Public Act 101-0593

SB1557 Enrolled LRB101 08168 SMS 53234 b

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois,

represented in the General Assembly:

Section 1. The State Officials and Employees Ethics Act is

amended by changing Section 5-45 as follows:

(5 ILCS 430/5-45)

Sec. 5-45. Procurement; revolving door prohibition.

(a) No former officer, member, or State employee, or spouse

or immediate family member living with such person, shall,

within a period of one year immediately after termination of

State employment, knowingly accept employment or receive

compensation or fees for services from a person or entity if

the officer, member, or State employee, during the year

immediately preceding termination of State employment,

participated personally and substantially in the award of State

contracts, or the issuance of State contract change orders,

with a cumulative value of $25,000 or more to the person or

entity, or its parent or subsidiary.

(a-5) No officer, member, or spouse or immediate family

member living with such person shall, during the officer or

member's term in office or within a period of 2 years

immediately leaving office, hold an ownership interest, other

than a passive interest in a publicly traded company, in any

gaming license under the Illinois Gambling Act, the Video

Gaming Act, the Illinois Horse Racing Act of 1975, or the

Sports Wagering Act. Any member of the General Assembly or

spouse or immediate family member living with such person who

has an ownership interest, other than a passive interest in a

publicly traded company, in any gaming license under the

Illinois Gambling Act, the Illinois Horse Racing Act of 1975,

the Video Gaming Act, or the Sports Wagering Act at the time of

the effective date of this amendatory Act of the 101st General

Assembly shall divest himself or herself of such ownership

within one year after the effective date of this amendatory Act

of the 101st General Assembly. No State employee who works for

the Illinois Gaming Board or Illinois Racing Board or spouse or

immediate family member living with such person shall, during

State employment or within a period of 2 years immediately

after termination of State employment, hold an ownership

interest, other than a passive interest in a publicly traded

company, in any gaming license under the Illinois Gambling Act,

the Video Gaming Act, the Illinois Horse Racing Act of 1975, or

the Sports Wagering Act.

(a-10) This subsection (a-10) applies on and after June 25,

2021. No officer, member, or spouse or immediate family member

living with such person, shall, during the officer or member's

term in office or within a period of 2 years immediately after

leaving office, hold an ownership interest, other than a

passive interest in a publicly traded company, in any cannabis

business establishment which is licensed under the Cannabis

Regulation and Tax Act. Any member of the General Assembly or

spouse or immediate family member living with such person who

has an ownership interest, other than a passive interest in a

publicly traded company, in any cannabis business

establishment which is licensed under the Cannabis Regulation

and Tax Act at the time of the effective date of this

amendatory Act of the 101st General Assembly shall divest

himself or herself of such ownership within one year after the

effective date of this amendatory Act of the 101st General

Assembly.

No State employee who works for any State agency that

regulates cannabis business establishment license holders who

participated personally and substantially in the award of

licenses under the Cannabis Regulation and Tax Act or a spouse

or immediate family member living with such person shall,

during State employment or within a period of 2 years

immediately after termination of State employment, hold an

ownership interest, other than a passive interest in a publicly

traded company, in any cannabis license under the Cannabis

Regulation and Tax Act.

(b) No former officer of the executive branch or State

employee of the executive branch with regulatory or licensing

authority, or spouse or immediate family member living with

such person, shall, within a period of one year immediately

after termination of State employment, knowingly accept

employment or receive compensation or fees for services from a

person or entity if the officer or State employee, during the

year immediately preceding termination of State employment,

participated personally and substantially in making a

regulatory or licensing decision that directly applied to the

person or entity, or its parent or subsidiary.

(c) Within 6 months after the effective date of this

amendatory Act of the 96th General Assembly, each executive

branch constitutional officer and legislative leader, the

Auditor General, and the Joint Committee on Legislative Support

Services shall adopt a policy delineating which State positions

under his or her jurisdiction and control, by the nature of

their duties, may have the authority to participate personally

and substantially in the award of State contracts or in

regulatory or licensing decisions. The Governor shall adopt

such a policy for all State employees of the executive branch

not under the jurisdiction and control of any other executive

branch constitutional officer.

The policies required under subsection (c) of this Section

shall be filed with the appropriate ethics commission

established under this Act or, for the Auditor General, with

the Office of the Auditor General.

(d) Each Inspector General shall have the authority to

determine that additional State positions under his or her

jurisdiction, not otherwise subject to the policies required by

subsection (c) of this Section, are nonetheless subject to the

notification requirement of subsection (f) below due to their

involvement in the award of State contracts or in regulatory or

licensing decisions.

(e) The Joint Committee on Legislative Support Services,

the Auditor General, and each of the executive branch

constitutional officers and legislative leaders subject to

subsection (c) of this Section shall provide written

notification to all employees in positions subject to the

policies required by subsection (c) or a determination made

under subsection (d): (1) upon hiring, promotion, or transfer

into the relevant position; and (2) at the time the employee's

duties are changed in such a way as to qualify that employee.

An employee receiving notification must certify in writing that

the person was advised of the prohibition and the requirement

to notify the appropriate Inspector General in subsection (f).

(f) Any State employee in a position subject to the

policies required by subsection (c) or to a determination under

subsection (d), but who does not fall within the prohibition of

subsection (h) below, who is offered non-State employment

during State employment or within a period of one year

immediately after termination of State employment shall, prior

to accepting such non-State employment, notify the appropriate

Inspector General. Within 10 calendar days after receiving

notification from an employee in a position subject to the

policies required by subsection (c), such Inspector General

shall make a determination as to whether the State employee is

restricted from accepting such employment by subsection (a) or

(b). In making a determination, in addition to any other

relevant information, an Inspector General shall assess the

effect of the prospective employment or relationship upon

decisions referred to in subsections (a) and (b), based on the

totality of the participation by the former officer, member, or

State employee in those decisions. A determination by an

Inspector General must be in writing, signed and dated by the

Inspector General, and delivered to the subject of the

determination within 10 calendar days or the person is deemed

eligible for the employment opportunity. For purposes of this

subsection, "appropriate Inspector General" means (i) for

members and employees of the legislative branch, the

Legislative Inspector General; (ii) for the Auditor General and

employees of the Office of the Auditor General, the Inspector

General provided for in Section 30-5 of this Act; and (iii) for

executive branch officers and employees, the Inspector General

having jurisdiction over the officer or employee. Notice of any

determination of an Inspector General and of any such appeal

shall be given to the ultimate jurisdictional authority, the

Attorney General, and the Executive Ethics Commission.

(g) An Inspector General's determination regarding

restrictions under subsection (a) or (b) may be appealed to the

appropriate Ethics Commission by the person subject to the

decision or the Attorney General no later than the 10th

calendar day after the date of the determination.

On appeal, the Ethics Commission or Auditor General shall

seek, accept, and consider written public comments regarding a

determination. In deciding whether to uphold an Inspector

General's determination, the appropriate Ethics Commission or

Auditor General shall assess, in addition to any other relevant

information, the effect of the prospective employment or

relationship upon the decisions referred to in subsections (a)

and (b), based on the totality of the participation by the

former officer, member, or State employee in those decisions.

The Ethics Commission shall decide whether to uphold an

Inspector General's determination within 10 calendar days or

the person is deemed eligible for the employment opportunity.

(h) The following officers, members, or State employees

shall not, within a period of one year immediately after

termination of office or State employment, knowingly accept

employment or receive compensation or fees for services from a

person or entity if the person or entity or its parent or

subsidiary, during the year immediately preceding termination

of State employment, was a party to a State contract or

contracts with a cumulative value of $25,000 or more involving

the officer, member, or State employee's State agency, or was

the subject of a regulatory or licensing decision involving the

officer, member, or State employee's State agency, regardless

of whether he or she participated personally and substantially

in the award of the State contract or contracts or the making

of the regulatory or licensing decision in question:

(1) members or officers;

(2) members of a commission or board created by the

Illinois Constitution;

(3) persons whose appointment to office is subject to

the advice and consent of the Senate;

(4) the head of a department, commission, board,

division, bureau, authority, or other administrative unit

within the government of this State;

(5) chief procurement officers, State purchasing

officers, and their designees whose duties are directly

related to State procurement;

(6) chiefs of staff, deputy chiefs of staff, associate

chiefs of staff, assistant chiefs of staff, and deputy

governors;

(7) employees of the Illinois Racing Board; and

(8) employees of the Illinois Gaming Board.

(i) For the purposes of this Section, with respect to

officers or employees of a regional transit board, as defined

in this Act, the phrase "person or entity" does not include:

(i) the United States government, (ii) the State, (iii)

municipalities, as defined under Article VII, Section 1 of the

Illinois Constitution, (iv) units of local government, as

defined under Article VII, Section 1 of the Illinois

Constitution, or (v) school districts.

(Source: P.A. 101-31, eff. 6-28-19.)

Section 5. The Criminal Identification Act is amended by

changing Section 5.2 as follows:

(20 ILCS 2630/5.2)

Sec. 5.2. Expungement, sealing, and immediate sealing.

(a) General Provisions.

(1) Definitions. In this Act, words and phrases have

the meanings set forth in this subsection, except when a

particular context clearly requires a different meaning.

(A) The following terms shall have the meanings

ascribed to them in the Unified Code of Corrections,

730 ILCS 5/5-1-2 through 5/5-1-22:

(i) Business Offense (730 ILCS 5/5-1-2),

(ii) Charge (730 ILCS 5/5-1-3),

(iii) Court (730 ILCS 5/5-1-6),

(iv) Defendant (730 ILCS 5/5-1-7),

(v) Felony (730 ILCS 5/5-1-9),

(vi) Imprisonment (730 ILCS 5/5-1-10),

(vii) Judgment (730 ILCS 5/5-1-12),

(viii) Misdemeanor (730 ILCS 5/5-1-14),

(ix) Offense (730 ILCS 5/5-1-15),

(x) Parole (730 ILCS 5/5-1-16),

(xi) Petty Offense (730 ILCS 5/5-1-17),

(xii) Probation (730 ILCS 5/5-1-18),

(xiii) Sentence (730 ILCS 5/5-1-19),

(xiv) Supervision (730 ILCS 5/5-1-21), and

(xv) Victim (730 ILCS 5/5-1-22).

(B) As used in this Section, "charge not initiated

by arrest" means a charge (as defined by 730 ILCS

5/5-1-3) brought against a defendant where the

defendant is not arrested prior to or as a direct

result of the charge.

(C) "Conviction" means a judgment of conviction or

sentence entered upon a plea of guilty or upon a

verdict or finding of guilty of an offense, rendered by

a legally constituted jury or by a court of competent

jurisdiction authorized to try the case without a jury.

An order of supervision successfully completed by the

petitioner is not a conviction. An order of qualified

probation (as defined in subsection (a)(1)(J))

successfully completed by the petitioner is not a

conviction. An order of supervision or an order of

qualified probation that is terminated

unsatisfactorily is a conviction, unless the

unsatisfactory termination is reversed, vacated, or

modified and the judgment of conviction, if any, is

reversed or vacated.

(D) "Criminal offense" means a petty offense,

business offense, misdemeanor, felony, or municipal

ordinance violation (as defined in subsection

(a)(1)(H)). As used in this Section, a minor traffic

offense (as defined in subsection (a)(1)(G)) shall not

be considered a criminal offense.

(E) "Expunge" means to physically destroy the

records or return them to the petitioner and to

obliterate the petitioner's name from any official

index or public record, or both. Nothing in this Act

shall require the physical destruction of the circuit

court file, but such records relating to arrests or

charges, or both, ordered expunged shall be impounded

as required by subsections (d)(9)(A)(ii) and

(d)(9)(B)(ii).

(F) As used in this Section, "last sentence" means

the sentence, order of supervision, or order of

qualified probation (as defined by subsection

(a)(1)(J)), for a criminal offense (as defined by

subsection (a)(1)(D)) that terminates last in time in

any jurisdiction, regardless of whether the petitioner

has included the criminal offense for which the

sentence or order of supervision or qualified

probation was imposed in his or her petition. If

multiple sentences, orders of supervision, or orders

of qualified probation terminate on the same day and

are last in time, they shall be collectively considered

the "last sentence" regardless of whether they were

ordered to run concurrently.

(G) "Minor traffic offense" means a petty offense,

business offense, or Class C misdemeanor under the

Illinois Vehicle Code or a similar provision of a

municipal or local ordinance.

(G-5) "Minor Cannabis Offense" means a violation

of Section 4 or 5 of the Cannabis Control Act

concerning not more than 30 grams of any substance

containing cannabis, provided the violation did not

include a penalty enhancement under Section 7 of the

Cannabis Control Act and is not associated with an

arrest, conviction or other disposition for a violent

crime as defined in subsection (c) of Section 3 of the

Rights of Crime Victims and Witnesses Act.

(H) "Municipal ordinance violation" means an

offense defined by a municipal or local ordinance that

is criminal in nature and with which the petitioner was

charged or for which the petitioner was arrested and

released without charging.

(I) "Petitioner" means an adult or a minor

prosecuted as an adult who has applied for relief under

this Section.

(J) "Qualified probation" means an order of

probation under Section 10 of the Cannabis Control Act,

Section 410 of the Illinois Controlled Substances Act,

Section 70 of the Methamphetamine Control and

Community Protection Act, Section 5-6-3.3 or 5-6-3.4

of the Unified Code of Corrections, Section

12-4.3(b)(1) and (2) of the Criminal Code of 1961 (as

those provisions existed before their deletion by

Public Act 89-313), Section 10-102 of the Illinois

Alcoholism and Other Drug Dependency Act, Section

40-10 of the Substance Use Disorder Act, or Section 10

of the Steroid Control Act. For the purpose of this

Section, "successful completion" of an order of

qualified probation under Section 10-102 of the

Illinois Alcoholism and Other Drug Dependency Act and

Section 40-10 of the Substance Use Disorder Act means

that the probation was terminated satisfactorily and

the judgment of conviction was vacated.

(K) "Seal" means to physically and electronically

maintain the records, unless the records would

otherwise be destroyed due to age, but to make the

records unavailable without a court order, subject to

the exceptions in Sections 12 and 13 of this Act. The

petitioner's name shall also be obliterated from the

official index required to be kept by the circuit court

clerk under Section 16 of the Clerks of Courts Act, but

any index issued by the circuit court clerk before the

entry of the order to seal shall not be affected.

(L) "Sexual offense committed against a minor"

includes, but is not limited to, the offenses of

indecent solicitation of a child or criminal sexual

abuse when the victim of such offense is under 18 years

of age.

(M) "Terminate" as it relates to a sentence or

order of supervision or qualified probation includes

either satisfactory or unsatisfactory termination of

the sentence, unless otherwise specified in this

Section. A sentence is terminated notwithstanding any

outstanding financial legal obligation.

(2) Minor Traffic Offenses. Orders of supervision or

convictions for minor traffic offenses shall not affect a

petitioner's eligibility to expunge or seal records

pursuant to this Section.

(2.5) Commencing 180 days after July 29, 2016 (the

effective date of Public Act 99-697), the law enforcement

agency issuing the citation shall automatically expunge,

on or before January 1 and July 1 of each year, the law

enforcement records of a person found to have committed a

civil law violation of subsection (a) of Section 4 of the

Cannabis Control Act or subsection (c) of Section 3.5 of

the Drug Paraphernalia Control Act in the law enforcement

agency's possession or control and which contains the final

satisfactory disposition which pertain to the person

issued a citation for that offense. The law enforcement

agency shall provide by rule the process for access,

review, and to confirm the automatic expungement by the law

enforcement agency issuing the citation. Commencing 180

days after July 29, 2016 (the effective date of Public Act

99-697), the clerk of the circuit court shall expunge, upon

order of the court, or in the absence of a court order on

or before January 1 and July 1 of each year, the court

records of a person found in the circuit court to have

committed a civil law violation of subsection (a) of

Section 4 of the Cannabis Control Act or subsection (c) of

Section 3.5 of the Drug Paraphernalia Control Act in the

clerk's possession or control and which contains the final

satisfactory disposition which pertain to the person

issued a citation for any of those offenses.

(3) Exclusions. Except as otherwise provided in

subsections (b)(5), (b)(6), (b)(8), (e), (e-5), and (e-6)

of this Section, the court shall not order:

(A) the sealing or expungement of the records of

arrests or charges not initiated by arrest that result

in an order of supervision for or conviction of: (i)

any sexual offense committed against a minor; (ii)

Section 11-501 of the Illinois Vehicle Code or a

similar provision of a local ordinance; or (iii)

Section 11-503 of the Illinois Vehicle Code or a

similar provision of a local ordinance, unless the

arrest or charge is for a misdemeanor violation of

subsection (a) of Section 11-503 or a similar provision

of a local ordinance, that occurred prior to the

offender reaching the age of 25 years and the offender

has no other conviction for violating Section 11-501 or

11-503 of the Illinois Vehicle Code or a similar

provision of a local ordinance.

(B) the sealing or expungement of records of minor

traffic offenses (as defined in subsection (a)(1)(G)),

unless the petitioner was arrested and released

without charging.

(C) the sealing of the records of arrests or

charges not initiated by arrest which result in an

order of supervision or a conviction for the following

offenses:

(i) offenses included in Article 11 of the

Criminal Code of 1961 or the Criminal Code of 2012

or a similar provision of a local ordinance, except

Section 11-14 and a misdemeanor violation of

Section 11-30 of the Criminal Code of 1961 or the

Criminal Code of 2012, or a similar provision of a

local ordinance;

(ii) Section 11-1.50, 12-3.4, 12-15, 12-30,

26-5, or 48-1 of the Criminal Code of 1961 or the

Criminal Code of 2012, or a similar provision of a

local ordinance;

(iii) Sections 12-3.1 or 12-3.2 of the

Criminal Code of 1961 or the Criminal Code of 2012,

or Section 125 of the Stalking No Contact Order

Act, or Section 219 of the Civil No Contact Order

Act, or a similar provision of a local ordinance;

(iv) Class A misdemeanors or felony offenses

under the Humane Care for Animals Act; or

(v) any offense or attempted offense that

would subject a person to registration under the

Sex Offender Registration Act.

(D) (blank).

(b) Expungement.

(1) A petitioner may petition the circuit court to

expunge the records of his or her arrests and charges not

initiated by arrest when each arrest or charge not

initiated by arrest sought to be expunged resulted in: (i)

acquittal, dismissal, or the petitioner's release without

charging, unless excluded by subsection (a)(3)(B); (ii) a

conviction which was vacated or reversed, unless excluded

by subsection (a)(3)(B); (iii) an order of supervision and

such supervision was successfully completed by the

petitioner, unless excluded by subsection (a)(3)(A) or

(a)(3)(B); or (iv) an order of qualified probation (as

defined in subsection (a)(1)(J)) and such probation was

successfully completed by the petitioner.

(1.5) When a petitioner seeks to have a record of

arrest expunged under this Section, and the offender has

been convicted of a criminal offense, the State's Attorney

may object to the expungement on the grounds that the

records contain specific relevant information aside from

the mere fact of the arrest.

(2) Time frame for filing a petition to expunge.

(A) When the arrest or charge not initiated by

arrest sought to be expunged resulted in an acquittal,

dismissal, the petitioner's release without charging,

or the reversal or vacation of a conviction, there is

no waiting period to petition for the expungement of

such records.

(B) When the arrest or charge not initiated by

arrest sought to be expunged resulted in an order of

supervision, successfully completed by the petitioner,

the following time frames will apply:

(i) Those arrests or charges that resulted in

orders of supervision under Section 3-707, 3-708,

3-710, or 5-401.3 of the Illinois Vehicle Code or a

similar provision of a local ordinance, or under

Section 11-1.50, 12-3.2, or 12-15 of the Criminal

Code of 1961 or the Criminal Code of 2012, or a

similar provision of a local ordinance, shall not

be eligible for expungement until 5 years have

passed following the satisfactory termination of

the supervision.

(i-5) Those arrests or charges that resulted

in orders of supervision for a misdemeanor

violation of subsection (a) of Section 11-503 of

the Illinois Vehicle Code or a similar provision of

a local ordinance, that occurred prior to the

offender reaching the age of 25 years and the

offender has no other conviction for violating

Section 11-501 or 11-503 of the Illinois Vehicle

Code or a similar provision of a local ordinance

shall not be eligible for expungement until the

petitioner has reached the age of 25 years.

(ii) Those arrests or charges that resulted in

orders of supervision for any other offenses shall

not be eligible for expungement until 2 years have

passed following the satisfactory termination of

the supervision.

(C) When the arrest or charge not initiated by

arrest sought to be expunged resulted in an order of

qualified probation, successfully completed by the

petitioner, such records shall not be eligible for

expungement until 5 years have passed following the

satisfactory termination of the probation.

(3) Those records maintained by the Department for

persons arrested prior to their 17th birthday shall be

expunged as provided in Section 5-915 of the Juvenile Court

Act of 1987.

(4) Whenever a person has been arrested for or

convicted of any offense, in the name of a person whose

identity he or she has stolen or otherwise come into

possession of, the aggrieved person from whom the identity

was stolen or otherwise obtained without authorization,

upon learning of the person having been arrested using his

or her identity, may, upon verified petition to the chief

judge of the circuit wherein the arrest was made, have a

court order entered nunc pro tunc by the Chief Judge to

correct the arrest record, conviction record, if any, and

all official records of the arresting authority, the

Department, other criminal justice agencies, the

prosecutor, and the trial court concerning such arrest, if

any, by removing his or her name from all such records in

connection with the arrest and conviction, if any, and by

inserting in the records the name of the offender, if known

or ascertainable, in lieu of the aggrieved's name. The

records of the circuit court clerk shall be sealed until

further order of the court upon good cause shown and the

name of the aggrieved person obliterated on the official

index required to be kept by the circuit court clerk under

Section 16 of the Clerks of Courts Act, but the order shall

not affect any index issued by the circuit court clerk

before the entry of the order. Nothing in this Section

shall limit the Department of State Police or other

criminal justice agencies or prosecutors from listing

under an offender's name the false names he or she has

used.

(5) Whenever a person has been convicted of criminal

sexual assault, aggravated criminal sexual assault,

predatory criminal sexual assault of a child, criminal

sexual abuse, or aggravated criminal sexual abuse, the

victim of that offense may request that the State's

Attorney of the county in which the conviction occurred

file a verified petition with the presiding trial judge at

the petitioner's trial to have a court order entered to

seal the records of the circuit court clerk in connection

with the proceedings of the trial court concerning that

offense. However, the records of the arresting authority

and the Department of State Police concerning the offense

shall not be sealed. The court, upon good cause shown,

shall make the records of the circuit court clerk in

connection with the proceedings of the trial court

concerning the offense available for public inspection.

(6) If a conviction has been set aside on direct review

or on collateral attack and the court determines by clear

and convincing evidence that the petitioner was factually

innocent of the charge, the court that finds the petitioner

factually innocent of the charge shall enter an expungement

order for the conviction for which the petitioner has been

determined to be innocent as provided in subsection (b) of

Section 5-5-4 of the Unified Code of Corrections.

(7) Nothing in this Section shall prevent the

Department of State Police from maintaining all records of

any person who is admitted to probation upon terms and

conditions and who fulfills those terms and conditions

pursuant to Section 10 of the Cannabis Control Act, Section

410 of the Illinois Controlled Substances Act, Section 70

of the Methamphetamine Control and Community Protection

Act, Section 5-6-3.3 or 5-6-3.4 of the Unified Code of

Corrections, Section 12-4.3 or subdivision (b)(1) of

Section 12-3.05 of the Criminal Code of 1961 or the

Criminal Code of 2012, Section 10-102 of the Illinois

Alcoholism and Other Drug Dependency Act, Section 40-10 of

the Substance Use Disorder Act, or Section 10 of the

Steroid Control Act.

(8) If the petitioner has been granted a certificate of

innocence under Section 2-702 of the Code of Civil

Procedure, the court that grants the certificate of

innocence shall also enter an order expunging the

conviction for which the petitioner has been determined to

be innocent as provided in subsection (h) of Section 2-702

of the Code of Civil Procedure.

(c) Sealing.

(1) Applicability. Notwithstanding any other provision

of this Act to the contrary, and cumulative with any rights

to expungement of criminal records, this subsection

authorizes the sealing of criminal records of adults and of

minors prosecuted as adults. Subsection (g) of this Section

provides for immediate sealing of certain records.

(2) Eligible Records. The following records may be

sealed:

(A) All arrests resulting in release without

charging;

(B) Arrests or charges not initiated by arrest

resulting in acquittal, dismissal, or conviction when

the conviction was reversed or vacated, except as

excluded by subsection (a)(3)(B);

(C) Arrests or charges not initiated by arrest

resulting in orders of supervision, including orders

of supervision for municipal ordinance violations,

successfully completed by the petitioner, unless

excluded by subsection (a)(3);

(D) Arrests or charges not initiated by arrest

resulting in convictions, including convictions on

municipal ordinance violations, unless excluded by

subsection (a)(3);

(E) Arrests or charges not initiated by arrest

resulting in orders of first offender probation under

Section 10 of the Cannabis Control Act, Section 410 of

the Illinois Controlled Substances Act, Section 70 of

the Methamphetamine Control and Community Protection

Act, or Section 5-6-3.3 of the Unified Code of

Corrections; and

(F) Arrests or charges not initiated by arrest

resulting in felony convictions unless otherwise

excluded by subsection (a) paragraph (3) of this

Section.

(3) When Records Are Eligible to Be Sealed. Records

identified as eligible under subsection (c)(2) may be

sealed as follows:

(A) Records identified as eligible under

subsection (c)(2)(A) and (c)(2)(B) may be sealed at any

time.

(B) Except as otherwise provided in subparagraph

(E) of this paragraph (3), records identified as

eligible under subsection (c)(2)(C) may be sealed 2

years after the termination of petitioner's last

sentence (as defined in subsection (a)(1)(F)).

(C) Except as otherwise provided in subparagraph

(E) of this paragraph (3), records identified as

eligible under subsections (c)(2)(D), (c)(2)(E), and

(c)(2)(F) may be sealed 3 years after the termination

of the petitioner's last sentence (as defined in

subsection (a)(1)(F)). Convictions requiring public

registration under the Arsonist Registration Act, the

Sex Offender Registration Act, or the Murderer and

Violent Offender Against Youth Registration Act may

not be sealed until the petitioner is no longer

required to register under that relevant Act.

(D) Records identified in subsection

(a)(3)(A)(iii) may be sealed after the petitioner has

reached the age of 25 years.

(E) Records identified as eligible under

subsections (c)(2)(C), (c)(2)(D), (c)(2)(E), or

(c)(2)(F) may be sealed upon termination of the

petitioner's last sentence if the petitioner earned a

high school diploma, associate's degree, career

certificate, vocational technical certification, or

bachelor's degree, or passed the high school level Test

of General Educational Development, during the period

of his or her sentence or mandatory supervised release.

This subparagraph shall apply only to a petitioner who

has not completed the same educational goal prior to

the period of his or her sentence or mandatory

supervised release. If a petition for sealing eligible

records filed under this subparagraph is denied by the

court, the time periods under subparagraph (B) or (C)

shall apply to any subsequent petition for sealing

filed by the petitioner.

(4) Subsequent felony convictions. A person may not

have subsequent felony conviction records sealed as

provided in this subsection (c) if he or she is convicted

of any felony offense after the date of the sealing of

prior felony convictions as provided in this subsection

(c). The court may, upon conviction for a subsequent felony

offense, order the unsealing of prior felony conviction

records previously ordered sealed by the court.

(5) Notice of eligibility for sealing. Upon entry of a

disposition for an eligible record under this subsection

(c), the petitioner shall be informed by the court of the

right to have the records sealed and the procedures for the

sealing of the records.

(d) Procedure. The following procedures apply to

expungement under subsections (b), (e), and (e-6) and sealing

under subsections (c) and (e-5):

(1) Filing the petition. Upon becoming eligible to

petition for the expungement or sealing of records under

this Section, the petitioner shall file a petition

requesting the expungement or sealing of records with the

clerk of the court where the arrests occurred or the

charges were brought, or both. If arrests occurred or

charges were brought in multiple jurisdictions, a petition

must be filed in each such jurisdiction. The petitioner

shall pay the applicable fee, except no fee shall be

required if the petitioner has obtained a court order

waiving fees under Supreme Court Rule 298 or it is

otherwise waived.

(1.5) County fee waiver pilot program. From August 9,

2019 (the effective date of Public Act 101-306) this

amendatory Act of the 101st General Assembly through

December 31, 2020, in a county of 3,000,000 or more

inhabitants, no fee shall be required to be paid by a

petitioner if the records sought to be expunged or sealed

were arrests resulting in release without charging or

arrests or charges not initiated by arrest resulting in

acquittal, dismissal, or conviction when the conviction

was reversed or vacated, unless excluded by subsection

(a)(3)(B). The provisions of this paragraph (1.5), other

than this sentence, are inoperative on and after January 1,

2021.

(2) Contents of petition. The petition shall be

verified and shall contain the petitioner's name, date of

birth, current address and, for each arrest or charge not

initiated by arrest sought to be sealed or expunged, the

case number, the date of arrest (if any), the identity of

the arresting authority, and such other information as the

court may require. During the pendency of the proceeding,

the petitioner shall promptly notify the circuit court

clerk of any change of his or her address. If the

petitioner has received a certificate of eligibility for

sealing from the Prisoner Review Board under paragraph (10)

of subsection (a) of Section 3-3-2 of the Unified Code of

Corrections, the certificate shall be attached to the

petition.

(3) Drug test. The petitioner must attach to the

petition proof that the petitioner has passed a test taken

within 30 days before the filing of the petition showing

the absence within his or her body of all illegal

substances as defined by the Illinois Controlled

Substances Act, the Methamphetamine Control and Community

Protection Act, and the Cannabis Control Act if he or she

is petitioning to:

(A) seal felony records under clause (c)(2)(E);

(B) seal felony records for a violation of the

Illinois Controlled Substances Act, the

Methamphetamine Control and Community Protection Act,

or the Cannabis Control Act under clause (c)(2)(F);

(C) seal felony records under subsection (e-5); or

(D) expunge felony records of a qualified

probation under clause (b)(1)(iv).

(4) Service of petition. The circuit court clerk shall

promptly serve a copy of the petition and documentation to

support the petition under subsection (e-5) or (e-6) on the

State's Attorney or prosecutor charged with the duty of

prosecuting the offense, the Department of State Police,

the arresting agency and the chief legal officer of the

unit of local government effecting the arrest.

(5) Objections.

(A) Any party entitled to notice of the petition

may file an objection to the petition. All objections

shall be in writing, shall be filed with the circuit

court clerk, and shall state with specificity the basis

of the objection. Whenever a person who has been

convicted of an offense is granted a pardon by the

Governor which specifically authorizes expungement, an

objection to the petition may not be filed.

(B) Objections to a petition to expunge or seal

must be filed within 60 days of the date of service of

the petition.

(6) Entry of order.

(A) The Chief Judge of the circuit wherein the

charge was brought, any judge of that circuit

designated by the Chief Judge, or in counties of less

than 3,000,000 inhabitants, the presiding trial judge

at the petitioner's trial, if any, shall rule on the

petition to expunge or seal as set forth in this

subsection (d)(6).

(B) Unless the State's Attorney or prosecutor, the

Department of State Police, the arresting agency, or

the chief legal officer files an objection to the

petition to expunge or seal within 60 days from the

date of service of the petition, the court shall enter

an order granting or denying the petition.

(C) Notwithstanding any other provision of law,

the court shall not deny a petition for sealing under

this Section because the petitioner has not satisfied

an outstanding legal financial obligation established,

imposed, or originated by a court, law enforcement

agency, or a municipal, State, county, or other unit of

local government, including, but not limited to, any

cost, assessment, fine, or fee. An outstanding legal

financial obligation does not include any court

ordered restitution to a victim under Section 5-5-6 of

the Unified Code of Corrections, unless the

restitution has been converted to a civil judgment.

Nothing in this subparagraph (C) waives, rescinds, or

abrogates a legal financial obligation or otherwise

eliminates or affects the right of the holder of any

financial obligation to pursue collection under

applicable federal, State, or local law.

(7) Hearings. If an objection is filed, the court shall

set a date for a hearing and notify the petitioner and all

parties entitled to notice of the petition of the hearing

date at least 30 days prior to the hearing. Prior to the

hearing, the State's Attorney shall consult with the

Department as to the appropriateness of the relief sought

in the petition to expunge or seal. At the hearing, the

court shall hear evidence on whether the petition should or

should not be granted, and shall grant or deny the petition

to expunge or seal the records based on the evidence

presented at the hearing. The court may consider the

following:

(A) the strength of the evidence supporting the

defendant's conviction;

(B) the reasons for retention of the conviction

records by the State;

(C) the petitioner's age, criminal record history,

and employment history;

(D) the period of time between the petitioner's

arrest on the charge resulting in the conviction and

the filing of the petition under this Section; and

(E) the specific adverse consequences the

petitioner may be subject to if the petition is denied.

(8) Service of order. After entering an order to

expunge or seal records, the court must provide copies of

the order to the Department, in a form and manner

prescribed by the Department, to the petitioner, to the

State's Attorney or prosecutor charged with the duty of

prosecuting the offense, to the arresting agency, to the

chief legal officer of the unit of local government

effecting the arrest, and to such other criminal justice

agencies as may be ordered by the court.

(9) Implementation of order.

(A) Upon entry of an order to expunge records

pursuant to (b)(2)(A) or (b)(2)(B)(ii), or both:

(i) the records shall be expunged (as defined

in subsection (a)(1)(E)) by the arresting agency,

the Department, and any other agency as ordered by

the court, within 60 days of the date of service of

the order, unless a motion to vacate, modify, or

reconsider the order is filed pursuant to

paragraph (12) of subsection (d) of this Section;

(ii) the records of the circuit court clerk

shall be impounded until further order of the court

upon good cause shown and the name of the

petitioner obliterated on the official index

required to be kept by the circuit court clerk

under Section 16 of the Clerks of Courts Act, but

the order shall not affect any index issued by the

circuit court clerk before the entry of the order;

and

(iii) in response to an inquiry for expunged

records, the court, the Department, or the agency

receiving such inquiry, shall reply as it does in

response to inquiries when no records ever

existed.

(B) Upon entry of an order to expunge records

pursuant to (b)(2)(B)(i) or (b)(2)(C), or both:

(i) the records shall be expunged (as defined

in subsection (a)(1)(E)) by the arresting agency

and any other agency as ordered by the court,

within 60 days of the date of service of the order,

unless a motion to vacate, modify, or reconsider

the order is filed pursuant to paragraph (12) of

subsection (d) of this Section;

(ii) the records of the circuit court clerk

shall be impounded until further order of the court

upon good cause shown and the name of the

petitioner obliterated on the official index

required to be kept by the circuit court clerk

under Section 16 of the Clerks of Courts Act, but

the order shall not affect any index issued by the

circuit court clerk before the entry of the order;

(iii) the records shall be impounded by the

Department within 60 days of the date of service of

the order as ordered by the court, unless a motion

to vacate, modify, or reconsider the order is filed

pursuant to paragraph (12) of subsection (d) of

this Section;

(iv) records impounded by the Department may

be disseminated by the Department only as required

by law or to the arresting authority, the State's

Attorney, and the court upon a later arrest for the

same or a similar offense or for the purpose of

sentencing for any subsequent felony, and to the

Department of Corrections upon conviction for any

offense; and

(v) in response to an inquiry for such records

from anyone not authorized by law to access such

records, the court, the Department, or the agency

receiving such inquiry shall reply as it does in

response to inquiries when no records ever

existed.

(B-5) Upon entry of an order to expunge records

under subsection (e-6):

(i) the records shall be expunged (as defined

in subsection (a)(1)(E)) by the arresting agency

and any other agency as ordered by the court,

within 60 days of the date of service of the order,

unless a motion to vacate, modify, or reconsider

the order is filed under paragraph (12) of

subsection (d) of this Section;

(ii) the records of the circuit court clerk

shall be impounded until further order of the court

upon good cause shown and the name of the

petitioner obliterated on the official index

required to be kept by the circuit court clerk

under Section 16 of the Clerks of Courts Act, but

the order shall not affect any index issued by the

circuit court clerk before the entry of the order;

(iii) the records shall be impounded by the

Department within 60 days of the date of service of

the order as ordered by the court, unless a motion

to vacate, modify, or reconsider the order is filed

under paragraph (12) of subsection (d) of this

Section;

(iv) records impounded by the Department may

be disseminated by the Department only as required

by law or to the arresting authority, the State's

Attorney, and the court upon a later arrest for the

same or a similar offense or for the purpose of

sentencing for any subsequent felony, and to the

Department of Corrections upon conviction for any

offense; and

(v) in response to an inquiry for these records

from anyone not authorized by law to access the

records, the court, the Department, or the agency

receiving the inquiry shall reply as it does in

response to inquiries when no records ever

existed.

(C) Upon entry of an order to seal records under

subsection (c), the arresting agency, any other agency

as ordered by the court, the Department, and the court

shall seal the records (as defined in subsection

(a)(1)(K)). In response to an inquiry for such records,

from anyone not authorized by law to access such

records, the court, the Department, or the agency

receiving such inquiry shall reply as it does in

response to inquiries when no records ever existed.

(D) The Department shall send written notice to the

petitioner of its compliance with each order to expunge

or seal records within 60 days of the date of service

of that order or, if a motion to vacate, modify, or

reconsider is filed, within 60 days of service of the

order resolving the motion, if that order requires the

Department to expunge or seal records. In the event of

an appeal from the circuit court order, the Department

shall send written notice to the petitioner of its

compliance with an Appellate Court or Supreme Court

judgment to expunge or seal records within 60 days of

the issuance of the court's mandate. The notice is not

required while any motion to vacate, modify, or

reconsider, or any appeal or petition for

discretionary appellate review, is pending.

(E) Upon motion, the court may order that a sealed

judgment or other court record necessary to

demonstrate the amount of any legal financial

obligation due and owing be made available for the

limited purpose of collecting any legal financial

obligations owed by the petitioner that were

established, imposed, or originated in the criminal

proceeding for which those records have been sealed.

The records made available under this subparagraph (E)

shall not be entered into the official index required

to be kept by the circuit court clerk under Section 16

of the Clerks of Courts Act and shall be immediately

re-impounded upon the collection of the outstanding

financial obligations.

(F) Notwithstanding any other provision of this

Section, a circuit court clerk may access a sealed

record for the limited purpose of collecting payment

for any legal financial obligations that were

established, imposed, or originated in the criminal

proceedings for which those records have been sealed.

(10) Fees. The Department may charge the petitioner a

fee equivalent to the cost of processing any order to

expunge or seal records. Notwithstanding any provision of

the Clerks of Courts Act to the contrary, the circuit court

clerk may charge a fee equivalent to the cost associated

with the sealing or expungement of records by the circuit

court clerk. From the total filing fee collected for the

petition to seal or expunge, the circuit court clerk shall

deposit $10 into the Circuit Court Clerk Operation and

Administrative Fund, to be used to offset the costs

incurred by the circuit court clerk in performing the

additional duties required to serve the petition to seal or

expunge on all parties. The circuit court clerk shall

collect and forward the Department of State Police portion

of the fee to the Department and it shall be deposited in

the State Police Services Fund. If the record brought under

an expungement petition was previously sealed under this

Section, the fee for the expungement petition for that same

record shall be waived.

(11) Final Order. No court order issued under the

expungement or sealing provisions of this Section shall

become final for purposes of appeal until 30 days after

service of the order on the petitioner and all parties

entitled to notice of the petition.

(12) Motion to Vacate, Modify, or Reconsider. Under

Section 2-1203 of the Code of Civil Procedure, the

petitioner or any party entitled to notice may file a

motion to vacate, modify, or reconsider the order granting

or denying the petition to expunge or seal within 60 days

of service of the order. If filed more than 60 days after

service of the order, a petition to vacate, modify, or

reconsider shall comply with subsection (c) of Section

2-1401 of the Code of Civil Procedure. Upon filing of a

motion to vacate, modify, or reconsider, notice of the

motion shall be served upon the petitioner and all parties

entitled to notice of the petition.

(13) Effect of Order. An order granting a petition

under the expungement or sealing provisions of this Section

shall not be considered void because it fails to comply

with the provisions of this Section or because of any error

asserted in a motion to vacate, modify, or reconsider. The

circuit court retains jurisdiction to determine whether

the order is voidable and to vacate, modify, or reconsider

its terms based on a motion filed under paragraph (12) of

this subsection (d).

(14) Compliance with Order Granting Petition to Seal

Records. Unless a court has entered a stay of an order

granting a petition to seal, all parties entitled to notice

of the petition must fully comply with the terms of the

order within 60 days of service of the order even if a

party is seeking relief from the order through a motion

filed under paragraph (12) of this subsection (d) or is

appealing the order.

(15) Compliance with Order Granting Petition to

Expunge Records. While a party is seeking relief from the

order granting the petition to expunge through a motion

filed under paragraph (12) of this subsection (d) or is

appealing the order, and unless a court has entered a stay

of that order, the parties entitled to notice of the

petition must seal, but need not expunge, the records until

there is a final order on the motion for relief or, in the

case of an appeal, the issuance of that court's mandate.

(16) The changes to this subsection (d) made by Public

Act 98-163 apply to all petitions pending on August 5, 2013

(the effective date of Public Act 98-163) and to all orders

ruling on a petition to expunge or seal on or after August

5, 2013 (the effective date of Public Act 98-163).

(e) Whenever a person who has been convicted of an offense

is granted a pardon by the Governor which specifically

authorizes expungement, he or she may, upon verified petition

to the Chief Judge of the circuit where the person had been

convicted, any judge of the circuit designated by the Chief

Judge, or in counties of less than 3,000,000 inhabitants, the

presiding trial judge at the defendant's trial, have a court

order entered expunging the record of arrest from the official

records of the arresting authority and order that the records

of the circuit court clerk and the Department be sealed until

further order of the court upon good cause shown or as

otherwise provided herein, and the name of the defendant

obliterated from the official index requested to be kept by the

circuit court clerk under Section 16 of the Clerks of Courts

Act in connection with the arrest and conviction for the

offense for which he or she had been pardoned but the order

shall not affect any index issued by the circuit court clerk

before the entry of the order. All records sealed by the

Department may be disseminated by the Department only to the

arresting authority, the State's Attorney, and the court upon a

later arrest for the same or similar offense or for the purpose

of sentencing for any subsequent felony. Upon conviction for

any subsequent offense, the Department of Corrections shall

have access to all sealed records of the Department pertaining

to that individual. Upon entry of the order of expungement, the

circuit court clerk shall promptly mail a copy of the order to

the person who was pardoned.

(e-5) Whenever a person who has been convicted of an

offense is granted a certificate of eligibility for sealing by

the Prisoner Review Board which specifically authorizes

sealing, he or she may, upon verified petition to the Chief

Judge of the circuit where the person had been convicted, any

judge of the circuit designated by the Chief Judge, or in

counties of less than 3,000,000 inhabitants, the presiding

trial judge at the petitioner's trial, have a court order

entered sealing the record of arrest from the official records

of the arresting authority and order that the records of the

circuit court clerk and the Department be sealed until further

order of the court upon good cause shown or as otherwise

provided herein, and the name of the petitioner obliterated

from the official index requested to be kept by the circuit

court clerk under Section 16 of the Clerks of Courts Act in

connection with the arrest and conviction for the offense for

which he or she had been granted the certificate but the order

shall not affect any index issued by the circuit court clerk

before the entry of the order. All records sealed by the

Department may be disseminated by the Department only as

required by this Act or to the arresting authority, a law

enforcement agency, the State's Attorney, and the court upon a

later arrest for the same or similar offense or for the purpose

of sentencing for any subsequent felony. Upon conviction for

any subsequent offense, the Department of Corrections shall

have access to all sealed records of the Department pertaining

to that individual. Upon entry of the order of sealing, the

circuit court clerk shall promptly mail a copy of the order to

the person who was granted the certificate of eligibility for

sealing.

(e-6) Whenever a person who has been convicted of an

offense is granted a certificate of eligibility for expungement

by the Prisoner Review Board which specifically authorizes

expungement, he or she may, upon verified petition to the Chief

Judge of the circuit where the person had been convicted, any

judge of the circuit designated by the Chief Judge, or in

counties of less than 3,000,000 inhabitants, the presiding

trial judge at the petitioner's trial, have a court order

entered expunging the record of arrest from the official

records of the arresting authority and order that the records

of the circuit court clerk and the Department be sealed until

further order of the court upon good cause shown or as

otherwise provided herein, and the name of the petitioner

obliterated from the official index requested to be kept by the

circuit court clerk under Section 16 of the Clerks of Courts

Act in connection with the arrest and conviction for the

offense for which he or she had been granted the certificate

but the order shall not affect any index issued by the circuit

court clerk before the entry of the order. All records sealed

by the Department may be disseminated by the Department only as

required by this Act or to the arresting authority, a law

enforcement agency, the State's Attorney, and the court upon a

later arrest for the same or similar offense or for the purpose

of sentencing for any subsequent felony. Upon conviction for

any subsequent offense, the Department of Corrections shall

have access to all expunged records of the Department

pertaining to that individual. Upon entry of the order of

expungement, the circuit court clerk shall promptly mail a copy

of the order to the person who was granted the certificate of

eligibility for expungement.

(f) Subject to available funding, the Illinois Department

of Corrections shall conduct a study of the impact of sealing,

especially on employment and recidivism rates, utilizing a

random sample of those who apply for the sealing of their

criminal records under Public Act 93-211. At the request of the

Illinois Department of Corrections, records of the Illinois

Department of Employment Security shall be utilized as

appropriate to assist in the study. The study shall not

disclose any data in a manner that would allow the

identification of any particular individual or employing unit.

The study shall be made available to the General Assembly no

later than September 1, 2010.

(g) Immediate Sealing.

(1) Applicability. Notwithstanding any other provision

of this Act to the contrary, and cumulative with any rights

to expungement or sealing of criminal records, this

subsection authorizes the immediate sealing of criminal

records of adults and of minors prosecuted as adults.

(2) Eligible Records. Arrests or charges not initiated

by arrest resulting in acquittal or dismissal with

prejudice, except as excluded by subsection (a)(3)(B),

that occur on or after January 1, 2018 (the effective date

of Public Act 100-282), may be sealed immediately if the

petition is filed with the circuit court clerk on the same

day and during the same hearing in which the case is

disposed.

(3) When Records are Eligible to be Immediately Sealed.

Eligible records under paragraph (2) of this subsection (g)

may be sealed immediately after entry of the final

disposition of a case, notwithstanding the disposition of

other charges in the same case.

(4) Notice of Eligibility for Immediate Sealing. Upon

entry of a disposition for an eligible record under this

subsection (g), the defendant shall be informed by the

court of his or her right to have eligible records

immediately sealed and the procedure for the immediate

sealing of these records.

(5) Procedure. The following procedures apply to

immediate sealing under this subsection (g).

(A) Filing the Petition. Upon entry of the final

disposition of the case, the defendant's attorney may

immediately petition the court, on behalf of the

defendant, for immediate sealing of eligible records

under paragraph (2) of this subsection (g) that are

entered on or after January 1, 2018 (the effective date

of Public Act 100-282). The immediate sealing petition

may be filed with the circuit court clerk during the

hearing in which the final disposition of the case is

entered. If the defendant's attorney does not file the

petition for immediate sealing during the hearing, the

defendant may file a petition for sealing at any time

as authorized under subsection (c)(3)(A).

(B) Contents of Petition. The immediate sealing

petition shall be verified and shall contain the

petitioner's name, date of birth, current address, and

for each eligible record, the case number, the date of

arrest if applicable, the identity of the arresting

authority if applicable, and other information as the

court may require.

(C) Drug Test. The petitioner shall not be required

to attach proof that he or she has passed a drug test.

(D) Service of Petition. A copy of the petition

shall be served on the State's Attorney in open court.

The petitioner shall not be required to serve a copy of

the petition on any other agency.

(E) Entry of Order. The presiding trial judge shall

enter an order granting or denying the petition for

immediate sealing during the hearing in which it is

filed. Petitions for immediate sealing shall be ruled

on in the same hearing in which the final disposition

of the case is entered.

(F) Hearings. The court shall hear the petition for

immediate sealing on the same day and during the same

hearing in which the disposition is rendered.

(G) Service of Order. An order to immediately seal

eligible records shall be served in conformance with

subsection (d)(8).

(H) Implementation of Order. An order to

immediately seal records shall be implemented in

conformance with subsections (d)(9)(C) and (d)(9)(D).

(I) Fees. The fee imposed by the circuit court

clerk and the Department of State Police shall comply

with paragraph (1) of subsection (d) of this Section.

(J) Final Order. No court order issued under this

subsection (g) shall become final for purposes of

appeal until 30 days after service of the order on the

petitioner and all parties entitled to service of the

order in conformance with subsection (d)(8).

(K) Motion to Vacate, Modify, or Reconsider. Under

Section 2-1203 of the Code of Civil Procedure, the

petitioner, State's Attorney, or the Department of

State Police may file a motion to vacate, modify, or

reconsider the order denying the petition to

immediately seal within 60 days of service of the

order. If filed more than 60 days after service of the

order, a petition to vacate, modify, or reconsider

shall comply with subsection (c) of Section 2-1401 of

the Code of Civil Procedure.

(L) Effect of Order. An order granting an immediate

sealing petition shall not be considered void because

it fails to comply with the provisions of this Section

or because of an error asserted in a motion to vacate,

modify, or reconsider. The circuit court retains

jurisdiction to determine whether the order is

voidable, and to vacate, modify, or reconsider its

terms based on a motion filed under subparagraph (L) of

this subsection (g).

(M) Compliance with Order Granting Petition to

Seal Records. Unless a court has entered a stay of an

order granting a petition to immediately seal, all

parties entitled to service of the order must fully

comply with the terms of the order within 60 days of

service of the order.

(h) Sealing; trafficking victims.

(1) A trafficking victim as defined by paragraph (10)

of subsection (a) of Section 10-9 of the Criminal Code of

2012 shall be eligible to petition for immediate sealing of

his or her criminal record upon the completion of his or

her last sentence if his or her participation in the

underlying offense was a direct result of human trafficking

under Section 10-9 of the Criminal Code of 2012 or a severe

form of trafficking under the federal Trafficking Victims

Protection Act.

(2) A petitioner under this subsection (h), in addition

to the requirements provided under paragraph (4) of

subsection (d) of this Section, shall include in his or her

petition a clear and concise statement that: (A) he or she

was a victim of human trafficking at the time of the

offense; and (B) that his or her participation in the

offense was a direct result of human trafficking under

Section 10-9 of the Criminal Code of 2012 or a severe form

of trafficking under the federal Trafficking Victims

Protection Act.

(3) If an objection is filed alleging that the

petitioner is not entitled to immediate sealing under this

subsection (h), the court shall conduct a hearing under

paragraph (7) of subsection (d) of this Section and the

court shall determine whether the petitioner is entitled to

immediate sealing under this subsection (h). A petitioner

is eligible for immediate relief under this subsection (h)

if he or she shows, by a preponderance of the evidence,

that: (A) he or she was a victim of human trafficking at

the time of the offense; and (B) that his or her

participation in the offense was a direct result of human

trafficking under Section 10-9 of the Criminal Code of 2012

or a severe form of trafficking under the federal

Trafficking Victims Protection Act.

(i) Minor Cannabis Offenses under the Cannabis Control Act.

(1) Expungement of Arrest Records of Minor Cannabis

Offenses.

(A) The Department of State Police and all law

enforcement agencies within the State shall

automatically expunge all criminal history records of

an arrest, charge not initiated by arrest, order of

supervision, or order of qualified probation for a

Minor Cannabis Offense committed prior to June 25, 2019

(the effective date of Public Act 101-27) this

amendatory Act of the 101st General Assembly if:

(i) One year or more has elapsed since the date

of the arrest or law enforcement interaction

documented in the records; and

(ii) No criminal charges were filed relating

to the arrest or law enforcement interaction or

criminal charges were filed and subsequently

dismissed or vacated or the arrestee was

acquitted.

(B) If the law enforcement agency is unable to

verify satisfaction of condition (ii) in paragraph

(A), records that satisfy condition (i) in paragraph

(A) shall be automatically expunged.

(C) Records shall be expunged by the law

enforcement agency pursuant to the procedures set

forth in subdivision (d)(9)(A) under the following

timelines:

(i) Records created prior to June 25, 2019 (the

effective date of Public Act 101-27) this

amendatory Act of the 101st General Assembly, but

on or after January 1, 2013, shall be automatically

expunged prior to January 1, 2021;

(ii) Records created prior to January 1, 2013,

but on or after January 1, 2000, shall be

automatically expunged prior to January 1, 2023;

(iii) Records created prior to January 1, 2000

shall be automatically expunged prior to January

1, 2025.

In response to an inquiry for expunged records, the

law enforcement agency receiving such inquiry shall

reply as it does in response to inquiries when no

records ever existed; however, it shall provide a

certificate of disposition or confirmation that the

record was expunged to the individual whose record was

expunged if such a record exists.

(D) Nothing in this Section shall be construed to

restrict or modify an individual's right to have that

individual's records expunged except as otherwise may

be provided in this Act, or diminish or abrogate any

rights or remedies otherwise available to the

individual.

(2) Pardons Authorizing Expungement of Minor Cannabis

Offenses.

(A) Upon June 25, 2019 (the effective date of

Public Act 101-27) this amendatory Act of the 101st

General Assembly, the Department of State Police shall

review all criminal history record information and

identify all records that meet all of the following

criteria:

(i) one or more convictions for a Minor

Cannabis Offense;

(ii) the conviction identified in paragraph

(2)(A)(i) did not include a penalty enhancement

under Section 7 of the Cannabis Control Act; and

(iii) the conviction identified in paragraph

(2)(A)(i) is not associated with a an arrest,

conviction or other disposition for a violent

crime as defined in subsection (c) of Section 3 of

the Rights of Crime Victims and Witnesses Act.

(B) Within 180 days after June 25, 2019 (the

effective date of Public Act 101-27) this amendatory

Act of the 101st General Assembly, the Department of

State Police shall notify the Prisoner Review Board of

all such records that meet the criteria established in

paragraph (2)(A).

