Rep. Will Guzzardi

Filed: 5/31/2026

 

 


 

 


 
10400SB3222ham002LRB104 19119 BDA 38710 a

1
AMENDMENT TO SENATE BILL 3222

2    AMENDMENT NO. ______. Amend Senate Bill 3222 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Short title. This Act may be cited as the
5Illinois Hemp Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Cannabis" has the meaning given to that term in Section 3
8of the Cannabis Control Act.
9    "Container" means the innermost wrapping, packaging, or
10vessel in direct contact with a final hemp-derived cannabinoid
11product in which the product is enclosed for retail sale to
12consumers, such as a jar, bottle, bag, box, packet, can,
13carton, or cartridge. "Container" includes any additional
14information and specificity as published by the United States
15Food and Drug Administration or may be changed by rule by the
16Department of Agriculture. "Container" does not include bulk

 

 

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1shipping containers or outer wrappings that are not essential
2for the final retail delivery or sale to an end consumer for
3personal or household use.
4    "Department" means the Department of Agriculture.
5    "Director" means the Director of Agriculture.
6    "Final consumer hemp cannabinoid product" means a
7consumable or topical hemp-derived cannabinoid product that is
8permitted to be sold to consumers in the State, that meets the
9requirements of Section 35 of this Act, and that:
10        (1) does not contain any cannabinoids that are
11    incapable of being naturally produced by a Cannabis sativa
12    L. plant;
13        (2) does not contain any cannabinoids that are capable
14    of being naturally produced by a Cannabis sativa L. plant
15    but were synthesized or manufactured outside of the plant;
16    and
17        (3) does not contain more than a per-container total
18    of 0.4 milligrams of total tetrahydrocannabinols,
19    including tetrahydrocannabinolic acid and any other
20    cannabinoids that have similar effects or are marketed to
21    have similar effects on humans or animals as a
22    tetrahydrocannabinol as established under Section 15 of
23    this Act.
24    "Hemp" means the plant Cannabis sativa L. and any part of
25that plant, including the seeds thereof and all derivatives,
26extracts, cannabinoids, isomers, acids, salts, and salts of

 

 

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1isomers, whether growing or not, with a total
2tetrahydrocannabinol concentration, including
3tetrahydrocannabinolic acid, of not more than 0.3% on a
4dry-weight basis. "Hemp" includes industrial hemp. "Hemp" does
5not include any of the following:
6        (1) any viable seeds from a Cannabis sativa L. plant
7    that exceeds a total tetrahydrocannabinols concentration,
8    including tetrahydrocannabinolic acid, of 0.3% in the
9    plant on a dry weight basis;
10        (2) any intermediate hemp-derived cannabinoid product
11    containing any of the following:
12            (A) cannabinoids that are incapable of being
13        naturally produced by a Cannabis sativa L. plant;
14            (B) cannabinoids that are capable of being
15        naturally produced by a Cannabis sativa L. plant but
16        were synthesized or manufactured outside the plant;
17            (C) more than a combined total
18        tetrahydrocannabinol concentration of 0.3%, including
19        tetrahydrocannabinolic acid and any other cannabinoids
20        that have similar effects or are marketed to have
21        similar effects on humans or animals as a
22        tetrahydrocannabinol, as established under Section 15
23        of this Act;
24        (3) any intermediate hemp-derived cannabinoid product
25    that is marketed or sold as a final product or marketed or
26    sold directly to an end consumer for personal or household

 

 

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1    use; or
2        (4) any final hemp-derived cannabinoid product
3    containing any of the following:
4            (A) cannabinoids that are incapable of being
5        naturally produced by a Cannabis sativa L. plant;
6            (B) cannabinoids that are capable of being
7        naturally produced by a Cannabis sativa L. plant and
8        were synthesized or manufactured outside the plant;
9            (C) more than a per-container total of 0.4
10        milligrams of total tetrahydrocannabinols, including
11        tetrahydrocannabinolic acid and any other cannabinoids
12        that have similar effects or are marketed to have
13        similar effects on humans or animals as a
14        tetrahydrocannabinol as established under Section 15
15        of this Act.
16    "Hemp cultivation licensee" means a person licensed by the
17Department of Agriculture to cultivate hemp and industrial
18hemp pursuant to this Act and federal law.
19    "Hemp-derived cannabinoid product" means any intermediate
20or final product derived from hemp that contains cannabinoids
21in any form and is intended for human or animal use through any
22means of application or administration, including inhalation,
23ingestion, or topical application.
24    "Hemp product manufacturer" means a facility operated by a
25person licensed by the Department to obtain hemp or
26intermediate hemp-derived cannabinoid product to manufacture

 

 

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1and produce hemp-derived cannabinoid products.
2    "Hemp production plan" means a plan submitted by the
3Department to the Secretary of the United States Department of
4Agriculture pursuant to the federal Agriculture Improvement
5Act of 2018, Public Law 115-334, and consistent with the
6Domestic Hemp Production Program established under 7 CFR Part
7990, through which the Department establishes its authority to
8have primary regulatory authority over the production of hemp.
9    "Industrial hemp" means:
10        (1) hemp grown for the use of the stalk of the plant,
11    fiber produced from the stalk, or any other
12    non-cannabinoid derivative, mixture, preparation, or
13    manufacture of the stalk;
14        (2) hemp grown for the use of the whole grain, oil,
15    cake, nut, hull, or any other non-cannabinoid compound,
16    derivative, mixture, preparation, or manufacture of the
17    seeds of the plant;
18        (3) hemp grown for the purpose of producing
19    microgreens or other edible hemp leaf products intended
20    for human consumption that are derived from an immature
21    hemp plant grown from seeds that do not exceed 0.3% total
22    tetrahydrocannabinol;
23        (4) hemp that does not enter the stream of commerce
24    and is intended to support hemp research at an institution
25    of higher education, as defined in Section 101 of the
26    Higher Education Act of 1965 (20 U.S.C. 1001), or at an

 

 

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1    independent research institute; or
2        (5) hemp grown for the production of a viable seed of
3    the plant produced solely for the production or
4    manufacture of any material described in paragraphs (1)
5    through (4).
6    "Industrial hemp product" means a product derived from
7industrial hemp that does not contain cannabinoids.
8"Industrial hemp processor" means a facility that processes or
9handles raw industrial hemp plant material.
10    "Intermediate hemp-derived cannabinoid product" means a
11hemp-derived cannabinoid product that:
12        (1) is not yet in the final form or preparation
13    marketed or intended to be used or consumed by a human or
14    animal; or
15        (2) is a powder, liquid, tablet, oil, or other product
16    form that is intended or marketed to be mixed, dissolved,
17    formulated, or otherwise added to or prepared with or into
18    any other substance prior to administration or
19    consumption.
20    An intermediate hemp-derived cannabinoid product shall not
21contain: (i) cannabinoids that are incapable of being
22naturally produced by a Cannabis sativa L. plant; (ii)
23cannabinoids that are capable of being naturally produced by a
24Cannabis sativa L. plant but were synthesized or manufactured
25outside of the plant; or (iii) more than a combined total
26tetrahydrocannabinol concentration of 0.3%, including

 

 

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1tetrahydrocannabinolic acid and any other cannabinoids with
2similar effects on humans or animals as tetrahydrocannabinol.
3    "Land area" means a farm, as defined in Section 1-60 of the
4Property Tax Code, in this State or land or facilities under
5the control of an institution of higher education.
6    "Person" means any individual, corporation, government or
7governmental subdivision or agency, business trust, estate,
8trust, partnership, association, or any other entity.
 
9    Section 10. Prohibitions on the sale and distribution of
10hemp products.
11    (a) No person may distribute or sell cannabis, hemp,
12industrial hemp, or any product derived from cannabis, hemp,
13or industrial hemp in this State, except as authorized under
14the Cannabis Regulation and Tax Act, the Compassionate Use of
15Medical Cannabis Act, or this Act, unless the product meets
16the definition of a "final consumer hemp cannabinoid product"
17or an "industrial hemp product".
18    (b) No person may manufacture or produce any product
19derived from hemp or industrial hemp without first obtaining
20an industrial hemp processor registration or a hemp product
21manufacturer license under this Act.
 
22    Section 15. Cannabinoid lists.
23    (a) The following lists shall be used to determine what is
24hemp and what products qualify as a final consumer hemp

 

 

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1cannabinoid product under this Act:
2        (1) Cannabinoids that are considered capable of being
3    naturally produced by a Cannabis sativa L. plant:
4            (A) Cannabigerol (CBG), which includes, but is not
5        limited to:
6                (i) CBGA (Cannabigerolic acid);
7                (ii) CBG (Cannabigerol);
8                (iii) CBGVA (Cannabigerovarinic acid);
9                (iv) CBGV (Cannabigerovarin);
10            (B) Cannabidiol (CBD), which includes, but is not
11        limited to:
12                (i) CBDA (Cannabidiolic acid);
13                (ii) CBD (Cannabidiol);
14                (iii) CBDVA (Cannabidivarinic acid);
15                (iv) CBDV (Cannabidivarin);
16            (C) Delta 9-Tetrahydrocannabinol (THC), which
17        includes, but is not limited to:
18                (i) THCA (Delta 9-Tetrahydrocannabinolic
19            acid);
20                (ii) Delta 9-THC (Delta
21            9-Tetrahydrocannabinol);
22                (iii) THCVA (Tetrahydrocannabivarinic acid);
23                (iv) THCV (Tetrahydrocannabivarin);
24                (v) THCP (Tetrahydrocannabiphorol);
25            (D) Cannabichromene (CBC), which includes, but is
26        not limited to:

 

 

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1                (i) CBCA (Cannabichromenic acid);
2                (ii) CBC (Cannabichromene);
3                (iii) CBCVA (Cannabichromevarinic acid);
4                (iv) CBCV (Cannabichromevarin);
5            (E) Natural degradation and artifact subclasses,
6        which include, but are not limited to:
7                (i) CBN (Cannabinol);
8                (ii) CBNA (Cannabinolic acid);
9                (iii) CBLA (Cannabicyclolic acid);
10                (iv) CBL (Cannabicyclol);
11                (v) CBE (Cannabielsoin);
12                (vi) CBT (Cannabitriol);
13                (vii) HHC (Hexahydrocannabinol);
14            (F) Minor natural isomers and trace compounds,
15        which include, but are not limited to:
16                (i) Delta-8 THC (Delta
17            8-Tetrahydrocannabinol);
18                (ii) Delta-10 THC (Delta
19            10-Tetrahydrocannabinol);
20                (iii) exo-THC (Delta
21            9,11-Tetrahydrocannabinol);
22                (iv) THCA (Tetrahydrocannabinolic acid);
23                (v) THC-C1 (Tetrahydrocannabiorcol); and
24            (G) All cannabinoids that appear on a list of
25        cannabinoids that are known to the federal Food and
26        Drug Administration to be capable of being naturally

 

 

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1        produced by a Cannabis sativa L. plant, as reflected
2        in peer reviewed literature, and that is published by
3        the federal Food and Drug Administration pursuant to 7
4        U.S.C. 1639o.
5        (2) Cannabinoids that are tetrahydrocannabinol class
6    cannabinoids known to be naturally occurring in the
7    Cannabis sativa L. plant:
8            (A) THCA (Delta 9-Tetrahydrocannabinolic acid);
9            (B) THC (Delta 9-Tetrahydrocannabinol);
10            (C) THCV (Tetrahydrocannabivarin);
11            (D) THCVA (Tetrahydrocannabivarin acid);
12            (E) THCP (Tetrahydrocannabiphorol); and
13            (F) All tetrahydrocannabinol class cannabinoids
14        that appear on a list of tetrahydrocannabinol class
15        cannabinoids that are known to the federal Food and
16        Drug Administration to be naturally occurring in the
17        Cannabis sativa L. plant and that are published by the
18        federal Food and Drug Administration pursuant to 7
19        U.S.C. 1639o.
20        (3) Cannabinoids that are known to have similar
21    effects to, or marketed to have similar effects to,
22    tetrahydrocannabinol class cannabinoids:
23            (A) Delta-5 THC (Delta-5 tetrahydrocannabinol);
24            (B) Delta-6 THC (Delta-6 tetrahydrocannabinol);
25            (C) Delta-7 THC (Delta 7-Tetrahydrocannabinol);
26            (D) Delta-8 THC (Delta 8-Tetrahydrocannabinol);

 

 

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1            (E) Delta-10 THC (Delta 10-Tetrahydrocannabinol);
2            (F) Delta-6a10a THC (often sold as Delta-3 THC);
3            (G) Delta 10a THC (Delta 10-Tetrahydrocannabinol
4        acid);
5            (H) Delta-11 THC (Delta-11tetrahydrocannabinol)
6            (I) HHC (Hexahydrocannabinol);
7            (J) HHCP (Hexahydrocannabiphorol);
8            (K) HHCH (Hexahydrocannabihexol);
9            (L) exo-THC (Delta 9,11-Tetrahydrocannabinol);
10            (M) THCP (Tetrahydrocannabiphorol);
11            (N) THCB (Tetrahydrocannabutol);
12            (O) THCH (Tetrahydrocannabihexol);
13            (P) THC-O-Acetate (Delta-9-Tetrahydrocannabinol
14        acetate, THC-O/ATHC);
15            (Q) HHC-O-Acetate (Hexahydrocannabinol O acetate,
16        HHC-O);
17            (R) THCP-O
18        (Delta-9-Tetrahydrocannabiphorol-O-acetate);
19            (S) THCJD (Tetrahydrocannabioctyl); and
20            (T) All tetrahydrocannabinol class cannabinoids
21        that appear on a list of cannabinoids that are known to
22        the federal Food and Drug Administration to have
23        similar effects to, or marketed to have similar
24        effects to, tetrahydrocannabinol class cannabinoids
25        and that is published by the federal Food and Drug
26        Administration pursuant to 7 U.S.C. 1639o.

 

 

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1    (b) The Department, by rule, may add, change, or remove
2any of the items included in the lists established in this
3Section.
4    (c) The Department shall publish any updates to the list,
5including any federal additions, on its website.
 
6    Section 20. Hemp and industrial hemp cultivation.
7    (a) No person shall cultivate hemp or industrial hemp in
8this State without a hemp cultivation license issued by the
9Department.
10    (b) An application for a cultivation license shall
11include:
12        (1) the name and address of the applicant; and
13        (2) the legal description of the land area to be used
14    to cultivate hemp, including Global Positioning System
15    coordinates.
16    (c) The Department may determine, by rule, the duration of
17a cultivation license, applicable license fees, and the
18requirements for license renewal.
19    (d) The Department shall submit to the Secretary of the
20United States Department of Agriculture a hemp production plan
21under which the Department monitors and regulates the
22cultivation of hemp and industrial hemp in this State. The
23Department shall adopt rules incorporating the hemp production
24plan, including application and licensing requirements.
25    (e) The Department may conduct inspections of hemp

 

 

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1cultivation licensees at the Department's discretion.
2    (f) The Department shall adopt rules necessary for the
3administration and enforcement of this Act in accordance with
4all applicable State and federal laws and regulations,
5including rules governing standards and criteria for licensure
6and registration, payment of applicable fees, required
7signage, and forms required for the administration of this
8Act.
9    (g) The Department shall adopt rules for the testing of
10hemp THC levels and the disposal of plant matter exceeding
11lawful THC levels, including an option for a cultivator to
12request a retest for a minor violation, with the retest
13threshold determined by the Department and set by rule.
14    (h) The Department may impose fines, not to exceed
15$10,000, on hemp cultivation licensees for violations of this
16Act and rules.
17    (i) The Department's rules that are related to the
18cultivation of industrial hemp and adopted under the
19Industrial Hemp Act shall remain in effect until superseded by
20rules adopted under this Act. Upon the effective date of this
21Act, hemp cultivation licensees under the Industrial Hemp Act
22shall be automatically licensed under this Act subject to the
23existing renewal period.
 
24    Section 25. Industrial hemp processing.
25    (a) Any person that processes or handles raw industrial

 

 

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1hemp plant material to create a product not intended for human
2or animal consumption shall obtain an industrial hemp
3processor registration. The license application shall be on a
4form prescribed by the Department and shall contain the name
5of the licensee, the location of the processing facility, and
6a list of products to be produced by the industrial hemp
7processor.
8    (b) The Department may adopt rules regulating industrial
9hemp processing. The Department may also inspect industrial
10hemp processing facilities and, if necessary, collect samples
11for testing at its discretion.
12    (c) An industrial hemp processor shall only create
13products derived from industrial hemp and shall not create any
14product that contains cannabinoids. The Department may revoke
15the license of an industrial hemp processor that violates this
16subsection.
17    (d) An industrial hemp processor license shall be valid
18for 2 years and shall be subject to a fee of $200.
19    (e) Industrial hemp processor registrants under the
20Industrial Hemp Act shall be required to obtain an industrial
21hemp processor license or a hemp product manufacturing license
22under this Act. Industrial hemp processor registrants under
23the Industrial Hemp Act may request a prorated refund of the
24registration fee submitted under that Act.
 
25    Section 30. Intermediate hemp products and hemp product

 

 

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1manufacturing.
2    (a) Any person that processes or handles hemp (other than
3industrial hemp) or intermediate hemp-derived cannabinoid
4products shall obtain a hemp product manufacturer license from
5the Department.
6    (b) Hemp product manufacturers shall obtain hemp only from
7hemp growers licensed by the United States Department of
8Agriculture or an approved State or tribal hemp program and
9may only produce products that are permitted to be sold under
10federal or State law. Hemp product manufacturers shall not
11sell any products that do not comply with the requirements of
12the jurisdiction in which they are sold.
13    (c) A hemp product manufacturer shall only produce
14products that meet the definition of hemp, intermediate
15hemp-derived cannabinoid product, or final consumer hemp
16cannabinoid product. A hemp product manufacturer shall not
17create artificially derived cannabinoids.
18    (d) An application for licensure shall be submitted to the
19Department on a form prescribed by the Department and shall
20include, but shall not be limited to:
21        (1) the entity name, address, email address, and
22    telephone number of the applicant;
23        (2) identification of the facility to be used;
24    separate licenses are required for separate facilities;
25        (3) a copy of the applicable local zoning ordinance
26    and verification that the facility location is not in an

 

 

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1    area zoned for residential use and complies with local
2    zoning rules and distance limitations established by the
3    local jurisdiction;
4        (4) identification of an authorized point of contact
5    for interactions with the Department; and
6        (5) a list of all operations and processes to be
7    conducted at the facility; licensees shall keep this list
8    current at all times.
9    (e) The Department shall inspect the facility to assess
10whether the facility is suitable for operations prior to
11issuing a license. A license is valid only for the location
12listed in the application. A new application is required for
13each new location.
14    (f) A hemp product manufacturer shall operate under the
15supervision of a food service sanitation manager certified by
16the Department of Public Health.
17    (g) The facility shall be in compliance with the Illinois
18Food, Drug, and Cosmetic Act, the Sanitary Food Preparation
19Act, and the Food Handling Regulation Enforcement Act.
20    (h) A hemp product manufacturer may perform hemp
21extraction to create hemp concentrate that meets the
22definition of an intermediate hemp-derived cannabinoid product
23upon approval by the Department. The hemp product manufacturer
24shall provide in its application and keep up to date all
25methods of extraction and concentration that the manufacturer
26will use and identify the chemicals, if any, that will be used.

 

 

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1All extraction methods and chemicals shall be approved by the
2Department. The Department shall adopt rules regulating hemp
3extraction, which shall include, at a minimum, an annual
4inspection by a professional engineer. Extraction equipment
5and processing sites shall be designed, installed, and
6maintained in accordance with codes of recognized and
7generally accepted good engineering practices, such as the
8National Fire Protection Association (NFPA), International
9Fire Code (IFC), American Society of Mechanical Engineers
10(ASME), and Underwriters Laboratories (UL).
11    (i) A hemp product manufacturer must comply with State and
12local building, fire, and zoning codes, requirements, and
13regulations.
14    (j) The Department may adopt rules that set facility
15standards and specifications, application requirements,
16production standards, security requirements, and any other
17requirements to ensure a safe and compliant facility.
18    (k) Hemp product manufacturing licenses shall be valid for
192 years and be subject to a license fee of $5,000. The
20Department shall waive the fee for any public institution of
21higher education, as defined in the Public Higher Education
22Act.
23    (l) The Department may impose fines, not to exceed
24$10,000, on hemp product manufacturers for violation of this
25Act and rules.
 

 

 

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1    Section 35. Final consumer hemp products.
2    (a) All final consumer hemp cannabinoid products
3distributed, sold, or offered for sale in this State shall
4meet the following minimum requirements:
5        (1) the product shall meet the definition of "final
6    consumer hemp cannabinoid product";
7        (2) the product shall not contain liquor, wine, beer,
8    or cider, or otherwise meet the definition of "alcoholic
9    liquor" under the Liquor Control Act of 1934;
10        (3) the product shall not contain tobacco or nicotine;
11        (4) the product shall consist of a consumable or
12    topical product, such as an edible food or beverage, and
13    shall not be intended to be smoked or vaped or otherwise
14    meet the definition of electronic cigarette as defined by
15    the Tobacco Products Tax Act of 1995;
16        (5) the product shall contain only ingredients that
17    are generally recognized as safe (GRAS) for use in food or
18    are approved food additives under the Federal Food, Drug,
19    and Cosmetic Act, unless otherwise authorized by the
20    Department by rule; and
21        (6) the product shall be prepackaged and shall not be
22    added to food or any other consumable product at the point
23    of sale.
24    (b) Prior to sale to the public, a representative sample
25of each lot shall be tested by a laboratory approved by the
26Department under the Cannabis Regulation and Tax Act. The

 

 

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1representative sample shall be tested for all tests required
2under 8 Ill. Admin. Code 1300.700, or the Department may set
3alternative testing standards by rule under this Act. The
4Department may also conduct testing of any product purported
5to be a final consumer hemp cannabinoid product. A current
6certificate of analysis shall be made available to the
7Department, to any retailer carrying the product, and to
8consumers via a scannable code or link on the product label.
9    (c) Every hemp-derived product offered for sale shall bear
10a label containing, at a minimum:
11        (1) the product name;
12        (2) the net weight or volume;
13        (3) a complete and accurate list of all ingredients in
14    descending order of predominance;
15        (4) the identity and quantity of each cannabinoid
16    present in the product at a level above 0.4 milligrams,
17    expressed in milligrams per serving and per container;
18        (5) the number of servings per container;
19        (6) the batch or lot number;
20        (7) the name, business address, and contact
21    information of the manufacturer or distributor;
22        (8) an expiration or use by date; and
23        (9) a quick response (QR) or equivalent scannable code
24    or website linking to the certificate of analysis for the
25    batch.
26    The Department may make modifications and additions to

 

 

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1these requirements by rule.
2    (d) All final hemp consumer cannabinoid products shall be
3sold in a container as defined by this Act. Each container
4shall be individually wrapped or packaged at the original
5point of preparation. Any product containing hemp shall be
6packaged in a sealed, child-resistant container that complies
7with current standards, including the Consumer Product Safety
8Commission standards referenced in the federal Poison
9Prevention Packaging Act or any other requirement set by the
10Department by rule.
11    (e) Labels and Packaging must not contain information
12that:
13        (1) is false or misleading or includes a
14    representation that the product is a cannabis product;
15        (2) promotes excessive consumption;
16        (3) includes any image designed or likely to appeal to
17    minors, including cartoons, fruit, toys, animals, or
18    children, or any other likeness to images, characters, or
19    phrases used to advertise to children;
20        (4) imitates the trade dress, name, or packaging of
21    any commercial non-cannabis or non-hemp food, candy,
22    beverage, or product primarily marketed to children;
23        (5) contains any seal, flag, crest, coat of arms, or
24    other insignia likely to mislead a purchaser into
25    believing the product has been endorsed, made, or used by
26    the State of Illinois or any of its representatives,

 

 

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1    except where authorized by this Act;
2        (6) misstates or omits cannabinoid content or
3    ingredients; or
4        (7) makes health claims.
5    (f) Labeling and packaging requirements may be modified by
6the Department by rule.
7    (g) The Department may issue a mandatory recall for any
8product or product line found to be in violation of any
9provision of this Section.
 
10    Section 40. Violations.
11    (a) A person or retailer that sells, offers for sale,
12distributes, or holds for sale a final consumer hemp
13cannabinoid product that does not comply with any requirement
14of this Act or any rule adopted under this Act commits a
15violation of this Act. Products derived from the plant
16Cannabis sativa L. that do not meet the definition of hemp or
17hemp-derived cannabinoid product are considered cannabis as
18defined by the Cannabis Regulation and Tax Act and Cannabis
19Control Act. Nothing in this Act limits the authority of any
20other State agency or unit of local government to inspect a
21person or retailer subject to this Act or to enforce other
22applicable laws.
23    (b) The Department of Agriculture, Department of Financial
24and Professional Regulation, Department of Public Health,
25Illinois State Police, Department of Revenue, and the unit of

 

 

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1local government where the premises are located may, during
2ordinary business hours, enter and inspect any premises where
3hemp-derived cannabinoid products or final consumer hemp
4cannabinoid products are sold, offered for sale, stored, or
5distributed. Refusal to permit inspection constitutes a
6separate violation subject to a fine under Section 45.
 
7    Section 45. Penalties. Upon a finding that a person or
8retailer has violated this Act, the Department may impose
9fines as follows:
10        (1) for a first violation within a 24-month period, a
11    fine not to exceed $500;
12        (2) for a second violation within a 24-month period, a
13    fine not to exceed $750; and
14        (3) for a third or subsequent violation within a
15    24-month period, a fine not to exceed $1,000.
16    Fines imposed under this subsection are in addition to,
17and not in lieu of, any other civil, criminal, or
18administrative remedy available under this Act or any other
19law. All penalties collected shall be deposited into the
20Illinois Hemp Regulatory Fund.
 
21    Section 50. Cease and desist orders; mandatory recalls;
22consumer fraud.
23    (a) The Director may issue a cease and desist order to any
24person doing business without the required license or when in

 

 

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1the opinion of the Director the person is violating or is about
2to violate any provision of this Act or any rule or requirement
3imposed in writing by the Department, including the sale of
4products not in compliance with this Act. The cease and desist
5order permitted by this Section may be issued before a
6hearing.
7    (b) The Director shall serve notice of the Director's
8action, including, but not limited to, a statement of the
9reasons for the action, either personally, or by certified
10mail, or by regular mail. Service by certified or regular mail
11shall be deemed completed when the notice is deposited in the
12U.S. Mail.
13    (c) Within 10 calendar days after service of the cease and
14desist order, the licensee or other person may request a
15hearing in writing. The Director shall schedule a hearing
16within 90 days after the request for a hearing unless
17otherwise agreed to by the parties.
18    (d) If it is determined that the Director had the
19authority to issue the cease and desist order, the Director
20may issue such orders as may be reasonably necessary to
21correct, eliminate, or remedy the conduct.
22    (e) The Director may seek to compel compliance with the
23Cease and Desist Order in the circuit court through the
24Attorney General's Office. Any person in violation of a cease
25and desist order issued by the Department is subject to all
26penalties provided by law.

 

 

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1    (f) The powers vested in the Director by this Section are
2in addition to any and all other powers and remedies vested in
3the Director by law, and nothing in this Section shall be
4construed as requiring that the Director shall employ the
5power conferred in this Section instead of or as a condition
6precedent to the exercise of any other power or remedy vested
7in the Director.
8    (g) Whenever the Department issues a mandatory recall
9under this Act, every person or retailer in possession of the
10recalled product shall, within the time specified in the
11recall order, remove the product from sale, segregate it from
12compliant inventory, and either return it to the manufacturer
13or distributor or hold it for destruction in accordance with
14Department instructions. A person or retailer that fails to
15comply with a mandatory recall order is subject to a civil
16penalty under rules adopted by the Department for each day the
17violation continues, and each non-compliant product retained
18in violation of the order constitutes a separate violation.
19    (h) When a product recalled under this Section has been
20finally determined by the Department to be non-compliant, the
21Director may petition the circuit court of the county in which
22the product is located for an order condemning the product and
23directing its destruction or other lawful disposition at the
24expense of the person or retailer in possession.
25    (i) The Department may adopt rules necessary to administer
26and enforce this Section, including rules establishing a

 

 

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1schedule of presumptive civil penalties, procedures for
2stop-sale orders and embargoes, standards for manufacturer
3certifications of compliance, and procedures for mandatory
4recalls.
5    (j) The Attorney General may also enforce a violation of
6this Act as an unlawful practice under the Consumer Fraud and
7Deceptive Business Practices Act.
 
8    Section 55. Illinois Hemp Regulatory Fund. There is
9created in the State treasury a special fund to be known as the
10Illinois Hemp Regulatory Fund. All fees and fines collected by
11the Department under this Act shall be deposited into the
12Fund. Moneys in the Illinois Hemp Regulatory Fund shall be
13used by the Department for the purposes of implementing,
14administering, and enforcing this Act.
15    Notwithstanding any other provision of law, in addition to
16any other transfers that may be provided by law, on November
1712, 2026, or as soon thereafter as practical, the State
18Comptroller shall direct and the State Treasurer shall
19transfer the remaining balance from the Industrial Hemp
20Regulatory Fund into the Illinois Hemp Regulatory Fund. Upon
21completion of the transfers, the Industrial Hemp Regulatory
22Fund is dissolved, and any future deposits due to that Fund and
23any outstanding obligations or liabilities of that Fund pass
24to the Illinois Hemp Regulatory Fund.
 

 

 

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1    Section 60. Immunity. Except for willful or wanton
2misconduct, a person employed by the Department shall not be
3subject to criminal or civil liability for taking any action
4under this Act within the scope of his or her employment.
5Representation and indemnification of Department employees
6shall be provided as set forth in Section 2 of the State
7Employee Indemnification Act.
 
8    Section 65. Construction.
9    (a) Nothing in this Act shall be construed to authorize
10any person to violate any federal rule, regulation, or law.
11If, as of November 13, 2026, this Act conflicts with the
12statutory text of 7 U.S.C. 1639p, the federal provision, as of
13November 13, 2026, shall control to the extent of the
14conflict.
15    (b) Nothing in this Act shall prohibit the transportation
16or shipment of hemp or hemp products produced in accordance
17with subtitle G of the Agricultural Marketing Act of 1946 (7
18U.S.C. 1639o et seq.) through the State.
 
19    Section 70. Home Rule. A home rule unit may not regulate
20hemp in a manner less restrictive than the regulation of hemp
21under this Act. This Section is a limitation under subsection
22(i) of Section 6 of Article VII of the Illinois Constitution on
23the concurrent exercise by home rule units of powers and
24functions exercised by the State.
 

 

 

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1    Section 100. The Department of Professional Regulation Law
2of the Civil Administrative Code of Illinois is amended by
3changing Section 2105-117 as follows:
 
4    (20 ILCS 2105/2105-117)
5    Sec. 2105-117. Confidentiality. All information collected
6by the Department in the course of an examination or
7investigation of a licensee, registrant, or applicant,
8including, but not limited to, any complaint against a
9licensee or registrant filed with the Department and
10information collected to investigate any such complaint, shall
11be maintained for the confidential use of the Department and
12shall not be disclosed. The Department may not disclose the
13information to anyone other than law enforcement officials,
14other regulatory agencies that have an appropriate regulatory
15interest as determined by the Director, the Office of the
16Executive Inspector General, or a party presenting a lawful
17subpoena to the Department. Information and documents
18disclosed to a federal, State, county, or local law
19enforcement agency, including the Office of the Executive
20Inspector General, shall not be disclosed by the agency for
21any purpose to any other agency or person, except as necessary
22to those involved in enforcing the State Officials and
23Employees Ethics Act. A formal complaint filed against a
24licensee or registrant by the Department or any order issued

 

 

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1by the Department against a licensee, registrant, or applicant
2shall be a public record, except as otherwise prohibited by
3law.
4(Source: P.A. 99-227, eff. 8-3-15.)
 
5    Section 105. The Criminal Identification Act is amended by
6changing Section 5.2 as follows:
 
7    (20 ILCS 2630/5.2)
8    (Text of Section before amendment by P.A. 104-459)
9    Sec. 5.2. Expungement, sealing, and immediate sealing.
10    (a) General Provisions.
11        (1) Definitions. In this Act, words and phrases have
12    the meanings set forth in this subsection, except when a
13    particular context clearly requires a different meaning.
14            (A) The following terms shall have the meanings
15        ascribed to them in the following Sections of the
16        Unified Code of Corrections:
17                Business Offense, Section 5-1-2.
18                Charge, Section 5-1-3.
19                Court, Section 5-1-6.
20                Defendant, Section 5-1-7.
21                Felony, Section 5-1-9.
22                Imprisonment, Section 5-1-10.
23                Judgment, Section 5-1-12.
24                Misdemeanor, Section 5-1-14.

 

 

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1                Offense, Section 5-1-15.
2                Parole, Section 5-1-16.
3                Petty Offense, Section 5-1-17.
4                Probation, Section 5-1-18.
5                Sentence, Section 5-1-19.
6                Supervision, Section 5-1-21.
7                Victim, Section 5-1-22.
8            (B) As used in this Section, "charge not initiated
9        by arrest" means a charge (as defined by Section 5-1-3
10        of the Unified Code of Corrections) brought against a
11        defendant where the defendant is not arrested prior to
12        or as a direct result of the charge.
13            (C) "Conviction" means a judgment of conviction or
14        sentence entered upon a plea of guilty or upon a
15        verdict or finding of guilty of an offense, rendered
16        by a legally constituted jury or by a court of
17        competent jurisdiction authorized to try the case
18        without a jury. An order of supervision successfully
19        completed by the petitioner is not a conviction. An
20        order of qualified probation (as defined in subsection
21        (a)(1)(J)) successfully completed by the petitioner is
22        not a conviction. An order of supervision or an order
23        of qualified probation that is terminated
24        unsatisfactorily is a conviction, unless the
25        unsatisfactory termination is reversed, vacated, or
26        modified and the judgment of conviction, if any, is

 

 

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1        reversed or vacated.
2            (D) "Criminal offense" means a petty offense,
3        business offense, misdemeanor, felony, or municipal
4        ordinance violation (as defined in subsection
5        (a)(1)(H)). As used in this Section, a minor traffic
6        offense (as defined in subsection (a)(1)(G)) shall not
7        be considered a criminal offense.
8            (E) "Expunge" means to physically destroy the
9        records or return them to the petitioner and to
10        obliterate the petitioner's name from any official
11        index or public record, or both. Nothing in this Act
12        shall require the physical destruction of the circuit
13        court file, but such records relating to arrests or
14        charges, or both, ordered expunged shall be impounded
15        as required by subsections (d)(9)(A)(ii) and
16        (d)(9)(B)(ii).
17            (F) As used in this Section, "last sentence" means
18        the sentence, order of supervision, or order of
19        qualified probation (as defined by subsection
20        (a)(1)(J)), for a criminal offense (as defined by
21        subsection (a)(1)(D)) that terminates last in time in
22        any jurisdiction, regardless of whether the petitioner
23        has included the criminal offense for which the
24        sentence or order of supervision or qualified
25        probation was imposed in his or her petition. If
26        multiple sentences, orders of supervision, or orders

 

 

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1        of qualified probation terminate on the same day and
2        are last in time, they shall be collectively
3        considered the "last sentence" regardless of whether
4        they were ordered to run concurrently.
5            (G) "Minor traffic offense" means a petty offense,
6        business offense, or Class C misdemeanor under the
7        Illinois Vehicle Code or a similar provision of a
8        municipal or local ordinance.
9            (G-5) "Minor Cannabis Offense" means a violation
10        of Section 4 or 5 of the Cannabis Control Act
11        concerning not more than 60 30 grams of any substance
12        containing cannabis, provided the violation did not
13        include a penalty enhancement under Section 7 of the
14        Cannabis Control Act and is not associated with an
15        arrest, conviction or other disposition for a violent
16        crime as defined in subsection (c) of Section 3 of the
17        Rights of Crime Victims and Witnesses Act.
18            (H) "Municipal ordinance violation" means an
19        offense defined by a municipal or local ordinance that
20        is criminal in nature and with which the petitioner
21        was charged or for which the petitioner was arrested
22        and released without charging.
23            (I) "Petitioner" means an adult or a minor
24        prosecuted as an adult who has applied for relief
25        under this Section.
26            (J) "Qualified probation" means an order of

 

 

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1        probation under Section 10 of the Cannabis Control
2        Act, Section 410 of the Illinois Controlled Substances
3        Act, Section 70 of the Methamphetamine Control and
4        Community Protection Act, Section 5-6-3.3 or 5-6-3.4
5        of the Unified Code of Corrections, Section
6        12-4.3(b)(1) and (2) of the Criminal Code of 1961 (as
7        those provisions existed before their deletion by
8        Public Act 89-313), Section 10-102 of the Illinois
9        Alcoholism and Other Drug Dependency Act, Section
10        40-10 of the Substance Use Disorder Act, or Section 10
11        of the Steroid Control Act. For the purpose of this
12        Section, "successful completion" of an order of
13        qualified probation under Section 10-102 of the
14        Illinois Alcoholism and Other Drug Dependency Act and
15        Section 40-10 of the Substance Use Disorder Act means
16        that the probation was terminated satisfactorily and
17        the judgment of conviction was vacated.
18            (K) "Seal" means to physically and electronically
19        maintain the records, unless the records would
20        otherwise be destroyed due to age, but to make the
21        records unavailable without a court order, subject to
22        the exceptions in Sections 12 and 13 of this Act. The
23        petitioner's name shall also be obliterated from the
24        official index required to be kept by the circuit
25        court clerk under Section 16 of the Clerks of Courts
26        Act, but any index issued by the circuit court clerk

 

 

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1        before the entry of the order to seal shall not be
2        affected.
3            (L) "Sexual offense committed against a minor"
4        includes, but is not limited to, the offenses of
5        indecent solicitation of a child or criminal sexual
6        abuse when the victim of such offense is under 18 years
7        of age.
8            (M) "Terminate" as it relates to a sentence or
9        order of supervision or qualified probation includes
10        either satisfactory or unsatisfactory termination of
11        the sentence, unless otherwise specified in this
12        Section. A sentence is terminated notwithstanding any
13        outstanding financial legal obligation.
14        (2) Minor Traffic Offenses. Orders of supervision or
15    convictions for minor traffic offenses shall not affect a
16    petitioner's eligibility to expunge or seal records
17    pursuant to this Section.
18        (2.5) Commencing 180 days after July 29, 2016 (the
19    effective date of Public Act 99-697), the law enforcement
20    agency issuing the citation shall automatically expunge,
21    on or before January 1 and July 1 of each year, the law
22    enforcement records of a person found to have committed a
23    civil law violation of subsection (a) of Section 4 of the
24    Cannabis Control Act or subsection (c) of Section 3.5 of
25    the Drug Paraphernalia Control Act in the law enforcement
26    agency's possession or control and which contains the

 

 

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1    final satisfactory disposition which pertain to the person
2    issued a citation for that offense. The law enforcement
3    agency shall provide by rule the process for access,
4    review, and to confirm the automatic expungement by the
5    law enforcement agency issuing the citation. Commencing
6    180 days after July 29, 2016 (the effective date of Public
7    Act 99-697), the clerk of the circuit court shall expunge,
8    upon order of the court, or in the absence of a court order
9    on or before January 1 and July 1 of each year, the court
10    records of a person found in the circuit court to have
11    committed a civil law violation of subsection (a) of
12    Section 4 of the Cannabis Control Act or subsection (c) of
13    Section 3.5 of the Drug Paraphernalia Control Act in the
14    clerk's possession or control and which contains the final
15    satisfactory disposition which pertain to the person
16    issued a citation for any of those offenses.
17        (3) Exclusions. Except as otherwise provided in
18    subsections (b)(5), (b)(6), (b)(8), (e), (e-5), and (e-6)
19    of this Section, the court shall not order:
20            (A) the sealing or expungement of the records of
21        arrests or charges not initiated by arrest that result
22        in an order of supervision for or conviction of: (i)
23        any sexual offense committed against a minor; (ii)
24        Section 11-501 of the Illinois Vehicle Code or a
25        similar provision of a local ordinance; or (iii)
26        Section 11-503 of the Illinois Vehicle Code or a

 

 

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1        similar provision of a local ordinance, unless the
2        arrest or charge is for a misdemeanor violation of
3        subsection (a) of Section 11-503 or a similar
4        provision of a local ordinance, that occurred prior to
5        the offender reaching the age of 25 years and the
6        offender has no other conviction for violating Section
7        11-501 or 11-503 of the Illinois Vehicle Code or a
8        similar provision of a local ordinance.
9            (B) the sealing or expungement of records of minor
10        traffic offenses (as defined in subsection (a)(1)(G)),
11        unless the petitioner was arrested and released
12        without charging.
13            (C) the sealing of the records of arrests or
14        charges not initiated by arrest which result in an
15        order of supervision or a conviction for the following
16        offenses:
17                (i) offenses included in Article 11 of the
18            Criminal Code of 1961 or the Criminal Code of 2012
19            or a similar provision of a local ordinance,
20            except Section 11-14 and a misdemeanor violation
21            of Section 11-30 of the Criminal Code of 1961 or
22            the Criminal Code of 2012, or a similar provision
23            of a local ordinance;
24                (ii) Section 11-1.50, 12-3.4, 12-15, 12-30,
25            26-5, or 48-1 of the Criminal Code of 1961 or the
26            Criminal Code of 2012, or a similar provision of a

 

 

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1            local ordinance;
2                (iii) Section 12-3.1 or 12-3.2 of the Criminal
3            Code of 1961 or the Criminal Code of 2012, or
4            Section 125 of the Stalking No Contact Order Act,
5            or Section 219 of the Civil No Contact Order Act,
6            or a similar provision of a local ordinance;
7                (iv) Class A misdemeanors or felony offenses
8            under the Humane Care for Animals Act; or
9                (v) any offense or attempted offense that
10            would subject a person to registration under the
11            Sex Offender Registration Act.
12            (D) (blank).
13    (b) Expungement.
14        (1) A petitioner may petition the circuit court to
15    expunge the records of his or her arrests and charges not
16    initiated by arrest when each arrest or charge not
17    initiated by arrest sought to be expunged resulted in: (i)
18    acquittal, dismissal, or the petitioner's release without
19    charging, unless excluded by subsection (a)(3)(B); (ii) a
20    conviction which was vacated or reversed, unless excluded
21    by subsection (a)(3)(B); (iii) an order of supervision and
22    such supervision was successfully completed by the
23    petitioner, unless excluded by subsection (a)(3)(A) or
24    (a)(3)(B); or (iv) an order of qualified probation (as
25    defined in subsection (a)(1)(J)) and such probation was
26    successfully completed by the petitioner.

 

 

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1        (1.5) When a petitioner seeks to have a record of
2    arrest expunged under this Section, and the offender has
3    been convicted of a criminal offense, the State's Attorney
4    may object to the expungement on the grounds that the
5    records contain specific relevant information aside from
6    the mere fact of the arrest.
7        (2) Time frame for filing a petition to expunge.
8            (A) When the arrest or charge not initiated by
9        arrest sought to be expunged resulted in an acquittal,
10        dismissal, the petitioner's release without charging,
11        or the reversal or vacation of a conviction, there is
12        no waiting period to petition for the expungement of
13        such records.
14            (A-5) In anticipation of the successful completion
15        of a problem-solving court, pre-plea diversion, or
16        post-plea diversion program, a petition for
17        expungement may be filed 61 days before the
18        anticipated dismissal of the case or any time
19        thereafter. Upon successful completion of the program
20        and dismissal of the case, the court shall review the
21        petition of the person graduating from the program and
22        shall grant expungement if the petitioner meets all
23        requirements as specified in any applicable statute.
24            (B) When the arrest or charge not initiated by
25        arrest sought to be expunged resulted in an order of
26        supervision, successfully completed by the petitioner,

 

 

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1        the following time frames will apply:
2                (i) Those arrests or charges that resulted in
3            orders of supervision under Section 3-707, 3-708,
4            3-710, or 5-401.3 of the Illinois Vehicle Code or
5            a similar provision of a local ordinance, or under
6            Section 11-1.50, 12-3.2, or 12-15 of the Criminal
7            Code of 1961 or the Criminal Code of 2012, or a
8            similar provision of a local ordinance, shall not
9            be eligible for expungement until 5 years have
10            passed following the satisfactory termination of
11            the supervision.
12                (i-5) Those arrests or charges that resulted
13            in orders of supervision for a misdemeanor
14            violation of subsection (a) of Section 11-503 of
15            the Illinois Vehicle Code or a similar provision
16            of a local ordinance, that occurred prior to the
17            offender reaching the age of 25 years and the
18            offender has no other conviction for violating
19            Section 11-501 or 11-503 of the Illinois Vehicle
20            Code or a similar provision of a local ordinance
21            shall not be eligible for expungement until the
22            petitioner has reached the age of 25 years.
23                (ii) Those arrests or charges that resulted in
24            orders of supervision for any other offenses shall
25            not be eligible for expungement until 2 years have
26            passed following the satisfactory termination of

 

 

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1            the supervision.
2            (C) When the arrest or charge not initiated by
3        arrest sought to be expunged resulted in an order of
4        qualified probation, successfully completed by the
5        petitioner, such records shall not be eligible for
6        expungement until 5 years have passed following the
7        satisfactory termination of the probation.
8        (3) Those records maintained by the Illinois State
9    Police for persons arrested prior to their 17th birthday
10    shall be expunged as provided in Section 5-915 of the
11    Juvenile Court Act of 1987.
12        (4) Whenever a person has been arrested for or
13    convicted of any offense, in the name of a person whose
14    identity he or she has stolen or otherwise come into
15    possession of, the aggrieved person from whom the identity
16    was stolen or otherwise obtained without authorization,
17    upon learning of the person having been arrested using his
18    or her identity, may, upon verified petition to the chief
19    judge of the circuit wherein the arrest was made, have a
20    court order entered nunc pro tunc by the Chief Judge to
21    correct the arrest record, conviction record, if any, and
22    all official records of the arresting authority, the
23    Illinois State Police, other criminal justice agencies,
24    the prosecutor, and the trial court concerning such
25    arrest, if any, by removing his or her name from all such
26    records in connection with the arrest and conviction, if

 

 

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1    any, and by inserting in the records the name of the
2    offender, if known or ascertainable, in lieu of the
3    aggrieved's name. The records of the circuit court clerk
4    shall be sealed until further order of the court upon good
5    cause shown and the name of the aggrieved person
6    obliterated on the official index required to be kept by
7    the circuit court clerk under Section 16 of the Clerks of
8    Courts Act, but the order shall not affect any index
9    issued by the circuit court clerk before the entry of the
10    order. Nothing in this Section shall limit the Illinois
11    State Police or other criminal justice agencies or
12    prosecutors from listing under an offender's name the
13    false names he or she has used.
14        (5) Whenever a person has been convicted of criminal
15    sexual assault, aggravated criminal sexual assault,
16    predatory criminal sexual assault of a child, criminal
17    sexual abuse, or aggravated criminal sexual abuse, the
18    victim of that offense may request that the State's
19    Attorney of the county in which the conviction occurred
20    file a verified petition with the presiding trial judge at
21    the petitioner's trial to have a court order entered to
22    seal the records of the circuit court clerk in connection
23    with the proceedings of the trial court concerning that
24    offense. However, the records of the arresting authority
25    and the Illinois State Police concerning the offense shall
26    not be sealed. The court, upon good cause shown, shall

 

 

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1    make the records of the circuit court clerk in connection
2    with the proceedings of the trial court concerning the
3    offense available for public inspection.
4        (6) If a conviction has been set aside on direct
5    review or on collateral attack and the court determines by
6    clear and convincing evidence that the petitioner was
7    factually innocent of the charge, the court that finds the
8    petitioner factually innocent of the charge shall enter an
9    expungement order for the conviction for which the
10    petitioner has been determined to be innocent as provided
11    in subsection (b) of Section 5-5-4 of the Unified Code of
12    Corrections.
13        (7) Nothing in this Section shall prevent the Illinois
14    State Police from maintaining all records of any person
15    who is admitted to probation upon terms and conditions and
16    who fulfills those terms and conditions pursuant to
17    Section 10 of the Cannabis Control Act, Section 410 of the
18    Illinois Controlled Substances Act, Section 70 of the
19    Methamphetamine Control and Community Protection Act,
20    Section 5-6-3.3 or 5-6-3.4 of the Unified Code of
21    Corrections, Section 12-4.3 or subdivision (b)(1) of
22    Section 12-3.05 of the Criminal Code of 1961 or the
23    Criminal Code of 2012, Section 10-102 of the Illinois
24    Alcoholism and Other Drug Dependency Act, Section 40-10 of
25    the Substance Use Disorder Act, or Section 10 of the
26    Steroid Control Act.

