 40497 RJT 72953 b 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 SB3941 - 132 - LRB103 40497 RJT 72953 b SB3941- 133 -LRB103 40497 RJT 72953 b SB3941 - 133 - LRB103 40497 RJT 72953 b SB3941 - 133 - LRB103 40497 RJT 72953 b 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 SB3941 - 133 - LRB103 40497 RJT 72953 b SB3941- 134 -LRB103 40497 RJT 72953 b SB3941 - 134 - LRB103 40497 RJT 72953 b SB3941 - 134 - LRB103 40497 RJT 72953 b 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 SB3941 - 134 - LRB103 40497 RJT 72953 b SB3941- 135 -LRB103 40497 RJT 72953 b SB3941 - 135 - LRB103 40497 RJT 72953 b SB3941 - 135 - LRB103 40497 RJT 72953 b 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 SB3941 - 135 - LRB103 40497 RJT 72953 b SB3941- 136 -LRB103 40497 RJT 72953 b SB3941 - 136 - LRB103 40497 RJT 72953 b SB3941 - 136 - LRB103 40497 RJT 72953 b 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 SB3941 - 136 - LRB103 40497 RJT 72953 b SB3941- 137 -LRB103 40497 RJT 72953 b SB3941 - 137 - LRB103 40497 RJT 72953 b SB3941 - 137 - LRB103 40497 RJT 72953 b 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 SB3941 - 137 - LRB103 40497 RJT 72953 b SB3941- 138 -LRB103 40497 RJT 72953 b SB3941 - 138 - LRB103 40497 RJT 72953 b SB3941 - 138 - LRB103 40497 RJT 72953 b 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 SB3941 - 138 - LRB103 40497 RJT 72953 b SB3941- 139 -LRB103 40497 RJT 72953 b SB3941 - 139 - LRB103 40497 RJT 72953 b SB3941 - 139 - LRB103 40497 RJT 72953 b 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 SB3941 - 139 - LRB103 40497 RJT 72953 b SB3941- 140 -LRB103 40497 RJT 72953 b SB3941 - 140 - LRB103 40497 RJT 72953 b SB3941 - 140 - LRB103 40497 RJT 72953 b 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 SB3941 - 140 - LRB103 40497 RJT 72953 b SB3941- 141 -LRB103 40497 RJT 72953 b SB3941 - 141 - LRB103 40497 RJT 72953 b SB3941 - 141 - LRB103 40497 RJT 72953 b 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; SB3941 - 141 - LRB103 40497 RJT 72953 b SB3941- 142 -LRB103 40497 RJT 72953 b SB3941 - 142 - LRB103 40497 RJT 72953 b SB3941 - 142 - LRB103 40497 RJT 72953 b 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 SB3941 - 142 - LRB103 40497 RJT 72953 b SB3941- 143 -LRB103 40497 RJT 72953 b SB3941 - 143 - LRB103 40497 RJT 72953 b SB3941 - 143 - LRB103 40497 RJT 72953 b 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 SB3941 - 143 - LRB103 40497 RJT 72953 b SB3941- 144 -LRB103 40497 RJT 72953 b SB3941 - 144 - LRB103 40497 RJT 72953 b SB3941 - 144 - LRB103 40497 RJT 72953 b 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 SB3941 - 144 - LRB103 40497 RJT 72953 b SB3941- 145 -LRB103 40497 RJT 72953 b SB3941 - 145 - LRB103 40497 RJT 72953 b SB3941 - 145 - LRB103 40497 RJT 72953 b 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: SB3941 - 145 - LRB103 40497 RJT 72953 b SB3941- 146 -LRB103 40497 RJT 72953 b SB3941 - 146 - LRB103 40497 RJT 72953 b SB3941 - 146 - LRB103 40497 RJT 72953 b 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 SB3941 - 146 - LRB103 40497 RJT 72953 b SB3941- 147 -LRB103 40497 RJT 72953 b SB3941 - 147 - LRB103 40497 RJT 72953 b SB3941 - 147 - LRB103 40497 RJT 