(i) The Prisoner Review Board shall notify the

State's Attorney of the county of conviction of

each record identified by State Police in

paragraph (2)(A) that is classified as a Class 4

felony. The State's Attorney may provide a written

objection to the Prisoner Review Board on the sole

basis that the record identified does not meet the

criteria established in paragraph (2)(A). Such an

objection must be filed within 60 days or by such

later date set by Prisoner Review Board in the

notice after the State's Attorney received notice

from the Prisoner Review Board.

(ii) In response to a written objection from a

State's Attorney, the Prisoner Review Board is

authorized to conduct a non-public hearing to

evaluate the information provided in the

objection.

(iii) The Prisoner Review Board shall make a

confidential and privileged recommendation to the

Governor as to whether to grant a pardon

authorizing expungement for each of the records

identified by the Department of State Police as

described in paragraph (2)(A).

(C) If an individual has been granted a pardon

authorizing expungement as described in this Section,

the Prisoner Review Board, through the Attorney

General, shall file a petition for expungement with the

Chief Judge of the circuit or any judge of the circuit

designated by the Chief Judge where the individual had

been convicted. Such petition may include more than one

individual. Whenever an individual who has been

convicted of an offense is granted a pardon by the

Governor that specifically authorizes expungement, an

objection to the petition may not be filed. Petitions

to expunge under this subsection (i) may include more

than one individual. Within 90 days of the filing of

such a petition, the court shall enter an order

expunging the records of arrest from the official

records of the arresting authority and order that the

records of the circuit court clerk and the Department

of State Police be expunged and the name of the

defendant obliterated from the official index

requested to be kept by the circuit court clerk under

Section 16 of the Clerks of Courts Act in connection

with the arrest and conviction for the offense for

which the individual had received a pardon but the

order shall not affect any index issued by the circuit

court clerk before the entry of the order. Upon entry

of the order of expungement, the circuit court clerk

shall promptly provide a copy of the order and a

certificate of disposition to the individual who was

pardoned to the individual's last known address or by

electronic means (if available) or otherwise make it

available to the individual who was pardoned to the

individual's last known address or otherwise make

available to the individual upon request.

(D) Nothing in this Section is intended to diminish

or abrogate any rights or remedies otherwise available

to the individual.

(3) Any individual may file a motion to vacate and

expunge a conviction for a misdemeanor or Class 4 felony

violation of Section 4 or Section 5 of the Cannabis Control

Act. Motions to vacate and expunge under this subsection

(i) may be filed with the circuit court, Chief Judge of a

judicial circuit or any judge of the circuit designated by

the Chief Judge. The circuit court clerk shall promptly

serve a copy of the motion to vacate and expunge, and any

supporting documentation, on the State's Attorney or

prosecutor charged with the duty of prosecuting the

offense. When considering such a motion to vacate and

expunge, a court shall consider the following: the reasons

to retain the records provided by law enforcement, the

petitioner's age, the petitioner's age at the time of

offense, the time since the conviction, and the specific

adverse consequences if denied. An individual may file such

a petition after the completion of any non-financial

sentence or non-financial condition imposed by the

conviction. Within 60 days of the filing of such motion, a

State's Attorney may file an objection to such a petition

along with supporting evidence. If a motion to vacate and

expunge is granted, the records shall be expunged in

accordance with subparagraphs (d)(8) and sentence or

condition imposed by the conviction. Within 60 days of the

filing of such motion, a State's Attorney may file an

objection to such a petition along with supporting

evidence. If a motion to vacate and expunge is granted, the

records shall be expunged in accordance with subparagraph

(d)(9)(A) of this Section. An agency providing civil legal

aid, as defined by Section 15 of the Public Interest

Attorney Assistance Act, assisting individuals seeking to

file a motion to vacate and expunge under this subsection

may file motions to vacate and expunge with the Chief Judge

of a judicial circuit or any judge of the circuit

designated by the Chief Judge, and the motion may include

more than one individual. Motions filed by an agency

providing civil legal aid concerning more than one

individual may be prepared, presented, and signed

electronically.

(4) Any State's Attorney may file a motion to vacate

and expunge a conviction for a misdemeanor or Class 4

felony violation of Section 4 or Section 5 of the Cannabis

Control Act. Motions to vacate and expunge under this

subsection (i) may be filed with the circuit court, Chief

Judge of a judicial circuit or any judge of the circuit

designated by the Chief Judge, and may include more than

one individual. Motions filed by a State's Attorney

concerning more than one individual may be prepared,

presented, and signed electronically. When considering

such a motion to vacate and expunge, a court shall consider

the following: the reasons to retain the records provided

by law enforcement, the individual's age, the individual's

age at the time of offense, the time since the conviction,

and the specific adverse consequences if denied. Upon entry

of an order granting a motion to vacate and expunge records

pursuant to this Section, the State's Attorney shall notify

the Prisoner Review Board within 30 days. Upon entry of the

order of expungement, the circuit court clerk shall

promptly provide a copy of the order and a certificate of

disposition to the individual whose records will be

expunged to the individual's last known address or by

electronic means (if available) or otherwise make

available to the individual upon request. If a motion to

vacate and expunge is granted, the records shall be

expunged in accordance with subparagraphs (d)(8) and

(d)(9)(A) of this Section. If the State's Attorney files a

motion to vacate and expunge records for Minor Cannabis

Offenses pursuant to this Section, the State's Attorney

shall notify the Prisoner Review Board within 30 days of

such filing. If a motion to vacate and expunge is granted,

the records shall be expunged in accordance with

subparagraph (d)(9)(A) of this Section.

(5) In the public interest, the State's Attorney of a

county has standing to file motions to vacate and expunge

pursuant to this Section in the circuit court with

jurisdiction over the underlying conviction.

(6) If a person is arrested for a Minor Cannabis

Offense as defined in this Section before June 25, 2019

(the effective date of Public Act 101-27) this amendatory

Act of the 101st General Assembly and the person's case is

still pending but a sentence has not been imposed, the

person may petition the court in which the charges are

pending for an order to summarily dismiss those charges

against him or her, and expunge all official records of his

or her arrest, plea, trial, conviction, incarceration,

supervision, or expungement. If the court determines, upon

review, that: (A) the person was arrested before June 25,

2019 (the effective date of Public Act 101-27) this

amendatory Act of the 101st General Assembly for an offense

that has been made eligible for expungement; (B) the case

is pending at the time; and (C) the person has not been

sentenced of the minor cannabis violation eligible for

expungement under this subsection, the court shall

consider the following: the reasons to retain the records

provided by law enforcement, the petitioner's age, the

petitioner's age at the time of offense, the time since the

conviction, and the specific adverse consequences if

denied. If a motion to dismiss and expunge is granted, the

records shall be expunged in accordance with subparagraph

(d)(9)(A) of this Section.

(7) A person imprisoned solely as a result of one or

more convictions for Minor Cannabis Offenses under this

subsection (i) shall be released from incarceration upon

the issuance of an order under this subsection.

(8) The Department of State Police shall allow a person

to use the access and review process, established in the

Department of State Police, for verifying that his or her

records relating to Minor Cannabis Offenses of the Cannabis

Control Act eligible under this Section have been expunged.

(9) No conviction vacated pursuant to this Section

shall serve as the basis for damages for time unjustly

served as provided in the Court of Claims Act.

(10) Effect of Expungement. A person's right to expunge

an expungeable offense shall not be limited under this

Section. The effect of an order of expungement shall be to

restore the person to the status he or she occupied before

the arrest, charge, or conviction.

(11) Information. The Department of State Police shall

post general information on its website about the

expungement process described in this subsection (i).

(Source: P.A. 100-201, eff. 8-18-17; 100-282, eff. 1-1-18;

100-284, eff. 8-24-17; 100-287, eff. 8-24-17; 100-692, eff.

8-3-18; 100-759, eff. 1-1-19; 100-776, eff. 8-10-18; 100-863,

eff. 8-14-18; 101-27, eff. 6-25-19; 101-81, eff. 7-12-19;

101-159, eff. 1-1-20; 101-306, eff. 8-9-19; revised 9-25-19.)

Section 6. The Use Tax Act is amended by changing Section

3-10 as follows:

(35 ILCS 105/3-10)

Sec. 3-10. Rate of tax. Unless otherwise provided in this

Section, the tax imposed by this Act is at the rate of 6.25% of

either the selling price or the fair market value, if any, of

the tangible personal property. In all cases where property

functionally used or consumed is the same as the property that

was purchased at retail, then the tax is imposed on the selling

price of the property. In all cases where property functionally

used or consumed is a by-product or waste product that has been

refined, manufactured, or produced from property purchased at

retail, then the tax is imposed on the lower of the fair market

value, if any, of the specific property so used in this State

or on the selling price of the property purchased at retail.

For purposes of this Section "fair market value" means the

price at which property would change hands between a willing

buyer and a willing seller, neither being under any compulsion

to buy or sell and both having reasonable knowledge of the

relevant facts. The fair market value shall be established by

Illinois sales by the taxpayer of the same property as that

functionally used or consumed, or if there are no such sales by

the taxpayer, then comparable sales or purchases of property of

like kind and character in Illinois.

Beginning on July 1, 2000 and through December 31, 2000,

with respect to motor fuel, as defined in Section 1.1 of the

Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

the Use Tax Act, the tax is imposed at the rate of 1.25%.

Beginning on August 6, 2010 through August 15, 2010, with

respect to sales tax holiday items as defined in Section 3-6 of

this Act, the tax is imposed at the rate of 1.25%.

With respect to gasohol, the tax imposed by this Act

applies to (i) 70% of the proceeds of sales made on or after

January 1, 1990, and before July 1, 2003, (ii) 80% of the

proceeds of sales made on or after July 1, 2003 and on or

before July 1, 2017, and (iii) 100% of the proceeds of sales

made thereafter. If, at any time, however, the tax under this

Act on sales of gasohol is imposed at the rate of 1.25%, then

the tax imposed by this Act applies to 100% of the proceeds of

sales of gasohol made during that time.

With respect to majority blended ethanol fuel, the tax

imposed by this Act does not apply to the proceeds of sales

made on or after July 1, 2003 and on or before December 31,

2023 but applies to 100% of the proceeds of sales made

thereafter.

With respect to biodiesel blends with no less than 1% and

no more than 10% biodiesel, the tax imposed by this Act applies

to (i) 80% of the proceeds of sales made on or after July 1,

2003 and on or before December 31, 2018 and (ii) 100% of the

proceeds of sales made thereafter. If, at any time, however,

the tax under this Act on sales of biodiesel blends with no

less than 1% and no more than 10% biodiesel is imposed at the

rate of 1.25%, then the tax imposed by this Act applies to 100%

of the proceeds of sales of biodiesel blends with no less than

1% and no more than 10% biodiesel made during that time.

With respect to 100% biodiesel and biodiesel blends with

more than 10% but no more than 99% biodiesel, the tax imposed

by this Act does not apply to the proceeds of sales made on or

after July 1, 2003 and on or before December 31, 2023 but

applies to 100% of the proceeds of sales made thereafter.

With respect to food for human consumption that is to be

consumed off the premises where it is sold (other than

alcoholic beverages, food consisting of or infused with adult

use cannabis, soft drinks, and food that has been prepared for

immediate consumption) and prescription and nonprescription

medicines, drugs, medical appliances, products classified as

Class III medical devices by the United States Food and Drug

Administration that are used for cancer treatment pursuant to a

prescription, as well as any accessories and components related

to those devices, modifications to a motor vehicle for the

purpose of rendering it usable by a person with a disability,

and insulin, urine testing materials, syringes, and needles

used by diabetics, for human use, the tax is imposed at the

rate of 1%. For the purposes of this Section, until September

1, 2009: the term "soft drinks" means any complete, finished,

ready-to-use, non-alcoholic drink, whether carbonated or not,

including but not limited to soda water, cola, fruit juice,

vegetable juice, carbonated water, and all other preparations

commonly known as soft drinks of whatever kind or description

that are contained in any closed or sealed bottle, can, carton,

or container, regardless of size; but "soft drinks" does not

include coffee, tea, non-carbonated water, infant formula,

milk or milk products as defined in the Grade A Pasteurized

Milk and Milk Products Act, or drinks containing 50% or more

natural fruit or vegetable juice.

Notwithstanding any other provisions of this Act,

beginning September 1, 2009, "soft drinks" means non-alcoholic

beverages that contain natural or artificial sweeteners. "Soft

drinks" do not include beverages that contain milk or milk

products, soy, rice or similar milk substitutes, or greater

than 50% of vegetable or fruit juice by volume.

Until August 1, 2009, and notwithstanding any other

provisions of this Act, "food for human consumption that is to

be consumed off the premises where it is sold" includes all

food sold through a vending machine, except soft drinks and

food products that are dispensed hot from a vending machine,

regardless of the location of the vending machine. Beginning

August 1, 2009, and notwithstanding any other provisions of

this Act, "food for human consumption that is to be consumed

off the premises where it is sold" includes all food sold

through a vending machine, except soft drinks, candy, and food

products that are dispensed hot from a vending machine,

regardless of the location of the vending machine.

Notwithstanding any other provisions of this Act,

beginning September 1, 2009, "food for human consumption that

is to be consumed off the premises where it is sold" does not

include candy. For purposes of this Section, "candy" means a

preparation of sugar, honey, or other natural or artificial

sweeteners in combination with chocolate, fruits, nuts or other

ingredients or flavorings in the form of bars, drops, or

pieces. "Candy" does not include any preparation that contains

flour or requires refrigeration.

Notwithstanding any other provisions of this Act,

beginning September 1, 2009, "nonprescription medicines and

drugs" does not include grooming and hygiene products. For

purposes of this Section, "grooming and hygiene products"

includes, but is not limited to, soaps and cleaning solutions,

shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

lotions and screens, unless those products are available by

prescription only, regardless of whether the products meet the

definition of "over-the-counter-drugs". For the purposes of

this paragraph, "over-the-counter-drug" means a drug for human

use that contains a label that identifies the product as a drug

as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"

label includes:

(A) A "Drug Facts" panel; or

(B) A statement of the "active ingredient(s)" with a

list of those ingredients contained in the compound,

substance or preparation.

Beginning on the effective date of this amendatory Act of

the 98th General Assembly, "prescription and nonprescription

medicines and drugs" includes medical cannabis purchased from a

registered dispensing organization under the Compassionate Use

of Medical Cannabis Program Act.

As used in this Section, "adult use cannabis" means

cannabis subject to tax under the Cannabis Cultivation

Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and

does not include cannabis subject to tax under the

Compassionate Use of Medical Cannabis Program Act.

If the property that is purchased at retail from a retailer

is acquired outside Illinois and used outside Illinois before

being brought to Illinois for use here and is taxable under

this Act, the "selling price" on which the tax is computed

shall be reduced by an amount that represents a reasonable

allowance for depreciation for the period of prior out-of-state

use.

(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19.)

Section 7. The Service Use Tax Act is amended by changing

Section 3-10 as follows:

(35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)

Sec. 3-10. Rate of tax. Unless otherwise provided in this

Section, the tax imposed by this Act is at the rate of 6.25% of

the selling price of tangible personal property transferred as

an incident to the sale of service, but, for the purpose of

computing this tax, in no event shall the selling price be less

than the cost price of the property to the serviceman.

Beginning on July 1, 2000 and through December 31, 2000,

with respect to motor fuel, as defined in Section 1.1 of the

Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

the Use Tax Act, the tax is imposed at the rate of 1.25%.

With respect to gasohol, as defined in the Use Tax Act, the

tax imposed by this Act applies to (i) 70% of the selling price

of property transferred as an incident to the sale of service

on or after January 1, 1990, and before July 1, 2003, (ii) 80%

of the selling price of property transferred as an incident to

the sale of service on or after July 1, 2003 and on or before

July 1, 2017, and (iii) 100% of the selling price thereafter.

If, at any time, however, the tax under this Act on sales of

gasohol, as defined in the Use Tax Act, is imposed at the rate

of 1.25%, then the tax imposed by this Act applies to 100% of

the proceeds of sales of gasohol made during that time.

With respect to majority blended ethanol fuel, as defined

in the Use Tax Act, the tax imposed by this Act does not apply

to the selling price of property transferred as an incident to

the sale of service on or after July 1, 2003 and on or before

December 31, 2023 but applies to 100% of the selling price

thereafter.

With respect to biodiesel blends, as defined in the Use Tax

Act, with no less than 1% and no more than 10% biodiesel, the

tax imposed by this Act applies to (i) 80% of the selling price

of property transferred as an incident to the sale of service

on or after July 1, 2003 and on or before December 31, 2018 and

(ii) 100% of the proceeds of the selling price thereafter. If,

at any time, however, the tax under this Act on sales of

biodiesel blends, as defined in the Use Tax Act, with no less

than 1% and no more than 10% biodiesel is imposed at the rate

of 1.25%, then the tax imposed by this Act applies to 100% of

the proceeds of sales of biodiesel blends with no less than 1%

and no more than 10% biodiesel made during that time.

With respect to 100% biodiesel, as defined in the Use Tax

Act, and biodiesel blends, as defined in the Use Tax Act, with

more than 10% but no more than 99% biodiesel, the tax imposed

by this Act does not apply to the proceeds of the selling price

of property transferred as an incident to the sale of service

on or after July 1, 2003 and on or before December 31, 2023 but

applies to 100% of the selling price thereafter.

At the election of any registered serviceman made for each

fiscal year, sales of service in which the aggregate annual

cost price of tangible personal property transferred as an

incident to the sales of service is less than 35%, or 75% in

the case of servicemen transferring prescription drugs or

servicemen engaged in graphic arts production, of the aggregate

annual total gross receipts from all sales of service, the tax

imposed by this Act shall be based on the serviceman's cost

price of the tangible personal property transferred as an

incident to the sale of those services.

The tax shall be imposed at the rate of 1% on food prepared

for immediate consumption and transferred incident to a sale of

service subject to this Act or the Service Occupation Tax Act

by an entity licensed under the Hospital Licensing Act, the

Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD

Act, the Specialized Mental Health Rehabilitation Act of 2013,

or the Child Care Act of 1969. The tax shall also be imposed at

the rate of 1% on food for human consumption that is to be

consumed off the premises where it is sold (other than

alcoholic beverages, food consisting of or infused with adult

use cannabis, soft drinks, and food that has been prepared for

immediate consumption and is not otherwise included in this

paragraph) and prescription and nonprescription medicines,

drugs, medical appliances, products classified as Class III

medical devices by the United States Food and Drug

Administration that are used for cancer treatment pursuant to a

prescription, as well as any accessories and components related

to those devices, modifications to a motor vehicle for the

purpose of rendering it usable by a person with a disability,

and insulin, urine testing materials, syringes, and needles

used by diabetics, for human use. For the purposes of this

Section, until September 1, 2009: the term "soft drinks" means

any complete, finished, ready-to-use, non-alcoholic drink,

whether carbonated or not, including but not limited to soda

water, cola, fruit juice, vegetable juice, carbonated water,

and all other preparations commonly known as soft drinks of

whatever kind or description that are contained in any closed

or sealed bottle, can, carton, or container, regardless of

size; but "soft drinks" does not include coffee, tea,

non-carbonated water, infant formula, milk or milk products as

defined in the Grade A Pasteurized Milk and Milk Products Act,

or drinks containing 50% or more natural fruit or vegetable

juice.

Notwithstanding any other provisions of this Act,

beginning September 1, 2009, "soft drinks" means non-alcoholic

beverages that contain natural or artificial sweeteners. "Soft

drinks" do not include beverages that contain milk or milk

products, soy, rice or similar milk substitutes, or greater

than 50% of vegetable or fruit juice by volume.

Until August 1, 2009, and notwithstanding any other

provisions of this Act, "food for human consumption that is to

be consumed off the premises where it is sold" includes all

food sold through a vending machine, except soft drinks and

food products that are dispensed hot from a vending machine,

regardless of the location of the vending machine. Beginning

August 1, 2009, and notwithstanding any other provisions of

this Act, "food for human consumption that is to be consumed

off the premises where it is sold" includes all food sold

through a vending machine, except soft drinks, candy, and food

products that are dispensed hot from a vending machine,

regardless of the location of the vending machine.

Notwithstanding any other provisions of this Act,

beginning September 1, 2009, "food for human consumption that

is to be consumed off the premises where it is sold" does not

include candy. For purposes of this Section, "candy" means a

preparation of sugar, honey, or other natural or artificial

sweeteners in combination with chocolate, fruits, nuts or other

ingredients or flavorings in the form of bars, drops, or

pieces. "Candy" does not include any preparation that contains

flour or requires refrigeration.

Notwithstanding any other provisions of this Act,

beginning September 1, 2009, "nonprescription medicines and

drugs" does not include grooming and hygiene products. For

purposes of this Section, "grooming and hygiene products"

includes, but is not limited to, soaps and cleaning solutions,

shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

lotions and screens, unless those products are available by

prescription only, regardless of whether the products meet the

definition of "over-the-counter-drugs". For the purposes of

this paragraph, "over-the-counter-drug" means a drug for human

use that contains a label that identifies the product as a drug

as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"

label includes:

(A) A "Drug Facts" panel; or

(B) A statement of the "active ingredient(s)" with a

list of those ingredients contained in the compound,

substance or preparation.

Beginning on January 1, 2014 (the effective date of Public

Act 98-122), "prescription and nonprescription medicines and

drugs" includes medical cannabis purchased from a registered

dispensing organization under the Compassionate Use of Medical

Cannabis Program Act.

As used in this Section, "adult use cannabis" means

cannabis subject to tax under the Cannabis Cultivation

Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and

does not include cannabis subject to tax under the

Compassionate Use of Medical Cannabis Program Act.

If the property that is acquired from a serviceman is

acquired outside Illinois and used outside Illinois before

being brought to Illinois for use here and is taxable under

this Act, the "selling price" on which the tax is computed

shall be reduced by an amount that represents a reasonable

allowance for depreciation for the period of prior out-of-state

use.

(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19.)

Section 8. The Service Occupation Tax Act is amended by

changing Section 3-10 as follows:

(35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)

Sec. 3-10. Rate of tax. Unless otherwise provided in this

Section, the tax imposed by this Act is at the rate of 6.25% of

the "selling price", as defined in Section 2 of the Service Use

Tax Act, of the tangible personal property. For the purpose of

computing this tax, in no event shall the "selling price" be

less than the cost price to the serviceman of the tangible

personal property transferred. The selling price of each item

of tangible personal property transferred as an incident of a

sale of service may be shown as a distinct and separate item on

the serviceman's billing to the service customer. If the

selling price is not so shown, the selling price of the

tangible personal property is deemed to be 50% of the

serviceman's entire billing to the service customer. When,

however, a serviceman contracts to design, develop, and produce

special order machinery or equipment, the tax imposed by this

Act shall be based on the serviceman's cost price of the

tangible personal property transferred incident to the

completion of the contract.

Beginning on July 1, 2000 and through December 31, 2000,

with respect to motor fuel, as defined in Section 1.1 of the

Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

the Use Tax Act, the tax is imposed at the rate of 1.25%.

With respect to gasohol, as defined in the Use Tax Act, the

tax imposed by this Act shall apply to (i) 70% of the cost

price of property transferred as an incident to the sale of

service on or after January 1, 1990, and before July 1, 2003,

(ii) 80% of the selling price of property transferred as an

incident to the sale of service on or after July 1, 2003 and on

or before July 1, 2017, and (iii) 100% of the cost price

thereafter. If, at any time, however, the tax under this Act on

sales of gasohol, as defined in the Use Tax Act, is imposed at

the rate of 1.25%, then the tax imposed by this Act applies to

100% of the proceeds of sales of gasohol made during that time.

With respect to majority blended ethanol fuel, as defined

in the Use Tax Act, the tax imposed by this Act does not apply

to the selling price of property transferred as an incident to

the sale of service on or after July 1, 2003 and on or before

December 31, 2023 but applies to 100% of the selling price

thereafter.

With respect to biodiesel blends, as defined in the Use Tax

Act, with no less than 1% and no more than 10% biodiesel, the

tax imposed by this Act applies to (i) 80% of the selling price

of property transferred as an incident to the sale of service

on or after July 1, 2003 and on or before December 31, 2018 and

(ii) 100% of the proceeds of the selling price thereafter. If,

at any time, however, the tax under this Act on sales of

biodiesel blends, as defined in the Use Tax Act, with no less

than 1% and no more than 10% biodiesel is imposed at the rate

of 1.25%, then the tax imposed by this Act applies to 100% of

the proceeds of sales of biodiesel blends with no less than 1%

and no more than 10% biodiesel made during that time.

With respect to 100% biodiesel, as defined in the Use Tax

Act, and biodiesel blends, as defined in the Use Tax Act, with

more than 10% but no more than 99% biodiesel material, the tax

imposed by this Act does not apply to the proceeds of the

selling price of property transferred as an incident to the

sale of service on or after July 1, 2003 and on or before

December 31, 2023 but applies to 100% of the selling price

thereafter.

At the election of any registered serviceman made for each

fiscal year, sales of service in which the aggregate annual

cost price of tangible personal property transferred as an

incident to the sales of service is less than 35%, or 75% in

the case of servicemen transferring prescription drugs or

servicemen engaged in graphic arts production, of the aggregate

annual total gross receipts from all sales of service, the tax

imposed by this Act shall be based on the serviceman's cost

price of the tangible personal property transferred incident to

the sale of those services.

The tax shall be imposed at the rate of 1% on food prepared

for immediate consumption and transferred incident to a sale of

service subject to this Act or the Service Occupation Tax Act

by an entity licensed under the Hospital Licensing Act, the

Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD

Act, the Specialized Mental Health Rehabilitation Act of 2013,

or the Child Care Act of 1969. The tax shall also be imposed at

the rate of 1% on food for human consumption that is to be

consumed off the premises where it is sold (other than

alcoholic beverages, food consisting of or infused with adult

use cannabis, soft drinks, and food that has been prepared for

immediate consumption and is not otherwise included in this

paragraph) and prescription and nonprescription medicines,

drugs, medical appliances, products classified as Class III

medical devices by the United States Food and Drug

Administration that are used for cancer treatment pursuant to a

prescription, as well as any accessories and components related

to those devices, modifications to a motor vehicle for the

purpose of rendering it usable by a person with a disability,

and insulin, urine testing materials, syringes, and needles

used by diabetics, for human use. For the purposes of this

Section, until September 1, 2009: the term "soft drinks" means

any complete, finished, ready-to-use, non-alcoholic drink,

whether carbonated or not, including but not limited to soda

water, cola, fruit juice, vegetable juice, carbonated water,

and all other preparations commonly known as soft drinks of

whatever kind or description that are contained in any closed

or sealed can, carton, or container, regardless of size; but

"soft drinks" does not include coffee, tea, non-carbonated

water, infant formula, milk or milk products as defined in the

Grade A Pasteurized Milk and Milk Products Act, or drinks

containing 50% or more natural fruit or vegetable juice.

Notwithstanding any other provisions of this Act,

beginning September 1, 2009, "soft drinks" means non-alcoholic

beverages that contain natural or artificial sweeteners. "Soft

drinks" do not include beverages that contain milk or milk

products, soy, rice or similar milk substitutes, or greater

than 50% of vegetable or fruit juice by volume.

Until August 1, 2009, and notwithstanding any other

provisions of this Act, "food for human consumption that is to

be consumed off the premises where it is sold" includes all

food sold through a vending machine, except soft drinks and

food products that are dispensed hot from a vending machine,

regardless of the location of the vending machine. Beginning

August 1, 2009, and notwithstanding any other provisions of

this Act, "food for human consumption that is to be consumed

off the premises where it is sold" includes all food sold

through a vending machine, except soft drinks, candy, and food

products that are dispensed hot from a vending machine,

regardless of the location of the vending machine.

Notwithstanding any other provisions of this Act,

beginning September 1, 2009, "food for human consumption that

is to be consumed off the premises where it is sold" does not

include candy. For purposes of this Section, "candy" means a

preparation of sugar, honey, or other natural or artificial

sweeteners in combination with chocolate, fruits, nuts or other

ingredients or flavorings in the form of bars, drops, or

pieces. "Candy" does not include any preparation that contains

flour or requires refrigeration.

Notwithstanding any other provisions of this Act,

beginning September 1, 2009, "nonprescription medicines and

drugs" does not include grooming and hygiene products. For

purposes of this Section, "grooming and hygiene products"

includes, but is not limited to, soaps and cleaning solutions,

shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

lotions and screens, unless those products are available by

prescription only, regardless of whether the products meet the

definition of "over-the-counter-drugs". For the purposes of

this paragraph, "over-the-counter-drug" means a drug for human

use that contains a label that identifies the product as a drug

as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"

label includes:

(A) A "Drug Facts" panel; or

(B) A statement of the "active ingredient(s)" with a

list of those ingredients contained in the compound,

substance or preparation.

Beginning on January 1, 2014 (the effective date of Public

Act 98-122), "prescription and nonprescription medicines and

drugs" includes medical cannabis purchased from a registered

dispensing organization under the Compassionate Use of Medical

Cannabis Program Act.

As used in this Section, "adult use cannabis" means

cannabis subject to tax under the Cannabis Cultivation

Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and

does not include cannabis subject to tax under the

Compassionate Use of Medical Cannabis Program Act.

(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19.)

Section 9. The Retailers' Occupation Tax Act is amended by

changing Section 2-10 as follows:

(35 ILCS 120/2-10)

Sec. 2-10. Rate of tax. Unless otherwise provided in this

Section, the tax imposed by this Act is at the rate of 6.25% of

gross receipts from sales of tangible personal property made in

the course of business.

Beginning on July 1, 2000 and through December 31, 2000,

with respect to motor fuel, as defined in Section 1.1 of the

Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

the Use Tax Act, the tax is imposed at the rate of 1.25%.

Beginning on August 6, 2010 through August 15, 2010, with

respect to sales tax holiday items as defined in Section 2-8 of

this Act, the tax is imposed at the rate of 1.25%.

Within 14 days after the effective date of this amendatory

Act of the 91st General Assembly, each retailer of motor fuel

and gasohol shall cause the following notice to be posted in a

prominently visible place on each retail dispensing device that

is used to dispense motor fuel or gasohol in the State of

Illinois: "As of July 1, 2000, the State of Illinois has

eliminated the State's share of sales tax on motor fuel and

gasohol through December 31, 2000. The price on this pump

should reflect the elimination of the tax." The notice shall be

printed in bold print on a sign that is no smaller than 4

inches by 8 inches. The sign shall be clearly visible to

customers. Any retailer who fails to post or maintain a

required sign through December 31, 2000 is guilty of a petty

offense for which the fine shall be $500 per day per each

retail premises where a violation occurs.

With respect to gasohol, as defined in the Use Tax Act, the

tax imposed by this Act applies to (i) 70% of the proceeds of

sales made on or after January 1, 1990, and before July 1,

2003, (ii) 80% of the proceeds of sales made on or after July

1, 2003 and on or before July 1, 2017, and (iii) 100% of the

proceeds of sales made thereafter. If, at any time, however,

the tax under this Act on sales of gasohol, as defined in the

Use Tax Act, is imposed at the rate of 1.25%, then the tax

imposed by this Act applies to 100% of the proceeds of sales of

gasohol made during that time.

With respect to majority blended ethanol fuel, as defined

in the Use Tax Act, the tax imposed by this Act does not apply

to the proceeds of sales made on or after July 1, 2003 and on or

before December 31, 2023 but applies to 100% of the proceeds of

sales made thereafter.

With respect to biodiesel blends, as defined in the Use Tax

Act, with no less than 1% and no more than 10% biodiesel, the

tax imposed by this Act applies to (i) 80% of the proceeds of

sales made on or after July 1, 2003 and on or before December

31, 2018 and (ii) 100% of the proceeds of sales made

thereafter. If, at any time, however, the tax under this Act on

sales of biodiesel blends, as defined in the Use Tax Act, with

no less than 1% and no more than 10% biodiesel is imposed at

the rate of 1.25%, then the tax imposed by this Act applies to

100% of the proceeds of sales of biodiesel blends with no less

than 1% and no more than 10% biodiesel made during that time.

With respect to 100% biodiesel, as defined in the Use Tax

Act, and biodiesel blends, as defined in the Use Tax Act, with

more than 10% but no more than 99% biodiesel, the tax imposed

by this Act does not apply to the proceeds of sales made on or

after July 1, 2003 and on or before December 31, 2023 but

applies to 100% of the proceeds of sales made thereafter.

With respect to food for human consumption that is to be

consumed off the premises where it is sold (other than

alcoholic beverages, food consisting of or infused with adult

use cannabis, soft drinks, and food that has been prepared for

immediate consumption) and prescription and nonprescription

medicines, drugs, medical appliances, products classified as

Class III medical devices by the United States Food and Drug

Administration that are used for cancer treatment pursuant to a

prescription, as well as any accessories and components related

to those devices, modifications to a motor vehicle for the

purpose of rendering it usable by a person with a disability,

and insulin, urine testing materials, syringes, and needles

used by diabetics, for human use, the tax is imposed at the

rate of 1%. For the purposes of this Section, until September

1, 2009: the term "soft drinks" means any complete, finished,

ready-to-use, non-alcoholic drink, whether carbonated or not,

including but not limited to soda water, cola, fruit juice,

vegetable juice, carbonated water, and all other preparations

commonly known as soft drinks of whatever kind or description

that are contained in any closed or sealed bottle, can, carton,

or container, regardless of size; but "soft drinks" does not

include coffee, tea, non-carbonated water, infant formula,

milk or milk products as defined in the Grade A Pasteurized

Milk and Milk Products Act, or drinks containing 50% or more

natural fruit or vegetable juice.

Notwithstanding any other provisions of this Act,

beginning September 1, 2009, "soft drinks" means non-alcoholic

beverages that contain natural or artificial sweeteners. "Soft

drinks" do not include beverages that contain milk or milk

products, soy, rice or similar milk substitutes, or greater

than 50% of vegetable or fruit juice by volume.

Until August 1, 2009, and notwithstanding any other

provisions of this Act, "food for human consumption that is to

be consumed off the premises where it is sold" includes all

food sold through a vending machine, except soft drinks and

food products that are dispensed hot from a vending machine,

regardless of the location of the vending machine. Beginning

August 1, 2009, and notwithstanding any other provisions of

this Act, "food for human consumption that is to be consumed

off the premises where it is sold" includes all food sold

through a vending machine, except soft drinks, candy, and food

products that are dispensed hot from a vending machine,

regardless of the location of the vending machine.

Notwithstanding any other provisions of this Act,

beginning September 1, 2009, "food for human consumption that

is to be consumed off the premises where it is sold" does not

include candy. For purposes of this Section, "candy" means a

preparation of sugar, honey, or other natural or artificial

sweeteners in combination with chocolate, fruits, nuts or other

ingredients or flavorings in the form of bars, drops, or

pieces. "Candy" does not include any preparation that contains

flour or requires refrigeration.

Notwithstanding any other provisions of this Act,

beginning September 1, 2009, "nonprescription medicines and

drugs" does not include grooming and hygiene products. For

purposes of this Section, "grooming and hygiene products"

includes, but is not limited to, soaps and cleaning solutions,

shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

lotions and screens, unless those products are available by

prescription only, regardless of whether the products meet the

definition of "over-the-counter-drugs". For the purposes of

this paragraph, "over-the-counter-drug" means a drug for human

use that contains a label that identifies the product as a drug

as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"

label includes:

(A) A "Drug Facts" panel; or

(B) A statement of the "active ingredient(s)" with a

list of those ingredients contained in the compound,

substance or preparation.

Beginning on the effective date of this amendatory Act of

the 98th General Assembly, "prescription and nonprescription

medicines and drugs" includes medical cannabis purchased from a

registered dispensing organization under the Compassionate Use

of Medical Cannabis Program Act.

As used in this Section, "adult use cannabis" means

cannabis subject to tax under the Cannabis Cultivation

Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and

does not include cannabis subject to tax under the

Compassionate Use of Medical Cannabis Program Act.

(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19.)

Section 10. The Tobacco Products Tax Act of 1995 is amended

by changing Section 10-5 as follows:

(35 ILCS 143/10-5)

Sec. 10-5. Definitions. For purposes of this Act:

"Business" means any trade, occupation, activity, or

enterprise engaged in, at any location whatsoever, for the

purpose of selling tobacco products.

"Cigarette" has the meaning ascribed to the term in Section

1 of the Cigarette Tax Act.

"Contraband little cigar" means:

(1) packages of little cigars containing 20 or 25

little cigars that do not bear a required tax stamp under

this Act;

(2) packages of little cigars containing 20 or 25

little cigars that bear a fraudulent, imitation, or

counterfeit tax stamp;

(3) packages of little cigars containing 20 or 25

little cigars that are improperly tax stamped, including

packages of little cigars that bear only a tax stamp of

another state or taxing jurisdiction; or

(4) packages of little cigars containing other than 20

or 25 little cigars in the possession of a distributor,

retailer or wholesaler, unless the distributor, retailer,

or wholesaler possesses, or produces within the time frame

provided in Section 10-27 or 10-28 of this Act, an invoice

from a stamping distributor, distributor, or wholesaler

showing that the tax on the packages has been or will be

paid.

"Correctional Industries program" means a program run by a

State penal institution in which residents of the penal

institution produce tobacco products for sale to persons

incarcerated in penal institutions or resident patients of a

State operated mental health facility.

"Department" means the Illinois Department of Revenue.

"Distributor" means any of the following:

(1) Any manufacturer or wholesaler in this State

engaged in the business of selling tobacco products who

sells, exchanges, or distributes tobacco products to

retailers or consumers in this State.

(2) Any manufacturer or wholesaler engaged in the

business of selling tobacco products from without this

State who sells, exchanges, distributes, ships, or

transports tobacco products to retailers or consumers

located in this State, so long as that manufacturer or

wholesaler has or maintains within this State, directly or

by subsidiary, an office, sales house, or other place of

business, or any agent or other representative operating

within this State under the authority of the person or

subsidiary, irrespective of whether the place of business

or agent or other representative is located here

permanently or temporarily.

(3) Any retailer who receives tobacco products on which

the tax has not been or will not be paid by another

distributor.

"Distributor" does not include any person, wherever

resident or located, who makes, manufactures, or fabricates

tobacco products as part of a Correctional Industries program

for sale to residents incarcerated in penal institutions or

resident patients of a State operated mental health facility.

"Electronic cigarette" means:

(1) any device that employs a battery or other

mechanism to heat a solution or substance to produce a

vapor or aerosol intended for inhalation;

(2) any cartridge or container of a solution or

substance intended to be used with or in the device or to

refill the device; or

(3) any solution or substance, whether or not it

contains nicotine, intended for use in the device.

"Electronic cigarette" includes, but is not limited to, any

electronic nicotine delivery system, electronic cigar,

electronic cigarillo, electronic pipe, electronic hookah, vape

pen, or similar product or device, and any component or part

that can be used to build the product or device. "Electronic

cigarette" does not include: cigarettes, as defined in Section

1 of the Cigarette Tax Act; any product approved by the United

States Food and Drug Administration for sale as a tobacco

cessation product, a tobacco dependence product, or for other

medical purposes that is marketed and sold solely for that

approved purpose; any asthma inhaler prescribed by a physician

for that condition that is marketed and sold solely for that

approved purpose; or any therapeutic product approved for use

under the Compassionate Use of Medical Cannabis Pilot Program

Act.

"Little cigar" means and includes any roll, made wholly or

in part of tobacco, where such roll has an integrated cellulose

acetate filter and weighs less than 4 pounds per thousand and

the wrapper or cover of which is made in whole or in part of

tobacco.

"Manufacturer" means any person, wherever resident or

located, who manufactures and sells tobacco products, except a

person who makes, manufactures, or fabricates tobacco products

as a part of a Correctional Industries program for sale to

persons incarcerated in penal institutions or resident

patients of a State operated mental health facility.

Beginning on January 1, 2013, "moist snuff" means any

finely cut, ground, or powdered tobacco that is not intended to

be smoked, but shall not include any finely cut, ground, or

powdered tobacco that is intended to be placed in the nasal

cavity.

"Person" means any natural individual, firm, partnership,

association, joint stock company, joint venture, limited

liability company, or public or private corporation, however

formed, or a receiver, executor, administrator, trustee,

conservator, or other representative appointed by order of any

court.

"Place of business" means and includes any place where

tobacco products are sold or where tobacco products are

manufactured, stored, or kept for the purpose of sale or

consumption, including any vessel, vehicle, airplane, train,

or vending machine.

"Retailer" means any person in this State engaged in the

business of selling tobacco products to consumers in this

State, regardless of quantity or number of sales.

"Sale" means any transfer, exchange, or barter in any

manner or by any means whatsoever for a consideration and

includes all sales made by persons.

"Stamp" or "stamps" mean the indicia required to be affixed

on a package of little cigars that evidence payment of the tax

on packages of little cigars containing 20 or 25 little cigars

under Section 10-10 of this Act. These stamps shall be the same

stamps used for cigarettes under the Cigarette Tax Act.

"Stamping distributor" means a distributor licensed under

this Act and also licensed as a distributor under the Cigarette

Tax Act or Cigarette Use Tax Act.

"Tobacco products" means any cigars, including little

cigars; cheroots; stogies; periques; granulated, plug cut,

crimp cut, ready rubbed, and other smoking tobacco; snuff

(including moist snuff) or snuff flour; cavendish; plug and

twist tobacco; fine-cut and other chewing tobaccos; shorts;

refuse scraps, clippings, cuttings, and sweeping of tobacco;

and other kinds and forms of tobacco, prepared in such manner

as to be suitable for chewing or smoking in a pipe or

otherwise, or both for chewing and smoking; but does not

include cigarettes as defined in Section 1 of the Cigarette Tax

Act or tobacco purchased for the manufacture of cigarettes by

cigarette distributors and manufacturers defined in the

Cigarette Tax Act and persons who make, manufacture, or

fabricate cigarettes as a part of a Correctional Industries

program for sale to residents incarcerated in penal

institutions or resident patients of a State operated mental

health facility.

Beginning on July 1, 2019, "tobacco products" also includes

electronic cigarettes.

"Wholesale price" means the established list price for

which a manufacturer sells tobacco products to a distributor,

before the allowance of any discount, trade allowance, rebate,

or other reduction. In the absence of such an established list

price, the manufacturer's invoice price at which the

manufacturer sells the tobacco product to unaffiliated

distributors, before any discounts, trade allowances, rebates,

or other reductions, shall be presumed to be the wholesale

price.

"Wholesaler" means any person, wherever resident or

located, engaged in the business of selling tobacco products to

others for the purpose of resale. "Wholesaler", when used in

this Act, does not include a person licensed as a distributor

under Section 10-20 of this Act unless expressly stated in this

Act.

(Source: P.A. 101-31, eff. 6-28-19.)

Section 15. The Counties Code is amended by changing

Section 5-1006.8 as follows:

(55 ILCS 5/5-1006.8)

Sec. 5-1006.8. County Cannabis Retailers' Occupation Tax

Law.

(a) This Section may be referred to as the County Cannabis

Retailers' Occupation Tax Law. The On and after January 1,

2020, the corporate authorities of any county may, by

ordinance, impose a tax upon all persons engaged in the

business of selling cannabis, other than cannabis purchased

under the Compassionate Use of Medical Cannabis Pilot Program

Act, at retail in the county on the gross receipts from these

sales made in the course of that business. If imposed, the tax

shall be imposed only in 0.25% increments. The tax rate may not

exceed: (i) 3.75% of the gross receipts of sales made in

unincorporated areas of the county; and (ii) 3% of the gross

receipts of sales made in a municipality located in the county.

The tax imposed under this Section and all civil penalties that

may be assessed as an incident of the tax shall be collected

and enforced by the Department of Revenue. The Department of

Revenue shall have full power to administer and enforce this

Section; to collect all taxes and penalties due hereunder; to

dispose of taxes and penalties so collected in the manner

hereinafter provided; and to determine all rights to credit

memoranda arising on account of the erroneous payment of tax or

penalty under this Section. In the administration of and

compliance with this Section, the Department of Revenue and

persons who are subject to this Section shall have the same

rights, remedies, privileges, immunities, powers and duties,

and be subject to the same conditions, restrictions,

limitations, penalties, and definitions of terms, and employ

the same modes of procedure, as are described in Sections 1,

1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect

to all provisions therein other than the State rate of tax),

2a, 2b, 2c, 2i, 3 (except as to the disposition of taxes and

penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,

5j, 5k, 5l, 6, 6a, 6bb, 6c, 6d, 7 8, 8, 9, 10, 11, 11a, 12, and

13 of the Retailers' Occupation Tax Act and Section 3-7 of the

Uniform Penalty and Interest Act as fully as if those

provisions were set forth in this Section.

(b) Persons subject to any tax imposed under the authority

granted in this Section may reimburse themselves for their

seller's tax liability hereunder by separately stating that tax

as an additional charge, which charge may be stated in

combination, in a single amount, with any State tax that

sellers are required to collect.

(c) Whenever the Department of Revenue determines that a

refund should be made under this Section to a claimant instead

of issuing a credit memorandum, the Department of Revenue shall

notify the State Comptroller, who shall cause the order to be

drawn for the amount specified and to the person named in the

notification from the Department of Revenue.

(d) The Department of Revenue shall immediately pay over to

the State Treasurer, ex officio, as trustee, all taxes and

penalties collected hereunder for deposit into the Local

Cannabis Retailers' Occupation Consumer Excise Tax Trust Fund.

(e) On or before the 25th day of each calendar month, the

Department of Revenue shall prepare and certify to the

Comptroller the amount of money to be disbursed from the Local

Cannabis Retailers' Occupation Consumer Excise Tax Trust Fund

to counties from which retailers have paid taxes or penalties

under this Section during the second preceding calendar month.

The amount to be paid to each county shall be the amount (not

including credit memoranda) collected under this Section from

sales made in the county during the second preceding calendar

month, plus an amount the Department of Revenue determines is

necessary to offset any amounts that were erroneously paid to a

different taxing body, and not including an amount equal to the

amount of refunds made during the second preceding calendar

month by the Department on behalf of such county, and not

including any amount that the Department determines is

necessary to offset any amounts that were payable to a

different taxing body but were erroneously paid to the county,

less 1.5% of the remainder, which the Department shall transfer

into the Tax Compliance and Administration Fund. The

Department, at the time of each monthly disbursement to the

counties, shall prepare and certify the State Comptroller the

amount to be transferred into the Tax Compliance and

Administration Fund under this Section. Within 10 days after

receipt by the Comptroller of the disbursement certification to

the counties and the Tax Compliance and Administration Fund

provided for in this Section to be given to the Comptroller by

the Department, the Comptroller shall cause the orders to be

drawn for the respective amounts in accordance with the

directions contained in the certification.

(f) An ordinance or resolution imposing or discontinuing a

tax under this Section or effecting a change in the rate

thereof that is shall be adopted on or after June 25, 2019 (the

effective date of Public Act 101-27) and for which a certified

copy is thereof filed with the Department on or before April 1,

2020 shall be administered and enforced by the Department

beginning on July 1, 2020. For ordinances filed with the

Department after April 1, 2020, an ordinance or resolution

imposing or discontinuing a tax under this Section or effecting

a change in the rate thereof shall either (i) be adopted and a

certified copy thereof filed with the Department on or before

the first day of April, whereupon the Department shall proceed

to administer and enforce this Section as of the first day of

July next following the adoption and filing; or (ii) be adopted

and a certified copy thereof filed with the Department on or

before the first day of October, whereupon the Department shall

proceed to administer and enforce this Section as of the first

day of January the first day of June, whereupon the Department

shall proceed to administer and enforce this Section as of the

first day of September next following the adoption and filing.

(Source: P.A. 101-27, eff. 6-25-19; 101-363, eff. 8-9-19.)

Section 20. The Illinois Municipal Code is amended by

changing and renumbering Section 8-11-22, as added by Public

Act 101-27, and by changing Section 8-11-6a as follows:

(65 ILCS 5/8-11-6a) (from Ch. 24, par. 8-11-6a)

Sec. 8-11-6a. Home rule municipalities; preemption of

certain taxes. Except as provided in Sections 8-11-1, 8-11-5,

8-11-6, 8-11-6b, 8-11-6c, 8-11-23 8-11-22, and 11-74.3-6 on and

after September 1, 1990, no home rule municipality has the

authority to impose, pursuant to its home rule authority, a

retailer's occupation tax, service occupation tax, use tax,

sales tax or other tax on the use, sale or purchase of tangible

personal property based on the gross receipts from such sales

or the selling or purchase price of said tangible personal

property. Notwithstanding the foregoing, this Section does not

preempt any home rule imposed tax such as the following: (1) a

tax on alcoholic beverages, whether based on gross receipts,

volume sold or any other measurement; (2) a tax based on the

number of units of cigarettes or tobacco products (provided,

however, that a home rule municipality that has not imposed a

tax based on the number of units of cigarettes or tobacco

products before July 1, 1993, shall not impose such a tax after

that date); (3) a tax, however measured, based on the use of a

hotel or motel room or similar facility; (4) a tax, however

measured, on the sale or transfer of real property; (5) a tax,

however measured, on lease receipts; (6) a tax on food prepared

for immediate consumption and on alcoholic beverages sold by a

business which provides for on premise consumption of said food

or alcoholic beverages; or (7) other taxes not based on the

selling or purchase price or gross receipts from the use, sale

or purchase of tangible personal property. This Section does

not preempt a home rule municipality with a population of more

than 2,000,000 from imposing a tax, however measured, on the

use, for consideration, of a parking lot, garage, or other

parking facility. This Section is not intended to affect any

existing tax on food and beverages prepared for immediate

consumption on the premises where the sale occurs, or any

existing tax on alcoholic beverages, or any existing tax

imposed on the charge for renting a hotel or motel room, which

was in effect January 15, 1988, or any extension of the

effective date of such an existing tax by ordinance of the

municipality imposing the tax, which extension is hereby

authorized, in any non-home rule municipality in which the

imposition of such a tax has been upheld by judicial

determination, nor is this Section intended to preempt the

authority granted by Public Act 85-1006. On and after December

1, 2019, no home rule municipality has the authority to impose,

pursuant to its home rule authority, a tax, however measured,

on sales of aviation fuel, as defined in Section 3 of the

Retailers' Occupation Tax Act, unless the tax is not subject to

the revenue use requirements of 49 U.S.C. 47107(b) 47017(b) and

49 U.S.C. 47133, or unless the tax revenue is expended for

airport-related purposes. For purposes of this Section,

"airport-related purposes" has the meaning ascribed in Section

6z-20.2 of the State Finance Act. Aviation fuel shall be

excluded from tax only if, and for so long as, the revenue use

requirements of 49 U.S.C. 47107(b) 47017(b) and 49 U.S.C. 47133

are binding on the municipality. This Section is a limitation,

pursuant to subsection (g) of Section 6 of Article VII of the

Illinois Constitution, on the power of home rule units to tax.

The changes made to this Section by Public Act 101-10 this

amendatory Act of the 101st General Assembly are a denial and

limitation of home rule powers and functions under subsection

(g) of Section 6 of Article VII of the Illinois Constitution.

(Source: P.A. 101-10, eff. 6-5-19; 101-27, eff. 6-25-19;

revised 8-19-19.)

(65 ILCS 5/8-11-23)

Sec. 8-11-23 8-11-22. Municipal Cannabis Retailers'

Occupation Tax Law.

(a) This Section may be referred to as the Municipal

Cannabis Retailers' Occupation Tax Law. The On and after

January 1, 2020, the corporate authorities of any municipality

may, by ordinance, impose a tax upon all persons engaged in the

business of selling cannabis, other than cannabis purchased

under the Compassionate Use of Medical Cannabis Pilot Program

Act, at retail in the municipality on the gross receipts from

these sales made in the course of that business. If imposed,

the tax may not exceed 3% of the gross receipts from these

sales and shall only be imposed in 1/4% increments. The tax

imposed under this Section and all civil penalties that may be

assessed as an incident of the tax shall be collected and

enforced by the Department of Revenue. The Department of

Revenue shall have full power to administer and enforce this

Section; to collect all taxes and penalties due hereunder; to

dispose of taxes and penalties so collected in the manner

hereinafter provided; and to determine all rights to credit

memoranda arising on account of the erroneous payment of tax or

penalty under this Section. In the administration of and

compliance with this Section, the Department and persons who

are subject to this Section shall have the same rights,

remedies, privileges, immunities, powers and duties, and be

subject to the same conditions, restrictions, limitations,

penalties and definitions of terms, and employ the same modes

of procedure, as are prescribed in Sections 1, 1a, 1d, 1e, 1f,

1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all

provisions therein other than the State rate of tax), 2a, 2b,

2c, 2i, 3 (except as to the disposition of taxes and penalties

collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,

5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the

Retailers' Occupation Tax Act and Section 3-7 of the Uniform

Penalty and Interest Act, as fully as if those provisions were

set forth herein.

(b) Persons subject to any tax imposed under the authority

granted in this Section may reimburse themselves for their

seller's tax liability hereunder by separately stating that tax

as an additional charge, which charge may be stated in

combination, in a single amount, with any State tax that

sellers are required to collect.

(c) Whenever the Department of Revenue determines that a

refund should be made under this Section to a claimant instead

of issuing a credit memorandum, the Department of Revenue shall

notify the State Comptroller, who shall cause the order to be

drawn for the amount specified and to the person named in the

notification from the Department of Revenue.

(d) The Department of Revenue shall immediately pay over to

the State Treasurer, ex officio, as trustee, all taxes and

penalties collected hereunder for deposit into the Local

Cannabis Retailers' Occupation Tax Trust Regulation Fund.