 

 

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1        (8) If the petitioner has been granted a certificate
2    of innocence under Section 2-702 of the Code of Civil
3    Procedure, the court that grants the certificate of
4    innocence shall also enter an order expunging the
5    conviction for which the petitioner has been determined to
6    be innocent as provided in subsection (h) of Section 2-702
7    of the Code of Civil Procedure.
8    (c) Sealing.
9        (1) Applicability. Notwithstanding any other provision
10    of this Act to the contrary, and cumulative with any
11    rights to expungement of criminal records, this subsection
12    authorizes the sealing of criminal records of adults and
13    of minors prosecuted as adults. Subsection (g) of this
14    Section provides for immediate sealing of certain records.
15        (2) Eligible Records. The following records may be
16    sealed:
17            (A) All arrests resulting in release without
18        charging;
19            (B) Arrests or charges not initiated by arrest
20        resulting in acquittal, dismissal, or conviction when
21        the conviction was reversed or vacated, except as
22        excluded by subsection (a)(3)(B);
23            (C) Arrests or charges not initiated by arrest
24        resulting in orders of supervision, including orders
25        of supervision for municipal ordinance violations,
26        successfully completed by the petitioner, unless

 

 

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1        excluded by subsection (a)(3);
2            (D) Arrests or charges not initiated by arrest
3        resulting in convictions, including convictions on
4        municipal ordinance violations, unless excluded by
5        subsection (a)(3);
6            (E) Arrests or charges not initiated by arrest
7        resulting in orders of first offender probation under
8        Section 10 of the Cannabis Control Act, Section 410 of
9        the Illinois Controlled Substances Act, Section 70 of
10        the Methamphetamine Control and Community Protection
11        Act, or Section 5-6-3.3 of the Unified Code of
12        Corrections; and
13            (F) Arrests or charges not initiated by arrest
14        resulting in felony convictions unless otherwise
15        excluded by subsection (a) paragraph (3) of this
16        Section.
17        (3) When Records Are Eligible to Be Sealed. Records
18    identified as eligible under subsection (c)(2) may be
19    sealed as follows:
20            (A) Records identified as eligible under
21        subsections (c)(2)(A) and (c)(2)(B) may be sealed at
22        any time.
23            (B) Except as otherwise provided in subparagraph
24        (E) of this paragraph (3), records identified as
25        eligible under subsection (c)(2)(C) may be sealed 2
26        years after the termination of petitioner's last

 

 

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1        sentence (as defined in subsection (a)(1)(F)).
2            (C) Except as otherwise provided in subparagraph
3        (E) of this paragraph (3), records identified as
4        eligible under subsections (c)(2)(D), (c)(2)(E), and
5        (c)(2)(F) may be sealed 3 years after the termination
6        of the petitioner's last sentence (as defined in
7        subsection (a)(1)(F)). Convictions requiring public
8        registration under the Arsonist Registry Act, the Sex
9        Offender Registration Act, or the Murderer and Violent
10        Offender Against Youth Registration Act may not be
11        sealed until the petitioner is no longer required to
12        register under that relevant Act.
13            (D) Records identified in subsection
14        (a)(3)(A)(iii) may be sealed after the petitioner has
15        reached the age of 25 years.
16            (E) Records identified as eligible under
17        subsection (c)(2)(C), (c)(2)(D), (c)(2)(E), or
18        (c)(2)(F) may be sealed upon termination of the
19        petitioner's last sentence if the petitioner earned a
20        high school diploma, associate's degree, career
21        certificate, vocational technical certification, or
22        bachelor's degree, or passed the high school level
23        Test of General Educational Development, during the
24        period of his or her sentence or mandatory supervised
25        release. This subparagraph shall apply only to a
26        petitioner who has not completed the same educational

 

 

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1        goal prior to the period of his or her sentence or
2        mandatory supervised release. If a petition for
3        sealing eligible records filed under this subparagraph
4        is denied by the court, the time periods under
5        subparagraph (B) or (C) shall apply to any subsequent
6        petition for sealing filed by the petitioner.
7        (4) Subsequent felony convictions. A person may not
8    have subsequent felony conviction records sealed as
9    provided in this subsection (c) if he or she is convicted
10    of any felony offense after the date of the sealing of
11    prior felony convictions as provided in this subsection
12    (c). The court may, upon conviction for a subsequent
13    felony offense, order the unsealing of prior felony
14    conviction records previously ordered sealed by the court.
15        (5) Notice of eligibility for sealing. Upon entry of a
16    disposition for an eligible record under this subsection
17    (c), the petitioner shall be informed by the court of the
18    right to have the records sealed and the procedures for
19    the sealing of the records.
20    (d) Procedure. The following procedures apply to
21expungement under subsections (b), (e), and (e-6) and sealing
22under subsections (c) and (e-5):
23        (1) Filing the petition. Upon becoming eligible to
24    petition for the expungement or sealing of records under
25    this Section, the petitioner shall file a petition
26    requesting the expungement or sealing of records with the

 

 

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1    clerk of the court where the arrests occurred or the
2    charges were brought, or both. If arrests occurred or
3    charges were brought in multiple jurisdictions, a petition
4    must be filed in each such jurisdiction. The petitioner
5    shall pay the applicable fee, except no fee shall be
6    required if the petitioner has obtained a court order
7    waiving fees under Supreme Court Rule 298 or it is
8    otherwise waived.
9        (1.5) County fee waiver pilot program. From August 9,
10    2019 (the effective date of Public Act 101-306) through
11    December 31, 2020, in a county of 3,000,000 or more
12    inhabitants, no fee shall be required to be paid by a
13    petitioner if the records sought to be expunged or sealed
14    were arrests resulting in release without charging or
15    arrests or charges not initiated by arrest resulting in
16    acquittal, dismissal, or conviction when the conviction
17    was reversed or vacated, unless excluded by subsection
18    (a)(3)(B). The provisions of this paragraph (1.5), other
19    than this sentence, are inoperative on and after January
20    1, 2022.
21        (2) Contents of petition. The petition shall be
22    verified and shall contain the petitioner's name, date of
23    birth, current address and, for each arrest or charge not
24    initiated by arrest sought to be sealed or expunged, the
25    case number, the date of arrest (if any), the identity of
26    the arresting authority, and such other information as the

 

 

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1    court may require. During the pendency of the proceeding,
2    the petitioner shall promptly notify the circuit court
3    clerk of any change of his or her address. If the
4    petitioner has received a certificate of eligibility for
5    sealing from the Prisoner Review Board under paragraph
6    (10) of subsection (a) of Section 3-3-2 of the Unified
7    Code of Corrections, the certificate shall be attached to
8    the petition.
9        (3) Drug test. The petitioner must attach to the
10    petition proof that the petitioner has taken within 30
11    days before the filing of the petition a test showing the
12    absence within his or her body of all illegal substances
13    as defined by the Illinois Controlled Substances Act and
14    the Methamphetamine Control and Community Protection Act
15    if he or she is petitioning to:
16            (A) seal felony records under clause (c)(2)(E);
17            (B) seal felony records for a violation of the
18        Illinois Controlled Substances Act, the
19        Methamphetamine Control and Community Protection Act,
20        or the Cannabis Control Act under clause (c)(2)(F);
21            (C) seal felony records under subsection (e-5); or
22            (D) expunge felony records of a qualified
23        probation under clause (b)(1)(iv).
24        (4) Service of petition. The circuit court clerk shall
25    promptly serve a copy of the petition and documentation to
26    support the petition under subsection (e-5) or (e-6) on

 

 

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1    the State's Attorney or prosecutor charged with the duty
2    of prosecuting the offense, the Illinois State Police, the
3    arresting agency and the chief legal officer of the unit
4    of local government effecting the arrest.
5        (5) Objections.
6            (A) Any party entitled to notice of the petition
7        may file an objection to the petition. All objections
8        shall be in writing, shall be filed with the circuit
9        court clerk, and shall state with specificity the
10        basis of the objection. Whenever a person who has been
11        convicted of an offense is granted a pardon by the
12        Governor which specifically authorizes expungement, an
13        objection to the petition may not be filed.
14            (B) Objections to a petition to expunge or seal
15        must be filed within 60 days of the date of service of
16        the petition.
17        (6) Entry of order.
18            (A) The Chief Judge of the circuit wherein the
19        charge was brought, any judge of that circuit
20        designated by the Chief Judge, or in counties of less
21        than 3,000,000 inhabitants, the presiding trial judge
22        at the petitioner's trial, if any, shall rule on the
23        petition to expunge or seal as set forth in this
24        subsection (d)(6).
25            (B) Unless the State's Attorney or prosecutor, the
26        Illinois State Police, the arresting agency, or the

 

 

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1        chief legal officer files an objection to the petition
2        to expunge or seal within 60 days from the date of
3        service of the petition, the court shall enter an
4        order granting or denying the petition.
5            (C) Notwithstanding any other provision of law,
6        the court shall not deny a petition for sealing under
7        this Section because the petitioner has not satisfied
8        an outstanding legal financial obligation established,
9        imposed, or originated by a court, law enforcement
10        agency, or a municipal, State, county, or other unit
11        of local government, including, but not limited to,
12        any cost, assessment, fine, or fee. An outstanding
13        legal financial obligation does not include any court
14        ordered restitution to a victim under Section 5-5-6 of
15        the Unified Code of Corrections, unless the
16        restitution has been converted to a civil judgment.
17        Nothing in this subparagraph (C) waives, rescinds, or
18        abrogates a legal financial obligation or otherwise
19        eliminates or affects the right of the holder of any
20        financial obligation to pursue collection under
21        applicable federal, State, or local law.
22            (D) Notwithstanding any other provision of law,
23        the court shall not deny a petition to expunge or seal
24        under this Section because the petitioner has
25        submitted a drug test taken within 30 days before the
26        filing of the petition to expunge or seal that

 

 

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1        indicates a positive test for the presence of cannabis
2        within the petitioner's body. In this subparagraph
3        (D), "cannabis" has the meaning ascribed to it in
4        Section 3 of the Cannabis Control Act.
5        (7) Hearings. If an objection is filed, the court
6    shall set a date for a hearing and notify the petitioner
7    and all parties entitled to notice of the petition of the
8    hearing date at least 30 days prior to the hearing. Prior
9    to the hearing, the State's Attorney shall consult with
10    the Illinois State Police as to the appropriateness of the
11    relief sought in the petition to expunge or seal. At the
12    hearing, the court shall hear evidence on whether the
13    petition should or should not be granted, and shall grant
14    or deny the petition to expunge or seal the records based
15    on the evidence presented at the hearing. The court may
16    consider the following:
17            (A) the strength of the evidence supporting the
18        defendant's conviction;
19            (B) the reasons for retention of the conviction
20        records by the State;
21            (C) the petitioner's age, criminal record history,
22        and employment history;
23            (D) the period of time between the petitioner's
24        arrest on the charge resulting in the conviction and
25        the filing of the petition under this Section; and
26            (E) the specific adverse consequences the

 

 

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1        petitioner may be subject to if the petition is
2        denied.
3        (8) Service of order. After entering an order to
4    expunge or seal records, the court must provide copies of
5    the order to the Illinois State Police, in a form and
6    manner prescribed by the Illinois State Police, to the
7    petitioner, to the State's Attorney or prosecutor charged
8    with the duty of prosecuting the offense, to the arresting
9    agency, to the chief legal officer of the unit of local
10    government effecting the arrest, and to such other
11    criminal justice agencies as may be ordered by the court.
12        (9) Implementation of order.
13            (A) Upon entry of an order to expunge records
14        pursuant to subsection (b)(2)(A) or (b)(2)(B)(ii), or
15        both:
16                (i) the records shall be expunged (as defined
17            in subsection (a)(1)(E)) by the arresting agency,
18            the Illinois State Police, and any other agency as
19            ordered by the court, within 60 days of the date of
20            service of the order, unless a motion to vacate,
21            modify, or reconsider the order is filed pursuant
22            to paragraph (12) of subsection (d) of this
23            Section;
24                (ii) the records of the circuit court clerk
25            shall be impounded until further order of the
26            court upon good cause shown and the name of the

 

 

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1            petitioner obliterated on the official index
2            required to be kept by the circuit court clerk
3            under Section 16 of the Clerks of Courts Act, but
4            the order shall not affect any index issued by the
5            circuit court clerk before the entry of the order;
6            and
7                (iii) in response to an inquiry for expunged
8            records, the court, the Illinois State Police, or
9            the agency receiving such inquiry, shall reply as
10            it does in response to inquiries when no records
11            ever existed.
12            (B) Upon entry of an order to expunge records
13        pursuant to subsection (b)(2)(B)(i) or (b)(2)(C), or
14        both:
15                (i) the records shall be expunged (as defined
16            in subsection (a)(1)(E)) by the arresting agency
17            and any other agency as ordered by the court,
18            within 60 days of the date of service of the order,
19            unless a motion to vacate, modify, or reconsider
20            the order is filed pursuant to paragraph (12) of
21            subsection (d) of this Section;
22                (ii) the records of the circuit court clerk
23            shall be impounded until further order of the
24            court upon good cause shown and the name of the
25            petitioner obliterated on the official index
26            required to be kept by the circuit court clerk

 

 

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1            under Section 16 of the Clerks of Courts Act, but
2            the order shall not affect any index issued by the
3            circuit court clerk before the entry of the order;
4                (iii) the records shall be impounded by the
5            Illinois State Police within 60 days of the date
6            of service of the order as ordered by the court,
7            unless a motion to vacate, modify, or reconsider
8            the order is filed pursuant to paragraph (12) of
9            subsection (d) of this Section;
10                (iv) records impounded by the Illinois State
11            Police may be disseminated by the Illinois State
12            Police only as required by law or to the arresting
13            authority, the State's Attorney, and the court
14            upon a later arrest for the same or a similar
15            offense or for the purpose of sentencing for any
16            subsequent felony, and to the Department of
17            Corrections upon conviction for any offense; and
18                (v) in response to an inquiry for such records
19            from anyone not authorized by law to access such
20            records, the court, the Illinois State Police, or
21            the agency receiving such inquiry shall reply as
22            it does in response to inquiries when no records
23            ever existed.
24            (B-5) Upon entry of an order to expunge records
25        under subsection (e-6):
26                (i) the records shall be expunged (as defined

 

 

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1            in subsection (a)(1)(E)) by the arresting agency
2            and any other agency as ordered by the court,
3            within 60 days of the date of service of the order,
4            unless a motion to vacate, modify, or reconsider
5            the order is filed under paragraph (12) of
6            subsection (d) of this Section;
7                (ii) the records of the circuit court clerk
8            shall be impounded until further order of the
9            court upon good cause shown and the name of the
10            petitioner obliterated on the official index
11            required to be kept by the circuit court clerk
12            under Section 16 of the Clerks of Courts Act, but
13            the order shall not affect any index issued by the
14            circuit court clerk before the entry of the order;
15                (iii) the records shall be impounded by the
16            Illinois State Police within 60 days of the date
17            of service of the order as ordered by the court,
18            unless a motion to vacate, modify, or reconsider
19            the order is filed under paragraph (12) of
20            subsection (d) of this Section;
21                (iv) records impounded by the Illinois State
22            Police may be disseminated by the Illinois State
23            Police only as required by law or to the arresting
24            authority, the State's Attorney, and the court
25            upon a later arrest for the same or a similar
26            offense or for the purpose of sentencing for any

 

 

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1            subsequent felony, and to the Department of
2            Corrections upon conviction for any offense; and
3                (v) in response to an inquiry for these
4            records from anyone not authorized by law to
5            access the records, the court, the Illinois State
6            Police, or the agency receiving the inquiry shall
7            reply as it does in response to inquiries when no
8            records ever existed.
9            (C) Upon entry of an order to seal records under
10        subsection (c), the arresting agency, any other agency
11        as ordered by the court, the Illinois State Police,
12        and the court shall seal the records (as defined in
13        subsection (a)(1)(K)). In response to an inquiry for
14        such records, from anyone not authorized by law to
15        access such records, the court, the Illinois State
16        Police, or the agency receiving such inquiry shall
17        reply as it does in response to inquiries when no
18        records ever existed.
19            (D) The Illinois State Police shall send written
20        notice to the petitioner of its compliance with each
21        order to expunge or seal records within 60 days of the
22        date of service of that order or, if a motion to
23        vacate, modify, or reconsider is filed, within 60 days
24        of service of the order resolving the motion, if that
25        order requires the Illinois State Police to expunge or
26        seal records. In the event of an appeal from the

 

 

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1        circuit court order, the Illinois State Police shall
2        send written notice to the petitioner of its
3        compliance with an Appellate Court or Supreme Court
4        judgment to expunge or seal records within 60 days of
5        the issuance of the court's mandate. The notice is not
6        required while any motion to vacate, modify, or
7        reconsider, or any appeal or petition for
8        discretionary appellate review, is pending.
9            (E) Upon motion, the court may order that a sealed
10        judgment or other court record necessary to
11        demonstrate the amount of any legal financial
12        obligation due and owing be made available for the
13        limited purpose of collecting any legal financial
14        obligations owed by the petitioner that were
15        established, imposed, or originated in the criminal
16        proceeding for which those records have been sealed.
17        The records made available under this subparagraph (E)
18        shall not be entered into the official index required
19        to be kept by the circuit court clerk under Section 16
20        of the Clerks of Courts Act and shall be immediately
21        re-impounded upon the collection of the outstanding
22        financial obligations.
23            (F) Notwithstanding any other provision of this
24        Section, a circuit court clerk may access a sealed
25        record for the limited purpose of collecting payment
26        for any legal financial obligations that were

 

 

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1        established, imposed, or originated in the criminal
2        proceedings for which those records have been sealed.
3        (10) Fees. The Illinois State Police may charge the
4    petitioner a fee equivalent to the cost of processing any
5    order to expunge or seal records. Notwithstanding any
6    provision of the Clerks of Courts Act to the contrary, the
7    circuit court clerk may charge a fee equivalent to the
8    cost associated with the sealing or expungement of records
9    by the circuit court clerk. From the total filing fee
10    collected for the petition to seal or expunge, the circuit
11    court clerk shall deposit $10 into the Circuit Court Clerk
12    Operation and Administrative Fund, to be used to offset
13    the costs incurred by the circuit court clerk in
14    performing the additional duties required to serve the
15    petition to seal or expunge on all parties. The circuit
16    court clerk shall collect and remit the Illinois State
17    Police portion of the fee to the State Treasurer and it
18    shall be deposited in the State Police Services Fund. If
19    the record brought under an expungement petition was
20    previously sealed under this Section, the fee for the
21    expungement petition for that same record shall be waived.
22        (11) Final Order. No court order issued under the
23    expungement or sealing provisions of this Section shall
24    become final for purposes of appeal until 30 days after
25    service of the order on the petitioner and all parties
26    entitled to notice of the petition.

 

 

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1        (12) Motion to Vacate, Modify, or Reconsider. Under
2    Section 2-1203 of the Code of Civil Procedure, the
3    petitioner or any party entitled to notice may file a
4    motion to vacate, modify, or reconsider the order granting
5    or denying the petition to expunge or seal within 60 days
6    of service of the order. If filed more than 60 days after
7    service of the order, a petition to vacate, modify, or
8    reconsider shall comply with subsection (c) of Section
9    2-1401 of the Code of Civil Procedure. Upon filing of a
10    motion to vacate, modify, or reconsider, notice of the
11    motion shall be served upon the petitioner and all parties
12    entitled to notice of the petition.
13        (13) Effect of Order. An order granting a petition
14    under the expungement or sealing provisions of this
15    Section shall not be considered void because it fails to
16    comply with the provisions of this Section or because of
17    any error asserted in a motion to vacate, modify, or
18    reconsider. The circuit court retains jurisdiction to
19    determine whether the order is voidable and to vacate,
20    modify, or reconsider its terms based on a motion filed
21    under paragraph (12) of this subsection (d).
22        (14) Compliance with Order Granting Petition to Seal
23    Records. Unless a court has entered a stay of an order
24    granting a petition to seal, all parties entitled to
25    notice of the petition must fully comply with the terms of
26    the order within 60 days of service of the order even if a

 

 

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1    party is seeking relief from the order through a motion
2    filed under paragraph (12) of this subsection (d) or is
3    appealing the order.
4        (15) Compliance with Order Granting Petition to
5    Expunge Records. While a party is seeking relief from the
6    order granting the petition to expunge through a motion
7    filed under paragraph (12) of this subsection (d) or is
8    appealing the order, and unless a court has entered a stay
9    of that order, the parties entitled to notice of the
10    petition must seal, but need not expunge, the records
11    until there is a final order on the motion for relief or,
12    in the case of an appeal, the issuance of that court's
13    mandate.
14        (16) The changes to this subsection (d) made by Public
15    Act 98-163 apply to all petitions pending on August 5,
16    2013 (the effective date of Public Act 98-163) and to all
17    orders ruling on a petition to expunge or seal on or after
18    August 5, 2013 (the effective date of Public Act 98-163).
19    (e) Whenever a person who has been convicted of an offense
20is granted a pardon by the Governor which specifically
21authorizes expungement, he or she may, upon verified petition
22to the Chief Judge of the circuit where the person had been
23convicted, any judge of the circuit designated by the Chief
24Judge, or in counties of less than 3,000,000 inhabitants, the
25presiding trial judge at the defendant's trial, have a court
26order entered expunging the record of arrest from the official

 

 

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1records of the arresting authority and order that the records
2of the circuit court clerk and the Illinois State Police be
3sealed until further order of the court upon good cause shown
4or as otherwise provided herein, and the name of the defendant
5obliterated from the official index requested to be kept by
6the circuit court clerk under Section 16 of the Clerks of
7Courts Act in connection with the arrest and conviction for
8the offense for which he or she had been pardoned but the order
9shall not affect any index issued by the circuit court clerk
10before the entry of the order. All records sealed by the
11Illinois State Police may be disseminated by the Illinois
12State Police only to the arresting authority, the State's
13Attorney, and the court upon a later arrest for the same or
14similar offense or for the purpose of sentencing for any
15subsequent felony. Upon conviction for any subsequent offense,
16the Department of Corrections shall have access to all sealed
17records of the Illinois State Police pertaining to that
18individual. Upon entry of the order of expungement, the
19circuit court clerk shall promptly mail a copy of the order to
20the person who was pardoned.
21    (e-5) Whenever a person who has been convicted of an
22offense is granted a certificate of eligibility for sealing by
23the Prisoner Review Board which specifically authorizes
24sealing, he or she may, upon verified petition to the Chief
25Judge of the circuit where the person had been convicted, any
26judge of the circuit designated by the Chief Judge, or in

 

 

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1counties of less than 3,000,000 inhabitants, the presiding
2trial judge at the petitioner's trial, have a court order
3entered sealing the record of arrest from the official records
4of the arresting authority and order that the records of the
5circuit court clerk and the Illinois State Police be sealed
6until further order of the court upon good cause shown or as
7otherwise provided herein, and the name of the petitioner
8obliterated from the official index requested to be kept by
9the circuit court clerk under Section 16 of the Clerks of
10Courts Act in connection with the arrest and conviction for
11the offense for which he or she had been granted the
12certificate but the order shall not affect any index issued by
13the circuit court clerk before the entry of the order. All
14records sealed by the Illinois State Police may be
15disseminated by the Illinois State Police only as required by
16this Act or to the arresting authority, a law enforcement
17agency, the State's Attorney, and the court upon a later
18arrest for the same or similar offense or for the purpose of
19sentencing for any subsequent felony. Upon conviction for any
20subsequent offense, the Department of Corrections shall have
21access to all sealed records of the Illinois State Police
22pertaining to that individual. Upon entry of the order of
23sealing, the circuit court clerk shall promptly mail a copy of
24the order to the person who was granted the certificate of
25eligibility for sealing.
26    (e-6) Whenever a person who has been convicted of an

 

 

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1offense is granted a certificate of eligibility for
2expungement by the Prisoner Review Board which specifically
3authorizes expungement, he or she may, upon verified petition
4to the Chief Judge of the circuit where the person had been
5convicted, any judge of the circuit designated by the Chief
6Judge, or in counties of less than 3,000,000 inhabitants, the
7presiding trial judge at the petitioner's trial, have a court
8order entered expunging the record of arrest from the official
9records of the arresting authority and order that the records
10of the circuit court clerk and the Illinois State Police be
11sealed until further order of the court upon good cause shown
12or as otherwise provided herein, and the name of the
13petitioner obliterated from the official index requested to be
14kept by the circuit court clerk under Section 16 of the Clerks
15of Courts Act in connection with the arrest and conviction for
16the offense for which he or she had been granted the
17certificate but the order shall not affect any index issued by
18the circuit court clerk before the entry of the order. All
19records sealed by the Illinois State Police may be
20disseminated by the Illinois State Police only as required by
21this Act or to the arresting authority, a law enforcement
22agency, the State's Attorney, and the court upon a later
23arrest for the same or similar offense or for the purpose of
24sentencing for any subsequent felony. Upon conviction for any
25subsequent offense, the Department of Corrections shall have
26access to all expunged records of the Illinois State Police

 

 

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1pertaining to that individual. Upon entry of the order of
2expungement, the circuit court clerk shall promptly mail a
3copy of the order to the person who was granted the certificate
4of eligibility for expungement.
5    (f) Subject to available funding, the Illinois Department
6of Corrections shall conduct a study of the impact of sealing,
7especially on employment and recidivism rates, utilizing a
8random sample of those who apply for the sealing of their
9criminal records under Public Act 93-211. At the request of
10the Illinois Department of Corrections, records of the
11Illinois Department of Employment Security shall be utilized
12as appropriate to assist in the study. The study shall not
13disclose any data in a manner that would allow the
14identification of any particular individual or employing unit.
15The study shall be made available to the General Assembly no
16later than September 1, 2010.
17    (g) Immediate Sealing.
18        (1) Applicability. Notwithstanding any other provision
19    of this Act to the contrary, and cumulative with any
20    rights to expungement or sealing of criminal records, this
21    subsection authorizes the immediate sealing of criminal
22    records of adults and of minors prosecuted as adults.
23        (2) Eligible Records. Arrests or charges not initiated
24    by arrest resulting in acquittal or dismissal with
25    prejudice, except as excluded by subsection (a)(3)(B),
26    that occur on or after January 1, 2018 (the effective date

 

 

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1    of Public Act 100-282), may be sealed immediately if the
2    petition is filed with the circuit court clerk on the same
3    day and during the same hearing in which the case is
4    disposed.
5        (3) When Records are Eligible to be Immediately
6    Sealed. Eligible records under paragraph (2) of this
7    subsection (g) may be sealed immediately after entry of
8    the final disposition of a case, notwithstanding the
9    disposition of other charges in the same case.
10        (4) Notice of Eligibility for Immediate Sealing. Upon
11    entry of a disposition for an eligible record under this
12    subsection (g), the defendant shall be informed by the
13    court of his or her right to have eligible records
14    immediately sealed and the procedure for the immediate
15    sealing of these records.
16        (5) Procedure. The following procedures apply to
17    immediate sealing under this subsection (g).
18            (A) Filing the Petition. Upon entry of the final
19        disposition of the case, the defendant's attorney may
20        immediately petition the court, on behalf of the
21        defendant, for immediate sealing of eligible records
22        under paragraph (2) of this subsection (g) that are
23        entered on or after January 1, 2018 (the effective
24        date of Public Act 100-282). The immediate sealing
25        petition may be filed with the circuit court clerk
26        during the hearing in which the final disposition of

 

 

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1        the case is entered. If the defendant's attorney does
2        not file the petition for immediate sealing during the
3        hearing, the defendant may file a petition for sealing
4        at any time as authorized under subsection (c)(3)(A).
5            (B) Contents of Petition. The immediate sealing
6        petition shall be verified and shall contain the
7        petitioner's name, date of birth, current address, and
8        for each eligible record, the case number, the date of
9        arrest if applicable, the identity of the arresting
10        authority if applicable, and other information as the
11        court may require.
12            (C) Drug Test. The petitioner shall not be
13        required to attach proof that he or she has passed a
14        drug test.
15            (D) Service of Petition. A copy of the petition
16        shall be served on the State's Attorney in open court.
17        The petitioner shall not be required to serve a copy of
18        the petition on any other agency.
19            (E) Entry of Order. The presiding trial judge
20        shall enter an order granting or denying the petition
21        for immediate sealing during the hearing in which it
22        is filed. Petitions for immediate sealing shall be
23        ruled on in the same hearing in which the final
24        disposition of the case is entered.
25            (F) Hearings. The court shall hear the petition
26        for immediate sealing on the same day and during the

 

 

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1        same hearing in which the disposition is rendered.
2            (G) Service of Order. An order to immediately seal
3        eligible records shall be served in conformance with
4        subsection (d)(8).
5            (H) Implementation of Order. An order to
6        immediately seal records shall be implemented in
7        conformance with subsections (d)(9)(C) and (d)(9)(D).
8            (I) Fees. The fee imposed by the circuit court
9        clerk and the Illinois State Police shall comply with
10        paragraph (1) of subsection (d) of this Section.
11            (J) Final Order. No court order issued under this
12        subsection (g) shall become final for purposes of
13        appeal until 30 days after service of the order on the
14        petitioner and all parties entitled to service of the
15        order in conformance with subsection (d)(8).
16            (K) Motion to Vacate, Modify, or Reconsider. Under
17        Section 2-1203 of the Code of Civil Procedure, the
18        petitioner, State's Attorney, or the Illinois State
19        Police may file a motion to vacate, modify, or
20        reconsider the order denying the petition to
21        immediately seal within 60 days of service of the
22        order. If filed more than 60 days after service of the
23        order, a petition to vacate, modify, or reconsider
24        shall comply with subsection (c) of Section 2-1401 of
25        the Code of Civil Procedure.
26            (L) Effect of Order. An order granting an

 

 

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1        immediate sealing petition shall not be considered
2        void because it fails to comply with the provisions of
3        this Section or because of an error asserted in a
4        motion to vacate, modify, or reconsider. The circuit
5        court retains jurisdiction to determine whether the
6        order is voidable, and to vacate, modify, or
7        reconsider its terms based on a motion filed under
8        subparagraph (L) of this subsection (g).
9            (M) Compliance with Order Granting Petition to
10        Seal Records. Unless a court has entered a stay of an
11        order granting a petition to immediately seal, all
12        parties entitled to service of the order must fully
13        comply with the terms of the order within 60 days of
14        service of the order.
15    (h) Sealing or vacation and expungement of trafficking
16victims' crimes.
17        (1) A trafficking victim, as defined by paragraph (10)
18    of subsection (a) of Section 10-9 of the Criminal Code of
19    2012, may petition for vacation and expungement or
20    immediate sealing of his or her criminal record upon the
21    completion of his or her last sentence if his or her
22    participation in the underlying offense was a result of
23    human trafficking under Section 10-9 of the Criminal Code
24    of 2012 or a severe form of trafficking under the federal
25    Trafficking Victims Protection Act.
26        (1.5) A petition under paragraph (1) shall be

 

 

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1    prepared, signed, and filed in accordance with Supreme
2    Court Rule 9. The court may allow the petitioner to attend
3    any required hearing remotely in accordance with local
4    rules. The court may allow a petition to be filed under
5    seal if the public filing of the petition would constitute
6    a risk of harm to the petitioner.
7        (2) A petitioner under this subsection (h), in
8    addition to the requirements provided under paragraph (4)
9    of subsection (d) of this Section, shall include in his or
10    her petition a clear and concise statement that: (A) he or
11    she was a victim of human trafficking at the time of the
12    offense; and (B) that his or her participation in the
13    offense was a result of human trafficking under Section
14    10-9 of the Criminal Code of 2012 or a severe form of
15    trafficking under the federal Trafficking Victims
16    Protection Act.
17        (3) If an objection is filed alleging that the
18    petitioner is not entitled to vacation and expungement or
19    immediate sealing under this subsection (h), the court
20    shall conduct a hearing under paragraph (7) of subsection
21    (d) of this Section and the court shall determine whether
22    the petitioner is entitled to vacation and expungement or
23    immediate sealing under this subsection (h). A petitioner
24    is eligible for vacation and expungement or immediate
25    relief under this subsection (h) if he or she shows, by a
26    preponderance of the evidence, that: (A) he or she was a

 

 

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1    victim of human trafficking at the time of the offense;
2    and (B) that his or her participation in the offense was a
3    result of human trafficking under Section 10-9 of the
4    Criminal Code of 2012 or a severe form of trafficking
5    under the federal Trafficking Victims Protection Act.
6    (i) Minor Cannabis Offenses under the Cannabis Control
7Act.
8        (1) Expungement of Arrest Records of Minor Cannabis
9    Offenses.
10            (A) The Illinois State Police and all law
11        enforcement agencies within the State shall
12        automatically expunge all criminal history records of
13        an arrest, charge not initiated by arrest, order of
14        supervision, or order of qualified probation for a
15        Minor Cannabis Offense committed prior to June 25,
16        2019 (the effective date of Public Act 101-27) if:
17                (i) One year or more has elapsed since the
18            date of the arrest or law enforcement interaction
19            documented in the records; and
20                (ii) No criminal charges were filed relating
21            to the arrest or law enforcement interaction or
22            criminal charges were filed and subsequently
23            dismissed or vacated or the arrestee was
24            acquitted.
25            (B) If the law enforcement agency is unable to
26        verify satisfaction of condition (ii) in paragraph

 

 

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1        (A), records that satisfy condition (i) in paragraph
2        (A) shall be automatically expunged.
3            (C) Records shall be expunged by the law
4        enforcement agency under the following timelines:
5                (i) Records created prior to June 25, 2019
6            (the effective date of Public Act 101-27), but on
7            or after January 1, 2013, shall be automatically
8            expunged prior to January 1, 2021;
9                (ii) Records created prior to January 1, 2013,
10            but on or after January 1, 2000, shall be
11            automatically expunged prior to January 1, 2023;
12                (iii) Records created prior to January 1, 2000
13            shall be automatically expunged prior to January
14            1, 2025.
15            In response to an inquiry for expunged records,
16        the law enforcement agency receiving such inquiry
17        shall reply as it does in response to inquiries when no
18        records ever existed; however, it shall provide a
19        certificate of disposition or confirmation that the
20        record was expunged to the individual whose record was
21        expunged if such a record exists.
22            (D) Nothing in this Section shall be construed to
23        restrict or modify an individual's right to have that
24        individual's records expunged except as otherwise may
25        be provided in this Act, or diminish or abrogate any
26        rights or remedies otherwise available to the

 

 

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1        individual.
2        (2) Pardons Authorizing Expungement of Minor Cannabis
3    Offenses.
4            (A) Upon June 25, 2019 (the effective date of
5        Public Act 101-27), the Department of State Police
6        shall review all criminal history record information
7        and identify all records that meet all of the
8        following criteria:
9                (i) one or more convictions for a Minor
10            Cannabis Offense;
11                (ii) the conviction identified in paragraph
12            (2)(A)(i) did not include a penalty enhancement
13            under Section 7 of the Cannabis Control Act; and
14                (iii) the conviction identified in paragraph
15            (2)(A)(i) is not associated with a conviction for
16            a violent crime as defined in subsection (c) of
17            Section 3 of the Rights of Crime Victims and
18            Witnesses Act.
19            (B) Within 180 days after June 25, 2019 (the
20        effective date of Public Act 101-27), the Department
21        of State Police shall notify the Prisoner Review Board
22        of all such records that meet the criteria established
23        in paragraph (2)(A).
24                (i) The Prisoner Review Board shall notify the
25            State's Attorney of the county of conviction of
26            each record identified by State Police in

 

 

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1            paragraph (2)(A) that is classified as a Class 4
2            felony. The State's Attorney may provide a written
3            objection to the Prisoner Review Board on the sole
4            basis that the record identified does not meet the
5            criteria established in paragraph (2)(A). Such an
6            objection must be filed within 60 days or by such
7            later date set by the Prisoner Review Board in the
8            notice after the State's Attorney received notice
9            from the Prisoner Review Board.
10                (ii) In response to a written objection from a
11            State's Attorney, the Prisoner Review Board is
12            authorized to conduct a non-public hearing to
13            evaluate the information provided in the
14            objection.
15                (iii) The Prisoner Review Board shall make a
16            confidential and privileged recommendation to the
17            Governor as to whether to grant a pardon
18            authorizing expungement for each of the records
19            identified by the Department of State Police as
20            described in paragraph (2)(A).
21            (C) If an individual has been granted a pardon
22        authorizing expungement as described in this Section,
23        the Prisoner Review Board, through the Attorney
24        General, shall file a petition for expungement with
25        the Chief Judge of the circuit or any judge of the
26        circuit designated by the Chief Judge where the

 

 

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1        individual had been convicted. Such petition may
2        include more than one individual. Whenever an
3        individual who has been convicted of an offense is
4        granted a pardon by the Governor that specifically
5        authorizes expungement, an objection to the petition
6        may not be filed. Petitions to expunge under this
7        subsection (i) may include more than one individual.
8        Within 90 days of the filing of such a petition, the
9        court shall enter an order expunging the records of
10        arrest from the official records of the arresting
11        authority and order that the records of the circuit
12        court clerk and the Illinois State Police be expunged
13        and the name of the defendant obliterated from the
14        official index requested to be kept by the circuit
15        court clerk under Section 16 of the Clerks of Courts
16        Act in connection with the arrest and conviction for
17        the offense for which the individual had received a
18        pardon but the order shall not affect any index issued
19        by the circuit court clerk before the entry of the
20        order. Upon entry of the order of expungement, the
21        circuit court clerk shall promptly provide a copy of
22        the order and a certificate of disposition to the
23        individual who was pardoned to the individual's last
24        known address or by electronic means (if available) or
25        otherwise make it available to the individual upon
26        request.

 

 

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1            (D) Nothing in this Section is intended to
2        diminish or abrogate any rights or remedies otherwise
3        available to the individual.
4        (3) Any individual may file a motion to vacate and
5    expunge a conviction for a misdemeanor or Class 4 felony
6    violation of Section 4 or Section 5 of the Cannabis
7    Control Act. Motions to vacate and expunge under this
8    subsection (i) may be filed with the circuit court, Chief
9    Judge of a judicial circuit or any judge of the circuit
10    designated by the Chief Judge. The circuit court clerk
11    shall promptly serve a copy of the motion to vacate and
12    expunge, and any supporting documentation, on the State's
13    Attorney or prosecutor charged with the duty of
14    prosecuting the offense. When considering such a motion to
15    vacate and expunge, a court shall consider the following:
16    the reasons to retain the records provided by law
17    enforcement, the petitioner's age, the petitioner's age at
18    the time of offense, the time since the conviction, and
19    the specific adverse consequences if denied. An individual
20    may file such a petition after the completion of any
21    non-financial sentence or non-financial condition imposed
22    by the conviction. Within 60 days of the filing of such
23    motion, a State's Attorney may file an objection to such a
24    petition along with supporting evidence. If a motion to
25    vacate and expunge is granted, the records shall be
26    expunged in accordance with subparagraphs (d)(8) and

 

 

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1    (d)(9)(A) of this Section. An agency providing civil legal
2    aid, as defined by Section 15 of the Public Interest
3    Attorney Assistance Act, assisting individuals seeking to
4    file a motion to vacate and expunge under this subsection
5    may file motions to vacate and expunge with the Chief
6    Judge of a judicial circuit or any judge of the circuit
7    designated by the Chief Judge, and the motion may include
8    more than one individual. Motions filed by an agency
9    providing civil legal aid concerning more than one
10    individual may be prepared, presented, and signed
11    electronically.
12        (4) Any State's Attorney may file a motion to vacate
13    and expunge a conviction for a misdemeanor or Class 4
14    felony violation of Section 4 or Section 5 of the Cannabis
15    Control Act. Motions to vacate and expunge under this
16    subsection (i) may be filed with the circuit court, Chief
17    Judge of a judicial circuit or any judge of the circuit
18    designated by the Chief Judge, and may include more than
19    one individual. Motions filed by a State's Attorney
20    concerning more than one individual may be prepared,
21    presented, and signed electronically. When considering
22    such a motion to vacate and expunge, a court shall
23    consider the following: the reasons to retain the records
24    provided by law enforcement, the individual's age, the
25    individual's age at the time of offense, the time since
26    the conviction, and the specific adverse consequences if

 

 

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1    denied. Upon entry of an order granting a motion to vacate
2    and expunge records pursuant to this Section, the State's
3    Attorney shall notify the Prisoner Review Board within 30
4    days. Upon entry of the order of expungement, the circuit
5    court clerk shall promptly provide a copy of the order and
6    a certificate of disposition to the individual whose
7    records will be expunged to the individual's last known
8    address or by electronic means (if available) or otherwise
9    make available to the individual upon request. If a motion
10    to vacate and expunge is granted, the records shall be
11    expunged in accordance with subparagraphs (d)(8) and
12    (d)(9)(A) of this Section.
13        (5) In the public interest, the State's Attorney of a
14    county has standing to file motions to vacate and expunge
15    pursuant to this Section in the circuit court with
16    jurisdiction over the underlying conviction.
17        (6) If a person is arrested for a Minor Cannabis
18    Offense as defined in this Section before June 25, 2019
19    (the effective date of Public Act 101-27) and the person's
20    case is still pending but a sentence has not been imposed,
21    the person may petition the court in which the charges are
22    pending for an order to summarily dismiss those charges
23    against him or her, and expunge all official records of
24    his or her arrest, plea, trial, conviction, incarceration,
25    supervision, or expungement. If the court determines, upon
26    review, that: (A) the person was arrested before June 25,

 

 

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1    2019 (the effective date of Public Act 101-27) for an
2    offense that has been made eligible for expungement; (B)
3    the case is pending at the time; and (C) the person has not
4    been sentenced of the minor cannabis violation eligible
5    for expungement under this subsection, the court shall
6    consider the following: the reasons to retain the records
7    provided by law enforcement, the petitioner's age, the
8    petitioner's age at the time of offense, the time since
9    the conviction, and the specific adverse consequences if
10    denied. If a motion to dismiss and expunge is granted, the
11    records shall be expunged in accordance with subparagraph
12    (d)(9)(A) of this Section.
13        (7) A person imprisoned solely as a result of one or
14    more convictions for Minor Cannabis Offenses under this
15    subsection (i) shall be released from incarceration upon
16    the issuance of an order under this subsection.
17        (8) The Illinois State Police shall allow a person to
18    use the access and review process, established in the
19    Illinois State Police, for verifying that his or her
20    records relating to Minor Cannabis Offenses of the
21    Cannabis Control Act eligible under this Section have been
22    expunged.
23        (9) No conviction vacated pursuant to this Section
24    shall serve as the basis for damages for time unjustly
25    served as provided in the Court of Claims Act.
26        (10) Effect of Expungement. A person's right to

 

 

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1    expunge an expungeable offense shall not be limited under
2    this Section. The effect of an order of expungement shall
3    be to restore the person to the status he or she occupied
4    before the arrest, charge, or conviction.
5        (11) Information. The Illinois State Police shall post
6    general information on its website about the expungement
7    process described in this subsection (i).
8    (j) Felony Prostitution Convictions.
9        (1) Automatic Sealing of Felony Prostitution Arrests.
10            (A) The Illinois State Police and local law
11        enforcement agencies within the State shall
12        automatically seal the law enforcement records
13        relating to a person's Class 4 felony arrests and
14        charges not initiated by arrest for prostitution if
15        that arrest or charge not initiated by arrest is
16        eligible for sealing under paragraph (2) of subsection
17        (c).
18            (B) In the absence of a court order or upon the
19        order of a court, the clerk of the circuit court shall
20        automatically seal the court records and case files
21        relating to a person's Class 4 felony arrests and
22        charges not initiated by arrest for prostitution if
23        that arrest or charge not initiated by arrest is
24        eligible for sealing under paragraph (2) of subsection
25        (c).
26            (C) The automatic sealing described in this

 

 

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1        paragraph (1) shall be completed no later than January
2        1, 2028.
3        (2) Automatic Sealing of Felony Prostitution
4    Convictions.
5            (A) The Illinois State Police and local law
6        enforcement agencies within the State shall
7        automatically seal the law enforcement records
8        relating to a person's Class 4 felony conviction for
9        prostitution if those records are eligible for sealing
10        under paragraph (2) of subsection (c).
11            (B) In the absence of a court order or upon the
12        order of a court, the clerk of the circuit court shall
13        automatically seal the court records relating to a
14        person's Class 4 felony conviction for prostitution if
15        those records are eligible for sealing under paragraph
16        (2) of subsection (c).
17            (C) The automatic sealing of records described in
18        this paragraph (2) shall be completed no later than
19        January 1, 2028.
20        (3) Motions to Vacate and Expunge Felony Prostitution
21    Convictions. Any individual may file a motion to vacate
22    and expunge a conviction for a prior Class 4 felony
23    violation of prostitution. Motions to vacate and expunge
24    under this subsection (j) may be filed with the circuit
25    court, Chief Judge of a judicial circuit, or any judge of
26    the circuit designated by the Chief Judge. When

 

 

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1    considering the motion to vacate and expunge, a court
2    shall consider the following:
3            (A) the reasons to retain the records provided by
4        law enforcement;
5            (B) the petitioner's age;
6            (C) the petitioner's age at the time of offense;
7        and
8            (D) the time since the conviction, and the
9        specific adverse consequences if denied. An individual
10        may file the petition after the completion of any
11        sentence or condition imposed by the conviction.
12        Within 60 days of the filing of the motion, a State's
13        Attorney may file an objection to the petition along
14        with supporting evidence. If a motion to vacate and
15        expunge is granted, the records shall be expunged in
16        accordance with subparagraph (d)(9)(A) of this
17        Section. An agency providing civil legal aid, as
18        defined in Section 15 of the Public Interest Attorney
19        Assistance Act, assisting individuals seeking to file
20        a motion to vacate and expunge under this subsection
21        may file motions to vacate and expunge with the Chief
22        Judge of a judicial circuit or any judge of the circuit
23        designated by the Chief Judge, and the motion may
24        include more than one individual.
25        (4) Any State's Attorney may file a motion to vacate
26    and expunge a conviction for a Class 4 felony violation of

 

 

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1    prostitution. Motions to vacate and expunge under this
2    subsection (j) may be filed with the circuit court, Chief
3    Judge of a judicial circuit, or any judge of the circuit
4    court designated by the Chief Judge, and may include more
5    than one individual. When considering the motion to vacate
6    and expunge, a court shall consider the following reasons:
7            (A) the reasons to retain the records provided by
8        law enforcement;
9            (B) the petitioner's age;
10            (C) the petitioner's age at the time of offense;
11            (D) the time since the conviction; and
12            (E) the specific adverse consequences if denied.
13        If the State's Attorney files a motion to vacate and
14    expunge records for felony prostitution convictions
15    pursuant to this Section, the State's Attorney shall
16    notify the Prisoner Review Board within 30 days of the
17    filing. If a motion to vacate and expunge is granted, the
18    records shall be expunged in accordance with subparagraph
19    (d)(9)(A) of this Section.
20        (5) In the public interest, the State's Attorney of a
21    county has standing to file motions to vacate and expunge
22    pursuant to this Section in the circuit court with
23    jurisdiction over the underlying conviction.
24        (6) The Illinois State Police shall allow a person to
25    a use the access and review process, established in the
26    Illinois State Police, for verifying that his or her

 

 

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1    records relating to felony prostitution eligible under
2    this Section have been expunged.
3        (7) No conviction vacated pursuant to this Section
4    shall serve as the basis for damages for time unjustly
5    served as provided in the Court of Claims Act.
6        (8) Effect of Expungement. A person's right to expunge
7    an expungeable offense shall not be limited under this
8    Section. The effect of an order of expungement shall be to
9    restore the person to the status he or she occupied before
10    the arrest, charge, or conviction.
11        (9) Information. The Illinois State Police shall post
12    general information on its website about the expungement
13    or sealing process described in this subsection (j).
14(Source: P.A. 103-35, eff. 1-1-24; 103-154, eff. 6-30-23;
15103-609, eff. 7-1-24; 103-755, eff. 8-2-24; 103-1071, eff.
167-1-25; 104-417, eff. 8-15-25; revised 1-20-26.)
 
17    (Text of Section after amendment by P.A. 104-459)
18    Sec. 5.2. Expungement, sealing, and immediate sealing.
19    (a) General Provisions.
20        (1) Definitions. In this Act, words and phrases have
21    the meanings set forth in this subsection, except when a
22    particular context clearly requires a different meaning.
23            (A) The following terms shall have the meanings
24        ascribed to them in the following Sections of the
25        Unified Code of Corrections:

 

 

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1                Business Offense, Section 5-1-2.
2                Charge, Section 5-1-3.
3                Court, Section 5-1-6.
4                Defendant, Section 5-1-7.
5                Felony, Section 5-1-9.
6                Imprisonment, Section 5-1-10.
7                Judgment, Section 5-1-12.
8                Misdemeanor, Section 5-1-14.
9                Offense, Section 5-1-15.
10                Parole, Section 5-1-16.
11                Petty Offense, Section 5-1-17.
12                Probation, Section 5-1-18.
13                Sentence, Section 5-1-19.
14                Supervision, Section 5-1-21.
15                Victim, Section 5-1-22.
16            (B) As used in this Section, "charge not initiated
17        by arrest" means a charge (as defined by Section 5-1-3
18        of the Unified Code of Corrections) brought against a
19        defendant where the defendant is not arrested prior to
20        or as a direct result of the charge.
21            (C) "Conviction" means a judgment of conviction or
22        sentence entered upon a plea of guilty or upon a
23        verdict or finding of guilty of an offense, rendered
24        by a legally constituted jury or by a court of
25        competent jurisdiction authorized to try the case
26        without a jury. An order of supervision successfully

 

 

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1        completed by the petitioner is not a conviction. An
2        order of qualified probation (as defined in subsection
3        (a)(1)(J)) successfully completed by the petitioner is
4        not a conviction. An order of supervision or an order
5        of qualified probation that is terminated
6        unsatisfactorily is a conviction, unless the
7        unsatisfactory termination is reversed, vacated, or
8        modified and the judgment of conviction, if any, is
9        reversed or vacated.
10            (D) "Criminal offense" means a petty offense,
11        business offense, misdemeanor, felony, or municipal
12        ordinance violation (as defined in subsection
13        (a)(1)(H)). As used in this Section, a minor traffic
14        offense (as defined in subsection (a)(1)(G)) shall not
15        be considered a criminal offense.
16            (E) "Expunge" means to physically destroy the
17        records or return them to the petitioner and to
18        obliterate the petitioner's name from any official
19        index or public record, or both. Nothing in this Act
20        shall require the physical destruction of the circuit
21        court file, but such records relating to arrests or
22        charges, or both, ordered expunged shall be impounded
23        as required by subsections (d)(9)(A)(ii) and
24        (d)(9)(B)(ii).
25            (F) As used in this Section, "last sentence" means
26        the sentence, order of supervision, or order of

 

 

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1        qualified probation (as defined by subsection
2        (a)(1)(J)), for a criminal offense (as defined by
3        subsection (a)(1)(D)) that terminates last in time in
4        any jurisdiction, regardless of whether the petitioner
5        has included the criminal offense for which the
6        sentence or order of supervision or qualified
7        probation was imposed in his or her petition. If
8        multiple sentences, orders of supervision, or orders
9        of qualified probation terminate on the same day and
10        are last in time, they shall be collectively
11        considered the "last sentence" regardless of whether
12        they were ordered to run concurrently.
13            (G) "Minor traffic offense" means a petty offense,
14        business offense, or Class C misdemeanor under the
15        Illinois Vehicle Code or a similar provision of a
16        municipal or local ordinance.
17            (G-5) "Minor Cannabis Offense" means a violation
18        of Section 4 or 5 of the Cannabis Control Act
19        concerning not more than 60 30 grams of any substance
20        containing cannabis, provided the violation did not
21        include a penalty enhancement under Section 7 of the
22        Cannabis Control Act and is not associated with an
23        arrest, conviction or other disposition for a violent
24        crime as defined in subsection (c) of Section 3 of the
25        Rights of Crime Victims and Witnesses Act.
26            (H) "Municipal ordinance violation" means an

 

 

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1        offense defined by a municipal or local ordinance that
2        is criminal in nature and with which the petitioner
3        was charged or for which the petitioner was arrested
4        and released without charging.
5            (I) "Petitioner" means an adult or a minor
6        prosecuted as an adult who has applied for relief
7        under this Section.
8            (J) "Qualified probation" means an order of
9        probation under Section 10 of the Cannabis Control
10        Act, Section 410 of the Illinois Controlled Substances
11        Act, Section 70 of the Methamphetamine Control and
12        Community Protection Act, Section 5-6-3.3 or 5-6-3.4
13        of the Unified Code of Corrections, Section
14        12-4.3(b)(1) and (2) of the Criminal Code of 1961 (as
15        those provisions existed before their deletion by
16        Public Act 89-313), Section 10-102 of the Illinois
17        Alcoholism and Other Drug Dependency Act, Section
18        40-10 of the Substance Use Disorder Act, or Section 10
19        of the Steroid Control Act. For the purpose of this
20        Section, "successful completion" of an order of
21        qualified probation under Section 10-102 of the
22        Illinois Alcoholism and Other Drug Dependency Act and
23        Section 40-10 of the Substance Use Disorder Act means
24        that the probation was terminated satisfactorily and
25        the judgment of conviction was vacated.
26            (K) (i) Except as provided in subdivision (ii),

 

 

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1        "seal" means to physically and electronically maintain
2        the records, unless the records would otherwise be
3        destroyed due to age, but to make the records
4        unavailable without a court order, subject to the
5        exceptions in Sections 12 and 13 of this Act. The
6        petitioner's name shall also be obliterated from the
7        official index required to be kept by the circuit
8        court clerk under Section 16 of the Clerks of Courts
9        Act, but any index issued by the circuit court clerk
10        before the entry of the order to seal shall not be
11        affected.
12            (ii) For records subject to relief under
13        subsection (k) of this Section, "seal" means to
14        physically and electronically maintain the records,
15        unless the records would otherwise be destroyed due to
16        age, but to have the records impounded, as defined in
17        paragraph (2) of subsection (b) of Section 5 of the
18        Court Record and Document Accessibility Act. The
19        defendant's name shall also be obliterated from the
20        official index required to be kept by the circuit
21        court clerk under Section 16 of the Clerks of Courts
22        Act. Upon request, and without court order, the
23        circuit court clerk shall provide to the Illinois
24        State Police the disposition information for any
25        record that was ordered to be sealed or impounded
26        pursuant to this Section.