72953 b 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 SB3941 - 147 - LRB103 40497 RJT 72953 b SB3941- 148 -LRB103 40497 RJT 72953 b SB3941 - 148 - LRB103 40497 RJT 72953 b SB3941 - 148 - LRB103 40497 RJT 72953 b 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 SB3941 - 148 - LRB103 40497 RJT 72953 b SB3941- 149 -LRB103 40497 RJT 72953 b SB3941 - 149 - LRB103 40497 RJT 72953 b SB3941 - 149 - LRB103 40497 RJT 72953 b 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 SB3941 - 149 - LRB103 40497 RJT 72953 b SB3941- 150 -LRB103 40497 RJT 72953 b SB3941 - 150 - LRB103 40497 RJT 72953 b SB3941 - 150 - LRB103 40497 RJT 72953 b 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 SB3941 - 150 - LRB103 40497 RJT 72953 b SB3941- 151 -LRB103 40497 RJT 72953 b SB3941 - 151 - LRB103 40497 RJT 72953 b SB3941 - 151 - LRB103 40497 RJT 72953 b 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. SB3941 - 151 - LRB103 40497 RJT 72953 b SB3941- 152 -LRB103 40497 RJT 72953 b SB3941 - 152 - LRB103 40497 RJT 72953 b SB3941 - 152 - LRB103 40497 RJT 72953 b 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: SB3941 - 152 - LRB103 40497 RJT 72953 b SB3941- 153 -LRB103 40497 RJT 72953 b SB3941 - 153 - LRB103 40497 RJT 72953 b SB3941 - 153 - LRB103 40497 RJT 72953 b 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 SB3941 - 153 - LRB103 40497 RJT 72953 b SB3941- 154 -LRB103 40497 RJT 72953 b SB3941 - 154 - LRB103 40497 RJT 72953 b SB3941 - 154 - LRB103 40497 RJT 72953 b 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, SB3941 - 154 - LRB103 40497 RJT 72953 b SB3941- 155 -LRB103 40497 RJT 72953 b SB3941 - 155 - LRB103 40497 RJT 72953 b SB3941 - 155 - LRB103 40497 RJT 72953 b 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; SB3941 - 155 - LRB103 40497 RJT 72953 b SB3941- 156 -LRB103 40497 RJT 72953 b SB3941 - 156 - LRB103 40497 RJT 72953 b SB3941 - 156 - LRB103 40497 RJT 72953 b 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 SB3941 - 156 - LRB103 40497 RJT 72953 b SB3941- 157 -LRB103 40497 RJT 72953 b SB3941 - 157 - LRB103 40497 RJT 72953 b SB3941 - 157 - LRB103 40497 RJT 72953 b 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 SB3941 - 157 - LRB103 40497 RJT 72953 b SB3941- 158 -LRB103 40497 RJT 72953 b SB3941 - 158 - LRB103 40497 RJT 72953 b SB3941 - 158 - LRB103 40497 RJT 72953 b 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 SB3941 - 158 - LRB103 40497 RJT 72953 b SB3941- 159 -LRB103 40497 RJT 72953 b SB3941 - 159 - LRB103 40497 RJT 72953 b SB3941 - 159 - LRB103 40497 RJT 72953 b 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; SB3941 - 159 - LRB103 40497 RJT 72953 b SB3941- 160 -LRB103 40497 RJT 72953 b SB3941 - 160 - LRB103 40497 RJT 72953 b SB3941 - 160 - LRB103 40497 RJT 72953 b 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. SB3941 - 160 - LRB103 40497 RJT 72953 b SB3941- 161 -LRB103 40497 RJT 72953 b SB3941 - 161 - LRB103 40497 RJT 72953 b SB3941 - 161 - LRB103 40497 RJT 72953 b 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 SB3941 - 161 - LRB103 40497 RJT 72953 b SB3941- 162 -LRB103 40497 RJT 72953 b SB3941 - 162 - LRB103 40497 RJT 72953 b SB3941 - 162 - LRB103 40497 RJT 72953 