(e) On or before the 25th day of each calendar month, the

Department of Revenue shall prepare and certify to the

Comptroller the amount of money to be disbursed from the Local

Cannabis Retailers' Occupation Consumer Excise Tax Trust Fund

to municipalities from which retailers have paid taxes or

penalties under this Section during the second preceding

calendar month. The amount to be paid to each municipality

shall be the amount (not including credit memoranda) collected

under this Section from sales made in the municipality during

the second preceding calendar month, plus an amount the

Department of Revenue determines is necessary to offset any

amounts that were erroneously paid to a different taxing body,

and not including an amount equal to the amount of refunds made

during the second preceding calendar month by the Department on

behalf of such municipality, and not including any amount that

the Department determines is necessary to offset any amounts

that were payable to a different taxing body but were

erroneously paid to the municipality, less 1.5% of the

remainder, which the Department shall transfer into the Tax

Compliance and Administration Fund. The Department, at the time

of each monthly disbursement to the municipalities, shall

prepare and certify to the State Comptroller the amount to be

transferred into the Tax Compliance and Administration Fund

under this Section. Within 10 days after receipt by the

Comptroller of the disbursement certification to the

municipalities and the Tax Compliance and Administration Fund

provided for in this Section to be given to the Comptroller by

the Department, the Comptroller shall cause the orders to be

drawn for the respective amounts in accordance with the

directions contained in the certification.

(f) An ordinance or resolution imposing or discontinuing a

tax under this Section or effecting a change in the rate

thereof that is shall be adopted on or after June 25, 2019 (the

effective date of Public Act 101-27) and for which a certified

copy is thereof filed with the Department on or before April 1,

2020 shall be administered and enforced by the Department

beginning on July 1, 2020. For ordinances filed with the

Department after April 1, 2020, an ordinance or resolution

imposing or discontinuing a tax under this Section or effecting

a change in the rate thereof shall either (i) be adopted and a

certified copy thereof filed with the Department on or before

the first day of April, whereupon the Department shall proceed

to administer and enforce this Section as of the first day of

July next following the adoption and filing; or (ii) be adopted

and a certified copy thereof filed with the Department on or

before the first day of October, whereupon the Department shall

proceed to administer and enforce this Section as of the first

day of January the first day of June, whereupon the Department

shall proceed to administer and enforce this Section as of the

first day of September next following the adoption and filing.

(Source: P.A. 101-27, eff. 6-25-19; revised 9-17-19.)

Section 21. The Savings Bank Act is amended by changing

Section 9002 as follows:

(205 ILCS 205/9002) (from Ch. 17, par. 7309-2)

Sec. 9002. Powers of Secretary.

(a) The Secretary shall have the following powers and

duties:

(1) To exercise the rights, powers, and duties set

forth in this Act or in any related Act.

(2) To establish regulations as may be reasonable or

necessary to accomplish the purposes of this Act.

(3) To make an annual report regarding the work of his

or her office under this Act as he may consider desirable

to the Governor, or as the Governor may request.

(4) To cause a suit to be filed in his or her name to

enforce any law of this State that applies to savings

banks, their service corporations, subsidiaries,

affiliates, or holding companies operating under this Act,

including the enforcement of any obligation of the

officers, directors, agents, or employees of any savings

bank.

(5) To prescribe a uniform manner in which the books

and records of every savings bank are to be maintained.

(6) To establish a reasonable fee structure for savings

banks and holding companies operating under this Act and

for their service corporations and subsidiaries. The fees

shall include, but not be limited to, annual fees,

application fees, regular and special examination fees,

and other fees as the Secretary establishes and

demonstrates to be directly resultant from the Secretary's

responsibilities under this Act and as are directly

attributable to individual entities operating under this

Act. The aggregate of all moneys collected by the Secretary

on and after the effective date of this Act shall be paid

promptly after receipt of the same, accompanied by a

detailed statement thereof, into the Savings Bank

Regulatory Fund established under Section 9002.1 of this

Act. Nothing in this Act shall prevent continuing the

practice of paying expenses involving salaries,

retirement, social security, and State-paid insurance of

State officers by appropriation from the General Revenue

Fund. The Secretary may require payment of the fees under

this Act by an electronic transfer of funds or an automatic

debit of an account of each of the savings banks.

(b) Notwithstanding the provisions of subsection (a), the

Secretary shall not:

(1) issue an order against a savings bank or holding

company organized under this Act for unsafe or unsound

banking practices solely because the entity provides or has

provided financial services to a cannabis-related

legitimate business;

(2) prohibit, penalize, or otherwise discourage a

savings bank or holding company organized under this Act

from providing financial services to a cannabis-related

legitimate business solely because the entity provides or

has provided financial services to a cannabis-related

legitimate business;

(3) recommend, incentivize, or encourage a savings

bank or holding company organized under this Act not to

offer financial services to an account holder or to

downgrade or cancel the financial services offered to an

account holder solely because:

(A) the account holder is a manufacturer or

producer, or is the owner, operator, or employee of, a

cannabis-related legitimate business;

(B) the account holder later becomes an owner or

operator of a cannabis-related legitimate business; or

(C) the savings bank or holding company organized

under this Act was not aware that the account holder is

the owner or operator of a cannabis-related legitimate

business; or

(4) take any adverse or corrective supervisory action

on a loan made to an owner or operator of:

(A) a cannabis-related legitimate business solely

because the owner or operator owns or operates a

cannabis-related legitimate business; or

(B) real estate or equipment that is leased to a

cannabis-related legitimate business solely because

the owner or operator of the real estate or equipment

leased the equipment or real estate to a

cannabis-related legitimate business.

(Source: P.A. 97-492, eff. 1-1-12; 98-1081, eff. 1-1-15.)

Section 23. The Smoke Free Illinois Act is amended by

changing Section 35 as follows:

(410 ILCS 82/35)

Sec. 35. Exemptions. Notwithstanding any other provision

of this Act, smoking is allowed in the following areas:

(1) Private residences or dwelling places, except when

used as a child care, adult day care, or healthcare

facility or any other home-based business open to the

public.

(2) Retail tobacco stores as defined in Section 10 of

this Act in operation prior to the effective date of this

amendatory Act of the 95th General Assembly. The retail

tobacco store shall annually file with the Department by

January 31st an affidavit stating the percentage of its

gross income during the prior calendar year that was

derived from the sale of loose tobacco, plants, or herbs

and cigars, cigarettes, pipes, or other smoking devices for

smoking tobacco and related smoking accessories. Any

retail tobacco store that begins operation after the

effective date of this amendatory Act may only qualify for

an exemption if located in a freestanding structure

occupied solely by the business and smoke from the business

does not migrate into an enclosed area where smoking is

prohibited. A retail tobacco store may, with authorization

or permission from a unit of local government, including a

home rule unit, or any non-home rule county within the

unincorporated territory of the county, allow the

on-premises consumption of cannabis in a specially

designated areas.

(3) (Blank).

(4) Hotel and motel sleeping rooms that are rented to

guests and are designated as smoking rooms, provided that

all smoking rooms on the same floor must be contiguous and

smoke from these rooms must not infiltrate into nonsmoking

rooms or other areas where smoking is prohibited. Not more

than 25% of the rooms rented to guests in a hotel or motel

may be designated as rooms where smoking is allowed. The

status of rooms as smoking or nonsmoking may not be

changed, except to permanently add additional nonsmoking

rooms.

(5) Enclosed laboratories that are excluded from the

definition of "place of employment" in Section 10 of this

Act. Rulemaking authority to implement this amendatory Act

of the 95th General Assembly, if any, is conditioned on the

rules being adopted in accordance with all provisions of

the Illinois Administrative Procedure Act and all rules and

procedures of the Joint Committee on Administrative Rules;

any purported rule not so adopted, for whatever reason, is

unauthorized.

(6) Common smoking rooms in long-term care facilities

operated under the authority of the Illinois Department of

Veterans' Affairs or licensed under the Nursing Home Care

Act that are accessible only to residents who are smokers

and have requested in writing to have access to the common

smoking room where smoking is permitted and the smoke shall

not infiltrate other areas of the long-term care facility.

Rulemaking authority to implement this amendatory Act of

the 95th General Assembly, if any, is conditioned on the

rules being adopted in accordance with all provisions of

the Illinois Administrative Procedure Act and all rules and

procedures of the Joint Committee on Administrative Rules;

any purported rule not so adopted, for whatever reason, is

unauthorized.

(7) A convention hall of the Donald E. Stephens

Convention Center where a meeting or trade show for

manufacturers and suppliers of tobacco and tobacco

products and accessories is being held, during the time the

meeting or trade show is occurring, if the meeting or trade

show:

(i) is a trade-only event and not open to the

public;

(ii) is limited to attendees and exhibitors that

are 21 years of age or older;

(iii) is being produced or organized by a business

relating to tobacco or a professional association for

convenience stores; and

(iv) involves the display of tobacco products.

Smoking is not allowed in any public area outside of

the hall designated for the meeting or trade show.

This paragraph (7) is inoperative on and after October

1, 2015.

(8) A dispensing organization, as defined in the

Cannabis Regulation and Tax Act, authorized or permitted by

a unit local government to allow on-site consumption of

cannabis, if the establishment: (1) maintains a specially

designated area or areas for the purpose of heating,

burning, smoking, or lighting cannabis; (2) is limited to

individuals 21 or older; and (3) maintains a locked door or

barrier to any specially designated areas for the purpose

of heating, burning, smoking or lighting cannabis.

(Source: P.A. 98-1023, eff. 8-22-14.)

Section 24. The Compassionate Use of Medical Cannabis

Program Act is amended by changing Sections 60 and 210 as

follows:

(410 ILCS 130/60)

Sec. 60. Issuance of registry identification cards.

(a) Except as provided in subsection (b), the Department of

Public Health shall:

(1) verify the information contained in an application

or renewal for a registry identification card submitted

under this Act, and approve or deny an application or

renewal, within 90 days of receiving a completed

application or renewal application and all supporting

documentation specified in Section 55;

(2) issue registry identification cards to a

qualifying patient and his or her designated caregiver, if

any, within 15 business days of approving the application

or renewal;

(3) enter the registry identification number of the

registered dispensing organization the patient designates

into the verification system; and

(4) allow for an electronic application process, and

provide a confirmation by electronic or other methods that

an application has been submitted.

Notwithstanding any other provision of this Act, the

Department of Public Health shall adopt rules for qualifying

patients and applicants with life-long debilitating medical

conditions, who may be charged annual renewal fees. The

Department of Public Health shall not require patients and

applicants with life-long debilitating medical conditions to

apply to renew registry identification cards.

(b) The Department of Public Health may not issue a

registry identification card to a qualifying patient who is

under 18 years of age, unless that patient suffers from

seizures, including those characteristic of epilepsy, or as

provided by administrative rule. The Department of Public

Health shall adopt rules for the issuance of a registry

identification card for qualifying patients who are under 18

years of age and suffering from seizures, including those

characteristic of epilepsy. The Department of Public Health may

adopt rules to allow other individuals under 18 years of age to

become registered qualifying patients under this Act with the

consent of a parent or legal guardian. Registered qualifying

patients under 18 21 years of age shall be prohibited from

consuming forms of cannabis other than medical cannabis infused

products and purchasing any usable cannabis or paraphernalia

used for smoking or vaping medical cannabis.

(c) A veteran who has received treatment at a VA hospital

is deemed to have a bona fide health care professional-patient

relationship with a VA certifying health care professional if

the patient has been seen for his or her debilitating medical

condition at the VA hospital in accordance with VA hospital

protocols. All reasonable inferences regarding the existence

of a bona fide health care professional-patient relationship

shall be drawn in favor of an applicant who is a veteran and

has undergone treatment at a VA hospital.

(c-10) An individual who submits an application as someone

who is terminally ill shall have all fees waived. The

Department of Public Health shall within 30 days after this

amendatory Act of the 99th General Assembly adopt emergency

rules to expedite approval for terminally ill individuals.

These rules shall include, but not be limited to, rules that

provide that applications by individuals with terminal

illnesses shall be approved or denied within 14 days of their

submission.

(d) No later than 6 months after the effective date of this

amendatory Act of the 101st General Assembly, the Secretary of

State shall remove all existing notations on driving records

that the person is a registered qualifying patient or his or

her caregiver under this Act. Upon the approval of the

registration and issuance of a registry card under this

Section, the Department of Public Health shall forward the

designated caregiver or registered qualified patient's

driver's registration number to the Secretary of State and

certify that the individual is permitted to engage in the

medical use of cannabis. For the purposes of law enforcement,

the Secretary of State shall make a notation on the person's

driving record stating the person is a registered qualifying

patient who is entitled to the lawful medical use of cannabis.

If the person no longer holds a valid registry card, the

Department shall notify the Secretary of State and the

Secretary of State shall remove the notation from the person's

driving record. The Department and the Secretary of State may

establish a system by which the information may be shared

electronically.

(e) Upon the approval of the registration and issuance of a

registry card under this Section, the Department of Public

Health shall electronically forward the registered qualifying

patient's identification card information to the Prescription

Monitoring Program established under the Illinois Controlled

Substances Act and certify that the individual is permitted to

engage in the medical use of cannabis. For the purposes of

patient care, the Prescription Monitoring Program shall make a

notation on the person's prescription record stating that the

person is a registered qualifying patient who is entitled to

the lawful medical use of cannabis. If the person no longer

holds a valid registry card, the Department of Public Health

shall notify the Prescription Monitoring Program and

Department of Human Services to remove the notation from the

person's record. The Department of Human Services and the

Prescription Monitoring Program shall establish a system by

which the information may be shared electronically. This

confidential list may not be combined or linked in any manner

with any other list or database except as provided in this

Section.

(f) (Blank).

(Source: P.A. 100-1114, eff. 8-28-18; 101-363, eff. 8-9-19.)

(410 ILCS 130/210)

Sec. 210. Returns.

(a) This subsection (a) applies to returns due on or before

the effective date of this amendatory Act of the 101st General

Assembly. On or before the twentieth day of each calendar

month, every person subject to the tax imposed under this Law

during the preceding calendar month shall file a return with

the Department, stating:

(1) The name of the taxpayer;

(2) The number of ounces of medical cannabis sold to a

dispensing dispensary organization or a registered

qualifying patient during the preceding calendar month;

(3) The amount of tax due;

(4) The signature of the taxpayer; and

(5) Such other reasonable information as the

Department may require.

If a taxpayer fails to sign a return within 30 days after

the proper notice and demand for signature by the Department,

the return shall be considered valid and any amount shown to be

due on the return shall be deemed assessed.

The taxpayer shall remit the amount of the tax due to the

Department at the time the taxpayer files his or her return.

(b) Beginning on the effective date of this amendatory Act

of the 101st General Assembly, Section 65-20 of the Cannabis

Regulation and Tax Act shall apply to returns filed and taxes

paid under this Act to the same extent as if those provisions

were set forth in full in this Section.

(Source: P.A. 101-27, eff. 6-25-19.)

Section 25. The Cannabis Regulation and Tax Act is amended

by changing Sections 1-5, 1-10, 5-5, 5-15, 5-20, 5-25, 7-1,

7-10, 7-15, 7-25, 10-5, 10-10, 10-15, 10-25, 10-30, 10-35,

10-40, 10-50, 15-15, 15-20, 15-25, 15-30, 15-35, 15-36, 15-40,

15-55, 15-65, 15-70, 15-75, 15-85, 15-95, 15-100, 15-145,

15-155, 20-10, 20-15, 20-20, 20-30, 25-1, 25-10, 30-5, 30-10,

30-15, 30-30, 35-5, 35-15, 35-25, 35-31, 40-5, 40-10, 40-15,

40-20, 40-25, 40-30, 40-35, 40-40, 45-5, 50-5, 55-10, 55-20,

55-21, 55-25, 55-28, 55-30, 55-35, 55-65, 55-80, 55-85, 55-95,

60-5, 60-20, 65-5, 65-10, and 65-15 and by adding Section 1-7

as follows:

(410 ILCS 705/1-5)

Sec. 1-5. Findings.

(a) In the interest of allowing law enforcement to focus on

violent and property crimes, generating revenue for education,

substance abuse prevention and treatment, freeing public

resources to invest in communities and other public purposes,

and individual freedom, the General Assembly finds and declares

that the use of cannabis should be legal for persons 21 years

of age or older and should be taxed in a manner similar to

alcohol.

(b) In the interest of the health and public safety of the

residents of Illinois, the General Assembly further finds and

declares that cannabis should be regulated in a manner similar

to alcohol so that:

(1) persons will have to show proof of age before

purchasing cannabis;

(2) selling, distributing, or transferring cannabis to

minors and other persons under 21 years of age shall remain

illegal;

(3) driving under the influence of cannabis, operating

a watercraft under the influence of cannabis, and operating

a snowmobile under the influence of cannabis shall remain

illegal;

(4) legitimate, taxpaying business people, and not

criminal actors, will conduct sales of cannabis;

(5) cannabis sold in this State will be tested,

labeled, and subject to additional regulation to ensure

that purchasers are informed and protected; and

(6) purchasers will be informed of any known health

risks associated with the use of cannabis, as concluded by

evidence-based, peer reviewed research.

(c) The General Assembly further finds and declares that it

is necessary to ensure consistency and fairness in the

application of this Act throughout the State and that,

therefore, the matters addressed by this Act are, except as

specified in this Act, matters of statewide concern.

(d) The General Assembly further finds and declares that

this Act shall not diminish the State's duties and commitment

to seriously ill patients registered under the Compassionate

Use of Medical Cannabis Pilot Program Act, nor alter the

protections granted to them.

(e) The General Assembly supports and encourages labor

neutrality in the cannabis industry and further finds and

declares that employee workplace safety shall not be diminished

and employer workplace policies shall be interpreted broadly to

protect employee safety.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/1-7 new)

Sec. 1-7. Lawful user and lawful products. For the purposes

of this Act and to clarify the legislative findings on the

lawful use of cannabis, a person shall not be considered an

unlawful user or addicted to narcotics solely as a result of

his or her possession or use of cannabis or cannabis

paraphernalia in accordance with this Act.

(410 ILCS 705/1-10)

Sec. 1-10. Definitions. In this Act:

"Adult Use Cultivation Center License" means a license

issued by the Department of Agriculture that permits a person

to act as a cultivation center under this Act and any

administrative rule made in furtherance of this Act.

"Adult Use Dispensing Organization License" means a

license issued by the Department of Financial and Professional

Regulation that permits a person to act as a dispensing

organization under this Act and any administrative rule made in

furtherance of this Act.

"Advertise" means to engage in promotional activities

including, but not limited to: newspaper, radio, Internet and

electronic media, and television advertising; the distribution

of fliers and circulars; billboard advertising; and the display

of window and interior signs. "Advertise" does not mean

exterior signage displaying only the name of the licensed

cannabis business establishment.

"BLS Region" means a region in Illinois used by the United

States Bureau of Labor Statistics to gather and categorize

certain employment and wage data. The 17 such regions in

Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,

Champaign-Urbana, Chicago-Naperville-Elgin, Danville,

Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,

Rockford, St. Louis, Springfield, Northwest Illinois

nonmetropolitan area, West Central Illinois nonmetropolitan

area, East Central Illinois nonmetropolitan area, and South

Illinois nonmetropolitan area.

"Cannabis" means marijuana, hashish, and other substances

that are identified as including any parts of the plant

Cannabis sativa and including derivatives or subspecies, such

as indica, of all strains of cannabis, whether growing or not;

the seeds thereof, the resin extracted from any part of the

plant; and any compound, manufacture, salt, derivative,

mixture, or preparation of the plant, its seeds, or resin,

including tetrahydrocannabinol (THC) and all other naturally

produced cannabinol derivatives, whether produced directly or

indirectly by extraction; however, "cannabis" does not include

the mature stalks of the plant, fiber produced from the stalks,

oil or cake made from the seeds of the plant, any other

compound, manufacture, salt, derivative, mixture, or

preparation of the mature stalks (except the resin extracted

from it), fiber, oil or cake, or the sterilized seed of the

plant that is incapable of germination. "Cannabis" does not

include industrial hemp as defined and authorized under the

Industrial Hemp Act. "Cannabis" also means cannabis flower,

concentrate, and cannabis-infused products.

"Cannabis business establishment" means a cultivation

center, craft grower, processing organization, infuser

organization, dispensing organization, or transporting

organization.

"Cannabis concentrate" means a product derived from

cannabis that is produced by extracting cannabinoids,

including tetrahydrocannabinol (THC), from the plant through

the use of propylene glycol, glycerin, butter, olive oil or

other typical cooking fats; water, ice, or dry ice; or butane,

propane, CO2, ethanol, or isopropanol and with the intended use

of smoking or making a cannabis-infused product. The use of any

other solvent is expressly prohibited unless and until it is

approved by the Department of Agriculture.

"Cannabis container" means a sealed, traceable, container,

or package used for the purpose of containment of cannabis or

cannabis-infused product during transportation.

"Cannabis flower" means marijuana, hashish, and other

substances that are identified as including any parts of the

plant Cannabis sativa and including derivatives or subspecies,

such as indica, of all strains of cannabis; including raw kief,

leaves, and buds, but not resin that has been extracted from

any part of such plant; nor any compound, manufacture, salt,

derivative, mixture, or preparation of such plant, its seeds,

or resin.

"Cannabis-infused product" means a beverage, food, oil,

ointment, tincture, topical formulation, or another product

containing cannabis or cannabis concentrate that is not

intended to be smoked.

"Cannabis paraphernalia" means equipment, products, or

materials intended to be used for planting, propagating,

cultivating, growing, harvesting, manufacturing, producing,

processing, preparing, testing, analyzing, packaging,

repackaging, storing, containing, concealing, ingesting, or

otherwise introducing cannabis into the human body.

"Cannabis plant monitoring system" or "plant monitoring

system" means a system that includes, but is not limited to,

testing and data collection established and maintained by the

cultivation center, craft grower, or processing organization

and that is available to the Department of Revenue, the

Department of Agriculture, the Department of Financial and

Professional Regulation, and the Department of State Police for

the purposes of documenting each cannabis plant and monitoring

plant development throughout the life cycle of a cannabis plant

cultivated for the intended use by a customer from seed

planting to final packaging.

"Cannabis testing facility" means an entity registered by

the Department of Agriculture to test cannabis for potency and

contaminants.

"Clone" means a plant section from a female cannabis plant

not yet rootbound, growing in a water solution or other

propagation matrix, that is capable of developing into a new

plant.

"Community College Cannabis Vocational Training Pilot

Program faculty participant" means a person who is 21 years of

age or older, licensed by the Department of Agriculture, and is

employed or contracted by an Illinois community college to

provide student instruction using cannabis plants at an

Illinois Community College.

"Community College Cannabis Vocational Training Pilot

Program faculty participant Agent Identification Card" means a

document issued by the Department of Agriculture that

identifies a person as Community College Cannabis Vocational

Training Pilot Program faculty participant.

"Conditional Adult Use Dispensing Organization License"

means a license awarded to top-scoring applicants for an Adult

Use Dispensing Organization License that reserves the right to

an Adult Use Dispensing Organization License adult use

dispensing organization license if the applicant meets certain

conditions described in this Act, but does not entitle the

recipient to begin purchasing or selling cannabis or

cannabis-infused products.

"Conditional Adult Use Cultivation Center License" means a

license awarded to top-scoring applicants for an Adult Use

Cultivation Center License that reserves the right to an Adult

Use Cultivation Center License if the applicant meets certain

conditions as determined by the Department of Agriculture by

rule, but does not entitle the recipient to begin growing,

processing, or selling cannabis or cannabis-infused products.

"Craft grower" means a facility operated by an organization

or business that is licensed by the Department of Agriculture

to cultivate, dry, cure, and package cannabis and perform other

necessary activities to make cannabis available for sale at a

dispensing organization or use at a processing organization. A

craft grower may contain up to 5,000 square feet of canopy

space on its premises for plants in the flowering state. The

Department of Agriculture may authorize an increase or decrease

of flowering stage cultivation space in increments of 3,000

square feet by rule based on market need, craft grower

capacity, and the licensee's history of compliance or

noncompliance, with a maximum space of 14,000 square feet for

cultivating plants in the flowering stage, which must be

cultivated in all stages of growth in an enclosed and secure

area. A craft grower may share premises with a processing

organization or a dispensing organization, or both, provided

each licensee stores currency and cannabis or cannabis-infused

products in a separate secured vault to which the other

licensee does not have access or all licensees sharing a vault

share more than 50% of the same ownership.

"Craft grower agent" means a principal officer, board

member, employee, or other agent of a craft grower who is 21

years of age or older.

"Craft Grower Agent Identification Card" means a document

issued by the Department of Agriculture that identifies a

person as a craft grower agent.

"Cultivation center" means a facility operated by an

organization or business that is licensed by the Department of

Agriculture to cultivate, process, transport (unless otherwise

limited by this Act), and perform other necessary activities to

provide cannabis and cannabis-infused products to cannabis

business establishments.

"Cultivation center agent" means a principal officer,

board member, employee, or other agent of a cultivation center

who is 21 years of age or older.

"Cultivation Center Agent Identification Card" means a

document issued by the Department of Agriculture that

identifies a person as a cultivation center agent.

"Currency" means currency and coin of the United States.

"Dispensary" means a facility operated by a dispensing

organization at which activities licensed by this Act may

occur.

"Dispensing organization" means a facility operated by an

organization or business that is licensed by the Department of

Financial and Professional Regulation to acquire cannabis from

a cultivation center, craft grower, processing organization,

or another dispensary for the purpose of selling or dispensing

cannabis, cannabis-infused products, cannabis seeds,

paraphernalia, or related supplies under this Act to purchasers

or to qualified registered medical cannabis patients and

caregivers. As used in this Act, "dispensing dispensary

organization" includes shall include a registered medical

cannabis organization as defined in the Compassionate Use of

Medical Cannabis Pilot Program Act or its successor Act that

has obtained an Early Approval Adult Use Dispensing

Organization License.

"Dispensing organization agent" means a principal officer,

employee, or agent of a dispensing organization who is 21 years

of age or older.

"Dispensing organization agent identification card" means

a document issued by the Department of Financial and

Professional Regulation that identifies a person as a

dispensing organization agent.

"Disproportionately Impacted Area" means a census tract or

comparable geographic area that satisfies the following

criteria as determined by the Department of Commerce and

Economic Opportunity, that:

(1) meets at least one of the following criteria:

(A) the area has a poverty rate of at least 20%

according to the latest federal decennial census; or

(B) 75% or more of the children in the area

participate in the federal free lunch program

according to reported statistics from the State Board

of Education; or

(C) at least 20% of the households in the area

receive assistance under the Supplemental Nutrition

Assistance Program; or

(D) the area has an average unemployment rate, as

determined by the Illinois Department of Employment

Security, that is more than 120% of the national

unemployment average, as determined by the United

States Department of Labor, for a period of at least 2

consecutive calendar years preceding the date of the

application; and

(2) has high rates of arrest, conviction, and

incarceration related to the sale, possession, use,

cultivation, manufacture, or transport of cannabis.

"Early Approval Adult Use Cultivation Center License"

means a license that permits a medical cannabis cultivation

center licensed under the Compassionate Use of Medical Cannabis

Pilot Program Act as of the effective date of this Act to begin

cultivating, infusing, packaging, transporting (unless

otherwise provided in this Act), processing and selling

cannabis or cannabis-infused product to cannabis business

establishments for resale to purchasers as permitted by this

Act as of January 1, 2020.

"Early Approval Adult Use Dispensing Organization License"

means a license that permits a medical cannabis dispensing

organization licensed under the Compassionate Use of Medical

Cannabis Pilot Program Act as of the effective date of this Act

to begin selling cannabis or cannabis-infused product to

purchasers as permitted by this Act as of January 1, 2020.

"Early Approval Adult Use Dispensing Organization at a

secondary site" means a license that permits a medical cannabis

dispensing organization licensed under the Compassionate Use

of Medical Cannabis Pilot Program Act as of the effective date

of this Act to begin selling cannabis or cannabis-infused

product to purchasers as permitted by this Act on January 1,

2020 at a different dispensary location from its existing

registered medical dispensary location.

"Enclosed, locked facility" means a room, greenhouse,

building, or other enclosed area equipped with locks or other

security devices that permit access only by cannabis business

establishment agents working for the licensed cannabis

business establishment or acting pursuant to this Act to

cultivate, process, store, or distribute cannabis.

"Enclosed, locked space" means a closet, room, greenhouse,

building or other enclosed area equipped with locks or other

security devices that permit access only by authorized

individuals under this Act. "Enclosed, locked space" may

include:

(1) a space within a residential building that (i) is

the primary residence of the individual cultivating 5 or

fewer cannabis plants that are more than 5 inches tall and

(ii) includes sleeping quarters and indoor plumbing. The

space must only be accessible by a key or code that is

different from any key or code that can be used to access

the residential building from the exterior; or

(2) a structure, such as a shed or greenhouse, that

lies on the same plot of land as a residential building

that (i) includes sleeping quarters and indoor plumbing and

(ii) is used as a primary residence by the person

cultivating 5 or fewer cannabis plants that are more than 5

inches tall, such as a shed or greenhouse. The structure

must remain locked when it is unoccupied by people.

"Financial institution" has the same meaning as "financial

organization" as defined in Section 1501 of the Illinois Income

Tax Act, and also includes the holding companies, subsidiaries,

and affiliates of such financial organizations.

"Flowering stage" means the stage of cultivation where and

when a cannabis plant is cultivated to produce plant material

for cannabis products. This includes mature plants as follows:

(1) if greater than 2 stigmas are visible at each

internode of the plant; or

(2) if the cannabis plant is in an area that has been

intentionally deprived of light for a period of time

intended to produce flower buds and induce maturation, from

the moment the light deprivation began through the

remainder of the marijuana plant growth cycle.

"Individual" means a natural person.

"Infuser organization" or "infuser" means a facility

operated by an organization or business that is licensed by the

Department of Agriculture to directly incorporate cannabis or

cannabis concentrate into a product formulation to produce a

cannabis-infused product.

"Kief" means the resinous crystal-like trichomes that are

found on cannabis and that are accumulated, resulting in a

higher concentration of cannabinoids, untreated by heat or

pressure, or extracted using a solvent.

"Labor peace agreement" means an agreement between a

cannabis business establishment and any labor organization

recognized under the National Labor Relations Act, referred to

in this Act as a bona fide labor organization, that prohibits

labor organizations and members from engaging in picketing,

work stoppages, boycotts, and any other economic interference

with the cannabis business establishment. This agreement means

that the cannabis business establishment has agreed not to

disrupt efforts by the bona fide labor organization to

communicate with, and attempt to organize and represent, the

cannabis business establishment's employees. The agreement

shall provide a bona fide labor organization access at

reasonable times to areas in which the cannabis business

establishment's employees work, for the purpose of meeting with

employees to discuss their right to representation, employment

rights under State law, and terms and conditions of employment.

This type of agreement shall not mandate a particular method of

election or certification of the bona fide labor organization.

"Limited access area" means a building, room, or other area

under the control of a cannabis dispensing organization

licensed under this Act and upon the licensed premises where

cannabis sales occur with access limited to purchasers,

dispensing organization owners and other dispensing

organization agents, or service professionals conducting

business with the dispensing organization, or, if sales to

registered qualifying patients, caregivers, provisional

patients, and Opioid Alternative Pilot Program participants

licensed pursuant to the Compassionate Use of Medical Cannabis

Program Act are also permitted at the dispensary, registered

qualifying patients, caregivers, provisional patients, and

Opioid Alternative Pilot Program participants.

"Member of an impacted family" means an individual who has

a parent, legal guardian, child, spouse, or dependent, or was a

dependent of an individual who, prior to the effective date of

this Act, was arrested for, convicted of, or adjudicated

delinquent for any offense that is eligible for expungement

under this Act.

"Mother plant" means a cannabis plant that is cultivated or

maintained for the purpose of generating clones, and that will

not be used to produce plant material for sale to an infuser or

dispensing organization.

"Ordinary public view" means within the sight line with

normal visual range of a person, unassisted by visual aids,

from a public street or sidewalk adjacent to real property, or

from within an adjacent property.

"Ownership and control" means ownership of at least 51% of

the business, including corporate stock if a corporation, and

control over the management and day-to-day operations of the

business and an interest in the capital, assets, and profits

and losses of the business proportionate to percentage of

ownership.

"Person" means a natural individual, firm, partnership,

association, joint stock company, joint venture, public or

private corporation, limited liability company, or a receiver,

executor, trustee, guardian, or other representative appointed

by order of any court.

"Possession limit" means the amount of cannabis under

Section 10-10 that may be possessed at any one time by a person

21 years of age or older or who is a registered qualifying

medical cannabis patient or caregiver under the Compassionate

Use of Medical Cannabis Pilot Program Act.

"Principal officer" includes a cannabis business

establishment applicant or licensed cannabis business

establishment's board member, owner with more than 1% interest

of the total cannabis business establishment or more than 5%

interest of the total cannabis business establishment of a

publicly traded company, president, vice president, secretary,

treasurer, partner, officer, member, manager member, or person

with a profit sharing, financial interest, or revenue sharing

arrangement. The definition includes a person with authority to

control the cannabis business establishment, a person who

assumes responsibility for the debts of the cannabis business

establishment and who is further defined in this Act.

"Primary residence" means a dwelling where a person usually

stays or stays more often than other locations. It may be

determined by, without limitation, presence, tax filings;

address on an Illinois driver's license, an Illinois

Identification Card, or an Illinois Person with a Disability

Identification Card; or voter registration. No person may have

more than one primary residence.

"Processing organization" or "processor" means a facility

operated by an organization or business that is licensed by the

Department of Agriculture to either extract constituent

chemicals or compounds to produce cannabis concentrate or

incorporate cannabis or cannabis concentrate into a product

formulation to produce a cannabis product.

"Processing organization agent" means a principal officer,

board member, employee, or agent of a processing organization.

"Processing organization agent identification card" means

a document issued by the Department of Agriculture that

identifies a person as a processing organization agent.

"Purchaser" means a person 21 years of age or older who

acquires cannabis for a valuable consideration. "Purchaser"

does not include a cardholder under the Compassionate Use of

Medical Cannabis Pilot Program Act.

"Qualified Social Equity Applicant" means a Social Equity

Applicant who has been awarded a conditional license under this

Act to operate a cannabis business establishment.

"Resided" means an individual's primary residence was

located within the relevant geographic area as established by 2

of the following:

(1) a signed lease agreement that includes the

applicant's name;

(2) a property deed that includes the applicant's name;

(3) school records;

(4) a voter registration card;

(5) an Illinois driver's license, an Illinois

Identification Card, or an Illinois Person with a

Disability Identification Card;

(6) a paycheck stub;

(7) a utility bill;

(8) tax records; or

(9) (8) any other proof of residency or other

information necessary to establish residence as provided

by rule.

"Smoking" means the inhalation of smoke caused by the

combustion of cannabis.

"Social Equity Applicant" means an applicant that is an

Illinois resident that meets one of the following criteria:

(1) an applicant with at least 51% ownership and

control by one or more individuals who have resided for at

least 5 of the preceding 10 years in a Disproportionately

Impacted Area;

(2) an applicant with at least 51% ownership and

control by one or more individuals who:

(i) have been arrested for, convicted of, or

adjudicated delinquent for any offense that is

eligible for expungement under this Act; or

(ii) is a member of an impacted family;

(3) for applicants with a minimum of 10 full-time

employees, an applicant with at least 51% of current

employees who:

(i) currently reside in a Disproportionately

Impacted Area; or

(ii) have been arrested for, convicted of, or

adjudicated delinquent for any offense that is

eligible for expungement under this Act or member of an

impacted family.

Nothing in this Act shall be construed to preempt or limit

the duties of any employer under the Job Opportunities for

Qualified Applicants Act. Nothing in this Act shall permit an

employer to require an employee to disclose sealed or expunged

offenses, unless otherwise required by law.

"Tincture" means a cannabis-infused solution, typically

comprised of alcohol, glycerin, or vegetable oils, derived

either directly from the cannabis plant or from a processed

cannabis extract. A tincture is not an alcoholic liquor as

defined in the Liquor Control Act of 1934. A tincture shall

include a calibrated dropper or other similar device capable of

accurately measuring servings.

"Transporting organization" or "transporter" means an

organization or business that is licensed by the Department of

Agriculture to transport cannabis or cannabis-infused product

on behalf of a cannabis business establishment or a community

college licensed under the Community College Cannabis

Vocational Training Pilot Program.

"Transporting organization agent" means a principal

officer, board member, employee, or agent of a transporting

organization.

"Transporting organization agent identification card"

means a document issued by the Department of Agriculture that

identifies a person as a transporting organization agent.

"Unit of local government" means any county, city, village,

or incorporated town.

"Vegetative stage" means the stage of cultivation in which

a cannabis plant is propagated to produce additional cannabis

plants or reach a sufficient size for production. This includes

seedlings, clones, mothers, and other immature cannabis plants

as follows:

(1) if the cannabis plant is in an area that has not

been intentionally deprived of light for a period of time

intended to produce flower buds and induce maturation, it

has no more than 2 stigmas visible at each internode of the

cannabis plant; or

(2) any cannabis plant that is cultivated solely for

the purpose of propagating clones and is never used to

produce cannabis.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/5-5)

Sec. 5-5. Sharing of authority. Notwithstanding any

provision of or law to the contrary, any authority granted to

any State agency or State employees or appointees under the

Compassionate Use of Medical Cannabis Pilot Program Act shall

be shared by any State agency or State employees or appointees

given authority to license, discipline, revoke, regulate, or

make rules under this Act.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/5-15)

Sec. 5-15. Department of Financial and Professional

Regulation. The Department of Financial and Professional

Regulation shall enforce the provisions of this Act relating to

the oversight and registration of dispensing organizations and

agents, including the issuance of identification cards for

dispensing organization agents. The Department of Financial

and Professional Regulation may suspend or revoke the license

of, or otherwise discipline dispensing organizations,

principal officers, agents-in-charge, and agents impose other

penalties upon, dispensing organizations for violations of

this Act and any rules adopted under this Act.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/5-20)

Sec. 5-20. Background checks.

(a) Through the Department of State Police, the licensing

or issuing Department shall conduct a criminal history record

check of the prospective principal officers, board members, and

agents of a cannabis business establishment applying for a

license or identification card under this Act.

Each cannabis business establishment prospective principal

officer, board member, or agent shall submit his or her

fingerprints to the Department of State Police in the form and

manner prescribed by the Department of State Police.

Unless otherwise provided in this Act, such Such

fingerprints shall be transmitted through a live scan

fingerprint vendor licensed by the Department of Financial and

Professional Regulation. These fingerprints shall be checked

against the fingerprint records now and hereafter filed in the

Department of State Police and Federal Bureau of Investigation

criminal history records databases. The Department of State

Police shall charge a fee for conducting the criminal history

record check, which shall be deposited into the State Police

Services Fund and shall not exceed the actual cost of the State

and national criminal history record check. The Department of

State Police shall furnish, pursuant to positive

identification, all Illinois conviction information and shall

forward the national criminal history record information to:

(i) the Department of Agriculture, with respect to a

cultivation center, craft grower, infuser organization, or

transporting organization; or

(ii) the Department of Financial and Professional

Regulation, with respect to a dispensing organization.

(b) When applying for the initial license or identification

card, the background checks for all prospective principal

officers, board members, and agents shall be completed before

submitting the application to the licensing or issuing agency.

(c) All applications for licensure under this Act by

applicants with criminal convictions shall be subject to

Sections 2105-131, 2105-135, and 2105-205 of the Department of

Professional Regulation Law of the Civil Administrative Code of

Illinois.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/5-25)

Sec. 5-25. Department of Public Health to make health

warning recommendations.

(a) The Department of Public Health shall make

recommendations to the Department of Agriculture and the

Department of Financial and Professional Regulation on

appropriate health warnings for dispensaries and advertising,

which may apply to all cannabis products, including item-type

specific labeling or warning requirements, regulate the

facility where cannabis-infused products are made, regulate

cannabis-infused products as provided in subsection (e) of

Section 55-5, and facilitate the Adult Use Cannabis Health

Advisory Committee.

(b) An Adult Use Cannabis Health Advisory Committee is

hereby created and shall meet at least twice annually. The

Chairperson may schedule meetings more frequently upon his or

her initiative or upon the request of a Committee member.

Meetings may be held in person or by teleconference. The

Committee shall discuss and monitor changes in drug use data in

Illinois and the emerging science and medical information

relevant to the health effects associated with cannabis use and

may provide recommendations to the Department of Human Services

about public health awareness campaigns and messages. The

Committee shall include the following members appointed by the

Governor and shall represent the geographic, ethnic, and racial

diversity of the State:

(1) The Director of Public Health, or his or her

designee, who shall serve as the Chairperson.

(2) The Secretary of Human Services, or his or her

designee, who shall serve as the Co-Chairperson.

(3) A representative of the poison control center.

(4) A pharmacologist.

(5) A pulmonologist.

(6) An emergency room physician.

(7) An emergency medical technician, paramedic, or

other first responder.

(8) A nurse practicing in a school-based setting.

(9) A psychologist.

(10) A neonatologist.

(11) An obstetrician-gynecologist.

(12) A drug epidemiologist.

(13) A medical toxicologist.

(14) An addiction psychiatrist.

(15) A pediatrician.

(16) A representative of a statewide professional

public health organization.

(17) A representative of a statewide hospital/health

system association.

(18) An individual registered as a patient in the

Compassionate Use of Medical Cannabis Pilot Program.

(19) An individual registered as a caregiver in the

Compassionate Use of Medical Cannabis Pilot Program.

(20) A representative of an organization focusing on

cannabis-related policy.

(21) A representative of an organization focusing on

the civil liberties of individuals who reside in Illinois.

(22) A representative of the criminal defense or civil

aid community of attorneys serving Disproportionately

Impacted Areas.

(23) A representative of licensed cannabis business

establishments.

(24) A Social Equity Applicant.

(25) A representative of a statewide community-based

substance use disorder treatment provider association.

(26) A representative of a statewide community-based

mental health treatment provider association.

(27) A representative of a community-based substance

use disorder treatment provider.

(28) A representative of a community-based mental

health treatment provider.

(29) A substance use disorder treatment patient

representative.

(30) A mental health treatment patient representative.

(c) The Committee shall provide a report by September 30,

2021, and every year thereafter, to the General Assembly. The

Department of Public Health shall make the report available on

its website.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/7-1)

Sec. 7-1. Findings.

(a) The General Assembly finds that the medical cannabis

industry, established in 2014 through the Compassionate Use of

Medical Cannabis Pilot Program Act, has shown that additional

efforts are needed to reduce barriers to ownership. Through

that program, 55 licenses for dispensing organizations and 20

licenses for cultivation centers have been issued. Those

licenses are held by only a small number of businesses, the

ownership of which does not sufficiently meet the General

Assembly's interest in business ownership that reflects the

population of the State of Illinois and that demonstrates the

need to reduce barriers to entry for individuals and

communities most adversely impacted by the enforcement of

cannabis-related laws.

(b) In the interest of establishing a legal cannabis

industry that is equitable and accessible to those most

adversely impacted by the enforcement of drug-related laws in

this State, including cannabis-related laws, the General

Assembly finds and declares that a social equity program should

be established.

(c) The General Assembly also finds and declares that

individuals who have been arrested or incarcerated due to drug

laws suffer long-lasting negative consequences, including

impacts to employment, business ownership, housing, health,

and long-term financial well-being.

(d) The General Assembly also finds and declares that

family members, especially children, and communities of those

who have been arrested or incarcerated due to drug laws, suffer

from emotional, psychological, and financial harms as a result

of such arrests or incarcerations.

(e) Furthermore, the General Assembly finds and declares

that certain communities have disproportionately suffered the

harms of enforcement of cannabis-related laws. Those

communities face greater difficulties accessing traditional

banking systems and capital for establishing businesses.

(f) The General Assembly also finds that individuals who

have resided in areas of high poverty suffer negative

consequences, including barriers to entry in employment,

business ownership, housing, health, and long-term financial

well-being.

(g) The General Assembly also finds and declares that

promotion of business ownership by individuals who have resided

in areas of high poverty and high enforcement of

cannabis-related laws furthers an equitable cannabis industry.

(h) Therefore, in the interest of remedying the harms

resulting from the disproportionate enforcement of

cannabis-related laws, the General Assembly finds and declares

that a social equity program should offer, among other things,

financial assistance and license application benefits to

individuals most directly and adversely impacted by the

enforcement of cannabis-related laws who are interested in

starting cannabis business establishments.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/7-10)

Sec. 7-10. Cannabis Business Development Fund.

(a) There is created in the State treasury a special fund,

which shall be held separate and apart from all other State

moneys, to be known as the Cannabis Business Development Fund.

The Cannabis Business Development Fund shall be exclusively

used for the following purposes:

(1) to provide low-interest rate loans to Qualified

Social Equity Applicants to pay for ordinary and necessary

expenses to start and operate a cannabis business

establishment permitted by this Act;

(2) to provide grants to Qualified Social Equity

Applicants to pay for ordinary and necessary expenses to

start and operate a cannabis business establishment

permitted by this Act;

(3) to compensate the Department of Commerce and

Economic Opportunity for any costs related to the provision

of low-interest loans and grants to Qualified Social Equity

Applicants;

(4) to pay for outreach that may be provided or

targeted to attract and support Social Equity Applicants

and Qualified Social Equity Applicants;

(5) (blank);

(6) to conduct any study or research concerning the

participation of minorities, women, veterans, or people

with disabilities in the cannabis industry, including,

without limitation, barriers to such individuals entering

the industry as equity owners of cannabis business

establishments;

(7) (blank); and

(8) to assist with job training and technical

assistance for residents in Disproportionately Impacted

Areas.

(b) All moneys collected under Sections 15-15 and 15-20 for

Early Approval Adult Use Dispensing Organization Licenses

issued before January 1, 2021 and remunerations made as a

result of transfers of permits awarded to Qualified Social

Equity Applicants shall be deposited into the Cannabis Business

Development Fund.

(c) As soon as practical after July 1, 2019, the

Comptroller shall order and the Treasurer shall transfer

$12,000,000 from the Compassionate Use of Medical Cannabis Fund

to the Cannabis Business Development Fund.

(d) Notwithstanding any other law to the contrary, the

Cannabis Business Development Fund is not subject to sweeps,

administrative charge-backs, or any other fiscal or budgetary

maneuver that would in any way transfer any amounts from the

Cannabis Business Development Fund into any other fund of the

State.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/7-15)

Sec. 7-15. Loans and grants to Social Equity Applicants.

(a) The Department of Commerce and Economic Opportunity

shall establish grant and loan programs, subject to

appropriations from the Cannabis Business Development Fund,

for the purposes of providing financial assistance, loans,

grants, and technical assistance to Social Equity Applicants.

(b) The Department of Commerce and Economic Opportunity has

the power to:

(1) provide Cannabis Social Equity loans and grants

from appropriations from the Cannabis Business Development

Fund to assist Qualified Social Equity Applicants in

gaining entry to, and successfully operating in, the

State's regulated cannabis marketplace;

(2) enter into agreements that set forth terms and

conditions of the financial assistance, accept funds or

grants, and engage in cooperation with private entities and

agencies of State or local government to carry out the

purposes of this Section;

(3) fix, determine, charge, and collect any premiums,

fees, charges, costs and expenses, including application

fees, commitment fees, program fees, financing charges, or

publication fees in connection with its activities under

this Section;

(4) coordinate assistance under these loan programs

with activities of the Illinois Department of Financial and

Professional Regulation, the Illinois Department of

Agriculture, and other agencies as needed to maximize the

effectiveness and efficiency of this Act;

(5) provide staff, administration, and related support

required to administer this Section;

(6) take whatever actions are necessary or appropriate

to protect the State's interest in the event of bankruptcy,

default, foreclosure, or noncompliance with the terms and

conditions of financial assistance provided under this

Section, including the ability to recapture funds if the

recipient is found to be noncompliant with the terms and

conditions of the financial assistance agreement;

(7) establish application, notification, contract, and

other forms, procedures, or rules deemed necessary and

appropriate; and

(8) utilize vendors or contract work to carry out the

purposes of this Act.

(c) Loans made under this Section:

(1) shall only be made if, in the Department's

judgment, the project furthers the goals set forth in this

Act; and

(2) shall be in such principal amount and form and

contain such terms and provisions with respect to security,

insurance, reporting, delinquency charges, default

remedies, and other matters as the Department shall

determine appropriate to protect the public interest and to

be consistent with the purposes of this Section. The terms

and provisions may be less than required for similar loans

not covered by this Section.

(d) Grants made under this Section shall be awarded on a

competitive and annual basis under the Grant Accountability and

Transparency Act. Grants made under this Section shall further

and promote the goals of this Act, including promotion of

Social Equity Applicants, job training and workforce

development, and technical assistance to Social Equity

Applicants.

(e) Beginning January 1, 2021 and each year thereafter, the

Department shall annually report to the Governor and the

General Assembly on the outcomes and effectiveness of this

Section that shall include the following:

(1) the number of persons or businesses receiving

financial assistance under this Section;

(2) the amount in financial assistance awarded in the

aggregate, in addition to the amount of loans made that are

outstanding and the amount of grants awarded;

(3) the location of the project engaged in by the

person or business; and

(4) if applicable, the number of new jobs and other

forms of economic output created as a result of the

financial assistance.

(f) The Department of Commerce and Economic Opportunity

shall include engagement with individuals with limited English

proficiency as part of its outreach provided or targeted to

attract and support Social Equity Applicants.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/7-25)

Sec. 7-25. Transfer of license awarded to Qualified Social

Equity Applicant.

(a) In the event a Qualified Social Equity Applicant seeks

to transfer, sell, or grant a cannabis business establishment

license within 5 years after it was issued to a person or

entity that does not qualify as a Social Equity Applicant, the

transfer agreement shall require the new license holder to pay

the Cannabis Business Development Fund an amount equal to:

(1) any fees that were waived by any State agency based

on the applicant's status as a Social Equity Applicant, if

applicable;

(2) any outstanding amount owed by the Qualified Social

Equity Applicant for a loan through the Cannabis Business

Development Fund, if applicable; and

(3) the full amount of any grants that the Qualified

Social Equity Applicant received from the Department of

Commerce and Economic Opportunity, if applicable.

(b) Transfers of cannabis business establishment licenses

awarded to a Social Equity Applicant are subject to all other

provisions of this Act, the Compassionate Use of Medical

Cannabis Pilot Program Act, and rules regarding transfers.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/10-5)

Sec. 10-5. Personal use of cannabis; restrictions on

cultivation; penalties.

(a) Beginning January 1, 2020, notwithstanding any other

provision of law, and except as otherwise provided in this Act,

the following acts are not a violation of this Act and shall

not be a criminal or civil offense under State law or the

ordinances of any unit of local government of this State or be

a basis for seizure or forfeiture of assets under State law for

persons other than natural individuals under 21 years of age:

(1) possession, consumption, use, purchase, obtaining,

or transporting cannabis paraphernalia or an amount of

cannabis for personal use that does not exceed the

possession limit under Section 10-10 or otherwise in

accordance with the requirements of this Act;

(2) cultivation of cannabis for personal use in

accordance with the requirements of this Act; and

(3) controlling property if actions that are

authorized by this Act occur on the property in accordance

with this Act.

(a-1) Beginning January 1, 2020, notwithstanding any other

provision of law, and except as otherwise provided in this Act,

possessing, consuming, using, purchasing, obtaining, or

transporting cannabis paraphernalia or an amount of cannabis

purchased or produced in accordance with this Act that does not

exceed the possession limit under subsection (a) of Section

10-10 shall not be a basis for seizure or forfeiture of assets

under State law.

(b) Cultivating cannabis for personal use is subject to the

following limitations:

(1) An Illinois resident 21 years of age or older who

is a registered qualifying patient under the Compassionate

Use of Medical Cannabis Pilot Program Act may cultivate

cannabis plants, with a limit of 5 plants that are more

than 5 inches tall, per household without a cultivation

center or craft grower license. In this Section, "resident"

means a person who has been domiciled in the State of

Illinois for a period of 30 days before cultivation.

(2) Cannabis cultivation must take place in an

enclosed, locked space.

(3) Adult registered qualifying patients may purchase

cannabis seeds from a dispensary for the purpose of home

cultivation. Seeds may not be given or sold to any other

person.

(4) Cannabis plants shall not be stored or placed in a

location where they are subject to ordinary public view, as

defined in this Act. A registered qualifying patient who

cultivates cannabis under this Section shall take

reasonable precautions to ensure the plants are secure from

unauthorized access, including unauthorized access by a

person under 21 years of age.

(5) Cannabis cultivation may occur only on residential

property lawfully in possession of the cultivator or with

the consent of the person in lawful possession of the

property. An owner or lessor of residential property may

prohibit the cultivation of cannabis by a lessee.

(6) (Blank).

(7) A dwelling, residence, apartment, condominium

unit, enclosed, locked space, or piece of property not

divided into multiple dwelling units shall not contain more

than 5 plants at any one time.

(8) Cannabis plants may only be tended by registered

qualifying patients who reside at the residence, or their

authorized agent attending to the residence for brief

periods, such as when the qualifying patient is temporarily

away from the residence.

(9) A registered qualifying patient who cultivates

more than the allowable number of cannabis plants, or who

sells or gives away cannabis plants, cannabis, or

cannabis-infused products produced under this Section, is

liable for penalties as provided by law, including the

Cannabis Control Act, in addition to loss of home

cultivation privileges as established by rule.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/10-10)

Sec. 10-10. Possession limit.

(a) Except if otherwise authorized by this Act, for a

person who is 21 years of age or older and a resident of this

State, the possession limit is as follows:

(1) 30 grams of cannabis flower;

(2) no more than 500 milligrams of THC contained in

cannabis-infused product;

(3) 5 grams of cannabis concentrate; and

(4) for registered qualifying patients, any cannabis

produced by cannabis plants grown under subsection (b) of

Section 10-5, provided any amount of cannabis produced in

excess of 30 grams of raw cannabis or its equivalent must

remain secured within the residence or residential

property in which it was grown.

(b) For a person who is 21 years of age or older and who is

not a resident of this State, the possession limit is:

(1) 15 grams of cannabis flower;

(2) 2.5 grams of cannabis concentrate; and

(3) 250 milligrams of THC contained in a

cannabis-infused product.

(c) The possession limits found in subsections (a) and (b)

of this Section are to be considered cumulative.

(d) No person shall knowingly obtain, seek to obtain, or

possess an amount of cannabis from a dispensing organization or

craft grower that would cause him or her to exceed the

possession limit under this Section, including cannabis that is

cultivated by a person under this Act or obtained under the

Compassionate Use of Medical Cannabis Pilot Program Act.