 

 

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1            (L) "Sexual offense committed against a minor"
2        includes, but is not limited to, the offenses of
3        indecent solicitation of a child or criminal sexual
4        abuse when the victim of such offense is under 18 years
5        of age.
6            (M) "Terminate" as it relates to a sentence or
7        order of supervision or qualified probation includes
8        either satisfactory or unsatisfactory termination of
9        the sentence, unless otherwise specified in this
10        Section. A sentence is terminated notwithstanding any
11        outstanding financial legal obligation.
12        (2) Minor Traffic Offenses. Orders of supervision or
13    convictions for minor traffic offenses shall not affect a
14    petitioner's eligibility to expunge or seal records
15    pursuant to this Section.
16        (2.5) Commencing 180 days after July 29, 2016 (the
17    effective date of Public Act 99-697), the law enforcement
18    agency issuing the citation shall automatically expunge,
19    on or before January 1 and July 1 of each year, the law
20    enforcement records of a person found to have committed a
21    civil law violation of subsection (a) of Section 4 of the
22    Cannabis Control Act or subsection (c) of Section 3.5 of
23    the Drug Paraphernalia Control Act in the law enforcement
24    agency's possession or control and which contains the
25    final satisfactory disposition which pertain to the person
26    issued a citation for that offense. The law enforcement

 

 

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1    agency shall provide by rule the process for access,
2    review, and to confirm the automatic expungement by the
3    law enforcement agency issuing the citation. Commencing
4    180 days after July 29, 2016 (the effective date of Public
5    Act 99-697), the clerk of the circuit court shall expunge,
6    upon order of the court, or in the absence of a court order
7    on or before January 1 and July 1 of each year, the court
8    records of a person found in the circuit court to have
9    committed a civil law violation of subsection (a) of
10    Section 4 of the Cannabis Control Act or subsection (c) of
11    Section 3.5 of the Drug Paraphernalia Control Act in the
12    clerk's possession or control and which contains the final
13    satisfactory disposition which pertain to the person
14    issued a citation for any of those offenses.
15        (3) Exclusions. Except as otherwise provided in
16    subsections (b)(5), (b)(6), (b)(8), (e), (e-5), and (e-6)
17    of this Section, the court shall not order:
18            (A) the sealing or expungement of the records of
19        arrests or charges not initiated by arrest that result
20        in an order of supervision for or conviction of: (i)
21        any sexual offense committed against a minor; (ii)
22        Section 11-501 of the Illinois Vehicle Code or a
23        similar provision of a local ordinance; or (iii)
24        Section 11-503 of the Illinois Vehicle Code or a
25        similar provision of a local ordinance, unless the
26        arrest or charge is for a misdemeanor violation of

 

 

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1        subsection (a) of Section 11-503 or a similar
2        provision of a local ordinance, that occurred prior to
3        the offender reaching the age of 25 years and the
4        offender has no other conviction for violating Section
5        11-501 or 11-503 of the Illinois Vehicle Code or a
6        similar provision of a local ordinance.
7            (B) the sealing or expungement of records of minor
8        traffic offenses (as defined in subsection (a)(1)(G)),
9        unless the petitioner was arrested and released
10        without charging.
11            (C) the sealing of the records of arrests or
12        charges not initiated by arrest which result in an
13        order of supervision or a conviction for the following
14        offenses:
15                (i) offenses included in Article 11 of the
16            Criminal Code of 1961 or the Criminal Code of 2012
17            or a similar provision of a local ordinance,
18            except Section 11-14 and a misdemeanor violation
19            of Section 11-30 of the Criminal Code of 1961 or
20            the Criminal Code of 2012, or a similar provision
21            of a local ordinance;
22                (ii) Section 11-1.50, 12-3.4, 12-15, 12-30,
23            26-5, or 48-1 of the Criminal Code of 1961 or the
24            Criminal Code of 2012, or a similar provision of a
25            local ordinance;
26                (iii) Section 12-3.1 or 12-3.2 of the Criminal

 

 

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1            Code of 1961 or the Criminal Code of 2012, or
2            Section 125 of the Stalking No Contact Order Act,
3            or Section 219 of the Civil No Contact Order Act,
4            or a similar provision of a local ordinance;
5                (iv) Class A misdemeanors or felony offenses
6            under the Humane Care for Animals Act; or
7                (v) any offense or attempted offense that
8            would subject a person to registration under the
9            Sex Offender Registration Act.
10            (D) (blank).
11    (b) Expungement.
12        (1) A petitioner may petition the circuit court to
13    expunge the records of his or her arrests and charges not
14    initiated by arrest when each arrest or charge not
15    initiated by arrest sought to be expunged resulted in: (i)
16    acquittal, dismissal, or the petitioner's release without
17    charging, unless excluded by subsection (a)(3)(B); (ii) a
18    conviction which was vacated or reversed, unless excluded
19    by subsection (a)(3)(B); (iii) an order of supervision and
20    such supervision was successfully completed by the
21    petitioner, unless excluded by subsection (a)(3)(A) or
22    (a)(3)(B); or (iv) an order of qualified probation (as
23    defined in subsection (a)(1)(J)) and such probation was
24    successfully completed by the petitioner.
25        (1.5) When a petitioner seeks to have a record of
26    arrest expunged under this Section, and the petitioner has

 

 

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1    been convicted of a criminal offense, the State's Attorney
2    may object to the expungement on the grounds that the
3    records contain specific relevant information aside from
4    the mere fact of the arrest.
5        (2) Time frame for filing a petition to expunge.
6            (A) When the arrest or charge not initiated by
7        arrest sought to be expunged resulted in an acquittal,
8        dismissal, the petitioner's release without charging,
9        or the reversal or vacation of a conviction, there is
10        no waiting period to petition for the expungement of
11        such records.
12            (A-5) In anticipation of the successful completion
13        of a problem-solving court, pre-plea diversion, or
14        post-plea diversion program, a petition for
15        expungement may be filed 61 days before the
16        anticipated dismissal of the case or any time
17        thereafter. Upon successful completion of the program
18        and dismissal of the case, the court shall review the
19        petition of the person graduating from the program and
20        shall grant expungement if the petitioner meets all
21        requirements as specified in any applicable statute.
22            (B) When the arrest or charge not initiated by
23        arrest sought to be expunged resulted in an order of
24        supervision, successfully completed by the petitioner,
25        the following time frames will apply:
26                (i) Those arrests or charges that resulted in

 

 

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1            orders of supervision under Section 3-707, 3-708,
2            3-710, or 5-401.3 of the Illinois Vehicle Code or
3            a similar provision of a local ordinance, or under
4            Section 11-1.50, 12-3.2, or 12-15 of the Criminal
5            Code of 1961 or the Criminal Code of 2012, or a
6            similar provision of a local ordinance, shall not
7            be eligible for expungement until 5 years have
8            passed following the satisfactory termination of
9            the supervision.
10                (i-5) Those arrests or charges that resulted
11            in orders of supervision for a misdemeanor
12            violation of subsection (a) of Section 11-503 of
13            the Illinois Vehicle Code or a similar provision
14            of a local ordinance, that occurred prior to the
15            petitioner reaching the age of 25 years and the
16            petitioner has no other conviction for violating
17            Section 11-501 or 11-503 of the Illinois Vehicle
18            Code or a similar provision of a local ordinance
19            shall not be eligible for expungement until the
20            petitioner has reached the age of 25 years.
21                (ii) Those arrests or charges that resulted in
22            orders of supervision for any other offenses shall
23            not be eligible for expungement until 2 years have
24            passed following the satisfactory termination of
25            the supervision.
26            (C) When the arrest or charge not initiated by

 

 

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1        arrest sought to be expunged resulted in an order of
2        qualified probation, successfully completed by the
3        petitioner, such records shall not be eligible for
4        expungement until 5 years have passed following the
5        satisfactory termination of the probation.
6        (3) Those records maintained by the Illinois State
7    Police for persons arrested prior to their 17th birthday
8    shall be expunged as provided in Section 5-915 of the
9    Juvenile Court Act of 1987.
10        (4) Whenever a person has been arrested for or
11    convicted of any offense, in the name of a person whose
12    identity he or she has stolen or otherwise come into
13    possession of, the aggrieved person from whom the identity
14    was stolen or otherwise obtained without authorization,
15    upon learning of the person having been arrested using his
16    or her identity, may, upon verified petition to the chief
17    judge of the circuit wherein the arrest was made, have a
18    court order entered nunc pro tunc by the Chief Judge to
19    correct the arrest record, conviction record, if any, and
20    all official records of the arresting authority, the
21    Illinois State Police, other criminal justice agencies,
22    the prosecutor, and the trial court concerning such
23    arrest, if any, by removing his or her name from all such
24    records in connection with the arrest and conviction, if
25    any, and by inserting in the records the name of the
26    petitioner, if known or ascertainable, in lieu of the

 

 

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1    aggrieved's name. The records of the circuit court clerk
2    shall be sealed until further order of the court upon good
3    cause shown and the name of the aggrieved person
4    obliterated on the official index required to be kept by
5    the circuit court clerk under Section 16 of the Clerks of
6    Courts Act, but the order shall not affect any index
7    issued by the circuit court clerk before the entry of the
8    order. Nothing in this Section shall limit the Illinois
9    State Police or other criminal justice agencies or
10    prosecutors from listing under a petitioner's name the
11    false names he or she has used.
12        (5) Whenever a person has been convicted of criminal
13    sexual assault, aggravated criminal sexual assault,
14    predatory criminal sexual assault of a child, criminal
15    sexual abuse, or aggravated criminal sexual abuse, the
16    victim of that offense may request that the State's
17    Attorney of the county in which the conviction occurred
18    file a verified petition with the presiding trial judge at
19    the petitioner's trial to have a court order entered to
20    seal the records of the circuit court clerk in connection
21    with the proceedings of the trial court concerning that
22    offense. However, the records of the arresting authority
23    and the Illinois State Police concerning the offense shall
24    not be sealed. The court, upon good cause shown, shall
25    make the records of the circuit court clerk in connection
26    with the proceedings of the trial court concerning the

 

 

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1    offense available for public inspection.
2        (6) If a conviction has been set aside on direct
3    review or on collateral attack and the court determines by
4    clear and convincing evidence that the petitioner was
5    factually innocent of the charge, the court that finds the
6    petitioner factually innocent of the charge shall enter an
7    expungement order for the conviction for which the
8    petitioner has been determined to be innocent as provided
9    in subsection (b) of Section 5-5-4 of the Unified Code of
10    Corrections.
11        (7) Nothing in this Section shall prevent the Illinois
12    State Police from maintaining all records of any person
13    who is admitted to probation upon terms and conditions and
14    who fulfills those terms and conditions pursuant to
15    Section 10 of the Cannabis Control Act, Section 410 of the
16    Illinois Controlled Substances Act, Section 70 of the
17    Methamphetamine Control and Community Protection Act,
18    Section 5-6-3.3 or 5-6-3.4 of the Unified Code of
19    Corrections, Section 12-4.3 or subdivision (b)(1) of
20    Section 12-3.05 of the Criminal Code of 1961 or the
21    Criminal Code of 2012, Section 10-102 of the Illinois
22    Alcoholism and Other Drug Dependency Act, Section 40-10 of
23    the Substance Use Disorder Act, or Section 10 of the
24    Steroid Control Act.
25        (8) If the petitioner has been granted a certificate
26    of innocence under Section 2-702 of the Code of Civil

 

 

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1    Procedure, the court that grants the certificate of
2    innocence shall also enter an order expunging the
3    conviction for which the petitioner has been determined to
4    be innocent as provided in subsection (h) of Section 2-702
5    of the Code of Civil Procedure.
6    (c) Sealing.
7        (1) Applicability. Notwithstanding any other provision
8    of this Act to the contrary, and cumulative with any
9    rights to expungement of criminal records, this subsection
10    authorizes the sealing of criminal records of adults and
11    of minors prosecuted as adults. Subsection (g) of this
12    Section provides for immediate sealing of certain records.
13        (2) Eligible Records. The following records may be
14    sealed:
15            (A) All arrests resulting in release without
16        charging;
17            (B) Arrests or charges not initiated by arrest
18        resulting in acquittal, dismissal, or conviction when
19        the conviction was reversed or vacated, except as
20        excluded by subsection (a)(3)(B);
21            (C) Arrests or charges not initiated by arrest
22        resulting in orders of supervision, including orders
23        of supervision for municipal ordinance violations,
24        successfully completed by the petitioner, unless
25        excluded by subsection (a)(3);
26            (C-5) Arrests or charges not initiated by arrest

 

 

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1        resulting in orders of qualified probation;
2            (D) Arrests or charges not initiated by arrest
3        resulting in convictions with sentences of conditional
4        discharge or probation, completed without revocation
5        by the petitioner, unless otherwise excluded by
6        subsection (a)(3);
7            (E) Arrests or charges not initiated by arrest
8        resulting in misdemeanor convictions not included in
9        subsection (c)(2)(D), including convictions on
10        municipal ordinance violations, unless excluded by
11        subsection (a)(3); and
12            (F) Arrests or charges not initiated by arrest
13        resulting in felony convictions not included in
14        subsection (c)(2)(D) unless otherwise excluded by
15        subsection (a)(3).
16        (3) When Records Are Eligible to Be Sealed. Records
17    identified as eligible under subsection (c)(2) may be
18    sealed as follows:
19            (A) Records identified as eligible under
20        subsections (c)(2)(A) and (c)(2)(B) may be sealed at
21        any time.
22            (B) Records identified as eligible under
23        subsection (c)(2)(C), (c)(2)(C-5), (c)(2)(D), or
24        (c)(2)(E) may be sealed 2 years after the termination
25        of petitioner's last sentence (as defined in
26        subsection (a)(1)(F)).

 

 

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1            (C) Except as otherwise provided in subparagraphs
2        (B) and (E) of this paragraph (3), records identified
3        as eligible under subsection (c)(2)(F) may be sealed 3
4        years after the termination of the petitioner's last
5        sentence (as defined in subsection (a)(1)(F)).
6        Convictions requiring public registration under the
7        Arsonist Registry Act, the Sex Offender Registration
8        Act, or the Murderer and Violent Offender Against
9        Youth Registration Act may not be sealed until the
10        petitioner is no longer required to register under
11        that relevant Act.
12            (D) Records identified in subsection
13        (a)(3)(A)(iii) may be sealed after the petitioner has
14        reached the age of 25 years.
15            (E) Records identified as eligible under
16        subsection (c)(2)(F) may be sealed upon termination of
17        the petitioner's last sentence if the petitioner
18        earned a high school diploma, associate's degree,
19        career certificate, vocational technical
20        certification, or bachelor's degree, or passed the
21        high school level Test of General Educational
22        Development, during the period of his or her sentence
23        or mandatory supervised release. This subparagraph
24        shall apply only to a petitioner who has not completed
25        the same educational goal prior to the period of his or
26        her sentence or mandatory supervised release. If a

 

 

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1        petition for sealing eligible records filed under this
2        subparagraph is denied by the court, the time periods
3        under subparagraph (C) shall apply to any subsequent
4        petition for sealing filed by the petitioner.
5        (4) (Blank).
6        (5) Notice of eligibility for sealing. Upon entry of a
7    disposition for an eligible record under this subsection
8    (c), the petitioner shall be informed by the court of the
9    right to have the records sealed and the procedures for
10    the sealing of the records.
11    (d) Procedure. The following procedures apply to
12expungement under subsections (b), (e), and (e-6) and sealing
13under subsections (c) and (e-5):
14        (1) Filing the petition. Upon becoming eligible to
15    petition for the expungement or sealing of records under
16    this Section, the petitioner shall file a petition
17    requesting the expungement or sealing of records with the
18    clerk of the court where the arrests occurred or the
19    charges were brought, or both. If arrests occurred or
20    charges were brought in multiple jurisdictions, a petition
21    must be filed in each such jurisdiction. The petitioner
22    shall pay the applicable fee, except no fee shall be
23    required if the petitioner has obtained a court order
24    waiving fees under Supreme Court Rule 298 or it is
25    otherwise waived.
26        (1.5) County fee waiver pilot program. From August 9,

 

 

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1    2019 (the effective date of Public Act 101-306) through
2    December 31, 2020, in a county of 3,000,000 or more
3    inhabitants, no fee shall be required to be paid by a
4    petitioner if the records sought to be expunged or sealed
5    were arrests resulting in release without charging or
6    arrests or charges not initiated by arrest resulting in
7    acquittal, dismissal, or conviction when the conviction
8    was reversed or vacated, unless excluded by subsection
9    (a)(3)(B). The provisions of this paragraph (1.5), other
10    than this sentence, are inoperative on and after January
11    1, 2022.
12        (2) Contents of petition. The petition shall be
13    verified and shall contain the petitioner's name, date of
14    birth, current address and, for each arrest or charge not
15    initiated by arrest sought to be sealed or expunged, the
16    case number, the date of arrest (if any), the identity of
17    the arresting authority, and such other information as the
18    court may require. During the pendency of the proceeding,
19    the petitioner shall promptly notify the circuit court
20    clerk of any change of his or her address. If the
21    petitioner has received a certificate of eligibility for
22    sealing from the Prisoner Review Board under paragraph
23    (10) of subsection (a) of Section 3-3-2 of the Unified
24    Code of Corrections, the certificate shall be attached to
25    the petition.
26        (3) (Blank).

 

 

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1        (4) Service of petition. The circuit court clerk shall
2    promptly serve a copy of the petition and documentation to
3    support the petition under subsection (e-5) or (e-6) on
4    the State's Attorney or prosecutor charged with the duty
5    of prosecuting the offense, the Illinois State Police, the
6    arresting agency, and, for municipal ordinance violations,
7    the chief legal officer of the unit of local government
8    effecting the arrest.
9        (5) Objections.
10            (A) Any party entitled to notice of the petition
11        may file an objection to the petition. All objections
12        shall be in writing, shall be filed with the circuit
13        court clerk, and shall state with specificity the
14        basis of the objection. Whenever a person who has been
15        convicted of an offense is granted a pardon by the
16        Governor which specifically authorizes expungement, an
17        objection to the petition may not be filed.
18            (B) Objections to a petition to expunge or seal
19        must be filed within 60 days of the date of service of
20        the petition.
21        (6) Entry of order.
22            (A) The Chief Judge of the circuit wherein the
23        charge was brought, any judge of that circuit
24        designated by the Chief Judge, or in counties of less
25        than 3,000,000 inhabitants, the presiding trial judge
26        at the petitioner's trial, if any, shall rule on the

 

 

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1        petition to expunge or seal as set forth in this
2        subsection (d)(6).
3            (B) Unless the State's Attorney or prosecutor, the
4        Illinois State Police, the arresting agency, or the
5        chief legal officer files an objection to the petition
6        to expunge or seal within 60 days from the date of
7        service of the petition, the court shall enter an
8        order granting or denying the petition.
9            (C) Notwithstanding any other provision of law,
10        the court shall not deny a petition for sealing under
11        this Section because the petitioner has not satisfied
12        an outstanding legal financial obligation established,
13        imposed, or originated by a court, law enforcement
14        agency, or a municipal, State, county, or other unit
15        of local government, including, but not limited to,
16        any cost, assessment, fine, or fee. An outstanding
17        legal financial obligation does not include any court
18        ordered restitution to a victim under Section 5-5-6 of
19        the Unified Code of Corrections, unless the
20        restitution has been converted to a civil judgment.
21        Nothing in this subparagraph (C) waives, rescinds, or
22        abrogates a legal financial obligation or otherwise
23        eliminates or affects the right of the holder of any
24        financial obligation to pursue collection under
25        applicable federal, State, or local law.
26            (D) (Blank).

 

 

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1        (7) Hearings. If an objection is filed, the court
2    shall set a date for a hearing and notify the petitioner
3    and all parties entitled to notice of the petition of the
4    hearing date at least 30 days prior to the hearing. Prior
5    to the hearing, the State's Attorney shall consult with
6    the Illinois State Police as to the appropriateness of the
7    relief sought in the petition to expunge or seal. At the
8    hearing, the court shall hear evidence on whether the
9    petition should or should not be granted, and shall grant
10    or deny the petition to expunge or seal the records based
11    on the evidence presented at the hearing. The court may
12    consider the following:
13            (A) the strength of the evidence supporting the
14        defendant's conviction;
15            (B) the reasons for retention of the conviction
16        records by the State;
17            (C) the petitioner's age, criminal record history,
18        and employment history;
19            (D) the period of time between the petitioner's
20        arrest on the charge resulting in the conviction and
21        the filing of the petition under this Section; and
22            (E) the specific adverse consequences the
23        petitioner may be subject to if the petition is
24        denied.
25        (8) Service of order. After entering an order to
26    expunge or seal records, the court must provide copies of

 

 

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1    the order to the Illinois State Police, in a form and
2    manner prescribed by the Illinois State Police, to the
3    petitioner, to the State's Attorney or prosecutor charged
4    with the duty of prosecuting the offense, to the arresting
5    agency, to the chief legal officer of the unit of local
6    government effecting the arrest for municipal ordinance
7    violations, and to such other criminal justice agencies as
8    may be ordered by the court. The disposition information
9    for each case or record ordered expunged, sealed, or
10    impounded shall be attached to the order provided to the
11    Illinois State Police.
12        (9) Implementation of order.
13            (A) Upon entry of an order to expunge records
14        pursuant to subsection (b)(2)(A) or (b)(2)(B)(ii), or
15        both:
16                (i) the records shall be expunged (as defined
17            in subsection (a)(1)(E)) by the arresting agency,
18            the Illinois State Police, and any other agency as
19            ordered by the court, within 60 days of the date of
20            service of the order, unless a motion to vacate,
21            modify, or reconsider the order is filed pursuant
22            to paragraph (12) of subsection (d) of this
23            Section;
24                (ii) the records of the circuit court clerk
25            shall be impounded until further order of the
26            court upon good cause shown and the name of the

 

 

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1            petitioner obliterated on the official index
2            required to be kept by the circuit court clerk
3            under Section 16 of the Clerks of Courts Act, but
4            the order shall not affect any index issued by the
5            circuit court clerk before the entry of the order;
6            and
7                (iii) in response to an inquiry for expunged
8            records, the court, the Illinois State Police, or
9            the agency receiving such inquiry, shall reply as
10            it does in response to inquiries when no records
11            ever existed.
12            (B) Upon entry of an order to expunge records
13        pursuant to subsection (b)(2)(B)(i) or (b)(2)(C), or
14        both:
15                (i) the records shall be expunged (as defined
16            in subsection (a)(1)(E)) by the arresting agency
17            and any other agency as ordered by the court,
18            within 60 days of the date of service of the order,
19            unless a motion to vacate, modify, or reconsider
20            the order is filed pursuant to paragraph (12) of
21            subsection (d) of this Section;
22                (ii) the records of the circuit court clerk
23            shall be impounded until further order of the
24            court upon good cause shown and the name of the
25            petitioner obliterated on the official index
26            required to be kept by the circuit court clerk

 

 

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1            under Section 16 of the Clerks of Courts Act, but
2            the order shall not affect any index issued by the
3            circuit court clerk before the entry of the order;
4                (iii) the records shall be impounded by the
5            Illinois State Police within 60 days of the date
6            of service of the order as ordered by the court,
7            unless a motion to vacate, modify, or reconsider
8            the order is filed pursuant to paragraph (12) of
9            subsection (d) of this Section;
10                (iv) records impounded by the Illinois State
11            Police may be disseminated by the Illinois State
12            Police only as required by law or to the arresting
13            authority, the State's Attorney, and the court
14            upon a later arrest for the same or a similar
15            offense or for the purpose of sentencing for any
16            subsequent felony, and to the Department of
17            Corrections upon conviction for any offense; and
18                (v) in response to an inquiry for such records
19            from anyone not authorized by law to access such
20            records, the court, the Illinois State Police, or
21            the agency receiving such inquiry shall reply as
22            it does in response to inquiries when no records
23            ever existed.
24            (B-5) Upon entry of an order to expunge records
25        under subsection (e-6):
26                (i) the records shall be expunged (as defined

 

 

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1            in subsection (a)(1)(E)) by the arresting agency
2            and any other agency as ordered by the court,
3            within 60 days of the date of service of the order,
4            unless a motion to vacate, modify, or reconsider
5            the order is filed under paragraph (12) of
6            subsection (d) of this Section;
7                (ii) the records of the circuit court clerk
8            shall be impounded until further order of the
9            court upon good cause shown and the name of the
10            petitioner obliterated on the official index
11            required to be kept by the circuit court clerk
12            under Section 16 of the Clerks of Courts Act, but
13            the order shall not affect any index issued by the
14            circuit court clerk before the entry of the order;
15                (iii) the records shall be impounded by the
16            Illinois State Police within 60 days of the date
17            of service of the order as ordered by the court,
18            unless a motion to vacate, modify, or reconsider
19            the order is filed under paragraph (12) of
20            subsection (d) of this Section;
21                (iv) records impounded by the Illinois State
22            Police may be disseminated by the Illinois State
23            Police only as required by law or to the arresting
24            authority, the State's Attorney, and the court
25            upon a later arrest for the same or a similar
26            offense or for the purpose of sentencing for any

 

 

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1            subsequent felony, and to the Department of
2            Corrections upon conviction for any offense; and
3                (v) in response to an inquiry for these
4            records from anyone not authorized by law to
5            access the records, the court, the Illinois State
6            Police, or the agency receiving the inquiry shall
7            reply as it does in response to inquiries when no
8            records ever existed.
9            (C) Upon entry of an order to seal records under
10        subsection (c), the arresting agency, any other agency
11        as ordered by the court, the Illinois State Police,
12        and the court shall seal the records (as defined in
13        subsection (a)(1)(K)). In response to an inquiry for
14        such records, from anyone not authorized by law to
15        access such records, the court, the Illinois State
16        Police, or the agency receiving such inquiry shall
17        reply as it does in response to inquiries when no
18        records ever existed.
19            (D) The Illinois State Police shall send written
20        notice to the petitioner of its compliance with each
21        order to expunge or seal records within 60 days of the
22        date of service of that order or, if a motion to
23        vacate, modify, or reconsider is filed, within 60 days
24        of service of the order resolving the motion, if that
25        order requires the Illinois State Police to expunge or
26        seal records. In the event of an appeal from the

 

 

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1        circuit court order, the Illinois State Police shall
2        send written notice to the petitioner of its
3        compliance with an Appellate Court or Supreme Court
4        judgment to expunge or seal records within 60 days of
5        the issuance of the court's mandate. The notice is not
6        required while any motion to vacate, modify, or
7        reconsider, or any appeal or petition for
8        discretionary appellate review, is pending.
9            (E) Upon motion, the court may order that a sealed
10        judgment or other court record necessary to
11        demonstrate the amount of any legal financial
12        obligation due and owing be made available for the
13        limited purpose of collecting any legal financial
14        obligations owed by the petitioner that were
15        established, imposed, or originated in the criminal
16        proceeding for which those records have been sealed.
17        The records made available under this subparagraph (E)
18        shall not be entered into the official index required
19        to be kept by the circuit court clerk under Section 16
20        of the Clerks of Courts Act and shall be immediately
21        re-impounded upon the collection of the outstanding
22        financial obligations.
23            (F) Notwithstanding any other provision of this
24        Section, a circuit court clerk may access a sealed
25        record for the limited purpose of collecting payment
26        for any legal financial obligations that were

 

 

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1        established, imposed, or originated in the criminal
2        proceedings for which those records have been sealed.
3        (10) Fees. The Illinois State Police may charge the
4    petitioner a fee equivalent to the cost of processing any
5    order to expunge or seal records. Notwithstanding any
6    provision of the Clerks of Courts Act to the contrary, the
7    circuit court clerk may charge a fee equivalent to the
8    cost associated with the sealing or expungement of records
9    by the circuit court clerk. From the total filing fee
10    collected for the petition to seal or expunge, the circuit
11    court clerk shall deposit $10 into the Circuit Court Clerk
12    Operation and Administrative Fund, to be used to offset
13    the costs incurred by the circuit court clerk in
14    performing the additional duties required to serve the
15    petition to seal or expunge on all parties. The circuit
16    court clerk shall collect and remit the Illinois State
17    Police portion of the fee to the State Treasurer and it
18    shall be deposited in the State Police Services Fund. If
19    the record brought under an expungement petition was
20    previously sealed under this Section, the fee for the
21    expungement petition for that same record shall be waived.
22        (11) Final Order. No court order issued under the
23    expungement or sealing provisions of this Section shall
24    become final for purposes of appeal until 30 days after
25    service of the order on the petitioner and all parties
26    entitled to notice of the petition.

 

 

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1        (12) Motion to Vacate, Modify, or Reconsider. Under
2    Section 2-1203 of the Code of Civil Procedure, the
3    petitioner or any party entitled to notice may file a
4    motion to vacate, modify, or reconsider the order granting
5    or denying the petition to expunge or seal within 60 days
6    of service of the order. If filed more than 60 days after
7    service of the order, a petition to vacate, modify, or
8    reconsider shall comply with subsection (c) of Section
9    2-1401 of the Code of Civil Procedure. Upon filing of a
10    motion to vacate, modify, or reconsider, notice of the
11    motion shall be served upon the petitioner and all parties
12    entitled to notice of the petition.
13        (13) Effect of Order. An order granting a petition
14    under the expungement or sealing provisions of this
15    Section shall not be considered void because it fails to
16    comply with the provisions of this Section or because of
17    any error asserted in a motion to vacate, modify, or
18    reconsider. The circuit court retains jurisdiction to
19    determine whether the order is voidable and to vacate,
20    modify, or reconsider its terms based on a motion filed
21    under paragraph (12) of this subsection (d).
22        (14) Compliance with Order Granting Petition to Seal
23    Records. Unless a court has entered a stay of an order
24    granting a petition to seal, all parties entitled to
25    notice of the petition must fully comply with the terms of
26    the order within 60 days of service of the order even if a

 

 

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1    party is seeking relief from the order through a motion
2    filed under paragraph (12) of this subsection (d) or is
3    appealing the order.
4        (15) Compliance with Order Granting Petition to
5    Expunge Records. While a party is seeking relief from the
6    order granting the petition to expunge through a motion
7    filed under paragraph (12) of this subsection (d) or is
8    appealing the order, and unless a court has entered a stay
9    of that order, the parties entitled to notice of the
10    petition must seal, but need not expunge, the records
11    until there is a final order on the motion for relief or,
12    in the case of an appeal, the issuance of that court's
13    mandate.
14        (16) The changes to this subsection (d) made by Public
15    Act 98-163 apply to all petitions pending on August 5,
16    2013 (the effective date of Public Act 98-163) and to all
17    orders ruling on a petition to expunge or seal on or after
18    August 5, 2013 (the effective date of Public Act 98-163).
19        (17) Upon request, and without court order, the
20    circuit court clerk shall provide the disposition
21    information for any record that was ordered to be sealed
22    or impounded pursuant to this Section to the Illinois
23    State Police.
24    (e) Whenever a person who has been convicted of an offense
25is granted a pardon by the Governor which specifically
26authorizes expungement, he or she may, upon verified petition

 

 

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1to the Chief Judge of the circuit where the person had been
2convicted, any judge of the circuit designated by the Chief
3Judge, or in counties of less than 3,000,000 inhabitants, the
4presiding trial judge at the defendant's trial, have a court
5order entered expunging the record of arrest from the official
6records of the arresting authority and order that the records
7of the circuit court clerk and the Illinois State Police be
8sealed until further order of the court upon good cause shown
9or as otherwise provided herein, and the name of the defendant
10obliterated from the official index requested to be kept by
11the circuit court clerk under Section 16 of the Clerks of
12Courts Act in connection with the arrest and conviction for
13the offense for which he or she had been pardoned but the order
14shall not affect any index issued by the circuit court clerk
15before the entry of the order. All records sealed by the
16Illinois State Police may be disseminated by the Illinois
17State Police only to the arresting authority, the State's
18Attorney, and the court upon a later arrest for the same or
19similar offense or for the purpose of sentencing for any
20subsequent felony. Upon conviction for any subsequent offense,
21the Department of Corrections shall have access to all sealed
22records of the Illinois State Police pertaining to that
23individual. Upon entry of the order of expungement, the
24circuit court clerk shall promptly mail a copy of the order to
25the person who was pardoned.
26    (e-5) Whenever a person who has been convicted of an

 

 

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1offense is granted a certificate of eligibility for sealing by
2the Prisoner Review Board which specifically authorizes
3sealing, he or she may, upon verified petition to the Chief
4Judge of the circuit where the person had been convicted, any
5judge of the circuit designated by the Chief Judge, or in
6counties of less than 3,000,000 inhabitants, the presiding
7trial judge at the petitioner's trial, have a court order
8entered sealing the record of arrest from the official records
9of the arresting authority and order that the records of the
10circuit court clerk and the Illinois State Police be sealed
11until further order of the court upon good cause shown or as
12otherwise provided herein, and the name of the petitioner
13obliterated from the official index requested to be kept by
14the circuit court clerk under Section 16 of the Clerks of
15Courts Act in connection with the arrest and conviction for
16the offense for which he or she had been granted the
17certificate but the order shall not affect any index issued by
18the circuit court clerk before the entry of the order. All
19records sealed by the Illinois State Police may be
20disseminated by the Illinois State Police only as required by
21this Act or to the arresting authority, a law enforcement
22agency, the State's Attorney, and the court upon a later
23arrest for the same or similar offense or for the purpose of
24sentencing for any subsequent felony. Upon conviction for any
25subsequent offense, the Department of Corrections shall have
26access to all sealed records of the Illinois State Police

 

 

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1pertaining to that individual. Upon entry of the order of
2sealing, the circuit court clerk shall promptly mail a copy of
3the order to the person who was granted the certificate of
4eligibility for sealing.
5    (e-6) Whenever a person who has been convicted of an
6offense is granted a certificate of eligibility for
7expungement by the Prisoner Review Board which specifically
8authorizes expungement, he or she may, upon verified petition
9to the Chief Judge of the circuit where the person had been
10convicted, any judge of the circuit designated by the Chief
11Judge, or in counties of less than 3,000,000 inhabitants, the
12presiding trial judge at the petitioner's trial, have a court
13order entered expunging the record of arrest from the official
14records of the arresting authority and order that the records
15of the circuit court clerk and the Illinois State Police be
16sealed until further order of the court upon good cause shown
17or as otherwise provided herein, and the name of the
18petitioner obliterated from the official index requested to be
19kept by the circuit court clerk under Section 16 of the Clerks
20of Courts Act in connection with the arrest and conviction for
21the offense for which he or she had been granted the
22certificate but the order shall not affect any index issued by
23the circuit court clerk before the entry of the order. All
24records sealed by the Illinois State Police may be
25disseminated by the Illinois State Police only as required by
26this Act or to the arresting authority, a law enforcement

 

 

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1agency, the State's Attorney, and the court upon a later
2arrest for the same or similar offense or for the purpose of
3sentencing for any subsequent felony. Upon conviction for any
4subsequent offense, the Department of Corrections shall have
5access to all expunged records of the Illinois State Police
6pertaining to that individual. Upon entry of the order of
7expungement, the circuit court clerk shall promptly mail a
8copy of the order to the person who was granted the certificate
9of eligibility for expungement.
10    (f) Subject to available funding, the Illinois Department
11of Corrections shall conduct a study of the impact of sealing,
12especially on employment and recidivism rates, utilizing a
13random sample of those who apply for the sealing of their
14criminal records under Public Act 93-211. At the request of
15the Illinois Department of Corrections, records of the
16Illinois Department of Employment Security shall be utilized
17as appropriate to assist in the study. The study shall not
18disclose any data in a manner that would allow the
19identification of any particular individual or employing unit.
20The study shall be made available to the General Assembly no
21later than September 1, 2010.
22    (g) Immediate Sealing.
23        (1) Applicability. Notwithstanding any other provision
24    of this Act to the contrary, and cumulative with any
25    rights to expungement or sealing of criminal records, this
26    subsection authorizes the immediate sealing of criminal

 

 

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1    records of adults and of minors prosecuted as adults.
2        (2) Eligible Records. Arrests or charges not initiated
3    by arrest resulting in acquittal or dismissal with
4    prejudice, except as excluded by subsection (a)(3)(B),
5    that occur on or after January 1, 2018 (the effective date
6    of Public Act 100-282), may be sealed immediately if the
7    petition is filed with the circuit court clerk on the same
8    day and during the same hearing in which the case is
9    disposed.
10        (3) When Records are Eligible to be Immediately
11    Sealed. Eligible records under paragraph (2) of this
12    subsection (g) may be sealed immediately after entry of
13    the final disposition of a case, notwithstanding the
14    disposition of other charges in the same case.
15        (4) Notice of Eligibility for Immediate Sealing. Upon
16    entry of a disposition for an eligible record under this
17    subsection (g), the defendant shall be informed by the
18    court of his or her right to have eligible records
19    immediately sealed and the procedure for the immediate
20    sealing of these records.
21        (5) Procedure. The following procedures apply to
22    immediate sealing under this subsection (g).
23            (A) Filing the Petition. Upon entry of the final
24        disposition of the case, the defendant's attorney may
25        immediately petition the court, on behalf of the
26        defendant, for immediate sealing of eligible records

 

 

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1        under paragraph (2) of this subsection (g) that are
2        entered on or after January 1, 2018 (the effective
3        date of Public Act 100-282). The immediate sealing
4        petition may be filed with the circuit court clerk
5        during the hearing in which the final disposition of
6        the case is entered. If the defendant's attorney does
7        not file the petition for immediate sealing during the
8        hearing, the defendant may file a petition for sealing
9        at any time as authorized under subsection (c)(3)(A).
10            (B) Contents of Petition. The immediate sealing
11        petition shall be verified and shall contain the
12        petitioner's name, date of birth, current address, and
13        for each eligible record, the case number, the date of
14        arrest if applicable, the identity of the arresting
15        authority if applicable, and other information as the
16        court may require.
17            (C) Drug Test. The petitioner shall not be
18        required to attach proof that he or she has passed a
19        drug test.
20            (D) Service of Petition. A copy of the petition
21        shall be served on the State's Attorney in open court.
22        The petitioner shall not be required to serve a copy of
23        the petition on any other agency.
24            (E) Entry of Order. The presiding trial judge
25        shall enter an order granting or denying the petition
26        for immediate sealing during the hearing in which it

 

 

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1        is filed. Petitions for immediate sealing shall be
2        ruled on in the same hearing in which the final
3        disposition of the case is entered.
4            (F) Hearings. The court shall hear the petition
5        for immediate sealing on the same day and during the
6        same hearing in which the disposition is rendered.
7            (G) Service of Order. An order to immediately seal
8        eligible records shall be served in conformance with
9        subsection (d)(8).
10            (H) Implementation of Order. An order to
11        immediately seal records shall be implemented in
12        conformance with subsections (d)(9)(C) and (d)(9)(D).
13            (I) Fees. The fee imposed by the circuit court
14        clerk and the Illinois State Police shall comply with
15        paragraph (1) of subsection (d) of this Section.
16            (J) Final Order. No court order issued under this
17        subsection (g) shall become final for purposes of
18        appeal until 30 days after service of the order on the
19        petitioner and all parties entitled to service of the
20        order in conformance with subsection (d)(8).
21            (K) Motion to Vacate, Modify, or Reconsider. Under
22        Section 2-1203 of the Code of Civil Procedure, the
23        petitioner, State's Attorney, or the Illinois State
24        Police may file a motion to vacate, modify, or
25        reconsider the order denying the petition to
26        immediately seal within 60 days of service of the

 

 

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1        order. If filed more than 60 days after service of the
2        order, a petition to vacate, modify, or reconsider
3        shall comply with subsection (c) of Section 2-1401 of
4        the Code of Civil Procedure.
5            (L) Effect of Order. An order granting an
6        immediate sealing petition shall not be considered
7        void because it fails to comply with the provisions of
8        this Section or because of an error asserted in a
9        motion to vacate, modify, or reconsider. The circuit
10        court retains jurisdiction to determine whether the
11        order is voidable, and to vacate, modify, or
12        reconsider its terms based on a motion filed under
13        subparagraph (L) of this subsection (g).
14            (M) Compliance with Order Granting Petition to
15        Seal Records. Unless a court has entered a stay of an
16        order granting a petition to immediately seal, all
17        parties entitled to service of the order must fully
18        comply with the terms of the order within 60 days of
19        service of the order.
20    (h) Sealing or vacation and expungement of trafficking
21victims' crimes.
22        (1) A trafficking victim, as defined by paragraph (10)
23    of subsection (a) of Section 10-9 of the Criminal Code of
24    2012, may petition for vacation and expungement or
25    immediate sealing of his or her criminal record upon the
26    completion of his or her last sentence if his or her

 

 

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1    participation in the underlying offense was a result of
2    human trafficking under Section 10-9 of the Criminal Code
3    of 2012 or a severe form of trafficking under the federal
4    Trafficking Victims Protection Act.
5        (1.5) A petition under paragraph (1) shall be
6    prepared, signed, and filed in accordance with Supreme
7    Court Rule 9. The court may allow the petitioner to attend
8    any required hearing remotely in accordance with local
9    rules. The court may allow a petition to be filed under
10    seal if the public filing of the petition would constitute
11    a risk of harm to the petitioner.
12        (2) A petitioner under this subsection (h), in
13    addition to the requirements provided under paragraph (4)
14    of subsection (d) of this Section, shall include in his or
15    her petition a clear and concise statement that: (A) he or
16    she was a victim of human trafficking at the time of the
17    offense; and (B) that his or her participation in the
18    offense was a result of human trafficking under Section
19    10-9 of the Criminal Code of 2012 or a severe form of
20    trafficking under the federal Trafficking Victims
21    Protection Act.
22        (3) If an objection is filed alleging that the
23    petitioner is not entitled to vacation and expungement or
24    immediate sealing under this subsection (h), the court
25    shall conduct a hearing under paragraph (7) of subsection
26    (d) of this Section and the court shall determine whether

 

 

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1    the petitioner is entitled to vacation and expungement or
2    immediate sealing under this subsection (h). A petitioner
3    is eligible for vacation and expungement or immediate
4    relief under this subsection (h) if he or she shows, by a
5    preponderance of the evidence, that: (A) he or she was a
6    victim of human trafficking at the time of the offense;
7    and (B) that his or her participation in the offense was a
8    result of human trafficking under Section 10-9 of the
9    Criminal Code of 2012 or a severe form of trafficking
10    under the federal Trafficking Victims Protection Act.
11    (i) Minor Cannabis Offenses under the Cannabis Control
12Act.
13        (1) Expungement of Arrest Records of Minor Cannabis
14    Offenses.
15            (A) The Illinois State Police and all law
16        enforcement agencies within the State shall
17        automatically expunge all criminal history records of
18        an arrest, charge not initiated by arrest, order of
19        supervision, or order of qualified probation for a
20        Minor Cannabis Offense committed prior to June 25,
21        2019 (the effective date of Public Act 101-27) if:
22                (i) One year or more has elapsed since the
23            date of the arrest or law enforcement interaction
24            documented in the records; and
25                (ii) No criminal charges were filed relating
26            to the arrest or law enforcement interaction or

 

 

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1            criminal charges were filed and subsequently
2            dismissed or vacated or the arrestee was
3            acquitted.
4            (B) If the law enforcement agency is unable to
5        verify satisfaction of condition (ii) in paragraph
6        (A), records that satisfy condition (i) in paragraph
7        (A) shall be automatically expunged.
8            (C) Records shall be expunged by the law
9        enforcement agency under the following timelines:
10                (i) Records created prior to June 25, 2019
11            (the effective date of Public Act 101-27), but on
12            or after January 1, 2013, shall be automatically
13            expunged prior to January 1, 2021;
14                (ii) Records created prior to January 1, 2013,
15            but on or after January 1, 2000, shall be
16            automatically expunged prior to January 1, 2023;
17                (iii) Records created prior to January 1, 2000
18            shall be automatically expunged prior to January
19            1, 2025.
20            In response to an inquiry for expunged records,
21        the law enforcement agency receiving such inquiry
22        shall reply as it does in response to inquiries when no
23        records ever existed; however, it shall provide a
24        certificate of disposition or confirmation that the
25        record was expunged to the individual whose record was
26        expunged if such a record exists.