b 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 SB3941 - 162 - LRB103 40497 RJT 72953 b SB3941- 163 -LRB103 40497 RJT 72953 b SB3941 - 163 - LRB103 40497 RJT 72953 b SB3941 - 163 - LRB103 40497 RJT 72953 b 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 SB3941 - 163 - LRB103 40497 RJT 72953 b SB3941- 164 -LRB103 40497 RJT 72953 b SB3941 - 164 - LRB103 40497 RJT 72953 b SB3941 - 164 - LRB103 40497 RJT 72953 b 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 SB3941 - 164 - LRB103 40497 RJT 72953 b SB3941- 165 -LRB103 40497 RJT 72953 b SB3941 - 165 - LRB103 40497 RJT 72953 b SB3941 - 165 - LRB103 40497 RJT 72953 b 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 SB3941 - 165 - LRB103 40497 RJT 72953 b SB3941- 166 -LRB103 40497 RJT 72953 b SB3941 - 166 - LRB103 40497 RJT 72953 b SB3941 - 166 - LRB103 40497 RJT 72953 b 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 SB3941 - 166 - LRB103 40497 RJT 72953 b SB3941- 167 -LRB103 40497 RJT 72953 b SB3941 - 167 - LRB103 40497 RJT 72953 b SB3941 - 167 - LRB103 40497 RJT 72953 b 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 SB3941 - 167 - LRB103 40497 RJT 72953 b SB3941- 168 -LRB103 40497 RJT 72953 b SB3941 - 168 - LRB103 40497 RJT 72953 b SB3941 - 168 - LRB103 40497 RJT 72953 b 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 SB3941 - 168 - LRB103 40497 RJT 72953 b SB3941- 169 -LRB103 40497 RJT 72953 b SB3941 - 169 - LRB103 40497 RJT 72953 b SB3941 - 169 - LRB103 40497 RJT 72953 b 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. SB3941 - 169 - LRB103 40497 RJT 72953 b SB3941- 170 -LRB103 40497 RJT 72953 b SB3941 - 170 - LRB103 40497 RJT 72953 b SB3941 - 170 - LRB103 40497 RJT 72953 b 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 SB3941 - 170 - LRB103 40497 RJT 72953 b SB3941- 171 -LRB103 40497 RJT 72953 b SB3941 - 171 - LRB103 40497 RJT 72953 b SB3941 - 171 - LRB103 40497 RJT 72953 b 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 SB3941 - 171 - LRB103 40497 RJT 72953 b SB3941- 172 -LRB103 40497 RJT 72953 b SB3941 - 172 - LRB103 40497 RJT 72953 b SB3941 - 172 - LRB103 40497 RJT 72953 b 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 SB3941 - 172 - LRB103 40497 RJT 72953 b SB3941- 173 -LRB103 40497 RJT 72953 b SB3941 - 173 - LRB103 40497 RJT 72953 b SB3941 - 173 - LRB103 40497 RJT 72953 b 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 SB3941 - 173 - LRB103 40497 RJT 72953 b SB3941- 174 -LRB103 40497 RJT 72953 b SB3941 - 174 - LRB103 40497 RJT 72953 b SB3941 - 174 - LRB103 40497 RJT 72953 b 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 SB3941 - 174 - LRB103 40497 RJT 72953 b SB3941- 175 -LRB103 40497 RJT 72953 b SB3941 - 175 - LRB103 40497 RJT 72953 b SB3941 - 175 - LRB103 40497 RJT 72953 b 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. SB3941 - 175 - LRB103 40497 RJT 72953 b SB3941- 176 -LRB103 40497 RJT 72953 b SB3941 - 176 - LRB103 40497 RJT 72953 b SB3941 - 176 - LRB103 40497 RJT 72953 b 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. SB3941 - 176 - LRB103 40497 RJT 72953 b SB3941- 177 -LRB103 40497 RJT 72953 b SB3941 - 177 - LRB103 40497 RJT 72953 b SB3941 - 177 - LRB103 40497 RJT 72953 b 