(e) Cannabis and cannabis-derived substances regulated

under the Industrial Hemp Act are not covered by this Act.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/10-15)

Sec. 10-15. Persons under 21 years of age.

(a) Nothing in this Act is intended to permit the transfer

of cannabis, with or without remuneration, to a person under 21

years of age, or to allow a person under 21 years of age to

purchase, possess, use, process, transport, grow, or consume

cannabis except where authorized by the Compassionate Use of

Medical Cannabis Pilot Program Act or by the Community College

Cannabis Vocational Pilot Program.

(b) Notwithstanding any other provisions of law

authorizing the possession of medical cannabis, nothing in this

Act authorizes a person who is under 21 years of age to possess

cannabis. A person under 21 years of age with cannabis in his

or her possession is guilty of a civil law violation as

outlined in paragraph (a) of Section 4 of the Cannabis Control

Act.

(c) If the person under the age of 21 was in a motor

vehicle at the time of the offense, the Secretary of State may

suspend or revoke the driving privileges of any person for a

violation of this Section under Section 6-206 of the Illinois

Vehicle Code and the rules adopted under it.

(d) It is unlawful for any parent or guardian to knowingly

permit his or her residence, any other private property under

his or her control, or any vehicle, conveyance, or watercraft

under his or her control to be used by an invitee of the

parent's child or the guardian's ward, if the invitee is under

the age of 21, in a manner that constitutes a violation of this

Section. A parent or guardian is deemed to have knowingly

permitted his or her residence, any other private property

under his or her control, or any vehicle, conveyance, or

watercraft under his or her control to be used in violation of

this Section if he or she knowingly authorizes or permits

consumption of cannabis by underage invitees. Any person who

violates this subsection (d) is guilty of a Class A misdemeanor

and the person's sentence shall include, but shall not be

limited to, a fine of not less than $500. If a violation of

this subsection (d) directly or indirectly results in great

bodily harm or death to any person, the person violating this

subsection is guilty of a Class 4 felony. In this subsection

(d), where the residence or other property has an owner and a

tenant or lessee, the trier of fact may infer that the

residence or other property is occupied only by the tenant or

lessee.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/10-25)

Sec. 10-25. Immunities and presumptions related to the use

of cannabis by purchasers.

(a) A purchaser who is 21 years of age or older is not

subject to arrest, prosecution, denial of any right or

privilege, or other punishment including, but not limited to,

any civil penalty or disciplinary action taken by an

occupational or professional licensing board, based solely on

the use of cannabis if (1) the purchaser possesses an amount of

cannabis that does not exceed the possession limit under

Section 10-10 and, if the purchaser is licensed, certified, or

registered to practice any trade or profession under any Act

and (2) the use of cannabis does not impair that person when he

or she is engaged in the practice of the profession for which

he or she is licensed, certified, or registered.

(b) A purchaser 21 years of age or older is not subject to

arrest, prosecution, denial of any right or privilege, or other

punishment, including, but not limited to, any civil penalty or

disciplinary action taken by an occupational or professional

licensing board, based solely for (i) selling cannabis

paraphernalia if employed and licensed as a dispensing agent by

a dispensing organization; or (ii) being in the presence or

vicinity of the use of cannabis or cannabis paraphernalia as

allowed under this Act; or (iii) possessing cannabis

paraphernalia.

(c) Mere possession of, or application for, an agent

identification card or license does not constitute probable

cause or reasonable suspicion to believe that a crime has been

committed, nor shall it be used as the sole basis to support

the search of the person, property, or home of the person

possessing or applying for the agent identification card. The

possession of, or application for, an agent identification card

does not preclude the existence of probable cause if probable

cause exists based on other grounds.

(d) No person employed by the State of Illinois shall be

subject to criminal or civil penalties for taking any action in

good faith in reliance on this Act when acting within the scope

of his or her employment. Representation and indemnification

shall be provided to State employees as set forth in Section 2

of the State Employee Indemnification Act.

(e) No law enforcement or correctional agency, nor any

person employed by a law enforcement or correctional agency,

shall be subject to criminal or civil liability, except for

willful and wanton misconduct, as a result of taking any action

within the scope of the official duties of the agency or person

to prohibit or prevent the possession or use of cannabis by a

person incarcerated at a correctional facility, jail, or

municipal lockup facility, on parole or mandatory supervised

release, or otherwise under the lawful jurisdiction of the

agency or person.

(f) For purposes of receiving medical care, including organ

transplants, a person's use of cannabis under this Act does not

constitute the use of an illicit substance or otherwise

disqualify a person from medical care.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/10-30)

Sec. 10-30. Discrimination prohibited.

(a) Neither the presence of cannabinoid components or

metabolites in a person's bodily fluids nor possession of

cannabis-related paraphernalia, nor conduct related to the use

of cannabis or the participation in cannabis-related

activities lawful under this Act by a custodial or noncustodial

parent, grandparent, legal guardian, foster parent, or other

person charged with the well-being of a child, shall form the

sole or primary basis or supporting basis for any action or

proceeding by a child welfare agency or in a family or juvenile

court, any adverse finding, adverse evidence, or restriction of

any right or privilege in a proceeding related to adoption of a

child, acting as a foster parent of a child, or a person's

fitness to adopt a child or act as a foster parent of a child,

or serve as the basis of any adverse finding, adverse evidence,

or restriction of any right of privilege in a proceeding

related to guardianship, conservatorship, trusteeship, the

execution of a will, or the management of an estate, unless the

person's actions in relation to cannabis created an

unreasonable danger to the safety of the minor or otherwise

show the person to not be competent as established by clear and

convincing evidence. This subsection applies only to conduct

protected under this Act.

(b) No landlord may be penalized or denied any benefit

under State law for leasing to a person who uses cannabis under

this Act.

(c) Nothing in this Act may be construed to require any

person or establishment in lawful possession of property to

allow a guest, client, lessee, customer, or visitor to use

cannabis on or in that property, including on any land owned in

whole or in part or managed in whole or in part by the State.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/10-35)

Sec. 10-35. Limitations and penalties.

(a) This Act does not permit any person to engage in, and

does not prevent the imposition of any civil, criminal, or

other penalties for engaging in, any of the following conduct:

(1) undertaking any task under the influence of

cannabis when doing so would constitute negligence,

professional malpractice, or professional misconduct;

(2) possessing cannabis:

(A) in a school bus, unless permitted for a

qualifying patient or caregiver pursuant to the

Compassionate Use of Medical Cannabis Pilot Program

Act;

(B) on the grounds of any preschool or primary or

secondary school, unless permitted for a qualifying

patient or caregiver pursuant to the Compassionate Use

of Medical Cannabis Pilot Program Act;

(C) in any correctional facility;

(D) in a vehicle not open to the public unless the

cannabis is in a reasonably secured, sealed container

and reasonably inaccessible while the vehicle is

moving; or

(E) in a private residence that is used at any time

to provide licensed child care or other similar social

service care on the premises;

(3) using cannabis:

(A) in a school bus, unless permitted for a

qualifying patient or caregiver pursuant to the

Compassionate Use of Medical Cannabis Pilot Program

Act;

(B) on the grounds of any preschool or primary or

secondary school, unless permitted for a qualifying

patient or caregiver pursuant to the Compassionate Use

of Medical Cannabis Pilot Program Act;

(C) in any correctional facility;

(D) in any motor vehicle;

(E) in a private residence that is used at any time

to provide licensed child care or other similar social

service care on the premises;

(F) in any public place; or

(G) knowingly in close physical proximity to

anyone under 21 years of age who is not a registered

medical cannabis patient under the Compassionate Use

of Medical Cannabis Pilot Program Act;

(4) smoking cannabis in any place where smoking is

prohibited under the Smoke Free Illinois Act;

(5) operating, navigating, or being in actual physical

control of any motor vehicle, aircraft, watercraft, or

snowmobile while using or under the influence of cannabis

in violation of Section 11-501 or 11-502.1 of the Illinois

Vehicle Code, Section 5-16 of the Boat Registration and

Safety Act, or Section 5-7 of the Snowmobile Registration

and Safety Act or motorboat while using or under the

influence of cannabis in violation of Section 11-501 or

11-502.1 of the Illinois Vehicle Code;

(6) facilitating the use of cannabis by any person who

is not allowed to use cannabis under this Act or the

Compassionate Use of Medical Cannabis Pilot Program Act;

(7) transferring cannabis to any person contrary to

this Act or the Compassionate Use of Medical Cannabis Pilot

Program Act;

(8) the use of cannabis by a law enforcement officer,

corrections officer, probation officer, or firefighter

while on duty; nothing in this Act prevents a public

employer of law enforcement officers, corrections

officers, probation officers, paramedics, or firefighters

from prohibiting or taking disciplinary action for the

consumption, possession, sales, purchase, or delivery of

cannabis or cannabis-infused substances while on or off

duty, unless provided for in the employer's policies.

However, an employer may not take adverse employment action

against an employee based solely on the lawful possession

or consumption of cannabis or cannabis-infused substances

by members of the employee's household. To the extent that

this Section conflicts with any applicable collective

bargaining agreement, the provisions of the collective

bargaining agreement shall prevail. Further, nothing in

this Act shall be construed to limit in any way the right

to collectively bargain over the subject matters contained

in this Act; or

(9) the use of cannabis by a person who has a school

bus permit or a Commercial Driver's License while on duty.

As used in this Section, "public place" means any place

where a person could reasonably be expected to be observed by

others. "Public place" includes all parts of buildings owned in

whole or in part, or leased, by the State or a unit of local

government. "Public place" includes all areas in a park,

recreation area, wildlife area, or playground owned in whole or

in part, leased, or managed by the State or a unit of local

government. "Public place" does not include a private residence

unless the private residence is used to provide licensed child

care, foster care, or other similar social service care on the

premises.

(b) Nothing in this Act shall be construed to prevent the

arrest or prosecution of a person for reckless driving or

driving under the influence of cannabis, operating a watercraft

under the influence of cannabis, or operating a snowmobile

under the influence of cannabis if probable cause exists.

(c) Nothing in this Act shall prevent a private business

from restricting or prohibiting the use of cannabis on its

property, including areas where motor vehicles are parked.

(d) Nothing in this Act shall require an individual or

business entity to violate the provisions of federal law,

including colleges or universities that must abide by the

Drug-Free Schools and Communities Act Amendments of 1989, that

require campuses to be drug free.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/10-40)

Sec. 10-40. Restore, Reinvest, and Renew Program.

(a) The General Assembly finds that in order to address the

disparities described below, aggressive approaches and

targeted resources to support local design and control of

community-based responses to these outcomes are required. To

carry out this intent, the Restore, Reinvest, and Renew (R3)

Program is created for the following purposes:

(1) to directly address the impact of economic

disinvestment, violence, and the historical overuse of

criminal justice responses to community and individual

needs by providing resources to support local design and

control of community-based responses to these impacts;

(2) to substantially reduce both the total amount of

gun violence and concentrated poverty in this State;

(3) to protect communities from gun violence through

targeted investments and intervention programs, including

economic growth and improving family violence prevention,

community trauma treatment rates, gun injury victim

services, and public health prevention activities;

(4) to promote employment infrastructure and capacity

building related to the social determinants of health in

the eligible community areas.

(b) In this Section, "Authority" means the Illinois

Criminal Justice Information Authority in coordination with

the Justice, Equity, and Opportunity Initiative of the

Lieutenant Governor's Office.

(c) Eligibility of R3 Areas. Within 180 days after the

effective date of this Act, the Authority shall identify as

eligible, areas in this State by way of historically recognized

geographic boundaries, to be designated by the Restore,

Reinvest, and Renew Program Board as R3 Areas and therefore

eligible to apply for R3 funding. Local groups within R3 Areas

will be eligible to apply for State funding through the

Restore, Reinvest, and Renew Program Board. Qualifications for

designation as an R3 Area are as follows:

(1) Based on an analysis of data, communities in this

State that are high need, underserved, disproportionately

impacted by historical economic disinvestment, and ravaged

by violence as indicated by the highest rates of gun

injury, unemployment, child poverty rates, and commitments

to and returns from the Illinois Department of Corrections.

(2) The Authority shall send to the Legislative Audit

Commission and make publicly available its analysis and

identification of eligible R3 Areas and shall recalculate

the he eligibility data every 4 years. On an annual basis,

the Authority shall analyze data and indicate if data

covering any R3 Area or portion of an Area has, for 4

consecutive years, substantially deviated from the average

of statewide data on which the original calculation was

made to determine the Areas, including disinvestment,

violence, gun injury, unemployment, child poverty rates,

or commitments to or returns from the Illinois Department

of Corrections.

(d) The Restore, Reinvest, and Renew Program Board shall

encourage collaborative partnerships within each R3 Area to

minimize multiple partnerships per Area.

(e) The Restore, Reinvest, and Renew Program Board is

created and shall reflect the diversity of the State of

Illinois, including geographic, racial, and ethnic diversity.

Using the data provided by the Authority, the Restore,

Reinvest, and Renew Program Board shall be responsible for

designating the R3 Area boundaries and for the selection and

oversight of R3 Area grantees. The Restore, Reinvest, and Renew

Program Board ex officio members shall, within 4 months after

the effective date of this Act, convene the Board to appoint a

full Restore, Reinvest, and Renew Program Board and oversee,

provide guidance to, and develop an administrative structure

for the R3 Program.

(1) The ex officio members are:

(A) The Lieutenant Governor, or his or her

designee, who shall serve as chair.

(B) The Attorney General, or his or her

designee.

(C) The Director of Commerce and Economic

Opportunity, or his or her designee.

(D) The Director of Public Health, or his or

her designee.

(E) The Director of Corrections, or his or her

designee.

(F) The Director of Juvenile Justice, or his or

her designee.

(G) The Director of Children and Family

Services, or his or her designee.

(H) (F) The Executive Director of the Illinois

Criminal Justice Information Authority, or his or

her designee.

(I) (G) The Director of Employment Security,

or his or her designee.

(J) (H) The Secretary of Human Services, or his

or her designee.

(K) (I) A member of the Senate, designated by

the President of the Senate.

(L) (J) A member of the House of

Representatives, designated by the Speaker of the

House of Representatives.

(M) (K) A member of the Senate, designated by

the Minority Leader of the Senate.

(N) (L) A member of the House of

Representatives, designated by the Minority Leader

of the House of Representatives.

(2) Within 90 days after the R3 Areas have been

designated by the Restore, Reinvest, and Renew Program

Board, the following members shall be appointed to the

Board by the R3 board chair:

(A) Eight public officials of municipal geographic

jurisdictions in the State that include an R3 Area, or

their designees;

(B) Four 4 community-based providers or community

development organization representatives who provide

services to treat violence and address the social

determinants of health, or promote community

investment, including, but not limited to, services

such as job placement and training, educational

services, workforce development programming, and

wealth building. The community-based organization

representatives shall work primarily in jurisdictions

that include an R3 Area and no more than 2

representatives shall work primarily in Cook County.

At least one of the community-based providers shall

have expertise in providing services to an immigrant

population;

(C) Two experts in the field of violence reduction;

(D) One male who has previously been incarcerated

and is over the age of 24 at the time of appointment;

(E) One female who has previously been

incarcerated and is over the age of 24 at the time of

appointment;

(F) Two individuals who have previously been

incarcerated and are between the ages of 17 and 24 at

the time of appointment.

As used in this paragraph (2), "an individual who has

been previously incarcerated" means a person who has been

convicted of or pled guilty to one or more felonies, who

was sentenced to a term of imprisonment, and who has

completed his or her sentence. Board members shall serve

without compensation and may be reimbursed for reasonable

expenses incurred in the performance of their duties from

funds appropriated for that purpose. Once all its members

have been appointed as outlined in items (A) through (F) of

this paragraph (2), the Board may exercise any power,

perform any function, take any action, or do anything in

furtherance of its purposes and goals upon the appointment

of a quorum of its members. The Board terms of the non-ex

officio and General Assembly Board members shall end 4

years from the date of appointment.

(f) Within 12 months after the effective date of this Act,

the Board shall:

(1) develop a process to solicit applications from

eligible R3 Areas;

(2) develop a standard template for both planning and

implementation activities to be submitted by R3 Areas to

the State;

(3) identify resources sufficient to support the full

administration and evaluation of the R3 Program, including

building and sustaining core program capacity at the

community and State levels;

(4) review R3 Area grant applications and proposed

agreements and approve the distribution of resources;

(5) develop a performance measurement system that

focuses on positive outcomes;

(6) develop a process to support ongoing monitoring and

evaluation of R3 programs; and

(7) deliver an annual report to the General Assembly

and to the Governor to be posted on the Governor's Office

and General Assembly websites and provide to the public an

annual report on its progress.

(g) R3 Area grants.

(1) Grant funds shall be awarded by the Illinois

Criminal Justice Information Authority, in coordination

with the R3 board, based on the likelihood that the plan

will achieve the outcomes outlined in subsection (a) and

consistent with the requirements of the Grant

Accountability and Transparency Act. The R3 Program shall

also facilitate the provision of training and technical

assistance for capacity building within and among R3 Areas.

(2) R3 Program Board grants shall be used to address

economic development, violence prevention services,

re-entry services, youth development, and civil legal aid.

(3) The Restore, Reinvest, and Renew Program Board and

the R3 Area grantees shall, within a period of no more than

120 days from the completion of planning activities

described in this Section, finalize an agreement on the

plan for implementation. Implementation activities may:

(A) have a basis in evidence or best practice

research or have evaluations demonstrating the

capacity to address the purpose of the program in

subsection (a);

(B) collect data from the inception of planning

activities through implementation, with data

collection technical assistance when needed, including

cost data and data related to identified meaningful

short-term, mid-term, and long-term goals and metrics;

(C) report data to the Restore, Reinvest, and Renew

Program Board biannually; and

(D) report information as requested by the R3

Program Board.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/10-50)

Sec. 10-50. Employment; employer liability.

(a) Nothing in this Act shall prohibit an employer from

adopting reasonable zero tolerance or drug free workplace

policies, or employment policies concerning drug testing,

smoking, consumption, storage, or use of cannabis in the

workplace or while on call provided that the policy is applied

in a nondiscriminatory manner.

(b) Nothing in this Act shall require an employer to permit

an employee to be under the influence of or use cannabis in the

employer's workplace or while performing the employee's job

duties or while on call.

(c) Nothing in this Act shall limit or prevent an employer

from disciplining an employee or terminating employment of an

employee for violating an employer's employment policies or

workplace drug policy.

(d) An employer may consider an employee to be impaired or

under the influence of cannabis if the employer has a good

faith belief that an employee manifests specific, articulable

symptoms while working that decrease or lessen the employee's

performance of the duties or tasks of the employee's job

position, including symptoms of the employee's speech,

physical dexterity, agility, coordination, demeanor,

irrational or unusual behavior, or negligence or carelessness

in operating equipment or machinery; disregard for the safety

of the employee or others, or involvement in any accident that

results in serious damage to equipment or property; disruption

of a production or manufacturing process; or carelessness that

results in any injury to the employee or others. If an employer

elects to discipline an employee on the basis that the employee

is under the influence or impaired by cannabis, the employer

must afford the employee a reasonable opportunity to contest

the basis of the determination.

(e) Nothing in this Act shall be construed to create or

imply a cause of action for any person against an employer for:

(1) actions taken pursuant to an employer's reasonable

workplace drug policy, including but not limited to

subjecting an employee or applicant to reasonable drug and

alcohol testing, reasonable and nondiscriminatory random

drug testing, and discipline, termination of employment,

or withdrawal of a job offer due to a failure of a drug

test; , including but not limited to subjecting an employee

or applicant to reasonable drug and alcohol testing under

the employer's workplace drug policy, including an

employee's refusal to be tested or to cooperate in testing

procedures or disciplining or termination of employment,

(2) actions based on the employer's good faith belief

that an employee used or possessed cannabis in the

employer's workplace or while performing the employee's

job duties or while on call in violation of the employer's

employment policies;

(3) (2) actions, including discipline or termination

of employment, based on the employer's good faith belief

that an employee was impaired as a result of the use of

cannabis, or under the influence of cannabis, while at the

employer's workplace or while performing the employee's

job duties or while on call in violation of the employer's

workplace drug policy; or

(4) (3) injury, loss, or liability to a third party if

the employer neither knew nor had reason to know that the

employee was impaired.

(f) Nothing in this Act shall be construed to enhance or

diminish protections afforded by any other law, including but

not limited to the Compassionate Use of Medical Cannabis Pilot

Program Act or the Opioid Alternative Pilot Program.

(g) Nothing in this Act shall be construed to interfere

with any federal, State, or local restrictions on employment

including, but not limited to, the United States Department of

Transportation regulation 49 CFR 40.151(e) or impact an

employer's ability to comply with federal or State law or cause

it to lose a federal or State contract or funding.

(h) As used in this Section, "workplace" means the

employer's premises, including any building, real property,

and parking area under the control of the employer or area used

by an employee while in the performance of the employee's job

duties, and vehicles, whether leased, rented, or owned.

"Workplace" may be further defined by the employer's written

employment policy, provided that the policy is consistent with

this Section.

(i) For purposes of this Section, an employee is deemed "on

call" when such employee is scheduled with at least 24 hours'

notice by his or her employer to be on standby or otherwise

responsible for performing tasks related to his or her

employment either at the employer's premises or other

previously designated location by his or her employer or

supervisor to perform a work-related task.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-15)

Sec. 15-15. Early Approval Adult Use Dispensing

Organization License.

(a) Any medical cannabis dispensing organization holding a

valid registration under the Compassionate Use of Medical

Cannabis Pilot Program Act as of the effective date of this Act

may, within 60 days of the effective date of this Act, apply to

the Department for an Early Approval Adult Use Dispensing

Organization License to serve purchasers at any medical

cannabis dispensing location in operation on the effective date

of this Act, pursuant to this Section.

(b) A medical cannabis dispensing organization seeking

issuance of an Early Approval Adult Use Dispensing Organization

License to serve purchasers at any medical cannabis dispensing

location in operation as of the effective date of this Act

shall submit an application on forms provided by the

Department. The application must be submitted by the same

person or entity that holds the medical cannabis dispensing

organization registration and include the following:

(1) Payment of a nonrefundable fee of $30,000 to be

deposited into the Cannabis Regulation Fund;

(2) Proof of registration as a medical cannabis

dispensing organization that is in good standing;

(3) Certification that the applicant will comply with

the requirements contained in the Compassionate Use of

Medical Cannabis Pilot Program Act except as provided in

this Act;

(4) The legal name of the dispensing organization;

(5) The physical address of the dispensing

organization;

(6) The name, address, social security number, and date

of birth of each principal officer and board member of the

dispensing organization, each of whom must be at least 21

years of age;

(7) A nonrefundable Cannabis Business Development Fee

equal to 3% of the dispensing organization's total sales

between June 1, 2018 to June 1, 2019, or $100,000,

whichever is less, to be deposited into the Cannabis

Business Development Fund; and

(8) Identification of one of the following Social

Equity Inclusion Plans to be completed by March 31, 2021:

(A) Make a contribution of 3% of total sales from

June 1, 2018 to June 1, 2019, or $100,000, whichever is

less, to the Cannabis Business Development Fund. This

is in addition to the fee required by item (7) of this

subsection (b);

(B) Make a grant of 3% of total sales from June 1,

2018 to June 1, 2019, or $100,000, whichever is less,

to a cannabis industry training or education program at

an Illinois community college as defined in the Public

Community College Act;

(C) Make a donation of $100,000 or more to a

program that provides job training services to persons

recently incarcerated or that operates in a

Disproportionately Impacted Area;

(D) Participate as a host in a cannabis business

establishment incubator program approved by the

Department of Commerce and Economic Opportunity, and

in which an Early Approval Adult Use Dispensing

Organization License holder agrees to provide a loan of

at least $100,000 and mentorship to incubate, for at

least a year, a Social Equity Applicant intending to

seek a license or a licensee that qualifies as a Social

Equity Applicant for at least a year. As used in this

Section, "incubate" means providing direct financial

assistance and training necessary to engage in

licensed cannabis industry activity similar to that of

the host licensee. The Early Approval Adult Use

Dispensing Organization License holder or the same

entity holding any other licenses issued pursuant to

this Act shall not take an ownership stake of greater

than 10% in any business receiving incubation services

to comply with this subsection. If an Early Approval

Adult Use Dispensing Organization License holder fails

to find a business to incubate to comply with this

subsection before its Early Approval Adult Use

Dispensing Organization License expires, it may opt to

meet the requirement of this subsection by completing

another item from this subsection; or

(E) Participate in a sponsorship program for at

least 2 years approved by the Department of Commerce

and Economic Opportunity in which an Early Approval

Adult Use Dispensing Organization License holder

agrees to provide an interest-free loan of at least

$200,000 to a Social Equity Applicant. The sponsor

shall not take an ownership stake in any cannabis

business establishment receiving sponsorship services

to comply with this subsection.

(c) The license fee required by paragraph (1) of subsection

(b) of this Section shall be in addition to any license fee

required for the renewal of a registered medical cannabis

dispensing organization license.

(d) Applicants must submit all required information,

including the requirements in subsection (b) of this Section,

to the Department. Failure by an applicant to submit all

required information may result in the application being

disqualified.

(e) If the Department receives an application that fails to

provide the required elements contained in subsection (b), the

Department shall issue a deficiency notice to the applicant.

The applicant shall have 10 calendar days from the date of the

deficiency notice to submit complete information. Applications

that are still incomplete after this opportunity to cure may be

disqualified.

(f) If an applicant meets all the requirements of

subsection (b) of this Section, the Department shall issue the

Early Approval Adult Use Dispensing Organization License

within 14 days of receiving a completed application unless:

(1) The licensee or a principal officer is delinquent

in filing any required tax returns or paying any amounts

owed to the State of Illinois;

(2) The Secretary of Financial and Professional

Regulation determines there is reason, based on documented

compliance violations, the licensee is not entitled to an

Early Approval Adult Use Dispensing Organization License;

or

(3) Any principal officer fails to register and remain

in compliance with this Act or the Compassionate Use of

Medical Cannabis Pilot Program Act.

(g) A registered medical cannabis dispensing organization

that obtains an Early Approval Adult Use Dispensing

Organization License may begin selling cannabis,

cannabis-infused products, paraphernalia, and related items to

purchasers under the rules of this Act no sooner than January

1, 2020.

(h) A dispensing organization holding a medical cannabis

dispensing organization license issued under the Compassionate

Use of Medical Cannabis Pilot Program Act must maintain an

adequate supply of cannabis and cannabis-infused products for

purchase by qualifying patients, caregivers, provisional

patients, and Opioid Alternative Pilot Program participants.

For the purposes of this subsection, "adequate supply" means a

monthly inventory level that is comparable in type and quantity

to those medical cannabis products provided to patients and

caregivers on an average monthly basis for the 6 months before

the effective date of this Act.

(i) If there is a shortage of cannabis or cannabis-infused

products, a dispensing organization holding both a dispensing

organization license under the Compassionate Use of Medical

Cannabis Pilot Program Act and this Act shall prioritize

serving qualifying patients, caregivers, provisional patients,

and Opioid Alternative Pilot Program participants before

serving purchasers.

(j) Notwithstanding any law or rule to the contrary, a

person that holds a medical cannabis dispensing organization

license issued under the Compassionate Use of Medical Cannabis

Pilot Program Act and an Early Approval Adult Use Dispensing

Organization License may permit purchasers into a limited

access area as that term is defined in administrative rules

made under the authority in the Compassionate Use of Medical

Cannabis Pilot Program Act.

(k) An Early Approval Adult Use Dispensing Organization

License is valid until March 31, 2021. A dispensing

organization that obtains an Early Approval Adult Use

Dispensing Organization License shall receive written or

electronic notice 90 days before the expiration of the license

that the license will expire, and that informs inform the

license holder that it may apply to renew its Early Approval

Adult Use Dispensing Organization License on forms provided by

the Department. The Department shall renew the Early Approval

Adult Use Dispensing Organization License within 60 days of the

renewal application being deemed complete if:

(1) the dispensing organization submits an application

and the required nonrefundable renewal fee of $30,000, to

be deposited into the Cannabis Regulation Fund;

(2) the Department has not suspended or permanently

revoked the Early Approval Adult Use Dispensing

Organization License or a medical cannabis dispensing

organization license on the same premises for violations of

this Act, the Compassionate Use of Medical Cannabis Pilot

Program Act, or rules adopted pursuant to those Acts; and

(3) the dispensing organization has completed a Social

Equity Inclusion Plan as provided required by parts (A),

(B), and (C) of paragraph (8) of subsection (b) of this

Section or has made substantial progress toward completing

a Social Equity Inclusion Plan as provided by parts (D) and

(E) of paragraph (8) of subsection (b) of this Section; and

(4) the dispensing organization is in compliance with

this Act and rules.

(l) The Early Approval Adult Use Dispensing Organization

License renewed pursuant to subsection (k) of this Section

shall expire March 31, 2022. The Early Approval Adult Use

Dispensing Organization Licensee shall receive written or

electronic notice 90 days before the expiration of the license

that the license will expire, and that informs inform the

license holder that it may apply for an Adult Use Dispensing

Organization License on forms provided by the Department. The

Department shall grant an Adult Use Dispensing Organization

License within 60 days of an application being deemed complete

if the applicant has met all of the criteria in Section 15-36.

(m) If a dispensing organization dispensary fails to submit

an application for renewal of an Early Approval Adult Use

Dispensing Organization License or for an Adult Use Dispensing

Organization License before the expiration dates provided in

subsections (k) and (l) of the Early Approval Adult Use

Dispensing Organization License pursuant to subsection (k) of

this Section, the dispensing organization shall cease serving

purchasers and cease all operations until it receives a renewal

or an Adult Use Dispensing Organization License, as the case

may be.

(n) A dispensing organization agent who holds a valid

dispensing organization agent identification card issued under

the Compassionate Use of Medical Cannabis Pilot Program Act and

is an officer, director, manager, or employee of the dispensing

organization licensed under this Section may engage in all

activities authorized by this Article to be performed by a

dispensing organization agent.

(o) If the Department suspends, permanently revokes, or

otherwise disciplines the Early Approval Adult Use Dispensing

Organization License of a dispensing organization that also

holds a medical cannabis dispensing organization license

issued under the Compassionate Use of Medical Cannabis Program

Act, the Department may consider the suspension, permanent

revocation, or other discipline of the medical cannabis

dispensing organization license.

(p) (o) All fees collected pursuant to this Section shall

be deposited into the Cannabis Regulation Fund, unless

otherwise specified.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-20)

Sec. 15-20. Early Approval Adult Use Dispensing

Organization License; secondary site.

(a) If the Department suspends or revokes the Early

Approval Adult Use Dispensing Organization License of a

dispensing organization that also holds a medical cannabis

dispensing organization license issued under the Compassionate

Use of Medical Cannabis Pilot Program Act, the Department may

consider the suspension or revocation as grounds to take

disciplinary action against the medical cannabis dispensing

organization license.

(a-5) If, within 360 days of the effective date of this

Act, a dispensing organization is unable to find a location

within the BLS Regions prescribed in subsection (a) of this

Section in which to operate an Early Approval Adult Use

Dispensing Organization at a secondary site because no

jurisdiction within the prescribed area allows the operation of

an Adult Use Cannabis Dispensing Organization, the Department

of Financial and Professional Regulation may waive the

geographic restrictions of subsection (a) of this Section and

specify another BLS Region into which the dispensary may be

placed.

(a) (b) Any medical cannabis dispensing organization

holding a valid registration under the Compassionate Use of

Medical Cannabis Pilot Program Act as of the effective date of

this Act may, within 60 days of the effective date of this Act,

apply to the Department for an Early Approval Adult Use

Dispensing Organization License to operate a dispensing

organization to serve purchasers at a secondary site not within

1,500 feet of another medical cannabis dispensing organization

or adult use dispensing organization. The Early Approval Adult

Use Dispensing Organization secondary site shall be within any

BLS Region region that shares territory with the dispensing

organization district to which the medical cannabis dispensing

organization is assigned under the administrative rules for

dispensing organizations under the Compassionate Use of

Medical Cannabis Pilot Program Act.

(a-5) If, within 360 days of the effective date of this

Act, a dispensing organization is unable to find a location

within the BLS Regions prescribed in subsection (a) of this

Section in which to operate an Early Approval Adult Use

Dispensing Organization at a secondary site because no

jurisdiction within the prescribed area allows the operation of

an Adult Use Cannabis Dispensing Organization, the Department

of Financial and Professional Regulation may waive the

geographic restrictions of subsection (a) of this Section and

specify another BLS Region into which the dispensary may be

placed.

(b) (Blank).

(c) A medical cannabis dispensing organization seeking

issuance of an Early Approval Adult Use Dispensing Organization

License at a secondary site to serve purchasers at a secondary

site as prescribed in subsection (a) (b) of this Section shall

submit an application on forms provided by the Department. The

application must meet or include the following qualifications:

(1) a payment of a nonrefundable application fee of

$30,000;

(2) proof of registration as a medical cannabis

dispensing organization that is in good standing;

(3) submission of the application by the same person or

entity that holds the medical cannabis dispensing

organization registration;

(4) the legal name of the medical cannabis dispensing

organization;

(5) the physical address of the medical cannabis

dispensing organization and the proposed physical address

of the secondary site;

(6) a copy of the current local zoning ordinance

Sections relevant to dispensary operations and

documentation of the approval, the conditional approval or

the status of a request for zoning approval from the local

zoning office that the proposed dispensary location is in

compliance with the local zoning rules;

(7) a plot plan of the dispensary drawn to scale. The

applicant shall submit general specifications of the

building exterior and interior layout;

(8) a statement that the dispensing organization

agrees to respond to the Department's supplemental

requests for information;

(9) for the building or land to be used as the proposed

dispensary:

(A) if the property is not owned by the applicant,

a written statement from the property owner and

landlord, if any, certifying consent that the

applicant may operate a dispensary on the premises; or

(B) if the property is owned by the applicant,

confirmation of ownership;

(10) a copy of the proposed operating bylaws;

(11) a copy of the proposed business plan that complies

with the requirements in this Act, including, at a minimum,

the following:

(A) a description of services to be offered; and

(B) a description of the process of dispensing

cannabis;

(12) a copy of the proposed security plan that complies

with the requirements in this Article, including:

(A) a description of the delivery process by which

cannabis will be received from a transporting

organization, including receipt of manifests and

protocols that will be used to avoid diversion, theft,

or loss at the dispensary acceptance point; and

(B) the process or controls that will be

implemented to monitor the dispensary, secure the

premises, agents, patients, and currency, and prevent

the diversion, theft, or loss of cannabis; and

(C) the process to ensure that access to the

restricted access areas is restricted to, registered

agents, service professionals, transporting

organization agents, Department inspectors, and

security personnel;

(13) a proposed inventory control plan that complies

with this Section;

(14) the name, address, social security number, and

date of birth of each principal officer and board member of

the dispensing organization; each of those individuals

shall be at least 21 years of age;

(15) a nonrefundable Cannabis Business Development Fee

equal to $200,000, to be deposited into the Cannabis

Business Development Fund; and

(16) a commitment to completing one of the following

Social Equity Inclusion Plans in subsection (d).

(d) Before receiving an Early Approval Adult Use Dispensing

Organization License at a secondary site, a dispensing

organization shall indicate the Social Equity Inclusion Plan

that the applicant plans to achieve before the expiration of

the Early Approval Adult Use Dispensing Organization License

from the list below:

(1) make a contribution of 3% of total sales from June

1, 2018 to June 1, 2019, or $100,000, whichever is less, to

the Cannabis Business Development Fund. This is in addition

to the fee required by paragraph (16) of subsection (c) of

this Section;

(2) make a grant of 3% of total sales from June 1, 2018

to June 1, 2019, or $100,000, whichever is less, to a

cannabis industry training or education program at an

Illinois community college as defined in the Public

Community College Act;

(3) make a donation of $100,000 or more to a program

that provides job training services to persons recently

incarcerated or that operates in a Disproportionately

Impacted Area;

(4) participate as a host in a cannabis business

establishment incubator program approved by the Department

of Commerce and Economic Opportunity, and in which an Early

Approval Adult Use Dispensing Organization License at a

secondary site holder agrees to provide a loan of at least

$100,000 and mentorship to incubate, for at least a year, a

Social Equity Applicant intending to seek a license or a

licensee that qualifies as a Social Equity Applicant for at

least a year. In this paragraph (4), "incubate" means

providing direct financial assistance and training

necessary to engage in licensed cannabis industry activity

similar to that of the host licensee. The Early Approval

Adult Use Dispensing Organization License holder or the

same entity holding any other licenses issued under this

Act shall not take an ownership stake of greater than 10%

in any business receiving incubation services to comply

with this subsection. If an Early Approval Adult Use

Dispensing Organization License at a secondary site holder

fails to find a business to incubate in order to comply

with this subsection before its Early Approval Adult Use

Dispensing Organization License at a secondary site

expires, it may opt to meet the requirement of this

subsection by completing another item from this subsection

before the expiration of its Early Approval Adult Use

Dispensing Organization License at a secondary site to

avoid a penalty; or

(5) participate in a sponsorship program for at least 2

years approved by the Department of Commerce and Economic

Opportunity in which an Early Approval Adult Use Dispensing

Organization License at a secondary site holder agrees to

provide an interest-free loan of at least $200,000 to a

Social Equity Applicant. The sponsor shall not take an

ownership stake of greater than 10% in any business

receiving sponsorship services to comply with this

subsection.

(e) The license fee required by paragraph (1) of subsection

(c) of this Section is in addition to any license fee required

for the renewal of a registered medical cannabis dispensing

organization license.

(f) Applicants must submit all required information,

including the requirements in subsection (c) of this Section,

to the Department. Failure by an applicant to submit all

required information may result in the application being

disqualified. Principal officers shall not be required to

submit to the fingerprint and background check requirements of

Section 5-20.

(g) If the Department receives an application that fails to

provide the required elements contained in subsection (c), the

Department shall issue a deficiency notice to the applicant.

The applicant shall have 10 calendar days from the date of the

deficiency notice to submit complete information. Applications

that are still incomplete after this opportunity to cure may be

disqualified.

(h) Once all required information and documents have been

submitted, the Department will review the application. The

Department may request revisions and retains final approval

over dispensary features. Once the application is complete and

meets the Department's approval, the Department shall

conditionally approve the license. Final approval is

contingent on the build-out and Department inspection.

(i) Upon submission of the Early Approval Adult Use

Dispensing Organization at a secondary site application, the

applicant shall request an inspection and the Department may

inspect the Early Approval Adult Use Dispensing Organization's

secondary site to confirm compliance with the application and

this Act.

(j) The Department shall only issue an Early Approval Adult

Use Dispensing Organization License at a secondary site after

the completion of a successful inspection.

(k) If an applicant passes the inspection under this

Section, the Department shall issue the Early Approval Adult

Use Dispensing Organization License at a secondary site within

10 business days unless:

(1) The licensee, any principal officer or board member

of the licensee, or any person having a financial or voting

interest of 5% or greater in the licensee ; principal

officer, board member, or person having a financial or

voting interest of 5% or greater in the licensee; or agent

is delinquent in filing any required tax returns or paying

any amounts owed to the State of Illinois; or

(2) The Secretary of Financial and Professional

Regulation determines there is reason, based on documented

compliance violations, the licensee is not entitled to an

Early Approval Adult Use Dispensing Organization License

at its secondary site.

(l) Once the Department has issued a license, the

dispensing organization shall notify the Department of the

proposed opening date.

(m) A registered medical cannabis dispensing organization

that obtains an Early Approval Adult Use Dispensing

Organization License at a secondary site may begin selling

cannabis, cannabis-infused products, paraphernalia, and

related items to purchasers under the rules of this Act no

sooner than January 1, 2020.

(n) If there is a shortage of cannabis or cannabis-infused

products, a dispensing organization holding both a dispensing

organization license under the Compassionate Use of Medical

Cannabis Pilot Program Act and this Article shall prioritize

serving qualifying patients and caregivers before serving

purchasers.

(o) An Early Approval Adult Use Dispensing Organization

License at a secondary site is valid until March 31, 2021. A

dispensing organization that obtains an Early Approval Adult

Use Dispensing Organization License at a secondary site shall

receive written or electronic notice 90 days before the

expiration of the license that the license will expire, and

inform the license holder that it may renew its Early Approval

Adult Use Dispensing Organization License at a secondary site.

The Department shall renew an Early Approval Adult Use

Dispensing Organization License at a secondary site within 60

days of submission of the renewal application being deemed

complete if:

(1) the dispensing organization submits an application

and the required nonrefundable renewal fee of $30,000, to

be deposited into the Cannabis Regulation Fund;

(2) the Department has not suspended or permanently

revoked the Early Approval Adult Use Dispensing

Organization License or a medical cannabis dispensing

organization license held by the same person or entity for

violating this Act or rules adopted under this Act or the

Compassionate Use of Medical Cannabis Pilot Program Act or

rules adopted under that Act; and

(3) the dispensing organization has completed a Social

Equity Inclusion Plan provided as required by paragraph

(1), (2), or (3) (16) of subsection (d) (c) of this Section

or has made substantial progress toward completing a Social

Equity Inclusion Plan provided by paragraph (4) or (5) of

subsection (d) of this Section.

(p) The Early Approval Adult Use Dispensing Organization

Licensee at a secondary site renewed pursuant to subsection (o)

shall receive written or electronic notice 90 days before the

expiration of the license that the license will expire, and

that informs inform the license holder that it may apply for an

Adult Use Dispensing Organization License on forms provided by

the Department. The Department shall grant an Adult Use

Dispensing Organization License within 60 days of an

application being deemed complete if the applicant has meet all

of the criteria in Section 15-36.

(q) If a dispensing organization fails to submit an

application for renewal of an Early Approval Adult Use

Dispensing Organization License or for an Adult Use Dispensing

Organization License before the expiration dates provided in

subsections (o) and (p) of this Section, the dispensing

organization shall cease serving purchasers until it receives a

renewal or an Adult Use Dispensing Organization License.

(r) A dispensing organization agent who holds a valid

dispensing organization agent identification card issued under

the Compassionate Use of Medical Cannabis Pilot Program Act and

is an officer, director, manager, or employee of the dispensing

organization licensed under this Section may engage in all

activities authorized by this Article to be performed by a

dispensing organization agent.

(s) If the Department suspends, permanently revokes, or

otherwise disciplines the Early Approval Adult Use Dispensing

Organization License of a dispensing organization that also

holds a medical cannabis dispensing organization license

issued under the Compassionate Use of Medical Cannabis Program

Act, the Department may consider the suspension, permanent

revocation, or other discipline or revokes the Early Approval

Adult Use Dispensing Organization License of a dispensing

organization that also holds a medical cannabis dispensing

organization license issued under the Compassionate Use of

Medical Cannabis Pilot Program Act, the Department may consider

the suspension or revocation as grounds to take disciplinary

action against the medical cannabis dispensing organization.

(t) All fees collected pursuant to this Section shall be

deposited into the Cannabis Regulation Fund, unless otherwise

specified or fines collected from an Early Approval Adult Use

Dispensary Organization License at a secondary site holder as a

result of a disciplinary action in the enforcement of this Act

shall be deposited into the Cannabis Regulation Fund and be

appropriated to the Department for the ordinary and contingent

expenses of the Department in the administration and

enforcement of this Section.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-25)

Sec. 15-25. Awarding of Conditional Adult Use Dispensing

Organization Licenses prior to January 1, 2021.

(a) The Department shall issue up to 75 Conditional Adult

Use Dispensing Organization Licenses before May 1, 2020.

(b) The Department shall make the application for a

Conditional Adult Use Dispensing Organization License

available no later than October 1, 2019 and shall accept

applications no later than January 1, 2020.

(c) To ensure the geographic dispersion of Conditional

Adult Use Dispensing Organization License holders, the

following number of licenses shall be awarded in each BLS

Region as determined by each region's percentage of the State's

population:

(1) Bloomington: 1

(2) Cape Girardeau: 1

(3) Carbondale-Marion: 1

(4) Champaign-Urbana: 1

(5) Chicago-Naperville-Elgin: 47

(6) Danville: 1

(7) Davenport-Moline-Rock Island: 1

(8) Decatur: 1

(9) Kankakee: 1

(10) Peoria: 3

(11) Rockford: 2

(12) St. Louis: 4

(13) Springfield: 1

(14) Northwest Illinois nonmetropolitan: 3

(15) West Central Illinois nonmetropolitan: 3

(16) East Central Illinois nonmetropolitan: 2

(17) South Illinois nonmetropolitan: 2

(d) An applicant seeking issuance of a Conditional Adult

Use Dispensing Organization License shall submit an

application on forms provided by the Department. An applicant

must meet the following requirements:

(1) Payment of a nonrefundable application fee of

$5,000 for each license for which the applicant is

applying, which shall be deposited into the Cannabis

Regulation Fund;

(2) Certification that the applicant will comply with

the requirements contained in this Act;

(3) The legal name of the proposed dispensing

organization;

(4) A statement that the dispensing organization

agrees to respond to the Department's supplemental

requests for information;

(5) From each principal officer, a statement

indicating whether that person:

(A) has previously held or currently holds an

ownership interest in a cannabis business

establishment in Illinois; or

(B) has held an ownership interest in a dispensing

organization or its equivalent in another state or

territory of the United States that had the dispensing

organization registration or license suspended,

revoked, placed on probationary status, or subjected

to other disciplinary action;

(6) Disclosure of whether any principal officer has

ever filed for bankruptcy or defaulted on spousal support

or child support obligation;

(7) A resume for each principal officer, including

whether that person has an academic degree, certification,

or relevant experience with a cannabis business

establishment or in a related industry;

(8) A description of the training and education that

will be provided to dispensing organization agents;

(9) A copy of the proposed operating bylaws;

(10) A copy of the proposed business plan that complies

with the requirements in this Act, including, at a minimum,

the following:

(A) A description of services to be offered; and

(B) A description of the process of dispensing

cannabis;

(11) A copy of the proposed security plan that complies

with the requirements in this Article, including:

(A) The process or controls that will be

implemented to monitor the dispensary, secure the

premises, agents, and currency, and prevent the

diversion, theft, or loss of cannabis; and

(B) The process to ensure that access to the

restricted access areas is restricted to, registered

agents, service professionals, transporting

organization agents, Department inspectors, and

security personnel;

(12) A proposed inventory control plan that complies

with this Section;

(13) A proposed floor plan, a square footage estimate,

and a description of proposed security devices, including,

without limitation, cameras, motion detectors, servers,

video storage capabilities, and alarm service providers;

(14) The name, address, social security number, and

date of birth of each principal officer and board member of

the dispensing organization; each of those individuals

shall be at least 21 years of age;

(15) Evidence of the applicant's status as a Social

Equity Applicant, if applicable, and whether a Social

Equity Applicant plans to apply for a loan or grant issued

by the Department of Commerce and Economic Opportunity;

(16) The address, telephone number, and email address

of the applicant's principal place of business, if

applicable. A post office box is not permitted;

(17) Written summaries of any information regarding

instances in which a business or not-for-profit that a

prospective board member previously managed or served on

were fined or censured, or any instances in which a

business or not-for-profit that a prospective board member

previously managed or served on had its registration

suspended or revoked in any administrative or judicial

proceeding;

(18) A plan for community engagement;

(19) Procedures to ensure accurate recordkeeping and

security measures that are in accordance with this Article

and Department rules;

(20) The estimated volume of cannabis it plans to store

at the dispensary;

(21) A description of the features that will provide

accessibility to purchasers as required by the Americans

with Disabilities Act;

(22) A detailed description of air treatment systems

that will be installed to reduce odors;

(23) A reasonable assurance that the issuance of a

license will not have a detrimental impact on the community

in which the applicant wishes to locate;

(24) The dated signature of each principal officer;

(25) A description of the enclosed, locked facility

where cannabis will be stored by the dispensing

organization;

(26) Signed statements from each dispensing

organization agent stating that he or she will not divert

cannabis;

(27) The number of licenses it is applying for in each

BLS Region;

(28) A diversity plan that includes a narrative of at

least 2,500 words that establishes a goal of diversity in

ownership, management, employment, and contracting to

ensure that diverse participants and groups are afforded

equality of opportunity;

(29) A contract with a private security contractor that

is licensed under Section 10-5 of the Private Detective,

Private Alarm, Private Security, Fingerprint Vendor, and

Locksmith Act of 2004 in order for the dispensary to have

adequate security at its facility; and

(30) Other information deemed necessary by the

Illinois Cannabis Regulation Oversight Officer to conduct

the disparity and availability study referenced in

subsection (e) of Section 5-45.

(e) An applicant who receives a Conditional Adult Use

Dispensing Organization License under this Section has 180 days

from the date of award to identify a physical location for the

dispensing organization retail storefront. Before a

conditional licensee receives an authorization to build out the

dispensing organization from the Department, the Department

shall inspect the physical space selected by the conditional

licensee. The Department shall verify the site is suitable for

public access, the layout promotes the safe dispensing of

cannabis, the location is sufficient in size, power allocation,

lighting, parking, handicapped accessible parking spaces,

accessible entry and exits as required by the Americans with

Disabilities Act, product handling, and storage. The applicant

shall also provide a statement of reasonable assurance that the

issuance of a license will not have a detrimental impact on the

community. The applicant shall also provide evidence that the

location is not within 1,500 feet of an existing dispensing

organization. If an applicant is unable to find a suitable

physical address in the opinion of the Department within 180

days of the issuance of the Conditional Adult Use Dispensing

Organization License, the Department may extend the period for

finding a physical address another 180 days if the Conditional

Adult Use Dispensing Organization License holder demonstrates

concrete attempts to secure a location and a hardship. If the

Department denies the extension or the Conditional Adult Use

Dispensing Organization License holder is unable to find a

location or become operational within 360 days of being awarded

a conditional license, the Department shall rescind the

conditional license and award it to the next highest scoring

applicant in the BLS Region for which the license was assigned,

provided the applicant receiving the license: (i) confirms a

continued interest in operating a dispensing organization;

(ii) can provide evidence that the applicant continues to meet

all requirements for holding a Conditional Adult Use Dispensing

Organization License set forth in this Act the financial

requirements provided in subsection (c) of this Section; and

(iii) has not otherwise become ineligible to be awarded a

dispensing organization license. If the new awardee is unable

to accept the Conditional Adult Use Dispensing Organization

License, the Department shall award the Conditional Adult Use

Dispensing Organization License to the next highest scoring

applicant in the same manner. The new awardee shall be subject

to the same required deadlines as provided in this subsection.

(e-5) If, within 180 days of being awarded a Conditional

Adult Use Dispensing Organization License license, a

dispensing organization is unable to find a location within the

BLS Region in which it was awarded a Conditional Adult Use

Dispensing Organization License license because no

jurisdiction within the BLS Region allows for the operation of

an Adult Use Dispensing Organization, the Department of

Financial and Professional Regulation may authorize the

Conditional Adult Use Dispensing Organization License holder

to transfer its license to a BLS Region specified by the

Department.

(f) A dispensing organization that is awarded a Conditional

Adult Use Dispensing Organization License pursuant to the

criteria in Section 15-30 shall not purchase, possess, sell, or

dispense cannabis or cannabis-infused products until the

person has received an Adult Use Dispensing Organization

License issued by the Department pursuant to Section 15-36 of

this Act. The Department shall not issue an Adult Use

Dispensing Organization License until:

(1) the Department has inspected the dispensary site

and proposed operations and verified that they are in

compliance with this Act and local zoning laws; and

(2) the Conditional Adult Use Dispensing Organization

License holder has paid a registration fee of $60,000, or a

prorated amount accounting for the difference of time

between when the Adult Use Dispensing Organization License

is issued and March 31 of the next even-numbered year.

(g) The Department shall conduct a background check of the

prospective organization agents in order to carry out this

Article. The Department of State Police shall charge the

applicant a fee for conducting the criminal history record

check, which shall be deposited into the State Police Services

Fund and shall not exceed the actual cost of the record check.

Each person applying as a dispensing organization agent shall

submit a full set of fingerprints to the Department of State

Police for the purpose of obtaining a State and federal

criminal records check. These fingerprints shall be checked

against the fingerprint records now and hereafter, to the

extent allowed by law, filed in the Department of State Police

and Federal Bureau of Identification criminal history records

databases. The Department of State Police shall furnish,

following positive identification, all Illinois conviction

information to the Department.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-30)

Sec. 15-30. Selection criteria for conditional licenses

awarded under Section 15-25.

(a) Applicants for a Conditional Adult Use Dispensing

Organization License must submit all required information,

including the information required in Section 15-25, to the

Department. Failure by an applicant to submit all required

information may result in the application being disqualified.

(b) If the Department receives an application that fails to

provide the required elements contained in this Section, the

Department shall issue a deficiency notice to the applicant.

The applicant shall have 10 calendar days from the date of the

deficiency notice to resubmit the incomplete information.

Applications that are still incomplete after this opportunity

to cure will not be scored and will be disqualified.

(c) The Department will award up to 250 points to complete

applications based on the sufficiency of the applicant's

responses to required information. Applicants will be awarded

points based on a determination that the application

satisfactorily includes the following elements:

(1) Suitability of Employee Training Plan (15 points).

The plan includes an employee training plan that

demonstrates that employees will understand the rules

and laws to be followed by dispensary employees, have

knowledge of any security measures and operating

procedures of the dispensary, and are able to advise

purchasers on how to safely consume cannabis and use

individual products offered by the dispensary.

(2) Security and Recordkeeping (65 points).

(A) The security plan accounts for the prevention

of the theft or diversion of cannabis. The security

plan demonstrates safety procedures for dispensing

organization dispensary agents and purchasers, and

safe delivery and storage of cannabis and currency. It

demonstrates compliance with all security requirements

in this Act and rules.

(B) A plan for recordkeeping, tracking, and

monitoring inventory, quality control, and other

policies and procedures that will promote standard

recordkeeping and discourage unlawful activity. This

plan includes the applicant's strategy to communicate

with the Department and the Department of State Police

on the destruction and disposal of cannabis. The plan

must also demonstrate compliance with this Act and

rules.