 

 

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1            (D) Nothing in this Section shall be construed to
2        restrict or modify an individual's right to have that
3        individual's records expunged except as otherwise may
4        be provided in this Act, or diminish or abrogate any
5        rights or remedies otherwise available to the
6        individual.
7        (2) Pardons Authorizing Expungement of Minor Cannabis
8    Offenses.
9            (A) Upon June 25, 2019 (the effective date of
10        Public Act 101-27), the Department of State Police
11        shall review all criminal history record information
12        and identify all records that meet all of the
13        following criteria:
14                (i) one or more convictions for a Minor
15            Cannabis Offense;
16                (ii) the conviction identified in paragraph
17            (2)(A)(i) did not include a penalty enhancement
18            under Section 7 of the Cannabis Control Act; and
19                (iii) the conviction identified in paragraph
20            (2)(A)(i) is not associated with a conviction for
21            a violent crime as defined in subsection (c) of
22            Section 3 of the Rights of Crime Victims and
23            Witnesses Act.
24            (B) Within 180 days after June 25, 2019 (the
25        effective date of Public Act 101-27), the Department
26        of State Police shall notify the Prisoner Review Board

 

 

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1        of all such records that meet the criteria established
2        in paragraph (2)(A).
3                (i) The Prisoner Review Board shall notify the
4            State's Attorney of the county of conviction of
5            each record identified by State Police in
6            paragraph (2)(A) that is classified as a Class 4
7            felony. The State's Attorney may provide a written
8            objection to the Prisoner Review Board on the sole
9            basis that the record identified does not meet the
10            criteria established in paragraph (2)(A). Such an
11            objection must be filed within 60 days or by such
12            later date set by the Prisoner Review Board in the
13            notice after the State's Attorney received notice
14            from the Prisoner Review Board.
15                (ii) In response to a written objection from a
16            State's Attorney, the Prisoner Review Board is
17            authorized to conduct a non-public hearing to
18            evaluate the information provided in the
19            objection.
20                (iii) The Prisoner Review Board shall make a
21            confidential and privileged recommendation to the
22            Governor as to whether to grant a pardon
23            authorizing expungement for each of the records
24            identified by the Department of State Police as
25            described in paragraph (2)(A).
26            (C) If an individual has been granted a pardon

 

 

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1        authorizing expungement as described in this Section,
2        the Prisoner Review Board, through the Attorney
3        General, shall file a petition for expungement with
4        the Chief Judge of the circuit or any judge of the
5        circuit designated by the Chief Judge where the
6        individual had been convicted. Such petition may
7        include more than one individual. Whenever an
8        individual who has been convicted of an offense is
9        granted a pardon by the Governor that specifically
10        authorizes expungement, an objection to the petition
11        may not be filed. Petitions to expunge under this
12        subsection (i) may include more than one individual.
13        Within 90 days of the filing of such a petition, the
14        court shall enter an order expunging the records of
15        arrest from the official records of the arresting
16        authority and order that the records of the circuit
17        court clerk and the Illinois State Police be expunged
18        and the name of the defendant obliterated from the
19        official index requested to be kept by the circuit
20        court clerk under Section 16 of the Clerks of Courts
21        Act in connection with the arrest and conviction for
22        the offense for which the individual had received a
23        pardon but the order shall not affect any index issued
24        by the circuit court clerk before the entry of the
25        order. Upon entry of the order of expungement, the
26        circuit court clerk shall promptly provide a copy of

 

 

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1        the order and a certificate of disposition to the
2        individual who was pardoned to the individual's last
3        known address or by electronic means (if available) or
4        otherwise make it available to the individual upon
5        request.
6            (D) Nothing in this Section is intended to
7        diminish or abrogate any rights or remedies otherwise
8        available to the individual.
9        (3) Any individual may file a motion to vacate and
10    expunge a conviction for a misdemeanor or Class 4 felony
11    violation of Section 4 or Section 5 of the Cannabis
12    Control Act. Motions to vacate and expunge under this
13    subsection (i) may be filed with the circuit court, Chief
14    Judge of a judicial circuit or any judge of the circuit
15    designated by the Chief Judge. The circuit court clerk
16    shall promptly serve a copy of the motion to vacate and
17    expunge, and any supporting documentation, on the State's
18    Attorney or prosecutor charged with the duty of
19    prosecuting the offense. When considering such a motion to
20    vacate and expunge, a court shall consider the following:
21    the reasons to retain the records provided by law
22    enforcement, the petitioner's age, the petitioner's age at
23    the time of offense, the time since the conviction, and
24    the specific adverse consequences if denied. An individual
25    may file such a petition after the completion of any
26    non-financial sentence or non-financial condition imposed

 

 

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1    by the conviction. Within 60 days of the filing of such
2    motion, a State's Attorney may file an objection to such a
3    petition along with supporting evidence. If a motion to
4    vacate and expunge is granted, the records shall be
5    expunged in accordance with subparagraphs (d)(8) and
6    (d)(9)(A) of this Section. An agency providing civil legal
7    aid, as defined by Section 15 of the Public Interest
8    Attorney Assistance Act, assisting individuals seeking to
9    file a motion to vacate and expunge under this subsection
10    may file motions to vacate and expunge with the Chief
11    Judge of a judicial circuit or any judge of the circuit
12    designated by the Chief Judge, and the motion may include
13    more than one individual. Motions filed by an agency
14    providing civil legal aid concerning more than one
15    individual may be prepared, presented, and signed
16    electronically.
17        (4) Any State's Attorney may file a motion to vacate
18    and expunge a conviction for a misdemeanor or Class 4
19    felony violation of Section 4 or Section 5 of the Cannabis
20    Control Act. Motions to vacate and expunge under this
21    subsection (i) may be filed with the circuit court, Chief
22    Judge of a judicial circuit or any judge of the circuit
23    designated by the Chief Judge, and may include more than
24    one individual. Motions filed by a State's Attorney
25    concerning more than one individual may be prepared,
26    presented, and signed electronically. When considering

 

 

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1    such a motion to vacate and expunge, a court shall
2    consider the following: the reasons to retain the records
3    provided by law enforcement, the individual's age, the
4    individual's age at the time of offense, the time since
5    the conviction, and the specific adverse consequences if
6    denied. Upon entry of an order granting a motion to vacate
7    and expunge records pursuant to this Section, the State's
8    Attorney shall notify the Prisoner Review Board within 30
9    days. Upon entry of the order of expungement, the circuit
10    court clerk shall promptly provide a copy of the order and
11    a certificate of disposition to the individual whose
12    records will be expunged to the individual's last known
13    address or by electronic means (if available) or otherwise
14    make available to the individual upon request. If a motion
15    to vacate and expunge is granted, the records shall be
16    expunged in accordance with subparagraphs (d)(8) and
17    (d)(9)(A) of this Section.
18        (5) In the public interest, the State's Attorney of a
19    county has standing to file motions to vacate and expunge
20    pursuant to this Section in the circuit court with
21    jurisdiction over the underlying conviction.
22        (6) If a person is arrested for a Minor Cannabis
23    Offense as defined in this Section before June 25, 2019
24    (the effective date of Public Act 101-27) and the person's
25    case is still pending but a sentence has not been imposed,
26    the person may petition the court in which the charges are

 

 

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1    pending for an order to summarily dismiss those charges
2    against him or her, and expunge all official records of
3    his or her arrest, plea, trial, conviction, incarceration,
4    supervision, or expungement. If the court determines, upon
5    review, that: (A) the person was arrested before June 25,
6    2019 (the effective date of Public Act 101-27) for an
7    offense that has been made eligible for expungement; (B)
8    the case is pending at the time; and (C) the person has not
9    been sentenced of the minor cannabis violation eligible
10    for expungement under this subsection, the court shall
11    consider the following: the reasons to retain the records
12    provided by law enforcement, the petitioner's age, the
13    petitioner's age at the time of offense, the time since
14    the conviction, and the specific adverse consequences if
15    denied. If a motion to dismiss and expunge is granted, the
16    records shall be expunged in accordance with subparagraph
17    (d)(9)(A) of this Section.
18        (7) A person imprisoned solely as a result of one or
19    more convictions for Minor Cannabis Offenses under this
20    subsection (i) shall be released from incarceration upon
21    the issuance of an order under this subsection.
22        (8) The Illinois State Police shall allow a person to
23    use the access and review process, established in the
24    Illinois State Police, for verifying that his or her
25    records relating to Minor Cannabis Offenses of the
26    Cannabis Control Act eligible under this Section have been

 

 

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1    expunged.
2        (9) No conviction vacated pursuant to this Section
3    shall serve as the basis for damages for time unjustly
4    served as provided in the Court of Claims Act.
5        (10) Effect of Expungement. A person's right to
6    expunge an expungeable offense shall not be limited under
7    this Section. The effect of an order of expungement shall
8    be to restore the person to the status he or she occupied
9    before the arrest, charge, or conviction.
10        (11) Information. The Illinois State Police shall post
11    general information on its website about the expungement
12    process described in this subsection (i).
13    (j) Felony Prostitution Convictions.
14        (1) Automatic Sealing of Felony Prostitution Arrests.
15            (A) The Illinois State Police and local law
16        enforcement agencies within the State shall
17        automatically seal the law enforcement records
18        relating to a person's Class 4 felony arrests and
19        charges not initiated by arrest for prostitution if
20        that arrest or charge not initiated by arrest is
21        eligible for sealing under paragraph (2) of subsection
22        (c).
23            (B) In the absence of a court order or upon the
24        order of a court, the clerk of the circuit court shall
25        automatically seal the court records and case files
26        relating to a person's Class 4 felony arrests and

 

 

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1        charges not initiated by arrest for prostitution if
2        that arrest or charge not initiated by arrest is
3        eligible for sealing under paragraph (2) of subsection
4        (c).
5            (C) The automatic sealing described in this
6        paragraph (1) shall be completed no later than January
7        1, 2028.
8        (2) Automatic Sealing of Felony Prostitution
9    Convictions.
10            (A) The Illinois State Police and local law
11        enforcement agencies within the State shall
12        automatically seal the law enforcement records
13        relating to a person's Class 4 felony conviction for
14        prostitution if those records are eligible for sealing
15        under paragraph (2) of subsection (c).
16            (B) In the absence of a court order or upon the
17        order of a court, the clerk of the circuit court shall
18        automatically seal the court records relating to a
19        person's Class 4 felony conviction for prostitution if
20        those records are eligible for sealing under paragraph
21        (2) of subsection (c).
22            (C) The automatic sealing of records described in
23        this paragraph (2) shall be completed no later than
24        January 1, 2028.
25        (3) Motions to Vacate and Expunge Felony Prostitution
26    Convictions. Any individual may file a motion to vacate

 

 

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1    and expunge a conviction for a prior Class 4 felony
2    violation of prostitution. Motions to vacate and expunge
3    under this subsection (j) may be filed with the circuit
4    court, Chief Judge of a judicial circuit, or any judge of
5    the circuit designated by the Chief Judge. When
6    considering the motion to vacate and expunge, a court
7    shall consider the following:
8            (A) the reasons to retain the records provided by
9        law enforcement;
10            (B) the petitioner's age;
11            (C) the petitioner's age at the time of offense;
12        and
13            (D) the time since the conviction, and the
14        specific adverse consequences if denied. An individual
15        may file the petition after the completion of any
16        sentence or condition imposed by the conviction.
17        Within 60 days of the filing of the motion, a State's
18        Attorney may file an objection to the petition along
19        with supporting evidence. If a motion to vacate and
20        expunge is granted, the records shall be expunged in
21        accordance with subparagraph (d)(9)(A) of this
22        Section. An agency providing civil legal aid, as
23        defined in Section 15 of the Public Interest Attorney
24        Assistance Act, assisting individuals seeking to file
25        a motion to vacate and expunge under this subsection
26        may file motions to vacate and expunge with the Chief

 

 

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1        Judge of a judicial circuit or any judge of the circuit
2        designated by the Chief Judge, and the motion may
3        include more than one individual.
4        (4) Any State's Attorney may file a motion to vacate
5    and expunge a conviction for a Class 4 felony violation of
6    prostitution. Motions to vacate and expunge under this
7    subsection (j) may be filed with the circuit court, Chief
8    Judge of a judicial circuit, or any judge of the circuit
9    court designated by the Chief Judge, and may include more
10    than one individual. When considering the motion to vacate
11    and expunge, a court shall consider the following reasons:
12            (A) the reasons to retain the records provided by
13        law enforcement;
14            (B) the petitioner's age;
15            (C) the petitioner's age at the time of offense;
16            (D) the time since the conviction; and
17            (E) the specific adverse consequences if denied.
18        If the State's Attorney files a motion to vacate and
19    expunge records for felony prostitution convictions
20    pursuant to this Section, the State's Attorney shall
21    notify the Prisoner Review Board within 30 days of the
22    filing. If a motion to vacate and expunge is granted, the
23    records shall be expunged in accordance with subparagraph
24    (d)(9)(A) of this Section.
25        (5) In the public interest, the State's Attorney of a
26    county has standing to file motions to vacate and expunge

 

 

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1    pursuant to this Section in the circuit court with
2    jurisdiction over the underlying conviction.
3        (6) The Illinois State Police shall allow a person to
4    a use the access and review process, established in the
5    Illinois State Police, for verifying that his or her
6    records relating to felony prostitution eligible under
7    this Section have been expunged.
8        (7) No conviction vacated pursuant to this Section
9    shall serve as the basis for damages for time unjustly
10    served as provided in the Court of Claims Act.
11        (8) Effect of Expungement. A person's right to expunge
12    an expungeable offense shall not be limited under this
13    Section. The effect of an order of expungement shall be to
14    restore the person to the status he or she occupied before
15    the arrest, charge, or conviction.
16        (9) Information. The Illinois State Police shall post
17    general information on its website about the expungement
18    or sealing process described in this subsection (j).
19    (k) Automatic Sealing.
20        (1) Applicability. Notwithstanding any other provision
21    of this Act, and cumulative with any rights to expungement
22    or sealing of criminal records, this subsection authorizes
23    the automatic sealing of criminal records of adults and of
24    minors prosecuted as adults. Any duties imposed upon the
25    Illinois State Police by this Act are subject to
26    appropriations being made for that purpose to the State

 

 

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1    Police Services Fund. Any duties imposed upon circuit
2    clerks by this Act are subject to appropriations being
3    made for that purpose to the Circuit Court Clerk Operation
4    and Administrative Fund.
5        (2) Beginning January 1, 2029, records created on or
6    after January 1, 1970 that meet the eligibility criteria
7    in paragraph (k)(3) and timing criteria in paragraph
8    (k)(4) or (k)(5) shall be automatically sealed without the
9    filing of a petition. The Illinois State Police shall
10    identify eligible records, automatically seal eligible
11    records, and provide an electronic notice to circuit
12    clerks, by means of the applicable e-filing system.
13        Commencing January 1, 2029, the Illinois State Police
14    shall, at least quarterly, seal all records identified as
15    subject to automatic sealing in paragraph (k)(3) and
16    meeting time requirements under paragraph (k)(5). At least
17    quarterly, the Illinois State Police shall electronically
18    notify each circuit court of all previously unidentified
19    records originating in that county for which a record is
20    subject to automatic sealing pursuant to this subsection.
21        Upon receipt of notice from the Illinois State Police,
22    circuit clerks shall seal records as that term is defined
23    in subsection (a)(1)(K)(ii). For records held
24    electronically, circuit clerks shall seal records within
25    90 days of notice from the Illinois State Police. For
26    records not held electronically, circuit clerks shall

 

 

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1    ensure that the individual's name is obliterated from the
2    official index required to be kept by the circuit court
3    clerk under Section 16 of the Clerks of Courts Act and
4    shall also ensure that the permanent record, as defined by
5    the Supreme Court, is sealed as defined in subsection
6    (a)(1)(K)(ii) before anyone not authorized by law is able
7    to access the physical records.
8        For all records created before January 1, 2029, the
9    following timelines shall apply:
10            (A) Records created prior to January 1, 2029 but
11        on or after July 1, 2005 shall be identified and sealed
12        by the Illinois State Police, with notice provided to
13        circuit clerks by means of the applicable e-filing
14        system, by January 1, 2030. Circuit clerks shall seal
15        records in accordance with the procedures established
16        in this Section by January 1, 2031.
17            (B) Records created prior to July 1, 2005 but on or
18        after July 1, 1990 shall be identified and sealed by
19        the Illinois State Police, with notice provided to
20        circuit clerks by means of the applicable e-filing
21        system, by January 1, 2031. Circuit clerks shall seal
22        records in accordance with the procedures established
23        in this Section by January 1, 2032.
24            (C) Records created prior to July 1, 1990 but on or
25        after July 1, 1970 shall be identified and sealed by
26        the Illinois State Police, with notice provided to

 

 

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1        circuit clerks by means of the applicable e-filing
2        system, by January 1, 2032. Circuit clerks shall seal
3        records in accordance with the procedures established
4        in this Section by January 1, 2034.
5        (3) Records listed in subsection (c)(2) are eligible
6    for automatic record sealing unless excluded by subsection
7    (a)(3) or in this paragraph (3):
8            (A) Records are not eligible for automatic sealing
9        while the subject of the record is serving a sentence,
10        order of supervision, or order of qualified probation
11        for a criminal offense in this State. Records are not
12        eligible for automatic sealing if the subject of the
13        record has pending filed charges. For the purposes of
14        determining if a charge is pending, if the Illinois
15        State Police is otherwise unable to determine
16        disposition status, misdemeanor charges shall not be
17        considered pending if one year has elapsed since the
18        filing of charges and felony charges shall not be
19        considered pending if 7 years have elapsed since the
20        filing of charges.
21            (B) Records of conviction for offenses included in
22        Article 9 or 11 of the Criminal Code of 1961 or the
23        Criminal Code of 2012, for felonies designated as
24        Class X, and for felonies that require public
25        registration under the Sex Offender Registration Act
26        are not eligible for automatic sealing.

 

 

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1        Notwithstanding this subparagraph, offenses included
2        in Section 11-14 of the Criminal Code of 1961 or the
3        Criminal Code of 2012 are eligible for automatic
4        sealing. A conviction of a crime of violence, as that
5        term is defined in Section 20 of the Drug Court
6        Treatment Act, is not eligible for automatic sealing.
7        A conviction of trafficking in persons, involuntary
8        servitude, or involuntary sexual servitude of a minor,
9        a conviction of organized retail crime, a conviction
10        of robbery, a conviction of vehicular hijacking, a
11        conviction of burglary that is a Class 1 or 2 felony,
12        or a conviction of residential burglary, as those
13        terms are used in Sections 10-9, 16-25.1, 18-1, 18-3,
14        19-1, and 19-3 of the Criminal Code of 2012, is not
15        eligible for automatic sealing. Convictions requiring
16        public registration under the Arsonist Registration
17        Act or the Murderer and Violent Offender Against Youth
18        Registration Act are not eligible for automatic
19        sealing until the petitioner is no longer required to
20        register under the relevant Act.
21            (C) Records with the same case number as a
22        conviction listed in subparagraph (B) are not eligible
23        for automatic sealing.
24            (D) Felony conviction records are not eligible for
25        automatic sealing until all felony conviction records
26        eligible for automatic sealing for the subject of the

 

 

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1        record have met the time requirements in paragraph
2        (5).
3        (4) Automatic Sealing of Nonconviction Records.
4    Arrests or charges not initiated by arrest resulting in
5    acquittal or dismissal, except as excluded by subsection
6    (a)(3)(B), that occur on or after January 1, 2029 shall be
7    sealed immediately after entry of the final disposition of
8    a case, except as provided in subsection (k)(3)(C). Upon
9    entry of a disposition for an eligible record under this
10    paragraph, the defendant shall be informed by the court
11    that the defendant's eligible records will be immediately
12    sealed and the procedure for the immediate sealing of
13    these records. The court shall enter an order sealing the
14    record after entry of the final disposition of a case.
15    After sealing records pursuant to this paragraph, the
16    circuit court clerk must provide notice of sealing to the
17    Illinois State Police and to the arresting agency in a
18    form and manner prescribed by the Supreme Court. The
19    circuit clerk shall provide this notice within 30 days of
20    sealing the record and may do so electronically. An order
21    to immediately seal records shall be implemented in
22    conformance with paragraph (8).
23        (5) When Records are Subject to Automatic Sealing.
24            (A) Records of arrest resulting in release without
25        charging and records of arrests or charges not
26        initiated by arrest resulting in acquittal, dismissal,

 

 

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1        or conviction when the conviction was reversed or
2        vacated are subject to automatic sealing immediately.
3            (B) Records of arrests or charges not initiated by
4        arrest resulting in orders of supervision, including
5        orders of supervision for municipal ordinance
6        violations, resulting in orders of qualified
7        probation, are subject to automatic sealing if 2 years
8        have elapsed since the termination of the order of
9        supervision or qualified probation.
10            (C) Arrests or charges not initiated by arrest
11        resulting in misdemeanor convictions are subject to
12        automatic sealing if two years have elapsed since the
13        termination of the sentence associated with the
14        record.
15            (D) Arrests or charges not initiated by arrest
16        resulting in convictions for felony offenses are
17        subject to automatic sealing if 3 years have elapsed
18        since the termination of the sentence associated with
19        the record.
20            (E) For the purposes of determining if the
21        timelines in this paragraph (5) have been met, the
22        Illinois State Police shall consider records in its
23        possession and, in the absence of disposition or
24        sentence termination records, shall deem sentences
25        terminated based on the sentence or supervision term
26        length information in its possession. In the absence

 

 

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1        of a known term length of probation or conditional
2        discharge, the Illinois State Police shall deem a term
3        completed if the maximum probation or conditional
4        discharge term length for the statutory class of the
5        offense has elapsed since the disposition date.
6        (6) Notice. At least monthly, the circuit court clerk
7    shall provide notice to each arresting agency of all
8    records sealed under this subsection. The circuit court
9    clerk may provide this notice electronically.
10        (7) Implementation.
11            (A) Upon notice of sealing provided by the circuit
12        court clerk, the arresting agency and any other agency
13        receiving notice of sealing shall seal the records
14        under the procedures in subsections (a)(1)(K) and
15        (d)(9)(C).
16            (B) In response to an inquiry for the sealed
17        records from anyone not authorized by law to access
18        the records, the court, the Illinois State Police, the
19        arresting agency, or the prosecuting agency receiving
20        the inquiry shall reply as it does in response to
21        inquiries when no records ever existed.
22            (C) Each circuit court that has sealed a record
23        shall make those records available to the subject of
24        the record, or an attorney representing the subject of
25        the record, without court order within 7 days.
26        (8) Upon request, the circuit court clerk shall

 

 

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1    provide disposition information for any record sealed
2    pursuant to this subsection to the Illinois State Police,
3    the arresting agency, the State's Attorney, or prosecutor
4    that prosecuted the offense. If the Illinois State Police,
5    arresting agency, State's Attorney, or prosecutor that
6    prosecuted the offense determine a record has been
7    improperly sealed pursuant to this subsection, the
8    Illinois State Police, arresting agency, State's Attorney,
9    or prosecutor that prosecuted the offense may file a
10    petition to unseal the record with the court that entered
11    the original record. If the court determines the record
12    was improperly sealed, the court shall enter an order
13    unsealing the record.
14        (9) Records sealed under this subsection shall be used
15    and disseminated by the Illinois State Police only as
16    required or authorized by a federal or State law, rule, or
17    regulation that requires inquiry into and release of
18    criminal records. The Department of Corrections shall have
19    access to all sealed records of the Illinois State Police
20    pertaining to individuals committed or confined within or
21    sentenced to a term of imprisonment within a correctional
22    institution or facility.
23        (10) The Illinois State Police shall allow a person to
24    use the access and review process, established by the
25    Illinois State Police, for verifying that the person's
26    records eligible under this subsection have been sealed.

 

 

10400SB3222ham002- 145 -LRB104 19119 BDA 38710 a

1    As part of the access and review process, upon request,
2    the Illinois State Police shall provide the subject of the
3    record written confirmation that the record was sealed
4    under this subsection.
5        (11) An individual may challenge the individual's
6    record and request corrections, including the sealing of
7    records eligible under this subsection, by completing and
8    submitting a record challenge form to the Illinois State
9    Police. The Illinois State Police shall automatically seal
10    all records identified as eligible under this subsection
11    based on the access and review process. The Illinois State
12    Police shall include any records identified as eligible
13    under this process in the next electronic notification of
14    the circuit court in which the case originated. The
15    Illinois State Police shall render a final administrative
16    decision with respect to the record challenge, which shall
17    be subject to administrative appeal procedures established
18    by the Illinois Criminal Justice Information Authority.
19        (12) Nothing in this Section shall be construed to
20    restrict or modify an individual's right to have that
21    individual's records expunged or sealed except as
22    otherwise may be provided in this Act or diminish or
23    abrogate any rights or remedies otherwise available to the
24    individual.
25        (13) The State or the county, or an official or
26    employee of the State or the county acting in the course of

 

 

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1    the official's or employee's duties, is not liable for an
2    injury or loss a person might receive due to an act or
3    omission of a person in the commission of the person's
4    duties under this Act, except for willful, wanton
5    misconduct or gross negligence on the part of the
6    governmental unit or on the part of the official or
7    employee.
8    (l) Municipal ordinance violations and Class C
9misdemeanors. Notwithstanding any other provision of this Act
10to the contrary and cumulative with any rights to expungement
11of criminal records, this subsection requires the sealing of
12criminal records of municipal ordinance violations and Class C
13misdemeanors without petition. Beginning January 1, 2028, and
14on January 1 and July 1 of each year thereafter, circuit court
15clerks shall seal any criminal records of arrests or charges
16not initiated by arrest resulting in charges or convictions
17for municipal ordinance violations or Class C misdemeanors if
18one year has elapsed since the case was closed as designated by
19the Supreme Court.
20(Source: P.A. 103-35, eff. 1-1-24; 103-154, eff. 6-30-23;
21103-609, eff. 7-1-24; 103-755, eff. 8-2-24; 103-1071, eff.
227-1-25; 104-417, eff. 8-15-25; 104-459, eff. 6-1-26; revised
231-20-26.)
 
24    Section 110. The State Finance Act is amended by changing
25Sections 5.890 and 5.916 and adding Section 5.1038 as follows:
 

 

 

10400SB3222ham002- 147 -LRB104 19119 BDA 38710 a

1    (30 ILCS 105/5.890)
2    Sec. 5.890. The Industrial Hemp Regulatory Fund. This
3Section is repealed on January 1, 2028.    
4(Source: P.A. 100-1091, eff. 8-26-18; 101-81, eff. 7-12-19.)
 
5    (30 ILCS 105/5.916)
6    Sec. 5.916. The Local Cannabis Retailers' Occupation    
7Consumer Excise Tax Trust Fund.
8(Source: P.A. 101-27, eff. 6-25-19; 102-558, eff. 8-20-21.)
 
9    (30 ILCS 105/5.1038 new)
10    Sec. 5.1038. The Illinois Hemp Regulatory Fund.
 
11    Section 115. The Illinois Procurement Code is amended by
12changing Section 1-10 as follows:
 
13    (30 ILCS 500/1-10)
14    (Text of Section before amendment by P.A. 104-458)
15    Sec. 1-10. Application.
16    (a) This Code applies only to procurements for which
17bidders, offerors, potential contractors, or contractors were
18first solicited on or after July 1, 1998. This Code shall not
19be construed to affect or impair any contract, or any
20provision of a contract, entered into based on a solicitation
21prior to the implementation date of this Code as described in

 

 

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1Article 99, including, but not limited to, any covenant
2entered into with respect to any revenue bonds or similar
3instruments. All procurements for which contracts are
4solicited between the effective date of Articles 50 and 99 and
5July 1, 1998 shall be substantially in accordance with this
6Code and its intent.
7    (b) This Code shall apply regardless of the source of the
8funds with which the contracts are paid, including federal
9assistance moneys. This Code shall not apply to:
10        (1) Contracts between the State and its political
11    subdivisions or other governments, or between State
12    governmental bodies, except as specifically provided in
13    this Code.
14        (2) Grants, except for the filing requirements of
15    Section 20-80.
16        (3) Purchase of care, except as provided in Section
17    5-30.6 of the Illinois Public Aid Code and this Section.
18        (4) Hiring of an individual as an employee and not as
19    an independent contractor, whether pursuant to an
20    employment code or policy or by contract directly with
21    that individual.
22        (5) Collective bargaining contracts.
23        (6) Purchase of real estate, except that notice of
24    this type of contract with a value of more than $25,000
25    must be published in the Procurement Bulletin within 10
26    calendar days after the deed is recorded in the county of

 

 

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1    jurisdiction. The notice shall identify the real estate
2    purchased, the names of all parties to the contract, the
3    value of the contract, and the effective date of the
4    contract.
5        (7) Contracts necessary to prepare for anticipated
6    litigation, enforcement actions, or investigations,
7    provided that the chief legal counsel to the Governor
8    shall give his or her prior approval when the procuring
9    agency is one subject to the jurisdiction of the Governor,
10    and provided that the chief legal counsel of any other
11    procuring entity subject to this Code shall give his or
12    her prior approval when the procuring entity is not one
13    subject to the jurisdiction of the Governor.
14        (8) (Blank).
15        (9) Procurement expenditures by the Illinois
16    Conservation Foundation when only private funds are used.
17        (10) (Blank).
18        (11) Public-private agreements entered into according
19    to the procurement requirements of Section 20 of the
20    Public-Private Partnerships for Transportation Act and
21    design-build agreements entered into according to the
22    procurement requirements of Section 25 of the
23    Public-Private Partnerships for Transportation Act.
24        (12) (A) Contracts for legal, financial, and other
25    professional and artistic services entered into by the
26    Illinois Finance Authority in which the State of Illinois

 

 

10400SB3222ham002- 150 -LRB104 19119 BDA 38710 a

1    is not obligated. Such contracts shall be awarded through
2    a competitive process authorized by the members of the
3    Illinois Finance Authority and are subject to Sections
4    5-30, 20-160, 50-13, 50-20, 50-35, and 50-37 of this Code,
5    as well as the final approval by the members of the
6    Illinois Finance Authority of the terms of the contract.
7        (B) Contracts for legal and financial services entered
8    into by the Illinois Housing Development Authority in
9    connection with the issuance of bonds in which the State
10    of Illinois is not obligated. Such contracts shall be
11    awarded through a competitive process authorized by the
12    members of the Illinois Housing Development Authority and
13    are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35,
14    and 50-37 of this Code, as well as the final approval by
15    the members of the Illinois Housing Development Authority
16    of the terms of the contract.
17        (13) Contracts for services, commodities, and
18    equipment to support the delivery of timely forensic
19    science services in consultation with and subject to the
20    approval of the Chief Procurement Officer as provided in
21    subsection (d) of Section 5-4-3a of the Unified Code of
22    Corrections, except for the requirements of Sections
23    20-60, 20-65, 20-70, and 20-160 and Article 50 of this
24    Code; however, the Chief Procurement Officer may, in
25    writing with justification, waive any certification
26    required under Article 50 of this Code. For any contracts

 

 

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1    for services which are currently provided by members of a
2    collective bargaining agreement, the applicable terms of
3    the collective bargaining agreement concerning
4    subcontracting shall be followed.
5        On and after January 1, 2019, this paragraph (13),
6    except for this sentence, is inoperative.
7        (14) Contracts for participation expenditures required
8    by a domestic or international trade show or exhibition of
9    an exhibitor, member, or sponsor.
10        (15) Contracts with a railroad or utility that
11    requires the State to reimburse the railroad or utilities
12    for the relocation of utilities for construction or other
13    public purpose. Contracts included within this paragraph
14    (15) shall include, but not be limited to, those
15    associated with: relocations, crossings, installations,
16    and maintenance. For the purposes of this paragraph (15),
17    "railroad" means any form of non-highway ground
18    transportation that runs on rails or electromagnetic
19    guideways and "utility" means: (1) public utilities as
20    defined in Section 3-105 of the Public Utilities Act, (2)
21    telecommunications carriers as defined in Section 13-202
22    of the Public Utilities Act, (3) electric cooperatives as
23    defined in Section 3.4 of the Electric Supplier Act, (4)
24    telephone or telecommunications cooperatives as defined in
25    Section 13-212 of the Public Utilities Act, (5) rural
26    water or wastewater waste water systems with 10,000

 

 

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1    connections or less, (6) a holder as defined in Section
2    21-201 of the Public Utilities Act, and (7) municipalities
3    owning or operating utility systems consisting of public
4    utilities as that term is defined in Section 11-117-2 of
5    the Illinois Municipal Code.
6        (16) Procurement expenditures necessary for the
7    Department of Public Health to provide the delivery of
8    timely newborn screening services in accordance with the
9    Newborn Metabolic Screening Act.
10        (17) Procurement expenditures necessary for the
11    Department of Agriculture, the Department of Financial and
12    Professional Regulation, the Department of Human Services,
13    and the Department of Public Health to implement the
14    Compassionate Use of Medical Cannabis Program and Opioid
15    Alternative Pilot Program requirements and ensure access
16    to medical cannabis for patients with debilitating medical
17    conditions in accordance with the Compassionate Use of
18    Medical Cannabis Program Act.
19        (18) This Code does not apply to any procurements
20    necessary for the Department of Agriculture or , the
21    Department of Financial and Professional Regulation, the
22    Department of Human Services, the Department of Commerce
23    and Economic Opportunity, and the Department of Public
24    Health to implement the Cannabis Regulation and Tax Act
25    and for the Department of Agriculture to implement the
26    Illinois Hemp Act if the applicable agency has made a good

 

 

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1    faith determination that it is necessary and appropriate
2    for the expenditure to fall within this exemption and if
3    the process is conducted in a manner substantially in
4    accordance with the requirements of Sections 20-160,
5    25-60, 30-22, 50-5, 50-10, 50-10.5, 50-12, 50-13, 50-15,
6    50-20, 50-21, 50-35, 50-36, 50-37, 50-38, and 50-50 of
7    this Code; however, for Section 50-35, compliance applies
8    only to contracts or subcontracts over $100,000. Notice of
9    each contract entered into under this paragraph (18) that
10    is related to the procurement of goods and services
11    identified in paragraph (1) through (9) of this subsection
12    shall be published in the Procurement Bulletin within 14
13    calendar days after contract execution. The Chief
14    Procurement Officer shall prescribe the form and content
15    of the notice. Each agency shall provide the Chief
16    Procurement Officer, on a monthly basis, in the form and
17    content prescribed by the Chief Procurement Officer, a
18    report of contracts that are related to the procurement of
19    goods and services identified in this subsection. At a
20    minimum, this report shall include the name of the
21    contractor, a description of the supply or service
22    provided, the total amount of the contract, the term of
23    the contract, and the exception to this Code utilized. A
24    copy of any or all of these contracts shall be made
25    available to the Chief Procurement Officer immediately
26    upon request. The Chief Procurement Officer shall submit a

 

 

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1    report to the Governor and General Assembly no later than
2    November 1 of each year that includes, at a minimum, an
3    annual summary of the monthly information reported to the
4    Chief Procurement Officer. This exemption becomes
5    inoperative 10 5 years after June 25, 2019 (the effective
6    date of Public Act 101-27).
7        (19) Acquisition of modifications or adjustments,
8    limited to assistive technology devices and assistive
9    technology services, adaptive equipment, repairs, and
10    replacement parts to provide reasonable accommodations (i)
11    that enable a qualified applicant with a disability to
12    complete the job application process and be considered for
13    the position such qualified applicant desires, (ii) that
14    modify or adjust the work environment to enable a
15    qualified current employee with a disability to perform
16    the essential functions of the position held by that
17    employee, (iii) to enable a qualified current employee
18    with a disability to enjoy equal benefits and privileges
19    of employment as are enjoyed by other similarly situated
20    employees without disabilities, and (iv) that allow a
21    customer, client, claimant, or member of the public
22    seeking State services full use and enjoyment of and
23    access to its programs, services, or benefits.
24        For purposes of this paragraph (19):
25        "Assistive technology devices" means any item, piece
26    of equipment, or product system, whether acquired

 

 

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1    commercially off the shelf, modified, or customized, that
2    is used to increase, maintain, or improve functional
3    capabilities of individuals with disabilities.
4        "Assistive technology services" means any service that
5    directly assists an individual with a disability in
6    selection, acquisition, or use of an assistive technology
7    device.
8        "Qualified" has the same meaning and use as provided
9    under the federal Americans with Disabilities Act when
10    describing an individual with a disability.
11        (20) Procurement expenditures necessary for the
12    Illinois Commerce Commission to hire third-party
13    facilitators pursuant to Sections 16-105.17 and 16-108.18
14    of the Public Utilities Act or an ombudsman pursuant to
15    Section 16-107.5 of the Public Utilities Act, a
16    facilitator pursuant to Section 16-105.17 of the Public
17    Utilities Act, or a grid auditor pursuant to Section
18    16-105.10 of the Public Utilities Act.
19        (21) Procurement expenditures for the purchase,
20    renewal, and expansion of software, software licenses, or
21    software maintenance agreements that support the efforts
22    of the Illinois State Police to enforce, regulate, and
23    administer the Firearm Owners Identification Card Act, the
24    Firearm Concealed Carry Act, the Firearms Restraining
25    Order Act, the Firearm Dealer License Certification Act,
26    the Law Enforcement Agencies Data System (LEADS), the

 

 

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1    Uniform Crime Reporting Act, the Criminal Identification
2    Act, the Illinois Uniform Conviction Information Act, and
3    the Gun Trafficking Information Act, or establish or
4    maintain record management systems necessary to conduct
5    human trafficking investigations or gun trafficking or
6    other stolen firearm investigations. This paragraph (21)
7    applies to contracts entered into on or after January 10,
8    2023 (the effective date of Public Act 102-1116) and the
9    renewal of contracts that are in effect on January 10,
10    2023 (the effective date of Public Act 102-1116).
11        (22) Contracts for project management services and
12    system integration services required for the completion of
13    the State's enterprise resource planning project. This
14    exemption becomes inoperative 5 years after June 7, 2023
15    (the effective date of the changes made to this Section by
16    Public Act 103-8). This paragraph (22) applies to
17    contracts entered into on or after June 7, 2023 (the
18    effective date of the changes made to this Section by
19    Public Act 103-8) and the renewal of contracts that are in
20    effect on June 7, 2023 (the effective date of the changes
21    made to this Section by Public Act 103-8).
22        (23) Procurements necessary for the Department of
23    Insurance to implement the Illinois Health Benefits
24    Exchange Law if the Department of Insurance has made a
25    good faith determination that it is necessary and
26    appropriate for the expenditure to fall within this

 

 

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1    exemption. The procurement process shall be conducted in a
2    manner substantially in accordance with the requirements
3    of Sections 20-160 and 25-60 and Article 50 of this Code. A
4    copy of these contracts shall be made available to the
5    Chief Procurement Officer immediately upon request. This
6    paragraph is inoperative 5 years after June 27, 2023 (the
7    effective date of Public Act 103-103).
8        (24) Contracts for public education programming,
9    noncommercial sustaining announcements, public service
10    announcements, and public awareness and education
11    messaging with the nonprofit trade associations of the
12    providers of those services that inform the public on
13    immediate and ongoing health and safety risks and hazards.
14        (25) Procurements necessary for the Department of
15    Early Childhood to implement the Department of Early
16    Childhood Act if the Department has made a good faith
17    determination that it is necessary and appropriate for the
18    expenditure to fall within this exemption. This exemption
19    shall only be used for products and services procured
20    solely for use by the Department of Early Childhood. The
21    procurements may include those necessary to design and
22    build integrated, operational systems of programs and
23    services. The procurements may include, but are not
24    limited to, those necessary to align and update program
25    standards, integrate funding systems, design and establish
26    data and reporting systems, align and update models for

 

 

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1    technical assistance and professional development, design
2    systems to manage grants and ensure compliance, design and
3    implement management and operational structures, and
4    establish new means of engaging with families, educators,
5    providers, and stakeholders. The procurement processes
6    shall be conducted in a manner substantially in accordance
7    with the requirements of Article 50 (ethics) and Sections
8    5-5 (Procurement Policy Board), 5-7 (Commission on Equity
9    and Inclusion), 20-80 (contract files), 20-120
10    (subcontractors), 20-155 (paperwork), 20-160
11    (ethics/campaign contribution prohibitions), 25-60
12    (prevailing wage), and 25-90 (prohibited and authorized
13    cybersecurity) of this Code. Beginning January 1, 2025,
14    the Department of Early Childhood shall provide a
15    quarterly report to the General Assembly detailing a list
16    of expenditures and contracts for which the Department
17    uses this exemption. This paragraph is inoperative on and
18    after July 1, 2027.
19        (26) Procurements that are necessary for increasing
20    the recruitment and retention of State employees,
21    particularly minority candidates for employment,
22    including:
23            (A) procurements related to registration fees for
24        job fairs and other outreach and recruitment events;
25            (B) production of recruitment materials; and
26            (C) other services related to recruitment and

 

 

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1        retention of State employees.
2        The exemption under this paragraph (26) applies only
3    if the State agency has made a good faith determination
4    that it is necessary and appropriate for the expenditure
5    to fall within this paragraph (26). The procurement
6    process under this paragraph (26) shall be conducted in a
7    manner substantially in accordance with the requirements
8    of Sections 20-160 and 25-60 and Article 50 of this Code. A
9    copy of these contracts shall be made available to the
10    Chief Procurement Officer immediately upon request.
11    Nothing in this paragraph (26) authorizes the replacement
12    or diminishment of State responsibilities in hiring or the
13    positions that effectuate that hiring. This paragraph (26)
14    is inoperative on and after June 30, 2029.
15        (27) Procurements necessary for the Department of
16    Healthcare and Family Services to implement changes to the
17    State's Integrated Eligibility System to ensure the
18    system's compliance with federal implementation mandates
19    and deadlines, if the Department of Healthcare and Family
20    Services has made a good faith determination that it is
21    necessary and appropriate for the procurement to fall
22    within this exemption.
23    Notwithstanding any other provision of law, for contracts
24with an annual value of more than $100,000 entered into on or
25after October 1, 2017 under an exemption provided in any
26paragraph of this subsection (b), except paragraph (1), (2),

 

 

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1or (5), each State agency shall post to the appropriate
2procurement bulletin the name of the contractor, a description
3of the supply or service provided, the total amount of the
4contract, the term of the contract, and the exception to the
5Code utilized. The chief procurement officer shall submit a
6report to the Governor and General Assembly no later than
7November 1 of each year that shall include, at a minimum, an
8annual summary of the monthly information reported to the
9chief procurement officer.
10    (c) This Code does not apply to the electric power
11procurement process provided for under Section 1-75 of the
12Illinois Power Agency Act and Section 16-111.5 of the Public
13Utilities Act. This Code does not apply to the procurement of
14technical and policy experts pursuant to Section 1-129 of the
15Illinois Power Agency Act.
16    (d) Except for Section 20-160 and Article 50 of this Code,
17and as expressly required by Section 9.1 of the Illinois
18Lottery Law, the provisions of this Code do not apply to the
19procurement process provided for under Section 9.1 of the
20Illinois Lottery Law.
21    (e) This Code does not apply to the process used by the
22Capital Development Board to retain a person or entity to
23assist the Capital Development Board with its duties related
24to the determination of costs of a clean coal SNG brownfield
25facility, as defined by Section 1-10 of the Illinois Power
26Agency Act, as required in subsection (h-3) of Section 9-220

 

 

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1of the Public Utilities Act, including calculating the range
2of capital costs, the range of operating and maintenance
3costs, or the sequestration costs or monitoring the
4construction of clean coal SNG brownfield facility for the
5full duration of construction.
6    (f) (Blank).
7    (g) (Blank).
8    (h) This Code does not apply to the process to procure or
9contracts entered into in accordance with Sections 11-5.2 and
1011-5.3 of the Illinois Public Aid Code.
11    (i) Each chief procurement officer may access records
12necessary to review whether a contract, purchase, or other
13expenditure is or is not subject to the provisions of this
14Code, unless such records would be subject to attorney-client
15privilege.
16    (j) This Code does not apply to the process used by the
17Capital Development Board to retain an artist or work or works
18of art as required in Section 14 of the Capital Development
19Board Act.
20    (k) This Code does not apply to the process to procure
21contracts, or contracts entered into, by the State Board of
22Elections or the State Electoral Board for hearing officers
23appointed pursuant to the Election Code.
24    (l) This Code does not apply to the processes used by the
25Illinois Student Assistance Commission to procure supplies and
26services paid for from the private funds of the Illinois

 

 

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1Prepaid Tuition Fund. As used in this subsection (l), "private
2funds" means funds derived from deposits paid into the
3Illinois Prepaid Tuition Trust Fund and the earnings thereon.
4    (m) This Code shall apply regardless of the source of
5funds with which contracts are paid, including federal
6assistance moneys. Except as specifically provided in this
7Code, this Code shall not apply to procurement expenditures
8necessary for the Department of Public Health to conduct the
9Healthy Illinois Survey in accordance with Section 2310-431 of
10the Department of Public Health Powers and Duties Law of the
11Civil Administrative Code of Illinois.
12(Source: P.A. 103-8, eff. 6-7-23; 103-103, eff. 6-27-23;
13103-570, eff. 1-1-24; 103-580, eff. 12-8-23; 103-594, eff.
146-25-24; 103-605, eff. 7-1-24; 103-865, eff. 1-1-25; 104-2,
15eff. 6-16-25; 104-417, eff. 8-15-25)
 
16    (Text of Section after amendment by P.A. 104-458)
17    Sec. 1-10. Application.
18    (a) This Code applies only to procurements for which
19bidders, offerors, potential contractors, or contractors were
20first solicited on or after July 1, 1998. This Code shall not
21be construed to affect or impair any contract, or any
22provision of a contract, entered into based on a solicitation
23prior to the implementation date of this Code as described in
24Article 99, including, but not limited to, any covenant
25entered into with respect to any revenue bonds or similar

 

 

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1instruments. All procurements for which contracts are
2solicited between the effective date of Articles 50 and 99 and
3July 1, 1998 shall be substantially in accordance with this
4Code and its intent.
5    (b) This Code shall apply regardless of the source of the
6funds with which the contracts are paid, including federal
7assistance moneys. This Code shall not apply to:
8        (1) Contracts between the State and its political
9    subdivisions or other governments, or between State
10    governmental bodies, except as specifically provided in
11    this Code.
12        (2) Grants, except for the filing requirements of
13    Section 20-80.
14        (3) Purchase of care, except as provided in Section
15    5-30.6 of the Illinois Public Aid Code and this Section.
16        (4) Hiring of an individual as an employee and not as
17    an independent contractor, whether pursuant to an
18    employment code or policy or by contract directly with
19    that individual.
20        (5) Collective bargaining contracts.
21        (6) Purchase of real estate, except that notice of
22    this type of contract with a value of more than $25,000
23    must be published in the Procurement Bulletin within 10
24    calendar days after the deed is recorded in the county of
25    jurisdiction. The notice shall identify the real estate
26    purchased, the names of all parties to the contract, the

 

 

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1    value of the contract, and the effective date of the
2    contract.
3        (7) Contracts necessary to prepare for anticipated
4    litigation, enforcement actions, or investigations,
5    provided that the chief legal counsel to the Governor
6    shall give his or her prior approval when the procuring
7    agency is one subject to the jurisdiction of the Governor,
8    and provided that the chief legal counsel of any other
9    procuring entity subject to this Code shall give his or
10    her prior approval when the procuring entity is not one
11    subject to the jurisdiction of the Governor.
12        (8) (Blank).
13        (9) Procurement expenditures by the Illinois
14    Conservation Foundation when only private funds are used.
15        (10) (Blank).
16        (11) Public-private agreements entered into according
17    to the procurement requirements of Section 20 of the
18    Public-Private Partnerships for Transportation Act and
19    design-build agreements entered into according to the
20    procurement requirements of Section 25 of the
21    Public-Private Partnerships for Transportation Act.
22        (12) (A) Contracts for legal, financial, and other
23    professional and artistic services entered into by the
24    Illinois Finance Authority in which the State of Illinois
25    is not obligated. Such contracts shall be awarded through
26    a competitive process authorized by the members of the

 

 

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1    Illinois Finance Authority and are subject to Sections
2    5-30, 20-160, 50-13, 50-20, 50-35, and 50-37 of this Code,
3    as well as the final approval by the members of the
4    Illinois Finance Authority of the terms of the contract.
5        (B) Contracts for legal and financial services entered
6    into by the Illinois Housing Development Authority in
7    connection with the issuance of bonds in which the State
8    of Illinois is not obligated. Such contracts shall be
9    awarded through a competitive process authorized by the
10    members of the Illinois Housing Development Authority and
11    are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35,
12    and 50-37 of this Code, as well as the final approval by
13    the members of the Illinois Housing Development Authority
14    of the terms of the contract.
15        (13) Contracts for services, commodities, and
16    equipment to support the delivery of timely forensic
17    science services in consultation with and subject to the
18    approval of the Chief Procurement Officer as provided in
19    subsection (d) of Section 5-4-3a of the Unified Code of
20    Corrections, except for the requirements of Sections
21    20-60, 20-65, 20-70, and 20-160 and Article 50 of this
22    Code; however, the Chief Procurement Officer may, in
23    writing with justification, waive any certification
24    required under Article 50 of this Code. For any contracts
25    for services which are currently provided by members of a
26    collective bargaining agreement, the applicable terms of

 

 

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1    the collective bargaining agreement concerning
2    subcontracting shall be followed.
3        On and after January 1, 2019, this paragraph (13),
4    except for this sentence, is inoperative.
5        (14) Contracts for participation expenditures required
6    by a domestic or international trade show or exhibition of
7    an exhibitor, member, or sponsor.
8        (15) Contracts with a railroad or utility that
9    requires the State to reimburse the railroad or utilities
10    for the relocation of utilities for construction or other
11    public purpose. Contracts included within this paragraph
12    (15) shall include, but not be limited to, those
13    associated with: relocations, crossings, installations,
14    and maintenance. For the purposes of this paragraph (15),
15    "railroad" means any form of non-highway ground
16    transportation that runs on rails or electromagnetic
17    guideways and "utility" means: (1) public utilities as
18    defined in Section 3-105 of the Public Utilities Act, (2)
19    telecommunications carriers as defined in Section 13-202
20    of the Public Utilities Act, (3) electric cooperatives as
21    defined in Section 3.4 of the Electric Supplier Act, (4)
22    telephone or telecommunications cooperatives as defined in
23    Section 13-212 of the Public Utilities Act, (5) rural
24    water or wastewater waste water systems with 10,000
25    connections or less, (6) a holder as defined in Section
26    21-201 of the Public Utilities Act, and (7) municipalities

 

 

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1    owning or operating utility systems consisting of public
2    utilities as that term is defined in Section 11-117-2 of
3    the Illinois Municipal Code.
4        (16) Procurement expenditures necessary for the
5    Department of Public Health to provide the delivery of
6    timely newborn screening services in accordance with the
7    Newborn Metabolic Screening Act.
8        (17) Procurement expenditures necessary for the
9    Department of Agriculture, the Department of Financial and
10    Professional Regulation, the Department of Human Services,
11    and the Department of Public Health to implement the
12    Compassionate Use of Medical Cannabis Program and Opioid
13    Alternative Pilot Program requirements and ensure access
14    to medical cannabis for patients with debilitating medical
15    conditions in accordance with the Compassionate Use of
16    Medical Cannabis Program Act.
17        (18) This Code does not apply to any procurements
18    necessary for the Department of Agriculture or , the
19    Department of Financial and Professional Regulation, the
20    Department of Human Services, the Department of Commerce
21    and Economic Opportunity, and the Department of Public
22    Health to implement the Cannabis Regulation and Tax Act
23    and for the Department of Agriculture to implement the
24    Illinois Hemp Act if the applicable agency has made a good
25    faith determination that it is necessary and appropriate
26    for the expenditure to fall within this exemption and if

 

 

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1    the process is conducted in a manner substantially in
2    accordance with the requirements of Sections 20-160,
3    25-60, 30-22, 50-5, 50-10, 50-10.5, 50-12, 50-13, 50-15,
4    50-20, 50-21, 50-35, 50-36, 50-37, 50-38, and 50-50 of
5    this Code; however, for Section 50-35, compliance applies
6    only to contracts or subcontracts over $100,000. Notice of
7    each contract entered into under this paragraph (18) that
8    is related to the procurement of goods and services
9    identified in paragraph (1) through (9) of this subsection
10    shall be published in the Procurement Bulletin within 14
11    calendar days after contract execution. The Chief
12    Procurement Officer shall prescribe the form and content
13    of the notice. Each agency shall provide the Chief
14    Procurement Officer, on a monthly basis, in the form and
15    content prescribed by the Chief Procurement Officer, a
16    report of contracts that are related to the procurement of
17    goods and services identified in this subsection. At a
18    minimum, this report shall include the name of the
19    contractor, a description of the supply or service
20    provided, the total amount of the contract, the term of
21    the contract, and the exception to this Code utilized. A
22    copy of any or all of these contracts shall be made
23    available to the Chief Procurement Officer immediately
24    upon request. The Chief Procurement Officer shall submit a
25    report to the Governor and General Assembly no later than
26    November 1 of each year that includes, at a minimum, an

 

 

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1    annual summary of the monthly information reported to the
2    Chief Procurement Officer. This exemption becomes
3    inoperative 10 5 years after June 25, 2019 (the effective
4    date of Public Act 101-27).
5        (19) Acquisition of modifications or adjustments,
6    limited to assistive technology devices and assistive
7    technology services, adaptive equipment, repairs, and
8    replacement parts to provide reasonable accommodations (i)
9    that enable a qualified applicant with a disability to
10    complete the job application process and be considered for
11    the position such qualified applicant desires, (ii) that
12    modify or adjust the work environment to enable a
13    qualified current employee with a disability to perform
14    the essential functions of the position held by that
15    employee, (iii) to enable a qualified current employee
16    with a disability to enjoy equal benefits and privileges
17    of employment as are enjoyed by other similarly situated
18    employees without disabilities, and (iv) that allow a
19    customer, client, claimant, or member of the public
20    seeking State services full use and enjoyment of and
21    access to its programs, services, or benefits.
22        For purposes of this paragraph (19):
23        "Assistive technology devices" means any item, piece
24    of equipment, or product system, whether acquired
25    commercially off the shelf, modified, or customized, that
26    is used to increase, maintain, or improve functional

 

 

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1    capabilities of individuals with disabilities.
2        "Assistive technology services" means any service that
3    directly assists an individual with a disability in
4    selection, acquisition, or use of an assistive technology
5    device.
6        "Qualified" has the same meaning and use as provided
7    under the federal Americans with Disabilities Act when
8    describing an individual with a disability.
9        (20) Procurement expenditures necessary for the
10    Illinois Commerce Commission to hire third-party
11    facilitators pursuant to Sections 16-105.17 and 16-108.18
12    of the Public Utilities Act or an ombudsman pursuant to
13    Section 16-107.5 of the Public Utilities Act, a
14    facilitator pursuant to Section 16-105.17 of the Public
15    Utilities Act, a grid auditor pursuant to Section
16    16-105.10 of the Public Utilities Act, a facilitator,
17    expert, or consultant pursuant to Sections 16-126.2 and
18    16-202 of the Public Utilities Act, a procurement monitor
19    pursuant to Section 16-111.5 of the Public Utilities Act,
20    an ombudsperson pursuant to Section 20-145 of the Public
21    Utilities Act, or consultants and experts pursuant to
22    Section 5-15 of the Utility Data Access Act.
23        (21) Procurement expenditures for the purchase,
24    renewal, and expansion of software, software licenses, or
25    software maintenance agreements that support the efforts
26    of the Illinois State Police to enforce, regulate, and

 

 

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1    administer the Firearm Owners Identification Card Act, the
2    Firearm Concealed Carry Act, the Firearms Restraining
3    Order Act, the Firearm Dealer License Certification Act,
4    the Law Enforcement Agencies Data System (LEADS), the
5    Uniform Crime Reporting Act, the Criminal Identification
6    Act, the Illinois Uniform Conviction Information Act, and
7    the Gun Trafficking Information Act, or establish or
8    maintain record management systems necessary to conduct
9    human trafficking investigations or gun trafficking or
10    other stolen firearm investigations. This paragraph (21)
11    applies to contracts entered into on or after January 10,
12    2023 (the effective date of Public Act 102-1116) and the
13    renewal of contracts that are in effect on January 10,
14    2023 (the effective date of Public Act 102-1116).
15        (22) Contracts for project management services and
16    system integration services required for the completion of
17    the State's enterprise resource planning project. This
18    exemption becomes inoperative 5 years after June 7, 2023
19    (the effective date of the changes made to this Section by
20    Public Act 103-8). This paragraph (22) applies to
21    contracts entered into on or after June 7, 2023 (the
22    effective date of the changes made to this Section by
23    Public Act 103-8) and the renewal of contracts that are in
24    effect on June 7, 2023 (the effective date of the changes
25    made to this Section by Public Act 103-8).
26        (23) Procurements necessary for the Department of

 

 

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1    Insurance to implement the Illinois Health Benefits
2    Exchange Law if the Department of Insurance has made a
3    good faith determination that it is necessary and
4    appropriate for the expenditure to fall within this
5    exemption. The procurement process shall be conducted in a
6    manner substantially in accordance with the requirements
7    of Sections 20-160 and 25-60 and Article 50 of this Code. A
8    copy of these contracts shall be made available to the
9    Chief Procurement Officer immediately upon request. This
10    paragraph is inoperative 5 years after June 27, 2023 (the
11    effective date of Public Act 103-103).
12        (24) Contracts for public education programming,
13    noncommercial sustaining announcements, public service
14    announcements, and public awareness and education
15    messaging with the nonprofit trade associations of the
16    providers of those services that inform the public on
17    immediate and ongoing health and safety risks and hazards.
18        (25) Procurements necessary for the Department of
19    Early Childhood to implement the Department of Early
20    Childhood Act if the Department has made a good faith
21    determination that it is necessary and appropriate for the
22    expenditure to fall within this exemption. This exemption
23    shall only be used for products and services procured
24    solely for use by the Department of Early Childhood. The
25    procurements may include those necessary to design and
26    build integrated, operational systems of programs and

 

 

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1    services. The procurements may include, but are not
2    limited to, those necessary to align and update program
3    standards, integrate funding systems, design and establish
4    data and reporting systems, align and update models for
5    technical assistance and professional development, design
6    systems to manage grants and ensure compliance, design and
7    implement management and operational structures, and
8    establish new means of engaging with families, educators,
9    providers, and stakeholders. The procurement processes
10    shall be conducted in a manner substantially in accordance
11    with the requirements of Article 50 (ethics) and Sections
12    5-5 (Procurement Policy Board), 5-7 (Commission on Equity
13    and Inclusion), 20-80 (contract files), 20-120
14    (subcontractors), 20-155 (paperwork), 20-160
15    (ethics/campaign contribution prohibitions), 25-60
16    (prevailing wage), and 25-90 (prohibited and authorized
17    cybersecurity) of this Code. Beginning January 1, 2025,
18    the Department of Early Childhood shall provide a
19    quarterly report to the General Assembly detailing a list
20    of expenditures and contracts for which the Department
21    uses this exemption. This paragraph is inoperative on and
22    after July 1, 2027.
23        (26) Procurements that are necessary for increasing
24    the recruitment and retention of State employees,
25    particularly minority candidates for employment,
26    including:

 

 

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1            (A) procurements related to registration fees for
2        job fairs and other outreach and recruitment events;
3            (B) production of recruitment materials; and
4            (C) other services related to recruitment and
5        retention of State employees.
6        The exemption under this paragraph (26) applies only
7    if the State agency has made a good faith determination
8    that it is necessary and appropriate for the expenditure
9    to fall within this paragraph (26). The procurement
10    process under this paragraph (26) shall be conducted in a
11    manner substantially in accordance with the requirements
12    of Sections 20-160 and 25-60 and Article 50 of this Code. A
13    copy of these contracts shall be made available to the
14    Chief Procurement Officer immediately upon request.
15    Nothing in this paragraph (26) authorizes the replacement
16    or diminishment of State responsibilities in hiring or the
17    positions that effectuate that hiring. This paragraph (26)
18    is inoperative on and after June 30, 2029.
19        (27) Procurements necessary for the Department of
20    Healthcare and Family Services to implement changes to the
21    State's Integrated Eligibility System to ensure the
22    system's compliance with federal implementation mandates
23    and deadlines, if the Department of Healthcare and Family
24    Services has made a good faith determination that it is
25    necessary and appropriate for the procurement to fall
26    within this exemption.