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 SB3941 - 177 - LRB103 40497 RJT 72953 b SB3941- 178 -LRB103 40497 RJT 72953 b SB3941 - 178 - LRB103 40497 RJT 72953 b SB3941 - 178 - LRB103 40497 RJT 72953 b 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 SB3941 - 178 - LRB103 40497 RJT 72953 b SB3941- 179 -LRB103 40497 RJT 72953 b SB3941 - 179 - LRB103 40497 RJT 72953 b SB3941 - 179 - LRB103 40497 RJT 72953 b 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 SB3941 - 179 - LRB103 40497 RJT 72953 b SB3941- 180 -LRB103 40497 RJT 72953 b SB3941 - 180 - LRB103 40497 RJT 72953 b SB3941 - 180 - LRB103 40497 RJT 72953 b 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 SB3941 - 180 - LRB103 40497 RJT 72953 b SB3941- 181 -LRB103 40497 RJT 72953 b SB3941 - 181 - LRB103 40497 RJT 72953 b SB3941 - 181 - LRB103 40497 RJT 72953 b 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 SB3941 - 181 - LRB103 40497 RJT 72953 b SB3941- 182 -LRB103 40497 RJT 72953 b SB3941 - 182 - LRB103 40497 RJT 72953 b SB3941 - 182 - LRB103 40497 RJT 72953 b 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 SB3941 - 182 - LRB103 40497 RJT 72953 b SB3941- 183 -LRB103 40497 RJT 72953 b SB3941 - 183 - LRB103 40497 RJT 72953 b SB3941 - 183 - LRB103 40497 RJT 72953 b 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 SB3941 - 183 - LRB103 40497 RJT 72953 b SB3941- 184 -LRB103 40497 RJT 72953 b SB3941 - 184 - LRB103 40497 RJT 72953 b SB3941 - 184 - LRB103 40497 RJT 72953 b 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 SB3941 - 184 - LRB103 40497 RJT 72953 b SB3941- 185 -LRB103 40497 RJT 72953 b SB3941 - 185 - LRB103 40497 RJT 72953 b SB3941 - 185 - LRB103 40497 RJT 72953 b 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; SB3941 - 185 - LRB103 40497 RJT 72953 b SB3941- 186 -LRB103 40497 RJT 72953 b SB3941 - 186 - LRB103 40497 RJT 72953 b SB3941 - 186 - LRB103 40497 RJT 72953 b 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; SB3941 - 186 - LRB103 40497 RJT 72953 b SB3941- 187 -LRB103 40497 RJT 72953 b SB3941 - 187 - LRB103 40497 RJT 72953 b SB3941 - 187 - LRB103 40497 RJT 72953 b 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. SB3941 - 187 - LRB103 40497 RJT 72953 b SB3941- 188 -LRB103 40497 RJT 72953 b SB3941 - 188 - LRB103 40497 RJT 72953 b SB3941 - 188 - LRB103 40497 RJT 72953 b 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 SB3941 - 188 - LRB103 40497 RJT 72953 b SB3941- 189 -LRB103 40497 RJT 72953 b SB3941 - 189 - LRB103 40497 RJT 72953 b SB3941 - 189 - LRB103 40497 RJT 72953 b 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 SB3941 - 189 - LRB103 40497 RJT 72953 b SB3941- 190 -LRB103 40497 RJT 72953 b SB3941 - 190 - LRB103 40497 RJT 72953 b SB3941 - 190 - LRB103 40497 RJT 72953 b 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. SB3941 - 190 - LRB103 40497 RJT 72953 b SB3941- 191 -LRB103 40497 RJT 72953 b SB3941 - 191 - LRB103 40497 RJT 72953 b SB3941 - 191 - LRB103 40497 RJT 72953 b 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 SB3941 - 191 - LRB103 40497 RJT 72953 b SB3941- 192 -LRB103 40497 RJT 72953 b SB3941 - 192 - LRB103 40497 RJT 72953 b SB3941 - 192 - LRB103 40497 RJT 72953 b 