(C) The security plan shall also detail which

private security contractor licensed under Section

10-5 of the Private Detective, Private Alarm, Private

Security, Fingerprint Vendor, and Locksmith Act of

2004 the dispensary will contract with in order to

provide adequate security at its facility.

(3) Applicant's Business Plan, Financials, Operating

and Floor Plan (65 points).

(A) The business plan shall describe, at a minimum,

how the dispensing organization will be managed on a

long-term basis. This shall include a description of

the dispensing organization's point-of-sale system,

purchases and denials of sale, confidentiality, and

products and services to be offered. It will

demonstrate compliance with this Act and rules.

(B) The operating plan shall include, at a minimum,

best practices for day-to-day dispensary operation and

staffing. The operating plan may also include

information about employment practices, including

information about the percentage of full-time

employees who will be provided a living wage.

(C) The proposed floor plan is suitable for public

access, the layout promotes safe dispensing of

cannabis, is compliant with the Americans with

Disabilities Act and the Environmental Barriers Act,

and facilitates safe product handling and storage.

(4) Knowledge and Experience (30 points).

(A) The applicant's principal officers must

demonstrate experience and qualifications in business

management or experience with the cannabis industry.

This includes ensuring optimal safety and accuracy in

the dispensing and sale of cannabis.

(B) The applicant's principal officers must

demonstrate knowledge of various cannabis product

strains or varieties and describe the types and

quantities of products planned to be sold. This

includes confirmation of whether the dispensing

organization plans to sell cannabis paraphernalia or

edibles.

(C) Knowledge and experience may be demonstrated

through experience in other comparable industries that

reflect on the applicant's ability to operate a

cannabis business establishment.

(5) Status as a Social Equity Applicant (50 points).

The applicant meets the qualifications for a

Social Equity Applicant as set forth in this Act.

(6) Labor and employment practices (5 points): The

applicant may describe plans to provide a safe, healthy,

and economically beneficial working environment for its

agents, including, but not limited to, codes of conduct,

health care benefits, educational benefits, retirement

benefits, living wage standards, and entering a labor peace

agreement with employees.

(7) Environmental Plan (5 points): The applicant may

demonstrate an environmental plan of action to minimize the

carbon footprint, environmental impact, and resource needs

for the dispensary, which may include, without limitation,

recycling cannabis product packaging.

(8) Illinois owner (5 points): The applicant is 51% or

more owned and controlled by an Illinois resident, who can

prove residency in each of the past 5 years with tax

records or 2 of the following: .

(A) a signed lease agreement that includes the

applicant's name;

(B) a property deed that includes the applicant's

name;

(C) school records;

(D) a voter registration card;

(E) an Illinois driver's license, an Illinois

Identification Card, or an Illinois Person with a

Disability Identification Card;

(F) a paycheck stub;

(G) a utility bill; or

(H) any other proof of residency or other

information necessary to establish residence as

provided by rule.

(9) Status as veteran (5 points): The applicant is 51%

or more controlled and owned by an individual or

individuals who meet the qualifications of a veteran as

defined by Section 45-57 of the Illinois Procurement Code.

(10) A diversity plan (5 points): that includes a

narrative of not more than 2,500 words that establishes a

goal of diversity in ownership, management, employment,

and contracting to ensure that diverse participants and

groups are afforded equality of opportunity.

(d) The Department may also award up to 2 bonus points for

a plan to engage with the community. The applicant may

demonstrate a desire to engage with its community by

participating in one or more of, but not limited to, the

following actions: (i) establishment of an incubator program

designed to increase participation in the cannabis industry by

persons who would qualify as Social Equity Applicants; (ii)

providing financial assistance to substance abuse treatment

centers; (iii) educating children and teens about the potential

harms of cannabis use; or (iv) other measures demonstrating a

commitment to the applicant's community. Bonus points will only

be awarded if the Department receives applications that receive

an equal score for a particular region.

(e) The Department may verify information contained in each

application and accompanying documentation to assess the

applicant's veracity and fitness to operate a dispensing

organization.

(f) The Department may, in its discretion, refuse to issue

an authorization to any applicant:

(1) Who is unqualified to perform the duties required

of the applicant;

(2) Who fails to disclose or states falsely any

information called for in the application;

(3) Who has been found guilty of a violation of this

Act, or whose medical cannabis dispensing organization,

medical cannabis cultivation organization, or Early

Approval Adult Use Dispensing Organization License, or

Early Approval Adult Use Dispensing Organization License

at a secondary site, or Early Approval Cultivation Center

License was suspended, restricted, revoked, or denied for

just cause, or the applicant's cannabis business

establishment license was suspended, restricted, revoked,

or denied in any other state; or

(4) Who has engaged in a pattern or practice of unfair

or illegal practices, methods, or activities in the conduct

of owning a cannabis business establishment or other

business.

(g) The Department shall deny the license if any principal

officer, board member, or person having a financial or voting

interest of 5% or greater in the licensee is delinquent in

filing any required tax returns or paying any amounts owed to

the State of Illinois.

(h) The Department shall verify an applicant's compliance

with the requirements of this Article and rules before issuing

a dispensing organization license.

(i) Should the applicant be awarded a license, the

information and plans provided in the application, including

any plans submitted for bonus points, shall become a condition

of the Conditional Adult Use Dispensing Organization Licenses

and any Adult Use Dispensing Organization License issued to the

holder of the Conditional Adult Use Dispensing Organization

License, except as otherwise provided by this Act or rule.

Dispensing organizations have a duty to disclose any material

changes to the application. The Department shall review all

material changes disclosed by the dispensing organization, and

may re-evaluate its prior decision regarding the awarding of a

license, including, but not limited to, suspending or

permanently revoking a license. Failure to comply with the

conditions or requirements in the application may subject the

dispensing organization to discipline, up to and including

suspension or permanent revocation of its authorization or

license by the Department.

(j) If an applicant has not begun operating as a dispensing

organization within one year of the issuance of the Conditional

Adult Use Dispensing Organization License, the Department may

permanently revoke the Conditional Adult Use Dispensing

Organization License and award it to the next highest scoring

applicant in the BLS Region if a suitable applicant indicates a

continued interest in the license or begin a new selection

process to award a Conditional Adult Use Dispensing

Organization License.

(k) The Department shall deny an application if granting

that application would result in a single person or entity

having a direct or indirect financial interest in more than 10

Early Approval Adult Use Dispensing Organization Licenses,

Conditional Adult Use Dispensing Organization Licenses, or

Adult Use Dispensing Organization Licenses. Any entity that is

awarded a license that results in a single person or entity

having a direct or indirect financial interest in more than 10

licenses shall forfeit the most recently issued license and

suffer a penalty to be determined by the Department, unless the

entity declines the license at the time it is awarded.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-35)

Sec. 15-35. Conditional Adult Use Dispensing Organization

License after January 1, 2021.

(a) In addition to any of the licenses issued in Sections

15-15, Section 15-20, or Section 15-25 of this Act, by December

21, 2021, the Department shall issue up to 110 Conditional

Adult Use Dispensing Organization Licenses, pursuant to the

application process adopted under this Section. Prior to

issuing such licenses, the Department may adopt rules through

emergency rulemaking in accordance with subsection (gg) of

Section 5-45 of the Illinois Administrative Procedure Act. The

General Assembly finds that the adoption of rules to regulate

cannabis use is deemed an emergency and necessary for the

public interest, safety, and welfare. Such rules may:

(1) Modify or change the BLS Regions as they apply to

this Article or modify or raise the number of Adult

Conditional Use Dispensing Organization Licenses assigned

to each region based on the following factors:

(A) Purchaser wait times;

(B) Travel time to the nearest dispensary for

potential purchasers;

(C) Percentage of cannabis sales occurring in

Illinois not in the regulated market using data from

the Substance Abuse and Mental Health Services

Administration, National Survey on Drug Use and

Health, Illinois Behavioral Risk Factor Surveillance

System, and tourism data from the Illinois Office of

Tourism to ascertain total cannabis consumption in

Illinois compared to the amount of sales in licensed

dispensing organizations;

(D) Whether there is an adequate supply of cannabis

and cannabis-infused products to serve registered

medical cannabis patients;

(E) Population increases or shifts;

(F) Density of dispensing organizations in a

region;

(G) The Department's capacity to appropriately

regulate additional licenses;

(H) The findings and recommendations from the

disparity and availability study commissioned by the

Illinois Cannabis Regulation Oversight Officer in

subsection (e) of Section 5-45 to reduce or eliminate

any identified barriers to entry in the cannabis

industry; and

(I) Any other criteria the Department deems

relevant.

(2) Modify or change the licensing application process

to reduce or eliminate the barriers identified in the

disparity and availability study commissioned by the

Illinois Cannabis Regulation Oversight Officer and make

modifications to remedy evidence of discrimination.

(b) After January 1, 2022, the Department may by rule

modify or raise the number of Adult Use Dispensing Organization

Licenses assigned to each region, and modify or change the

licensing application process to reduce or eliminate barriers

based on the criteria in subsection (a). At no time shall the

Department issue more than 500 Adult Use Dispensing Dispensary

Organization Licenses.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-36)

Sec. 15-36. Adult Use Dispensing Organization License.

(a) A person is only eligible to receive an Adult Use

Dispensing Organization if the person has been awarded a

Conditional Adult Use Dispensing Organization License pursuant

to this Act or has renewed its license pursuant to subsection

(k) of Section 15-15 or subsection (p) of Section 15-20.

(b) The Department shall not issue an Adult Use Dispensing

Organization License until:

(1) the Department has inspected the dispensary site

and proposed operations and verified that they are in

compliance with this Act and local zoning laws;

(2) the Conditional Adult Use Dispensing Organization

License holder has paid a license registration fee of

$60,000 or a prorated amount accounting for the difference

of time between when the Adult Use Dispensing Organization

License is issued and March 31 of the next even-numbered

year; and

(3) the Conditional Adult Use Dispensing Organization

License holder has met all the requirements in this the Act

and rules.

(c) No person or entity shall hold any legal, equitable,

ownership, or beneficial interest, directly or indirectly, of

more than 10 dispensing organizations licensed under this

Article. Further, no person or entity that is:

(1) employed by, is an agent of, or participates in the

management of a dispensing organization or registered

medical cannabis dispensing organization;

(2) a principal officer of a dispensing organization or

registered medical cannabis dispensing organization; or

(3) an entity controlled by or affiliated with a

principal officer of a dispensing organization or

registered medical cannabis dispensing organization;

shall hold any legal, equitable, ownership, or beneficial

interest, directly or indirectly, in a dispensing organization

that would result in such person or entity owning or

participating in the management of more than 10 Early Approval

Adult Use Dispensing Organization Licenses, Early Approval

Adult Use Dispensing Organization Licenses at a secondary site,

Conditional Adult Use Dispensing Organization Licenses, or

Adult Use Dispensing Organization Licenses dispensing

organizations. For the purpose of this subsection,

participating in management may include, without limitation,

controlling decisions regarding staffing, pricing, purchasing,

marketing, store design, hiring, and website design.

(d) The Department shall deny an application if granting

that application would result in a person or entity obtaining

direct or indirect financial interest in more than 10 Early

Approval Adult Use Dispensing Organization Licenses,

Conditional Adult Use Dispensing Organization Licenses, Adult

Use Dispensing Organization Licenses, or any combination

thereof. If a person or entity is awarded a Conditional Adult

Use Dispensing Organization License that would cause the person

or entity to be in violation of this subsection, he, she, or it

shall choose which license application it wants to abandon and

such licenses shall become available to the next qualified

applicant in the region in which the abandoned license was

awarded.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-40)

Sec. 15-40. Dispensing organization agent identification

card; agent training.

(a) The Department shall:

(1) verify the information contained in an application

or renewal for a dispensing organization agent

identification card submitted under this Article, and

approve or deny an application or renewal, within 30 days

of receiving a completed application or renewal

application and all supporting documentation required by

rule;

(2) issue a dispensing organization agent

identification card to a qualifying agent within 15

business days of approving the application or renewal;

(3) enter the registry identification number of the

dispensing organization where the agent works;

(4) within one year from the effective date of this

Act, allow for an electronic application process and

provide a confirmation by electronic or other methods that

an application has been submitted; and

(5) collect a $100 nonrefundable fee from the applicant

to be deposited into the Cannabis Regulation Fund.

(b) A dispensing organization agent must keep his or her

identification card visible at all times when in the dispensary

on the property of the dispensing organization.

(c) The dispensing organization agent identification cards

shall contain the following:

(1) the name of the cardholder;

(2) the date of issuance and expiration date of the

dispensing organization agent identification cards;

(3) a random 10-digit alphanumeric identification

number containing at least 4 numbers and at least 4 letters

that is unique to the cardholder; and

(4) a photograph of the cardholder.

(d) The dispensing organization agent identification cards

shall be immediately returned to the dispensing organization

upon termination of employment.

(e) The Department shall not issue an agent identification

card if the applicant is delinquent in filing any required tax

returns or paying any amounts owed to the State of Illinois.

(f) Any card lost by a dispensing organization agent shall

be reported to the Department of State Police and the

Department immediately upon discovery of the loss.

(g) An applicant shall be denied a dispensing organization

agent identification card renewal if he or she fails to

complete the training provided for in this Section.

(h) A dispensing organization agent shall only be required

to hold one card for the same employer regardless of what type

of dispensing organization license the employer holds.

(i) Cannabis retail sales training requirements.

(1) Within 90 days of September 1, 2019, or 90 days of

employment, whichever is later, all owners, managers,

employees, and agents involved in the handling or sale of

cannabis or cannabis-infused product employed by an adult

use dispensing organization or medical cannabis dispensing

organization as defined in Section 10 of the Compassionate

Use of Medical Cannabis Pilot Program Act shall attend and

successfully complete a Responsible Vendor Program.

(2) Each owner, manager, employee, and agent of an

adult use dispensing organization or medical cannabis

dispensing organization shall successfully complete the

program annually.

(3) Responsible Vendor Program Training modules shall

include at least 2 hours of instruction time approved by

the Department including:

(i) Health and safety concerns of cannabis use,

including the responsible use of cannabis, its

physical effects, onset of physiological effects,

recognizing signs of impairment, and appropriate

responses in the event of overconsumption.

(ii) Training on laws and regulations on driving

while under the influence and operating a watercraft or

snowmobile while under the influence.

(iii) Sales to minors prohibition. Training shall

cover all relevant Illinois laws and rules.

(iv) Quantity limitations on sales to purchasers.

Training shall cover all relevant Illinois laws and

rules.

(v) Acceptable forms of identification. Training

shall include:

(I) How to check identification; and

(II) Common mistakes made in verification;

(vi) Safe storage of cannabis;

(vii) Compliance with all inventory tracking

system regulations;

(viii) Waste handling, management, and disposal;

(ix) Health and safety standards;

(x) Maintenance of records;

(xi) Security and surveillance requirements;

(xii) Permitting inspections by State and local

licensing and enforcement authorities;

(xiii) Privacy issues;

(xiv) Packaging and labeling requirement for sales

to purchasers; and

(xv) Other areas as determined by rule.

(j) Blank.

(k) Upon the successful completion of the Responsible

Vendor Program, the provider shall deliver proof of completion

either through mail or electronic communication to the

dispensing organization, which shall retain a copy of the

certificate.

(l) The license of a dispensing organization or medical

cannabis dispensing organization whose owners, managers,

employees, or agents fail to comply with this Section may be

suspended or permanently revoked under Section 15-145 or may

face other disciplinary action.

(m) The regulation of dispensing organization and medical

cannabis dispensing employer and employee training is an

exclusive function of the State, and regulation by a unit of

local government, including a home rule unit, is prohibited.

This subsection (m) is a denial and limitation of home rule

powers and functions under subsection (h) of Section 6 of

Article VII of the Illinois Constitution.

(n) Persons seeking Department approval to offer the

training required by paragraph (3) of subsection (i) may apply

for such approval between August 1 and August 15 of each

odd-numbered year in a manner prescribed by the Department.

(o) Persons seeking Department approval to offer the

training required by paragraph (3) of subsection (i) shall

submit a nonrefundable non-refundable application fee of

$2,000 to be deposited into the Cannabis Regulation Fund or a

fee as may be set by rule. Any changes made to the training

module shall be approved by the Department.

(p) The Department shall not unreasonably deny approval of

a training module that meets all the requirements of paragraph

(3) of subsection (i). A denial of approval shall include a

detailed description of the reasons for the denial.

(q) Any person approved to provide the training required by

paragraph (3) of subsection (i) shall submit an application for

re-approval between August 1 and August 15 of each odd-numbered

year and include a nonrefundable non-refundable application

fee of $2,000 to be deposited into the Cannabis Regulation Fund

or a fee as may be set by rule.

(r) All persons applying to become or renewing their

registrations to be agents, including agents-in-charge and

principal officers, shall disclose any disciplinary action

taken against them that may have occurred in Illinois, another

state, or another country in relation to their employment at a

cannabis business establishment or at any cannabis cultivation

center, processor, infuser, dispensary, or other cannabis

business establishment.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-55)

Sec. 15-55. Financial responsibility. Evidence of

financial responsibility is a requirement for the issuance,

maintenance, or reactivation of a license under this Article.

Evidence of financial responsibility shall be used to guarantee

that the dispensing organization timely and successfully

completes dispensary construction, operates in a manner that

provides an uninterrupted supply of cannabis, faithfully pays

registration renewal fees, keeps accurate books and records,

makes regularly required reports, complies with State tax

requirements, and conducts the dispensing organization in

conformity with this Act and rules. Evidence of financial

responsibility shall be provided by one of the following:

(1) Establishing and maintaining an escrow or surety

account in a financial institution in the amount of

$50,000, with escrow terms, approved by the Department,

that it shall be payable to the Department in the event of

circumstances outlined in this Act and rules.

(A) A financial institution may not return money in

an escrow or surety account to the dispensing

organization that established the account or a

representative of the organization unless the

organization or representative presents a statement

issued by the Department indicating that the account

may be released.

(B) The escrow or surety account shall not be

canceled on less than 30 days' notice in writing to the

Department, unless otherwise approved by the

Department. If an escrow or surety account is canceled

and the registrant fails to secure a new account with

the required amount on or before the effective date of

cancellation, the registrant's registration may be

permanently revoked. The total and aggregate liability

of the surety on the bond is limited to the amount

specified in the escrow or surety account.

(2) Providing a surety bond in the amount of $50,000,

naming the dispensing organization as principal of the

bond, with terms, approved by the Department, that the bond

defaults to the Department in the event of circumstances

outlined in this Act and rules. Bond terms shall include:

(A) The business name and registration number on

the bond must correspond exactly with the business name

and registration number in the Department's records.

(B) The bond must be written on a form approved by

the Department.

(C) A copy of the bond must be received by the

Department within 90 days after the effective date.

(D) The bond shall not be canceled by a surety on

less than 30 days' notice in writing to the Department.

If a bond is canceled and the registrant fails to file

a new bond with the Department in the required amount

on or before the effective date of cancellation, the

registrant's registration may be permanently revoked.

The total and aggregate liability of the surety on the

bond is limited to the amount specified in the bond.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-65)

Sec. 15-65. Administration.

(a) A dispensing organization shall establish, maintain,

and comply with written policies and procedures as submitted in

the Business, Financial and Operating plan as required in this

Article or by rules established by the Department, and approved

by the Department, for the security, storage, inventory, and

distribution of cannabis. These policies and procedures shall

include methods for identifying, recording, and reporting

diversion, theft, or loss, and for correcting errors and

inaccuracies in inventories. At a minimum, dispensing

organizations shall ensure the written policies and procedures

provide for the following:

(1) Mandatory and voluntary recalls of cannabis

products. The policies shall be adequate to deal with

recalls due to any action initiated at the request of the

Department and any voluntary action by the dispensing

organization to remove defective or potentially defective

cannabis from the market or any action undertaken to

promote public health and safety, including:

(i) A mechanism reasonably calculated to contact

purchasers who have, or likely have, obtained the

product from the dispensary, including information on

the policy for return of the recalled product;

(ii) A mechanism to identify and contact the adult

use cultivation center, craft grower, or infuser that

manufactured the cannabis;

(iii) Policies for communicating with the

Department, the Department of Agriculture, and the

Department of Public Health within 24 hours of

discovering defective or potentially defective

cannabis; and

(iv) Policies for destruction of any recalled

cannabis product;

(2) Responses to local, State, or national

emergencies, including natural disasters, that affect the

security or operation of a dispensary;

(3) Segregation and destruction of outdated, damaged,

deteriorated, misbranded, or adulterated cannabis. This

procedure shall provide for written documentation of the

cannabis disposition;

(4) Ensure the oldest stock of a cannabis product is

distributed first. The procedure may permit deviation from

this requirement, if such deviation is temporary and

appropriate;

(5) Training of dispensing organization agents in the

provisions of this Act and rules, to effectively operate

the point-of-sale system and the State's verification

system, proper inventory handling and tracking, specific

uses of cannabis or cannabis-infused products, instruction

regarding regulatory inspection preparedness and law

enforcement interaction, awareness of the legal

requirements for maintaining status as an agent, and other

topics as specified by the dispensing organization or the

Department. The dispensing organization shall maintain

evidence of all training provided to each agent in its

files that is subject to inspection and audit by the

Department. The dispensing organization shall ensure

agents receive a minimum of 8 hours of training subject to

the requirements in subsection (i) of Section 15-40

annually, unless otherwise approved by the Department;

(6) Maintenance of business records consistent with

industry standards, including bylaws, consents, manual or

computerized records of assets and liabilities, audits,

monetary transactions, journals, ledgers, and supporting

documents, including agreements, checks, invoices,

receipts, and vouchers. Records shall be maintained in a

manner consistent with this Act and shall be retained for 5

years;

(7) Inventory control, including:

(i) Tracking purchases and denials of sale;

(ii) Disposal of unusable or damaged cannabis as

required by this Act and rules; and

(8) Purchaser education and support, including:

(i) Whether possession of cannabis is illegal

under federal law;

(ii) Current educational information issued by the

Department of Public Health about the health risks

associated with the use or abuse of cannabis;

(iii) Information about possible side effects;

(iv) Prohibition on smoking cannabis in public

places; and

(v) Offering any other appropriate purchaser

education or support materials.

(b) Blank.

(c) A dispensing organization shall maintain copies of the

policies and procedures on the dispensary premises and provide

copies to the Department upon request. The dispensing

organization shall review the dispensing organization policies

and procedures at least once every 12 months from the issue

date of the license and update as needed due to changes in

industry standards or as requested by the Department.

(d) A dispensing organization shall ensure that each

principal officer and each dispensing organization agent has a

current agent identification card in the agent's immediate

possession when the agent is at the dispensary.

(e) A dispensing organization shall provide prompt written

notice to the Department, including the date of the event, when

a dispensing organization agent no longer is employed by the

dispensing organization.

(f) A dispensing organization shall promptly document and

report any loss or theft of cannabis from the dispensary to the

Department of State Police and the Department. It is the duty

of any dispensing organization agent who becomes aware of the

loss or theft to report it as provided in this Article.

(g) A dispensing organization shall post the following

information in a conspicuous location in an area of the

dispensary accessible to consumers:

(1) The dispensing organization's license;

(2) The hours of operation.

(h) Signage that shall be posted inside the premises.

(1) All dispensing organizations must display a

placard that states the following: "Cannabis consumption

can impair cognition and driving, is for adult use only,

may be habit forming, and should not be used by pregnant or

breastfeeding women.".

(2) Any dispensing organization that sells edible

cannabis-infused products must display a placard that

states the following:

(A) "Edible cannabis-infused products were

produced in a kitchen that may also process common food

allergens."; and

(B) "The effects of cannabis products can vary from

person to person, and it can take as long as two hours

to feel the effects of some cannabis-infused products.

Carefully review the portion size information and

warnings contained on the product packaging before

consuming.".

(3) All of the required signage in this subsection (h)

shall be no smaller than 24 inches tall by 36 inches wide,

with typed letters no smaller than 2 inches. The signage

shall be clearly visible and readable by customers. The

signage shall be placed in the area where cannabis and

cannabis-infused products are sold and may be translated

into additional languages as needed. The Department may

require a dispensary to display the required signage in a

different language, other than English, if the Secretary

deems it necessary.

(i) A dispensing organization shall prominently post

notices inside the dispensing organization that state

activities that are strictly prohibited and punishable by law,

including, but not limited to:

(1) no minors permitted on the premises unless the

minor is a minor qualifying patient under the Compassionate

Use of Medical Cannabis Pilot Program Act;

(2) distribution to persons under the age of 21 is

prohibited;

(3) transportation of cannabis or cannabis products

across state lines is prohibited.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-70)

Sec. 15-70. Operational requirements; prohibitions.

(a) A dispensing organization shall operate in accordance

with the representations made in its application and license

materials. It shall be in compliance with this Act and rules.

(b) A dispensing organization must include the legal name

of the dispensary on the packaging of any cannabis product it

sells.

(c) All cannabis, cannabis-infused products, and cannabis

seeds must be obtained from an Illinois registered adult use

cultivation center, craft grower, infuser, or another

dispensary.

(d) Dispensing organizations are prohibited from selling

any product containing alcohol except tinctures, which must be

limited to containers that are no larger than 100 milliliters.

(e) A dispensing organization shall inspect and count

product received from a transporting organization, by the adult

use cultivation center, craft grower, infuser organization, or

other dispensing organization before dispensing it.

(f) A dispensing organization may only accept cannabis

deliveries into a restricted access area. Deliveries may not be

accepted through the public or limited access areas unless

otherwise approved by the Department.

(g) A dispensing organization shall maintain compliance

with State and local building, fire, and zoning requirements or

regulations.

(h) A dispensing organization shall submit a list to the

Department of the names of all service professionals that will

work at the dispensary. The list shall include a description of

the type of business or service provided. Changes to the

service professional list shall be promptly provided. No

service professional shall work in the dispensary until the

name is provided to the Department on the service professional

list.

(i) A dispensing organization's license allows for a

dispensary to be operated only at a single location.

(j) A dispensary may operate between 6 a.m. and 10 p.m.

local time.

(k) A dispensing organization must keep all lighting

outside and inside the dispensary in good working order and

wattage sufficient for security cameras.

(l) A dispensing organization must keep all air treatment

systems that will be installed to reduce odors in good working

order.

(m) A dispensing organization must contract with a private

security contractor that is licensed under Section 10-5 of the

Private Detective, Private Alarm, Private Security,

Fingerprint Vendor, and Locksmith Act of 2004 to provide

on-site security at all hours of the dispensary's operation.

(n) (l) A dispensing organization shall ensure that any

building or equipment used by a dispensing organization for the

storage or sale of cannabis is maintained in a clean and

sanitary condition.

(o) (m) The dispensary shall be free from infestation by

insects, rodents, or pests.

(p) (n) A dispensing organization shall not:

(1) Produce or manufacture cannabis;

(2) Accept a cannabis product from an adult use

cultivation center, craft grower, infuser, dispensing

organization, or transporting organization unless it is

pre-packaged and labeled in accordance with this Act and

any rules that may be adopted pursuant to this Act;

(3) Obtain cannabis or cannabis-infused products from

outside the State of Illinois;

(4) Sell cannabis or cannabis-infused products to a

purchaser unless the dispensing dispensary organization is

licensed under the Compassionate Use of Medical Cannabis

Pilot Program Act, and the individual is registered under

the Compassionate Use of Medical Cannabis Pilot Program or

the purchaser has been verified to be over the age of 21

years of age or older;

(5) Enter into an exclusive agreement with any adult

use cultivation center, craft grower, or infuser.

Dispensaries shall provide consumers an assortment of

products from various cannabis business establishment

licensees such that the inventory available for sale at any

dispensary from any single cultivation center, craft

grower, processor, transporter, or infuser entity shall

not be more than 40% of the total inventory available for

sale. For the purpose of this subsection, a cultivation

center, craft grower, processor, or infuser shall be

considered part of the same entity if the licensees share

at least one principal officer. The Department may request

that a dispensary diversify its products as needed or

otherwise discipline a dispensing organization for

violating this requirement;

(6) Refuse to conduct business with an adult use

cultivation center, craft grower, transporting

organization, or infuser that has the ability to properly

deliver the product and is permitted by the Department of

Agriculture, on the same terms as other adult use

cultivation centers, craft growers, infusers, or

transporters with whom it is dealing;

(7) Operate drive-through windows;

(8) Allow for the dispensing of cannabis or

cannabis-infused products in vending machines;

(9) Transport cannabis to residences or other

locations where purchasers may be for delivery;

(10) Enter into agreements to allow persons who are not

dispensing organization agents to deliver cannabis or to

transport cannabis to purchasers; .

(11) Operate a dispensary if its video surveillance

equipment is inoperative;

(12) Operate a dispensary if the point-of-sale

equipment is inoperative;

(13) Operate a dispensary if the State's cannabis

electronic verification system is inoperative;

(14) Have fewer than 2 people working at the dispensary

at any time while the dispensary is open;

(15) Be located within 1,500 feet of the property line

of a pre-existing dispensing organization;

(16) Sell clones or any other live plant material;

(17) Sell cannabis, cannabis concentrate, or

cannabis-infused products in combination or bundled with

each other or any other items for one price, and each item

of cannabis, concentrate, or cannabis-infused product must

be separately identified by quantity and price on the

receipt;

(18) Violate any other requirements or prohibitions

set by Department rules.

(q) (o) It is unlawful for any person having an Early

Approval Adult Use Cannabis Dispensing Organization License, a

Conditional Adult Use Cannabis Dispensing Organization, an

Adult Use Dispensing Organization License, or a medical

cannabis dispensing organization license issued under the

Compassionate Use of Medical Cannabis Pilot Program Act or any

officer, associate, member, representative, or agent of such

licensee to accept, receive, or borrow money or anything else

of value or accept or receive credit (other than merchandising

credit in the ordinary course of business for a period not to

exceed 30 days) directly or indirectly from any adult use

cultivation center, craft grower, infuser, or transporting

organization in exchange for preferential placement on the

dispensing organization's shelves, display cases, or website.

This includes anything received or borrowed or from any

stockholders, officers, agents, or persons connected with an

adult use cultivation center, craft grower, infuser, or

transporting organization. This also excludes any received or

borrowed in exchange for preferential placement by the

dispensing organization, including preferential placement on

the dispensing organization's shelves, display cases, or

website.

(r) (p) It is unlawful for any person having an Early

Approval Adult Use Cannabis Dispensing Organization License, a

Conditional Adult Use Cannabis Dispensing Organization, an

Adult Use Dispensing Organization License, or a medical

cannabis dispensing organization license issued under the

Compassionate Use of Medical Cannabis Pilot Program to enter

into any contract with any person licensed to cultivate,

process, or transport cannabis whereby such dispensing

dispensary organization agrees not to sell any cannabis

cultivated, processed, transported, manufactured, or

distributed by any other cultivator, transporter, or infuser,

and any provision in any contract violative of this Section

shall render the whole of such contract void and no action

shall be brought thereon in any court.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-75)

Sec. 15-75. Inventory control system.

(a) A dispensing organization agent-in-charge shall have

primary oversight of the dispensing organization's cannabis

inventory verification system, and its point-of-sale system.

The inventory point-of-sale system shall be real-time,

web-based, and accessible by the Department at any time. The

point-of-sale system shall track, at a minimum the date of

sale, amount, price, and currency.

(b) A dispensing organization shall establish an account

with the State's verification system that documents:

(1) Each sales transaction at the time of sale and each

day's beginning inventory, acquisitions, sales, disposal,

and ending inventory.

(2) Acquisition of cannabis and cannabis-infused

products from a licensed adult use cultivation center,

craft grower, infuser, or transporter, including:

(i) A description of the products, including the

quantity, strain, variety, and batch number of each

product received;

(ii) The name and registry identification number

of the licensed adult use cultivation center, craft

grower, or infuser providing the cannabis and

cannabis-infused products;

(iii) The name and registry identification number

of the licensed adult use cultivation center, craft

grower, infuser, or transporting transportation agent

delivering the cannabis;

(iv) The name and registry identification number

of the dispensing organization agent receiving the

cannabis; and

(v) The date of acquisition.

(3) The disposal of cannabis, including:

(i) A description of the products, including the

quantity, strain, variety, batch number, and reason

for the cannabis being disposed;

(ii) The method of disposal; and

(iii) The date and time of disposal.

(c) Upon cannabis delivery, a dispensing organization

shall confirm the product's name, strain name, weight, and

identification number on the manifest matches the information

on the cannabis product label and package. The product name

listed and the weight listed in the State's verification system

shall match the product packaging.

(d) The agent-in-charge shall conduct daily inventory

reconciliation documenting and balancing cannabis inventory by

confirming the State's verification system matches the

dispensing organization's point-of-sale system and the amount

of physical product at the dispensary.

(1) A dispensing organization must receive Department

approval before completing an inventory adjustment. It

shall provide a detailed reason for the adjustment.

Inventory adjustment documentation shall be kept at the

dispensary for 2 years from the date performed.

(2) If the dispensing organization identifies an

imbalance in the amount of cannabis after the daily

inventory reconciliation due to mistake, the dispensing

organization shall determine how the imbalance occurred

and immediately upon discovery take and document

corrective action. If the dispensing organization cannot

identify the reason for the mistake within 2 calendar days

after first discovery, it shall inform the Department

immediately in writing of the imbalance and the corrective

action taken to date. The dispensing organization shall

work diligently to determine the reason for the mistake.

(3) If the dispensing organization identifies an

imbalance in the amount of cannabis after the daily

inventory reconciliation or through other means due to

theft, criminal activity, or suspected criminal activity,

the dispensing organization shall immediately determine

how the reduction occurred and take and document corrective

action. Within 24 hours after the first discovery of the

reduction due to theft, criminal activity, or suspected

criminal activity, the dispensing organization shall

inform the Department and the Department of State Police in

writing.

(4) The dispensing organization shall file an annual

compilation report with the Department, including a

financial statement that shall include, but not be limited

to, an income statement, balance sheet, profit and loss

statement, statement of cash flow, wholesale cost and

sales, and any other documentation requested by the

Department in writing. The financial statement shall

include any other information the Department deems

necessary in order to effectively administer this Act and

all rules, orders, and final decisions promulgated under

this Act. Statements required by this Section shall be

filed with the Department within 60 days after the end of

the calendar year. The compilation report shall include a

letter authored by a licensed certified public accountant

that it has been reviewed and is accurate based on the

information provided. The dispensing organization,

financial statement, and accompanying documents are not

required to be audited unless specifically requested by the

Department.

(e) A dispensing organization shall:

(1) Maintain the documentation required in this

Section in a secure locked location at the dispensing

organization for 5 years from the date on the document;

(2) Provide any documentation required to be

maintained in this Section to the Department for review

upon request; and

(3) If maintaining a bank account, retain for a period

of 5 years a record of each deposit or withdrawal from the

account.

(f) If a dispensing organization chooses to have a return

policy for cannabis and cannabis products, the dispensing

organization shall seek prior approval from the Department.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-85)

Sec. 15-85. Dispensing cannabis.

(a) Before a dispensing organization agent dispenses

cannabis to a purchaser, the agent shall:

(1) Verify the age of the purchaser by checking a

government-issued identification card by use of an

electronic reader or electronic scanning device to scan a

purchaser's government-issued identification, if

applicable, to determine the purchaser's age and the

validity of the identification;

(2) Verify the validity of the government-issued

identification card by use of an electronic reader or

electronic scanning device to scan a purchaser's

government-issued identification, if applicable, to

determine the purchaser's age and the validity of the

identification;

(3) Offer any appropriate purchaser education or

support materials;

(4) Enter the following information into the State's

cannabis electronic verification system:

(i) The dispensing organization agent's

identification number;

(ii) The dispensing organization's identification

number;

(iii) The amount, type (including strain, if

applicable) of cannabis or cannabis-infused product

dispensed;

(iv) The date and time the cannabis was dispensed.

(b) A dispensing organization shall refuse to sell cannabis

or cannabis-infused products to any person unless the person

produces a valid identification showing that the person is 21

years of age or older. A medical cannabis dispensing

organization may sell cannabis or cannabis-infused products to

a person who is under 21 years of age if the sale complies with

the provisions of the Compassionate Use of Medical Cannabis

Pilot Program Act and rules.

(c) For the purposes of this Section, valid identification

must:

(1) Be valid and unexpired;

(2) Contain a photograph and the date of birth of the

person.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-95)

Sec. 15-95. Agent-in-charge.

(a) Every dispensing organization shall designate, at a

minimum, one agent-in-charge for each licensed dispensary. The

designated agent-in-charge must hold a dispensing organization

agent identification card. Maintaining an agent-in-charge is a

continuing requirement for the license, except as provided in

subsection (f).

(b) The agent-in-charge shall be a principal officer or a

full-time agent of the dispensing organization and shall manage

the dispensary. Managing the dispensary includes, but is not

limited to, responsibility for opening and closing the

dispensary, delivery acceptance, oversight of sales and

dispensing organization agents, recordkeeping, inventory,

dispensing organization agent training, and compliance with

this Act and rules. Participation in affairs also includes the

responsibility for maintaining all files subject to audit or

inspection by the Department at the dispensary.

(c) The agent-in-charge is responsible for promptly

notifying the Department of any change of information required

to be reported to the Department.

(d) In determining whether an agent-in-charge manages the

dispensary, the Department may consider the responsibilities

identified in this Section, the number of dispensing

organization agents under the supervision of the

agent-in-charge, and the employment relationship between the

agent-in-charge and the dispensing organization, including the

existence of a contract for employment and any other relevant

fact or circumstance.

(e) The agent-in-charge is responsible for notifying the

Department of a change in the employment status of all

dispensing organization agents within 5 business days after the

change, including notice to the Department if the termination

of an agent was for diversion of product or theft of currency.

(f) In the event of the separation of an agent-in-charge

due to death, incapacity, termination, or any other reason and

if the dispensary does not have an active agent-in-charge, the

dispensing organization shall immediately contact the

Department and request a temporary certificate of authority

allowing the continuing operation. The request shall include

the name of an interim agent-in-charge until a replacement is

identified, or shall include the name of the replacement. The

Department shall issue the temporary certificate of authority

promptly after it approves the request. If a dispensing

organization fails to promptly request a temporary certificate

of authority after the separation of the agent-in-charge, its

registration shall cease until the Department approves the

temporary certificate of authority or registers a new

agent-in-charge. No temporary certificate of authority shall

be valid for more than 90 days. The succeeding agent-in-charge

shall register with the Department in compliance with this

Article. Once the permanent succeeding agent-in-charge is

registered with the Department, the temporary certificate of

authority is void. No temporary certificate of authority shall

be issued for the separation of an agent-in-charge due to

disciplinary action by the Department related to his or her

conduct on behalf of the dispensing organization.

(g) The dispensing organization agent-in-charge

registration shall expire one year from the date it is issued.

The agent-in-charge's registration shall be renewed annually.

The Department shall review the dispensing organization's

compliance history when determining whether to grant the

request to renew.

(h) Upon termination of an agent-in-charge's employment,

the dispensing organization shall immediately reclaim the

dispensing agent identification card. The dispensing

organization shall promptly return the identification card to

the Department.

(i) The Department may deny an application or renewal or

discipline or revoke an agent-in-charge identification card

for any of the following reasons:

(1) Submission of misleading, incorrect, false, or

fraudulent information in the application or renewal

application;

(2) Violation of the requirements of this Act or rules;

(3) Fraudulent use of the agent-in-charge

identification card;

(4) Selling, distributing, transferring in any manner,

or giving cannabis to any unauthorized person;

(5) Theft of cannabis, currency, or any other items

from a dispensary; .

(6) Tampering with, falsifying, altering, modifying,

or duplicating an agent-in-charge identification card;

(7) Tampering with, falsifying, altering, or modifying

the surveillance video footage, point-of-sale system, or

the State's verification system;

(8) Failure to notify the Department immediately upon

discovery that the agent-in-charge identification card has

been lost, stolen, or destroyed;

(9) Failure to notify the Department within 5 business

days after a change in the information provided in the

application for an agent-in-charge identification card;

(10) Conviction of a felony offense in accordance with

Sections 2105-131, 2105-135, and 2105-205 of the

Department of Professional Regulation Law of the Civil

Administrative Code of Illinois or any incident listed in

this Act or rules following the issuance of an

agent-in-charge identification card;

(11) Dispensing to purchasers in amounts above the

limits provided in this Act; or

(12) Delinquency in filing any required tax returns or

paying any amounts owed to the State of Illinois.

(Source: P.A. 101-27, eff. 6-25-19; revised 9-4-19.)

(410 ILCS 705/15-100)

Sec. 15-100. Security.

(a) A dispensing organization shall implement security

measures to deter and prevent entry into and theft of cannabis

or currency.

(b) A dispensing organization shall submit any changes to

the floor plan or security plan to the Department for

pre-approval. All cannabis shall be maintained and stored in a

restricted access area during construction.

(c) The dispensing organization shall implement security

measures to protect the premises, purchasers, and dispensing

organization agents including, but not limited to the

following:

(1) Establish a locked door or barrier between the

facility's entrance and the limited access area;

(2) Prevent individuals from remaining on the premises

if they are not engaging in activity permitted by this Act

or rules;

(3) Develop a policy that addresses the maximum

capacity and purchaser flow in the waiting rooms and

limited access areas;

(4) Dispose of cannabis in accordance with this Act and

rules;

(5) During hours of operation, store and dispense all

cannabis from the restricted access area. During

operational hours, cannabis shall be stored in an enclosed

locked room or cabinet and accessible only to specifically

authorized dispensing organization agents;

(6) When the dispensary is closed, store all cannabis

and currency in a reinforced vault room in the restricted

access area and in a manner as to prevent diversion, theft,

or loss;

(7) Keep the reinforced vault room and any other

equipment or cannabis storage areas securely locked and

protected from unauthorized entry;

(8) Keep an electronic daily log of dispensing

organization agents with access to the reinforced vault

room and knowledge of the access code or combination;

(9) Keep all locks and security equipment in good

working order;

(10) Maintain an operational security and alarm system

at all times;

(11) Prohibit keys, if applicable, from being left in

the locks, or stored or placed in a location accessible to

persons other than specifically authorized personnel;

(12) Prohibit accessibility of security measures,

including combination numbers, passwords, or electronic or

biometric security systems to persons other than

specifically authorized dispensing organization agents;

(13) Ensure that the dispensary interior and exterior

premises are sufficiently lit to facilitate surveillance;

(14) Ensure that trees, bushes, and other foliage

outside of the dispensary premises do not allow for a

person or persons to conceal themselves from sight;

(15) Develop emergency policies and procedures for

securing all product and currency following any instance of

diversion, theft, or loss of cannabis, and conduct an

assessment to determine whether additional safeguards are

necessary; and

(16) Develop sufficient additional safeguards in

response to any special security concerns, or as required

by the Department.

(d) The Department may request or approve alternative

security provisions that it determines are an adequate

substitute for a security requirement specified in this

Article. Any additional protections may be considered by the

Department in evaluating overall security measures.

(e) A dispensing dispensary organization may share

premises with a craft grower or an infuser organization, or

both, provided each licensee stores currency and cannabis or

cannabis-infused products in a separate secured vault to which

the other licensee does not have access or all licensees

sharing a vault share more than 50% of the same ownership.

(f) A dispensing organization shall provide additional

security as needed and in a manner appropriate for the

community where it operates.

(g) Restricted access areas.

(1) All restricted access areas must be identified by

the posting of a sign that is a minimum of 12 inches by 12

inches and that states "Do Not Enter - Restricted Access

Area - Authorized Personnel Only" in lettering no smaller

than one inch in height.

(2) All restricted access areas shall be clearly

described in the floor plan of the premises, in the form

and manner determined by the Department, reflecting walls,

partitions, counters, and all areas of entry and exit. The

floor plan shall show all storage, disposal, and retail

sales areas.

(3) All restricted access areas must be secure, with

locking devices that prevent access from the limited access

areas.

(h) Security and alarm.

(1) A dispensing organization shall have an adequate

security plan and security system to prevent and detect

diversion, theft, or loss of cannabis, currency, or

unauthorized intrusion using commercial grade equipment

installed by an Illinois licensed private alarm contractor

or private alarm contractor agency that shall, at a

minimum, include:

(i) A perimeter alarm on all entry points and glass

break protection on perimeter windows;

(ii) Security shatterproof tinted film on exterior

windows;

(iii) A failure notification system that provides

an audible, text, or visual notification of any failure

in the surveillance system, including, but not limited

to, panic buttons, alarms, and video monitoring

system. The failure notification system shall provide

an alert to designated dispensing organization agents

within 5 minutes after the failure, either by telephone

or text message;

(iv) A duress alarm, panic button, and alarm, or

holdup alarm and after-hours intrusion detection alarm

that by design and purpose will directly or indirectly

notify, by the most efficient means, the Public Safety

Answering Point for the law enforcement agency having

primary jurisdiction;

(v) Security equipment to deter and prevent

unauthorized entrance into the dispensary, including

electronic door locks on the limited and restricted

access areas that include devices or a series of

devices to detect unauthorized intrusion that may

include a signal system interconnected with a radio

frequency method, cellular, private radio signals or

other mechanical or electronic device.

(2) All security system equipment and recordings shall

be maintained in good working order, in a secure location

so as to prevent theft, loss, destruction, or alterations.

(3) Access to surveillance monitoring recording

equipment shall be limited to persons who are essential to

surveillance operations, law enforcement authorities

acting within their jurisdiction, security system service

personnel, and the Department. A current list of authorized

dispensing organization agents and service personnel that

have access to the surveillance equipment must be available

to the Department upon request.

(4) All security equipment shall be inspected and

tested at regular intervals, not to exceed one month from

the previous inspection, and tested to ensure the systems

remain functional.

(5) The security system shall provide protection

against theft and diversion that is facilitated or hidden

by tampering with computers or electronic records.

(6) The dispensary shall ensure all access doors are

not solely controlled by an electronic access panel to

ensure that locks are not released during a power outage.

(i) To monitor the dispensary, the dispensing organization

shall incorporate continuous electronic video monitoring

including the following:

(1) All monitors must be 19 inches or greater;

(2) Unobstructed video surveillance of all enclosed

dispensary areas, unless prohibited by law, including all

points of entry and exit that shall be appropriate for the

normal lighting conditions of the area under surveillance.

The cameras shall be directed so all areas are captured,

including, but not limited to, safes, vaults, sales areas,

and areas where cannabis is stored, handled, dispensed, or

destroyed. Cameras shall be angled to allow for facial

recognition, the capture of clear and certain

identification of any person entering or exiting the

dispensary area and in lighting sufficient during all times

of night or day;

(3) Unobstructed video surveillance of outside areas,

the storefront, and the parking lot, that shall be

appropriate for the normal lighting conditions of the area

under surveillance. Cameras shall be angled so as to allow

for the capture of facial recognition, clear and certain

identification of any person entering or exiting the

dispensary and the immediate surrounding area, and license

plates of vehicles in the parking lot;

(4) 24-hour recordings from all video cameras

available for immediate viewing by the Department upon

request. Recordings shall not be destroyed or altered and

shall be retained for at least 90 days. Recordings shall be

retained as long as necessary if the dispensing

organization is aware of the loss or theft of cannabis or a

pending criminal, civil, or administrative investigation

or legal proceeding for which the recording may contain

relevant information;

(5) The ability to immediately produce a clear, color

still photo from the surveillance video, either live or

recorded;

(6) A date and time stamp embedded on all video

surveillance recordings. The date and time shall be

synchronized and set correctly and shall not significantly

obscure the picture;

(7) The ability to remain operational during a power

outage and ensure all access doors are not solely

controlled by an electronic access panel to ensure that

locks are not released during a power outage;

(8) All video surveillance equipment shall allow for

the exporting of still images in an industry standard image

format, including .jpg, .bmp, and .gif. Exported video

shall have the ability to be archived in a proprietary

format that ensures authentication of the video and

guarantees that no alteration of the recorded image has

taken place. Exported video shall also have the ability to

be saved in an industry standard file format that can be

played on a standard computer operating system. All

recordings shall be erased or destroyed before disposal;

(9) The video surveillance system shall be operational

during a power outage with a 4-hour minimum battery backup;

(10) A video camera or cameras recording at each

point-of-sale location allowing for the identification of

the dispensing organization agent distributing the

cannabis and any purchaser. The camera or cameras shall

capture the sale, the individuals and the computer monitors

used for the sale;

(11) A failure notification system that provides an

audible and visual notification of any failure in the

electronic video monitoring system; and

(12) All electronic video surveillance monitoring must

record at least the equivalent of 8 frames per second and

be available as recordings to the Department and the

Department of State Police 24 hours a day via a secure

web-based portal with reverse functionality.

(j) The requirements contained in this Act are minimum

requirements for operating a dispensing organization. The

Department may establish additional requirements by rule.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-145)

Sec. 15-145. Grounds for discipline.

(a) The Department may deny issuance, refuse to renew or

restore, or may reprimand, place on probation, suspend, revoke,

or take other disciplinary or nondisciplinary action against

any license or agent identification card or may impose a fine

for any of the following:

(1) Material misstatement in furnishing information to

the Department;

(2) Violations of this Act or rules;

(3) Obtaining an authorization or license by fraud or

misrepresentation;

(4) A pattern of conduct that demonstrates

incompetence or that the applicant has engaged in conduct

or actions that would constitute grounds for discipline

under this the Act;

(5) Aiding or assisting another person in violating any

provision of this Act or rules;

(6) Failing to respond to a written request for

information by the Department within 30 days;

(7) Engaging in unprofessional, dishonorable, or

unethical conduct of a character likely to deceive,

defraud, or harm the public;

(8) Adverse action by another United States

jurisdiction or foreign nation;

(9) A finding by the Department that the licensee,

after having his or her license placed on suspended or

probationary status, has violated the terms of the

suspension or probation;

(10) Conviction, entry of a plea of guilty, nolo

contendere, or the equivalent in a State or federal court

of a principal officer or agent-in-charge of a felony

offense in accordance with Sections 2105-131, 2105-135,

and 2105-205 of the Department of Professional Regulation

Law of the Civil Administrative Code of Illinois;

(11) Excessive use of or addiction to alcohol,

narcotics, stimulants, or any other chemical agent or drug;

(12) A finding by the Department of a discrepancy in a

Department audit of cannabis;

(13) A finding by the Department of a discrepancy in a

Department audit of capital or funds;

(14) A finding by the Department of acceptance of

cannabis from a source other than an Adult Use Cultivation

Center, craft grower, infuser, or transporting

organization licensed by the Department of Agriculture, or

a dispensing organization licensed by the Department;

(15) An inability to operate using reasonable

judgment, skill, or safety due to physical or mental

illness or other impairment or disability, including,

without limitation, deterioration through the aging

process or loss of motor skills or mental incompetence;

(16) Failing to report to the Department within the

time frames established, or if not identified, 14 days, of

any adverse action taken against the dispensing

organization or an agent by a licensing jurisdiction in any

state or any territory of the United States or any foreign

jurisdiction, any governmental agency, any law enforcement

agency or any court defined in this Section;

(17) Any violation of the dispensing organization's

policies and procedures submitted to the Department

annually as a condition for licensure;

(18) Failure to inform the Department of any change of

address within 10 business days;

(19) Disclosing customer names, personal information,

or protected health information in violation of any State

or federal law;

(20) Operating a dispensary before obtaining a license

from the Department;

(21) Performing duties authorized by this Act prior to

receiving a license to perform such duties;

(22) Dispensing cannabis when prohibited by this Act or

rules;

(23) Any fact or condition that, if it had existed at

the time of the original application for the license, would

have warranted the denial of the license;

(24) Permitting a person without a valid agent

identification card to perform licensed activities under

this Act;

(25) Failure to assign an agent-in-charge as required

by this Article;

(26) Failure to provide the training required by

paragraph (3) of subsection (i) of Section 15-40 within the

provided timeframe;

(27) Personnel insufficient in number or unqualified

in training or experience to properly operate the

dispensary business;

(28) Any pattern of activity that causes a harmful

impact on the community; and

(29) Failing to prevent diversion, theft, or loss of

cannabis.

(b) All fines and fees imposed under this Section shall be

paid within 60 days after the effective date of the order

imposing the fine or as otherwise specified in the order.

(c) A circuit court order establishing that an

agent-in-charge or principal officer holding an agent

identification card is subject to involuntary admission as that

term is defined in Section 1-119 or 1-119.1 of the Mental

Health and Developmental Disabilities Code shall operate as a

suspension of that card.

(Source: P.A. 101-27, eff. 6-25-19; revised 9-4-19.)

(410 ILCS 705/15-155)

Sec. 15-155. Unlicensed practice; violation; civil penalty

Consent to administrative supervision order.

(a) In addition to any other penalty provided by law, any

person who practices, offers to practice, attempts to practice,

or holds oneself out to practice as a licensed dispensing

organization owner, principal officer, agent-in-charge, or

agent without being licensed under this Act shall, in addition

to any other penalty provided by law, pay a civil penalty to

the Department of Financial and Professional Regulation in an

amount not to exceed $10,000 for each offense as determined by

the Department. The civil penalty shall be assessed by the

Department after a hearing is held in accordance with the

provisions set forth in this Act regarding the provision of a

hearing for the discipline of a licensee.

(b) The Department has the authority and power to

investigate any and all unlicensed activity.

(c) The civil penalty shall be paid within 60 days after

the effective date of the order imposing the civil penalty or

in accordance with the order imposing the civil penalty. The

order shall constitute a judgment and may be filed and

execution had thereon in the same manner as any judgment from

any court of this State.

In appropriate cases, the Department may resolve a complaint

against a licensee or agent through the issuance of a consent

order for administrative supervision. A license or agent

subject to a consent order shall be considered by the

Department to hold a license or registration in good standing.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/20-10)

Sec. 20-10. Early Approval of Adult Use Cultivation Center

License.

(a) Any medical cannabis cultivation center registered and

in good standing under the Compassionate Use of Medical

Cannabis Pilot Program Act as of the effective date of this Act

may, within 60 days of the effective date of this Act but no

later than 180 days from the effective date of this Act, apply

to the Department of Agriculture for an Early Approval Adult

Use Cultivation Center License to produce cannabis and

cannabis-infused products at its existing facilities as of the

effective date of this Act.