 

 

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1    Notwithstanding any other provision of law, for contracts
2with an annual value of more than $100,000 entered into on or
3after October 1, 2017 under an exemption provided in any
4paragraph of this subsection (b), except paragraph (1), (2),
5or (5), each State agency shall post to the appropriate
6procurement bulletin the name of the contractor, a description
7of the supply or service provided, the total amount of the
8contract, the term of the contract, and the exception to the
9Code utilized. The chief procurement officer shall submit a
10report to the Governor and General Assembly no later than
11November 1 of each year that shall include, at a minimum, an
12annual summary of the monthly information reported to the
13chief procurement officer.
14    (c) This Code does not apply to the electric power
15procurement process provided for under Section 1-75 of the
16Illinois Power Agency Act and Section 16-111.5 of the Public
17Utilities Act. This Code does not apply to the procurement of
18technical and policy experts pursuant to Section 1-129 of the
19Illinois Power Agency Act.
20    (d) Except for Section 20-160 and Article 50 of this Code,
21and as expressly required by Section 9.1 of the Illinois
22Lottery Law, the provisions of this Code do not apply to the
23procurement process provided for under Section 9.1 of the
24Illinois Lottery Law.
25    (e) This Code does not apply to the process used by the
26Capital Development Board to retain a person or entity to

 

 

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1assist the Capital Development Board with its duties related
2to the determination of costs of a clean coal SNG brownfield
3facility, as defined by Section 1-10 of the Illinois Power
4Agency Act, as required in subsection (h-3) of Section 9-220
5of the Public Utilities Act, including calculating the range
6of capital costs, the range of operating and maintenance
7costs, or the sequestration costs or monitoring the
8construction of clean coal SNG brownfield facility for the
9full duration of construction.
10    (f) (Blank).
11    (g) (Blank).
12    (h) This Code does not apply to the process to procure or
13contracts entered into in accordance with Sections 11-5.2 and
1411-5.3 of the Illinois Public Aid Code.
15    (i) Each chief procurement officer may access records
16necessary to review whether a contract, purchase, or other
17expenditure is or is not subject to the provisions of this
18Code, unless such records would be subject to attorney-client
19privilege.
20    (j) This Code does not apply to the process used by the
21Capital Development Board to retain an artist or work or works
22of art as required in Section 14 of the Capital Development
23Board Act.
24    (k) This Code does not apply to the process to procure
25contracts, or contracts entered into, by the State Board of
26Elections or the State Electoral Board for hearing officers

 

 

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1appointed pursuant to the Election Code.
2    (l) This Code does not apply to the processes used by the
3Illinois Student Assistance Commission to procure supplies and
4services paid for from the private funds of the Illinois
5Prepaid Tuition Fund. As used in this subsection (l), "private
6funds" means funds derived from deposits paid into the
7Illinois Prepaid Tuition Trust Fund and the earnings thereon.
8    (m) This Code shall apply regardless of the source of
9funds with which contracts are paid, including federal
10assistance moneys. Except as specifically provided in this
11Code, this Code shall not apply to procurement expenditures
12necessary for the Department of Public Health to conduct the
13Healthy Illinois Survey in accordance with Section 2310-431 of
14the Department of Public Health Powers and Duties Law of the
15Civil Administrative Code of Illinois.
16(Source: P.A. 103-8, eff. 6-7-23; 103-103, eff. 6-27-23;
17103-570, eff. 1-1-24; 103-580, eff. 12-8-23; 103-594, eff.
186-25-24; 103-605, eff. 7-1-24; 103-865, eff. 1-1-25; 104-2,
19eff. 6-16-25; 104-417, eff. 8-15-25; 104-458, eff. 6-1-26;
20revised 1-12-26.)
 
21    Section 120. The Use Tax Act is amended by changing
22Sections 3-5 and 3-10 as follows:
 
23    (35 ILCS 105/3-5)
24    Sec. 3-5. Exemptions. Use, which, on and after January 1,

 

 

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12025, includes use by a lessee, of the following tangible
2personal property is exempt from the tax imposed by this Act:
3    (1) Personal property purchased from a corporation,
4society, association, foundation, institution, or
5organization, other than a limited liability company, that is
6organized and operated as a not-for-profit service enterprise
7for the benefit of persons 65 years of age or older if the
8personal property was not purchased by the enterprise for the
9purpose of resale by the enterprise.
10    (2) Personal property purchased by a not-for-profit
11Illinois county fair association for use in conducting,
12operating, or promoting the county fair.
13    (3) Personal property purchased by a not-for-profit arts
14or cultural organization that establishes, by proof required
15by the Department by rule, that it has received an exemption
16under Section 501(c)(3) of the Internal Revenue Code and that
17is organized and operated primarily for the presentation or
18support of arts or cultural programming, activities, or
19services. These organizations include, but are not limited to,
20music and dramatic arts organizations such as symphony
21orchestras and theatrical groups, arts and cultural service
22organizations, local arts councils, visual arts organizations,
23and media arts organizations. On and after July 1, 2001 (the
24effective date of Public Act 92-35), however, an entity
25otherwise eligible for this exemption shall not make tax-free
26purchases unless it has an active identification number issued

 

 

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1by the Department.
2    (4) Except as otherwise provided in this Act, personal
3property purchased by a governmental body, by a corporation,
4society, association, foundation, or institution organized and
5operated exclusively for charitable, religious, or educational
6purposes, or by a not-for-profit corporation, society,
7association, foundation, institution, or organization that has
8no compensated officers or employees and that is organized and
9operated primarily for the recreation of persons 55 years of
10age or older. A limited liability company may qualify for the
11exemption under this paragraph only if the limited liability
12company is organized and operated exclusively for educational
13purposes. On and after July 1, 1987, however, no entity
14otherwise eligible for this exemption shall make tax-free
15purchases unless it has an active exemption identification
16number issued by the Department.
17    (5) Until July 1, 2003, a passenger car that is a
18replacement vehicle to the extent that the purchase price of
19the car is subject to the Replacement Vehicle Tax.
20    (6) Until July 1, 2003 and beginning again on September 1,
212004 through August 30, 2014, graphic arts machinery and
22equipment, including repair and replacement parts, both new
23and used, and including that manufactured on special order,
24certified by the purchaser to be used primarily for graphic
25arts production, and including machinery and equipment
26purchased for lease. Equipment includes chemicals or chemicals

 

 

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1acting as catalysts but only if the chemicals or chemicals
2acting as catalysts effect a direct and immediate change upon
3a graphic arts product. Beginning on July 1, 2017, graphic
4arts machinery and equipment is included in the manufacturing
5and assembling machinery and equipment exemption under
6paragraph (18).
7    (7) Farm chemicals.
8    (8) Legal tender, currency, medallions, or gold or silver
9coinage issued by the State of Illinois, the government of the
10United States of America, or the government of any foreign
11country, and bullion.
12    (9) Personal property purchased from a teacher-sponsored
13student organization affiliated with an elementary or
14secondary school located in Illinois.
15    (10) A motor vehicle that is used for automobile renting,
16as defined in the Automobile Renting Occupation and Use Tax
17Act.
18    (11) Farm machinery and equipment, both new and used,
19including that manufactured on special order, certified by the
20purchaser to be used primarily for production agriculture or
21State or federal agricultural programs, including individual
22replacement parts for the machinery and equipment, including
23machinery and equipment purchased for lease, and including
24implements of husbandry defined in Section 1-130 of the
25Illinois Vehicle Code, farm machinery and agricultural
26chemical and fertilizer spreaders, and nurse wagons required

 

 

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1to be registered under Section 3-809 of the Illinois Vehicle
2Code, but excluding other motor vehicles required to be
3registered under the Illinois Vehicle Code. Horticultural
4polyhouses or hoop houses used for propagating, growing, or
5overwintering plants shall be considered farm machinery and
6equipment under this item (11). Agricultural chemical tender
7tanks and dry boxes shall include units sold separately from a
8motor vehicle required to be licensed and units sold mounted
9on a motor vehicle required to be licensed if the selling price
10of the tender is separately stated.
11    Farm machinery and equipment shall include precision
12farming equipment that is installed or purchased to be
13installed on farm machinery and equipment, including, but not
14limited to, tractors, harvesters, sprayers, planters, seeders,
15or spreaders. Precision farming equipment includes, but is not
16limited to, soil testing sensors, computers, monitors,
17software, global positioning and mapping systems, and other
18such equipment.
19    Farm machinery and equipment also includes computers,
20sensors, software, and related equipment used primarily in the
21computer-assisted operation of production agriculture
22facilities, equipment, and activities such as, but not limited
23to, the collection, monitoring, and correlation of animal and
24crop data for the purpose of formulating animal diets and
25agricultural chemicals.
26    Beginning on January 1, 2024, farm machinery and equipment

 

 

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1also includes electrical power generation equipment used
2primarily for production agriculture.
3    This item (11) is exempt from the provisions of Section
43-90.
5    (12) Until June 30, 2013, fuel and petroleum products sold
6to or used by an air common carrier, certified by the carrier
7to be used for consumption, shipment, or storage in the
8conduct of its business as an air common carrier, for a flight
9destined for or returning from a location or locations outside
10the United States without regard to previous or subsequent
11domestic stopovers.
12    Beginning July 1, 2013, fuel and petroleum products sold
13to or used by an air carrier, certified by the carrier to be
14used for consumption, shipment, or storage in the conduct of
15its business as an air common carrier, for a flight that (i) is
16engaged in foreign trade or is engaged in trade between the
17United States and any of its possessions and (ii) transports
18at least one individual or package for hire from the city of
19origination to the city of final destination on the same
20aircraft, without regard to a change in the flight number of
21that aircraft.
22    (13) Proceeds of mandatory service charges separately
23stated on customers' bills for the purchase and consumption of
24food and beverages purchased at retail from a retailer, to the
25extent that the proceeds of the service charge are in fact
26turned over as tips or as a substitute for tips to the

 

 

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1employees who participate directly in preparing, serving,
2hosting or cleaning up the food or beverage function with
3respect to which the service charge is imposed.
4    (14) Until July 1, 2003, oil field exploration, drilling,
5and production equipment, including (i) rigs and parts of
6rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
7pipe and tubular goods, including casing and drill strings,
8(iii) pumps and pump-jack units, (iv) storage tanks and flow
9lines, (v) any individual replacement part for oil field
10exploration, drilling, and production equipment, and (vi)
11machinery and equipment purchased for lease; but excluding
12motor vehicles required to be registered under the Illinois
13Vehicle Code.
14    (15) Photoprocessing machinery and equipment, including
15repair and replacement parts, both new and used, including
16that manufactured on special order, certified by the purchaser
17to be used primarily for photoprocessing, and including
18photoprocessing machinery and equipment purchased for lease.
19    (16) Until July 1, 2028, coal and aggregate exploration,
20mining, off-highway hauling, processing, maintenance, and
21reclamation equipment, including replacement parts and
22equipment, and including equipment purchased for lease, but
23excluding motor vehicles required to be registered under the
24Illinois Vehicle Code. The changes made to this Section by
25Public Act 97-767 apply on and after July 1, 2003, but no claim
26for credit or refund is allowed on or after August 16, 2013

 

 

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1(the effective date of Public Act 98-456) for such taxes paid
2during the period beginning July 1, 2003 and ending on August
316, 2013 (the effective date of Public Act 98-456).
4    (17) Until July 1, 2003, distillation machinery and
5equipment, sold as a unit or kit, assembled or installed by the
6retailer, certified by the user to be used only for the
7production of ethyl alcohol that will be used for consumption
8as motor fuel or as a component of motor fuel for the personal
9use of the user, and not subject to sale or resale.
10    (18) Manufacturing and assembling machinery and equipment
11used primarily in the process of manufacturing or assembling
12tangible personal property for wholesale or retail sale or
13lease, whether that sale or lease is made directly by the
14manufacturer or by some other person, whether the materials
15used in the process are owned by the manufacturer or some other
16person, or whether that sale or lease is made apart from or as
17an incident to the seller's engaging in the service occupation
18of producing machines, tools, dies, jigs, patterns, gauges, or
19other similar items of no commercial value on special order
20for a particular purchaser. The exemption provided by this
21paragraph (18) includes production related tangible personal
22property, as defined in Section 3-50, purchased on or after
23July 1, 2019. The exemption provided by this paragraph (18)
24does not include machinery and equipment used in (i) the
25generation of electricity for wholesale or retail sale; (ii)
26the generation or treatment of natural or artificial gas for

 

 

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1wholesale or retail sale that is delivered to customers
2through pipes, pipelines, or mains; or (iii) the treatment of
3water for wholesale or retail sale that is delivered to
4customers through pipes, pipelines, or mains. The provisions
5of Public Act 98-583 are declaratory of existing law as to the
6meaning and scope of this exemption. Beginning on July 1,
72017, the exemption provided by this paragraph (18) includes,
8but is not limited to, graphic arts machinery and equipment,
9as defined in paragraph (6) of this Section.
10    (19) Personal property delivered to a purchaser or
11purchaser's donee inside Illinois when the purchase order for
12that personal property was received by a florist located
13outside Illinois who has a florist located inside Illinois
14deliver the personal property.
15    (20) Semen used for artificial insemination of livestock
16for direct agricultural production.
17    (21) Horses, or interests in horses, registered with and
18meeting the requirements of any of the Arabian Horse Club
19Registry of America, Appaloosa Horse Club, American Quarter
20Horse Association, United States Trotting Association, or
21Jockey Club, as appropriate, used for purposes of breeding or
22racing for prizes. This item (21) is exempt from the
23provisions of Section 3-90, and the exemption provided for
24under this item (21) applies for all periods beginning May 30,
251995, but no claim for credit or refund is allowed on or after
26January 1, 2008 for such taxes paid during the period

 

 

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1beginning May 30, 2000 and ending on January 1, 2008.
2    (22) Computers and communications equipment utilized for
3any hospital purpose and equipment used in the diagnosis,
4analysis, or treatment of hospital patients purchased by a
5lessor who leases the equipment, under a lease of one year or
6longer executed or in effect at the time the lessor would
7otherwise be subject to the tax imposed by this Act, to a
8hospital that has been issued an active tax exemption
9identification number by the Department under Section 1g of
10the Retailers' Occupation Tax Act. If the equipment is leased
11in a manner that does not qualify for this exemption or is used
12in any other non-exempt manner, the lessor shall be liable for
13the tax imposed under this Act or the Service Use Tax Act, as
14the case may be, based on the fair market value of the property
15at the time the non-qualifying use occurs. No lessor shall
16collect or attempt to collect an amount (however designated)
17that purports to reimburse that lessor for the tax imposed by
18this Act or the Service Use Tax Act, as the case may be, if the
19tax has not been paid by the lessor. If a lessor improperly
20collects any such amount from the lessee, the lessee shall
21have a legal right to claim a refund of that amount from the
22lessor. If, however, that amount is not refunded to the lessee
23for any reason, the lessor is liable to pay that amount to the
24Department.
25    (23) Personal property purchased by a lessor who leases
26the property, under a lease of one year or longer executed or

 

 

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1in effect at the time the lessor would otherwise be subject to
2the tax imposed by this Act, to a governmental body that has
3been issued an active sales tax exemption identification
4number by the Department under Section 1g of the Retailers'
5Occupation Tax Act. If the property is leased in a manner that
6does not qualify for this exemption or used in any other
7non-exempt manner, the lessor shall be liable for the tax
8imposed under this Act or the Service Use Tax Act, as the case
9may be, based on the fair market value of the property at the
10time the non-qualifying use occurs. No lessor shall collect or
11attempt to collect an amount (however designated) that
12purports to reimburse that lessor for the tax imposed by this
13Act or the Service Use Tax Act, as the case may be, if the tax
14has not been paid by the lessor. If a lessor improperly
15collects any such amount from the lessee, the lessee shall
16have a legal right to claim a refund of that amount from the
17lessor. If, however, that amount is not refunded to the lessee
18for any reason, the lessor is liable to pay that amount to the
19Department.
20    (24) Beginning with taxable years ending on or after
21December 31, 1995 and ending with taxable years ending on or
22before December 31, 2004, personal property that is donated
23for disaster relief to be used in a State or federally declared
24disaster area in Illinois or bordering Illinois by a
25manufacturer or retailer that is registered in this State to a
26corporation, society, association, foundation, or institution

 

 

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1that has been issued a sales tax exemption identification
2number by the Department that assists victims of the disaster
3who reside within the declared disaster area.
4    (25) Beginning with taxable years ending on or after
5December 31, 1995 and ending with taxable years ending on or
6before December 31, 2004, personal property that is used in
7the performance of infrastructure repairs in this State,
8including, but not limited to, municipal roads and streets,
9access roads, bridges, sidewalks, waste disposal systems,
10water and sewer line extensions, water distribution and
11purification facilities, storm water drainage and retention
12facilities, and sewage treatment facilities, resulting from a
13State or federally declared disaster in Illinois or bordering
14Illinois when such repairs are initiated on facilities located
15in the declared disaster area within 6 months after the
16disaster.
17    (26) Beginning July 1, 1999, game or game birds purchased
18at a "game breeding and hunting preserve area" as that term is
19used in the Wildlife Code. This paragraph is exempt from the
20provisions of Section 3-90.
21    (27) A motor vehicle, as that term is defined in Section
221-146 of the Illinois Vehicle Code, that is donated to a
23corporation, limited liability company, society, association,
24foundation, or institution that is determined by the
25Department to be organized and operated exclusively for
26educational purposes. For purposes of this exemption, "a

 

 

10400SB3222ham002- 189 -LRB104 19119 BDA 38710 a

1corporation, limited liability company, society, association,
2foundation, or institution organized and operated exclusively
3for educational purposes" means all tax-supported public
4schools, private schools that offer systematic instruction in
5useful branches of learning by methods common to public
6schools and that compare favorably in their scope and
7intensity with the course of study presented in tax-supported
8schools, and vocational or technical schools or institutes
9organized and operated exclusively to provide a course of
10study of not less than 6 weeks duration and designed to prepare
11individuals to follow a trade or to pursue a manual,
12technical, mechanical, industrial, business, or commercial
13occupation.
14    (28) Beginning January 1, 2000, personal property,
15including food, purchased through fundraising events for the
16benefit of a public or private elementary or secondary school,
17a group of those schools, or one or more school districts if
18the events are sponsored by an entity recognized by the school
19district that consists primarily of volunteers and includes
20parents and teachers of the school children. This paragraph
21does not apply to fundraising events (i) for the benefit of
22private home instruction or (ii) for which the fundraising
23entity purchases the personal property sold at the events from
24another individual or entity that sold the property for the
25purpose of resale by the fundraising entity and that profits
26from the sale to the fundraising entity. This paragraph is

 

 

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1exempt from the provisions of Section 3-90.
2    (29) Beginning January 1, 2000 and through December 31,
32001, new or used automatic vending machines that prepare and
4serve hot food and beverages, including coffee, soup, and
5other items, and replacement parts for these machines.
6Beginning January 1, 2002 and through June 30, 2003, machines
7and parts for machines used in commercial, coin-operated
8amusement and vending business if a use or occupation tax is
9paid on the gross receipts derived from the use of the
10commercial, coin-operated amusement and vending machines. This
11paragraph is exempt from the provisions of Section 3-90.
12    (30) Beginning January 1, 2001 and through June 30, 2016,
13food for human consumption that is to be consumed off the
14premises where it is sold (other than alcoholic beverages,
15soft drinks, and food that has been prepared for immediate
16consumption) and prescription and nonprescription medicines,
17drugs, medical appliances, and insulin, urine testing
18materials, syringes, and needles used by diabetics, for human
19use, when purchased for use by a person receiving medical
20assistance under Article V of the Illinois Public Aid Code who
21resides in a licensed long-term care facility, as defined in
22the Nursing Home Care Act, or in a licensed facility as defined
23in the ID/DD Community Care Act, the MC/DD Act, or the
24Specialized Mental Health Rehabilitation Act of 2013.
25    (31) Beginning on August 2, 2001 (the effective date of
26Public Act 92-227), computers and communications equipment

 

 

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1utilized for any hospital purpose and equipment used in the
2diagnosis, analysis, or treatment of hospital patients
3purchased by a lessor who leases the equipment, under a lease
4of one year or longer executed or in effect at the time the
5lessor would otherwise be subject to the tax imposed by this
6Act, to a hospital that has been issued an active tax exemption
7identification number by the Department under Section 1g of
8the Retailers' Occupation Tax Act. If the equipment is leased
9in a manner that does not qualify for this exemption or is used
10in any other nonexempt manner, the lessor shall be liable for
11the tax imposed under this Act or the Service Use Tax Act, as
12the case may be, based on the fair market value of the property
13at the time the nonqualifying use occurs. No lessor shall
14collect or attempt to collect an amount (however designated)
15that purports to reimburse that lessor for the tax imposed by
16this Act or the Service Use Tax Act, as the case may be, if the
17tax has not been paid by the lessor. If a lessor improperly
18collects any such amount from the lessee, the lessee shall
19have a legal right to claim a refund of that amount from the
20lessor. If, however, that amount is not refunded to the lessee
21for any reason, the lessor is liable to pay that amount to the
22Department. This paragraph is exempt from the provisions of
23Section 3-90.
24    (32) Beginning on August 2, 2001 (the effective date of
25Public Act 92-227), personal property purchased by a lessor
26who leases the property, under a lease of one year or longer

 

 

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1executed or in effect at the time the lessor would otherwise be
2subject to the tax imposed by this Act, to a governmental body
3that has been issued an active sales tax exemption
4identification number by the Department under Section 1g of
5the Retailers' Occupation Tax Act. If the property is leased
6in a manner that does not qualify for this exemption or used in
7any other nonexempt manner, the lessor shall be liable for the
8tax imposed under this Act or the Service Use Tax Act, as the
9case may be, based on the fair market value of the property at
10the time the nonqualifying use occurs. No lessor shall collect
11or attempt to collect an amount (however designated) that
12purports to reimburse that lessor for the tax imposed by this
13Act or the Service Use Tax Act, as the case may be, if the tax
14has not been paid by the lessor. If a lessor improperly
15collects any such amount from the lessee, the lessee shall
16have a legal right to claim a refund of that amount from the
17lessor. If, however, that amount is not refunded to the lessee
18for any reason, the lessor is liable to pay that amount to the
19Department. This paragraph is exempt from the provisions of
20Section 3-90.
21    (33) On and after July 1, 2003 and through June 30, 2004,
22the use in this State of motor vehicles of the second division
23with a gross vehicle weight in excess of 8,000 pounds and that
24are subject to the commercial distribution fee imposed under
25Section 3-815.1 of the Illinois Vehicle Code. Beginning on
26July 1, 2004 and through June 30, 2005, the use in this State

 

 

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1of motor vehicles of the second division: (i) with a gross
2vehicle weight rating in excess of 8,000 pounds; (ii) that are
3subject to the commercial distribution fee imposed under
4Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
5are primarily used for commercial purposes. Through June 30,
62005, this exemption applies to repair and replacement parts
7added after the initial purchase of such a motor vehicle if
8that motor vehicle is used in a manner that would qualify for
9the rolling stock exemption otherwise provided for in this
10Act. For purposes of this paragraph, the term "used for
11commercial purposes" means the transportation of persons or
12property in furtherance of any commercial or industrial
13enterprise, whether for-hire or not.
14    (34) Beginning January 1, 2008, tangible personal property
15used in the construction or maintenance of a community water
16supply, as defined under Section 3.145 of the Environmental
17Protection Act, that is operated by a not-for-profit
18corporation that holds a valid water supply permit issued
19under Title IV of the Environmental Protection Act. This
20paragraph is exempt from the provisions of Section 3-90.
21    (35) Beginning January 1, 2010 and continuing through
22December 31, 2029, materials, parts, equipment, components,
23and furnishings incorporated into or upon an aircraft as part
24of the modification, refurbishment, completion, replacement,
25repair, or maintenance of the aircraft. This exemption
26includes consumable supplies used in the modification,

 

 

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1refurbishment, completion, replacement, repair, and
2maintenance of aircraft. However, until January 1, 2024, this
3exemption excludes any materials, parts, equipment,
4components, and consumable supplies used in the modification,
5replacement, repair, and maintenance of aircraft engines or
6power plants, whether such engines or power plants are
7installed or uninstalled upon any such aircraft. "Consumable
8supplies" include, but are not limited to, adhesive, tape,
9sandpaper, general purpose lubricants, cleaning solution,
10latex gloves, and protective films.
11    Beginning January 1, 2010 and continuing through December
1231, 2023, this exemption applies only to the use of qualifying
13tangible personal property by persons who modify, refurbish,
14complete, repair, replace, or maintain aircraft and who (i)
15hold an Air Agency Certificate and are empowered to operate an
16approved repair station by the Federal Aviation
17Administration, (ii) have a Class IV Rating, and (iii) conduct
18operations in accordance with Part 145 of the Federal Aviation
19Regulations. From January 1, 2024 through December 31, 2029,
20this exemption applies only to the use of qualifying tangible
21personal property by: (A) persons who modify, refurbish,
22complete, repair, replace, or maintain aircraft and who (i)
23hold an Air Agency Certificate and are empowered to operate an
24approved repair station by the Federal Aviation
25Administration, (ii) have a Class IV Rating, and (iii) conduct
26operations in accordance with Part 145 of the Federal Aviation

 

 

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1Regulations; and (B) persons who engage in the modification,
2replacement, repair, and maintenance of aircraft engines or
3power plants without regard to whether or not those persons
4meet the qualifications of item (A).
5    The exemption does not include aircraft operated by a
6commercial air carrier providing scheduled passenger air
7service pursuant to authority issued under Part 121 or Part
8129 of the Federal Aviation Regulations. The changes made to
9this paragraph (35) by Public Act 98-534 are declarative of
10existing law. It is the intent of the General Assembly that the
11exemption under this paragraph (35) applies continuously from
12January 1, 2010 through December 31, 2024; however, no claim
13for credit or refund is allowed for taxes paid as a result of
14the disallowance of this exemption on or after January 1, 2015
15and prior to February 5, 2020 (the effective date of Public Act
16101-629).
17    (36) Tangible personal property purchased by a
18public-facilities corporation, as described in Section
1911-65-10 of the Illinois Municipal Code, for purposes of
20constructing or furnishing a municipal convention hall, but
21only if the legal title to the municipal convention hall is
22transferred to the municipality without any further
23consideration by or on behalf of the municipality at the time
24of the completion of the municipal convention hall or upon the
25retirement or redemption of any bonds or other debt
26instruments issued by the public-facilities corporation in

 

 

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1connection with the development of the municipal convention
2hall. This exemption includes existing public-facilities
3corporations as provided in Section 11-65-25 of the Illinois
4Municipal Code. This paragraph is exempt from the provisions
5of Section 3-90.
6    (37) Beginning January 1, 2017 and through December 31,
72026, menstrual pads, tampons, and menstrual cups.
8    (38) Merchandise that is subject to the Rental Purchase
9Agreement Occupation and Use Tax. The purchaser must certify
10that the item is purchased to be rented subject to a
11rental-purchase agreement, as defined in the Rental-Purchase
12Agreement Act, and provide proof of registration under the
13Rental Purchase Agreement Occupation and Use Tax Act. This
14paragraph is exempt from the provisions of Section 3-90.
15    (39) Tangible personal property purchased by a purchaser
16who is exempt from the tax imposed by this Act by operation of
17federal law. This paragraph is exempt from the provisions of
18Section 3-90.
19    (40) Qualified tangible personal property used in the
20construction or operation of a data center that has been
21granted a certificate of exemption by the Department of
22Commerce and Economic Opportunity, whether that tangible
23personal property is purchased by the owner, operator, or
24tenant of the data center or by a contractor or subcontractor
25of the owner, operator, or tenant. Data centers that would
26have qualified for a certificate of exemption prior to January

 

 

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11, 2020 had Public Act 101-31 been in effect may apply for and
2obtain an exemption for subsequent purchases of computer
3equipment or enabling software purchased or leased to upgrade,
4supplement, or replace computer equipment or enabling software
5purchased or leased in the original investment that would have
6qualified.
7    The Department of Commerce and Economic Opportunity shall
8grant a certificate of exemption under this item (40) to
9qualified data centers as defined by Section 605-1025 of the
10Department of Commerce and Economic Opportunity Law of the
11Civil Administrative Code of Illinois.
12    For the purposes of this item (40):
13        "Data center" means a building or a series of
14    buildings rehabilitated or constructed to house working
15    servers in one physical location or multiple sites within
16    the State of Illinois.
17        "Qualified tangible personal property" means:
18    electrical systems and equipment; climate control and
19    chilling equipment and systems; mechanical systems and
20    equipment; monitoring and secure systems; emergency
21    generators; hardware; computers; servers; data storage
22    devices; network connectivity equipment; racks; cabinets;
23    telecommunications cabling infrastructure; raised floor
24    systems; peripheral components or systems; software;
25    mechanical, electrical, or plumbing systems; battery
26    systems; cooling systems and towers; temperature control

 

 

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1    systems; other cabling; and other data center
2    infrastructure equipment and systems necessary to operate
3    qualified tangible personal property, including fixtures;
4    and component parts of any of the foregoing, including
5    installation, maintenance, repair, refurbishment, and
6    replacement of qualified tangible personal property to
7    generate, transform, transmit, distribute, or manage
8    electricity necessary to operate qualified tangible
9    personal property; and all other tangible personal
10    property that is essential to the operations of a computer
11    data center. The term "qualified tangible personal
12    property" also includes building materials physically
13    incorporated into the qualifying data center. To document
14    the exemption allowed under this Section, the retailer
15    must obtain from the purchaser a copy of the certificate
16    of eligibility issued by the Department of Commerce and
17    Economic Opportunity.
18    This item (40) is exempt from the provisions of Section
193-90.
20    (41) Beginning July 1, 2022, breast pumps, breast pump
21collection and storage supplies, and breast pump kits. This
22item (41) is exempt from the provisions of Section 3-90. As
23used in this item (41):
24        "Breast pump" means an electrically controlled or
25    manually controlled pump device designed or marketed to be
26    used to express milk from a human breast during lactation,

 

 

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1    including the pump device and any battery, AC adapter, or
2    other power supply unit that is used to power the pump
3    device and is packaged and sold with the pump device at the
4    time of sale.
5        "Breast pump collection and storage supplies" means
6    items of tangible personal property designed or marketed
7    to be used in conjunction with a breast pump to collect
8    milk expressed from a human breast and to store collected
9    milk until it is ready for consumption.
10        "Breast pump collection and storage supplies"
11    includes, but is not limited to: breast shields and breast
12    shield connectors; breast pump tubes and tubing adapters;
13    breast pump valves and membranes; backflow protectors and
14    backflow protector adaptors; bottles and bottle caps
15    specific to the operation of the breast pump; and breast
16    milk storage bags.
17        "Breast pump collection and storage supplies" does not
18    include: (1) bottles and bottle caps not specific to the
19    operation of the breast pump; (2) breast pump travel bags
20    and other similar carrying accessories, including ice
21    packs, labels, and other similar products; (3) breast pump
22    cleaning supplies; (4) nursing bras, bra pads, breast
23    shells, and other similar products; and (5) creams,
24    ointments, and other similar products that relieve
25    breastfeeding-related symptoms or conditions of the
26    breasts or nipples, unless sold as part of a breast pump

 

 

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1    kit that is pre-packaged by the breast pump manufacturer
2    or distributor.
3        "Breast pump kit" means a kit that: (1) contains no
4    more than a breast pump, breast pump collection and
5    storage supplies, a rechargeable battery for operating the
6    breast pump, a breastmilk cooler, bottle stands, ice
7    packs, and a breast pump carrying case; and (2) is
8    pre-packaged as a breast pump kit by the breast pump
9    manufacturer or distributor.
10    (42) Tangible personal property sold by or on behalf of
11the State Treasurer pursuant to the Revised Uniform Unclaimed
12Property Act. This item (42) is exempt from the provisions of
13Section 3-90.
14    (43) Beginning on January 1, 2024, tangible personal
15property purchased by an active duty member of the armed
16forces of the United States who presents valid military
17identification and purchases the property using a form of
18payment where the federal government is the payor. The member
19of the armed forces must complete, at the point of sale, a form
20prescribed by the Department of Revenue documenting that the
21transaction is eligible for the exemption under this
22paragraph. Retailers must keep the form as documentation of
23the exemption in their records for a period of not less than 6
24years. "Armed forces of the United States" means the United
25States Army, Navy, Air Force, Space Force, Marine Corps, or
26Coast Guard. This paragraph is exempt from the provisions of

 

 

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1Section 3-90.
2    (44) Beginning July 1, 2024, home-delivered meals provided
3to Medicare or Medicaid recipients when payment is made by an
4intermediary, such as a Medicare Administrative Contractor, a
5Managed Care Organization, or a Medicare Advantage
6Organization, pursuant to a government contract. This item
7(44) is exempt from the provisions of Section 3-90.
8    (45) Beginning on January 1, 2026, as further defined in
9Section 3-10, food for human consumption that is to be
10consumed off the premises where it is sold (other than
11alcoholic beverages, food consisting of or infused with adult
12use cannabis, soft drinks, candy, and food that has been
13prepared for immediate consumption, and, beginning on November
1412, 2026, food that is a final consumer hemp cannabinoid
15product as defined in the Illinois Hemp Act). This item (45) is
16exempt from the provisions of Section 3-90.
17    (46) Use by the lessee of the following leased tangible
18personal property:
19        (1) software transferred subject to a license that
20    meets the following requirements:
21            (A) it is evidenced by a written agreement signed
22        by the licensor and the customer;
23                (i) an electronic agreement in which the
24            customer accepts the license by means of an
25            electronic signature that is verifiable and can be
26            authenticated and is attached to or made part of

 

 

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1            the license will comply with this requirement;
2                (ii) a license agreement in which the customer
3            electronically accepts the terms by clicking "I
4            agree" does not comply with this requirement;
5            (B) it restricts the customer's duplication and
6        use of the software;
7            (C) it prohibits the customer from licensing,
8        sublicensing, or transferring the software to a third
9        party (except to a related party) without the
10        permission and continued control of the licensor;
11            (D) the licensor has a policy of providing another
12        copy at minimal or no charge if the customer loses or
13        damages the software, or of permitting the licensee to
14        make and keep an archival copy, and such policy is
15        either stated in the license agreement, supported by
16        the licensor's books and records, or supported by a
17        notarized statement made under penalties of perjury by
18        the licensor; and
19            (E) the customer must destroy or return all copies
20        of the software to the licensor at the end of the
21        license period; this provision is deemed to be met, in
22        the case of a perpetual license, without being set
23        forth in the license agreement; and
24        (2) property that is subject to a tax on lease
25    receipts imposed by a home rule unit of local government
26    if the ordinance imposing that tax was adopted prior to

 

 

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1    January 1, 2023.
2(Source: P.A. 103-9, Article 5, Section 5-5, eff. 6-7-23;
3103-9, Article 15, Section 15-5, eff. 6-7-23; 103-154, eff.
46-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,
5eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;
6103-781, eff. 8-5-24; 104-417, eff. 8-15-25.)
 
7    (35 ILCS 105/3-10)  from Ch. 120, par. 439.33-10
8    Sec. 3-10. Rate of tax. Unless otherwise provided in this
9Section, the tax imposed by this Act is at the rate of 6.25% of
10either the selling price or the fair market value, if any, of
11the tangible personal property, which, on and after January 1,
122025, includes leases of tangible personal property. In all
13cases where property functionally used or consumed is the same
14as the property that was purchased at retail, then the tax is
15imposed on the selling price of the property. In all cases
16where property functionally used or consumed is a by-product
17or waste product that has been refined, manufactured, or
18produced from property purchased at retail, then the tax is
19imposed on the lower of the fair market value, if any, of the
20specific property so used in this State or on the selling price
21of the property purchased at retail. For purposes of this
22Section "fair market value" means the price at which property
23would change hands between a willing buyer and a willing
24seller, neither being under any compulsion to buy or sell and
25both having reasonable knowledge of the relevant facts. The

 

 

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1fair market value shall be established by Illinois sales by
2the taxpayer of the same property as that functionally used or
3consumed, or if there are no such sales by the taxpayer, then
4comparable sales or purchases of property of like kind and
5character in Illinois.
6    Beginning on July 1, 2000 and through December 31, 2000,
7with respect to motor fuel, as defined in Section 1.1 of the
8Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
9the Use Tax Act, the tax is imposed at the rate of 1.25%.
10    Beginning on August 6, 2010 through August 15, 2010, and
11beginning again on August 5, 2022 through August 14, 2022,
12with respect to sales tax holiday items as defined in Section
133-6 of this Act, the tax is imposed at the rate of 1.25%.
14    With respect to gasohol, the tax imposed by this Act
15applies to (i) 70% of the proceeds of sales made on or after
16January 1, 1990, and before July 1, 2003, (ii) 80% of the
17proceeds of sales made on or after July 1, 2003 and on or
18before July 1, 2017, (iii) 100% of the proceeds of sales made
19after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
20the proceeds of sales made on or after January 1, 2024 and on
21or before December 31, 2028, and (v) 100% of the proceeds of
22sales made after December 31, 2028. If, at any time, however,
23the tax under this Act on sales of gasohol is imposed at the
24rate of 1.25%, then the tax imposed by this Act applies to 100%
25of the proceeds of sales of gasohol made during that time.
26    With respect to mid-range ethanol blends, the tax imposed

 

 

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1by this Act applies to (i) 80% of the proceeds of sales made on
2or after January 1, 2024 and on or before December 31, 2028 and
3(ii) 100% of the proceeds of sales made thereafter. If, at any
4time, however, the tax under this Act on sales of mid-range
5ethanol blends is imposed at the rate of 1.25%, then the tax
6imposed by this Act applies to 100% of the proceeds of sales of
7mid-range ethanol blends made during that time.
8    With respect to majority blended ethanol fuel, the tax
9imposed by this Act does not apply to the proceeds of sales
10made on or after July 1, 2003 and on or before December 31,
112028 but applies to 100% of the proceeds of sales made
12thereafter.
13    With respect to biodiesel blends with no less than 1% and
14no more than 10% biodiesel, the tax imposed by this Act applies
15to (i) 80% of the proceeds of sales made on or after July 1,
162003 and on or before December 31, 2018 and (ii) 100% of the
17proceeds of sales made after December 31, 2018 and before
18January 1, 2024. On and after January 1, 2024 and on or before
19December 31, 2030, the taxation of biodiesel, renewable
20diesel, and biodiesel blends shall be as provided in Section
213-5.1. If, at any time, however, the tax under this Act on
22sales of biodiesel blends with no less than 1% and no more than
2310% biodiesel is imposed at the rate of 1.25%, then the tax
24imposed by this Act applies to 100% of the proceeds of sales of
25biodiesel blends with no less than 1% and no more than 10%
26biodiesel made during that time.

 

 

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1    With respect to biodiesel and biodiesel blends with more
2than 10% but no more than 99% biodiesel, the tax imposed by
3this Act does not apply to the proceeds of sales made on or
4after July 1, 2003 and on or before December 31, 2023. On and
5after January 1, 2024 and on or before December 31, 2030, the
6taxation of biodiesel, renewable diesel, and biodiesel blends
7shall be as provided in Section 3-5.1.
8    Until July 1, 2022 and from July 1, 2023 through December
931, 2025, with respect to food for human consumption that is to
10be consumed off the premises where it is sold (other than
11alcoholic beverages, food consisting of or infused with adult
12use cannabis, soft drinks, and food that has been prepared for
13immediate consumption, and, beginning on November 12, 2026,
14food that is a final consumer hemp cannabinoid product as
15defined in the Illinois Hemp Act), the tax is imposed at the
16rate of 1%. Beginning on July 1, 2022 and until July 1, 2023,
17with respect to food for human consumption that is to be
18consumed off the premises where it is sold (other than
19alcoholic beverages, food consisting of or infused with adult
20use cannabis, soft drinks, and food that has been prepared for
21immediate consumption), the tax is imposed at the rate of 0%.
22On and after January 1, 2026, food for human consumption that
23is to be consumed off the premises where it is sold (other than
24alcoholic beverages, food consisting of or infused with adult
25use cannabis, soft drinks, candy, and food that has been
26prepared for immediate consumption) is exempt from the tax

 

 

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

 

 

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

 

 

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1purposes of this Section, "grooming and hygiene products"
2includes, but is not limited to, soaps and cleaning solutions,
3shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
4lotions and screens, unless those products are available by
5prescription only, regardless of whether the products meet the
6definition of "over-the-counter-drugs". For the purposes of
7this paragraph, "over-the-counter-drug" means a drug for human
8use that contains a label that identifies the product as a drug
9as required by 21 CFR 201.66. The "over-the-counter-drug"
10label includes:
11        (A) a "Drug Facts" panel; or
12        (B) a statement of the "active ingredient(s)" with a
13    list of those ingredients contained in the compound,
14    substance or preparation.
15    Beginning on January 1, 2014 (the effective date of Public
16Act 98-122), "prescription and nonprescription medicines and
17drugs" includes medical cannabis purchased from a registered
18dispensing organization under the Compassionate Use of Medical
19Cannabis Program Act.
20    Beginning 90 days after the effective date of this
21amendatory Act of the 104th General Assembly, "prescription
22and nonprescription medicines and drugs" includes cannabis or
23cannabis-infused products purchased by a qualified patient,
24provisional patient, designated caregiver, or Opioid
25Alternative Patient Program participant as part of that
26individual's adequate medical supply from any dispensary that

 

 

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1has been issued a Medical Cannabis Dispensing Organization
2license, as these terms are defined under the Cannabis
3Regulation and Tax Act.    
4    Beginning on the November 12, 2026, "prescription and
5nonprescription medicines and drugs" does not include a final
6consumer hemp cannabinoid product as defined in the Illinois
7Hemp Act.    
8    As used in this Section, "adult use cannabis" means
9cannabis subject to tax under the Cannabis Cultivation
10Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
11and does not include cannabis subject to tax under the
12Compassionate Use of Medical Cannabis Program Act.
13    Beginning 90 days after the effective date of this
14amendatory Act of the 104th General Assembly, as used in this
15Section, "adult use cannabis" does not include cannabis or
16cannabis-infused products purchased by a qualified patient,
17provisional patient, designated caregiver, or Opioid
18Alternative Patient Program participant as part of that
19individual's adequate medical supply from any dispensary that
20has been issued a Medical Cannabis Dispensing Organization
21license.    
22    If the property that is purchased at retail from a
23retailer is acquired outside Illinois and used outside
24Illinois before being brought to Illinois for use here and is
25taxable under this Act, the "selling price" on which the tax is
26computed shall be reduced by an amount that represents a

 

 

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1reasonable allowance for depreciation for the period of prior
2out-of-state use. No depreciation is allowed in cases where
3the tax under this Act is imposed on lease receipts.
4(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
5103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-417, eff.
68-15-25.)
 