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 SB3941 - 192 - LRB103 40497 RJT 72953 b SB3941- 193 -LRB103 40497 RJT 72953 b SB3941 - 193 - LRB103 40497 RJT 72953 b SB3941 - 193 - LRB103 40497 RJT 72953 b 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 SB3941 - 193 - LRB103 40497 RJT 72953 b SB3941- 194 -LRB103 40497 RJT 72953 b SB3941 - 194 - LRB103 40497 RJT 72953 b SB3941 - 194 - LRB103 40497 RJT 72953 b 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 SB3941 - 194 - LRB103 40497 RJT 72953 b SB3941- 195 -LRB103 40497 RJT 72953 b SB3941 - 195 - LRB103 40497 RJT 72953 b SB3941 - 195 - LRB103 40497 RJT 72953 b 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 SB3941 - 195 - LRB103 40497 RJT 72953 b SB3941- 196 -LRB103 40497 RJT 72953 b SB3941 - 196 - LRB103 40497 RJT 72953 b SB3941 - 196 - LRB103 40497 RJT 72953 b 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 SB3941 - 196 - LRB103 40497 RJT 72953 b SB3941- 197 -LRB103 40497 RJT 72953 b SB3941 - 197 - LRB103 40497 RJT 72953 b SB3941 - 197 - LRB103 40497 RJT 72953 b 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 SB3941 - 197 - LRB103 40497 RJT 72953 b SB3941- 198 -LRB103 40497 RJT 72953 b SB3941 - 198 - LRB103 40497 RJT 72953 b SB3941 - 198 - LRB103 40497 RJT 72953 b 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 SB3941 - 198 - LRB103 40497 RJT 72953 b SB3941- 199 -LRB103 40497 RJT 72953 b SB3941 - 199 - LRB103 40497 RJT 72953 b SB3941 - 199 - LRB103 40497 RJT 72953 b 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. SB3941 - 199 - LRB103 40497 RJT 72953 b SB3941- 200 -LRB103 40497 RJT 72953 b SB3941 - 200 - LRB103 40497 RJT 72953 b SB3941 - 200 - LRB103 40497 RJT 72953 b 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 SB3941 - 200 - LRB103 40497 RJT 72953 b SB3941- 201 -LRB103 40497 RJT 72953 b SB3941 - 201 - LRB103 40497 RJT 72953 b SB3941 - 201 - LRB103 40497 RJT 72953 b 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 SB3941 - 201 - LRB103 40497 RJT 72953 b SB3941- 202 -LRB103 40497 RJT 72953 b SB3941 - 202 - LRB103 40497 RJT 72953 b SB3941 - 202 - LRB103 40497 RJT 72953 b 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, SB3941 - 202 - LRB103 40497 RJT 72953 b SB3941- 203 -LRB103 40497 RJT 72953 b SB3941 - 203 - LRB103 40497 RJT 72953 b SB3941 - 203 - LRB103 40497 RJT 72953 b 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 SB3941 - 203 - LRB103 40497 RJT 72953 b SB3941- 204 -LRB103 40497 RJT 72953 b SB3941 - 204 - LRB103 40497 RJT 72953 b SB3941 - 204 - LRB103 40497 RJT 72953 b 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 SB3941 - 204 - LRB103 40497 RJT 72953 b SB3941- 205 -LRB103 40497 RJT 72953 b SB3941 - 205 - LRB103 40497 RJT 72953 b SB3941 - 205 - LRB103 40497 RJT 72953 b 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 SB3941 - 205 - LRB103 40497 RJT 72953 b SB3941- 206 -LRB103 40497 RJT 72953 b SB3941 - 206 - LRB103 40497 RJT 72953 b SB3941 - 206 - LRB103 40497 RJT 72953 b 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 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- 208 -LRB103 40497 RJT 72953 b SB3941 - 208 - LRB103 40497 RJT 72953 b 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