(b) A medical cannabis cultivation center seeking issuance

of an Early Approval Adult Use Cultivation Center License shall

submit an application on forms provided by the Department of

Agriculture. The application must meet or include the following

qualifications:

(1) Payment of a nonrefundable application fee of

$100,000 to be deposited into the Cannabis Regulation Fund;

(2) Proof of registration as a medical cannabis

cultivation center that is in good standing;

(3) Submission of the application by the same person or

entity that holds the medical cannabis cultivation center

registration;

(4) Certification that the applicant will comply with

the requirements of Section 20-30;

(5) The legal name of the cultivation center;

(6) The physical address of the cultivation center;

(7) The name, address, social security number, and date

of birth of each principal officer and board member of the

cultivation center; each of those individuals shall be at

least 21 years of age;

(8) A nonrefundable Cannabis Business Development Fee

equal to 5% of the cultivation center's total sales between

June 1, 2018 to June 1, 2019 or $750,000, whichever is

less, but at not less than $250,000, to be deposited into

the Cannabis Business Development Fund; and

(9) A commitment to completing one of the following

Social Equity Inclusion Plans provided for in this

subsection (b) before the expiration of the Early Approval

Adult Use Cultivation Center License:

(A) A contribution of 5% of the cultivation

center's total sales from June 1, 2018 to June 1, 2019,

or $100,000, whichever is less, to one of the

following:

(i) the Cannabis Business Development Fund.

This is in addition to the fee required by item (8)

of this subsection (b);

(ii) a cannabis industry training or education

program at an Illinois community college as

defined in the Public Community College Act;

(iii) a program that provides job training

services to persons recently incarcerated or that

operates in a Disproportionately Impacted Area.

(B) Participate as a host in a cannabis business

incubator program for at least one year approved by the

Department of Commerce and Economic Opportunity, and

in which an Early Approval Adult Use Cultivation Center

License holder agrees to provide a loan of at least

$100,000 and mentorship to incubate, for at least a

year, a Social Equity Applicant intending to seek a

license or a licensee that qualifies as a Social Equity

Applicant. As used in this Section, "incubate" means

providing direct financial assistance and training

necessary to engage in licensed cannabis industry

activity similar to that of the host licensee. The

Early Approval Adult Use Cultivation Center License

holder or the same entity holding any other licenses

issued pursuant to this Act shall not take an ownership

stake of greater than 10% in any business receiving

incubation services to comply with this subsection. If

an Early Approval Adult Use Cultivation Center License

holder fails to find a business to incubate to comply

with this subsection before its Early Approval Adult

Use Cultivation Center License expires, it may opt to

meet the requirement of this subsection by completing

another item from this subsection prior to the

expiration of its Early Approval Adult Use Cultivation

Center License to avoid a penalty.

(c) An Early Approval Adult Use Cultivation Center License

is valid until March 31, 2021. A cultivation center that

obtains an Early Approval Adult Use Cultivation Center License

shall receive written or electronic notice 90 days before the

expiration of the license that the license will expire, and

inform the license holder that it may renew its Early Approval

Adult Use Cultivation Center License. The Department of

Agriculture shall grant a renewal of an Early Approval Adult

Use Cultivation Center License within 60 days of submission of

an application if:

(1) the cultivation center submits an application and

the required renewal fee of $100,000 for an Early Approval

Adult Use Cultivation Center License;

(2) the Department of Agriculture has not suspended the

license of the cultivation center or suspended or revoked

the license for violating this Act or rules adopted under

this Act; and

(3) the cultivation center has completed a Social

Equity Inclusion Plan as required by item (9) of subsection

(b) of this Section.

(c-5) The Early Approval Adult Use Cultivation Center

License renewed pursuant to subsection (c) of this Section

shall expire March 31, 2022. The Early Approval Adult Use

Cultivation Center Licensee shall receive written or

electronic notice 90 days before the expiration of the license

that the license will expire, and inform the license holder

that it may apply for an Adult Use Cultivation Center License.

The Department of Agriculture shall grant an Adult Use

Dispensing Organization License within 60 days of an

application being deemed complete if the applicant meets all of

the criteria in Section 20-21.

(d) The license fee required by paragraph (1) of subsection

(c) of this Section shall be in addition to any license fee

required for the renewal of a registered medical cannabis

cultivation center license that expires during the effective

period of the Early Approval Adult Use Cultivation Center

License.

(e) Applicants must submit all required information,

including the requirements in subsection (b) of this Section,

to the Department of Agriculture. Failure by an applicant to

submit all required information may result in the application

being disqualified.

(f) If the Department of Agriculture receives an

application with missing information, the Department may issue

a deficiency notice to the applicant. The applicant shall have

10 calendar days from the date of the deficiency notice to

submit complete information. Applications that are still

incomplete after this opportunity to cure may be disqualified.

(g) If an applicant meets all the requirements of

subsection (b) of this Section, the Department of Agriculture

shall issue the Early Approval Adult Use Cultivation Center

License within 14 days of receiving the application unless:

(1) The licensee; principal officer, board member, or

person having a financial or voting interest of 5% or

greater in the licensee; or agent is delinquent in filing

any required tax returns or paying any amounts owed to the

State of Illinois;

(2) The Director of Agriculture determines there is

reason, based on an inordinate number of documented

compliance violations, the licensee is not entitled to an

Early Approval Adult Use Cultivation Center License; or

(3) The licensee fails to commit to the Social Equity

Inclusion Plan.

(h) A cultivation center may begin producing cannabis and

cannabis-infused products once the Early Approval Adult Use

Cultivation Center License is approved. A cultivation center

that obtains an Early Approval Adult Use Cultivation Center

License may begin selling cannabis and cannabis-infused

products on December 1, 2019.

(i) An Early Approval Adult Use Cultivation Center License

holder must continue to produce and provide an adequate supply

of cannabis and cannabis-infused products for purchase by

qualifying patients and caregivers. For the purposes of this

subsection, "adequate supply" means a monthly production level

that is comparable in type and quantity to those medical

cannabis products produced for patients and caregivers on an

average monthly basis for the 6 months before the effective

date of this Act.

(j) If there is a shortage of cannabis or cannabis-infused

products, a license holder shall prioritize patients

registered under the Compassionate Use of Medical Cannabis

Pilot Program Act over adult use purchasers.

(k) If an Early Approval Adult Use Cultivation Center

licensee fails to submit an application for an Adult Use

Cultivation Center License before the expiration of the Early

Approval Adult Use Cultivation Center License pursuant to

subsection (c-5) of this Section, the cultivation center shall

cease adult use cultivation until it receives an Adult Use

Cultivation Center License.

(l) A cultivation center agent who holds a valid

cultivation center agent identification card issued under the

Compassionate Use of Medical Cannabis Pilot Program Act and is

an officer, director, manager, or employee of the cultivation

center licensed under this Section may engage in all activities

authorized by this Article to be performed by a cultivation

center agent.

(m) If the Department of Agriculture suspends or revokes

the Early Approval Adult Use Cultivation Center License of a

cultivation center that also holds a medical cannabis

cultivation center license issued under the Compassionate Use

of Medical Cannabis Pilot Program Act, the Department of

Agriculture may suspend or revoke the medical cannabis

cultivation center license concurrently with the Early

Approval Adult Use Cultivation Center License.

(n) All fees or fines collected from an Early Approval

Adult Use Cultivation Center License holder as a result of a

disciplinary action in the enforcement of this Act shall be

deposited into the Cannabis Regulation Fund.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/20-15)

Sec. 20-15. Conditional Adult Use Cultivation Center

application.

(a) If the Department of Agriculture makes available

additional cultivation center licenses pursuant to Section

20-5, applicants for a Conditional Adult Use Cultivation Center

License shall electronically submit the following in such form

as the Department of Agriculture may direct:

(1) the nonrefundable application fee set by rule by

the Department of Agriculture, to be deposited into the

Cannabis Regulation Fund;

(2) the legal name of the cultivation center;

(3) the proposed physical address of the cultivation

center;

(4) the name, address, social security number, and date

of birth of each principal officer and board member of the

cultivation center; each principal officer and board

member shall be at least 21 years of age;

(5) the details of any administrative or judicial

proceeding in which any of the principal officers or board

members of the cultivation center (i) pled guilty, were

convicted, were fined, or had a registration or license

suspended or revoked, or (ii) managed or served on the

board of a business or non-profit organization that pled

guilty, was convicted, was fined, or had a registration or

license suspended or revoked;

(6) proposed operating bylaws that include procedures

for the oversight of the cultivation center, including the

development and implementation of a plant monitoring

system, accurate recordkeeping, staffing plan, and

security plan approved by the Department of State Police

that are in accordance with the rules issued by the

Department of Agriculture under this Act. A physical

inventory shall be performed of all plants and cannabis on

a weekly basis by the cultivation center;

(7) verification from the Department of State Police

that all background checks of the prospective principal

officers, board members, and agents of the cannabis

business establishment have been conducted;

(8) a copy of the current local zoning ordinance or

permit and verification that the proposed cultivation

center is in compliance with the local zoning rules and

distance limitations established by the local

jurisdiction;

(9) proposed employment practices, in which the

applicant must demonstrate a plan of action to inform,

hire, and educate minorities, women, veterans, and persons

with disabilities, engage in fair labor practices, and

provide worker protections;

(10) whether an applicant can demonstrate experience

in or business practices that promote economic empowerment

in Disproportionately Impacted Areas;

(11) experience with the cultivation of agricultural

or horticultural products, operating an agriculturally

related business, or operating a horticultural business;

(12) a description of the enclosed, locked facility

where cannabis will be grown, harvested, manufactured,

processed, packaged, or otherwise prepared for

distribution to a dispensing organization;

(13) a survey of the enclosed, locked facility,

including the space used for cultivation;

(14) cultivation, processing, inventory, and packaging

plans;

(15) a description of the applicant's experience with

agricultural cultivation techniques and industry

standards;

(16) a list of any academic degrees, certifications, or

relevant experience of all prospective principal officers,

board members, and agents of the related business;

(17) the identity of every person having a financial or

voting interest of 5% or greater in the cultivation center

operation with respect to which the license is sought,

whether a trust, corporation, partnership, limited

liability company, or sole proprietorship, including the

name and address of each person;

(18) a plan describing how the cultivation center will

address each of the following:

(i) energy needs, including estimates of monthly

electricity and gas usage, to what extent it will

procure energy from a local utility or from on-site

generation, and if it has or will adopt a sustainable

energy use and energy conservation policy;

(ii) water needs, including estimated water draw

and if it has or will adopt a sustainable water use and

water conservation policy; and

(iii) waste management, including if it has or will

adopt a waste reduction policy;

(19) a diversity plan that includes a narrative of not

more than 2,500 words that establishes a goal of diversity

in ownership, management, employment, and contracting to

ensure that diverse participants and groups are afforded

equality of opportunity;

(20) any other information required by rule;

(21) a recycling plan:

(A) Purchaser packaging, including cartridges,

shall be accepted by the applicant and recycled.

(B) Any recyclable waste generated by the cannabis

cultivation facility shall be recycled per applicable

State and local laws, ordinances, and rules.

(C) Any cannabis waste, liquid waste, or hazardous

waste shall be disposed of in accordance with 8 Ill.

Adm. Code 1000.460, except, to the greatest extent

feasible, all cannabis plant waste will be rendered

unusable by grinding and incorporating the cannabis

plant waste with compostable mixed waste to be disposed

of in accordance with 8 Ill. Adm. Code 1000.460(g)(1);

(22) commitment to comply with local waste provisions:

a cultivation facility must remain in compliance with

applicable State and federal environmental requirements,

including, but not limited to:

(A) storing, securing, and managing all

recyclables and waste, including organic waste

composed of or containing finished cannabis and

cannabis products, in accordance with applicable State

and local laws, ordinances, and rules; and

(B) disposing Disposing liquid waste containing

cannabis or byproducts of cannabis processing in

compliance with all applicable State and federal

requirements, including, but not limited to, the

cannabis cultivation facility's permits under Title X

of the Environmental Protection Act; and

(23) a commitment to a technology standard for resource

efficiency of the cultivation center facility.

(A) A cannabis cultivation facility commits to use

resources efficiently, including energy and water. For

the following, a cannabis cultivation facility commits

to meet or exceed the technology standard identified in

items (i), (ii), (iii), and (iv), which may be modified

by rule:

(i) lighting systems, including light bulbs;

(ii) HVAC system;

(iii) water application system to the crop;

and

(iv) filtration system for removing

contaminants from wastewater.

(B) Lighting. The Lighting Power Densities (LPD)

for cultivation space commits to not exceed an average

of 36 watts per gross square foot of active and growing

space canopy, or all installed lighting technology

shall meet a photosynthetic photon efficacy (PPE) of no

less than 2.2 micromoles per joule fixture and shall be

featured on the DesignLights Consortium (DLC)

Horticultural Specification Qualified Products List

(QPL). In the event that DLC requirement for minimum

efficacy exceeds 2.2 micromoles per joule fixture,

that PPE shall become the new standard.

(C) HVAC.

(i) For cannabis grow operations with less

than 6,000 square feet of canopy, the licensee

commits that all HVAC units will be

high-efficiency ductless split HVAC units, or

other more energy efficient equipment.

(ii) For cannabis grow operations with 6,000

square feet of canopy or more, the licensee commits

that all HVAC units will be variable refrigerant

flow HVAC units, or other more energy efficient

equipment.

(D) Water application.

(i) The cannabis cultivation facility commits

to use automated watering systems, including, but

not limited to, drip irrigation and flood tables,

to irrigate cannabis crop.

(ii) The cannabis cultivation facility commits

to measure runoff from watering events and report

this volume in its water usage plan, and that on

average, watering events shall have no more than

20% of runoff of water.

(E) Filtration. The cultivator commits that HVAC

condensate, dehumidification water, excess runoff, and

other wastewater produced by the cannabis cultivation

facility shall be captured and filtered to the best of

the facility's ability to achieve the quality needed to

be reused in subsequent watering rounds.

(F) Reporting energy use and efficiency as

required by rule.

(b) Applicants must submit all required information,

including the information required in Section 20-10, to the

Department of Agriculture. Failure by an applicant to submit

all required information may result in the application being

disqualified.

(c) If the Department of Agriculture receives an

application with missing information, the Department of

Agriculture may issue a deficiency notice to the applicant. The

applicant shall have 10 calendar days from the date of the

deficiency notice to resubmit the incomplete information.

Applications that are still incomplete after this opportunity

to cure will not be scored and will be disqualified.

(e) A cultivation center that is awarded a Conditional

Adult Use Cultivation Center License pursuant to the criteria

in Section 20-20 shall not grow, purchase, possess, or sell

cannabis or cannabis-infused products until the person has

received an Adult Use Cultivation Center License issued by the

Department of Agriculture pursuant to Section 20-21 of this

Act.

(Source: P.A. 101-27, eff. 6-25-19; revised 9-10-19.)

(410 ILCS 705/20-20)

Sec. 20-20. Conditional Adult Use License scoring

applications.

(a) The Department of Agriculture shall by rule develop a

system to score cultivation center applications to

administratively rank applications based on the clarity,

organization, and quality of the applicant's responses to

required information. Applicants shall be awarded points based

on the following categories:

(1) Suitability of the proposed facility;

(2) Suitability of employee training plan;

(3) Security and recordkeeping;

(4) Cultivation plan;

(5) Product safety and labeling plan;

(6) Business plan;

(7) The applicant's status as a Social Equity

Applicant, which shall constitute no less than 20% of total

available points;

(8) Labor and employment practices, which shall

constitute no less than 2% of total available points;

(9) Environmental plan as described in paragraphs

(18), (21), (22), and (23) of subsection (a) of Section

20-15;

(10) The applicant is 51% or more owned and controlled

by an individual or individuals who have been an Illinois

resident for the past 5 years as proved by tax records or 2

of the following: ;

(A) a signed lease agreement that includes the

applicant's name;

(B) a property deed that includes the applicant's

name;

(C) school records;

(D) a voter registration card;

(E) an Illinois driver's license, an Illinois

Identification Card, or an Illinois Person with a

Disability Identification Card;

(F) a paycheck stub;

(G) a utility bill; or

(H) any other proof of residency or other

information necessary to establish residence as

provided by rule;

(11) The applicant is 51% or more controlled and owned

by an individual or individuals who meet the qualifications

of a veteran as defined by Section 45-57 of the Illinois

Procurement Code;

(12) a diversity plan that includes a narrative of not

more than 2,500 words that establishes a goal of diversity

in ownership, management, employment, and contracting to

ensure that diverse participants and groups are afforded

equality of opportunity; and

(13) Any other criteria the Department of Agriculture

may set by rule for points.

(b) The Department may also award bonus points for the

applicant's plan to engage with the community. Bonus points

will only be awarded if the Department receives applications

that receive an equal score for a particular region.

(c) Should the applicant be awarded a cultivation center

license, the information and plans that an applicant provided

in its application, including any plans submitted for the

acquiring of bonus points, becomes a mandatory condition of the

permit. Any variation from or failure to perform such plans may

result in discipline, including the revocation or nonrenewal of

a license.

(d) Should the applicant be awarded a cultivation center

license, it shall pay a fee of $100,000 prior to receiving the

license, to be deposited into the Cannabis Regulation Fund. The

Department of Agriculture may by rule adjust the fee in this

Section after January 1, 2021.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/20-30)

Sec. 20-30. Cultivation center requirements; prohibitions.

(a) The operating documents of a cultivation center shall

include procedures for the oversight of the cultivation center

a cannabis plant monitoring system including a physical

inventory recorded weekly, accurate recordkeeping, and a

staffing plan.

(b) A cultivation center shall implement a security plan

reviewed by the Department of State Police that includes, but

is not limited to: facility access controls, perimeter

intrusion detection systems, personnel identification systems,

24-hour surveillance system to monitor the interior and

exterior of the cultivation center facility and accessibility

to authorized law enforcement, the Department of Public Health

where processing takes place, and the Department of Agriculture

in real time.

(c) All cultivation of cannabis by a cultivation center

must take place in an enclosed, locked facility at the physical

address provided to the Department of Agriculture during the

licensing process. The cultivation center location shall only

be accessed by the agents working for the cultivation center,

the Department of Agriculture staff performing inspections,

the Department of Public Health staff performing inspections,

local and State law enforcement or other emergency personnel,

contractors working on jobs unrelated to cannabis, such as

installing or maintaining security devices or performing

electrical wiring, transporting organization agents as

provided in this Act, individuals in a mentoring or educational

program approved by the State, or other individuals as provided

by rule.

(d) A cultivation center may not sell or distribute any

cannabis or cannabis-infused products to any person other than

a dispensing organization, craft grower, infuser infusing

organization, transporter, or as otherwise authorized by rule.

(e) A cultivation center may not either directly or

indirectly discriminate in price between different dispensing

organizations, craft growers, or infuser organizations that

are purchasing a like grade, strain, brand, and quality of

cannabis or cannabis-infused product. Nothing in this

subsection (e) prevents a cultivation centers from pricing

cannabis differently based on differences in the cost of

manufacturing or processing, the quantities sold, such as

volume discounts, or the way the products are delivered.

(f) All cannabis harvested by a cultivation center and

intended for distribution to a dispensing organization must be

entered into a data collection system, packaged and labeled

under Section 55-21, and placed into a cannabis container for

transport. All cannabis harvested by a cultivation center and

intended for distribution to a craft grower or infuser

organization must be packaged in a labeled cannabis container

and entered into a data collection system before transport.

(g) Cultivation centers are subject to random inspections

by the Department of Agriculture, the Department of Public

Health, local safety or health inspectors, and the Department

of State Police.

(h) A cultivation center agent shall notify local law

enforcement, the Department of State Police, and the Department

of Agriculture within 24 hours of the discovery of any loss or

theft. Notification shall be made by phone or in person, or by

written or electronic communication.

(i) A cultivation center shall comply with all State and

any applicable federal rules and regulations regarding the use

of pesticides on cannabis plants.

(j) No person or entity shall hold any legal, equitable,

ownership, or beneficial interest, directly or indirectly, of

more than 3 cultivation centers licensed under this Article.

Further, no person or entity that is employed by, an agent of,

has a contract to receive payment in any form from a

cultivation center, is a principal officer of a cultivation

center, or entity controlled by or affiliated with a principal

officer of a cultivation shall hold any legal, equitable,

ownership, or beneficial interest, directly or indirectly, in a

cultivation that would result in the person or entity owning or

controlling in combination with any cultivation center,

principal officer of a cultivation center, or entity controlled

or affiliated with a principal officer of a cultivation center

by which he, she, or it is employed, is an agent of, or

participates in the management of, more than 3 cultivation

center licenses.

(k) A cultivation center may not contain more than 210,000

square feet of canopy space for plants in the flowering stage

for cultivation of adult use cannabis as provided in this Act.

(l) A cultivation center may process cannabis, cannabis

concentrates, and cannabis-infused products.

(m) Beginning July 1, 2020, a cultivation center shall not

transport cannabis or cannabis-infused products to a craft

grower, dispensing organization, infuser organization, or

laboratory licensed under this Act, unless it has obtained a

transporting organization license.

(n) It is unlawful for any person having a cultivation

center license or any officer, associate, member,

representative, or agent of such licensee to offer or deliver

money, or anything else of value, directly or indirectly to any

person having an Early Approval Adult Use Dispensing

Organization License, a Conditional Adult Use Dispensing

Organization License, an Adult Use Dispensing Organization

License, or a medical cannabis dispensing organization license

issued under the Compassionate Use of Medical Cannabis Pilot

Program Act, or to any person connected with or in any way

representing, or to any member of the family of, such person

holding an Early Approval Adult Use Dispensing Organization

License, a Conditional Adult Use Dispensing Organization

License, an Adult Use Dispensing Organization License, or a

medical cannabis dispensing organization license issued under

the Compassionate Use of Medical Cannabis Pilot Program Act, or

to any stockholders in any corporation engaged in the retail

sale of cannabis, or to any officer, manager, agent, or

representative of the Early Approval Adult Use Dispensing

Organization License, a Conditional Adult Use Dispensing

Organization License, an Adult Use Dispensing Organization

License, or a medical cannabis dispensing organization license

issued under the Compassionate Use of Medical Cannabis Pilot

Program Act to obtain preferential placement within the

dispensing organization, including, without limitation, on

shelves and in display cases where purchasers can view

products, or on the dispensing organization's website.

(o) A cultivation center must comply with any other

requirements or prohibitions set by administrative rule of the

Department of Agriculture.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/25-1)

(Section scheduled to be repealed on July 1, 2026)

Sec. 25-1. Definitions. In this Article:

"Board" means the Illinois Community College Board.

"Career in Cannabis Certificate" or "Certificate" means

the certification awarded to a community college student who

completes a prescribed course of study in cannabis and cannabis

business industry related classes and curriculum at a community

college awarded a Community College Cannabis Vocational Pilot

Program license.

"Community college" means a public community college

organized under the Public Community College Act.

"Department" means the Department of Agriculture.

"Licensee" means a community college awarded a Community

College Cannabis Vocational Pilot Program license under this

Article.

"Program" means the Community College Cannabis Vocational

Pilot Program.

"Program license" means a Community College Cannabis

Vocational Pilot Program license issued to a community college

under this Article.

(Source: P.A. 101-27, eff. 6-25-19; revised 8-16-19.)

(410 ILCS 705/25-10)

(Section scheduled to be repealed on July 1, 2026)

Sec. 25-10. Issuance of Community College Cannabis

Vocational Pilot Program licenses.

(a) The Department shall issue rules regulating the

selection criteria for applicants by January 1, 2020. The

Department shall make the application for a Program license

available no later than February 1, 2020, and shall require

that applicants submit the completed application no later than

July 1, 2020. If the Department issues fewer than 8 Program

licenses by September 1, 2020, the Department may accept

applications at a future date as prescribed by rule.

(b) The Department shall by rule develop a system to score

Program licenses to administratively rank applications based

on the clarity, organization, and quality of the applicant's

responses to required information. Applicants shall be awarded

points that are based on or that meet the following categories:

(1) Geographic diversity of the applicants;

(2) Experience and credentials of the applicant's

faculty;

(3) At least 5 Program license awardees must have a

student population that is more than 50% low-income in each

of the past 4 years;

(4) Security plan, including a requirement that all

cannabis plants be in an enclosed, locked facility;

(5) Curriculum plan, including processing and testing

curriculum for the Career in Cannabis Certificate;

(6) Career advising and placement plan for

participating students; and

(7) Any other criteria the Department may set by rule.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/30-5)

Sec. 30-5. Issuance of licenses.

(a) The Department of Agriculture shall issue up to 40

craft grower licenses by July 1, 2020. Any person or entity

awarded a license pursuant to this subsection shall only hold

one craft grower license and may not sell that license until

after December 21, 2021.

(b) By December 21, 2021, the Department of Agriculture

shall issue up to 60 additional craft grower licenses. Any

person or entity awarded a license pursuant to this subsection

shall not hold more than 2 craft grower licenses. The person or

entity awarded a license pursuant to this subsection or

subsection (a) of this Section may sell its craft grower

license subject to the restrictions of this Act or as

determined by administrative rule. Prior to issuing such

licenses, the Department may adopt rules through emergency

rulemaking in accordance with subsection (gg) of Section 5-45

of the Illinois Administrative Procedure Act, to modify or

raise the number of craft grower licenses assigned to each

region and modify or change the licensing application process

to reduce or eliminate barriers. The General Assembly finds

that the adoption of rules to regulate cannabis use is deemed

an emergency and necessary for the public interest, safety, and

welfare. In determining whether to exercise the authority

granted by this subsection, the Department of Agriculture must

consider the following factors:

(1) the percentage of cannabis sales occurring in

Illinois not in the regulated market using data from the

Substance Abuse and Mental Health Services Administration,

National Survey on Drug Use and Health, Illinois Behavioral

Risk Factor Surveillance System, and tourism data from the

Illinois Office of Tourism to ascertain total cannabis

consumption in Illinois compared to the amount of sales in

licensed dispensing organizations;

(2) whether there is an adequate supply of cannabis and

cannabis-infused products to serve registered medical

cannabis patients;

(3) whether there is an adequate supply of cannabis and

cannabis-infused products to serve purchasers;

(4) whether there is an oversupply of cannabis in

Illinois leading to trafficking of cannabis to states where

the sale of cannabis is not permitted by law;

(5) population increases or shifts;

(6) the density of craft growers in any area of the

State;

(7) perceived security risks of increasing the number

or location of craft growers;

(8) the past safety record of craft growers;

(9) the Department of Agriculture's capacity to

appropriately regulate additional licensees;

(10) the findings and recommendations from the

disparity and availability study commissioned by the

Illinois Cannabis Regulation Oversight Officer to reduce

or eliminate any identified barriers to entry in the

cannabis industry; and

(11) any other criteria the Department of Agriculture

deems relevant.

(c) After January 1, 2022, the Department of Agriculture

may by rule modify or raise the number of craft grower licenses

assigned to each region, and modify or change the licensing

application process to reduce or eliminate barriers based on

the criteria in subsection (b). At no time may the number of

craft grower licenses exceed 150. Any person or entity awarded

a license pursuant to this subsection shall not hold more than

3 craft grower licenses. A person or entity awarded a license

pursuant to this subsection or subsection (a) or subsection (b)

of this Section may sell its craft grower license or licenses

subject to the restrictions of this Act or as determined by

administrative rule.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/30-10)

Sec. 30-10. Application.

(a) When applying for a license, the applicant shall

electronically submit the following in such form as the

Department of Agriculture may direct:

(1) the nonrefundable application fee of $5,000 to be

deposited into the Cannabis Regulation Fund, or another

amount as the Department of Agriculture may set by rule

after January 1, 2021;

(2) the legal name of the craft grower;

(3) the proposed physical address of the craft grower;

(4) the name, address, social security number, and date

of birth of each principal officer and board member of the

craft grower; each principal officer and board member shall

be at least 21 years of age;

(5) the details of any administrative or judicial

proceeding in which any of the principal officers or board

members of the craft grower (i) pled guilty, were

convicted, were fined, or had a registration or license

suspended or revoked or (ii) managed or served on the board

of a business or non-profit organization that pled guilty,

was convicted, was fined, or had a registration or license

suspended or revoked;

(6) proposed operating bylaws that include procedures

for the oversight of the craft grower, including the

development and implementation of a plant monitoring

system, accurate recordkeeping, staffing plan, and

security plan approved by the Department of State Police

that are in accordance with the rules issued by the

Department of Agriculture under this Act; a physical

inventory shall be performed of all plants and on a weekly

basis by the craft grower;

(7) verification from the Department of State Police

that all background checks of the prospective principal

officers, board members, and agents of the cannabis

business establishment have been conducted;

(8) a copy of the current local zoning ordinance or

permit and verification that the proposed craft grower is

in compliance with the local zoning rules and distance

limitations established by the local jurisdiction;

(9) proposed employment practices, in which the

applicant must demonstrate a plan of action to inform,

hire, and educate minorities, women, veterans, and persons

with disabilities, engage in fair labor practices, and

provide worker protections;

(10) whether an applicant can demonstrate experience

in or business practices that promote economic empowerment

in Disproportionately Impacted Areas;

(11) experience with the cultivation of agricultural

or horticultural products, operating an agriculturally

related business, or operating a horticultural business;

(12) a description of the enclosed, locked facility

where cannabis will be grown, harvested, manufactured,

packaged, or otherwise prepared for distribution to a

dispensing organization or other cannabis business

establishment;

(13) a survey of the enclosed, locked facility,

including the space used for cultivation;

(14) cultivation, processing, inventory, and packaging

plans;

(15) a description of the applicant's experience with

agricultural cultivation techniques and industry

standards;

(16) a list of any academic degrees, certifications, or

relevant experience of all prospective principal officers,

board members, and agents of the related business;

(17) the identity of every person having a financial or

voting interest of 5% or greater in the craft grower

operation, whether a trust, corporation, partnership,

limited liability company, or sole proprietorship,

including the name and address of each person;

(18) a plan describing how the craft grower will

address each of the following:

(i) energy needs, including estimates of monthly

electricity and gas usage, to what extent it will

procure energy from a local utility or from on-site

generation, and if it has or will adopt a sustainable

energy use and energy conservation policy;

(ii) water needs, including estimated water draw

and if it has or will adopt a sustainable water use and

water conservation policy; and

(iii) waste management, including if it has or will

adopt a waste reduction policy;

(19) a recycling plan:

(A) Purchaser packaging, including cartridges,

shall be accepted by the applicant and recycled.

(B) Any recyclable waste generated by the craft

grower facility shall be recycled per applicable State

and local laws, ordinances, and rules.

(C) Any cannabis waste, liquid waste, or hazardous

waste shall be disposed of in accordance with 8 Ill.

Adm. Code 1000.460, except, to the greatest extent

feasible, all cannabis plant waste will be rendered

unusable by grinding and incorporating the cannabis

plant waste with compostable mixed waste to be disposed

of in accordance with 8 Ill. Adm. Code 1000.460(g)(1); .

(20) a commitment to comply with local waste

provisions: a craft grower facility must remain in

compliance with applicable State and federal environmental

requirements, including, but not limited to:

(A) storing, securing, and managing all

recyclables and waste, including organic waste

composed of or containing finished cannabis and

cannabis products, in accordance with applicable State

and local laws, ordinances, and rules; and

(B) disposing Disposing liquid waste containing

cannabis or byproducts of cannabis processing in

compliance with all applicable State and federal

requirements, including, but not limited to, the

cannabis cultivation facility's permits under Title X

of the Environmental Protection Act; .

(21) a commitment to a technology standard for resource

efficiency of the craft grower facility.

(A) A craft grower facility commits to use

resources efficiently, including energy and water. For

the following, a cannabis cultivation facility commits

to meet or exceed the technology standard identified in

paragraphs (i), (ii), (iii), and (iv), which may be

modified by rule:

(i) lighting systems, including light bulbs;

(ii) HVAC system;

(iii) water application system to the crop;

and

(iv) filtration system for removing

contaminants from wastewater.

(B) Lighting. The Lighting Power Densities (LPD)

for cultivation space commits to not exceed an average

of 36 watts per gross square foot of active and growing

space canopy, or all installed lighting technology

shall meet a photosynthetic photon efficacy (PPE) of no

less than 2.2 micromoles per joule fixture and shall be

featured on the DesignLights Consortium (DLC)

Horticultural Specification Qualified Products List

(QPL). In the event that DLC requirement for minimum

efficacy exceeds 2.2 micromoles per joule fixture,

that PPE shall become the new standard.

(C) HVAC.

(i) For cannabis grow operations with less

than 6,000 square feet of canopy, the licensee

commits that all HVAC units will be

high-efficiency ductless split HVAC units, or

other more energy efficient equipment.

(ii) For cannabis grow operations with 6,000

square feet of canopy or more, the licensee commits

that all HVAC units will be variable refrigerant

flow HVAC units, or other more energy efficient

equipment.

(D) Water application.

(i) The craft grower facility commits to use

automated watering systems, including, but not

limited to, drip irrigation and flood tables, to

irrigate cannabis crop.

(ii) The craft grower facility commits to

measure runoff from watering events and report

this volume in its water usage plan, and that on

average, watering events shall have no more than

20% of runoff of water.

(E) Filtration. The craft grower commits that HVAC

condensate, dehumidification water, excess runoff, and

other wastewater produced by the craft grower facility

shall be captured and filtered to the best of the

facility's ability to achieve the quality needed to be

reused in subsequent watering rounds.

(F) Reporting energy use and efficiency as

required by rule; and

(22) any other information required by rule.

(b) Applicants must submit all required information,

including the information required in Section 30-15, to the

Department of Agriculture. Failure by an applicant to submit

all required information may result in the application being

disqualified.

(c) If the Department of Agriculture receives an

application with missing information, the Department of

Agriculture may issue a deficiency notice to the applicant. The

applicant shall have 10 calendar days from the date of the

deficiency notice to resubmit the incomplete information.

Applications that are still incomplete after this opportunity

to cure will not be scored and will be disqualified.

(Source: P.A. 101-27, eff. 6-25-19; revised 9-4-19.)

(410 ILCS 705/30-15)

Sec. 30-15. Scoring applications.

(a) The Department of Agriculture shall by rule develop a

system to score craft grower applications to administratively

rank applications based on the clarity, organization, and

quality of the applicant's responses to required information.

Applicants shall be awarded points based on the following

categories:

(1) Suitability of the proposed facility;

(2) Suitability of the employee training plan;

(3) Security and recordkeeping;

(4) Cultivation plan;

(5) Product safety and labeling plan;

(6) Business plan;

(7) The applicant's status as a Social Equity

Applicant, which shall constitute no less than 20% of total

available points;

(8) Labor and employment practices, which shall

constitute no less than 2% of total available points;

(9) Environmental plan as described in paragraphs

(18), (19), (20), and (21) of subsection (a) of Section

30-10;

(10) The applicant is 51% or more owned and controlled

by an individual or individuals who have been an Illinois

resident for the past 5 years as proved by tax records or 2

of the following: ;

(A) a signed lease agreement that includes the

applicant's name;

(B) a property deed that includes the applicant's

name;

(C) school records;

(D) a voter registration card;

(E) an Illinois driver's license, an Illinois

Identification Card, or an Illinois Person with a

Disability Identification Card;

(F) a paycheck stub;

(G) a utility bill; or

(H) any other proof of residency or other

information necessary to establish residence as

provided by rule;

(11) The applicant is 51% or more controlled and owned

by an individual or individuals who meet the qualifications

of a veteran as defined in Section 45-57 of the Illinois

Procurement Code;

(12) A diversity plan that includes a narrative of not

more than 2,500 words that establishes a goal of diversity

in ownership, management, employment, and contracting to

ensure that diverse participants and groups are afforded

equality of opportunity; and

(13) Any other criteria the Department of Agriculture

may set by rule for points.

(b) The Department may also award up to 2 bonus points for

the applicant's plan to engage with the community. The

applicant may demonstrate a desire to engage with its community

by participating in one or more of, but not limited to, the

following actions: (i) establishment of an incubator program

designed to increase participation in the cannabis industry by

persons who would qualify as Social Equity Applicants; (ii)

providing financial assistance to substance abuse treatment

centers; (iii) educating children and teens about the potential

harms of cannabis use; or (iv) other measures demonstrating a

commitment to the applicant's community. Bonus points will only

be awarded if the Department receives applications that receive

an equal score for a particular region.

(c) Should the applicant be awarded a craft grower license,

the information and plans that an applicant provided in its

application, including any plans submitted for the acquiring of

bonus points, shall be a mandatory condition of the license.

Any variation from or failure to perform such plans may result

in discipline, including the revocation or nonrenewal of a

license.

(d) Should the applicant be awarded a craft grower license,

the applicant shall pay a prorated fee of $40,000 prior to

receiving the license, to be deposited into the Cannabis

Regulation Fund. The Department of Agriculture may by rule

adjust the fee in this Section after January 1, 2021.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/30-30)

Sec. 30-30. Craft grower requirements; prohibitions.

(a) The operating documents of a craft grower shall include

procedures for the oversight of the craft grower, a cannabis

plant monitoring system including a physical inventory

recorded weekly, accurate recordkeeping, and a staffing plan.

(b) A craft grower shall implement a security plan reviewed

by the Department of State Police that includes, but is not

limited to: facility access controls, perimeter intrusion

detection systems, personnel identification systems, and a

24-hour surveillance system to monitor the interior and

exterior of the craft grower facility and that is accessible to

authorized law enforcement and the Department of Agriculture in

real time.

(c) All cultivation of cannabis by a craft grower must take

place in an enclosed, locked facility at the physical address

provided to the Department of Agriculture during the licensing

process. The craft grower location shall only be accessed by

the agents working for the craft grower, the Department of

Agriculture staff performing inspections, the Department of

Public Health staff performing inspections, State and local law

enforcement or other emergency personnel, contractors working

on jobs unrelated to cannabis, such as installing or

maintaining security devices or performing electrical wiring,

transporting organization agents as provided in this Act, or

participants in the incubator program, individuals in a

mentoring or educational program approved by the State, or

other individuals as provided by rule. However, if a craft

grower shares a premises with an infuser or dispensing

organization, agents from those other licensees may access the

craft grower portion of the premises if that is the location of

common bathrooms, lunchrooms, locker rooms, or other areas of

the building where work or cultivation of cannabis is not

performed. At no time may an infuser or dispensing organization

agent perform work at a craft grower without being a registered

agent of the craft grower.

(d) A craft grower may not sell or distribute any cannabis

to any person other than a cultivation center, a craft grower,

an infuser organization, a dispensing organization, or as

otherwise authorized by rule.

(e) A craft grower may not be located in an area zoned for

residential use.

(f) A craft grower may not either directly or indirectly

discriminate in price between different cannabis business

establishments that are purchasing a like grade, strain, brand,

and quality of cannabis or cannabis-infused product. Nothing in

this subsection (f) prevents a craft grower from pricing

cannabis differently based on differences in the cost of

manufacturing or processing, the quantities sold, such as

volume discounts, or the way the products are delivered.

(g) All cannabis harvested by a craft grower and intended

for distribution to a dispensing organization must be entered

into a data collection system, packaged and labeled under

Section 55-21, and, if distribution is to a dispensing

organization that does not share a premises with the dispensing

organization receiving the cannabis, placed into a cannabis

container for transport. All cannabis harvested by a craft

grower and intended for distribution to a cultivation center,

to an infuser organization, or to a craft grower with which it

does not share a premises, must be packaged in a labeled

cannabis container and entered into a data collection system

before transport.

(h) Craft growers are subject to random inspections by the

Department of Agriculture, local safety or health inspectors,

and the Department of State Police.

(i) A craft grower agent shall notify local law

enforcement, the Department of State Police, and the Department

of Agriculture within 24 hours of the discovery of any loss or

theft. Notification shall be made by phone, in person, or

written or electronic communication.

(j) A craft grower shall comply with all State and any

applicable federal rules and regulations regarding the use of

pesticides.

(k) A craft grower or craft grower agent shall not

transport cannabis or cannabis-infused products to any other

cannabis business establishment without a transport

organization license unless:

(i) If the craft grower is located in a county with a

population of 3,000,000 or more, the cannabis business

establishment receiving the cannabis is within 2,000 feet

of the property line of the craft grower;

(ii) If the craft grower is located in a county with a

population of more than 700,000 but fewer than 3,000,000,

the cannabis business establishment receiving the cannabis

is within 2 miles of the craft grower; or

(iii) If the craft grower is located in a county with a

population of fewer than the 700,000, the cannabis business

establishment receiving the cannabis is within 15 miles of

the craft grower.

(l) A craft grower may enter into a contract with a

transporting organization to transport cannabis to a

cultivation center, a craft grower, an infuser organization, a

dispensing organization, or a laboratory.

(m) No person or entity shall hold any legal, equitable,

ownership, or beneficial interest, directly or indirectly, of

more than 3 craft grower licenses. Further, no person or entity

that is employed by, an agent of, or has a contract to receive

payment from or participate in the management of a craft

grower, is a principal officer of a craft grower, or entity

controlled by or affiliated with a principal officer of a craft

grower shall hold any legal, equitable, ownership, or

beneficial interest, directly or indirectly, in a craft grower

license that would result in the person or entity owning or

controlling in combination with any craft grower, principal

officer of a craft grower, or entity controlled or affiliated

with a principal officer of a craft grower by which he, she, or

it is employed, is an agent of, or participates in the

management of more than 3 craft grower licenses.

(n) It is unlawful for any person having a craft grower

license or any officer, associate, member, representative, or

agent of the licensee to offer or deliver money, or anything

else of value, directly or indirectly, to any person having an

Early Approval Adult Use Dispensing Organization License, a

Conditional Adult Use Dispensing Organization License, an

Adult Use Dispensing Organization License, or a medical

cannabis dispensing organization license issued under the

Compassionate Use of Medical Cannabis Pilot Program Act, or to

any person connected with or in any way representing, or to any

member of the family of, the person holding an Early Approval

Adult Use Dispensing Organization License, a Conditional Adult

Use Dispensing Organization License, an Adult Use Dispensing

Organization License, or a medical cannabis dispensing

organization license issued under the Compassionate Use of

Medical Cannabis Pilot Program Act, or to any stockholders in

any corporation engaged in the retail sale of cannabis, or to

any officer, manager, agent, or representative of the Early

Approval Adult Use Dispensing Organization License, a

Conditional Adult Use Dispensing Organization License, an

Adult Use Dispensing Organization License, or a medical

cannabis dispensing organization license issued under the

Compassionate Use of Medical Cannabis Pilot Program Act to

obtain preferential placement within the dispensing

organization, including, without limitation, on shelves and in

display cases where purchasers can view products, or on the

dispensing organization's website.

(o) A craft grower shall not be located within 1,500 feet

of another craft grower or a cultivation center.

(p) A craft graft grower may process cannabis, cannabis

concentrates, and cannabis-infused products.

(q) A craft grower must comply with any other requirements

or prohibitions set by administrative rule of the Department of

Agriculture.

(Source: P.A. 101-27, eff. 6-25-19; revised 9-10-19.)

(410 ILCS 705/35-5)

Sec. 35-5. Issuance of licenses.

(a) The Department of Agriculture shall issue up to 40

infuser licenses through a process provided for in this Article

no later than July 1, 2020.

(b) The Department of Agriculture shall make the

application for infuser licenses available on January 7, 2020,

or if that date falls on a weekend or holiday, the business day

immediately succeeding the weekend or holiday and every January

7 or succeeding business day thereafter, and shall receive such

applications no later than March 15, 2020, or, if that date

falls on a weekend or holiday, the business day immediately

succeeding the weekend or holiday and every March 15 or

succeeding business day thereafter.

(c) By December 21, 2021, the Department of Agriculture may

issue up to 60 additional infuser licenses. Prior to issuing

such licenses, the Department may adopt rules through emergency

rulemaking in accordance with subsection (gg) of Section 5-45

of the Illinois Administrative Procedure Act, to modify or

raise the number of infuser licenses and modify or change the

licensing application process to reduce or eliminate barriers.

The General Assembly finds that the adoption of rules to

regulate cannabis use is deemed an emergency and necessary for

the public interest, safety, and welfare.

In determining whether to exercise the authority granted by

this subsection, the Department of Agriculture must consider

the following factors:

(1) the percentage of cannabis sales occurring in

Illinois not in the regulated market using data from the

Substance Abuse and Mental Health Services Administration,

National Survey on Drug Use and Health, Illinois Behavioral

Risk Factor Surveillance System, and tourism data from the

Illinois Office of Tourism to ascertain total cannabis

consumption in Illinois compared to the amount of sales in

licensed dispensing organizations;

(2) whether there is an adequate supply of cannabis and

cannabis-infused products to serve registered medical

cannabis patients;

(3) whether there is an adequate supply of cannabis and

cannabis-infused products to serve sere purchasers; :

(4) whether there is an oversupply of cannabis in

Illinois leading to trafficking of cannabis to any other

state;

(5) population increases or shifts;

(6) changes to federal law;

(7) perceived security risks of increasing the number

or location of infuser organizations;

(8) the past security records of infuser

organizations;

(9) the Department of Agriculture's capacity to

appropriately regulate additional licenses;

(10) the findings and recommendations from the

disparity and availability study commissioned by the

Illinois Cannabis Regulation Oversight Officer to reduce

or eliminate any identified barriers to entry in the

cannabis industry; and

(11) any other criteria the Department of Agriculture

deems relevant.

(d) After January 1, 2022, the Department of Agriculture

may by rule modify or raise the number of infuser licenses, and

modify or change the licensing application process to reduce or

eliminate barriers based on the criteria in subsection (c).

(Source: P.A. 101-27, eff. 6-25-19; revised 9-10-19.)

(410 ILCS 705/35-15)

Sec. 35-15. Issuing licenses.

(a) The Department of Agriculture shall by rule develop a

system to score infuser applications to administratively rank

applications based on the clarity, organization, and quality of

the applicant's responses to required information. Applicants

shall be awarded points based on the following categories:

(1) Suitability of the proposed facility;

(2) Suitability of the employee training plan;

(3) Security and recordkeeping plan;

(4) Infusing plan;

(5) Product safety and labeling plan;

(6) Business plan;

(7) The applicant's status as a Social Equity

Applicant, which shall constitute no less than 20% of total

available points;

(8) Labor and employment practices, which shall

constitute no less than 2% of total available points;

(9) Environmental plan as described in paragraphs (17)

and (18) of subsection (a) of Section 35-10;

(10) The applicant is 51% or more owned and controlled

by an individual or individuals who have been an Illinois

resident for the past 5 years as proved by tax records or 2

of the following: ;

(A) a signed lease agreement that includes the

applicant's name;

(B) a property deed that includes the applicant's

name;

(C) school records;

(D) a voter registration card;

(E) an Illinois driver's license, an Illinois

Identification Card, or an Illinois Person with a

Disability Identification Card;

(F) a paycheck stub;

(G) a utility bill; or

(H) any other proof of residency or other

information necessary to establish residence as

provided by rule;

(11) The applicant is 51% or more controlled and owned

by an individual or individuals who meet the qualifications

of a veteran as defined by Section 45-57 of the Illinois

Procurement Code; and

(12) A diversity plan that includes a narrative of not

more than 2,500 words that establishes a goal of diversity

in ownership, management, employment, and contracting to

ensure that diverse participants and groups are afforded

equality of opportunity; and

(13) Any other criteria the Department of Agriculture

may set by rule for points.

(b) The Department may also award up to 2 bonus points for

the applicant's plan to engage with the community. The

applicant may demonstrate a desire to engage with its community

by participating in one or more of, but not limited to, the

following actions: (i) establishment of an incubator program

designed to increase participation in the cannabis industry by

persons who would qualify as Social Equity Applicants; (ii)

providing financial assistance to substance abuse treatment

centers; (iii) educating children and teens about the potential

harms of cannabis use; or (iv) other measures demonstrating a

commitment to the applicant's community. Bonus points will only

be awarded if the Department receives applications that receive

an equal score for a particular region.

(c) Should the applicant be awarded an infuser license, the

information and plans that an applicant provided in its

application, including any plans submitted for the acquiring of

bonus points, becomes a mandatory condition of the permit. Any

variation from or failure to perform such plans may result in

discipline, including the revocation or nonrenewal of a

license.

(d) Should the applicant be awarded an infuser organization

license, it shall pay a fee of $5,000 prior to receiving the

license, to be deposited into the Cannabis Regulation Fund. The

Department of Agriculture may by rule adjust the fee in this

Section after January 1, 2021.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/35-25)

Sec. 35-25. Infuser organization requirements;

prohibitions.

(a) The operating documents of an infuser shall include

procedures for the oversight of the infuser, an inventory

monitoring system including a physical inventory recorded

weekly, accurate recordkeeping, and a staffing plan.

(b) An infuser shall implement a security plan reviewed by

the Department of State Police that includes, but is not

limited to: facility access controls, perimeter intrusion

detection systems, personnel identification systems, and a

24-hour surveillance system to monitor the interior and

exterior of the infuser facility and that is accessible to

authorized law enforcement, the Department of Public Health,

and the Department of Agriculture in real time.

(c) All processing of cannabis by an infuser must take

place in an enclosed, locked facility at the physical address

provided to the Department of Agriculture during the licensing

process. The infuser location shall only be accessed by the

agents working for the infuser, the Department of Agriculture

staff performing inspections, the Department of Public Health

staff performing inspections, State and local law enforcement

or other emergency personnel, contractors working on jobs

unrelated to cannabis, such as installing or maintaining

security devices or performing electrical wiring, transporting

organization agents as provided in this Act, participants in

the incubator program, individuals in a mentoring or

educational program approved by the State, local safety or

health inspectors, or other individuals as provided by rule.

However, if an infuser shares a premises with a craft grower or

dispensing organization, agents from these other licensees may

access the infuser portion of the premises if that is the

location of common bathrooms, lunchrooms, locker rooms, or

other areas of the building where processing of cannabis is not

performed. At no time may a craft grower or dispensing

organization agent perform work at an infuser without being a

registered agent of the infuser.

(d) An infuser may not sell or distribute any cannabis to

any person other than a dispensing organization, or as

otherwise authorized by rule.

(e) An infuser may not either directly or indirectly

discriminate in price between different cannabis business

establishments that are purchasing a like grade, strain, brand,

and quality of cannabis or cannabis-infused product. Nothing in

this subsection (e) prevents an infuser from pricing cannabis

differently based on differences in the cost of manufacturing

or processing, the quantities sold, such volume discounts, or

the way the products are delivered.

(f) All cannabis infused by an infuser and intended for

distribution to a dispensing organization must be entered into

a data collection system, packaged and labeled under Section

55-21, and, if distribution is to a dispensing organization

that does not share a premises with the infuser, placed into a

cannabis container for transport. All cannabis produced by an

infuser and intended for distribution to a cultivation center,

infuser organization, or craft grower with which it does not

share a premises, must be packaged in a labeled cannabis

container and entered into a data collection system before

transport.

(g) Infusers are subject to random inspections by the

Department of Agriculture, the Department of Public Health, the

Department of State Police, and local law enforcement.

(h) An infuser agent shall notify local law enforcement,

the Department of State Police, and the Department of

Agriculture within 24 hours of the discovery of any loss or

theft. Notification shall be made by phone, in person, or by

written or electronic communication.

(i) An infuser organization may not be located in an area

zoned for residential use.

(j) An infuser or infuser agent shall not transport

cannabis or cannabis-infused products to any other cannabis

business establishment without a transport organization

license unless:

(i) If the infuser is located in a county with a

population of 3,000,000 or more, the cannabis business

establishment receiving the cannabis or cannabis-infused

product is within 2,000 feet of the property line of the

infuser;

(ii) If the infuser is located in a county with a

population of more than 700,000 but fewer than 3,000,000,

the cannabis business establishment receiving the cannabis

or cannabis-infused product is within 2 miles of the

infuser; or

(iii) If the infuser is located in a county with a

population of fewer than 700,000, the cannabis business

establishment receiving the cannabis or cannabis-infused

product is within 15 miles of the infuser.

(k) An infuser may enter into a contract with a

transporting organization to transport cannabis to a

dispensing organization or a laboratory.

(l) An infuser organization may share premises with a craft

grower or a dispensing organization, or both, provided each

licensee stores currency and cannabis or cannabis-infused

products in a separate secured vault to which the other

licensee does not have access or all licensees sharing a vault

share more than 50% of the same ownership.

(m) It is unlawful for any person or entity having an

infuser organization license or any officer, associate,

member, representative or agent of such licensee to offer or

deliver money, or anything else of value, directly or

indirectly to any person having an Early Approval Adult Use

Dispensing Organization License, a Conditional Adult Use

Dispensing Organization License, an Adult Use Dispensing

Organization License, or a medical cannabis dispensing

organization license issued under the Compassionate Use of

Medical Cannabis Pilot Program Act, or to any person connected

with or in any way representing, or to any member of the family

of, such person holding an Early Approval Adult Use Dispensing

Organization License, a Conditional Adult Use Dispensing

Organization License, an Adult Use Dispensing Organization

License, or a medical cannabis dispensing organization license

issued under the Compassionate Use of Medical Cannabis Pilot

Program Act, or to any stockholders in any corporation engaged

the retail sales of cannabis, or to any officer, manager,

agent, or representative of the Early Approval Adult Use

Dispensing Organization License, a Conditional Adult Use

Dispensing Organization License, an Adult Use Dispensing

Organization License, or a medical cannabis dispensing

organization license issued under the Compassionate Use of

Medical Cannabis Pilot Program Act to obtain preferential

placement within the dispensing organization, including,

without limitation, on shelves and in display cases where

purchasers can view products, or on the dispensing

organization's website.

(n) At no time shall an infuser organization or an infuser

agent perform the extraction of cannabis concentrate from

cannabis flower.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/35-31)

Sec. 35-31. Ensuring an adequate supply of raw materials to

serve infusers.

(a) As used in this Section, "raw materials" includes, but

is not limited to, CO2 hash oil, "crude", "distillate", or any

other cannabis concentrate extracted from cannabis flower by

use of a solvent or a mechanical process.