7    Section 125. The Service Use Tax Act is amended by
8changing Sections 3-5 and 3-10 as follows:
 
9    (35 ILCS 110/3-5)
10    Sec. 3-5. Exemptions. Use of the following tangible
11personal property is exempt from the tax imposed by this Act:
12    (1) Personal property purchased from a corporation,
13society, association, foundation, institution, or
14organization, other than a limited liability company, that is
15organized and operated as a not-for-profit service enterprise
16for the benefit of persons 65 years of age or older if the
17personal property was not purchased by the enterprise for the
18purpose of resale by the enterprise.
19    (2) Personal property purchased by a non-profit Illinois
20county fair association for use in conducting, operating, or
21promoting the county fair.
22    (3) Personal property purchased by a not-for-profit arts
23or cultural organization that establishes, by proof required
24by the Department by rule, that it has received an exemption

 

 

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1under Section 501(c)(3) of the Internal Revenue Code and that
2is organized and operated primarily for the presentation or
3support of arts or cultural programming, activities, or
4services. These organizations include, but are not limited to,
5music and dramatic arts organizations such as symphony
6orchestras and theatrical groups, arts and cultural service
7organizations, local arts councils, visual arts organizations,
8and media arts organizations. On and after July 1, 2001 (the
9effective date of Public Act 92-35), however, an entity
10otherwise eligible for this exemption shall not make tax-free
11purchases unless it has an active identification number issued
12by the Department.
13    (4) Legal tender, currency, medallions, or gold or silver
14coinage issued by the State of Illinois, the government of the
15United States of America, or the government of any foreign
16country, and bullion.
17    (5) Until July 1, 2003 and beginning again on September 1,
182004 through August 30, 2014, graphic arts machinery and
19equipment, including repair and replacement parts, both new
20and used, and including that manufactured on special order or
21purchased for lease, certified by the purchaser to be used
22primarily for graphic arts production. Equipment includes
23chemicals or chemicals acting as catalysts but only if the
24chemicals or chemicals acting as catalysts effect a direct and
25immediate change upon a graphic arts product. Beginning on
26July 1, 2017, graphic arts machinery and equipment is included

 

 

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1in the manufacturing and assembling machinery and equipment
2exemption under Section 2 of this Act.
3    (6) Personal property purchased from a teacher-sponsored
4student organization affiliated with an elementary or
5secondary school located in Illinois.
6    (7) Farm machinery and equipment, both new and used,
7including that manufactured on special order, certified by the
8purchaser to be used primarily for production agriculture or
9State or federal agricultural programs, including individual
10replacement parts for the machinery and equipment, including
11machinery and equipment purchased for lease, and including
12implements of husbandry defined in Section 1-130 of the
13Illinois Vehicle Code, farm machinery and agricultural
14chemical and fertilizer spreaders, and nurse wagons required
15to be registered under Section 3-809 of the Illinois Vehicle
16Code, but excluding other motor vehicles required to be
17registered under the Illinois Vehicle Code. Horticultural
18polyhouses or hoop houses used for propagating, growing, or
19overwintering plants shall be considered farm machinery and
20equipment under this item (7). Agricultural chemical tender
21tanks and dry boxes shall include units sold separately from a
22motor vehicle required to be licensed and units sold mounted
23on a motor vehicle required to be licensed if the selling price
24of the tender is separately stated.
25    Farm machinery and equipment shall include precision
26farming equipment that is installed or purchased to be

 

 

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1installed on farm machinery and equipment, including, but not
2limited to, tractors, harvesters, sprayers, planters, seeders,
3or spreaders. Precision farming equipment includes, but is not
4limited to, soil testing sensors, computers, monitors,
5software, global positioning and mapping systems, and other
6such equipment.
7    Farm machinery and equipment also includes computers,
8sensors, software, and related equipment used primarily in the
9computer-assisted operation of production agriculture
10facilities, equipment, and activities such as, but not limited
11to, the collection, monitoring, and correlation of animal and
12crop data for the purpose of formulating animal diets and
13agricultural chemicals.
14    Beginning on January 1, 2024, farm machinery and equipment
15also includes electrical power generation equipment used
16primarily for production agriculture.
17    This item (7) is exempt from the provisions of Section
183-75.
19    (8) Until June 30, 2013, fuel and petroleum products sold
20to or used by an air common carrier, certified by the carrier
21to be used for consumption, shipment, or storage in the
22conduct of its business as an air common carrier, for a flight
23destined for or returning from a location or locations outside
24the United States without regard to previous or subsequent
25domestic stopovers.
26    Beginning July 1, 2013, fuel and petroleum products sold

 

 

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1to or used by an air carrier, certified by the carrier to be
2used for consumption, shipment, or storage in the conduct of
3its business as an air common carrier, for a flight that (i) is
4engaged in foreign trade or is engaged in trade between the
5United States and any of its possessions and (ii) transports
6at least one individual or package for hire from the city of
7origination to the city of final destination on the same
8aircraft, without regard to a change in the flight number of
9that aircraft.
10    (9) Proceeds of mandatory service charges separately
11stated on customers' bills for the purchase and consumption of
12food and beverages acquired as an incident to the purchase of a
13service from a serviceman, to the extent that the proceeds of
14the service charge are in fact turned over as tips or as a
15substitute for tips to the employees who participate directly
16in preparing, serving, hosting or cleaning up the food or
17beverage function with respect to which the service charge is
18imposed.
19    (10) Until July 1, 2003, oil field exploration, drilling,
20and production equipment, including (i) rigs and parts of
21rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
22pipe and tubular goods, including casing and drill strings,
23(iii) pumps and pump-jack units, (iv) storage tanks and flow
24lines, (v) any individual replacement part for oil field
25exploration, drilling, and production equipment, and (vi)
26machinery and equipment purchased for lease; but excluding

 

 

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1motor vehicles required to be registered under the Illinois
2Vehicle Code.
3    (11) Proceeds from the sale of photoprocessing machinery
4and equipment, including repair and replacement parts, both
5new and used, including that manufactured on special order,
6certified by the purchaser to be used primarily for
7photoprocessing, and including photoprocessing machinery and
8equipment purchased for lease.
9    (12) Until July 1, 2028, coal and aggregate exploration,
10mining, off-highway hauling, processing, maintenance, and
11reclamation equipment, including replacement parts and
12equipment, and including equipment purchased for lease, but
13excluding motor vehicles required to be registered under the
14Illinois Vehicle Code. The changes made to this Section by
15Public Act 97-767 apply on and after July 1, 2003, but no claim
16for credit or refund is allowed on or after August 16, 2013
17(the effective date of Public Act 98-456) for such taxes paid
18during the period beginning July 1, 2003 and ending on August
1916, 2013 (the effective date of Public Act 98-456).
20    (13) Semen used for artificial insemination of livestock
21for direct agricultural production.
22    (14) Horses, or interests in horses, registered with and
23meeting the requirements of any of the Arabian Horse Club
24Registry of America, Appaloosa Horse Club, American Quarter
25Horse Association, United States Trotting Association, or
26Jockey Club, as appropriate, used for purposes of breeding or

 

 

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1racing for prizes. This item (14) is exempt from the
2provisions of Section 3-75, and the exemption provided for
3under this item (14) applies for all periods beginning May 30,
41995, but no claim for credit or refund is allowed on or after
5January 1, 2008 (the effective date of Public Act 95-88) for
6such taxes paid during the period beginning May 30, 2000 and
7ending on January 1, 2008 (the effective date of Public Act
895-88).
9    (15) Computers and communications equipment utilized for
10any hospital purpose and equipment used in the diagnosis,
11analysis, or treatment of hospital patients purchased by a
12lessor who leases the equipment, under a lease of one year or
13longer executed or in effect at the time the lessor would
14otherwise be subject to the tax imposed by this Act, to a
15hospital that has been issued an active tax exemption
16identification number by the Department under Section 1g of
17the Retailers' Occupation Tax Act. If the equipment is leased
18in a manner that does not qualify for this exemption or is used
19in any other non-exempt manner, the lessor shall be liable for
20the tax imposed under this Act or the Use Tax Act, as the case
21may be, based on the fair market value of the property at the
22time the non-qualifying use occurs. No lessor shall collect or
23attempt to collect an amount (however designated) that
24purports to reimburse that lessor for the tax imposed by this
25Act or the Use Tax Act, as the case may be, if the tax has not
26been paid by the lessor. If a lessor improperly collects any

 

 

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1such amount from the lessee, the lessee shall have a legal
2right to claim a refund of that amount from the lessor. If,
3however, that amount is not refunded to the lessee for any
4reason, the lessor is liable to pay that amount to the
5Department.
6    (16) Personal property purchased by a lessor who leases
7the property, under a lease of one year or longer executed or
8in effect at the time the lessor would otherwise be subject to
9the tax imposed by this Act, to a governmental body that has
10been issued an active tax exemption identification number by
11the Department under Section 1g of the Retailers' Occupation
12Tax Act. If the property is leased in a manner that does not
13qualify for this exemption or is used in any other non-exempt
14manner, the lessor shall be liable for the tax imposed under
15this Act or the Use Tax Act, as the case may be, based on the
16fair market value of the property at the time the
17non-qualifying use occurs. No lessor shall collect or attempt
18to collect an amount (however designated) that purports to
19reimburse that lessor for the tax imposed by this Act or the
20Use Tax Act, as the case may be, if the tax has not been paid
21by the lessor. If a lessor improperly collects any such amount
22from the lessee, the lessee shall have a legal right to claim a
23refund of that amount from the lessor. If, however, that
24amount is not refunded to the lessee for any reason, the lessor
25is liable to pay that amount to the Department.
26    (17) Beginning with taxable years ending on or after

 

 

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1December 31, 1995 and ending with taxable years ending on or
2before December 31, 2004, personal property that is donated
3for disaster relief to be used in a State or federally declared
4disaster area in Illinois or bordering Illinois by a
5manufacturer or retailer that is registered in this State to a
6corporation, society, association, foundation, or institution
7that has been issued a sales tax exemption identification
8number by the Department that assists victims of the disaster
9who reside within the declared disaster area.
10    (18) Beginning with taxable years ending on or after
11December 31, 1995 and ending with taxable years ending on or
12before December 31, 2004, personal property that is used in
13the performance of infrastructure repairs in this State,
14including, but not limited to, municipal roads and streets,
15access roads, bridges, sidewalks, waste disposal systems,
16water and sewer line extensions, water distribution and
17purification facilities, storm water drainage and retention
18facilities, and sewage treatment facilities, resulting from a
19State or federally declared disaster in Illinois or bordering
20Illinois when such repairs are initiated on facilities located
21in the declared disaster area within 6 months after the
22disaster.
23    (19) Beginning July 1, 1999, game or game birds purchased
24at a "game breeding and hunting preserve area" as that term is
25used in the Wildlife Code. This paragraph is exempt from the
26provisions of Section 3-75.

 

 

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1    (20) A motor vehicle, as that term is defined in Section
21-146 of the Illinois Vehicle Code, that is donated to a
3corporation, limited liability company, society, association,
4foundation, or institution that is determined by the
5Department to be organized and operated exclusively for
6educational purposes. For purposes of this exemption, "a
7corporation, limited liability company, society, association,
8foundation, or institution organized and operated exclusively
9for educational purposes" means all tax-supported public
10schools, private schools that offer systematic instruction in
11useful branches of learning by methods common to public
12schools and that compare favorably in their scope and
13intensity with the course of study presented in tax-supported
14schools, and vocational or technical schools or institutes
15organized and operated exclusively to provide a course of
16study of not less than 6 weeks duration and designed to prepare
17individuals to follow a trade or to pursue a manual,
18technical, mechanical, industrial, business, or commercial
19occupation.
20    (21) Beginning January 1, 2000, personal property,
21including food, purchased through fundraising events for the
22benefit of a public or private elementary or secondary school,
23a group of those schools, or one or more school districts if
24the events are sponsored by an entity recognized by the school
25district that consists primarily of volunteers and includes
26parents and teachers of the school children. This paragraph

 

 

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1does not apply to fundraising events (i) for the benefit of
2private home instruction or (ii) for which the fundraising
3entity purchases the personal property sold at the events from
4another individual or entity that sold the property for the
5purpose of resale by the fundraising entity and that profits
6from the sale to the fundraising entity. This paragraph is
7exempt from the provisions of Section 3-75.
8    (22) Beginning January 1, 2000 and through December 31,
92001, new or used automatic vending machines that prepare and
10serve hot food and beverages, including coffee, soup, and
11other items, and replacement parts for these machines.
12Beginning January 1, 2002 and through June 30, 2003, machines
13and parts for machines used in commercial, coin-operated
14amusement and vending business if a use or occupation tax is
15paid on the gross receipts derived from the use of the
16commercial, coin-operated amusement and vending machines. This
17paragraph is exempt from the provisions of Section 3-75.
18    (23) Beginning August 23, 2001 and through June 30, 2016,
19food for human consumption that is to be consumed off the
20premises where it is sold (other than alcoholic beverages,
21soft drinks, and food that has been prepared for immediate
22consumption) and prescription and nonprescription medicines,
23drugs, medical appliances, and insulin, urine testing
24materials, syringes, and needles used by diabetics, for human
25use, when purchased for use by a person receiving medical
26assistance under Article V of the Illinois Public Aid Code who

 

 

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1resides in a licensed long-term care facility, as defined in
2the Nursing Home Care Act, or in a licensed facility as defined
3in the ID/DD Community Care Act, the MC/DD Act, or the
4Specialized Mental Health Rehabilitation Act of 2013.
5    (24) Beginning on August 2, 2001 (the effective date of
6Public Act 92-227), computers and communications equipment
7utilized for any hospital purpose and equipment used in the
8diagnosis, analysis, or treatment of hospital patients
9purchased by a lessor who leases the equipment, under a lease
10of one year or longer executed or in effect at the time the
11lessor would otherwise be subject to the tax imposed by this
12Act, to a hospital that has been issued an active tax exemption
13identification number by the Department under Section 1g of
14the Retailers' Occupation Tax Act. If the equipment is leased
15in a manner that does not qualify for this exemption or is used
16in any other nonexempt manner, the lessor shall be liable for
17the tax imposed under this Act or the Use Tax Act, as the case
18may be, based on the fair market value of the property at the
19time the nonqualifying use occurs. No lessor shall collect or
20attempt to collect an amount (however designated) that
21purports to reimburse that lessor for the tax imposed by this
22Act or the Use Tax Act, as the case may be, if the tax has not
23been paid by the lessor. If a lessor improperly collects any
24such amount from the lessee, the lessee shall have a legal
25right to claim a refund of that amount from the lessor. If,
26however, that amount is not refunded to the lessee for any

 

 

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1reason, the lessor is liable to pay that amount to the
2Department. This paragraph is exempt from the provisions of
3Section 3-75.
4    (25) Beginning on August 2, 2001 (the effective date of
5Public Act 92-227), personal property purchased by a lessor
6who leases the property, under a lease of one year or longer
7executed or in effect at the time the lessor would otherwise be
8subject to the tax imposed by this Act, to a governmental body
9that has been issued an active tax exemption identification
10number by the Department under Section 1g of the Retailers'
11Occupation Tax Act. If the property is leased in a manner that
12does not qualify for this exemption or is used in any other
13nonexempt manner, the lessor shall be liable for the tax
14imposed under this Act or the Use Tax Act, as the case may be,
15based on the fair market value of the property at the time the
16nonqualifying use occurs. No lessor shall collect or attempt
17to collect an amount (however designated) that purports to
18reimburse that lessor for the tax imposed by this Act or the
19Use Tax Act, as the case may be, if the tax has not been paid
20by the lessor. If a lessor improperly collects any such amount
21from the lessee, the lessee shall have a legal right to claim a
22refund of that amount from the lessor. If, however, that
23amount is not refunded to the lessee for any reason, the lessor
24is liable to pay that amount to the Department. This paragraph
25is exempt from the provisions of Section 3-75.
26    (26) Beginning January 1, 2008, tangible personal property

 

 

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1used in the construction or maintenance of a community water
2supply, as defined under Section 3.145 of the Environmental
3Protection Act, that is operated by a not-for-profit
4corporation that holds a valid water supply permit issued
5under Title IV of the Environmental Protection Act. This
6paragraph is exempt from the provisions of Section 3-75.
7    (27) Beginning January 1, 2010 and continuing through
8December 31, 2029, materials, parts, equipment, components,
9and furnishings incorporated into or upon an aircraft as part
10of the modification, refurbishment, completion, replacement,
11repair, or maintenance of the aircraft. This exemption
12includes consumable supplies used in the modification,
13refurbishment, completion, replacement, repair, and
14maintenance of aircraft. However, until January 1, 2024, this
15exemption excludes any materials, parts, equipment,
16components, and consumable supplies used in the modification,
17replacement, repair, and maintenance of aircraft engines or
18power plants, whether such engines or power plants are
19installed or uninstalled upon any such aircraft. "Consumable
20supplies" include, but are not limited to, adhesive, tape,
21sandpaper, general purpose lubricants, cleaning solution,
22latex gloves, and protective films.
23    Beginning January 1, 2010 and continuing through December
2431, 2023, this exemption applies only to the use of qualifying
25tangible personal property transferred incident to the
26modification, refurbishment, completion, replacement, repair,

 

 

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1or maintenance of aircraft by persons who (i) hold an Air
2Agency Certificate and are empowered to operate an approved
3repair station by the Federal Aviation Administration, (ii)
4have a Class IV Rating, and (iii) conduct operations in
5accordance with Part 145 of the Federal Aviation Regulations.
6From January 1, 2024 through December 31, 2029, this exemption
7applies only to the use of qualifying tangible personal
8property transferred incident to: (A) the modification,
9refurbishment, completion, repair, replacement, or maintenance
10of an aircraft by persons who (i) hold an Air Agency
11Certificate and are empowered to operate an approved repair
12station by the Federal Aviation Administration, (ii) have a
13Class IV Rating, and (iii) conduct operations in accordance
14with Part 145 of the Federal Aviation Regulations; and (B) the
15modification, replacement, repair, and maintenance of aircraft
16engines or power plants without regard to whether or not those
17persons meet the qualifications of item (A).
18    The exemption does not include aircraft operated by a
19commercial air carrier providing scheduled passenger air
20service pursuant to authority issued under Part 121 or Part
21129 of the Federal Aviation Regulations. The changes made to
22this paragraph (27) by Public Act 98-534 are declarative of
23existing law. It is the intent of the General Assembly that the
24exemption under this paragraph (27) applies continuously from
25January 1, 2010 through December 31, 2024; however, no claim
26for credit or refund is allowed for taxes paid as a result of

 

 

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1the disallowance of this exemption on or after January 1, 2015
2and prior to February 5, 2020 (the effective date of Public Act
3101-629).
4    (28) Tangible personal property purchased by a
5public-facilities corporation, as described in Section
611-65-10 of the Illinois Municipal Code, for purposes of
7constructing or furnishing a municipal convention hall, but
8only if the legal title to the municipal convention hall is
9transferred to the municipality without any further
10consideration by or on behalf of the municipality at the time
11of the completion of the municipal convention hall or upon the
12retirement or redemption of any bonds or other debt
13instruments issued by the public-facilities corporation in
14connection with the development of the municipal convention
15hall. This exemption includes existing public-facilities
16corporations as provided in Section 11-65-25 of the Illinois
17Municipal Code. This paragraph is exempt from the provisions
18of Section 3-75.
19    (29) Beginning January 1, 2017 and through December 31,
202026, menstrual pads, tampons, and menstrual cups.
21    (30) Tangible personal property transferred to a purchaser
22who is exempt from the tax imposed by this Act by operation of
23federal law. This paragraph is exempt from the provisions of
24Section 3-75.
25    (31) Qualified tangible personal property used in the
26construction or operation of a data center that has been

 

 

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1granted a certificate of exemption by the Department of
2Commerce and Economic Opportunity, whether that tangible
3personal property is purchased by the owner, operator, or
4tenant of the data center or by a contractor or subcontractor
5of the owner, operator, or tenant. Data centers that would
6have qualified for a certificate of exemption prior to January
71, 2020 had Public Act 101-31 been in effect, may apply for and
8obtain an exemption for subsequent purchases of computer
9equipment or enabling software purchased or leased to upgrade,
10supplement, or replace computer equipment or enabling software
11purchased or leased in the original investment that would have
12qualified.
13    The Department of Commerce and Economic Opportunity shall
14grant a certificate of exemption under this item (31) to
15qualified data centers as defined by Section 605-1025 of the
16Department of Commerce and Economic Opportunity Law of the
17Civil Administrative Code of Illinois.
18    For the purposes of this item (31):
19        "Data center" means a building or a series of
20    buildings rehabilitated or constructed to house working
21    servers in one physical location or multiple sites within
22    the State of Illinois.
23        "Qualified tangible personal property" means:
24    electrical systems and equipment; climate control and
25    chilling equipment and systems; mechanical systems and
26    equipment; monitoring and secure systems; emergency

 

 

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1    generators; hardware; computers; servers; data storage
2    devices; network connectivity equipment; racks; cabinets;
3    telecommunications cabling infrastructure; raised floor
4    systems; peripheral components or systems; software;
5    mechanical, electrical, or plumbing systems; battery
6    systems; cooling systems and towers; temperature control
7    systems; other cabling; and other data center
8    infrastructure equipment and systems necessary to operate
9    qualified tangible personal property, including fixtures;
10    and component parts of any of the foregoing, including
11    installation, maintenance, repair, refurbishment, and
12    replacement of qualified tangible personal property to
13    generate, transform, transmit, distribute, or manage
14    electricity necessary to operate qualified tangible
15    personal property; and all other tangible personal
16    property that is essential to the operations of a computer
17    data center. The term "qualified tangible personal
18    property" also includes building materials physically
19    incorporated into the qualifying data center. To document
20    the exemption allowed under this Section, the retailer
21    must obtain from the purchaser a copy of the certificate
22    of eligibility issued by the Department of Commerce and
23    Economic Opportunity.
24    This item (31) is exempt from the provisions of Section
253-75.
26    (32) Beginning July 1, 2022, breast pumps, breast pump

 

 

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1collection and storage supplies, and breast pump kits. This
2item (32) is exempt from the provisions of Section 3-75. As
3used in this item (32):
4        "Breast pump" means an electrically controlled or
5    manually controlled pump device designed or marketed to be
6    used to express milk from a human breast during lactation,
7    including the pump device and any battery, AC adapter, or
8    other power supply unit that is used to power the pump
9    device and is packaged and sold with the pump device at the
10    time of sale.
11        "Breast pump collection and storage supplies" means
12    items of tangible personal property designed or marketed
13    to be used in conjunction with a breast pump to collect
14    milk expressed from a human breast and to store collected
15    milk until it is ready for consumption.
16        "Breast pump collection and storage supplies"
17    includes, but is not limited to: breast shields and breast
18    shield connectors; breast pump tubes and tubing adapters;
19    breast pump valves and membranes; backflow protectors and
20    backflow protector adaptors; bottles and bottle caps
21    specific to the operation of the breast pump; and breast
22    milk storage bags.
23        "Breast pump collection and storage supplies" does not
24    include: (1) bottles and bottle caps not specific to the
25    operation of the breast pump; (2) breast pump travel bags
26    and other similar carrying accessories, including ice

 

 

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1    packs, labels, and other similar products; (3) breast pump
2    cleaning supplies; (4) nursing bras, bra pads, breast
3    shells, and other similar products; and (5) creams,
4    ointments, and other similar products that relieve
5    breastfeeding-related symptoms or conditions of the
6    breasts or nipples, unless sold as part of a breast pump
7    kit that is pre-packaged by the breast pump manufacturer
8    or distributor.
9        "Breast pump kit" means a kit that: (1) contains no
10    more than a breast pump, breast pump collection and
11    storage supplies, a rechargeable battery for operating the
12    breast pump, a breastmilk cooler, bottle stands, ice
13    packs, and a breast pump carrying case; and (2) is
14    pre-packaged as a breast pump kit by the breast pump
15    manufacturer or distributor.
16    (33) Tangible personal property sold by or on behalf of
17the State Treasurer pursuant to the Revised Uniform Unclaimed
18Property Act. This item (33) is exempt from the provisions of
19Section 3-75.
20    (34) Beginning on January 1, 2024, tangible personal
21property purchased by an active duty member of the armed
22forces of the United States who presents valid military
23identification and purchases the property using a form of
24payment where the federal government is the payor. The member
25of the armed forces must complete, at the point of sale, a form
26prescribed by the Department of Revenue documenting that the

 

 

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1transaction is eligible for the exemption under this
2paragraph. Retailers must keep the form as documentation of
3the exemption in their records for a period of not less than 6
4years. "Armed forces of the United States" means the United
5States Army, Navy, Air Force, Space Force, Marine Corps, or
6Coast Guard. This paragraph is exempt from the provisions of
7Section 3-75.
8    (35) Beginning July 1, 2024, home-delivered meals provided
9to Medicare or Medicaid recipients when payment is made by an
10intermediary, such as a Medicare Administrative Contractor, a
11Managed Care Organization, or a Medicare Advantage
12Organization, pursuant to a government contract. This
13paragraph (35) is exempt from the provisions of Section 3-75.
14    (36) Beginning on January 1, 2026, as further defined in
15Section 3-10, food prepared for immediate consumption and
16transferred incident to a sale of service subject to this Act
17or the Service Occupation Tax Act by an entity licensed under
18the Hospital Licensing Act, the Nursing Home Care Act, the
19Assisted Living and Shared Housing Act, the ID/DD Community
20Care Act, the MC/DD Act, the Specialized Mental Health
21Rehabilitation Act of 2013, or the Child Care Act of 1969 or by
22an entity that holds a permit issued pursuant to the Life Care
23Facilities Act. This item (36) is exempt from the provisions
24of Section 3-75.
25    (37) Beginning on January 1, 2026, as further defined in
26Section 3-10, food for human consumption that is to be

 

 

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1consumed off the premises where it is sold (other than
2alcoholic beverages, food consisting of or infused with adult
3use cannabis, soft drinks, candy, and food that has been
4prepared for immediate consumption, and, beginning on November
512, 2026, food that is a final consumer hemp cannabinoid
6product as defined in the Illinois Hemp Act). This item (37) is
7exempt from the provisions of Section 3-75.
8    (38) Use by a lessee of the following leased tangible
9personal property:
10        (1) software transferred subject to a license that
11    meets the following requirements:
12            (A) it is evidenced by a written agreement signed
13        by the licensor and the customer;
14                (i) an electronic agreement in which the
15            customer accepts the license by means of an
16            electronic signature that is verifiable and can be
17            authenticated and is attached to or made part of
18            the license will comply with this requirement;
19                (ii) a license agreement in which the customer
20            electronically accepts the terms by clicking "I
21            agree" does not comply with this requirement;
22            (B) it restricts the customer's duplication and
23        use of the software;
24            (C) it prohibits the customer from licensing,
25        sublicensing, or transferring the software to a third
26        party (except to a related party) without the

 

 

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1        permission and continued control of the licensor;
2            (D) the licensor has a policy of providing another
3        copy at minimal or no charge if the customer loses or
4        damages the software, or of permitting the licensee to
5        make and keep an archival copy, and such policy is
6        either stated in the license agreement, supported by
7        the licensor's books and records, or supported by a
8        notarized statement made under penalties of perjury by
9        the licensor; and
10            (E) the customer must destroy or return all copies
11        of the software to the licensor at the end of the
12        license period; this provision is deemed to be met, in
13        the case of a perpetual license, without being set
14        forth in the license agreement; and
15        (2) property that is subject to a tax on lease
16    receipts imposed by a home rule unit of local government
17    if the ordinance imposing that tax was adopted prior to
18    January 1, 2023.
19(Source: P.A. 103-9, Article 5, Section 5-10, eff. 6-7-23;
20103-9, Article 15, Section 15-10, eff. 6-7-23; 103-154, eff.
216-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,
22eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;
23103-781, eff. 8-5-24; 103-995, eff. 8-9-24; 104-417, eff.
248-15-25.)
 
25    (35 ILCS 110/3-10)

 

 

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1    Sec. 3-10. Rate of tax. Unless otherwise provided in this
2Section, the tax imposed by this Act is at the rate of 6.25% of
3the selling price of tangible personal property transferred,
4including, on and after January 1, 2025, transferred by lease,
5as an incident to the sale of service, but, for the purpose of
6computing this tax, in no event shall the selling price be less
7than the cost price of the property to the serviceman.
8    Beginning on July 1, 2000 and through December 31, 2000,
9with respect to motor fuel, as defined in Section 1.1 of the
10Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
11the Use Tax Act, the tax is imposed at the rate of 1.25%.
12    With respect to gasohol, as defined in the Use Tax Act, the
13tax imposed by this Act applies to (i) 70% of the selling price
14of property transferred as an incident to the sale of service
15on or after January 1, 1990, and before July 1, 2003, (ii) 80%
16of the selling price of property transferred as an incident to
17the sale of service on or after July 1, 2003 and on or before
18July 1, 2017, (iii) 100% of the selling price of property
19transferred as an incident to the sale of service after July 1,
202017 and before January 1, 2024, (iv) 90% of the selling price
21of property transferred as an incident to the sale of service
22on or after January 1, 2024 and on or before December 31, 2028,
23and (v) 100% of the selling price of property transferred as an
24incident to the sale of service after December 31, 2028. If, at
25any time, however, the tax under this Act on sales of gasohol,
26as defined in the Use Tax Act, is imposed at the rate of 1.25%,

 

 

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1then the tax imposed by this Act applies to 100% of the
2proceeds of sales of gasohol made during that time.
3    With respect to mid-range ethanol blends, as defined in
4Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
5applies to (i) 80% of the selling price of property
6transferred as an incident to the sale of service on or after
7January 1, 2024 and on or before December 31, 2028 and (ii)
8100% of the selling price of property transferred as an
9incident to the sale of service after December 31, 2028. If, at
10any time, however, the tax under this Act on sales of mid-range
11ethanol blends is imposed at the rate of 1.25%, then the tax
12imposed by this Act applies to 100% of the selling price of
13mid-range ethanol blends transferred as an incident to the
14sale of service during that time.
15    With respect to majority blended ethanol fuel, as defined
16in the Use Tax Act, the tax imposed by this Act does not apply
17to the selling price of property transferred as an incident to
18the sale of service on or after July 1, 2003 and on or before
19December 31, 2028 but applies to 100% of the selling price
20thereafter.
21    With respect to biodiesel blends, as defined in the Use
22Tax Act, with no less than 1% and no more than 10% biodiesel,
23the tax imposed by this Act applies to (i) 80% of the selling
24price of property transferred as an incident to the sale of
25service on or after July 1, 2003 and on or before December 31,
262018 and (ii) 100% of the proceeds of the selling price after

 

 

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1December 31, 2018 and before January 1, 2024. On and after
2January 1, 2024 and on or before December 31, 2030, the
3taxation of biodiesel, renewable diesel, and biodiesel blends
4shall be as provided in Section 3-5.1 of the Use Tax Act. If,
5at any time, however, the tax under this Act on sales of
6biodiesel blends, as defined in the Use Tax Act, with no less
7than 1% and no more than 10% biodiesel is imposed at the rate
8of 1.25%, then the tax imposed by this Act applies to 100% of
9the proceeds of sales of biodiesel blends with no less than 1%
10and no more than 10% biodiesel made during that time.
11    With respect to biodiesel, as defined in the Use Tax Act,
12and biodiesel blends, as defined in the Use Tax Act, with more
13than 10% but no more than 99% biodiesel, the tax imposed by
14this Act does not apply to the proceeds of the selling price of
15property transferred as an incident to the sale of service on
16or after July 1, 2003 and on or before December 31, 2023. On
17and after January 1, 2024 and on or before December 31, 2030,
18the taxation of biodiesel, renewable diesel, and biodiesel
19blends shall be as provided in Section 3-5.1 of the Use Tax
20Act.
21    At the election of any registered serviceman made for each
22fiscal year, for whom the aggregate annual cost price of
23tangible personal property transferred as an incident to the
24sales of service is less than 35%, or 75% in the case of
25servicemen transferring prescription drugs or servicemen
26engaged in graphic arts production, of the aggregate annual

 

 

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1total gross receipts from all sales of service, the tax
2imposed by this Act shall be based on the serviceman's cost
3price of the tangible personal property transferred as an
4incident to the sale of those services. This election may also
5be made by any serviceman maintaining a place of business in
6this State who makes retail sales from outside of this State to
7Illinois customers but is not required to be registered under
8Section 2a of the Retailers' Occupation Tax Act. Beginning
9January 1, 2026, this election shall not apply to any sale of
10service made through a marketplace that has met the threshold
11in subsection (b-5) of Section 2d of this Act.
12    Beginning January 1, 2026, the tax shall be imposed at the
13rate of 6.25% of 50% of the entire billing to the service
14customer for all sales of service made through a marketplace
15that has met the threshold in subsection (b-5) of Section 2d of
16this Act. In no event shall 50% of the entire billing be less
17than the cost price of the property to the marketplace
18serviceman or the marketplace facilitator on its own sales of
19service.
20    Until July 1, 2022 and from July 1, 2023 through December
2131, 2025, the tax shall be imposed at the rate of 1% on food
22prepared for immediate consumption and transferred incident to
23a sale of service subject to this Act or the Service Occupation
24Tax Act by an entity licensed under the Hospital Licensing
25Act, the Nursing Home Care Act, the Assisted Living and Shared
26Housing Act, the ID/DD Community Care Act, the MC/DD Act, the

 

 

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1Specialized Mental Health Rehabilitation Act of 2013, or the
2Child Care Act of 1969, or an entity that holds a permit issued
3pursuant to the Life Care Facilities Act. Until July 1, 2022
4and from July 1, 2023 through December 31, 2025, the tax shall
5also be imposed at the rate of 1% on food for human consumption
6that is to be consumed off the premises where it is sold (other
7than alcoholic beverages, food consisting of or infused with
8adult use cannabis, soft drinks, and food that has been
9prepared for immediate consumption and is not otherwise
10included in this paragraph).
11    Beginning on July 1, 2022 and until July 1, 2023, the tax
12shall be imposed at the rate of 0% on food prepared for
13immediate consumption and transferred incident to a sale of
14service subject to this Act or the Service Occupation Tax Act
15by an entity licensed under the Hospital Licensing Act, the
16Nursing Home Care Act, the Assisted Living and Shared Housing
17Act, the ID/DD Community Care Act, the MC/DD Act, the
18Specialized Mental Health Rehabilitation Act of 2013, or the
19Child Care Act of 1969, or an entity that holds a permit issued
20pursuant to the Life Care Facilities Act. Beginning on July 1,
212022 and until July 1, 2023, the tax shall also be imposed at
22the rate of 0% on food for human consumption that is to be
23consumed off the premises where it is sold (other than
24alcoholic beverages, food consisting of or infused with adult
25use cannabis, soft drinks, and food that has been prepared for
26immediate consumption and is not otherwise included in this

 

 

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1paragraph, and, beginning on November 12, 2026, food that is a
2final consumer hemp cannabinoid product as defined in the
3Illinois Hemp Act).
4    On and after January 1, 2026, food prepared for immediate
5consumption and transferred incident to a sale of service
6subject to this Act or the Service Occupation Tax Act by an
7entity licensed under the Hospital Licensing Act, the Nursing
8Home Care Act, the Assisted Living and Shared Housing Act, the
9ID/DD Community Care Act, the MC/DD Act, the Specialized
10Mental Health Rehabilitation Act of 2013, or the Child Care
11Act of 1969, or by an entity that holds a permit issued
12pursuant to the Life Care Facilities Act is exempt from the tax
13under this Act. On and after January 1, 2026, food for human
14consumption that is to be consumed off the premises where it is
15sold (other than alcoholic beverages, food consisting of or
16infused with adult use cannabis, soft drinks, candy, and food
17that has been prepared for immediate consumption and is not
18otherwise included in this paragraph) is exempt from the tax
19under this Act.
20    The tax shall be imposed at the rate of 1% on prescription
21and nonprescription medicines, drugs, medical appliances,
22products classified as Class III medical devices by the United
23States Food and Drug Administration that are used for cancer
24treatment pursuant to a prescription, as well as any
25accessories and components related to those devices,
26modifications to a motor vehicle for the purpose of rendering

 

 

10400SB3222ham002- 240 -LRB104 19119 BDA 38710 a

1it usable by a person with a disability, and insulin, blood
2sugar testing materials, syringes, and needles used by human
3diabetics. For the purposes of this Section, until September
41, 2009: the term "soft drinks" means any complete, finished,
5ready-to-use, non-alcoholic drink, whether carbonated or not,
6including, but not limited to, soda water, cola, fruit juice,
7vegetable juice, carbonated water, and all other preparations
8commonly known as soft drinks of whatever kind or description
9that are contained in any closed or sealed bottle, can,
10carton, or container, regardless of size; but "soft drinks"
11does not include coffee, tea, non-carbonated water, infant
12formula, milk or milk products as defined in the Grade A
13Pasteurized Milk and Milk Products Act, or drinks containing
1450% or more natural fruit or vegetable juice.
15    Notwithstanding any other provisions of this Act,
16beginning September 1, 2009, "soft drinks" means non-alcoholic
17beverages that contain natural or artificial sweeteners. "Soft
18drinks" does not include beverages that contain milk or milk
19products, soy, rice or similar milk substitutes, or greater
20than 50% of vegetable or fruit juice by volume.
21    Until August 1, 2009, and notwithstanding any other
22provisions of this Act, "food for human consumption that is to
23be consumed off the premises where it is sold" includes all
24food sold through a vending machine, except soft drinks and
25food products that are dispensed hot from a vending machine,
26regardless of the location of the vending machine. Beginning

 

 

10400SB3222ham002- 241 -LRB104 19119 BDA 38710 a

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

 

 

10400SB3222ham002- 242 -LRB104 19119 BDA 38710 a

1as required by 21 CFR 201.66. The "over-the-counter-drug"
2label includes:
3        (A) a "Drug Facts" panel; or
4        (B) a statement of the "active ingredient(s)" with a
5    list of those ingredients contained in the compound,
6    substance or preparation.
7    Beginning on January 1, 2014 (the effective date of Public
8Act 98-122), "prescription and nonprescription medicines and
9drugs" includes medical cannabis purchased from a registered
10dispensing organization under the Compassionate Use of Medical
11Cannabis Program Act.
12    Beginning 90 days after the effective date of this
13amendatory Act of the 104th General Assembly, "prescription
14and nonprescription medicines and drugs" includes cannabis or
15cannabis-infused products purchased by a qualified patient,
16provisional patient, designated caregiver, or Opioid
17Alternative Patient Program participant as part of that
18individual's adequate medical supply from any dispensary that
19has been issued a Medical Cannabis Dispensing Organization
20license, as these terms are defined under the Cannabis
21Regulation and Tax Act.    
22    Beginning on the November 12, 2026, "prescription and
23nonprescription medicines and drugs" does not include a final
24consumer hemp cannabinoid product as defined in the Illinois
25Hemp Act.    
26    As used in this Section, "adult use cannabis" means

 

 

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1cannabis subject to tax under the Cannabis Cultivation
2Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
3and does not include cannabis subject to tax under the
4Compassionate Use of Medical Cannabis Program Act.
5    Beginning 90 days after the effective date of this
6amendatory Act of the 104th General Assembly, as used in this
7Section, "adult use cannabis" does not include cannabis or
8cannabis-infused products purchased by a qualified patient,
9provisional patient, designated caregiver, or Opioid
10Alternative Patient Program participant as part of that
11individual's adequate medical supply from any dispensary that
12has been issued a Medical Cannabis Dispensing Organization
13license.    
14    If the property that is acquired from a serviceman is
15acquired outside Illinois and used outside Illinois before
16being brought to Illinois for use here and is taxable under
17this Act, the "selling price" on which the tax is computed
18shall be reduced by an amount that represents a reasonable
19allowance for depreciation for the period of prior
20out-of-state use. No depreciation is allowed in cases where
21the tax under this Act is imposed on lease receipts.
22(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
23103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-6, eff.
246-16-25; 104-417, eff. 8-15-25.)
 
25    Section 130. The Service Occupation Tax Act is amended by

 

 

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1changing Sections 3-5 and 3-10 as follows:
 
2    (35 ILCS 115/3-5)
3    Sec. 3-5. Exemptions. The following tangible personal
4property is exempt from the tax imposed by this Act:
5    (1) Personal property sold by a corporation, society,
6association, foundation, institution, or organization, other
7than a limited liability company, that is organized and
8operated as a not-for-profit service enterprise for the
9benefit of persons 65 years of age or older if the personal
10property was not purchased by the enterprise for the purpose
11of resale by the enterprise.
12    (2) Personal property purchased by a not-for-profit
13Illinois county fair association for use in conducting,
14operating, or promoting the county fair.
15    (3) Personal property purchased by any not-for-profit arts
16or cultural organization that establishes, by proof required
17by the Department by rule, that it has received an exemption
18under Section 501(c)(3) of the Internal Revenue Code and that
19is organized and operated primarily for the presentation or
20support of arts or cultural programming, activities, or
21services. These organizations include, but are not limited to,
22music and dramatic arts organizations such as symphony
23orchestras and theatrical groups, arts and cultural service
24organizations, local arts councils, visual arts organizations,
25and media arts organizations. On and after July 1, 2001 (the

 

 

10400SB3222ham002- 245 -LRB104 19119 BDA 38710 a

1effective date of Public Act 92-35), however, an entity
2otherwise eligible for this exemption shall not make tax-free
3purchases unless it has an active identification number issued
4by the Department.
5    (4) Legal tender, currency, medallions, or gold or silver
6coinage issued by the State of Illinois, the government of the
7United States of America, or the government of any foreign
8country, and bullion.
9    (5) Until July 1, 2003 and beginning again on September 1,
102004 through August 30, 2014, graphic arts machinery and
11equipment, including repair and replacement parts, both new
12and used, and including that manufactured on special order or
13purchased for lease, certified by the purchaser to be used
14primarily for graphic arts production. Equipment includes
15chemicals or chemicals acting as catalysts but only if the
16chemicals or chemicals acting as catalysts effect a direct and
17immediate change upon a graphic arts product. Beginning on
18July 1, 2017, graphic arts machinery and equipment is included
19in the manufacturing and assembling machinery and equipment
20exemption under Section 2 of this Act.
21    (6) Personal property sold by a teacher-sponsored student
22organization affiliated with an elementary or secondary school
23located in Illinois.
24    (7) Farm machinery and equipment, both new and used,
25including that manufactured on special order, certified by the
26purchaser to be used primarily for production agriculture or

 

 

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1State or federal agricultural programs, including individual
2replacement parts for the machinery and equipment, including
3machinery and equipment purchased for lease, and including
4implements of husbandry defined in Section 1-130 of the
5Illinois Vehicle Code, farm machinery and agricultural
6chemical and fertilizer spreaders, and nurse wagons required
7to be registered under Section 3-809 of the Illinois Vehicle
8Code, but excluding other motor vehicles required to be
9registered under the Illinois Vehicle Code. Horticultural
10polyhouses or hoop houses used for propagating, growing, or
11overwintering plants shall be considered farm machinery and
12equipment under this item (7). Agricultural chemical tender
13tanks and dry boxes shall include units sold separately from a
14motor vehicle required to be licensed and units sold mounted
15on a motor vehicle required to be licensed if the selling price
16of the tender is separately stated.
17    Farm machinery and equipment shall include precision
18farming equipment that is installed or purchased to be
19installed on farm machinery and equipment, including, but not
20limited to, tractors, harvesters, sprayers, planters, seeders,
21or spreaders. Precision farming equipment includes, but is not
22limited to, soil testing sensors, computers, monitors,
23software, global positioning and mapping systems, and other
24such equipment.
25    Farm machinery and equipment also includes computers,
26sensors, software, and related equipment used primarily in the

 

 

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1computer-assisted operation of production agriculture
2facilities, equipment, and activities such as, but not limited
3to, the collection, monitoring, and correlation of animal and
4crop data for the purpose of formulating animal diets and
5agricultural chemicals.
6    Beginning on January 1, 2024, farm machinery and equipment
7also includes electrical power generation equipment used
8primarily for production agriculture.
9    This item (7) is exempt from the provisions of Section
103-55.
11    (8) Until June 30, 2013, fuel and petroleum products sold
12to or used by an air common carrier, certified by the carrier
13to be used for consumption, shipment, or storage in the
14conduct of its business as an air common carrier, for a flight
15destined for or returning from a location or locations outside
16the United States without regard to previous or subsequent
17domestic stopovers.
18    Beginning July 1, 2013, fuel and petroleum products sold
19to or used by an air carrier, certified by the carrier to be
20used for consumption, shipment, or storage in the conduct of
21its business as an air common carrier, for a flight that (i) is
22engaged in foreign trade or is engaged in trade between the
23United States and any of its possessions and (ii) transports
24at least one individual or package for hire from the city of
25origination to the city of final destination on the same
26aircraft, without regard to a change in the flight number of

 

 

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1that aircraft.
2    (9) Proceeds of mandatory service charges separately
3stated on customers' bills for the purchase and consumption of
4food and beverages, to the extent that the proceeds of the
5service charge are in fact turned over as tips or as a
6substitute for tips to the employees who participate directly
7in preparing, serving, hosting or cleaning up the food or
8beverage function with respect to which the service charge is
9imposed.
10    (10) Until July 1, 2003, oil field exploration, drilling,
11and production equipment, including (i) rigs and parts of
12rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
13pipe and tubular goods, including casing and drill strings,
14(iii) pumps and pump-jack units, (iv) storage tanks and flow
15lines, (v) any individual replacement part for oil field
16exploration, drilling, and production equipment, and (vi)
17machinery and equipment purchased for lease; but excluding
18motor vehicles required to be registered under the Illinois
19Vehicle Code.
20    (11) Photoprocessing machinery and equipment, including
21repair and replacement parts, both new and used, including
22that manufactured on special order, certified by the purchaser
23to be used primarily for photoprocessing, and including
24photoprocessing machinery and equipment purchased for lease.
25    (12) Until July 1, 2028, coal and aggregate exploration,
26mining, off-highway hauling, processing, maintenance, and

 

 

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1reclamation equipment, including replacement parts and
2equipment, and including equipment purchased for lease, but
3excluding motor vehicles required to be registered under the
4Illinois Vehicle Code. The changes made to this Section by
5Public Act 97-767 apply on and after July 1, 2003, but no claim
6for credit or refund is allowed on or after August 16, 2013
7(the effective date of Public Act 98-456) for such taxes paid
8during the period beginning July 1, 2003 and ending on August
916, 2013 (the effective date of Public Act 98-456).
10    (13) Beginning January 1, 1992 and through June 30, 2016,
11food for human consumption that is to be consumed off the
12premises where it is sold (other than alcoholic beverages,
13soft drinks and food that has been prepared for immediate
14consumption) and prescription and non-prescription medicines,
15drugs, medical appliances, and insulin, urine testing
16materials, syringes, and needles used by diabetics, for human
17use, when purchased for use by a person receiving medical
18assistance under Article V of the Illinois Public Aid Code who
19resides in a licensed long-term care facility, as defined in
20the Nursing Home Care Act, or in a licensed facility as defined
21in the ID/DD Community Care Act, the MC/DD Act, or the
22Specialized Mental Health Rehabilitation Act of 2013.
23    (14) Semen used for artificial insemination of livestock
24for direct agricultural production.
25    (15) Horses, or interests in horses, registered with and
26meeting the requirements of any of the Arabian Horse Club

 

 

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1Registry of America, Appaloosa Horse Club, American Quarter
2Horse Association, United States Trotting Association, or
3Jockey Club, as appropriate, used for purposes of breeding or
4racing for prizes. This item (15) is exempt from the
5provisions of Section 3-55, and the exemption provided for
6under this item (15) applies for all periods beginning May 30,
71995, but no claim for credit or refund is allowed on or after
8January 1, 2008 (the effective date of Public Act 95-88) for
9such taxes paid during the period beginning May 30, 2000 and
10ending on January 1, 2008 (the effective date of Public Act
1195-88).
12    (16) Computers and communications equipment utilized for
13any hospital purpose and equipment used in the diagnosis,
14analysis, or treatment of hospital patients sold to a lessor
15who leases the equipment, under a lease of one year or longer
16executed or in effect at the time of the purchase, to a
17hospital that has been issued an active tax exemption
18identification number by the Department under Section 1g of
19the Retailers' Occupation Tax Act.
20    (17) Personal property sold to a lessor who leases the
21property, under a lease of one year or longer executed or in
22effect at the time of the purchase, to a governmental body that
23has been issued an active tax exemption identification number
24by the Department under Section 1g of the Retailers'
25Occupation Tax Act.
26    (18) Beginning with taxable years ending on or after

 

 

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1December 31, 1995 and ending with taxable years ending on or
2before December 31, 2004, personal property that is donated
3for disaster relief to be used in a State or federally declared
4disaster area in Illinois or bordering Illinois by a
5manufacturer or retailer that is registered in this State to a
6corporation, society, association, foundation, or institution
7that has been issued a sales tax exemption identification
8number by the Department that assists victims of the disaster
9who reside within the declared disaster area.
10    (19) Beginning with taxable years ending on or after
11December 31, 1995 and ending with taxable years ending on or
12before December 31, 2004, personal property that is used in
13the performance of infrastructure repairs in this State,
14including, but not limited to, municipal roads and streets,
15access roads, bridges, sidewalks, waste disposal systems,
16water and sewer line extensions, water distribution and
17purification facilities, storm water drainage and retention
18facilities, and sewage treatment facilities, resulting from a
19State or federally declared disaster in Illinois or bordering
20Illinois when such repairs are initiated on facilities located
21in the declared disaster area within 6 months after the
22disaster.
23    (20) Beginning July 1, 1999, game or game birds sold at a
24"game breeding and hunting preserve area" as that term is used
25in the Wildlife Code. This paragraph is exempt from the
26provisions of Section 3-55.