(b) The Department of Agriculture may by rule design a

method for assessing whether licensed infusers have access to

an adequate supply of reasonably affordable raw materials,

which may include but not be limited to: (i) a survey of

infusers; (ii) a market study on the sales trends of

cannabis-infused products manufactured by infusers; and (iii)

the costs cultivation centers and craft growers assume for the

raw materials they use in any cannabis-infused products they

manufacture.

(c) The Department of Agriculture shall perform an

assessment of whether infusers have access to an adequate

supply of reasonably affordable raw materials that shall start

no sooner than January 1, 2022 and shall conclude no later than

April 1, 2022. The Department of Agriculture may rely on data

from the Illinois Cannabis Regulation Oversight Officer as part

of this assessment.

(d) The Department of Agriculture shall perform an

assessment of whether infusers have access to an adequate

supply of reasonably affordable raw materials that shall start

no sooner than January 1, 2023 and shall conclude no later than

April 1, 2023. The Department of Agriculture may rely on data

from the Cannabis Regulation Oversight Officer as part of this

assessment.

(e) The Department of Agriculture may by rule adopt

measures to ensure infusers have access to an adequate supply

of reasonably affordable raw materials necessary for the

manufacture of cannabis-infused products. Such measures may

include, but not be limited to (i) requiring cultivation

centers and craft growers to set aside a minimum amount of raw

materials for the wholesale market or (ii) enabling infusers to

apply for a processor license to extract raw materials from

cannabis flower.

(f) If the Department of Agriculture determines processor

licenses may be available to infuser infusing organizations

based upon findings made pursuant to subsection (e), infuser

organizations may submit to the Department of Agriculture on

forms provided by the Department of Agriculture the following

information as part of an application to receive a processor

license:

(1) experience with the extraction, processing, or

infusing of oils similar to those derived from cannabis, or

other business practices to be performed by the infuser;

(2) a description of the applicant's experience with

manufacturing equipment and chemicals to be used in

processing;

(3) expertise in relevant scientific fields;

(4) a commitment that any cannabis waste, liquid waste,

or hazardous waste shall be disposed of in accordance with

8 Ill. Adm. Code 1000.460, except, to the greatest extent

feasible, all cannabis plant waste will be rendered

unusable by grinding and incorporating the cannabis plant

waste with compostable mixed waste to be disposed of in

accordance with Ill. Adm. Code 1000.460(g)(1); and

(5) any other information the Department of

Agriculture deems relevant.

(g) The Department of Agriculture may only issue an infuser

infusing organization a processor license if, based on the

information pursuant to subsection (f) and any other criteria

set by the Department of Agriculture, which may include but not

be limited an inspection of the site where processing would

occur, the Department of Agriculture is reasonably certain the

infuser infusing organization will process cannabis in a safe

and compliant manner.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/40-5)

Sec. 40-5. Issuance of licenses.

(a) The Department shall issue transporting licenses

through a process provided for in this Article no later than

July 1, 2020.

(b) The Department shall make the application for

transporting organization licenses available on January 7,

2020 and shall receive such applications no later than March

15, 2020. The Thereafter, the Department of Agriculture shall

make available such applications on every January 7 thereafter

or if that date falls on a weekend or holiday, the business day

immediately succeeding the weekend or holiday and shall receive

such applications no later than March 15 or the succeeding

business day thereafter.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/40-10)

Sec. 40-10. Application.

(a) When applying for a transporting organization license,

the applicant shall electronically submit the following in such

form as the Department of Agriculture may direct:

(1) the nonrefundable application fee of $5,000 or,

after January 1, 2021, another amount as set by rule by the

Department of Agriculture, to be deposited into the

Cannabis Regulation Fund;

(2) the legal name of the transporting organization;

(3) the proposed physical address of the transporting

organization, if one is proposed;

(4) the name, address, social security number, and date

of birth of each principal officer and board member of the

transporting organization; each principal officer and

board member shall be at least 21 years of age;

(5) the details of any administrative or judicial

proceeding in which any of the principal officers or board

members of the transporting organization (i) pled guilty,

were convicted, fined, or had a registration or license

suspended or revoked, or (ii) managed or served on the

board of a business or non-profit organization that pled

guilty, was convicted, fined, or had a registration or

license suspended or revoked;

(6) proposed operating bylaws that include procedures

for the oversight of the transporting organization,

including the development and implementation of an

accurate recordkeeping plan, staffing plan, and security

plan approved by the Department of State Police that are in

accordance with the rules issued by the Department of

Agriculture under this Act; a physical inventory shall be

performed of all cannabis on a weekly basis by the

transporting organization;

(7) verification from the Department of State Police

that all background checks of the prospective principal

officers, board members, and agents of the transporting

organization have been conducted;

(8) a copy of the current local zoning ordinance or

permit and verification that the proposed transporting

organization is in compliance with the local zoning rules

and distance limitations established by the local

jurisdiction, if the transporting organization has a

business address;

(9) proposed employment practices, in which the

applicant must demonstrate a plan of action to inform,

hire, and educate minorities, women, veterans, and persons

with disabilities, engage in fair labor practices, and

provide worker protections;

(10) whether an applicant can demonstrate experience

in or business practices that promote economic empowerment

in Disproportionately Impacted Areas;

(11) the number and type of equipment the transporting

organization will use to transport cannabis and

cannabis-infused products;

(12) loading, transporting, and unloading plans;

(13) a description of the applicant's experience in the

distribution or security business;

(14) the identity of every person having a financial or

voting interest of 5% or more in the transporting

organization with respect to which the license is sought,

whether a trust, corporation, partnership, limited

liability company, or sole proprietorship, including the

name and address of each person; and

(15) any other information required by rule.

(b) Applicants must submit all required information,

including the information required in Section 40-35 to the

Department. Failure by an applicant to submit all required

information may result in the application being disqualified.

(c) If the Department receives an application with missing

information, the Department of Agriculture may issue a

deficiency notice to the applicant. The applicant shall have 10

calendar days from the date of the deficiency notice to

resubmit the incomplete information. Applications that are

still incomplete after this opportunity to cure will not be

scored and will be disqualified.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/40-15)

Sec. 40-15. Issuing licenses.

(a) The Department of Agriculture shall by rule develop a

system to score transporter applications to administratively

rank applications based on the clarity, organization, and

quality of the applicant's responses to required information.

Applicants shall be awarded points based on the following

categories:

(1) suitability of employee training plan;

(2) security and recordkeeping plan;

(3) business plan;

(4) the applicant's status as a Social Equity

Applicant, which shall constitute no less than 20% of total

available points;

(5) labor and employment practices, which shall

constitute no less than 2% of total available points;

(6) environmental plan that demonstrates an

environmental plan of action to minimize the carbon

footprint, environmental impact, and resource needs for

the transporter, which may include, without limitation,

recycling cannabis product packaging;

(7) the applicant is 51% or more owned and controlled

by an individual or individuals who have been an Illinois

resident for the past 5 years as proved by tax records or 2

of the following: ;

(A) a signed lease agreement that includes the

applicant's name;

(B) a property deed that includes the applicant's

name;

(C) school records;

(D) a voter registration card;

(E) an Illinois driver's license, an Illinois

Identification Card, or an Illinois Person with a

Disability Identification Card;

(F) a paycheck stub;

(G) a utility bill; or

(H) any other proof of residency or other

information necessary to establish residence as

provided by rule;

(8) the applicant is 51% or more controlled and owned

by an individual or individuals who meet the qualifications

of a veteran as defined by Section 45-57 of the Illinois

Procurement Code;

(9) a diversity plan that includes a narrative of not

more than 2,500 words that establishes a goal of diversity

in ownership, management, employment, and contracting to

ensure that diverse participants and groups are afforded

equality of opportunity; and

(10) any other criteria the Department of Agriculture

may set by rule for points.

(b) The Department may also award up to 2 bonus points for

the applicant's plan to engage with the community. The

applicant may demonstrate a desire to engage with its community

by participating in one or more of, but not limited to, the

following actions: (i) establishment of an incubator program

designed to increase participation in the cannabis industry by

persons who would qualify as Social Equity Applicants; (ii)

providing financial assistance to substance abuse treatment

centers; (iii) educating children and teens about the potential

harms of cannabis use; or (iv) other measures demonstrating a

commitment to the applicant's community. Bonus points will only

be awarded if the Department receives applications that receive

an equal score for a particular region.

(c) Applicants for transporting transportation

organization licenses that score at least 75% 85% of the

available points according to the system developed by rule and

meet all other requirements for a transporter license shall be

issued a license by the Department of Agriculture within 60

days of receiving the application. Applicants that were

registered as medical cannabis cultivation centers prior to

January 1, 2020 and who meet all other requirements for a

transporter license shall be issued a license by the Department

of Agriculture within 60 days of receiving the application.

(d) Should the applicant be awarded a transporting

transportation organization license, the information and plans

that an applicant provided in its application, including any

plans submitted for the acquiring of bonus points, shall be a

mandatory condition of the permit. Any variation from or

failure to perform such plans may result in discipline,

including the revocation or nonrenewal of a license.

(e) Should the applicant be awarded a transporting

organization license, the applicant shall pay a prorated fee of

$10,000 prior to receiving the license, to be deposited into

the Cannabis Regulation Fund. The Department of Agriculture may

by rule adjust the fee in this Section after January 1, 2021.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/40-20)

Sec. 40-20. Denial of application. An application for a

transporting transportation organization license shall be

denied if any of the following conditions are met:

(1) the applicant failed to submit the materials

required by this Article;

(2) the applicant would not be in compliance with local

zoning rules or permit requirements;

(3) one or more of the prospective principal officers

or board members causes a violation of Section 40-25;

(4) one or more of the principal officers or board

members is under 21 years of age;

(5) the person has submitted an application for a

license under this Act that contains false information; or

(6) the licensee, principal officer, board member, or

person having a financial or voting interest of 5% or

greater in the licensee is delinquent in filing any

required tax returns or paying any amounts owed to the

State of Illinois.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/40-25)

Sec. 40-25. Transporting organization requirements;

prohibitions.

(a) The operating documents of a transporting organization

shall include procedures for the oversight of the transporter,

an inventory monitoring system including a physical inventory

recorded weekly, accurate recordkeeping, and a staffing plan.

(b) A transporting organization may not transport cannabis

or cannabis-infused products to any person other than a

cultivation center, a craft grower, an infuser organization, a

dispensing organization, a testing facility, or as otherwise

authorized by rule.

(c) All cannabis transported by a transporting

organization must be entered into a data collection system and

placed into a cannabis container for transport.

(d) Transporters are subject to random inspections by the

Department of Agriculture, the Department of Public Health, and

the Department of State Police.

(e) A transporting organization agent shall notify local

law enforcement, the Department of State Police, and the

Department of Agriculture within 24 hours of the discovery of

any loss or theft. Notification shall be made by phone, in

person, or by written or electronic communication.

(f) No person under the age of 21 years shall be in a

commercial vehicle or trailer transporting cannabis goods.

(g) No person or individual who is not a transporting

organization agent shall be in a vehicle while transporting

cannabis goods.

(h) Transporters may not use commercial motor vehicles with

a weight rating of over 10,001 pounds.

(i) It is unlawful for any person to offer or deliver

money, or anything else of value, directly or indirectly, to

any of the following persons to obtain preferential placement

within the dispensing organization, including, without

limitation, on shelves and in display cases where purchasers

can view products, or on the dispensing organization's website:

(1) a person having a transporting organization

license, or any officer, associate, member,

representative, or agent of the licensee;

(2) a person having an Early Applicant Adult Use

Dispensing Organization License, an Adult Use Dispensing

Organization License, or a medical cannabis dispensing

organization license issued under the Compassionate Use of

Medical Cannabis Pilot Program Act;

(3) a person connected with or in any way representing,

or a member of the family of, a person holding an Early

Applicant Adult Use Dispensing Organization License, an

Adult Use Dispensing Organization License, or a medical

cannabis dispensing organization license issued under the

Compassionate Use of Medical Cannabis Pilot Program Act; or

(4) a stockholder, officer, manager, agent, or

representative of a corporation engaged in the retail sale

of cannabis, an Early Applicant Adult Use Dispensing

Organization License, an Adult Use Dispensing Organization

License, or a medical cannabis dispensing organization

license issued under the Compassionate Use of Medical

Cannabis Pilot Program Act.

(j) A transporting transportation organization agent must

keep his or her identification card visible at all times when

on the property of a cannabis business establishment and during

the transporting transportation of cannabis when acting under

his or her duties as a transportation organization agent.

During these times, the transporting transporter organization

agent must also provide the identification card upon request of

any law enforcement officer engaged in his or her official

duties.

(k) A copy of the transporting organization's registration

and a manifest for the delivery shall be present in any vehicle

transporting cannabis.

(l) Cannabis shall be transported so it is not visible or

recognizable from outside the vehicle.

(m) A vehicle transporting cannabis must not bear any

markings to indicate the vehicle contains cannabis or bear the

name or logo of the cannabis business establishment.

(n) Cannabis must be transported in an enclosed, locked

storage compartment that is secured or affixed to the vehicle.

(o) The Department of Agriculture may, by rule, impose any

other requirements or prohibitions on the transportation of

cannabis.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/40-30)

Sec. 40-30. Transporting agent identification card.

(a) The Department of Agriculture shall:

(1) establish by rule the information required in an

initial application or renewal application for an agent

identification card submitted under this Act and the

nonrefundable fee to accompany the initial application or

renewal application;

(2) verify the information contained in an initial

application or renewal application for an agent

identification card submitted under this Act and approve or

deny an application within 30 days of receiving a completed

initial application or renewal application and all

supporting documentation required by rule;

(3) issue an agent identification card to a qualifying

agent within 15 business days of approving the initial

application or renewal application;

(4) enter the license number of the transporting

organization where the agent works; and

(5) allow for an electronic initial application and

renewal application process, and provide a confirmation by

electronic or other methods that an application has been

submitted. The Department of Agriculture may by rule

require prospective agents to file their applications by

electronic means and provide notices to the agents by

electronic means.

(b) An agent must keep his or her identification card

visible at all times when on the property of a cannabis

business establishment, including the cannabis business

establishment for which he or she is an agent.

(c) The agent identification cards shall contain the

following:

(1) the name of the cardholder;

(2) the date of issuance and expiration date of the

identification card;

(3) a random 10-digit alphanumeric identification

number containing at least 4 numbers and at least 4 letters

that is unique to the holder;

(4) a photograph of the cardholder; and

(5) the legal name of the transporting transporter

organization employing the agent.

(d) An agent identification card shall be immediately

returned to the transporting transporter organization of the

agent upon termination of his or her employment.

(e) Any agent identification card lost by a transporting

agent shall be reported to the Department of State Police and

the Department of Agriculture immediately upon discovery of the

loss.

(f) An application for an agent identification card shall

be denied if the applicant is delinquent in filing any required

tax returns or paying any amounts owed to the State of

Illinois.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/40-35)

Sec. 40-35. Transporting organization background checks.

(a) Through the Department of State Police, the Department

of Agriculture shall conduct a background check of the

prospective principal officers, board members, and agents of a

transporter applying for a license or identification card under

this Act. The Department of State Police shall charge a fee set

by rule for conducting the criminal history record check, which

shall be deposited into the State Police Services Fund and

shall not exceed the actual cost of the record check. In order

to carry out this provision, each transporting transporter

organization's prospective principal officer, board member, or

agent shall submit a full set of fingerprints to the Department

of State Police for the purpose of obtaining a State and

federal criminal records check. These fingerprints shall be

checked against the fingerprint records now and hereafter, to

the extent allowed by law, filed in the Department of State

Police and Federal Bureau of Investigation criminal history

records databases. The Department of State Police shall

furnish, following positive identification, all conviction

information to the Department of Agriculture.

(b) When applying for the initial license or identification

card, the background checks for all prospective principal

officers, board members, and agents shall be completed before

submitting the application to the Department of Agriculture.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/40-40)

Sec. 40-40. Renewal of transporting organization licenses

and agent identification cards.

(a) Licenses and identification cards issued under this Act

shall be renewed annually. A transporting organization shall

receive written or electronic notice 90 days before the

expiration of its current license that the license will expire.

The Department of Agriculture shall grant a renewal within 45

days of submission of a renewal application if:

(1) the transporting organization submits a renewal

application and the required nonrefundable renewal fee of

$10,000, or after January 1, 2021, another amount set by

rule by the Department of Agriculture, to be deposited into

the Cannabis Regulation Fund;

(2) the Department of Agriculture has not suspended or

revoked the license of the transporting organization for

violating this Act or rules adopted under this Act;

(3) the transporting organization has continued to

operate in accordance with all plans submitted as part of

its application and approved by the Department of

Agriculture or any amendments thereto that have been

approved by the Department of Agriculture; and

(4) the transporter has submitted an agent, employee,

contracting, and subcontracting diversity report as

required by the Department.

(b) If a transporting organization fails to renew its

license before expiration, it shall cease operations until its

license is renewed.

(c) If a transporting organization agent fails to renew his

or her identification card before its expiration, he or she

shall cease to work as an agent of the transporting transporter

organization until his or her identification card is renewed.

(d) Any transporting organization that continues to

operate, or any transporting organization agent who continues

to work as an agent, after the applicable license or

identification card has expired without renewal is subject to

the penalties provided under Section 45-5.

(e) The Department shall not renew a license or an agent

identification card if the applicant is delinquent in filing

any required tax returns or paying any amounts owed to the

State of Illinois.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/45-5)

Sec. 45-5. License suspension; revocation; other

penalties.

(a) Notwithstanding any other criminal penalties related

to the unlawful possession of cannabis, the Department of

Financial and Professional Regulation and the Department of

Agriculture may revoke, suspend, place on probation,

reprimand, issue cease and desist orders, refuse to issue or

renew a license, or take any other disciplinary or

nondisciplinary action as each department may deem proper with

regard to a cannabis business establishment or cannabis

business establishment agent, including fines not to exceed:

(1) $50,000 for each violation of this Act or rules

adopted under this Act by a cultivation center or

cultivation center agent;

(2) $20,000 $10,000 for each violation of this Act or

rules adopted under this Act by a dispensing organization

or dispensing organization agent;

(3) $15,000 for each violation of this Act or rules

adopted under this Act by a craft grower or craft grower

agent;

(4) $10,000 for each violation of this Act or rules

adopted under this Act by an infuser organization or

infuser organization agent; and

(5) $10,000 for each violation of this Act or rules

adopted under this Act by a transporting organization or

transporting organization agent.

(b) The Department of Financial and Professional

Regulation and the Department of Agriculture, as the case may

be, shall consider licensee cooperation in any agency or other

investigation in its determination of penalties imposed under

this Section.

(c) The procedures for disciplining a cannabis business

establishment or cannabis business establishment agent and for

administrative hearings shall be determined by rule, and shall

provide for the review of final decisions under the

Administrative Review Law.

(d) The Attorney General may also enforce a violation of

Section 55-20, Section 55-21, and Section 15-155 as an unlawful

practice under the Consumer Fraud and Deceptive Business

Practices Act.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/50-5)

Sec. 50-5. Laboratory testing.

(a) Notwithstanding any other provision of law, the

following acts, when performed by a cannabis testing facility

with a current, valid registration, or a person 21 years of age

or older who is acting in his or her capacity as an owner,

employee, or agent of a cannabis testing facility, are not

unlawful and shall not be an offense under Illinois law or be a

basis for seizure or forfeiture of assets under Illinois law:

(1) possessing, repackaging, transporting, storing, or

displaying cannabis or cannabis-infused products;

(2) receiving or transporting cannabis or

cannabis-infused products from a cannabis business

establishment, a community college licensed under the

Community College Cannabis Vocational Training Pilot

Program, or a person 21 years of age or older; and

(3) returning or transporting cannabis or

cannabis-infused products to a cannabis business

establishment, a community college licensed under the

Community College Cannabis Vocational Training Pilot

Program, or a person 21 years of age or older.

(b)(1) No laboratory shall handle, test, or analyze

cannabis unless approved by the Department of Agriculture in

accordance with this Section.

(2) No laboratory shall be approved to handle, test, or

analyze cannabis unless the laboratory:

(A) is accredited by a private laboratory accrediting

organization;

(B) is independent from all other persons involved in

the cannabis industry in Illinois and no person with a

direct or indirect interest in the laboratory has a direct

or indirect financial, management, or other interest in an

Illinois cultivation center, craft grower, dispensary,

infuser, transporter, certifying physician, or any other

entity in the State that may benefit from the production,

manufacture, dispensing, sale, purchase, or use of

cannabis; and

(C) has employed at least one person to oversee and be

responsible for the laboratory testing who has earned, from

a college or university accredited by a national or

regional certifying authority, at least:

(i) a master's level degree in chemical or

biological sciences and a minimum of 2 years'

post-degree laboratory experience; or

(ii) a bachelor's degree in chemical or biological

sciences and a minimum of 4 years' post-degree

laboratory experience.

(3) Each independent testing laboratory that claims to be

accredited must provide the Department of Agriculture with a

copy of the most recent annual inspection report granting

accreditation and every annual report thereafter.

(c) Immediately before manufacturing or natural processing

of any cannabis or cannabis-infused product or packaging

cannabis for sale to a dispensary, each batch shall be made

available by the cultivation center, craft grower, or infuser

for an employee of an approved laboratory to select a random

sample, which shall be tested by the approved laboratory for:

(1) microbiological contaminants;

(2) mycotoxins;

(3) pesticide active ingredients;

(4) residual solvent; and

(5) an active ingredient analysis.

(d) The Department of Agriculture may select a random

sample that shall, for the purposes of conducting an active

ingredient analysis, be tested by the Department of Agriculture

for verification of label information.

(e) A laboratory shall immediately return or dispose of any

cannabis upon the completion of any testing, use, or research.

If cannabis is disposed of, it shall be done in compliance with

Department of Agriculture rule.

(f) If a sample of cannabis does not pass the

microbiological, mycotoxin, pesticide chemical residue, or

solvent residue test, based on the standards established by the

Department of Agriculture, the following shall apply:

(1) If the sample failed the pesticide chemical residue

test, the entire batch from which the sample was taken

shall, if applicable, be recalled as provided by rule.

(2) If the sample failed any other test, the batch may

be used to make a CO2-based or solvent based extract. After

processing, the CO2-based or solvent based extract must

still pass all required tests.

(g) The Department of Agriculture shall establish

standards for microbial, mycotoxin, pesticide residue, solvent

residue, or other standards for the presence of possible

contaminants, in addition to labeling requirements for

contents and potency.

(h) The laboratory shall file with the Department of

Agriculture an electronic copy of each laboratory test result

for any batch that does not pass the microbiological,

mycotoxin, or pesticide chemical residue test, at the same time

that it transmits those results to the cultivation center. In

addition, the laboratory shall maintain the laboratory test

results for at least 5 years and make them available at the

Department of Agriculture's request.

(i) A cultivation center, craft grower, and infuser shall

provide to a dispensing organization the laboratory test

results for each batch of cannabis product purchased by the

dispensing organization, if sampled. Each dispensing

dispensary organization must have those laboratory results

available upon request to purchasers.

(j) The Department of Agriculture may adopt rules related

to testing in furtherance of this Act.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/55-10)

Sec. 55-10. Maintenance of inventory. All dispensing

organizations authorized to serve both registered qualifying

patients and caregivers and purchasers are required to report

which cannabis and cannabis-infused products are purchased for

sale under the Compassionate Use of Medical Cannabis Pilot

Program Act, and which cannabis and cannabis-infused products

are purchased under this Act. Nothing in this Section prohibits

a registered qualifying patient under the Compassionate Use of

Medical Cannabis Pilot Program Act from purchasing cannabis as

a purchaser under this Act.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/55-20)

Sec. 55-20. Advertising and promotions.

(a) No cannabis business establishment nor any other person

or entity shall engage in advertising that contains any

statement or illustration that:

(1) is false or misleading;

(2) promotes overconsumption of cannabis or cannabis

products;

(3) depicts the actual consumption of cannabis or

cannabis products;

(4) depicts a person under 21 years of age consuming

cannabis;

(5) makes any health, medicinal, or therapeutic claims

about cannabis or cannabis-infused products;

(6) includes the image of a cannabis leaf or bud; or

(7) includes any image designed or likely to appeal to

minors, including cartoons, toys, animals, or children, or

any other likeness to images, characters, or phrases that

is designed in any manner to be appealing to or encourage

consumption by of persons under 21 years of age.

(b) No cannabis business establishment nor any other person

or entity shall place or maintain, or cause to be placed or

maintained, an advertisement of cannabis or a cannabis-infused

product in any form or through any medium:

(1) within 1,000 feet of the perimeter of school

grounds, a playground, a recreation center or facility, a

child care center, a public park or public library, or a

game arcade to which admission is not restricted to persons

21 years of age or older;

(2) on or in a public transit vehicle or public transit

shelter;

(3) on or in publicly owned or publicly operated

property; or

(4) that contains information that:

(A) is false or misleading;

(B) promotes excessive consumption;

(C) depicts a person under 21 years of age

consuming cannabis;

(D) includes the image of a cannabis leaf; or

(E) includes any image designed or likely to appeal

to minors, including cartoons, toys, animals, or

children, or any other likeness to images, characters,

or phrases that are popularly used to advertise to

children, or any imitation of candy packaging or

labeling, or that promotes consumption of cannabis.

(c) Subsections (a) and (b) do not apply to an educational

message.

(d) Sales promotions. No cannabis business establishment

nor any other person or entity may encourage the sale of

cannabis or cannabis products by giving away cannabis or

cannabis products, by conducting games or competitions related

to the consumption of cannabis or cannabis products, or by

providing promotional materials or activities of a manner or

type that would be appealing to children.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/55-21)

Sec. 55-21. Cannabis product packaging and labeling.

(a) Each cannabis product produced for sale shall be

registered with the Department of Agriculture on forms provided

by the Department of Agriculture. Each product registration

shall include a label and the required registration fee at the

rate established by the Department of Agriculture for a

comparable medical cannabis product, or as established by rule.

The registration fee is for the name of the product offered for

sale and one fee shall be sufficient for all package sizes.

(b) All harvested cannabis intended for distribution to a

cannabis enterprise must be packaged in a sealed, labeled

container.

(c) Any product containing cannabis shall be packaged in a

sealed, odor-proof, and child-resistant cannabis container

consistent with current standards, including the Consumer

Product Safety Commission standards referenced by the Poison

Prevention Act.

(d) All cannabis-infused products shall be individually

wrapped or packaged at the original point of preparation. The

packaging of the cannabis-infused product shall conform to the

labeling requirements of the Illinois Food, Drug and Cosmetic

Act, in addition to the other requirements set forth in this

Section.

(e) Each cannabis product shall be labeled before sale and

each label shall be securely affixed to the package and shall

state in legible English and any languages required by the

Department of Agriculture:

(1) the name and post office box of the registered

cultivation center or craft grower where the item was

manufactured;

(2) the common or usual name of the item and the

registered name of the cannabis product that was registered

with the Department of Agriculture under subsection (a);

(3) a unique serial number that will match the product

with a cultivation center or craft grower batch and lot

number to facilitate any warnings or recalls the Department

of Agriculture, cultivation center, or craft grower deems

appropriate;

(4) the date of final testing and packaging, if

sampled, and the identification of the independent testing

laboratory;

(5) the date of harvest and "use by" date;

(6) the quantity (in ounces or grams) of cannabis

contained in the product;

(7) a pass/fail rating based on the laboratory's

microbiological, mycotoxins, and pesticide and solvent

residue analyses, if sampled; .

(8) content list.

(A) A list of the following, including the minimum

and maximum percentage content by weight for

subdivisions (e) (d)(8)(A)(i) through (iv):

(i) delta-9-tetrahydrocannabinol (THC);

(ii) tetrahydrocannabinolic acid (THCA);

(iii) cannabidiol (CBD);

(iv) cannabidiolic acid (CBDA); and

(v) all other ingredients of the item,

including any colors, artificial flavors, and

preservatives, listed in descending order by

predominance of weight shown with common or usual

names.

(B) The acceptable tolerances for the minimum

percentage printed on the label for any of subdivisions

(e) (d)(8)(A)(i) through (iv) shall not be below 85% or

above 115% of the labeled amount. ;

(f) Packaging must not contain information that:

(1) is false or misleading;

(2) promotes excessive consumption;

(3) depicts a person under 21 years of age consuming

cannabis;

(4) includes the image of a cannabis leaf;

(5) includes any image designed or likely to appeal to

minors, including cartoons, toys, animals, or children, or

any other likeness to images, characters, or phrases that

are popularly used to advertise to children, or any

packaging or labeling that bears reasonable resemblance to

any product available for consumption as a commercially

available candy, or that promotes consumption of cannabis;

(6) contains any seal, flag, crest, coat of arms, or

other insignia likely to mislead the purchaser to believe

that the product has been endorsed, made, or used by the

State of Illinois or any of its representatives except

where authorized by this Act.

(g) Cannabis products produced by concentrating or

extracting ingredients from the cannabis plant shall contain

the following information, where applicable:

(1) If solvents were used to create the concentrate or

extract, a statement that discloses the type of extraction

method, including any solvents or gases used to create the

concentrate or extract; and

(2) Any other chemicals or compounds used to produce or

were added to the concentrate or extract.

(h) All cannabis products must contain warning statements

established for purchasers, of a size that is legible and

readily visible to a consumer inspecting a package, which may

not be covered or obscured in any way. The Department of Public

Health shall define and update appropriate health warnings for

packages including specific labeling or warning requirements

for specific cannabis products.

(i) Unless modified by rule to strengthen or respond to new

evidence and science, the following warnings shall apply to all

cannabis products unless modified by rule: "This product

contains cannabis and is intended for use by adults 21 and

over. Its use can impair cognition and may be habit forming.

This product should not be used by pregnant or breastfeeding

women. It is unlawful to sell or provide this item to any

individual, and it may not be transported outside the State of

Illinois. It is illegal to operate a motor vehicle while under

the influence of cannabis. Possession or use of this product

may carry significant legal penalties in some jurisdictions and

under federal law.".

(j) Warnings for each of the following product types must

be present on labels when offered for sale to a purchaser:

(1) Cannabis that may be smoked must contain a

statement that "Smoking is hazardous to your health.".

(2) Cannabis-infused products (other than those

intended for topical application) must contain a statement

"CAUTION: This product contains cannabis, and intoxication

following use may be delayed 2 or more hours. This product

was produced in a facility that cultivates cannabis, and

that may also process common food allergens.".

(3) Cannabis-infused products intended for topical

application must contain a statement "DO NOT EAT" in bold,

capital letters.

(k) Each cannabis-infused product intended for consumption

must be individually packaged, must include the total milligram

content of THC and CBD, and may not include more than a total

of 100 milligrams of THC per package. A package may contain

multiple servings of 10 milligrams of THC, and indicated by

scoring, wrapping, or by other indicators designating

individual serving sizes. The Department of Agriculture may

change the total amount of THC allowed for each package, or the

total amount of THC allowed for each serving size, by rule.

(l) No individual other than the purchaser may alter or

destroy any labeling affixed to the primary packaging of

cannabis or cannabis-infused products.

(m) For each commercial weighing and measuring device used

at a facility, the cultivation center or craft grower must:

(1) Ensure that the commercial device is licensed under

the Weights and Measures Act and the associated

administrative rules (8 Ill. Adm. Code 600);

(2) Maintain documentation of the licensure of the

commercial device; and

(3) Provide a copy of the license of the commercial

device to the Department of Agriculture for review upon

request.

(n) It is the responsibility of the Department to ensure

that packaging and labeling requirements, including product

warnings, are enforced at all times for products provided to

purchasers. Product registration requirements and container

requirements may be modified by rule by the Department of

Agriculture.

(o) Labeling, including warning labels, may be modified by

rule by the Department of Agriculture.

(Source: P.A. 101-27, eff. 6-25-19; revised 8-30-19.)

(410 ILCS 705/55-25)

Sec. 55-25. Local ordinances. Unless otherwise provided

under this Act or otherwise in accordance with State law:

(1) A unit of local government, including a home rule

unit or any non-home rule county within the unincorporated

territory of the county, may enact reasonable zoning

ordinances or resolutions, not in conflict with this Act or

rules adopted pursuant to this Act, regulating cannabis

business establishments. No unit of local government,

including a home rule unit or any non-home rule county

within the unincorporated territory of the county, may

prohibit home cultivation or unreasonably prohibit use of

cannabis authorized by this Act.

(2) A unit of local government, including a home rule

unit or any non-home rule county within the unincorporated

territory of the county, may enact ordinances or rules not

in conflict with this Act or with rules adopted pursuant to

this Act governing the time, place, manner, and number of

cannabis business establishment operations, including

minimum distance limitations between cannabis business

establishments and locations it deems sensitive, including

colleges and universities, through the use of conditional

use permits. A unit of local government, including a home

rule unit, may establish civil penalties for violation of

an ordinance or rules governing the time, place, and manner

of operation of a cannabis business establishment or a

conditional use permit in the jurisdiction of the unit of

local government. No unit of local government, including a

home rule unit or non-home rule county within an

unincorporated territory of the county, may unreasonably

restrict the time, place, manner, and number of cannabis

business establishment operations authorized by this Act.

(3) A unit of local government, including a home rule

unit, or any non-home rule county within the unincorporated

territory of the county may authorize or permit the

on-premises consumption of cannabis at or in a dispensing

organization or retail tobacco store (as defined in Section

10 of the Smoke Free Illinois Act) within its jurisdiction

in a manner consistent with this Act. A dispensing

organization or retail tobacco store regulate the

on-premises consumption of cannabis at or in a cannabis

business establishment within its jurisdiction in a manner

consistent with this Act. A cannabis business

establishment or other entity authorized or permitted by a

unit of local government to allow on-site consumption shall

not be deemed a public place within the meaning of the

Smoke Free Illinois Act.

(4) A unit of local government, including a home rule

unit or any non-home rule county within the unincorporated

territory of the county, may not regulate the activities

described in paragraph (1), (2), or (3) in a manner more

restrictive than the regulation of those activities by the

State under this Act. This Section is a limitation under

subsection (i) of Section 6 of Article VII of the Illinois

Constitution on the concurrent exercise by home rule units

of powers and functions exercised by the State.

(5) A unit of local government, including a home rule

unit or any non-home rule county within the unincorporated

territory of the county, may enact ordinances to prohibit

or significantly limit a cannabis business establishment's

location.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/55-28)

Sec. 55-28. Restricted cannabis zones.

(a) As used in this Section:

"Legal voter" means a person:

(1) who is duly registered to vote in a municipality

with a population of over 500,000;

(2) whose name appears on a poll list compiled by the

city board of election commissioners since the last

preceding election, regardless of whether the election was

a primary, general, or special election;

(3) who, at the relevant time, is a resident of the

address at which he or she is registered to vote; and

(4) whose address, at the relevant time, is located in

the precinct where such person seeks to file a notice of

intent to initiate a petition process, circulate a

petition, or sign a petition under this Section.

As used in the definition of "legal voter", "relevant time"

means any time that:

(i) a notice of intent is filed, pursuant to subsection

(c) of this Section, to initiate the petition process under

this Section;

(ii) the petition is circulated for signature in the

applicable precinct; or

(iii) the petition is signed by registered voters in

the applicable precinct.

"Petition" means the petition described in this Section.

"Precinct" means the smallest constituent territory within

a municipality with a population of over 500,000 in which

electors vote as a unit at the same polling place in any

election governed by the Election Code.

"Restricted cannabis zone" means a precinct within which

home cultivation, one or more types of cannabis business

establishments, or both has been prohibited pursuant to an

ordinance initiated by a petition under this Section.

(b) The legal voters of any precinct within a municipality

with a population of over 500,000 may petition their local

alderman, using a petition form made available online by the

city clerk, to introduce an ordinance establishing the precinct

as a restricted zone. Such petition shall specify whether it

seeks an ordinance to prohibit, within the precinct: (i) home

cultivation; (ii) one or more types of cannabis business

establishments; or (iii) home cultivation and one or more types

of cannabis business establishments.

Upon receiving a petition containing the signatures of at

least 25% of the registered voters of the precinct, and

concluding that the petition is legally sufficient following

the posting and review process in subsection (c) of this

Section, the city clerk shall notify the local alderman of the

ward in which the precinct is located. Upon being notified,

that alderman, following an assessment of relevant factors

within the precinct, including but not limited to, its

geography, density and character, the prevalence of

residentially zoned property, current licensed cannabis

business establishments in the precinct, the current amount of

home cultivation in the precinct, and the prevailing viewpoint

with regard to the issue raised in the petition, may introduce

an ordinance to the municipality's governing body creating a

restricted cannabis zone in that precinct.

(c) A person seeking to initiate the petition process

described in this Section shall first submit to the city clerk

notice of intent to do so, on a form made available online by

the city clerk. That notice shall include a description of the

potentially affected area and the scope of the restriction

sought. The city clerk shall publicly post the submitted notice

online.

To be legally sufficient, a petition must contain the

requisite number of valid signatures and all such signatures

must be obtained within 90 days of the date that the city clerk

publicly posts the notice of intent. Upon receipt, the city

clerk shall post the petition on the municipality's website for

a 30-day comment period. The city clerk is authorized to take

all necessary and appropriate steps to verify the legal

sufficiency of a submitted petition. Following the petition

review and comment period, the city clerk shall publicly post

online the status of the petition as accepted or rejected, and

if rejected, the reasons therefor. If the city clerk rejects a

petition as legally insufficient, a minimum of 12 months must

elapse from the time the city clerk posts the rejection notice

before a new notice of intent for that same precinct may be

submitted.

(c-5) Within 3 days after receiving an application for

zoning approval to locate a cannabis business establishment

within a municipality with a population of over 500,000, the

municipality shall post a public notice of the filing on its

website and notify the alderman of the ward in which the

proposed cannabis business establishment is to be located of

the filing. No action shall be taken on the zoning application

for 7 business days following the notice of the filing for

zoning approval.

If a notice of intent to initiate the petition process to

prohibit the type of cannabis business establishment proposed

in the precinct of the proposed cannabis business establishment

is filed prior to the filing of the application or within the

7-day period after the filing of the application, the

municipality shall not approve the application for at least 90

days after the city clerk publicly posts the notice of intent

to initiate the petition process. If a petition is filed within

the 90-day petition-gathering period described in subsection

(c), the municipality shall not approve the application for an

additional 90 days after the city clerk's receipt of the

petition; provided that if the city clerk rejects a petition as

legally insufficient, the municipality may approve the

application prior to the end of the 90 days. If a petition is

not submitted within the 90-day petition-gathering period

described in subsection (c), the municipality may approve the

application unless the approval is otherwise stayed pursuant to

this subsection by a separate notice of intent to initiate the

petition process filed timely within the 7-day period.

If no legally sufficient petition is timely filed, a

minimum of 12 months must elapse before a new notice of intent

for that same precinct may be submitted.

(d) Notwithstanding any law to the contrary, the

municipality may enact an ordinance creating a restricted

cannabis zone. The ordinance shall:

(1) identify the applicable precinct boundaries as of

the date of the petition;

(2) state whether the ordinance prohibits within the

defined boundaries of the precinct, and in what

combination: (A) one or more types of cannabis business

establishments; or (B) home cultivation;

(3) be in effect for 4 years, unless repealed earlier;

and

(4) once in effect, be subject to renewal by ordinance

at the expiration of the 4-year period without the need for

another supporting petition.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/55-30)

Sec. 55-30. Confidentiality.

(a) Information provided by the cannabis business

establishment licensees or applicants to the Department of

Agriculture, the Department of Public Health, the Department of

Financial and Professional Regulation, the Department of

Commerce and Economic Opportunity, or other agency shall be

limited to information necessary for the purposes of

administering this Act. The information is subject to the

provisions and limitations contained in the Freedom of

Information Act and may be disclosed in accordance with Section

55-65.

(b) The following information received and records kept by

the Department of Agriculture, the Department of Public Health,

the Department of State Police, and the Department of Financial

and Professional Regulation for purposes of administering this

Article are subject to all applicable federal privacy laws, are

confidential and exempt from disclosure under the Freedom of

Information Act, except as provided in this Act, and not

subject to disclosure to any individual or public or private

entity, except to the Department of Financial and Professional

Regulation, the Department of Agriculture, the Department of

Public Health, and the Department of State Police as necessary

to perform official duties under this Article and to the

Attorney General as necessary to enforce the provisions of this

Act. The following information received and kept by the

Department of Financial and Professional Regulation or the

Department of Agriculture may be disclosed to the Department of

Public Health, the Department of Agriculture, the Department of

Revenue, the Department of State Police, or the Attorney

General upon proper . The following information received and

kept by the Department of Financial and Professional Regulation

or the Department of Agriculture, excluding any existing or

non-existing Illinois or national criminal history record

information, may be disclosed to the Department of Public

Health, the Department of Agriculture, the Department of

Revenue, or the Department of State Police upon request:

(1) Applications and renewals, their contents, and

supporting information submitted by or on behalf of

dispensing organizations in compliance with this Article,

including their physical addresses;

(2) Any plans, procedures, policies, or other records

relating to dispensing organization security; and

(3) Information otherwise exempt from disclosure by

State or federal law.

Illinois or national criminal history record information,

or the nonexistence or lack of such information, may not be

disclosed by the Department of Financial and Professional

Regulation or the Department of Agriculture, except as

necessary to the Attorney General to enforce this Act.

(c) The name and address of a dispensing organization

licensed under this Act shall be subject to disclosure under

the Freedom of Information Act. The name and cannabis business

establishment address of the person or entity holding each

cannabis business establishment license shall be subject to

disclosure.

(d) All information collected by the Department of

Financial and Professional Regulation in the course of an

examination, inspection, or investigation of a licensee or

applicant, including, but not limited to, any complaint against

a licensee or applicant filed with the Department and

information collected to investigate any such complaint, shall

be maintained for the confidential use of the Department and

shall not be disclosed, except as otherwise provided in this

the Act. A formal complaint against a licensee by the

Department or any disciplinary order issued by the Department

against a licensee or applicant shall be a public record,

except as otherwise provided by law prohibited by law, as

required by law, or as necessary to enforce the provisions of

this Act. Complaints from consumers or members of the general

public received regarding a specific, named licensee or

complaints regarding conduct by unlicensed entities shall be

subject to disclosure under the Freedom of Information Act.

(e) The Department of Agriculture, the Department of State

Police, and the Department of Financial and Professional

Regulation shall not share or disclose any Illinois or national

criminal history record information, or the nonexistence or

lack of such information, existing or non-existing Illinois or

national criminal history record information to any person or

entity not expressly authorized by this Act. As used in this

Section, "any existing or non-existing Illinois or national

criminal history record information" means any Illinois or

national criminal history record information, including but

not limited to the lack of or non-existence of these records.

(f) Each Department responsible for licensure under this

Act shall publish on the Department's website a list of the

ownership information of cannabis business establishment

licensees under the Department's jurisdiction. The list shall

include, but is not limited to: the name of the person or

entity holding each cannabis business establishment license;

and the address at which the entity is operating under this

Act. This list shall be published and updated monthly.

(Source: P.A. 101-27, eff. 6-25-19; revised 9-10-19.)

(410 ILCS 705/55-35)

Sec. 55-35. Administrative rulemaking.

(a) No later than 180 days after the effective date of this

Act, the Department of Agriculture, the Department of State

Police, the Department of Financial and Professional

Regulation, the Department of Revenue, the Department of

Commerce and Economic Opportunity, and the Treasurer's Office

shall adopt permanent rules in accordance with their

responsibilities under this Act. The Department of

Agriculture, the Department of State Police, the Department of

Financial and Professional Regulation, the Department of

Revenue, and the Department of Commerce and Economic

Opportunity may adopt rules necessary to regulate personal

cannabis use through the use of emergency rulemaking in

accordance with subsection (gg) of Section 5-45 of the Illinois

Administrative Procedure Act. The General Assembly finds that

the adoption of rules to regulate cannabis use is deemed an

emergency and necessary for the public interest, safety, and

welfare.

(b) The Department of Agriculture rules may address, but

are not limited to, the following matters related to

cultivation centers, craft growers, infuser organizations, and

transporting organizations with the goal of protecting against

diversion and theft, without imposing an undue burden on the

cultivation centers, craft growers, infuser organizations, or

transporting organizations:

(1) oversight requirements for cultivation centers,

craft growers, infuser organizations, and transporting

organizations;

(2) recordkeeping requirements for cultivation

centers, craft growers, infuser organizations, and

transporting organizations;

(3) security requirements for cultivation centers,

craft growers, infuser organizations, and transporting

organizations, which shall include that each cultivation

center, craft grower, infuser organization, and

transporting organization location must be protected by a

fully operational security alarm system;

(4) standards for enclosed, locked facilities under

this Act;

(5) procedures for suspending or revoking the

identification cards of agents of cultivation centers,

craft growers, infuser organizations, and transporting

organizations that commit violations of this Act or the

rules adopted under this Section;

(6) rules concerning the intrastate transportation of

cannabis from a cultivation center, craft grower, infuser

organization, and transporting organization to a

dispensing organization;

(7) standards concerning the testing, quality,

cultivation, and processing of cannabis; and

(8) any other matters under oversight by the Department

of Agriculture as are necessary for the fair, impartial,

stringent, and comprehensive administration of this Act.

(c) The Department of Financial and Professional

Regulation rules may address, but are not limited to, the

following matters related to dispensing organizations, with

the goal of protecting against diversion and theft, without

imposing an undue burden on the dispensing organizations:

(1) oversight requirements for dispensing

organizations;

(2) recordkeeping requirements for dispensing

organizations;

(3) security requirements for dispensing

organizations, which shall include that each dispensing

organization location must be protected by a fully

operational security alarm system;

(4) procedures for suspending or revoking the licenses

of dispensing organization agents that commit violations

of this Act or the rules adopted under this Act;

(5) any other matters under oversight by the Department

of Financial and Professional Regulation that are

necessary for the fair, impartial, stringent, and

comprehensive administration of this Act.

(d) The Department of Revenue rules may address, but are

not limited to, the following matters related to the payment of

taxes by cannabis business establishments:

(1) recording of sales;

(2) documentation of taxable income and expenses;

(3) transfer of funds for the payment of taxes; or

(4) any other matter under the oversight of the

Department of Revenue.

(e) The Department of Commerce and Economic Opportunity

rules may address, but are not limited to, a loan program or

grant program to assist Social Equity Applicants access the

capital needed to start a cannabis business establishment. The

names of recipients and the amounts of any moneys received

through a loan program or grant program shall be a public

record.

(f) The Department of State Police rules may address

enforcement of its authority under this Act. The Department of

State Police shall not make rules that infringe on the

exclusive authority of the Department of Financial and

Professional Regulation or the Department of Agriculture over

licensees under this Act.

(g) The Department of Human Services Public Health shall

develop and disseminate:

(1) educational information about the health risks

associated with the use of cannabis; and

(2) one or more public education campaigns in

coordination with local health departments and community

organizations, including one or more prevention campaigns

directed at children, adolescents, parents, and pregnant

or breastfeeding women, to inform them of the potential

health risks associated with intentional or unintentional

cannabis use.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/55-65)

Sec. 55-65. Financial institutions.

(a) A financial institution that provides financial

services customarily provided by financial institutions to a

cannabis business establishment authorized under this Act or

the Compassionate Use of Medical Cannabis Pilot Program Act, or

to a person that is affiliated with such cannabis business

establishment, is exempt from any criminal law of this State as

it relates to cannabis-related conduct authorized under State

law.

(b) Upon request of a financial institution, a cannabis

business establishment or proposed cannabis business

establishment may provide to the financial institution the

following information:

(1) Whether a cannabis business establishment with

which the financial institution is doing or is considering

doing business holds a license under this Act or the

Compassionate Use of Medical Cannabis Pilot Program Act;

(2) The name of any other business or individual

affiliate with the cannabis business establishment;

(3) A copy of the application, and any supporting

documentation submitted with the application, for a

license or a permit submitted on behalf of the proposed

cannabis business establishment;

(4) If applicable, data relating to sales and the

volume of product sold by the cannabis business

establishment;

(5) Any past or pending violation by the person of this

Act, the Compassionate Use of Medical Cannabis Pilot

Program Act, or the rules adopted under these Acts where

applicable; and

(6) Any penalty imposed upon the person for violating

this Act, the Compassionate Use of Medical Cannabis Pilot

Program Act, or the rules adopted under these Acts.

(c) (Blank).

(d) (Blank).

(e) Information received by a financial institution under

this Section is confidential. Except as otherwise required or

permitted by this Act, State law or rule, or federal law or

regulation, a financial institution may not make the

information available to any person other than:

(1) the customer to whom the information applies;

(2) a trustee, conservator, guardian, personal

representative, or agent of the customer to whom the

information applies; a federal or State regulator when

requested in connection with an examination of the

financial institution or if otherwise necessary for

complying with federal or State law;

(3) a federal or State regulator when requested in

connection with an examination of the financial

institution or if otherwise necessary for complying with

federal or State law; and

(4) a third party performing services for the financial

institution, provided the third party is performing such

services under a written agreement that expressly or by

operation of law prohibits the third party's sharing and

use of such confidential information for any purpose other

than as provided in its agreement to provide services to

the financial institution.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/55-80)

Sec. 55-80. Annual reports.

(a) The Department of Financial and Professional

Regulation shall submit to the General Assembly and Governor a

report, by September 30 of each year, that does not disclose

any information identifying information about cultivation

centers, craft growers, infuser organizations, transporting

organizations, or dispensing organizations, but does contain,

at a minimum, all of the following information for the previous

fiscal year:

(1) The number of licenses issued to dispensing

organizations by county, or, in counties with greater than

3,000,000 residents, by zip code;

(2) The total number of dispensing organization owners

that are Social Equity Applicants or minority persons,

women, or persons with disabilities as those terms are

defined in the Business Enterprise for Minorities, Women,

and Persons with Disabilities Act;

(3) The total number of revenues received from

dispensing organizations, segregated from revenues

received from dispensing organizations under the

Compassionate Use of Medical Cannabis Pilot Program Act by

county, separated by source of revenue;

(4) The total amount of revenue received from

dispensing organizations that share a premises or majority

ownership with a craft grower;

(5) The total amount of revenue received from

dispensing organizations that share a premises or majority

ownership with an infuser; and

(6) An analysis of revenue generated from taxation,

licensing, and other fees for the State, including

recommendations to change the tax rate applied.

(b) The Department of Agriculture shall submit to the

General Assembly and Governor a report, by September 30 of each

year, that does not disclose any information identifying

information about cultivation centers, craft growers, infuser

organizations, transporting organizations, or dispensing

organizations, but does contain, at a minimum, all of the

following information for the previous fiscal year:

(1) The number of licenses issued to cultivation

centers, craft growers, infusers, and transporters by

license type, and, in counties with more than 3,000,000

residents, by zip code;

(2) The total number of cultivation centers, craft

growers, infusers, and transporters by license type that

are Social Equity Applicants or minority persons, women, or

persons with disabilities as those terms are defined in the

Business Enterprise for Minorities, Women, and Persons

with Disabilities Act;

(3) The total amount of revenue received from

cultivation centers, craft growers, infusers, and

transporters, separated by license types and source of

revenue;

(4) The total amount of revenue received from craft

growers and infusers that share a premises or majority

ownership with a dispensing organization;

(5) The total amount of revenue received from craft

growers that share a premises or majority ownership with an

infuser, but do not share a premises or ownership with a

dispensary;

(6) The total amount of revenue received from infusers

that share a premises or majority ownership with a craft

grower, but do not share a premises or ownership with a

dispensary;

(7) The total amount of revenue received from craft

growers that share a premises or majority ownership with a

dispensing organization, but do not share a premises or

ownership with an infuser;

(8) The total amount of revenue received from infusers

that share a premises or majority ownership with a

dispensing organization, but do not share a premises or

ownership with a craft grower;

(9) The total amount of revenue received from

transporters; and

(10) An analysis of revenue generated from taxation,

licensing, and other fees for the State, including

recommendations to change the tax rate applied.

(c) The Department of State Police shall submit to the

General Assembly and Governor a report, by September 30 of each

year that contains, at a minimum, all of the following

information for the previous fiscal year:

(1) The effect of regulation and taxation of cannabis

on law enforcement resources;

(2) The impact of regulation and taxation of cannabis

on highway and waterway safety and rates of impaired

driving or operating safety and rates of impaired driving,

where impairment was determined based on failure of a field

sobriety test;

(3) The available and emerging methods for detecting

the metabolites for delta-9-tetrahydrocannabinol in bodily

fluids, including, without limitation, blood and saliva;

(4) The effectiveness of current DUI laws and

recommendations for improvements to policy to better

ensure safe highways and fair laws.

(d) The Adult Use Cannabis Health Advisory Committee shall

submit to the General Assembly and Governor a report, by

September 30 of each year, that does not disclose any

identifying information about any individuals, but does

contain, at a minimum:

(1) Self-reported youth cannabis use, as published in

the most recent Illinois Youth Survey available;

(2) Self-reported adult cannabis use, as published in

the most recent Behavioral Risk Factor Surveillance Survey

available;

(3) Hospital room admissions and hospital utilization

rates caused by cannabis consumption, including the

presence or detection of other drugs;

(4) Overdoses of cannabis and poison control data,

including the presence of other drugs that may have

contributed;

(5) Incidents of impaired driving caused by the

consumption of cannabis or cannabis products, including

the presence of other drugs or alcohol that may have

contributed to the impaired driving;

(6) Prevalence of infants born testing positive for

cannabis or delta-9-tetrahydrocannabinol, including

demographic and racial information on which infants are

tested;

(7) Public perceptions of use and risk of harm;

(8) Revenue collected from cannabis taxation and how

that revenue was used;

(9) Cannabis retail licenses granted and locations;

(10) Cannabis-related arrests; and

(11) The number of individuals completing required bud

tender training.

(e) Each agency or committee submitting reports under this

Section may consult with one another in the preparation of each

report.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/55-85)

Sec. 55-85. Medical cannabis.

(a) Nothing in this Act shall be construed to limit any

privileges or rights of a medical cannabis patient including

minor patients, primary caregiver, medical cannabis

cultivation center, or medical cannabis dispensing

organization under the Compassionate Use of Medical Cannabis

Pilot Program Act, and where there is conflict between this Act

and the Compassionate Use of Medical Cannabis Pilot Program Act

as they relate to medical cannabis patients, the Compassionate

Use of Medical Cannabis Pilot Program Act shall prevail.