 

 

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1    (21) A motor vehicle, as that term is defined in Section
21-146 of the Illinois Vehicle Code, that is donated to a
3corporation, limited liability company, society, association,
4foundation, or institution that is determined by the
5Department to be organized and operated exclusively for
6educational purposes. For purposes of this exemption, "a
7corporation, limited liability company, society, association,
8foundation, or institution organized and operated exclusively
9for educational purposes" means all tax-supported public
10schools, private schools that offer systematic instruction in
11useful branches of learning by methods common to public
12schools and that compare favorably in their scope and
13intensity with the course of study presented in tax-supported
14schools, and vocational or technical schools or institutes
15organized and operated exclusively to provide a course of
16study of not less than 6 weeks duration and designed to prepare
17individuals to follow a trade or to pursue a manual,
18technical, mechanical, industrial, business, or commercial
19occupation.
20    (22) Beginning January 1, 2000, personal property,
21including food, purchased through fundraising events for the
22benefit of a public or private elementary or secondary school,
23a group of those schools, or one or more school districts if
24the events are sponsored by an entity recognized by the school
25district that consists primarily of volunteers and includes
26parents and teachers of the school children. This paragraph

 

 

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1does not apply to fundraising events (i) for the benefit of
2private home instruction or (ii) for which the fundraising
3entity purchases the personal property sold at the events from
4another individual or entity that sold the property for the
5purpose of resale by the fundraising entity and that profits
6from the sale to the fundraising entity. This paragraph is
7exempt from the provisions of Section 3-55.
8    (23) Beginning January 1, 2000 and through December 31,
92001, new or used automatic vending machines that prepare and
10serve hot food and beverages, including coffee, soup, and
11other items, and replacement parts for these machines.
12Beginning January 1, 2002 and through June 30, 2003, machines
13and parts for machines used in commercial, coin-operated
14amusement and vending business if a use or occupation tax is
15paid on the gross receipts derived from the use of the
16commercial, coin-operated amusement and vending machines. This
17paragraph is exempt from the provisions of Section 3-55.
18    (24) Beginning on August 2, 2001 (the effective date of
19Public Act 92-227), computers and communications equipment
20utilized for any hospital purpose and equipment used in the
21diagnosis, analysis, or treatment of hospital patients sold to
22a lessor who leases the equipment, under a lease of one year or
23longer executed or in effect at the time of the purchase, to a
24hospital that has been issued an active tax exemption
25identification number by the Department under Section 1g of
26the Retailers' Occupation Tax Act. This paragraph is exempt

 

 

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1from the provisions of Section 3-55.
2    (25) Beginning on August 2, 2001 (the effective date of
3Public Act 92-227), personal property sold to a lessor who
4leases the property, under a lease of one year or longer
5executed or in effect at the time of the purchase, to a
6governmental body that has been issued an active tax exemption
7identification number by the Department under Section 1g of
8the Retailers' Occupation Tax Act. This paragraph is exempt
9from the provisions of Section 3-55.
10    (26) Beginning on January 1, 2002 and through June 30,
112016, tangible personal property purchased from an Illinois
12retailer by a taxpayer engaged in centralized purchasing
13activities in Illinois who will, upon receipt of the property
14in Illinois, temporarily store the property in Illinois (i)
15for the purpose of subsequently transporting it outside this
16State for use or consumption thereafter solely outside this
17State or (ii) for the purpose of being processed, fabricated,
18or manufactured into, attached to, or incorporated into other
19tangible personal property to be transported outside this
20State and thereafter used or consumed solely outside this
21State. The Director of Revenue shall, pursuant to rules
22adopted in accordance with the Illinois Administrative
23Procedure Act, issue a permit to any taxpayer in good standing
24with the Department who is eligible for the exemption under
25this paragraph (26). The permit issued under this paragraph
26(26) shall authorize the holder, to the extent and in the

 

 

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1manner specified in the rules adopted under this Act, to
2purchase tangible personal property from a retailer exempt
3from the taxes imposed by this Act. Taxpayers shall maintain
4all necessary books and records to substantiate the use and
5consumption of all such tangible personal property outside of
6the State of Illinois.
7    (27) Beginning January 1, 2008, tangible personal property
8used in the construction or maintenance of a community water
9supply, as defined under Section 3.145 of the Environmental
10Protection Act, that is operated by a not-for-profit
11corporation that holds a valid water supply permit issued
12under Title IV of the Environmental Protection Act. This
13paragraph is exempt from the provisions of Section 3-55.
14    (28) Tangible personal property sold to a
15public-facilities corporation, as described in Section
1611-65-10 of the Illinois Municipal Code, for purposes of
17constructing or furnishing a municipal convention hall, but
18only if the legal title to the municipal convention hall is
19transferred to the municipality without any further
20consideration by or on behalf of the municipality at the time
21of the completion of the municipal convention hall or upon the
22retirement or redemption of any bonds or other debt
23instruments issued by the public-facilities corporation in
24connection with the development of the municipal convention
25hall. This exemption includes existing public-facilities
26corporations as provided in Section 11-65-25 of the Illinois

 

 

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1Municipal Code. This paragraph is exempt from the provisions
2of Section 3-55.
3    (29) Beginning January 1, 2010 and continuing through
4December 31, 2029, materials, parts, equipment, components,
5and furnishings incorporated into or upon an aircraft as part
6of the modification, refurbishment, completion, replacement,
7repair, or maintenance of the aircraft. This exemption
8includes consumable supplies used in the modification,
9refurbishment, completion, replacement, repair, and
10maintenance of aircraft. However, until January 1, 2024, this
11exemption excludes any materials, parts, equipment,
12components, and consumable supplies used in the modification,
13replacement, repair, and maintenance of aircraft engines or
14power plants, whether such engines or power plants are
15installed or uninstalled upon any such aircraft. "Consumable
16supplies" include, but are not limited to, adhesive, tape,
17sandpaper, general purpose lubricants, cleaning solution,
18latex gloves, and protective films.
19    Beginning January 1, 2010 and continuing through December
2031, 2023, this exemption applies only to the transfer of
21qualifying tangible personal property incident to the
22modification, refurbishment, completion, replacement, repair,
23or maintenance of an aircraft by persons who (i) hold an Air
24Agency Certificate and are empowered to operate an approved
25repair station by the Federal Aviation Administration, (ii)
26have a Class IV Rating, and (iii) conduct operations in

 

 

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1accordance with Part 145 of the Federal Aviation Regulations.
2The exemption does not include aircraft operated by a
3commercial air carrier providing scheduled passenger air
4service pursuant to authority issued under Part 121 or Part
5129 of the Federal Aviation Regulations. From January 1, 2024
6through December 31, 2029, this exemption applies only to the
7transfer of qualifying tangible personal property incident to:
8(A) the modification, refurbishment, completion, repair,
9replacement, or maintenance of an aircraft by persons who (i)
10hold an Air Agency Certificate and are empowered to operate an
11approved repair station by the Federal Aviation
12Administration, (ii) have a Class IV Rating, and (iii) conduct
13operations in accordance with Part 145 of the Federal Aviation
14Regulations; and (B) the modification, replacement, repair,
15and maintenance of aircraft engines or power plants without
16regard to whether or not those persons meet the qualifications
17of item (A).
18    The changes made to this paragraph (29) by Public Act
1998-534 are declarative of existing law. It is the intent of the
20General Assembly that the exemption under this paragraph (29)
21applies continuously from January 1, 2010 through December 31,
222024; however, no claim for credit or refund is allowed for
23taxes paid as a result of the disallowance of this exemption on
24or after January 1, 2015 and prior to February 5, 2020 (the
25effective date of Public Act 101-629).
26    (30) Beginning January 1, 2017 and through December 31,

 

 

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12026, menstrual pads, tampons, and menstrual cups.
2    (31) Tangible personal property transferred to a purchaser
3who is exempt from tax by operation of federal law. This
4paragraph is exempt from the provisions of Section 3-55.
5    (32) Qualified tangible personal property used in the
6construction or operation of a data center that has been
7granted a certificate of exemption by the Department of
8Commerce and Economic Opportunity, whether that tangible
9personal property is purchased by the owner, operator, or
10tenant of the data center or by a contractor or subcontractor
11of the owner, operator, or tenant. Data centers that would
12have qualified for a certificate of exemption prior to January
131, 2020 had Public Act 101-31 been in effect, may apply for and
14obtain an exemption for subsequent purchases of computer
15equipment or enabling software purchased or leased to upgrade,
16supplement, or replace computer equipment or enabling software
17purchased or leased in the original investment that would have
18qualified.
19    The Department of Commerce and Economic Opportunity shall
20grant a certificate of exemption under this item (32) to
21qualified data centers as defined by Section 605-1025 of the
22Department of Commerce and Economic Opportunity Law of the
23Civil Administrative Code of Illinois.
24    For the purposes of this item (32):
25        "Data center" means a building or a series of
26    buildings rehabilitated or constructed to house working

 

 

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1    servers in one physical location or multiple sites within
2    the State of Illinois.
3        "Qualified tangible personal property" means:
4    electrical systems and equipment; climate control and
5    chilling equipment and systems; mechanical systems and
6    equipment; monitoring and secure systems; emergency
7    generators; hardware; computers; servers; data storage
8    devices; network connectivity equipment; racks; cabinets;
9    telecommunications cabling infrastructure; raised floor
10    systems; peripheral components or systems; software;
11    mechanical, electrical, or plumbing systems; battery
12    systems; cooling systems and towers; temperature control
13    systems; other cabling; and other data center
14    infrastructure equipment and systems necessary to operate
15    qualified tangible personal property, including fixtures;
16    and component parts of any of the foregoing, including
17    installation, maintenance, repair, refurbishment, and
18    replacement of qualified tangible personal property to
19    generate, transform, transmit, distribute, or manage
20    electricity necessary to operate qualified tangible
21    personal property; and all other tangible personal
22    property that is essential to the operations of a computer
23    data center. The term "qualified tangible personal
24    property" also includes building materials physically
25    incorporated into the qualifying data center. To document
26    the exemption allowed under this Section, the retailer

 

 

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1    must obtain from the purchaser a copy of the certificate
2    of eligibility issued by the Department of Commerce and
3    Economic Opportunity.
4    This item (32) is exempt from the provisions of Section
53-55.
6    (33) Beginning July 1, 2022, breast pumps, breast pump
7collection and storage supplies, and breast pump kits. This
8item (33) is exempt from the provisions of Section 3-55. As
9used in this item (33):
10        "Breast pump" means an electrically controlled or
11    manually controlled pump device designed or marketed to be
12    used to express milk from a human breast during lactation,
13    including the pump device and any battery, AC adapter, or
14    other power supply unit that is used to power the pump
15    device and is packaged and sold with the pump device at the
16    time of sale.
17        "Breast pump collection and storage supplies" means
18    items of tangible personal property designed or marketed
19    to be used in conjunction with a breast pump to collect
20    milk expressed from a human breast and to store collected
21    milk until it is ready for consumption.
22        "Breast pump collection and storage supplies"
23    includes, but is not limited to: breast shields and breast
24    shield connectors; breast pump tubes and tubing adapters;
25    breast pump valves and membranes; backflow protectors and
26    backflow protector adaptors; bottles and bottle caps

 

 

10400SB3222ham002- 261 -LRB104 19119 BDA 38710 a

1    specific to the operation of the breast pump; and breast
2    milk storage bags.
3        "Breast pump collection and storage supplies" does not
4    include: (1) bottles and bottle caps not specific to the
5    operation of the breast pump; (2) breast pump travel bags
6    and other similar carrying accessories, including ice
7    packs, labels, and other similar products; (3) breast pump
8    cleaning supplies; (4) nursing bras, bra pads, breast
9    shells, and other similar products; and (5) creams,
10    ointments, and other similar products that relieve
11    breastfeeding-related symptoms or conditions of the
12    breasts or nipples, unless sold as part of a breast pump
13    kit that is pre-packaged by the breast pump manufacturer
14    or distributor.
15        "Breast pump kit" means a kit that: (1) contains no
16    more than a breast pump, breast pump collection and
17    storage supplies, a rechargeable battery for operating the
18    breast pump, a breastmilk cooler, bottle stands, ice
19    packs, and a breast pump carrying case; and (2) is
20    pre-packaged as a breast pump kit by the breast pump
21    manufacturer or distributor.
22    (34) Tangible personal property sold by or on behalf of
23the State Treasurer pursuant to the Revised Uniform Unclaimed
24Property Act. This item (34) is exempt from the provisions of
25Section 3-55.
26    (35) Beginning on January 1, 2024, tangible personal

 

 

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1property purchased by an active duty member of the armed
2forces of the United States who presents valid military
3identification and purchases the property using a form of
4payment where the federal government is the payor. The member
5of the armed forces must complete, at the point of sale, a form
6prescribed by the Department of Revenue documenting that the
7transaction is eligible for the exemption under this
8paragraph. Retailers must keep the form as documentation of
9the exemption in their records for a period of not less than 6
10years. "Armed forces of the United States" means the United
11States Army, Navy, Air Force, Space Force, Marine Corps, or
12Coast Guard. This paragraph is exempt from the provisions of
13Section 3-55.
14    (36) Beginning July 1, 2024, home-delivered meals provided
15to Medicare or Medicaid recipients when payment is made by an
16intermediary, such as a Medicare Administrative Contractor, a
17Managed Care Organization, or a Medicare Advantage
18Organization, pursuant to a government contract. This
19paragraph (36) is exempt from the provisions of Section 3-55.
20    (37) Beginning on January 1, 2026, as further defined in
21Section 3-10, food prepared for immediate consumption and
22transferred incident to a sale of service subject to this Act
23or the Service Use Tax Act by an entity licensed under the
24Hospital Licensing Act, the Nursing Home Care Act, the
25Assisted Living and Shared Housing Act, the ID/DD Community
26Care Act, the MC/DD Act, the Specialized Mental Health

 

 

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1Rehabilitation Act of 2013, or the Child Care Act of 1969 or by
2an entity that holds a permit issued pursuant to the Life Care
3Facilities Act. This item (37) is exempt from the provisions
4of Section 3-55.
5    (38) Beginning on January 1, 2026, as further defined in
6Section 3-10, food for human consumption that is to be
7consumed off the premises where it is sold (other than
8alcoholic beverages, food consisting of or infused with adult
9use cannabis, soft drinks, candy, and food that has been
10prepared for immediate consumption, and, beginning on November
1112, 2026, food that is a final consumer hemp cannabinoid
12product as defined in the Illinois Hemp Act). This item (38) is
13exempt from the provisions of Section 3-55.
14    (39) The lease of the following tangible personal
15property:
16        (1) computer software transferred subject to a license
17    that meets the following requirements:
18            (A) it is evidenced by a written agreement signed
19        by the licensor and the customer;
20                (i) an electronic agreement in which the
21            customer accepts the license by means of an
22            electronic signature that is verifiable and can be
23            authenticated and is attached to or made part of
24            the license will comply with this requirement;
25                (ii) a license agreement in which the customer
26            electronically accepts the terms by clicking "I

 

 

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1            agree" does not comply with this requirement;
2            (B) it restricts the customer's duplication and
3        use of the software;
4            (C) it prohibits the customer from licensing,
5        sublicensing, or transferring the software to a third
6        party (except to a related party) without the
7        permission and continued control of the licensor;
8            (D) the licensor has a policy of providing another
9        copy at minimal or no charge if the customer loses or
10        damages the software, or of permitting the licensee to
11        make and keep an archival copy, and such policy is
12        either stated in the license agreement, supported by
13        the licensor's books and records, or supported by a
14        notarized statement made under penalties of perjury by
15        the licensor; and
16            (E) the customer must destroy or return all copies
17        of the software to the licensor at the end of the
18        license period; this provision is deemed to be met, in
19        the case of a perpetual license, without being set
20        forth in the license agreement; and
21        (2) property that is subject to a tax on lease
22    receipts imposed by a home rule unit of local government
23    if the ordinance imposing that tax was adopted prior to
24    January 1, 2023.
25(Source: P.A. 103-9, Article 5, Section 5-15, eff. 6-7-23;
26103-9, Article 15, Section 15-15, eff. 6-7-23; 103-154, eff.

 

 

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16-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,
2eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;
3103-781, eff. 8-5-24; 103-995, eff. 8-9-24; 104-417, eff.
48-15-25.)
 
5    (35 ILCS 115/3-10)
6    Sec. 3-10. Rate of tax. Unless otherwise provided in this
7Section, the tax imposed by this Act is at the rate of 6.25% of
8the "selling price", as defined in Section 2 of the Service Use
9Tax Act, of the tangible personal property, including, on and
10after January 1, 2025, tangible personal property transferred
11by lease. For the purpose of computing this tax, in no event
12shall the "selling price" be less than the cost price to the
13serviceman of the tangible personal property transferred. The
14selling price of each item of tangible personal property
15transferred as an incident of a sale of service may be shown as
16a distinct and separate item on the serviceman's billing to
17the service customer. If the selling price is not so shown, the
18selling price of the tangible personal property is deemed to
19be 50% of the serviceman's entire billing to the service
20customer. When, however, a serviceman contracts to design,
21develop, and produce special order machinery or equipment, the
22tax imposed by this Act shall be based on the serviceman's cost
23price of the tangible personal property transferred incident
24to the completion of the contract.
25    Beginning on July 1, 2000 and through December 31, 2000,

 

 

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1with respect to motor fuel, as defined in Section 1.1 of the
2Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
3the Use Tax Act, the tax is imposed at the rate of 1.25%.
4    With respect to gasohol, as defined in the Use Tax Act, the
5tax imposed by this Act shall apply to (i) 70% of the cost
6price of property transferred as an incident to the sale of
7service on or after January 1, 1990, and before July 1, 2003,
8(ii) 80% of the selling price of property transferred as an
9incident to the sale of service on or after July 1, 2003 and on
10or before July 1, 2017, (iii) 100% of the selling price of
11property transferred as an incident to the sale of service
12after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
13the selling price of property transferred as an incident to
14the sale of service on or after January 1, 2024 and on or
15before December 31, 2028, and (v) 100% of the selling price of
16property transferred as an incident to the sale of service
17after December 31, 2028. If, at any time, however, the tax
18under this Act on sales of gasohol, as defined in the Use Tax
19Act, is imposed at the rate of 1.25%, then the tax imposed by
20this Act applies to 100% of the proceeds of sales of gasohol
21made during that time.
22    With respect to mid-range ethanol blends, as defined in
23Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
24applies to (i) 80% of the selling price of property
25transferred as an incident to the sale of service on or after
26January 1, 2024 and on or before December 31, 2028 and (ii)

 

 

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1100% of the selling price of property transferred as an
2incident to the sale of service after December 31, 2028. If, at
3any time, however, the tax under this Act on sales of mid-range
4ethanol blends is imposed at the rate of 1.25%, then the tax
5imposed by this Act applies to 100% of the selling price of
6mid-range ethanol blends transferred as an incident to the
7sale of service during that time.
8    With respect to majority blended ethanol fuel, as defined
9in the Use Tax Act, the tax imposed by this Act does not apply
10to the selling price of property transferred as an incident to
11the sale of service on or after July 1, 2003 and on or before
12December 31, 2028 but applies to 100% of the selling price
13thereafter.
14    With respect to biodiesel blends, as defined in the Use
15Tax Act, with no less than 1% and no more than 10% biodiesel,
16the tax imposed by this Act applies to (i) 80% of the selling
17price of property transferred as an incident to the sale of
18service on or after July 1, 2003 and on or before December 31,
192018 and (ii) 100% of the proceeds of the selling price after
20December 31, 2018 and before January 1, 2024. On and after
21January 1, 2024 and on or before December 31, 2030, the
22taxation of biodiesel, renewable diesel, and biodiesel blends
23shall be as provided in Section 3-5.1 of the Use Tax Act. If,
24at any time, however, the tax under this Act on sales of
25biodiesel blends, as defined in the Use Tax Act, with no less
26than 1% and no more than 10% biodiesel is imposed at the rate

 

 

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1of 1.25%, then the tax imposed by this Act applies to 100% of
2the proceeds of sales of biodiesel blends with no less than 1%
3and no more than 10% biodiesel made during that time.
4    With respect to biodiesel, as defined in the Use Tax Act,
5and biodiesel blends, as defined in the Use Tax Act, with more
6than 10% but no more than 99% biodiesel material, the tax
7imposed by this Act does not apply to the proceeds of the
8selling price of property transferred as an incident to the
9sale of service on or after July 1, 2003 and on or before
10December 31, 2023. On and after January 1, 2024 and on or
11before December 31, 2030, the taxation of biodiesel, renewable
12diesel, and biodiesel blends shall be as provided in Section
133-5.1 of the Use Tax Act.
14    At the election of any registered serviceman made for each
15fiscal year, for whom the aggregate annual cost price of
16tangible personal property transferred as an incident to the
17sales of service is less than 35%, or 75% in the case of
18servicemen transferring prescription drugs or servicemen
19engaged in graphic arts production, of the aggregate annual
20total gross receipts from all sales of service, the tax
21imposed by this Act shall be based on the serviceman's cost
22price of the tangible personal property transferred incident
23to the sale of those services. This election may also be made
24by a serviceman maintaining a place of business in this State
25who makes retail sales from outside of this State to Illinois
26customers but is not required to be registered under Section

 

 

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12a of the Retailers' Occupation Tax Act. Beginning January 1,
22026, this election shall not apply to any sale of service made
3through a marketplace that has met the threshold in subsection
4(d) of Section 3 of this Act.
5    Beginning January 1, 2026, the tax shall be imposed at the
6rate of 6.25% of 50% of the entire billing to the service
7customer for all sales of service made through a marketplace
8that has met the threshold in subsection (d) of Section 3 of
9this Act. In no event shall 50% of the entire billing be less
10than the cost price of the property to the marketplace
11serviceman or the marketplace facilitator on its own sales of
12service.
13    Until July 1, 2022 and from July 1, 2023 through December
1431, 2025, the tax shall be imposed at the rate of 1% on food
15prepared for immediate consumption and transferred incident to
16a sale of service subject to this Act or the Service Use Tax
17Act by an entity licensed under the Hospital Licensing Act,
18the Nursing Home Care Act, the Assisted Living and Shared
19Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
20Specialized Mental Health Rehabilitation Act of 2013, or the
21Child Care Act of 1969, or an entity that holds a permit issued
22pursuant to the Life Care Facilities Act. Until July 1, 2022
23and from July 1, 2023 through December 31, 2025, the tax shall
24also be imposed at the rate of 1% on food for human consumption
25that is to be consumed off the premises where it is sold (other
26than alcoholic beverages, food consisting of or infused with

 

 

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1adult use cannabis, soft drinks, and food that has been
2prepared for immediate consumption and is not otherwise
3included in this paragraph).
4    Beginning on July 1, 2022 and until July 1, 2023, the tax
5shall be imposed at the rate of 0% on food prepared for
6immediate consumption and transferred incident to a sale of
7service subject to this Act or the Service Use Tax Act by an
8entity licensed under the Hospital Licensing Act, the Nursing
9Home Care Act, the Assisted Living and Shared Housing Act, the
10ID/DD Community Care Act, the MC/DD Act, the Specialized
11Mental Health Rehabilitation Act of 2013, or the Child Care
12Act of 1969, or an entity that holds a permit issued pursuant
13to the Life Care Facilities Act. Beginning July 1, 2022 and
14until July 1, 2023, the tax shall also be imposed at the rate
15of 0% on food for human consumption that is to be consumed off
16the premises where it is sold (other than alcoholic beverages,
17food consisting of or infused with adult use cannabis, soft
18drinks, and food that has been prepared for immediate
19consumption and is not otherwise included in this paragraph).
20    On and after January 1, 2026, food prepared for immediate
21consumption and transferred incident to a sale of service
22subject to this Act or the Service Use Tax Act by an entity
23licensed under the Hospital Licensing Act, the Nursing Home
24Care Act, the Assisted Living and Shared Housing Act, the
25ID/DD Community Care Act, the MC/DD Act, the Specialized
26Mental Health Rehabilitation Act of 2013, or the Child Care

 

 

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1Act of 1969, or an entity that holds a permit issued pursuant
2to the Life Care Facilities Act is exempt from the tax imposed
3by this Act. On and after January 1, 2026, food for human
4consumption that is to be consumed off the premises where it is
5sold (other than alcoholic beverages, food consisting of or
6infused with adult use cannabis, soft drinks, candy, and food
7that has been prepared for immediate consumption and is not
8otherwise included in this paragraph, and, beginning on
9November 12, 2026, food that is a "final consumer hemp
10cannabinoid product" as defined in Illinois Hemp Act) is
11exempt from the tax imposed by this Act.
12    The tax shall be imposed at the rate of 1% on prescription
13and nonprescription medicines, drugs, medical appliances,
14products classified as Class III medical devices by the United
15States Food and Drug Administration that are used for cancer
16treatment pursuant to a prescription, as well as any
17accessories and components related to those devices,
18modifications to a motor vehicle for the purpose of rendering
19it usable by a person with a disability, and insulin, blood
20sugar testing materials, syringes, and needles used by human
21diabetics. For the purposes of this Section, until September
221, 2009: the term "soft drinks" means any complete, finished,
23ready-to-use, non-alcoholic drink, whether carbonated or not,
24including, but not limited to, soda water, cola, fruit juice,
25vegetable juice, carbonated water, and all other preparations
26commonly known as soft drinks of whatever kind or description

 

 

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1that are contained in any closed or sealed can, carton, or
2container, regardless of size; but "soft drinks" does not
3include coffee, tea, non-carbonated water, infant formula,
4milk or milk products as defined in the Grade A Pasteurized
5Milk and Milk Products Act, or drinks containing 50% or more
6natural fruit or vegetable juice.
7    Notwithstanding any other provisions of this Act,
8beginning September 1, 2009, "soft drinks" means non-alcoholic
9beverages that contain natural or artificial sweeteners. "Soft
10drinks" does not include beverages that contain milk or milk
11products, soy, rice or similar milk substitutes, or greater
12than 50% of vegetable or fruit juice by volume.
13    Until August 1, 2009, and notwithstanding any other
14provisions of this Act, "food for human consumption that is to
15be consumed off the premises where it is sold" includes all
16food sold through a vending machine, except soft drinks and
17food products that are dispensed hot from a vending machine,
18regardless of the location of the vending machine. Beginning
19August 1, 2009, and notwithstanding any other provisions of
20this Act, "food for human consumption that is to be consumed
21off the premises where it is sold" includes all food sold
22through a vending machine, except soft drinks, candy, and food
23products that are dispensed hot from a vending machine,
24regardless of the location of the vending machine.
25    Notwithstanding any other provisions of this Act,
26beginning September 1, 2009, "food for human consumption that

 

 

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1is to be consumed off the premises where it is sold" does not
2include candy. For purposes of this Section, "candy" means a
3preparation of sugar, honey, or other natural or artificial
4sweeteners in combination with chocolate, fruits, nuts or
5other ingredients or flavorings in the form of bars, drops, or
6pieces. "Candy" does not include any preparation that contains
7flour or requires refrigeration.
8    Notwithstanding any other provisions of this Act,
9beginning September 1, 2009, "nonprescription medicines and
10drugs" does not include grooming and hygiene products. For
11purposes of this Section, "grooming and hygiene products"
12includes, but is not limited to, soaps and cleaning solutions,
13shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
14lotions and screens, unless those products are available by
15prescription only, regardless of whether the products meet the
16definition of "over-the-counter-drugs". For the purposes of
17this paragraph, "over-the-counter-drug" means a drug for human
18use that contains a label that identifies the product as a drug
19as required by 21 CFR 201.66. The "over-the-counter-drug"
20label includes:
21        (A) a "Drug Facts" panel; or
22        (B) a statement of the "active ingredient(s)" with a
23    list of those ingredients contained in the compound,
24    substance or preparation.
25    Beginning on January 1, 2014 (the effective date of Public
26Act 98-122), "prescription and nonprescription medicines and

 

 

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1drugs" includes medical cannabis purchased from a registered
2dispensing organization under the Compassionate Use of Medical
3Cannabis Program Act.
4    Beginning 90 days after the effective date of this
5amendatory Act of the 104th General Assembly, "prescription
6and nonprescription medicines and drugs" includes cannabis or
7cannabis-infused products purchased by a qualified patient,
8provisional patient, designated caregiver, or Opioid
9Alternative Patient Program participant as part of that
10individual's adequate medical supply from any dispensary that
11has been issued a Medical Cannabis Dispensing Organization
12license, as these terms are defined under the Cannabis
13Regulation and Tax Act.
14    Beginning on November 12, 2026, "prescription and
15nonprescription medicines and drugs" does not include a final
16consumer hemp cannabinoid product as defined in the Illinois
17Hemp Act.    
18    As used in this Section, "adult use cannabis" means
19cannabis subject to tax under the Cannabis Cultivation
20Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
21and does not include cannabis subject to tax under the
22Compassionate Use of Medical Cannabis Program Act.
23    Beginning 90 days after the effective date of this
24amendatory Act of the 104th General Assembly, as used in this
25Section, "adult use cannabis" does not include cannabis or
26cannabis-infused products purchased by a qualified patient,

 

 

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1provisional patient, designated caregiver, or Opioid
2Alternative Patient Program participant as part of that
3individual's adequate medical supply from any dispensary that
4has been issued a Medical Cannabis Dispensing Organization
5license.    
6(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
7103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-6, eff.
86-16-25; 104-417, eff. 8-15-25.)
 
9    Section 140. The Retailers' Occupation Tax Act is amended
10by changing Sections 2-5, 2-10, and 11 as follows:
 
11    (35 ILCS 120/2-5)
12    Sec. 2-5. Exemptions. Gross receipts from proceeds from
13the sale, which, on and after January 1, 2025, includes the
14lease, of the following tangible personal property are exempt
15from the tax imposed by this Act:
16        (1) Farm chemicals.
17        (2) Farm machinery and equipment, both new and used,
18    including that manufactured on special order, certified by
19    the purchaser to be used primarily for production
20    agriculture or State or federal agricultural programs,
21    including individual replacement parts for the machinery
22    and equipment, including machinery and equipment purchased
23    for lease, and including implements of husbandry defined
24    in Section 1-130 of the Illinois Vehicle Code, farm

 

 

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1    machinery and agricultural chemical and fertilizer
2    spreaders, and nurse wagons required to be registered
3    under Section 3-809 of the Illinois Vehicle Code, but
4    excluding other motor vehicles required to be registered
5    under the Illinois Vehicle Code. Horticultural polyhouses
6    or hoop houses used for propagating, growing, or
7    overwintering plants shall be considered farm machinery
8    and equipment under this item (2). Agricultural chemical
9    tender tanks and dry boxes shall include units sold
10    separately from a motor vehicle required to be licensed
11    and units sold mounted on a motor vehicle required to be
12    licensed, if the selling price of the tender is separately
13    stated.
14        Farm machinery and equipment shall include precision
15    farming equipment that is installed or purchased to be
16    installed on farm machinery and equipment including, but
17    not limited to, tractors, harvesters, sprayers, planters,
18    seeders, or spreaders. Precision farming equipment
19    includes, but is not limited to, soil testing sensors,
20    computers, monitors, software, global positioning and
21    mapping systems, and other such equipment.
22        Farm machinery and equipment also includes computers,
23    sensors, software, and related equipment used primarily in
24    the computer-assisted operation of production agriculture
25    facilities, equipment, and activities such as, but not
26    limited to, the collection, monitoring, and correlation of

 

 

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1    animal and crop data for the purpose of formulating animal
2    diets and agricultural chemicals.
3        Beginning on January 1, 2024, farm machinery and
4    equipment also includes electrical power generation
5    equipment used primarily for production agriculture.
6        This item (2) is exempt from the provisions of Section
7    2-70.
8        (3) Until July 1, 2003, distillation machinery and
9    equipment, sold as a unit or kit, assembled or installed
10    by the retailer, certified by the user to be used only for
11    the production of ethyl alcohol that will be used for
12    consumption as motor fuel or as a component of motor fuel
13    for the personal use of the user, and not subject to sale
14    or resale.
15        (4) Until July 1, 2003 and beginning again September
16    1, 2004 through August 30, 2014, graphic arts machinery
17    and equipment, including repair and replacement parts,
18    both new and used, and including that manufactured on
19    special order or purchased for lease, certified by the
20    purchaser to be used primarily for graphic arts
21    production. Equipment includes chemicals or chemicals
22    acting as catalysts but only if the chemicals or chemicals
23    acting as catalysts effect a direct and immediate change
24    upon a graphic arts product. Beginning on July 1, 2017,
25    graphic arts machinery and equipment is included in the
26    manufacturing and assembling machinery and equipment

 

 

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1    exemption under paragraph (14).
2        (5) A motor vehicle that is used for automobile
3    renting, as defined in the Automobile Renting Occupation
4    and Use Tax Act. This paragraph is exempt from the
5    provisions of Section 2-70.
6        (6) Personal property sold by a teacher-sponsored
7    student organization affiliated with an elementary or
8    secondary school located in Illinois.
9        (7) Until July 1, 2003, proceeds of that portion of
10    the selling price of a passenger car the sale of which is
11    subject to the Replacement Vehicle Tax.
12        (8) Personal property sold to an Illinois county fair
13    association for use in conducting, operating, or promoting
14    the county fair.
15        (9) Personal property sold to a not-for-profit arts or
16    cultural organization that establishes, by proof required
17    by the Department by rule, that it has received an
18    exemption under Section 501(c)(3) of the Internal Revenue
19    Code and that is organized and operated primarily for the
20    presentation or support of arts or cultural programming,
21    activities, or services. These organizations include, but
22    are not limited to, music and dramatic arts organizations
23    such as symphony orchestras and theatrical groups, arts
24    and cultural service organizations, local arts councils,
25    visual arts organizations, and media arts organizations.
26    On and after July 1, 2001 (the effective date of Public Act

 

 

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1    92-35), however, an entity otherwise eligible for this
2    exemption shall not make tax-free purchases unless it has
3    an active identification number issued by the Department.
4        (10) Personal property sold by a corporation, society,
5    association, foundation, institution, or organization,
6    other than a limited liability company, that is organized
7    and operated as a not-for-profit service enterprise for
8    the benefit of persons 65 years of age or older if the
9    personal property was not purchased by the enterprise for
10    the purpose of resale by the enterprise.
11        (11) Except as otherwise provided in this Section,
12    personal property sold to a governmental body, to a
13    corporation, society, association, foundation, or
14    institution organized and operated exclusively for
15    charitable, religious, or educational purposes, or to a
16    not-for-profit corporation, society, association,
17    foundation, institution, or organization that has no
18    compensated officers or employees and that is organized
19    and operated primarily for the recreation of persons 55
20    years of age or older. A limited liability company may
21    qualify for the exemption under this paragraph only if the
22    limited liability company is organized and operated
23    exclusively for educational purposes. On and after July 1,
24    1987, however, no entity otherwise eligible for this
25    exemption shall make tax-free purchases unless it has an
26    active identification number issued by the Department.

 

 

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1        (12) (Blank).
2        (12-5) On and after July 1, 2003 and through June 30,
3    2004, motor vehicles of the second division with a gross
4    vehicle weight in excess of 8,000 pounds that are subject
5    to the commercial distribution fee imposed under Section
6    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
7    2004 and through June 30, 2005, the use in this State of
8    motor vehicles of the second division: (i) with a gross
9    vehicle weight rating in excess of 8,000 pounds; (ii) that
10    are subject to the commercial distribution fee imposed
11    under Section 3-815.1 of the Illinois Vehicle Code; and
12    (iii) that are primarily used for commercial purposes.
13    Through June 30, 2005, this exemption applies to repair
14    and replacement parts added after the initial purchase of
15    such a motor vehicle if that motor vehicle is used in a
16    manner that would qualify for the rolling stock exemption
17    otherwise provided for in this Act. For purposes of this
18    paragraph, "used for commercial purposes" means the
19    transportation of persons or property in furtherance of
20    any commercial or industrial enterprise whether for-hire
21    or not.
22        (13) Proceeds from sales to owners or lessors,
23    lessees, or shippers of tangible personal property that is
24    utilized by interstate carriers for hire for use as
25    rolling stock moving in interstate commerce and equipment
26    operated by a telecommunications provider, licensed as a

 

 

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1    common carrier by the Federal Communications Commission,
2    which is permanently installed in or affixed to aircraft
3    moving in interstate commerce.
4        (14) Machinery and equipment that will be used by the
5    purchaser, or a lessee of the purchaser, primarily in the
6    process of manufacturing or assembling tangible personal
7    property for wholesale or retail sale or lease, whether
8    the sale or lease is made directly by the manufacturer or
9    by some other person, whether the materials used in the
10    process are owned by the manufacturer or some other
11    person, or whether the sale or lease is made apart from or
12    as an incident to the seller's engaging in the service
13    occupation of producing machines, tools, dies, jigs,
14    patterns, gauges, or other similar items of no commercial
15    value on special order for a particular purchaser. The
16    exemption provided by this paragraph (14) does not include
17    machinery and equipment used in (i) the generation of
18    electricity for wholesale or retail sale; (ii) the
19    generation or treatment of natural or artificial gas for
20    wholesale or retail sale that is delivered to customers
21    through pipes, pipelines, or mains; or (iii) the treatment
22    of water for wholesale or retail sale that is delivered to
23    customers through pipes, pipelines, or mains. The
24    provisions of Public Act 98-583 are declaratory of
25    existing law as to the meaning and scope of this
26    exemption. Beginning on July 1, 2017, the exemption

 

 

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1    provided by this paragraph (14) includes, but is not
2    limited to, graphic arts machinery and equipment, as
3    defined in paragraph (4) of this Section.
4        (15) Proceeds of mandatory service charges separately
5    stated on customers' bills for purchase and consumption of
6    food and beverages, to the extent that the proceeds of the
7    service charge are in fact turned over as tips or as a
8    substitute for tips to the employees who participate
9    directly in preparing, serving, hosting or cleaning up the
10    food or beverage function with respect to which the
11    service charge is imposed.
12        (16) Tangible personal property sold to a purchaser if
13    the purchaser is exempt from use tax by operation of
14    federal law. This paragraph is exempt from the provisions
15    of Section 2-70.
16        (17) Tangible personal property sold to a common
17    carrier by rail or motor that receives the physical
18    possession of the property in Illinois and that transports
19    the property, or shares with another common carrier in the
20    transportation of the property, out of Illinois on a
21    standard uniform bill of lading showing the seller of the
22    property as the shipper or consignor of the property to a
23    destination outside Illinois, for use outside Illinois.
24        (18) Legal tender, currency, medallions, or gold or
25    silver coinage issued by the State of Illinois, the
26    government of the United States of America, or the

 

 

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1    government of any foreign country, and bullion.
2        (19) Until July 1, 2003, oil field exploration,
3    drilling, and production equipment, including (i) rigs and
4    parts of rigs, rotary rigs, cable tool rigs, and workover
5    rigs, (ii) pipe and tubular goods, including casing and
6    drill strings, (iii) pumps and pump-jack units, (iv)
7    storage tanks and flow lines, (v) any individual
8    replacement part for oil field exploration, drilling, and
9    production equipment, and (vi) machinery and equipment
10    purchased for lease; but excluding motor vehicles required
11    to be registered under the Illinois Vehicle Code.
12        (20) Photoprocessing machinery and equipment,
13    including repair and replacement parts, both new and used,
14    including that manufactured on special order, certified by
15    the purchaser to be used primarily for photoprocessing,
16    and including photoprocessing machinery and equipment
17    purchased for lease.
18        (21) Until July 1, 2028, coal and aggregate
19    exploration, mining, off-highway hauling, processing,
20    maintenance, and reclamation equipment, including
21    replacement parts and equipment, and including equipment
22    purchased for lease, but excluding motor vehicles required
23    to be registered under the Illinois Vehicle Code. The
24    changes made to this Section by Public Act 97-767 apply on
25    and after July 1, 2003, but no claim for credit or refund
26    is allowed on or after August 16, 2013 (the effective date

 

 

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1    of Public Act 98-456) for such taxes paid during the
2    period beginning July 1, 2003 and ending on August 16,
3    2013 (the effective date of Public Act 98-456).
4        (22) Until June 30, 2013, fuel and petroleum products
5    sold to or used by an air carrier, certified by the carrier
6    to be used for consumption, shipment, or storage in the
7    conduct of its business as an air common carrier, for a
8    flight destined for or returning from a location or
9    locations outside the United States without regard to
10    previous or subsequent domestic stopovers.
11        Beginning July 1, 2013, fuel and petroleum products
12    sold to or used by an air carrier, certified by the carrier
13    to be used for consumption, shipment, or storage in the
14    conduct of its business as an air common carrier, for a
15    flight that (i) is engaged in foreign trade or is engaged
16    in trade between the United States and any of its
17    possessions and (ii) transports at least one individual or
18    package for hire from the city of origination to the city
19    of final destination on the same aircraft, without regard
20    to a change in the flight number of that aircraft.
21        (23) A transaction in which the purchase order is
22    received by a florist who is located outside Illinois, but
23    who has a florist located in Illinois deliver the property
24    to the purchaser or the purchaser's donee in Illinois.
25        (24) Fuel consumed or used in the operation of ships,
26    barges, or vessels that are used primarily in or for the

 

 

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1    transportation of property or the conveyance of persons
2    for hire on rivers bordering on this State if the fuel is
3    delivered by the seller to the purchaser's barge, ship, or
4    vessel while it is afloat upon that bordering river.
5        (25) Except as provided in items (25-5) and (25-6) of
6    this Section, a motor vehicle sold in this State to a
7    nonresident even though the motor vehicle is delivered to
8    the nonresident in this State, if the motor vehicle is not
9    to be titled in this State, and if a drive-away permit is
10    issued to the motor vehicle as provided in Section 3-603
11    of the Illinois Vehicle Code or if the nonresident
12    purchaser has vehicle registration plates to transfer to
13    the motor vehicle upon returning to his or her home state.
14    The issuance of the drive-away permit or having the
15    out-of-state registration plates to be transferred is
16    prima facie evidence that the motor vehicle will not be
17    titled in this State.
18        (25-5) The exemption under item (25) does not apply if
19    the state in which the motor vehicle will be titled does
20    not allow a reciprocal exemption for a motor vehicle sold
21    and delivered in that state to an Illinois resident but
22    titled in Illinois. The tax collected under this Act on
23    the sale of a motor vehicle in this State to a resident of
24    another state that does not allow a reciprocal exemption
25    shall be imposed at a rate equal to the state's rate of tax
26    on taxable property in the state in which the purchaser is

 

 

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1    a resident, except that the tax shall not exceed the tax
2    that would otherwise be imposed under this Act. At the
3    time of the sale, the purchaser shall execute a statement,
4    signed under penalty of perjury, of his or her intent to
5    title the vehicle in the state in which the purchaser is a
6    resident within 30 days after the sale and of the fact of
7    the payment to the State of Illinois of tax in an amount
8    equivalent to the state's rate of tax on taxable property
9    in his or her state of residence and shall submit the
10    statement to the appropriate tax collection agency in his
11    or her state of residence. In addition, the retailer must
12    retain a signed copy of the statement in his or her
13    records. Nothing in this item shall be construed to
14    require the removal of the vehicle from this state
15    following the filing of an intent to title the vehicle in
16    the purchaser's state of residence if the purchaser titles
17    the vehicle in his or her state of residence within 30 days
18    after the date of sale. The tax collected under this Act in
19    accordance with this item (25-5) shall be proportionately
20    distributed as if the tax were collected at the 6.25%
21    general rate imposed under this Act.
22        (25-6) There is a rebuttable presumption that the
23    exemption under item (25) does not apply if the purchaser
24    is a limited liability company and a member of the limited
25    liability company is a resident of Illinois. This
26    presumption may be rebutted by other evidence, such as

 

 

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1    evidence the motor vehicle is insured at a garaging or
2    storage address outside Illinois or other evidence of the
3    physical address at which the motor vehicle will be
4    permanently stored or garaged outside Illinois.
5        (25-7) Beginning on July 1, 2007, no tax is imposed
6    under this Act on the sale of an aircraft, as defined in
7    Section 3 of the Illinois Aeronautics Act, if all of the
8    following conditions are met:
9            (1) the aircraft leaves this State within 15 days
10        after the later of either the issuance of the final
11        billing for the sale of the aircraft, or the
12        authorized approval for return to service, completion
13        of the maintenance record entry, and completion of the
14        test flight and ground test for inspection, as
15        required by 14 CFR 91.407;
16            (2) the aircraft is not based or registered in
17        this State after the sale of the aircraft; and
18            (3) the seller retains in his or her books and
19        records and provides to the Department a signed and
20        dated certification from the purchaser, on a form
21        prescribed by the Department, certifying that the
22        requirements of this item (25-7) are met. The
23        certificate must also include the name and address of
24        the purchaser, the address of the location where the
25        aircraft is to be titled or registered, the address of
26        the primary physical location of the aircraft, and

 

 

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1        other information that the Department may reasonably
2        require.
3        For purposes of this item (25-7):
4        "Based in this State" means hangared, stored, or
5    otherwise used, excluding post-sale customizations as
6    defined in this Section, for 10 or more days in each
7    12-month period immediately following the date of the sale
8    of the aircraft.
9        "Registered in this State" means an aircraft
10    registered with the Department of Transportation,
11    Aeronautics Division, or titled or registered with the
12    Federal Aviation Administration to an address located in
13    this State.
14        This paragraph (25-7) is exempt from the provisions of
15    Section 2-70.
16        (26) Semen used for artificial insemination of
17    livestock for direct agricultural production.
18        (27) Horses, or interests in horses, registered with
19    and meeting the requirements of any of the Arabian Horse
20    Club Registry of America, Appaloosa Horse Club, American
21    Quarter Horse Association, United States Trotting
22    Association, or Jockey Club, as appropriate, used for
23    purposes of breeding or racing for prizes. This item (27)
24    is exempt from the provisions of Section 2-70, and the
25    exemption provided for under this item (27) applies for
26    all periods beginning May 30, 1995, but no claim for

 

 

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1    credit or refund is allowed on or after January 1, 2008
2    (the effective date of Public Act 95-88) for such taxes
3    paid during the period beginning May 30, 2000 and ending
4    on January 1, 2008 (the effective date of Public Act
5    95-88).
6        (28) Computers and communications equipment utilized
7    for any hospital purpose and equipment used in the
8    diagnosis, analysis, or treatment of hospital patients
9    sold to a lessor who leases the equipment, under a lease of
10    one year or longer executed or in effect at the time of the
11    purchase, to a hospital that has been issued an active tax
12    exemption identification number by the Department under
13    Section 1g of this Act.
14        (29) Personal property sold to a lessor who leases the
15    property, under a lease of one year or longer executed or
16    in effect at the time of the purchase, to a governmental
17    body that has been issued an active tax exemption
18    identification number by the Department under Section 1g
19    of this Act.
20        (30) Beginning with taxable years ending on or after
21    December 31, 1995 and ending with taxable years ending on
22    or before December 31, 2004, personal property that is
23    donated for disaster relief to be used in a State or
24    federally declared disaster area in Illinois or bordering
25    Illinois by a manufacturer or retailer that is registered
26    in this State to a corporation, society, association,

 

 

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1    foundation, or institution that has been issued a sales
2    tax exemption identification number by the Department that
3    assists victims of the disaster who reside within the
4    declared disaster area.
5        (31) Beginning with taxable years ending on or after
6    December 31, 1995 and ending with taxable years ending on
7    or before December 31, 2004, personal property that is
8    used in the performance of infrastructure repairs in this
9    State, including, but not limited to, municipal roads and
10    streets, access roads, bridges, sidewalks, waste disposal
11    systems, water and sewer line extensions, water
12    distribution and purification facilities, storm water
13    drainage and retention facilities, and sewage treatment
14    facilities, resulting from a State or federally declared
15    disaster in Illinois or bordering Illinois when such
16    repairs are initiated on facilities located in the
17    declared disaster area within 6 months after the disaster.
18        (32) Beginning July 1, 1999, game or game birds sold
19    at a "game breeding and hunting preserve area" as that
20    term is used in the Wildlife Code. This paragraph is
21    exempt from the provisions of Section 2-70.
22        (33) A motor vehicle, as that term is defined in
23    Section 1-146 of the Illinois Vehicle Code, that is
24    donated to a corporation, limited liability company,
25    society, association, foundation, or institution that is
26    determined by the Department to be organized and operated

 

 

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1    exclusively for educational purposes. For purposes of this
2    exemption, "a corporation, limited liability company,
3    society, association, foundation, or institution organized
4    and operated exclusively for educational purposes" means
5    all tax-supported public schools, private schools that
6    offer systematic instruction in useful branches of
7    learning by methods common to public schools and that
8    compare favorably in their scope and intensity with the
9    course of study presented in tax-supported schools, and
10    vocational or technical schools or institutes organized
11    and operated exclusively to provide a course of study of
12    not less than 6 weeks duration and designed to prepare
13    individuals to follow a trade or to pursue a manual,
14    technical, mechanical, industrial, business, or commercial
15    occupation.
16        (34) Beginning January 1, 2000, personal property,
17    including food, purchased through fundraising events for
18    the benefit of a public or private elementary or secondary
19    school, a group of those schools, or one or more school
20    districts if the events are sponsored by an entity
21    recognized by the school district that consists primarily
22    of volunteers and includes parents and teachers of the
23    school children. This paragraph does not apply to
24    fundraising events (i) for the benefit of private home
25    instruction or (ii) for which the fundraising entity
26    purchases the personal property sold at the events from

 

 

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1    another individual or entity that sold the property for
2    the purpose of resale by the fundraising entity and that
3    profits from the sale to the fundraising entity. This
4    paragraph is exempt from the provisions of Section 2-70.
5        (35) Beginning January 1, 2000 and through December
6    31, 2001, new or used automatic vending machines that
7    prepare and serve hot food and beverages, including
8    coffee, soup, and other items, and replacement parts for
9    these machines. Beginning January 1, 2002 and through June
10    30, 2003, machines and parts for machines used in
11    commercial, coin-operated amusement and vending business
12    if a use or occupation tax is paid on the gross receipts
13    derived from the use of the commercial, coin-operated
14    amusement and vending machines. This paragraph is exempt
15    from the provisions of Section 2-70.
16        (35-5) Beginning August 23, 2001 and through June 30,
17    2016, food for human consumption that is to be consumed
18    off the premises where it is sold (other than alcoholic
19    beverages, soft drinks, and food that has been prepared
20    for immediate consumption) and prescription and
21    nonprescription medicines, drugs, medical appliances, and
22    insulin, urine testing materials, syringes, and needles
23    used by diabetics, for human use, when purchased for use
24    by a person receiving medical assistance under Article V
25    of the Illinois Public Aid Code who resides in a licensed
26    long-term care facility, as defined in the Nursing Home

 

 

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1    Care Act, or a licensed facility as defined in the ID/DD
2    Community Care Act, the MC/DD Act, or the Specialized
3    Mental Health Rehabilitation Act of 2013.
4        (36) Beginning August 2, 2001, computers and
5    communications equipment utilized for any hospital purpose
6    and equipment used in the diagnosis, analysis, or
7    treatment of hospital patients sold to a lessor who leases
8    the equipment, under a lease of one year or longer
9    executed or in effect at the time of the purchase, to a
10    hospital that has been issued an active tax exemption
11    identification number by the Department under Section 1g
12    of this Act. This paragraph is exempt from the provisions
13    of Section 2-70.
14        (37) Beginning August 2, 2001, personal property sold
15    to a lessor who leases the property, under a lease of one
16    year or longer executed or in effect at the time of the
17    purchase, to a governmental body that has been issued an
18    active tax exemption identification number by the
19    Department under Section 1g of this Act. This paragraph is
20    exempt from the provisions of Section 2-70.
21        (38) Beginning on January 1, 2002 and through June 30,
22    2016, tangible personal property purchased from an
23    Illinois retailer by a taxpayer engaged in centralized
24    purchasing activities in Illinois who will, upon receipt
25    of the property in Illinois, temporarily store the
26    property in Illinois (i) for the purpose of subsequently

 

 

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1    transporting it outside this State for use or consumption
2    thereafter solely outside this State or (ii) for the
3    purpose of being processed, fabricated, or manufactured
4    into, attached to, or incorporated into other tangible
5    personal property to be transported outside this State and
6    thereafter used or consumed solely outside this State. The
7    Director of Revenue shall, pursuant to rules adopted in
8    accordance with the Illinois Administrative Procedure Act,
9    issue a permit to any taxpayer in good standing with the
10    Department who is eligible for the exemption under this
11    paragraph (38). The permit issued under this paragraph
12    (38) shall authorize the holder, to the extent and in the
13    manner specified in the rules adopted under this Act, to
14    purchase tangible personal property from a retailer exempt
15    from the taxes imposed by this Act. Taxpayers shall
16    maintain all necessary books and records to substantiate
17    the use and consumption of all such tangible personal
18    property outside of the State of Illinois.
19        (39) Beginning January 1, 2008, tangible personal
20    property used in the construction or maintenance of a
21    community water supply, as defined under Section 3.145 of
22    the Environmental Protection Act, that is operated by a
23    not-for-profit corporation that holds a valid water supply
24    permit issued under Title IV of the Environmental
25    Protection Act. This paragraph is exempt from the
26    provisions of Section 2-70.

 

 

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1        (40) Beginning January 1, 2010 and continuing through
2    December 31, 2029, materials, parts, equipment,
3    components, and furnishings incorporated into or upon an
4    aircraft as part of the modification, refurbishment,
5    completion, replacement, repair, or maintenance of the
6    aircraft. This exemption includes consumable supplies used
7    in the modification, refurbishment, completion,
8    replacement, repair, and maintenance of aircraft. However,
9    until January 1, 2024, this exemption excludes any
10    materials, parts, equipment, components, and consumable
11    supplies used in the modification, replacement, repair,
12    and maintenance of aircraft engines or power plants,
13    whether such engines or power plants are installed or
14    uninstalled upon any such aircraft. "Consumable supplies"
15    include, but are not limited to, adhesive, tape,
16    sandpaper, general purpose lubricants, cleaning solution,
17    latex gloves, and protective films.
18        Beginning January 1, 2010 and continuing through
19    December 31, 2023, this exemption applies only to the sale
20    of qualifying tangible personal property to persons who
21    modify, refurbish, complete, replace, or maintain an
22    aircraft and who (i) hold an Air Agency Certificate and
23    are empowered to operate an approved repair station by the
24    Federal Aviation Administration, (ii) have a Class IV
25    Rating, and (iii) conduct operations in accordance with
26    Part 145 of the Federal Aviation Regulations. The

 

 

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1    exemption does not include aircraft operated by a
2    commercial air carrier providing scheduled passenger air
3    service pursuant to authority issued under Part 121 or
4    Part 129 of the Federal Aviation Regulations. From January
5    1, 2024 through December 31, 2029, this exemption applies
6    only to the sale of qualifying tangible personal property
7    to: (A) persons who modify, refurbish, complete, repair,
8    replace, or maintain aircraft and who (i) hold an Air
9    Agency Certificate and are empowered to operate an
10    approved repair station by the Federal Aviation
11    Administration, (ii) have a Class IV Rating, and (iii)
12    conduct operations in accordance with Part 145 of the
13    Federal Aviation Regulations; and (B) persons who engage
14    in the modification, replacement, repair, and maintenance
15    of aircraft engines or power plants without regard to
16    whether or not those persons meet the qualifications of
17    item (A).
18        The changes made to this paragraph (40) by Public Act
19    98-534 are declarative of existing law. It is the intent
20    of the General Assembly that the exemption under this
21    paragraph (40) applies continuously from January 1, 2010
22    through December 31, 2024; however, no claim for credit or
23    refund is allowed for taxes paid as a result of the
24    disallowance of this exemption on or after January 1, 2015
25    and prior to February 5, 2020 (the effective date of
26    Public Act 101-629).