(b) Dispensary locations that obtain an Early Approval

Adult Use Dispensary Organization License or an Adult Use

Dispensary Organization License in accordance with this Act at

the same location as a medical cannabis dispensing organization

registered under the Compassionate Use of Medical Cannabis

Pilot Program Act shall maintain an inventory of medical

cannabis and medical cannabis products on a monthly basis that

is substantially similar in variety and quantity to the

products offered at the dispensary during the 6-month period

immediately before the effective date of this Act.

(c) Beginning June 30, 2020, the Department of Agriculture

shall make a quarterly determination whether inventory

requirements established for dispensaries in subsection (b)

should be adjusted due to changing patient need.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/55-95)

Sec. 55-95. Conflict of interest. A person is ineligible to

apply for, hold, or own financial or voting interest, other

than a passive interest in a publicly traded company, in any

cannabis business license under this Act if, within a 2-year

period from the effective date of this Act, the person or his

or her spouse or immediate immediately family member was a

member of the General Assembly or a State employee at an agency

that regulates cannabis business establishment license holders

who participated personally and substantially in the award of

licenses under this Act. A person who violates this Section

shall be guilty under subsection (b) of Section 50-5 of the

State Officials and Employees Ethics Act.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/60-5)

Sec. 60-5. Definitions. In this Article:

"Cannabis" has the meaning given to that term in Article 1

of this Act, except that it does not include cannabis that is

subject to tax under the Compassionate Use of Medical Cannabis

Pilot Program Act.

"Craft grower" has the meaning given to that term in

Article 1 of this Act.

"Cultivation center" has the meaning given to that term in

Article 1 of this Act.

"Cultivator" or "taxpayer" means a cultivation center or

craft grower who is subject to tax under this Article.

"Department" means the Department of Revenue.

"Director" means the Director of Revenue.

"Dispensing organization" or "dispensary" has the meaning

given to that term in Article 1 of this Act.

"Gross receipts" from the sales of cannabis by a cultivator

means the total selling price or the amount of such sales, as

defined in this Article. In the case of charges and time sales,

the amount thereof shall be included only when payments are

received by the cultivator.

"Person" means a natural individual, firm, partnership,

association, joint stock company, joint adventure, public or

private corporation, limited liability company, or a receiver,

executor, trustee, guardian, or other representative appointed

by order of any court.

"Infuser" means "infuser organization" or "infuser" as

defined in Article 1 of this Act.

"Selling price" or "amount of sale" means the consideration

for a sale valued in money whether received in money or

otherwise, including cash, credits, property, and services,

and shall be determined without any deduction on account of the

cost of the property sold, the cost of materials used, labor or

service cost, or any other expense whatsoever, but does not

include separately stated charges identified on the invoice by

cultivators to reimburse themselves for their tax liability

under this Article.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/60-20)

Sec. 60-20. Return and payment of cannabis cultivation

privilege tax. Each person who is required to pay the tax

imposed by this Article shall make a return to the Department

on or before the 20th day of each month for the preceding

calendar month stating the following:

(1) the taxpayer's name;

(2) the address of the taxpayer's principal place of

business and the address of the principal place of business

(if that is a different address) from which the taxpayer is

engaged in the business of cultivating cannabis subject to

tax under this Article;

(3) the total amount of receipts received by the

taxpayer during the preceding calendar month from sales of

cannabis subject to tax under this Article by the taxpayer

during the preceding calendar month;

(4) the total amount received by the taxpayer during

the preceding calendar month on charge and time sales of

cannabis subject to tax imposed under this Article by the

taxpayer before the month for which the return is filed;

(5) deductions allowed by law;

(6) gross receipts that were received by the taxpayer

during the preceding calendar month and upon the basis of

which the tax is imposed;

(7) the amount of tax due;

(8) the signature of the taxpayer; and

(9) any other information as the Department may

reasonably require.

All returns required to be filed and payments required to

be made under this Article shall be by electronic means.

Taxpayers who demonstrate hardship in paying electronically

may petition the Department to waive the electronic payment

requirement. The Department may require a separate return for

the tax under this Article or combine the return for the tax

under this Article with the return for the tax under the

Compassionate Use of Medical Cannabis Pilot Program Act. If the

return for the tax under this Article is combined with the

return for tax under the Compassionate Use of Medical Cannabis

Pilot Program Act, then the vendor's discount allowed under

this Section and any cap on that discount shall apply to the

combined return. The taxpayer making the return provided for in

this Section shall also pay to the Department, in accordance

with this Section, the amount of tax imposed by this Article,

less a discount of 1.75%, but not to exceed $1,000 per return

period, which is allowed to reimburse the taxpayer for the

expenses incurred in keeping records, collecting tax,

preparing and filing returns, remitting the tax, and supplying

data to the Department upon request. No discount may be claimed

by a taxpayer on returns not timely filed and for taxes not

timely remitted. No discount may be claimed by a taxpayer for

any return that is not filed electronically. No discount may be

claimed by a taxpayer for any payment that is not made

electronically, unless a waiver has been granted under this

Section. Any amount that is required to be shown or reported on

any return or other document under this Article shall, if the

amount is not a whole-dollar amount, be increased to the

nearest whole-dollar amount if the fractional part of a dollar

is $0.50 or more and decreased to the nearest whole-dollar

amount if the fractional part of a dollar is less than $0.50.

If a total amount of less than $1 is payable, refundable, or

creditable, the amount shall be disregarded if it is less than

$0.50 and shall be increased to $1 if it is $0.50 or more.

Notwithstanding any other provision of this Article concerning

the time within which a taxpayer may file a return, any such

taxpayer who ceases to engage in the kind of business that

makes the person responsible for filing returns under this

Article shall file a final return under this Article with the

Department within one month after discontinuing such business.

Each taxpayer under this Article shall make estimated

payments to the Department on or before the 7th, 15th, 22nd,

and last day of the month during which tax liability to the

Department is incurred. The payments shall be in an amount not

less than the lower of either 22.5% of the taxpayer's actual

tax liability for the month or 25% of the taxpayer's actual tax

liability for the same calendar month of the preceding year.

The amount of the quarter-monthly payments shall be credited

against the final tax liability of the taxpayer's return for

that month. If any quarter-monthly payment is not paid at the

time or in the amount required by this Section, then the

taxpayer shall be liable for penalties and interest on the

difference between the minimum amount due as a payment and the

amount of the quarter-monthly payment actually and timely paid,

except insofar as the taxpayer has previously made payments for

that month to the Department in excess of the minimum payments

previously due as provided in this Section.

If any payment provided for in this Section exceeds the

taxpayer's liabilities under this Article, as shown on an

original monthly return, the Department shall, if requested by

the taxpayer, issue to the taxpayer a credit memorandum no

later than 30 days after the date of payment. The credit

evidenced by the credit memorandum may be assigned by the

taxpayer to a similar taxpayer under this Act, in accordance

with reasonable rules to be prescribed by the Department. If no

such request is made, the taxpayer may credit the excess

payment against tax liability subsequently to be remitted to

the Department under this Act, in accordance with reasonable

rules prescribed by the Department. If the Department

subsequently determines that all or any part of the credit

taken was not actually due to the taxpayer, the taxpayer's

discount shall be reduced, if necessary, to reflect the

difference between the credit taken and that actually due, and

that taxpayer shall be liable for penalties and interest on the

difference.

If a taxpayer fails to sign a return within 30 days after

the proper notice and demand for signature by the Department is

received by the taxpayer, the return shall be considered valid

and any amount shown to be due on the return shall be deemed

assessed.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/65-5)

Sec. 65-5. Definitions. In this Article:

"Adjusted delta-9-tetrahydrocannabinol level" means, for a

delta-9-tetrahydrocannabinol dominant product, the sum of the

percentage of delta-9-tetrahydrocannabinol plus .877

multiplied by the percentage of tetrahydrocannabinolic acid.

"Cannabis" has the meaning given to that term in Article 1

of this Act, except that it does not include cannabis that is

subject to tax under the Compassionate Use of Medical Cannabis

Pilot Program Act.

"Cannabis-infused product" means beverage food, oils,

ointments, tincture, topical formulation, or another product

containing cannabis that is not intended to be smoked.

"Cannabis retailer" means a dispensing organization that

sells cannabis for use and not for resale.

"Craft grower" has the meaning given to that term in

Article 1 of this Act.

"Department" means the Department of Revenue.

"Director" means the Director of Revenue.

"Dispensing organization" or "dispensary" has the meaning

given to that term in Article 1 of this Act.

"Person" means a natural individual, firm, partnership,

association, joint stock company, joint adventure, public or

private corporation, limited liability company, or a receiver,

executor, trustee, guardian, or other representative appointed

by order of any court.

"Infuser organization" or "infuser" means a facility

operated by an organization or business that is licensed by the

Department of Agriculture to directly incorporate cannabis or

cannabis concentrate into a product formulation to produce a

cannabis-infused product.

"Purchase price" means the consideration paid for a

purchase of cannabis, valued in money, whether received in

money or otherwise, including cash, gift cards, credits, and

property and shall be determined without any deduction on

account of the cost of materials used, labor or service costs,

or any other expense whatsoever. However, "purchase price" does

not include consideration paid for:

(1) any charge for a payment that is not honored by a

financial institution;

(2) any finance or credit charge, penalty or charge for

delayed payment, or discount for prompt payment; and

(3) any amounts added to a purchaser's bill because of

charges made under the tax imposed by this Article, the

Municipal Cannabis Retailers' Occupation Tax Law, the

County Cannabis Retailers' Occupation Tax Law, the

Retailers' Occupation Tax Act, the Use Tax Act, the Service

Occupation Tax Act, the Service Use Tax Act, or any locally

imposed occupation or use tax.

"Purchaser" means a person who acquires cannabis for a

valuable consideration.

"Taxpayer" means a cannabis retailer who is required to

collect the tax imposed under this Article.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/65-10)

Sec. 65-10. Tax imposed.

(a) Beginning January 1, 2020, a tax is imposed upon

purchasers for the privilege of using cannabis at the following

rates:

(1) Any cannabis, other than a cannabis-infused

product, with an adjusted delta-9-tetrahydrocannabinol

level at or below 35% shall be taxed at a rate of 10% of the

purchase price;

(2) Any cannabis, other than a cannabis-infused

product, with an adjusted delta-9-tetrahydrocannabinol

level above 35% shall be taxed at a rate of 25% of the

purchase price; and

(3) A cannabis-infused product shall be taxed at a rate

of 20% of the purchase price.

(b) The purchase of any product that contains any amount of

cannabis or any derivative thereof is subject to the tax under

subsection (a) of this Section on the full purchase price of

the product.

(c) The tax imposed under this Section is not imposed on

cannabis that is subject to tax under the Compassionate Use of

Medical Cannabis Pilot Program Act. The tax imposed by this

Section is not imposed with respect to any transaction in

interstate commerce, to the extent the transaction may not,

under the Constitution and statutes of the United States, be

made the subject of taxation by this State.

(d) The tax imposed under this Article shall be in addition

to all other occupation, privilege, or excise taxes imposed by

the State of Illinois or by any municipal corporation or

political subdivision thereof.

(e) The tax imposed under this Article shall not be imposed

on any purchase by a purchaser if the cannabis retailer is

prohibited by federal or State Constitution, treaty,

convention, statute, or court decision from collecting the tax

from the purchaser.

(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/65-15)

Sec. 65-15. Collection of tax.

(a) The tax imposed by this Article shall be collected from

the purchaser by the cannabis retailer at the rate stated in

Section 65-10 with respect to cannabis sold by the cannabis

retailer to the purchaser, and shall be remitted to the

Department as provided in Section 65-30. All sales to a

purchaser who is not a cardholder under the Compassionate Use

of Medical Cannabis Pilot Program Act are presumed subject to

tax collection. Cannabis retailers shall collect the tax from

purchasers by adding the tax to the amount of the purchase

price received from the purchaser for selling cannabis to the

purchaser. The tax imposed by this Article shall, when

collected, be stated as a distinct item separate and apart from

the purchase price of the cannabis.

(b) If a cannabis retailer collects Cannabis Purchaser

Excise Tax measured by a purchase price that is not subject to

Cannabis Purchaser Excise Tax, or if a cannabis retailer, in

collecting Cannabis Purchaser Excise Tax measured by a purchase

price that is subject to tax under this Act, collects more from

the purchaser than the required amount of the Cannabis

Purchaser Excise Tax on the transaction, the purchaser shall

have a legal right to claim a refund of that amount from the

cannabis retailer. If, however, that amount is not refunded to

the purchaser for any reason, the cannabis retailer is liable

to pay that amount to the Department.

(c) Any person purchasing cannabis subject to tax under

this Article as to which there has been no charge made to him

or her of the tax imposed by Section 65-10 shall make payment

of the tax imposed by Section 65-10 in the form and manner

provided by the Department not later than the 20th day of the

month following the month of purchase of the cannabis.

(Source: P.A. 101-27, eff. 6-25-19.)

Section 30. The Illinois Vehicle Code is amended by

changing Sections 2-118.2, 6-206.1, and 11-501.10 as follows:

(625 ILCS 5/2-118.2)

Sec. 2-118.2. Opportunity for hearing; cannabis-related

suspension under Section 11-501.9.

(a) A suspension of driving privileges under Section

11-501.9 of this Code shall not become effective until the

person is notified in writing of the impending suspension and

informed that he or she may request a hearing in the circuit

court of venue under subsection (b) of this Section and the

suspension shall become effective as provided in Section

11-501.9.

(b) Within 90 days after the notice of suspension served

under Section 11-501.9, the person may make a written request

for a judicial hearing in the circuit court of venue. The

request to the circuit court shall state the grounds upon which

the person seeks to have the suspension rescinded. Within 30

days after receipt of the written request or the first

appearance date on the Uniform Traffic Ticket issued for a

violation of Section 11-501 of this Code, or a similar

provision of a local ordinance, the hearing shall be conducted

by the circuit court having jurisdiction. This judicial

hearing, request, or process shall not stay or delay the

suspension. The hearing shall proceed in the court in the same

manner as in other civil proceedings.

The hearing may be conducted upon a review of the law

enforcement officer's own official reports; provided however,

that the person may subpoena the officer. Failure of the

officer to answer the subpoena shall be considered grounds for

a continuance if in the court's discretion the continuance is

appropriate.

The scope of the hearing shall be limited to the issues of:

(1) Whether the officer had reasonable suspicion to

believe that the person was driving or in actual physical

control of a motor vehicle upon a highway while impaired by

the use of cannabis; and

(2) Whether the person, after being advised by the

officer that the privilege to operate a motor vehicle would

be suspended if the person refused to submit to and

complete the field sobriety tests or validated roadside

chemical tests, did refuse to submit to or complete the

field sobriety tests or validated roadside chemical tests

authorized under Section 11-501.9; and

(3) Whether the person after being advised by the

officer that the privilege to operate a motor vehicle would

be suspended if the person submitted to field sobriety

tests or validated roadside chemical tests that disclosed

the person was impaired by the use of cannabis, did submit

to field sobriety tests or validated roadside chemical

tests that disclosed that the person was impaired by the

use of cannabis.

Upon the conclusion of the judicial hearing, the circuit

court shall sustain or rescind the suspension and immediately

notify the Secretary of State. Reports received by the

Secretary of State under this Section shall be privileged

information and for use only by the courts, police officers,

and Secretary of State.

(Source: P.A. 101-27, eff. 6-25-19; 101-363, eff. 8-9-19.)

(625 ILCS 5/6-206.1) (from Ch. 95 1/2, par. 6-206.1)

Sec. 6-206.1. Monitoring Device Driving Permit.

Declaration of Policy. It is hereby declared a policy of the

State of Illinois that the driver who is impaired by alcohol,

other drug or drugs, or intoxicating compound or compounds is a

threat to the public safety and welfare. Therefore, to provide

a deterrent to such practice, a statutory summary driver's

license suspension is appropriate. It is also recognized that

driving is a privilege and therefore, that the granting of

driving privileges, in a manner consistent with public safety,

is warranted during the period of suspension in the form of a

monitoring device driving permit. A person who drives and fails

to comply with the requirements of the monitoring device

driving permit commits a violation of Section 6-303 of this

Code.

The following procedures shall apply whenever a first

offender, as defined in Section 11-500 of this Code, is

arrested for any offense as defined in Section 11-501 or a

similar provision of a local ordinance and is subject to the

provisions of Section 11-501.1:

(a) Upon mailing of the notice of suspension of driving

privileges as provided in subsection (h) of Section 11-501.1 of

this Code, the Secretary shall also send written notice

informing the person that he or she will be issued a monitoring

device driving permit (MDDP). The notice shall include, at

minimum, information summarizing the procedure to be followed

for issuance of the MDDP, installation of the breath alcohol

ignition installation device (BAIID), as provided in this

Section, exemption from BAIID installation requirements, and

procedures to be followed by those seeking indigent status, as

provided in this Section. The notice shall also include

information summarizing the procedure to be followed if the

person wishes to decline issuance of the MDDP. A copy of the

notice shall also be sent to the court of venue together with

the notice of suspension of driving privileges, as provided in

subsection (h) of Section 11-501. However, a MDDP shall not be

issued if the Secretary finds that:

(1) the offender's driver's license is otherwise

invalid;

(2) death or great bodily harm to another resulted from

the arrest for Section 11-501;

(3) the offender has been previously convicted of

reckless homicide or aggravated driving under the

influence involving death; or

(4) the offender is less than 18 years of age. ; or

(5) the offender is a qualifying patient licensed under

the Compassionate Use of Medical Cannabis Program Act who

is in possession of a valid registry card issued under that

Act and refused to submit to standardized field sobriety

tests as required by subsection (a) of Section 11-501.9 or

did submit to testing which disclosed the person was

impaired by the use of cannabis.

Any offender participating in the MDDP program must pay the

Secretary a MDDP Administration Fee in an amount not to exceed

$30 per month, to be deposited into the Monitoring Device

Driving Permit Administration Fee Fund. The Secretary shall

establish by rule the amount and the procedures, terms, and

conditions relating to these fees. The offender must have an

ignition interlock device installed within 14 days of the date

the Secretary issues the MDDP. The ignition interlock device

provider must notify the Secretary, in a manner and form

prescribed by the Secretary, of the installation. If the

Secretary does not receive notice of installation, the

Secretary shall cancel the MDDP.

Upon receipt of the notice, as provided in paragraph (a) of

this Section, the person may file a petition to decline

issuance of the MDDP with the court of venue. The court shall

admonish the offender of all consequences of declining issuance

of the MDDP including, but not limited to, the enhanced

penalties for driving while suspended. After being so

admonished, the offender shall be permitted, in writing, to

execute a notice declining issuance of the MDDP. This notice

shall be filed with the court and forwarded by the clerk of the

court to the Secretary. The offender may, at any time

thereafter, apply to the Secretary for issuance of a MDDP.

(a-1) A person issued a MDDP may drive for any purpose and

at any time, subject to the rules adopted by the Secretary

under subsection (g). The person must, at his or her own

expense, drive only vehicles equipped with an ignition

interlock device as defined in Section 1-129.1, but in no event

shall such person drive a commercial motor vehicle.

(a-2) Persons who are issued a MDDP and must drive

employer-owned vehicles in the course of their employment

duties may seek permission to drive an employer-owned vehicle

that does not have an ignition interlock device. The employer

shall provide to the Secretary a form, as prescribed by the

Secretary, completed by the employer verifying that the

employee must drive an employer-owned vehicle in the course of

employment. If approved by the Secretary, the form must be in

the driver's possession while operating an employer-owner

vehicle not equipped with an ignition interlock device. No

person may use this exemption to drive a school bus, school

vehicle, or a vehicle designed to transport more than 15

passengers. No person may use this exemption to drive an

employer-owned motor vehicle that is owned by an entity that is

wholly or partially owned by the person holding the MDDP, or by

a family member of the person holding the MDDP. No person may

use this exemption to drive an employer-owned vehicle that is

made available to the employee for personal use. No person may

drive the exempted vehicle more than 12 hours per day, 6 days

per week.

(a-3) Persons who are issued a MDDP and who must drive a

farm tractor to and from a farm, within 50 air miles from the

originating farm are exempt from installation of a BAIID on the

farm tractor, so long as the farm tractor is being used for the

exclusive purpose of conducting farm operations.

(b) (Blank).

(c) (Blank).

(c-1) If the holder of the MDDP is convicted of or receives

court supervision for a violation of Section 6-206.2, 6-303,

11-204, 11-204.1, 11-401, 11-501, 11-503, 11-506 or a similar

provision of a local ordinance or a similar out-of-state

offense or is convicted of or receives court supervision for

any offense for which alcohol or drugs is an element of the

offense and in which a motor vehicle was involved (for an

arrest other than the one for which the MDDP is issued), or

de-installs the BAIID without prior authorization from the

Secretary, the MDDP shall be cancelled.

(c-5) If the Secretary determines that the person seeking

the MDDP is indigent, the Secretary shall provide the person

with a written document as evidence of that determination, and

the person shall provide that written document to an ignition

interlock device provider. The provider shall install an

ignition interlock device on that person's vehicle without

charge to the person, and seek reimbursement from the Indigent

BAIID Fund. If the Secretary has deemed an offender indigent,

the BAIID provider shall also provide the normal monthly

monitoring services and the de-installation without charge to

the offender and seek reimbursement from the Indigent BAIID

Fund. Any other monetary charges, such as a lockout fee or

reset fee, shall be the responsibility of the MDDP holder. A

BAIID provider may not seek a security deposit from the

Indigent BAIID Fund.

(d) MDDP information shall be available only to the courts,

police officers, and the Secretary, except during the actual

period the MDDP is valid, during which time it shall be a

public record.

(e) (Blank).

(f) (Blank).

(g) The Secretary shall adopt rules for implementing this

Section. The rules adopted shall address issues including, but

not limited to: compliance with the requirements of the MDDP;

methods for determining compliance with those requirements;

the consequences of noncompliance with those requirements;

what constitutes a violation of the MDDP; methods for

determining indigency; and the duties of a person or entity

that supplies the ignition interlock device.

(h) The rules adopted under subsection (g) shall provide,

at a minimum, that the person is not in compliance with the

requirements of the MDDP if he or she:

(1) tampers or attempts to tamper with or circumvent

the proper operation of the ignition interlock device;

(2) provides valid breath samples that register blood

alcohol levels in excess of the number of times allowed

under the rules;

(3) fails to provide evidence sufficient to satisfy the

Secretary that the ignition interlock device has been

installed in the designated vehicle or vehicles; or

(4) fails to follow any other applicable rules adopted

by the Secretary.

(i) Any person or entity that supplies an ignition

interlock device as provided under this Section shall, in

addition to supplying only those devices which fully comply

with all the rules adopted under subsection (g), provide the

Secretary, within 7 days of inspection, all monitoring reports

of each person who has had an ignition interlock device

installed. These reports shall be furnished in a manner or form

as prescribed by the Secretary.

(j) Upon making a determination that a violation of the

requirements of the MDDP has occurred, the Secretary shall

extend the summary suspension period for an additional 3 months

beyond the originally imposed summary suspension period,

during which time the person shall only be allowed to drive

vehicles equipped with an ignition interlock device; provided

further there are no limitations on the total number of times

the summary suspension may be extended. The Secretary may,

however, limit the number of extensions imposed for violations

occurring during any one monitoring period, as set forth by

rule. Any person whose summary suspension is extended pursuant

to this Section shall have the right to contest the extension

through a hearing with the Secretary, pursuant to Section 2-118

of this Code. If the summary suspension has already terminated

prior to the Secretary receiving the monitoring report that

shows a violation, the Secretary shall be authorized to suspend

the person's driving privileges for 3 months, provided that the

Secretary may, by rule, limit the number of suspensions to be

entered pursuant to this paragraph for violations occurring

during any one monitoring period. Any person whose license is

suspended pursuant to this paragraph, after the summary

suspension had already terminated, shall have the right to

contest the suspension through a hearing with the Secretary,

pursuant to Section 2-118 of this Code. The only permit the

person shall be eligible for during this new suspension period

is a MDDP.

(k) A person who has had his or her summary suspension

extended for the third time, or has any combination of 3

extensions and new suspensions, entered as a result of a

violation that occurred while holding the MDDP, so long as the

extensions and new suspensions relate to the same summary

suspension, shall have his or her vehicle impounded for a

period of 30 days, at the person's own expense. A person who

has his or her summary suspension extended for the fourth time,

or has any combination of 4 extensions and new suspensions,

entered as a result of a violation that occurred while holding

the MDDP, so long as the extensions and new suspensions relate

to the same summary suspension, shall have his or her vehicle

subject to seizure and forfeiture. The Secretary shall notify

the prosecuting authority of any third or fourth extensions or

new suspension entered as a result of a violation that occurred

while the person held a MDDP. Upon receipt of the notification,

the prosecuting authority shall impound or forfeit the vehicle.

The impoundment or forfeiture of a vehicle shall be conducted

pursuant to the procedure specified in Article 36 of the

Criminal Code of 2012.

(l) A person whose driving privileges have been suspended

under Section 11-501.1 of this Code and who had a MDDP that was

cancelled, or would have been cancelled had notification of a

violation been received prior to expiration of the MDDP,

pursuant to subsection (c-1) of this Section, shall not be

eligible for reinstatement when the summary suspension is

scheduled to terminate. Instead, the person's driving

privileges shall be suspended for a period of not less than

twice the original summary suspension period, or for the length

of any extensions entered under subsection (j), whichever is

longer. During the period of suspension, the person shall be

eligible only to apply for a restricted driving permit. If a

restricted driving permit is granted, the offender may only

operate vehicles equipped with a BAIID in accordance with this

Section.

(m) Any person or entity that supplies an ignition

interlock device under this Section shall, for each ignition

interlock device installed, pay 5% of the total gross revenue

received for the device, including monthly monitoring fees,

into the Indigent BAIID Fund. This 5% shall be clearly

indicated as a separate surcharge on each invoice that is

issued. The Secretary shall conduct an annual review of the

fund to determine whether the surcharge is sufficient to

provide for indigent users. The Secretary may increase or

decrease this surcharge requirement as needed.

(n) Any person or entity that supplies an ignition

interlock device under this Section that is requested to

provide an ignition interlock device to a person who presents

written documentation of indigency from the Secretary, as

provided in subsection (c-5) of this Section, shall install the

device on the person's vehicle without charge to the person and

shall seek reimbursement from the Indigent BAIID Fund.

(o) The Indigent BAIID Fund is created as a special fund in

the State treasury. The Secretary shall, subject to

appropriation by the General Assembly, use all money in the

Indigent BAIID Fund to reimburse ignition interlock device

providers who have installed devices in vehicles of indigent

persons. The Secretary shall make payments to such providers

every 3 months. If the amount of money in the fund at the time

payments are made is not sufficient to pay all requests for

reimbursement submitted during that 3 month period, the

Secretary shall make payments on a pro-rata basis, and those

payments shall be considered payment in full for the requests

submitted.

(p) The Monitoring Device Driving Permit Administration

Fee Fund is created as a special fund in the State treasury.

The Secretary shall, subject to appropriation by the General

Assembly, use the money paid into this fund to offset its

administrative costs for administering MDDPs.

(q) The Secretary is authorized to prescribe such forms as

it deems necessary to carry out the provisions of this Section.

(Source: P.A. 101-363, eff. 8-9-19.)

(625 ILCS 5/11-501.10)

(Section scheduled to be repealed on July 1, 2021)

Sec. 11-501.10. DUI Cannabis Task Force.

(a) The DUI Cannabis Task Force is hereby created to study

the issue of driving under the influence of cannabis. The Task

Force shall consist of the following members:

(1) The Director of State Police, or his or her

designee, who shall serve as chair;

(2) The Secretary of State, or his or her designee;

(3) The President of the Illinois State's Attorneys

Association, or his or her designee;

(4) The President of the Illinois Association of

Criminal Defense Lawyers, or his or her designee;

(5) One member appointed by the Speaker of the House of

Representatives;

(6) One member appointed by the Minority Leader of the

House of Representatives;

(7) One member appointed by the President of the

Senate;

(8) One member appointed by the Minority Leader of the

Senate;

(9) One member of an organization dedicated to end

drunk driving and drugged driving;

(10) The president of a statewide bar association,

appointed by the Governor; and

(11) One member of a statewide organization

representing civil and constitutional rights, appointed by

the Governor;

(12) One member of a statewide association

representing chiefs of police, appointed by the Governor;

and

(13) One member of a statewide association

representing sheriffs, appointed by the Governor.

(b) The members of the Task Force shall serve without

compensation.

(c) The Task Force shall examine best practices in the area

of driving under the influence of cannabis enforcement,

including examining emerging technology in roadside testing.

(d) The Task Force shall meet no fewer than 3 times and

shall present its report and recommendations on improvements to

enforcement of driving under the influence of cannabis, in

electronic format, to the Governor and the General Assembly no

later than July 1, 2020.

(e) The Department of State Police shall provide

administrative support to the Task Force as needed. The

Sentencing Policy Advisory Council shall provide data on

driving under the influence of cannabis offenses and other data

to the Task Force as needed.

(f) This Section is repealed on July 1, 2021.

(Source: P.A. 101-27, eff. 6-25-19.)

Section 35. The Cannabis Control Act is amended by changing

Sections 3, 4, 5, 5.1, and 8 as follows:

(720 ILCS 550/3) (from Ch. 56 1/2, par. 703)

Sec. 3. As used in this Act, unless the context otherwise

requires:

(a) "Cannabis" includes marihuana, hashish and other

substances which are identified as including any parts of the

plant Cannabis Sativa, whether growing or not; the seeds

thereof, the resin extracted from any part of such plant; and

any compound, manufacture, salt, derivative, mixture, or

preparation of such plant, its seeds, or resin, including

tetrahydrocannabinol (THC) and all other cannabinol

derivatives, including its naturally occurring or

synthetically produced ingredients, whether produced directly

or indirectly by extraction, or independently by means of

chemical synthesis or by a combination of extraction and

chemical synthesis; but shall not include the mature stalks of

such plant, fiber produced from such stalks, oil or cake made

from the seeds of such plant, any other compound, manufacture,

salt, derivative, mixture, or preparation of such mature stalks

(except the resin extracted therefrom), fiber, oil or cake, or

the sterilized seed of such plant which is incapable of

germination. "Cannabis" does not include industrial hemp as

defined and authorized under the Industrial Hemp Act.

(b) "Casual delivery" means the delivery of not more than

10 grams of any substance containing cannabis without

consideration.

(c) "Department" means the Illinois Department of Human

Services (as successor to the Department of Alcoholism and

Substance Abuse) or its successor agency.

(d) "Deliver" or "delivery" means the actual, constructive

or attempted transfer of possession of cannabis, with or

without consideration, whether or not there is an agency

relationship.

(e) "Department of State Police" means the Department of

State Police of the State of Illinois or its successor agency.

(f) "Director" means the Director of the Department of

State Police or his designated agent.

(g) "Local authorities" means a duly organized State,

county, or municipal peace unit or police force.

(h) "Manufacture" means the production, preparation,

propagation, compounding, conversion or processing of

cannabis, either directly or indirectly, by extraction from

substances of natural origin, or independently by means of

chemical synthesis, or by a combination of extraction and

chemical synthesis, and includes any packaging or repackaging

of cannabis or labeling of its container, except that this term

does not include the preparation, compounding, packaging, or

labeling of cannabis as an incident to lawful research,

teaching, or chemical analysis and not for sale.

(i) "Person" means any individual, corporation, government

or governmental subdivision or agency, business trust, estate,

trust, partnership or association, or any other entity.

(j) "Produce" or "production" means planting, cultivating,

tending or harvesting.

(k) "State" includes the State of Illinois and any state,

district, commonwealth, territory, insular possession thereof,

and any area subject to the legal authority of the United

States of America.

(l) "Subsequent offense" means an offense under this Act,

the offender of which, prior to his conviction of the offense,

has at any time been convicted under this Act or under any laws

of the United States or of any state relating to cannabis, or

any controlled substance as defined in the Illinois Controlled

Substances Act.

(Source: P.A. 100-1091, eff. 8-26-18.)

(720 ILCS 550/4) (from Ch. 56 1/2, par. 704)

Sec. 4. Except as otherwise provided in the Cannabis

Regulation and Tax Act and the Industrial Hemp Act, it is

unlawful for any person knowingly to possess cannabis.

Any person who violates this Section with respect to:

(a) not more than 10 grams of any substance containing

cannabis is guilty of a civil law violation punishable by a

minimum fine of $100 and a maximum fine of $200. The

proceeds of the fine shall be payable to the clerk of the

circuit court. Within 30 days after the deposit of the

fine, the clerk shall distribute the proceeds of the fine

as follows:

(1) $10 of the fine to the circuit clerk and $10 of

the fine to the law enforcement agency that issued the

citation; the proceeds of each $10 fine distributed to

the circuit clerk and each $10 fine distributed to the

law enforcement agency that issued the citation for the

violation shall be used to defer the cost of automatic

expungements under paragraph (2.5) of subsection (a)

of Section 5.2 of the Criminal Identification Act;

(2) $15 to the county to fund drug addiction

services;

(3) $10 to the Office of the State's Attorneys

Appellate Prosecutor for use in training programs;

(4) $10 to the State's Attorney; and

(5) any remainder of the fine to the law

enforcement agency that issued the citation for the

violation.

With respect to funds designated for the Department of

State Police, the moneys shall be remitted by the circuit

court clerk to the Department of State Police within one

month after receipt for deposit into the State Police

Operations Assistance Fund. With respect to funds

designated for the Department of Natural Resources, the

Department of Natural Resources shall deposit the moneys

into the Conservation Police Operations Assistance Fund;

(b) more than 10 grams but not more than 30 grams of

any substance containing cannabis is guilty of a Class B

misdemeanor;

(c) more than 30 grams but not more than 100 grams of

any substance containing cannabis is guilty of a Class A

misdemeanor; provided, that if any offense under this

subsection (c) is a subsequent offense, the offender shall

be guilty of a Class 4 felony;

(d) more than 100 grams but not more than 500 grams of

any substance containing cannabis is guilty of a Class 4

felony; provided that if any offense under this subsection

(d) is a subsequent offense, the offender shall be guilty

of a Class 3 felony;

(e) more than 500 grams but not more than 2,000 grams

of any substance containing cannabis is guilty of a Class 3

felony;

(f) more than 2,000 grams but not more than 5,000 grams

of any substance containing cannabis is guilty of a Class 2

felony;

(g) more than 5,000 grams of any substance containing

cannabis is guilty of a Class 1 felony.

(Source: P.A. 101-27, eff. 6-25-19.)

(720 ILCS 550/5) (from Ch. 56 1/2, par. 705)

Sec. 5. Except as otherwise provided in the Cannabis

Regulation and Tax Act and the Industrial Hemp Act, it is

unlawful for any person knowingly to manufacture, deliver, or

possess with intent to deliver, or manufacture, cannabis. Any

person who violates this Section with respect to:

(a) not more than 2.5 grams of any substance containing

cannabis is guilty of a Class B misdemeanor;

(b) more than 2.5 grams but not more than 10 grams of

any substance containing cannabis is guilty of a Class A

misdemeanor;

(c) more than 10 grams but not more than 30 grams of

any substance containing cannabis is guilty of a Class 4

felony;

(d) more than 30 grams but not more than 500 grams of

any substance containing cannabis is guilty of a Class 3

felony for which a fine not to exceed $50,000 may be

imposed;

(e) more than 500 grams but not more than 2,000 grams

of any substance containing cannabis is guilty of a Class 2

felony for which a fine not to exceed $100,000 may be

imposed;

(f) more than 2,000 grams but not more than 5,000 grams

of any substance containing cannabis is guilty of a Class 1

felony for which a fine not to exceed $150,000 may be

imposed;

(g) more than 5,000 grams of any substance containing

cannabis is guilty of a Class X felony for which a fine not

to exceed $200,000 may be imposed.

(Source: P.A. 101-27, eff. 6-25-19.)

(720 ILCS 550/5.1) (from Ch. 56 1/2, par. 705.1)

Sec. 5.1. Cannabis trafficking.

(a) Except for purposes authorized by this Act, the

Industrial Hemp Act, or the Cannabis Regulation and Tax Act,

any person who knowingly brings or causes to be brought into

this State for the purpose of manufacture or delivery or with

the intent to manufacture or deliver 2,500 grams or more of

cannabis in this State or any other state or country is guilty

of cannabis trafficking.

(b) A person convicted of cannabis trafficking shall be

sentenced to a term of imprisonment not less than twice the

minimum term and fined an amount as authorized by subsection

(f) or (g) of Section 5 of this Act, based upon the amount of

cannabis brought or caused to be brought into this State, and

not more than twice the maximum term of imprisonment and fined

twice the amount as authorized by subsection (f) or (g) of

Section 5 of this Act, based upon the amount of cannabis

brought or caused to be brought into this State.

(Source: P.A. 101-27, eff. 6-25-19.)

(720 ILCS 550/8) (from Ch. 56 1/2, par. 708)

Sec. 8. Except as otherwise provided in the Cannabis

Regulation and Tax Act and the Industrial Hemp Act, it is

unlawful for any person knowingly to produce the Cannabis

sativa plant or to possess such plants unless production or

possession has been authorized pursuant to the provisions of

Section 11 or 15.2 of the Act. Any person who violates this

Section with respect to production or possession of:

(a) Not more than 5 plants is guilty of a civil

violation punishable by a minimum fine of $100 and a

maximum fine of $200. The proceeds of the fine are payable

to the clerk of the circuit court. Within 30 days after the

deposit of the fine, the clerk shall distribute the

proceeds of the fine as follows:

(1) $10 of the fine to the circuit clerk and $10 of

the fine to the law enforcement agency that issued the

citation; the proceeds of each $10 fine distributed to

the circuit clerk and each $10 fine distributed to the

law enforcement agency that issued the citation for the

violation shall be used to defer the cost of automatic

expungements under paragraph (2.5) of subsection (a)

of Section 5.2 of the Criminal Identification Act;

(2) $15 to the county to fund drug addiction

services;

(3) $10 to the Office of the State's Attorneys

Appellate Prosecutor for use in training programs;

(4) $10 to the State's Attorney; and

(5) any remainder of the fine to the law

enforcement agency that issued the citation for the

violation.

With respect to funds designated for the Department of

State Police, the moneys shall be remitted by the circuit

court clerk to the Department of State Police within one

month after receipt for deposit into the State Police

Operations Assistance Fund. With respect to funds

designated for the Department of Natural Resources, the

Department of Natural Resources shall deposit the moneys

into the Conservation Police Operations Assistance Fund.

(b) More than 5, but not more than 20 plants, is guilty

of a Class 4 felony.

(c) More than 20, but not more than 50 plants, is

guilty of a Class 3 felony.

(d) More than 50, but not more than 200 plants, is

guilty of a Class 2 felony for which a fine not to exceed

$100,000 may be imposed and for which liability for the

cost of conducting the investigation and eradicating such

plants may be assessed. Compensation for expenses incurred

in the enforcement of this provision shall be transmitted

to and deposited in the treasurer's office at the level of

government represented by the Illinois law enforcement

agency whose officers or employees conducted the

investigation or caused the arrest or arrests leading to

the prosecution, to be subsequently made available to that

law enforcement agency as expendable receipts for use in

the enforcement of laws regulating controlled substances

and cannabis. If such seizure was made by a combination of

law enforcement personnel representing different levels of

government, the court levying the assessment shall

determine the allocation of such assessment. The proceeds

of assessment awarded to the State treasury shall be

deposited in a special fund known as the Drug Traffic

Prevention Fund.

(e) More than 200 plants is guilty of a Class 1 felony

for which a fine not to exceed $100,000 may be imposed and

for which liability for the cost of conducting the

investigation and eradicating such plants may be assessed.

Compensation for expenses incurred in the enforcement of

this provision shall be transmitted to and deposited in the

treasurer's office at the level of government represented

by the Illinois law enforcement agency whose officers or

employees conducted the investigation or caused the arrest

or arrests leading to the prosecution, to be subsequently

made available to that law enforcement agency as expendable

receipts for use in the enforcement of laws regulating

controlled substances and cannabis. If such seizure was

made by a combination of law enforcement personnel

representing different levels of government, the court

levying the assessment shall determine the allocation of

such assessment. The proceeds of assessment awarded to the

State treasury shall be deposited in a special fund known

as the Drug Traffic Prevention Fund.

(Source: P.A. 101-27, eff. 6-25-19.)

Section 40. The Drug Paraphernalia Control Act is amended

by changing Sections 2, 3.5, 4, and 6 as follows:

(720 ILCS 600/2) (from Ch. 56 1/2, par. 2102)

Sec. 2. As used in this Act, unless the context otherwise

requires:

(a) The term "cannabis" shall have the meaning ascribed to

it in Section 3 of the Cannabis Control Act, as if that

definition were incorporated herein.

(b) The term "controlled substance" shall have the meaning

ascribed to it in Section 102 of the Illinois Controlled

Substances Act, as if that definition were incorporated herein.

(c) "Deliver" or "delivery" means the actual, constructive

or attempted transfer of possession, with or without

consideration, whether or not there is an agency relationship.

(d) "Drug paraphernalia" means all equipment, products and

materials of any kind, other than methamphetamine

manufacturing materials as defined in Section 10 of the

Methamphetamine Control and Community Protection Act and

cannabis paraphernalia as defined in Section 1-10 of the

Cannabis Regulation and Tax Act, which are intended to be used

unlawfully in planting, propagating, cultivating, growing,

harvesting, manufacturing, compounding, converting, producing,

processing, preparing, testing, analyzing, packaging,

repackaging, storing, containing, concealing, injecting,

ingesting, inhaling or otherwise introducing into the human

body cannabis or a controlled substance in violation of the

Cannabis Control Act, the Illinois Controlled Substances Act,

or the Methamphetamine Control and Community Protection Act or

a synthetic drug product or misbranded drug in violation of the

Illinois Food, Drug and Cosmetic Act. It includes, but is not

limited to:

(1) kits intended to be used unlawfully in

manufacturing, compounding, converting, producing,

processing or preparing cannabis or a controlled

substance;

(2) isomerization devices intended to be used

unlawfully in increasing the potency of any species of

plant which is cannabis or a controlled substance;

(3) testing equipment intended to be used unlawfully in

a private home for identifying or in analyzing the

strength, effectiveness or purity of cannabis or

controlled substances;

(4) diluents and adulterants intended to be used

unlawfully for cutting cannabis or a controlled substance

by private persons;

(5) objects intended to be used unlawfully in

ingesting, inhaling, or otherwise introducing cannabis,

cocaine, hashish, hashish oil, or a synthetic drug product

or misbranded drug in violation of the Illinois Food, Drug

and Cosmetic Act into the human body including, where

applicable, the following items:

(A) water pipes;

(B) carburetion tubes and devices;

(C) smoking and carburetion masks;

(D) miniature cocaine spoons and cocaine vials;

(E) carburetor pipes;

(F) electric pipes;

(G) air-driven pipes;

(H) chillums;

(I) bongs;

(J) ice pipes or chillers;

(6) any item whose purpose, as announced or described

by the seller, is for use in violation of this Act.

(Source: P.A. 97-872, eff. 7-31-12.)

(720 ILCS 600/3.5)

Sec. 3.5. Possession of drug paraphernalia.

(a) A person who knowingly possesses an item of drug

paraphernalia with the intent to use it in ingesting, inhaling,

or otherwise introducing cannabis or a controlled substance

into the human body, or in preparing cannabis or a controlled

substance for that use, is guilty of a Class A misdemeanor for

which the court shall impose a minimum fine of $750 in addition

to any other penalty prescribed for a Class A misdemeanor. This

subsection (a) does not apply to a person who is legally

authorized to possess hypodermic syringes or needles under the

Hypodermic Syringes and Needles Act.

(b) In determining intent under subsection (a), the trier

of fact may take into consideration the proximity of the

cannabis or controlled substances to drug paraphernalia or the

presence of cannabis or a controlled substance on the drug

paraphernalia.

(c) If a person violates subsection (a) of Section 4 of the

Cannabis Control Act, the penalty for possession of any drug

paraphernalia seized during the violation for that offense

shall be a civil law violation punishable by a minimum fine of

$100 and a maximum fine of $200. The proceeds of the fine shall

be payable to the clerk of the circuit court. Within 30 days

after the deposit of the fine, the clerk shall distribute the

proceeds of the fine as follows:

(1) $10 of the fine to the circuit clerk and $10 of the

fine to the law enforcement agency that issued the

citation; the proceeds of each $10 fine distributed to the

circuit clerk and each $10 fine distributed to the law

enforcement agency that issued the citation for the

violation shall be used to defer the cost of automatic

expungements under paragraph (2.5) of subsection (a) of

Section 5.2 of the Criminal Identification Act;

(2) $15 to the county to fund drug addiction services;

(3) $10 to the Office of the State's Attorneys

Appellate Prosecutor for use in training programs;

(4) $10 to the State's Attorney; and

(5) any remainder of the fine to the law enforcement

agency that issued the citation for the violation.

With respect to funds designated for the Department of

State Police, the moneys shall be remitted by the circuit court

clerk to the Department of State Police within one month after

receipt for deposit into the State Police Operations Assistance

Fund. With respect to funds designated for the Department of

Natural Resources, the Department of Natural Resources shall

deposit the moneys into the Conservation Police Operations

Assistance Fund.

(Source: P.A. 99-697, eff. 7-29-16.)

(720 ILCS 600/4) (from Ch. 56 1/2, par. 2104)

Sec. 4. Exemptions. This Act does not apply to:

(a) Items used in the preparation, compounding,

packaging, labeling, or other use of cannabis or a

controlled substance as an incident to lawful research,

teaching, or chemical analysis and not for sale.

(b) Items historically and customarily used in

connection with the planting, propagating, cultivating,

growing, harvesting, manufacturing, compounding,

converting, producing, processing, preparing, testing,

analyzing, packaging, repackaging, storing, containing,

concealing, injecting, ingesting, or inhaling of cannabis,

tobacco, or any other lawful substance.

Items exempt under this subsection include, but are not

limited to, garden hoes, rakes, sickles, baggies, tobacco

pipes, and cigarette-rolling papers.

(c) Items listed in Section 2 of this Act which are

used for decorative purposes, when such items have been

rendered completely inoperable or incapable of being used

for any illicit purpose prohibited by this Act.

(d) A person who is legally authorized to possess

hypodermic syringes or needles under the Hypodermic

Syringes and Needles Act.

In determining whether or not a particular item is exempt under

this Section, the trier of fact should consider, in addition to

all other logically relevant factors, the following:

(1) the general, usual, customary, and historical use

to which the item involved has been put;

(2) expert evidence concerning the ordinary or

customary use of the item and the effect of any

peculiarity in the design or engineering of the device

upon its functioning;

(3) any written instructions accompanying the delivery

of the item concerning the purposes or uses to which

the item can or may be put;

(4) any oral instructions provided by the seller of the

item at the time and place of sale or commercial

delivery;

(5) any national or local advertising concerning the

design, purpose or use of the item involved, and the

entire context in which such advertising occurs;

(6) the manner, place and circumstances in which the

item was displayed for sale, as well as any item or

items displayed for sale or otherwise exhibited upon

the premises where the sale was made;

(7) whether the owner or anyone in control of the

object is a legitimate supplier of like or related

items to the community, such as a licensed distributor

or dealer of cannabis or tobacco products;

(8) the existence and scope of legitimate uses for the

object in the community.

(Source: P.A. 95-331, eff. 8-21-07.)

(720 ILCS 600/6) (from Ch. 56 1/2, par. 2106)

Sec. 6. This Act is intended to be used solely for the

suppression of the commercial traffic in and possession of

items that, within the context of the sale or offering for

sale, or possession, are clearly and beyond a reasonable doubt

intended for the illegal and unlawful use of cannabis or

controlled substances. To this end all reasonable and

common-sense inferences shall be drawn in favor of the

legitimacy of any transaction or item.

(Source: P.A. 93-526, eff. 8-12-03.)

Section 45. The Statewide Grand Jury Act is amended by

changing Sections 2 and 3 as follows:

(725 ILCS 215/2) (from Ch. 38, par. 1702)

Sec. 2. (a) County grand juries and State's Attorneys have

always had and shall continue to have primary responsibility

for investigating, indicting, and prosecuting persons who

violate the criminal laws of the State of Illinois. However, in

recent years organized terrorist activity directed against

innocent civilians and certain criminal enterprises have

developed that require investigation, indictment, and

prosecution on a statewide or multicounty level. The criminal

enterprises exist as a result of the allure of profitability

present in narcotic activity, the unlawful sale and transfer of

firearms, and streetgang related felonies and organized

terrorist activity is supported by the contribution of money

and expert assistance from geographically diverse sources. In

order to shut off the life blood of terrorism and weaken or

eliminate the criminal enterprises, assets, and property used

to further these offenses must be frozen, and any profit must

be removed. State statutes exist that can accomplish that goal.

Among them are the offense of money laundering, the Cannabis

and Controlled Substances Tax Act, violations of Article 29D of

the Criminal Code of 1961 or the Criminal Code of 2012, the

Narcotics Profit Forfeiture Act, and gunrunning. Local

prosecutors need investigative personnel and specialized

training to attack and eliminate these profits. In light of the

transitory and complex nature of conduct that constitutes these

criminal activities, the many diverse property interests that

may be used, acquired directly or indirectly as a result of

these criminal activities, and the many places that illegally

obtained property may be located, it is the purpose of this Act

to create a limited, multicounty Statewide Grand Jury with

authority to investigate, indict, and prosecute: narcotic

activity, including cannabis and controlled substance

trafficking, narcotics racketeering, money laundering,

violations of the Cannabis and Controlled Substances Tax Act,

and violations of Article 29D of the Criminal Code of 1961 or

the Criminal Code of 2012; the unlawful sale and transfer of

firearms; gunrunning; and streetgang related felonies.

(b) A Statewide Grand Jury may also investigate, indict,

and prosecute violations facilitated by the use of a computer

of any of the following offenses: indecent solicitation of a

child, sexual exploitation of a child, soliciting for a

juvenile prostitute, keeping a place of juvenile prostitution,

juvenile pimping, child pornography, aggravated child

pornography, or promoting juvenile prostitution except as

described in subdivision (a)(4) of Section 11-14.4 of the

Criminal Code of 1961 or the Criminal Code of 2012.

(Source: P.A. 96-1551, eff. 7-1-11; 97-1150, eff. 1-25-13.)

(725 ILCS 215/3) (from Ch. 38, par. 1703)

Sec. 3. Written application for the appointment of a

Circuit Judge to convene and preside over a Statewide Grand

Jury, with jurisdiction extending throughout the State, shall

be made to the Chief Justice of the Supreme Court. Upon such

written application, the Chief Justice of the Supreme Court

shall appoint a Circuit Judge from the circuit where the

Statewide Grand Jury is being sought to be convened, who shall

make a determination that the convening of a Statewide Grand

Jury is necessary.

In such application the Attorney General shall state that

the convening of a Statewide Grand Jury is necessary because of

an alleged offense or offenses set forth in this Section

involving more than one county of the State and identifying any

such offense alleged; and

(a) that he or she believes that the grand jury

function for the investigation and indictment of the

offense or offenses cannot effectively be performed by a

county grand jury together with the reasons for such

belief, and

(b)(1) that each State's Attorney with jurisdiction

over an offense or offenses to be investigated has

consented to the impaneling of the Statewide Grand Jury, or

(2) if one or more of the State's Attorneys having

jurisdiction over an offense or offenses to be investigated

fails to consent to the impaneling of the Statewide Grand

Jury, the Attorney General shall set forth good cause for

impaneling the Statewide Grand Jury.

If the Circuit Judge determines that the convening of a

Statewide Grand Jury is necessary, he or she shall convene and

impanel the Statewide Grand Jury with jurisdiction extending

throughout the State to investigate and return indictments:

(a) For violations of any of the following or for any

other criminal offense committed in the course of violating

any of the following: Article 29D of the Criminal Code of

1961 or the Criminal Code of 2012, the Illinois Controlled

Substances Act, the Cannabis Control Act, the

Methamphetamine Control and Community Protection Act, or

the Narcotics Profit Forfeiture Act, or the Cannabis and

Controlled Substances Tax Act; a streetgang related felony

offense; Section 24-2.1, 24-2.2, 24-3, 24-3A, 24-3.1,

24-3.3, 24-3.4, 24-4, or 24-5 or subsection 24-1(a)(4),

24-1(a)(6), 24-1(a)(7), 24-1(a)(9), 24-1(a)(10), or

24-1(c) of the Criminal Code of 1961 or the Criminal Code

of 2012; or a money laundering offense; provided that the

violation or offense involves acts occurring in more than

one county of this State; and

(a-5) For violations facilitated by the use of a

computer, including the use of the Internet, the World Wide

Web, electronic mail, message board, newsgroup, or any

other commercial or noncommercial on-line service, of any

of the following offenses: indecent solicitation of a

child, sexual exploitation of a child, soliciting for a

juvenile prostitute, keeping a place of juvenile

prostitution, juvenile pimping, child pornography,

aggravated child pornography, or promoting juvenile

prostitution except as described in subdivision (a)(4) of

Section 11-14.4 of the Criminal Code of 1961 or the

Criminal Code of 2012; and

(b) For the offenses of perjury, subornation of

perjury, communicating with jurors and witnesses, and

harassment of jurors and witnesses, as they relate to

matters before the Statewide Grand Jury.

"Streetgang related" has the meaning ascribed to it in

Section 10 of the Illinois Streetgang Terrorism Omnibus

Prevention Act.

Upon written application by the Attorney General for the

convening of an additional Statewide Grand Jury, the Chief

Justice of the Supreme Court shall appoint a Circuit Judge from

the circuit for which the additional Statewide Grand Jury is

sought. The Circuit Judge shall determine the necessity for an

additional Statewide Grand Jury in accordance with the

provisions of this Section. No more than 2 Statewide Grand

Juries may be empaneled at any time.

(Source: P.A. 96-1551, eff. 7-1-11; 97-1150, eff. 1-25-13.)

Section 99. Effective date. This Act takes effect upon

becoming law.