 

 

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1        (41) Tangible personal property sold to a
2    public-facilities corporation, as described in Section
3    11-65-10 of the Illinois Municipal Code, for purposes of
4    constructing or furnishing a municipal convention hall,
5    but only if the legal title to the municipal convention
6    hall is transferred to the municipality without any
7    further consideration by or on behalf of the municipality
8    at the time of the completion of the municipal convention
9    hall or upon the retirement or redemption of any bonds or
10    other debt instruments issued by the public-facilities
11    corporation in connection with the development of the
12    municipal convention hall. This exemption includes
13    existing public-facilities corporations as provided in
14    Section 11-65-25 of the Illinois Municipal Code. This
15    paragraph is exempt from the provisions of Section 2-70.
16        (42) Beginning January 1, 2017 and through December
17    31, 2026, menstrual pads, tampons, and menstrual cups.
18        (43) Merchandise that is subject to the Rental
19    Purchase Agreement Occupation and Use Tax. The purchaser
20    must certify that the item is purchased to be rented
21    subject to a rental-purchase agreement, as defined in the
22    Rental-Purchase Agreement Act, and provide proof of
23    registration under the Rental Purchase Agreement
24    Occupation and Use Tax Act. This paragraph is exempt from
25    the provisions of Section 2-70.
26        (44) Qualified tangible personal property used in the

 

 

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1    construction or operation of a data center that has been
2    granted a certificate of exemption by the Department of
3    Commerce and Economic Opportunity, whether that tangible
4    personal property is purchased by the owner, operator, or
5    tenant of the data center or by a contractor or
6    subcontractor of the owner, operator, or tenant. Data
7    centers that would have qualified for a certificate of
8    exemption prior to January 1, 2020 had Public Act 101-31
9    been in effect, may apply for and obtain an exemption for
10    subsequent purchases of computer equipment or enabling
11    software purchased or leased to upgrade, supplement, or
12    replace computer equipment or enabling software purchased
13    or leased in the original investment that would have
14    qualified.
15        The Department of Commerce and Economic Opportunity
16    shall grant a certificate of exemption under this item
17    (44) to qualified data centers as defined by Section
18    605-1025 of the Department of Commerce and Economic
19    Opportunity Law of the Civil Administrative Code of
20    Illinois.
21        For the purposes of this item (44):
22            "Data center" means a building or a series of
23        buildings rehabilitated or constructed to house
24        working servers in one physical location or multiple
25        sites within the State of Illinois.
26            "Qualified tangible personal property" means:

 

 

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1        electrical systems and equipment; climate control and
2        chilling equipment and systems; mechanical systems and
3        equipment; monitoring and secure systems; emergency
4        generators; hardware; computers; servers; data storage
5        devices; network connectivity equipment; racks;
6        cabinets; telecommunications cabling infrastructure;
7        raised floor systems; peripheral components or
8        systems; software; mechanical, electrical, or plumbing
9        systems; battery systems; cooling systems and towers;
10        temperature control systems; other cabling; and other
11        data center infrastructure equipment and systems
12        necessary to operate qualified tangible personal
13        property, including fixtures; and component parts of
14        any of the foregoing, including installation,
15        maintenance, repair, refurbishment, and replacement of
16        qualified tangible personal property to generate,
17        transform, transmit, distribute, or manage electricity
18        necessary to operate qualified tangible personal
19        property; and all other tangible personal property
20        that is essential to the operations of a computer data
21        center. The term "qualified tangible personal
22        property" also includes building materials physically
23        incorporated into the qualifying data center. To
24        document the exemption allowed under this Section, the
25        retailer must obtain from the purchaser a copy of the
26        certificate of eligibility issued by the Department of

 

 

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1        Commerce and Economic Opportunity.
2        This item (44) is exempt from the provisions of
3    Section 2-70.
4        (45) Beginning January 1, 2020 and through December
5    31, 2020, sales of tangible personal property made by a
6    marketplace seller over a marketplace for which tax is due
7    under this Act but for which use tax has been collected and
8    remitted to the Department by a marketplace facilitator
9    under Section 2d of the Use Tax Act are exempt from tax
10    under this Act. A marketplace seller claiming this
11    exemption shall maintain books and records demonstrating
12    that the use tax on such sales has been collected and
13    remitted by a marketplace facilitator. Marketplace sellers
14    that have properly remitted tax under this Act on such
15    sales may file a claim for credit as provided in Section 6
16    of this Act. No claim is allowed, however, for such taxes
17    for which a credit or refund has been issued to the
18    marketplace facilitator under the Use Tax Act, or for
19    which the marketplace facilitator has filed a claim for
20    credit or refund under the Use Tax Act.
21        (46) Beginning July 1, 2022, breast pumps, breast pump
22    collection and storage supplies, and breast pump kits.
23    This item (46) is exempt from the provisions of Section
24    2-70. As used in this item (46):
25        "Breast pump" means an electrically controlled or
26    manually controlled pump device designed or marketed to be

 

 

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1    used to express milk from a human breast during lactation,
2    including the pump device and any battery, AC adapter, or
3    other power supply unit that is used to power the pump
4    device and is packaged and sold with the pump device at the
5    time of sale.
6        "Breast pump collection and storage supplies" means
7    items of tangible personal property designed or marketed
8    to be used in conjunction with a breast pump to collect
9    milk expressed from a human breast and to store collected
10    milk until it is ready for consumption.
11        "Breast pump collection and storage supplies"
12    includes, but is not limited to: breast shields and breast
13    shield connectors; breast pump tubes and tubing adapters;
14    breast pump valves and membranes; backflow protectors and
15    backflow protector adaptors; bottles and bottle caps
16    specific to the operation of the breast pump; and breast
17    milk storage bags.
18        "Breast pump collection and storage supplies" does not
19    include: (1) bottles and bottle caps not specific to the
20    operation of the breast pump; (2) breast pump travel bags
21    and other similar carrying accessories, including ice
22    packs, labels, and other similar products; (3) breast pump
23    cleaning supplies; (4) nursing bras, bra pads, breast
24    shells, and other similar products; and (5) creams,
25    ointments, and other similar products that relieve
26    breastfeeding-related symptoms or conditions of the

 

 

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1    breasts or nipples, unless sold as part of a breast pump
2    kit that is pre-packaged by the breast pump manufacturer
3    or distributor.
4        "Breast pump kit" means a kit that: (1) contains no
5    more than a breast pump, breast pump collection and
6    storage supplies, a rechargeable battery for operating the
7    breast pump, a breastmilk cooler, bottle stands, ice
8    packs, and a breast pump carrying case; and (2) is
9    pre-packaged as a breast pump kit by the breast pump
10    manufacturer or distributor.
11        (47) Tangible personal property sold by or on behalf
12    of the State Treasurer pursuant to the Revised Uniform
13    Unclaimed Property Act. This item (47) is exempt from the
14    provisions of Section 2-70.
15        (48) Beginning on January 1, 2024, tangible personal
16    property purchased by an active duty member of the armed
17    forces of the United States who presents valid military
18    identification and purchases the property using a form of
19    payment where the federal government is the payor. The
20    member of the armed forces must complete, at the point of
21    sale, a form prescribed by the Department of Revenue
22    documenting that the transaction is eligible for the
23    exemption under this paragraph. Retailers must keep the
24    form as documentation of the exemption in their records
25    for a period of not less than 6 years. "Armed forces of the
26    United States" means the United States Army, Navy, Air

 

 

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1    Force, Space Force, Marine Corps, or Coast Guard. This
2    paragraph is exempt from the provisions of Section 2-70.
3        (49) Beginning July 1, 2024, home-delivered meals
4    provided to Medicare or Medicaid recipients when payment
5    is made by an intermediary, such as a Medicare
6    Administrative Contractor, a Managed Care Organization, or
7    a Medicare Advantage Organization, pursuant to a
8    government contract. This paragraph (49) is exempt from
9    the provisions of Section 2-70.
10        (50) Beginning on January 1, 2026, as further defined
11    in Section 2-10, food for human consumption that is to be
12    consumed off the premises where it is sold (other than
13    alcoholic beverages, food consisting of or infused with
14    adult use cannabis, soft drinks, candy, and food that has
15    been prepared for immediate consumption, and, beginning on
16    November 12, 2026, food that is a final consumer hemp
17    cannabinoid product as defined in the Illinois Hemp Act).
18    This item (50) is exempt from the provisions of Section
19    2-70.
20        (51) Gross receipts from the lease of the following
21    tangible personal property:
22            (1) computer software transferred subject to a
23        license that meets the following requirements:
24                (A) it is evidenced by a written agreement
25            signed by the licensor and the customer;
26                    (i) an electronic agreement in which the

 

 

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1                customer accepts the license by means of an
2                electronic signature that is verifiable and
3                can be authenticated and is attached to or
4                made part of the license will comply with this
5                requirement;
6                    (ii) a license agreement in which the
7                customer electronically accepts the terms by
8                clicking "I agree" does not comply with this
9                requirement;
10                (B) it restricts the customer's duplication
11            and use of the software;
12                (C) it prohibits the customer from licensing,
13            sublicensing, or transferring the software to a
14            third party (except to a related party) without
15            the permission and continued control of the
16            licensor;
17                (D) the licensor has a policy of providing
18            another copy at minimal or no charge if the
19            customer loses or damages the software, or of
20            permitting the licensee to make and keep an
21            archival copy, and such policy is either stated in
22            the license agreement, supported by the licensor's
23            books and records, or supported by a notarized
24            statement made under penalties of perjury by the
25            licensor; and
26                (E) the customer must destroy or return all

 

 

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1            copies of the software to the licensor at the end
2            of the license period; this provision is deemed to
3            be met, in the case of a perpetual license,
4            without being set forth in the license agreement;
5            and
6            (2) property that is subject to a tax on lease
7        receipts imposed by a home rule unit of local
8        government if the ordinance imposing that tax was
9        adopted prior to January 1, 2023.
10(Source: P.A. 103-9, Article 5, Section 5-20, eff. 6-7-23;
11103-9, Article 15, Section 15-20, eff. 6-7-23; 103-154, eff.
126-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,
13eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;
14103-781, eff. 8-5-24; 103-995, eff. 8-9-24; 104-6, eff.
156-16-25; 104-417, eff. 8-15-25.)
 
16    (35 ILCS 120/2-10)  from Ch. 120, par. 441-10
17    Sec. 2-10. Rate of tax. Unless otherwise provided in this
18Section, the tax imposed by this Act is at the rate of 6.25% of
19gross receipts from sales, which, on and after January 1,
202025, includes leases, of tangible personal property made in
21the course of business.
22    Beginning on July 1, 2000 and through December 31, 2000,
23with respect to motor fuel, as defined in Section 1.1 of the
24Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
25the Use Tax Act, the tax is imposed at the rate of 1.25%.

 

 

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1    Beginning on August 6, 2010 through August 15, 2010, and
2beginning again on August 5, 2022 through August 14, 2022,
3with respect to sales tax holiday items as defined in Section
42-8 of this Act, the tax is imposed at the rate of 1.25%.
5    Within 14 days after July 1, 2000 (the effective date of
6Public Act 91-872), each retailer of motor fuel and gasohol
7shall cause the following notice to be posted in a prominently
8visible place on each retail dispensing device that is used to
9dispense motor fuel or gasohol in the State of Illinois: "As of
10July 1, 2000, the State of Illinois has eliminated the State's
11share of sales tax on motor fuel and gasohol through December
1231, 2000. The price on this pump should reflect the
13elimination of the tax." The notice shall be printed in bold
14print on a sign that is no smaller than 4 inches by 8 inches.
15The sign shall be clearly visible to customers. Any retailer
16who fails to post or maintain a required sign through December
1731, 2000 is guilty of a petty offense for which the fine shall
18be $500 per day per each retail premises where a violation
19occurs.
20    With respect to gasohol, as defined in the Use Tax Act, the
21tax imposed by this Act applies to (i) 70% of the proceeds of
22sales made on or after January 1, 1990, and before July 1,
232003, (ii) 80% of the proceeds of sales made on or after July
241, 2003 and on or before July 1, 2017, (iii) 100% of the
25proceeds of sales made after July 1, 2017 and prior to January
261, 2024, (iv) 90% of the proceeds of sales made on or after

 

 

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1January 1, 2024 and on or before December 31, 2028, and (v)
2100% of the proceeds of sales made after December 31, 2028. If,
3at any time, however, the tax under this Act on sales of
4gasohol, as defined in the Use Tax Act, is imposed at the rate
5of 1.25%, then the tax imposed by this Act applies to 100% of
6the proceeds of sales of gasohol made during that time.
7    With respect to mid-range ethanol blends, as defined in
8Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
9applies to (i) 80% of the proceeds of sales made on or after
10January 1, 2024 and on or before December 31, 2028 and (ii)
11100% of the proceeds of sales made after December 31, 2028. If,
12at any time, however, the tax under this Act on sales of
13mid-range ethanol blends is imposed at the rate of 1.25%, then
14the tax imposed by this Act applies to 100% of the proceeds of
15sales of mid-range ethanol blends made during that time.
16    With respect to majority blended ethanol fuel, as defined
17in the Use Tax Act, the tax imposed by this Act does not apply
18to the proceeds of sales made on or after July 1, 2003 and on
19or before December 31, 2028 but applies to 100% of the proceeds
20of sales made thereafter.
21    With respect to biodiesel blends, as defined in the Use
22Tax Act, with no less than 1% and no more than 10% biodiesel,
23the tax imposed by this Act applies to (i) 80% of the proceeds
24of sales made on or after July 1, 2003 and on or before
25December 31, 2018 and (ii) 100% of the proceeds of sales made
26after December 31, 2018 and before January 1, 2024. On and

 

 

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1after January 1, 2024 and on or before December 31, 2030, the
2taxation of biodiesel, renewable diesel, and biodiesel blends
3shall be as provided in Section 3-5.1 of the Use Tax Act. If,
4at any time, however, the tax under this Act on sales of
5biodiesel blends, as defined in the Use Tax Act, with no less
6than 1% and no more than 10% biodiesel is imposed at the rate
7of 1.25%, then the tax imposed by this Act applies to 100% of
8the proceeds of sales of biodiesel blends with no less than 1%
9and no more than 10% biodiesel made during that time.
10    With respect to biodiesel, as defined in the Use Tax Act,
11and biodiesel blends, as defined in the Use Tax Act, with more
12than 10% but no more than 99% biodiesel, the tax imposed by
13this Act does not apply to the proceeds of sales made on or
14after July 1, 2003 and on or before December 31, 2023. On and
15after January 1, 2024 and on or before December 31, 2030, the
16taxation of biodiesel, renewable diesel, and biodiesel blends
17shall be as provided in Section 3-5.1 of the Use Tax Act.
18    Until July 1, 2022 and from July 1, 2023 through December
1931, 2025, with respect to food for human consumption that is to
20be consumed off the premises where it is sold (other than
21alcoholic beverages, food consisting of or infused with adult
22use cannabis, soft drinks, and food that has been prepared for
23immediate consumption), the tax is imposed at the rate of 1%.
24Beginning July 1, 2022 and until July 1, 2023, with respect to
25food for human consumption that is to be consumed off the
26premises where it is sold (other than alcoholic beverages,

 

 

10400SB3222ham002- 309 -LRB104 19119 BDA 38710 a

1food consisting of or infused with adult use cannabis, soft
2drinks, and food that has been prepared for immediate
3consumption, and, beginning on November 12, 2026, food that is
4a final consumer hemp cannabinoid product as defined in the
5Illinois Hemp Act), the tax is imposed at the rate of 0%. On
6and after January 1, 2026, food for human consumption that is
7to be consumed off the premises where it is sold (other than
8alcoholic beverages, food consisting of or infused with adult
9use cannabis, soft drinks, candy, and food that has been
10prepared for immediate consumption) is exempt from the tax
11imposed by this Act.
12    With respect to prescription and nonprescription
13medicines, drugs, medical appliances, products classified as
14Class III medical devices by the United States Food and Drug
15Administration that are used for cancer treatment pursuant to
16a prescription, as well as any accessories and components
17related to those devices, modifications to a motor vehicle for
18the purpose of rendering it usable by a person with a
19disability, and insulin, blood sugar testing materials,
20syringes, and needles used by human diabetics, the tax is
21imposed at the rate of 1%. For the purposes of this Section,
22until September 1, 2009: the term "soft drinks" means any
23complete, finished, ready-to-use, non-alcoholic drink, whether
24carbonated or not, including, but not limited to, soda water,
25cola, fruit juice, vegetable juice, carbonated water, and all
26other preparations commonly known as soft drinks of whatever

 

 

10400SB3222ham002- 310 -LRB104 19119 BDA 38710 a

1kind or description that are contained in any closed or sealed
2bottle, can, carton, or container, regardless of size; but
3"soft drinks" does not include coffee, tea, non-carbonated
4water, infant formula, milk or milk products as defined in the
5Grade A Pasteurized Milk and Milk Products Act, or drinks
6containing 50% or more natural fruit or vegetable juice.
7    Notwithstanding any other provisions of this Act,
8beginning September 1, 2009, "soft drinks" means non-alcoholic
9beverages that contain natural or artificial sweeteners. "Soft
10drinks" does not include beverages that contain milk or milk
11products, soy, rice or similar milk substitutes, or greater
12than 50% of vegetable or fruit juice by volume.
13    Until August 1, 2009, and notwithstanding any other
14provisions of this Act, "food for human consumption that is to
15be consumed off the premises where it is sold" includes all
16food sold through a vending machine, except soft drinks and
17food products that are dispensed hot from a vending machine,
18regardless of the location of the vending machine. Beginning
19August 1, 2009, and notwithstanding any other provisions of
20this Act, "food for human consumption that is to be consumed
21off the premises where it is sold" includes all food sold
22through a vending machine, except soft drinks, candy, and food
23products that are dispensed hot from a vending machine,
24regardless of the location of the vending machine.
25    Notwithstanding any other provisions of this Act,
26beginning September 1, 2009, "food for human consumption that

 

 

10400SB3222ham002- 311 -LRB104 19119 BDA 38710 a

1is to be consumed off the premises where it is sold" does not
2include candy. For purposes of this Section, "candy" means a
3preparation of sugar, honey, or other natural or artificial
4sweeteners in combination with chocolate, fruits, nuts or
5other ingredients or flavorings in the form of bars, drops, or
6pieces. "Candy" does not include any preparation that contains
7flour or requires refrigeration.
8    Notwithstanding any other provisions of this Act,
9beginning September 1, 2009, "nonprescription medicines and
10drugs" does not include grooming and hygiene products. For
11purposes of this Section, "grooming and hygiene products"
12includes, but is not limited to, soaps and cleaning solutions,
13shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
14lotions and screens, unless those products are available by
15prescription only, regardless of whether the products meet the
16definition of "over-the-counter-drugs". For the purposes of
17this paragraph, "over-the-counter-drug" means a drug for human
18use that contains a label that identifies the product as a drug
19as required by 21 CFR 201.66. The "over-the-counter-drug"
20label includes:
21        (A) a "Drug Facts" panel; or
22        (B) a statement of the "active ingredient(s)" with a
23    list of those ingredients contained in the compound,
24    substance or preparation.
25    Beginning on January 1, 2014 (the effective date of Public
26Act 98-122), "prescription and nonprescription medicines and

 

 

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1drugs" includes medical cannabis purchased from a registered
2dispensing organization under the Compassionate Use of Medical
3Cannabis Program Act.
4    Beginning 90 days after the effective date of this
5amendatory Act of the 104th General Assembly, "prescription
6and nonprescription medicines and drugs" includes cannabis or
7cannabis-infused products purchased by a qualified patient,
8provisional patient, designated caregiver, or Opioid
9Alternative Patient Program participant as part of that
10individual's adequate medical supply from any dispensary that
11has been issued a Medical Cannabis Dispensing Organization
12license, as these terms are defined under the Cannabis
13Regulation and Tax Act.
14    Beginning on November 12, 2026, "prescription and
15nonprescription medicines and drugs" does not include a final
16consumer hemp cannabinoid product as defined in the Illinois
17Hemp Act.    
18    As used in this Section, "adult use cannabis" means
19cannabis subject to tax under the Cannabis Cultivation
20Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
21and does not include cannabis subject to tax under the
22Compassionate Use of Medical Cannabis Program Act.
23    Beginning 90 days after the effective date of this
24amendatory Act of the 104th General Assembly, as used in this
25Section, "adult use cannabis" does not include cannabis or
26cannabis-infused products purchased by a qualified patient,

 

 

10400SB3222ham002- 313 -LRB104 19119 BDA 38710 a

1provisional patient, designated caregiver, or Opioid
2Alternative Patient Program participant as part of that
3individual's adequate medical supply from any dispensary that
4has been issued a Medical Cannabis Dispensing Organization
5license.    
6(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
7103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-417, eff.
88-15-25.)
 
9    (35 ILCS 120/11)  (from Ch. 120, par. 450)
10    Sec. 11. All information received by the Department from
11returns filed under this Act, or from any investigation
12conducted under this Act, shall be confidential, except for
13official purposes, and any person, including a third party as
14defined in the Local Government Revenue Recapture Act, who
15divulges any such information in any manner, except in
16accordance with a proper judicial order or as otherwise
17provided by law, including the Local Government Revenue
18Recapture Act, shall be guilty of a Class B misdemeanor with a
19fine not to exceed $7,500.
20    Nothing in this Act prevents the Director of Revenue from
21publishing or making available to the public the names and
22addresses of persons filing returns under this Act, or
23reasonable statistics concerning the operation of the tax by
24grouping the contents of returns so the information in any
25individual return is not disclosed.

 

 

10400SB3222ham002- 314 -LRB104 19119 BDA 38710 a

1    Nothing in this Act prevents the Director of Revenue from
2divulging to the United States Government or the government of
3any other state, or any officer or agency thereof, for
4exclusively official purposes, information received by the
5Department in administering this Act, provided that such other
6governmental agency agrees to divulge requested tax
7information to the Department.
8    The Department's furnishing of information derived from a
9taxpayer's return or from an investigation conducted under
10this Act to the surety on a taxpayer's bond that has been
11furnished to the Department under this Act, either to provide
12notice to such surety of its potential liability under the
13bond or, in order to support the Department's demand for
14payment from such surety under the bond, is an official
15purpose within the meaning of this Section.
16    The furnishing upon request of information obtained by the
17Department from returns filed under this Act or investigations
18conducted under this Act to the Illinois Liquor Control
19Commission for official use is deemed to be an official
20purpose within the meaning of this Section.
21    Notice to a surety of potential liability shall not be
22given unless the taxpayer has first been notified, not less
23than 10 days prior thereto, of the Department's intent to so
24notify the surety.
25    The furnishing upon request of the Auditor General, or his
26authorized agents, for official use, of returns filed and

 

 

10400SB3222ham002- 315 -LRB104 19119 BDA 38710 a

1information related thereto under this Act is deemed to be an
2official purpose within the meaning of this Section.
3    Where an appeal or a protest has been filed on behalf of a
4taxpayer, the furnishing upon request of the attorney for the
5taxpayer of returns filed by the taxpayer and information
6related thereto under this Act is deemed to be an official
7purpose within the meaning of this Section.
8    The furnishing of financial information to a municipality
9or county, upon request of the chief executive officer
10thereof, is an official purpose within the meaning of this
11Section, provided the municipality or county agrees in writing
12to the requirements of this Section. Information provided to
13municipalities and counties under this paragraph shall be
14limited to: (1) the business name; (2) the business address;
15(3) the standard classification number assigned to the
16business; (4) net revenue distributed to the requesting
17municipality or county that is directly related to the
18requesting municipality's or county's local share of the
19proceeds under the Use Tax Act, the Service Use Tax Act, the
20Service Occupation Tax Act, and the Retailers' Occupation Tax
21Act distributed from the Local Government Tax Fund, and, if
22applicable, any locally imposed retailers' occupation tax or
23service occupation tax; and (5) a listing of all businesses
24within the requesting municipality or county by account
25identification number and address. On and after July 1, 2015,
26the furnishing of financial information to municipalities and

 

 

10400SB3222ham002- 316 -LRB104 19119 BDA 38710 a

1counties under this paragraph may be by electronic means. If
2the Department may furnish financial information to a
3municipality or county under this paragraph, then the chief
4executive officer of the municipality or county may, in turn,
5provide that financial information to a third party pursuant
6to the Local Government Revenue Recapture Act. However, the
7third party shall agree in writing to the requirements of this
8Section and meet the requirements of the Local Government
9Revenue Recapture Act.
10    Information so provided shall be subject to all
11confidentiality provisions of this Section. The written
12agreement shall provide for reciprocity, limitations on
13access, disclosure, and procedures for requesting information.
14For the purposes of furnishing financial information to a
15municipality or county under this Section, "chief executive
16officer" means the mayor of a city, the village board
17president of a village, the mayor or president of an
18incorporated town, the county executive of a county that has
19adopted the county executive form of government, the president
20of the board of commissioners of Cook County, or the
21chairperson of the county board or board of county
22commissioners of any other county.
23    The Department may make available to the Board of Trustees
24of any Metro East Mass Transit District information contained
25on transaction reporting returns required to be filed under
26Section 3 of this Act that report sales made within the

 

 

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1boundary of the taxing authority of that Metro East Mass
2Transit District, as provided in Section 5.01 of the Local
3Mass Transit District Act. The disclosure shall be made
4pursuant to a written agreement between the Department and the
5Board of Trustees of a Metro East Mass Transit District, which
6is an official purpose within the meaning of this Section. The
7written agreement between the Department and the Board of
8Trustees of a Metro East Mass Transit District shall provide
9for reciprocity, limitations on access, disclosure, and
10procedures for requesting information. Information so provided
11shall be subject to all confidentiality provisions of this
12Section.
13    The Director may make available to any State agency,
14including the Illinois Supreme Court, which licenses persons
15to engage in any occupation, information that a person
16licensed by such agency has failed to file returns under this
17Act or pay the tax, penalty and interest shown therein, or has
18failed to pay any final assessment of tax, penalty or interest
19due under this Act. The Director may make available to any
20State agency, including the Illinois Supreme Court,
21information regarding whether a bidder, contractor, or an
22affiliate of a bidder or contractor has failed to collect and
23remit Illinois Use tax on sales into Illinois, or any tax under
24this Act or pay the tax, penalty, and interest shown therein,
25or has failed to pay any final assessment of tax, penalty, or
26interest due under this Act, for the limited purpose of

 

 

10400SB3222ham002- 318 -LRB104 19119 BDA 38710 a

1enforcing bidder and contractor certifications. The Director
2may make available to units of local government and school
3districts that require bidder and contractor certifications,
4as set forth in Sections 50-11 and 50-12 of the Illinois
5Procurement Code, information regarding whether a bidder,
6contractor, or an affiliate of a bidder or contractor has
7failed to collect and remit Illinois Use tax on sales into
8Illinois, file returns under this Act, or pay the tax,
9penalty, and interest shown therein, or has failed to pay any
10final assessment of tax, penalty, or interest due under this
11Act, for the limited purpose of enforcing bidder and
12contractor certifications. For purposes of this Section, the
13term "affiliate" means any entity that (1) directly,
14indirectly, or constructively controls another entity, (2) is
15directly, indirectly, or constructively controlled by another
16entity, or (3) is subject to the control of a common entity.
17For purposes of this Section, an entity controls another
18entity if it owns, directly or individually, more than 10% of
19the voting securities of that entity. As used in this Section,
20the term "voting security" means a security that (1) confers
21upon the holder the right to vote for the election of members
22of the board of directors or similar governing body of the
23business or (2) is convertible into, or entitles the holder to
24receive upon its exercise, a security that confers such a
25right to vote. A general partnership interest is a voting
26security.

 

 

10400SB3222ham002- 319 -LRB104 19119 BDA 38710 a

1    The Director may make available to any State agency,
2including the Illinois Supreme Court, units of local
3government, and school districts, information regarding
4whether a bidder or contractor is an affiliate of a person who
5is not collecting and remitting Illinois Use taxes for the
6limited purpose of enforcing bidder and contractor
7certifications.
8    The Director may also make available to the Secretary of
9State information that a limited liability company, which has
10filed articles of organization with the Secretary of State, or
11corporation which has been issued a certificate of
12incorporation by the Secretary of State has failed to file
13returns under this Act or pay the tax, penalty and interest
14shown therein, or has failed to pay any final assessment of
15tax, penalty or interest due under this Act. An assessment is
16final when all proceedings in court for review of such
17assessment have terminated or the time for the taking thereof
18has expired without such proceedings being instituted.
19    It is an official purpose within the meaning of this
20Section for the Department to publicly report the aggregate
21amount of tax revenues from a given tax return type that the
22Department allocates from a State fund or State trust fund to
23each unit of local government, such as the amount of the
24monthly allocation to each unit of local government of
25Municipal Cannabis Retailers' Occupation Tax, County Cannabis
26Retailers' Occupation Tax, or Business District Occupation

 

 

10400SB3222ham002- 320 -LRB104 19119 BDA 38710 a

1Tax, notwithstanding that some units of local government may
2have as few as one retailer reporting revenues for a given tax
3return type in any given reporting period.    
4    The Director shall make available for public inspection in
5the Department's principal office and for publication, at
6cost, administrative decisions issued on or after January 1,
71995. These decisions are to be made available in a manner so
8that the following taxpayer information is not disclosed:
9        (1) The names, addresses, and identification numbers
10    of the taxpayer, related entities, and employees.
11        (2) At the sole discretion of the Director, trade
12    secrets or other confidential information identified as
13    such by the taxpayer, no later than 30 days after receipt
14    of an administrative decision, by such means as the
15    Department shall provide by rule.
16    The Director shall determine the appropriate extent of the
17deletions allowed in paragraph (2). In the event the taxpayer
18does not submit deletions, the Director shall make only the
19deletions specified in paragraph (1).
20    The Director shall make available for public inspection
21and publication an administrative decision within 180 days
22after the issuance of the administrative decision. The term
23"administrative decision" has the same meaning as defined in
24Section 3-101 of Article III of the Code of Civil Procedure.
25Costs collected under this Section shall be paid into the Tax
26Compliance and Administration Fund.

 

 

10400SB3222ham002- 321 -LRB104 19119 BDA 38710 a

1    Nothing contained in this Act shall prevent the Director
2from divulging information to any person pursuant to a request
3or authorization made by the taxpayer or by an authorized
4representative of the taxpayer.
5    The furnishing of information obtained by the Department
6from returns filed under Public Act 101-10 to the Department
7of Transportation for purposes of compliance with Public Act
8101-10 regarding aviation fuel is deemed to be an official
9purpose within the meaning of this Section.
10    The Director may make information available to the
11Secretary of State for the purpose of administering Section
125-901 of the Illinois Vehicle Code.
13(Source: P.A. 101-10, eff. 6-5-19; 101-628, eff. 6-1-20;
14102-558, eff. 8-20-21; 102-941, eff. 7-1-22.)
 
15    Section 155. The Compassionate Use of Medical Cannabis
16Program Act is amended by changing Sections 7, 7-15, 10, 15,
1725, 30, 35, 57, 60, 62, 70, 75, 85, 100, 105, 115, 120, 130,
18145, 150, 173, 195, 200, and 210 as follows:
 
19    (410 ILCS 130/7)
20    Sec. 7. Lawful user and lawful products. For the purposes
21of this Act and to clarify the legislative findings on the
22lawful use of cannabis:
23        (1) A cardholder under this Act shall not be
24    considered an unlawful user or addicted to narcotics

 

 

10400SB3222ham002- 322 -LRB104 19119 BDA 38710 a

1    solely as a result of his or her qualifying patient,
2    provisional patient, or designated caregiver, or Opioid
3    Alternative Patient Program participant status.
4        (2) All medical cannabis products purchased by a
5    qualifying patient, provisional patient, designated
6    caregiver, or Opioid Alternative Patient Program
7    participant at a licensed dispensing organization shall be
8    lawful products and a distinction shall be made between
9    medical and non-medical uses of cannabis as a result of
10    the qualifying patient's cardholder status, provisional
11    registration for qualifying patient cardholder status, or
12    participation in the Opioid Alternative Pilot Program
13    under the authorized use granted under State law.
14        (3) An individual with a provisional registration for
15    qualifying patient cardholder status, a qualifying patient
16    in the Compassionate Use of Medical Cannabis Program, or
17    an Opioid Alternative Patient Pilot Program participant
18    under Section 62 shall not be considered an unlawful user
19    or addicted to narcotics solely as a result of his or her
20    application to or participation in the program.
21(Source: P.A. 100-1114, eff. 8-28-18; 101-363, eff. 8-9-19.)
 
22    (410 ILCS 130/10)
23    Sec. 10. Definitions. The following terms, as used in this
24Act, shall have the meanings set forth in this Section:
25    (a) "Adequate medical supply" means 2.5 ounces of usable

 

 

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1cannabis during a period of 14 days that is derived solely from
2an intrastate source. Subject to the rules of the Department
3of Public Health, a patient may apply for a waiver in which a
4certifying health care professional provides a substantial
5medical basis in a signed, written statement asserting that,
6based on the patient's medical history, in the certifying
7health care professional's professional judgment, 2.5 ounces
8is an insufficient adequate medical supply for a 14-day period
9to properly alleviate the patient's debilitating medical
10condition or symptoms associated with the debilitating medical
11condition. This definition may not be construed to authorize
12the possession of more than 2.5 ounces at any time without
13authority from the Department of Public Health. The pre-mixed
14weight of medical cannabis used in making a cannabis-infused
15product shall apply toward the limit on the total amount of
16medical cannabis a registered qualifying patient may possess
17at any one time. :    
18        (1) 2.5 ounces of usable cannabis during a period of
19    14 days and that is derived solely from an intrastate
20    source.
21        (2) Subject to the rules of the Department of Public
22    Health, a patient may apply for a waiver where a
23    certifying health care professional provides a substantial
24    medical basis in a signed, written statement asserting
25    that, based on the patient's medical history, in the
26    certifying health care professional's professional

 

 

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1    judgment, 2.5 ounces is an insufficient adequate supply
2    for a 14-day period to properly alleviate the patient's
3    debilitating medical condition or symptoms associated with
4    the debilitating medical condition.
5        (3) This subsection may not be construed to authorize
6    the possession of more than 2.5 ounces at any time without
7    authority from the Department of Public Health.
8        (4) The pre-mixed weight of medical cannabis used in
9    making a cannabis infused product shall apply toward the
10    limit on the total amount of medical cannabis a registered
11    qualifying patient may possess at any one time.
12    (a-5) "Advanced practice registered nurse" means a person
13who is licensed under the Nurse Practice Act as an advanced
14practice registered nurse and has a controlled substances
15license under Article III of the Illinois Controlled
16Substances Act.
17    (a-10) "Bona fide health care professional-patient
18relationship" means a relationship in which the certifying
19health care professional has an ongoing responsibility for the
20assessment, care, and treatment of a patient's debilitating
21medical condition or a symptom of the patient's debilitating
22medical condition. A veteran who has received treatment at a
23VA hospital shall be deemed to have a bona fide health care
24professional-patient relationship with a VA certifying health
25care professional if the patient has been seen for his or her
26debilitating medical condition at the VA Hospital in

 

 

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1accordance with VA Hospital protocols. A bona fide health care
2professional-patient relationship under this subsection is a
3privileged communication within the meaning of Section 8-802
4of the Code of Civil Procedure.
5    (b) "Cannabis" has the same meaning given to that term in
6Section 1-10 3 of the Cannabis Regulation and Tax Control Act.
7    (c) "Cannabis plant monitoring system" means a system that
8includes, but is not limited to, testing and data collection
9established and maintained by the registered cultivation
10center and available to the Department for the purposes of
11documenting each cannabis plant and for monitoring plant
12development throughout the life cycle of a cannabis plant
13cultivated for the intended use by a qualifying patient from
14seed planting to final packaging.
15    (d) "Cardholder" means a qualifying patient, provisional
16patient, or a designated caregiver who has been issued and
17possesses a valid registry identification card by the
18Department of Public Health.
19    (d-5) "Certifying health care professional" means a
20physician, an advanced practice registered nurse, or a
21physician assistant.
22    (e) "Cultivation center" means a facility operated by an
23organization or business that is registered by the Department
24of Agriculture to perform necessary activities to provide only
25registered medical cannabis dispensing organizations with
26usable medical cannabis.

 

 

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1    (f) "Cultivation center agent" means a principal officer,
2board member, employee, or agent of a registered cultivation
3center who is 21 years of age or older and has not been
4convicted of an excluded offense.
5    (g) "Cultivation center agent identification card" means a
6document issued by the Department of Agriculture that
7identifies a person as a cultivation center agent.
8    (h) "Debilitating medical condition" means one or more of
9the following:
10        (1) cancer, glaucoma, positive status for human
11    immunodeficiency virus, acquired immune deficiency
12    syndrome, hepatitis C, amyotrophic lateral sclerosis,
13    Crohn's disease (including, but not limited to, ulcerative
14    colitis), agitation of Alzheimer's disease,
15    cachexia/wasting syndrome, muscular dystrophy, severe    
16    fibromyalgia, spinal cord disease, including but not
17    limited to arachnoiditis, Tarlov cysts, hydromyelia,
18    syringomyelia, Rheumatoid arthritis, fibrous dysplasia,
19    spinal cord injury, traumatic brain injury and
20    post-concussion syndrome, Multiple Sclerosis,
21    Arnold-Chiari malformation and Syringomyelia,
22    Spinocerebellar Ataxia (SCA), Parkinson's, Tourette's,
23    Myoclonus, Dystonia, Reflex Sympathetic Dystrophy, RSD
24    (Complex Regional Pain Syndromes Type I), Causalgia, CRPS
25    (Complex Regional Pain Syndromes Type II),
26    Neurofibromatosis, Chronic Inflammatory Demyelinating

 

 

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1    Polyneuropathy, Sjogren's syndrome, Lupus, Interstitial
2    Cystitis, Myasthenia Gravis, Hydrocephalus, nail-patella
3    syndrome, residual limb pain, seizures (including those
4    characteristic of epilepsy), post-traumatic stress
5    disorder (PTSD), autism, chronic pain, irritable bowel
6    syndrome, migraines, osteoarthritis, anorexia nervosa,
7    Ehlers-Danlos Syndrome, Neuro-Behcet's Autoimmune
8    Disease, neuropathy, polycystic kidney disease, superior
9    canal dehiscence syndrome, endometriosis, ovarian cysts,
10    uterine fibroids, female orgasmic disorder, or the
11    treatment of these conditions;
12        (1.5) terminal illness with a diagnosis of 6 months or
13    less; if the terminal illness is not one of the qualifying
14    debilitating medical conditions, then the certifying
15    health care professional shall on the certification form
16    identify the cause of the terminal illness; or
17        (2) any other debilitating medical condition or its
18    treatment that is added by the Department of Public Health
19    by rule as provided in Section 45.
20    (i) "Designated caregiver" means a person who: (1) is at
21least 21 years of age; (2) has agreed to assist with a
22patient's medical use of cannabis; (3) has not been convicted
23of an excluded offense; and (3) (4) assists no more than one
24registered qualifying patient with the patient's his or her    
25medical use of cannabis, except the parent or guardian of a
26registered qualifying patient may assist each of their

 

 

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1children who are registered qualifying patients.
2    (i-5) "Dispensing organization" or "dispensary" means a
3facility operated by an organization or business that is
4registered by the Department of Financial and Professional
5Regulation to acquire cannabis from a registered cultivation
6center for the purpose of dispensing cannabis, paraphernalia,
7or related supplies and educational materials to registered
8qualifying patients, individuals with a provisional
9registration for qualifying patient cardholder status, or an
10Opioid Alternative Patient Program participants, or, if also
11licensed under the Cannabis Regulation and Tax Act, purchasers
12over the age of 21.
13    (i-10) "Dispensing organization agent" means a principal
14officer, board member, employee, or agent of a registered
15medical cannabis dispensing organization who is 21 years of
16age or older.
17    (j) "Dispensing organization agent identification card"
18means a document issued by the Department of Financial and
19Professional Regulation that identifies a person as a medical
20cannabis dispensing organization agent.
21    (k) "Enclosed, locked facility" means a room, greenhouse,
22building, or other enclosed area equipped with locks or other
23security devices that permit access only by a cultivation
24center's agents or a dispensing organization's agent working
25for the registered cultivation center or the registered
26dispensing organization to cultivate, store, and distribute

 

 

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

 

 

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

 

 

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1provisional registration for qualifying patient cardholder
2status, or an Opioid Alternative Pilot Program participant.
3    (p) (Blank). "Medical cannabis dispensing organization
4agent" or "dispensing organization agent" means a principal
5officer, board member, employee, or agent of a registered
6medical cannabis dispensing organization who is 21 years of
7age or older and has not been convicted of an excluded offense.
8    (q) "Medical cannabis infused product" means food, oils,
9ointments, or other products containing usable cannabis that
10are not smoked.
11    (r) "Medical use" means the acquisition; administration;
12delivery; possession; transfer; transportation; or use of
13cannabis to treat or alleviate a registered qualifying
14patient's debilitating medical condition or symptoms
15associated with the patient's debilitating medical condition.
16    (r-5) "Opioid" means a narcotic drug or substance that is
17a Schedule II controlled substance under paragraph (1), (2),
18(3), or (5) of subsection (b) or under subsection (c) of
19Section 206 of the Illinois Controlled Substances Act.
20    (r-10) "Opioid Alternative Patient Pilot Program
21participant" means an individual who has received a valid
22written certification to participate in the Opioid Alternative
23Patient Pilot Program for a medical condition for which an
24opioid has been or could be prescribed by a certifying health
25care professional based on generally accepted standards of
26care.

 

 

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1    (s) "Physician" means a doctor of medicine or doctor of
2osteopathy licensed under the Medical Practice Act of 1987 to
3practice medicine and who has a controlled substances license
4under Article III of the Illinois Controlled Substances Act.
5It does not include a licensed practitioner under any other
6Act including but not limited to the Illinois Dental Practice
7Act.
8    (s-1) "Physician assistant" means a physician assistant
9licensed under the Physician Assistant Practice Act of 1987
10and who has a controlled substances license under Article III
11of the Illinois Controlled Substances Act.
12    (s-2) "Provisional patient" means a qualifying patient who
13has received a provisional registration from the Department of
14Public Health.    
15    (s-5) "Provisional registration" means a document issued
16by the Department of Public Health to a qualifying patient who
17has submitted: (1) an online application and paid a fee to
18participate in Compassionate Use of Medical Cannabis Program
19pending approval or denial of the patient's application; or
20(2) a completed application for terminal illness.
21    (t) "Qualifying patient" or "registered qualifying
22patient" means a person who has been diagnosed by a certifying
23health care professional as having a debilitating medical
24condition.
25    (u) "Registered" means licensed, permitted, or otherwise
26certified by the Department of Agriculture, Department of

 

 

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1Public Health, or Department of Financial and Professional
2Regulation.
3    (v) "Registry identification card" means a document issued
4by the Department of Public Health that identifies a person as
5a registered qualifying patient, provisional patient, or
6registered designated caregiver.
7    (w) "Usable cannabis" means the seeds, leaves, buds, and
8flowers of the cannabis plant and any mixture or preparation
9thereof, but does not include the stalks, and roots of the
10plant. It does not include the weight of any non-cannabis
11ingredients combined with cannabis, such as ingredients added
12to prepare a topical administration, food, or drink.
13    (x) "Verification system" means a Web-based system
14established and maintained by the Department of Public Health
15that is available to the Department of Agriculture, the
16Department of Financial and Professional Regulation, law
17enforcement personnel, and registered medical cannabis
18dispensing organization agents on a 24-hour basis for the
19verification of registry identification cards, the tracking of
20delivery of medical cannabis to medical cannabis dispensing
21organizations, and the tracking of the date of sale, amount,
22and price of medical cannabis purchased by a registered
23qualifying patient.
24    (y) "Written certification" means a document dated and
25signed by a certifying health care professional, stating (1)
26that the qualifying patient has a debilitating medical

 

 

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1condition and specifying the debilitating medical condition
2the qualifying patient has; and (2) that (A) the certifying
3health care professional is treating or managing treatment of
4the patient's debilitating medical condition; or (B) an Opioid
5Alternative Patient Pilot Program participant has a medical
6condition for which opioids have been or could be prescribed.
7A written certification shall be made only in the course of a
8bona fide health care professional-patient relationship, after
9the certifying health care professional has completed an
10assessment of either a qualifying patient's medical history or
11Opioid Alternative Patient Pilot Program participant, reviewed
12relevant records related to the patient's debilitating
13condition, and conducted a physical examination.
14    (z) (Blank). "Bona fide health care professional-patient
15relationship" means a relationship established at a hospital,
16certifying health care professional's office, or other health
17care facility in which the certifying health care professional
18has an ongoing responsibility for the assessment, care, and
19treatment of a patient's debilitating medical condition or a
20symptom of the patient's debilitating medical condition.    
21    A veteran who has received treatment at a VA hospital
22shall be deemed to have a bona fide health care
23professional-patient relationship with a VA certifying health
24care professional if the patient has been seen for his or her
25debilitating medical condition at the VA Hospital in
26accordance with VA Hospital protocols.

 

 

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1    A bona fide health care professional-patient relationship
2under this subsection is a privileged communication within the
3meaning of Section 8-802 of the Code of Civil Procedure.    
4(Source: P.A. 100-1114, eff. 8-28-18; 101-363, eff. 8-9-19.)
 
5    (410 ILCS 130/15)
6    Sec. 15. Authority.
7    (a) It is the duty of the Department of Public Health to
8enforce the following provisions of this Act unless otherwise
9provided for by this Act:
10        (1) establish and maintain a confidential registry of
11    qualifying patients authorized to engage in the medical
12    use of cannabis and their caregivers;
13        (2) distribute educational materials about the health
14    benefits and risks associated with the use of cannabis and
15    prescription medications;
16        (3) adopt rules to administer the patient and
17    caregiver registration program; and
18        (4) adopt rules establishing food handling
19    requirements for cannabis-infused products that are
20    prepared for human consumption.
21    (b) It is the duty of the Department of Agriculture to
22enforce the provisions of this Act relating to the
23registration and oversight of cultivation centers unless
24otherwise provided for in this Act.
25    (c) It is the duty of the Department of Financial and

 

 

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1Professional Regulation to enforce the provisions of this Act
2relating to the registration and oversight of dispensing
3organizations unless otherwise provided for in this Act.
4    (d) The Department of Public Health, the Department of
5Agriculture, or the Department of Financial and Professional
6Regulation shall enter into intergovernmental agreements, as
7necessary, to carry out the provisions of this Act including,
8but not limited to, the provisions relating to the
9registration and oversight of cultivation centers, dispensing
10organizations, and qualifying patients and caregivers.
11Beginning January 1, 2027, the Department of Public Health may
12enter into intergovernmental agreements, as necessary, to
13carry out the provisions of this Act, including, but not
14limited to, the provisions relating to qualifying patients and
15caregivers.    
16    (e) The Department of Public Health, the Department of
17Agriculture, or the Department of Financial and Professional
18Regulation may suspend, revoke, or impose other penalties upon
19a registration for violations of this Act and any rules
20adopted in accordance thereto. The suspension or revocation
21of, or imposition of any other penalty upon, a registration is
22a final Agency action, subject to judicial review.
23Jurisdiction and venue for judicial review are vested in the
24Circuit Court.
25(Source: P.A. 98-122, eff. 1-1-14; 98-1172, eff. 1-12-15;
2699-519, eff. 6-30-16.)
 

 

 

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1    (410 ILCS 130/25)
2    Sec. 25. Immunities and presumptions related to the
3medical use of cannabis.
4    (a) A registered qualifying patient is not subject to
5arrest, prosecution, or denial of any right or privilege,
6including, but not limited to, civil penalty or disciplinary
7action by an occupational or professional licensing board, for
8the medical use of cannabis in accordance with this Act, if the
9registered qualifying patient possesses an amount of cannabis
10that does not exceed an adequate medical supply as defined in
11subsection (a) of Section 10 of this Act of usable cannabis
12and, where the registered qualifying patient is a licensed
13professional, the use of cannabis does not impair that
14licensed professional when he or she is engaged in the
15practice of the profession for which he or she is licensed.
16    (b) A registered designated caregiver is not subject to
17arrest, prosecution, or denial of any right or privilege,
18including, but not limited to, civil penalty or disciplinary
19action by an occupational or professional licensing board, for
20acting in accordance with this Act to assist a registered
21qualifying patient to whom he or she is connected through the
22Department's registration process with the medical use of
23cannabis if the designated caregiver possesses an amount of
24cannabis that does not exceed an adequate medical supply as
25defined in subsection (a) of Section 10 of this Act of usable

 

 

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1cannabis. A school nurse or school administrator is not
2subject to arrest, prosecution, or denial of any right or
3privilege, including, but not limited to, a civil penalty, for
4acting in accordance with Section 22-33 of the School Code
5relating to administering or assisting a student in
6self-administering a medical cannabis infused product. The
7total amount possessed between the qualifying patient and
8caregiver shall not exceed the patient's adequate supply as
9defined in subsection (a) of Section 10 of this Act.
10    (c) A registered qualifying patient, or registered
11designated caregiver, or Opioid Alternative Patient Program
12participant is not subject to arrest, prosecution, or denial
13of any right or privilege, including, but not limited to,
14civil penalty or disciplinary action by an occupational or
15professional licensing board for possession of cannabis that
16is incidental to medical use, but is not usable cannabis as
17defined in this Act.
18    (d)(1) There is a rebuttable presumption that a registered
19qualifying patient is engaged in, or a designated caregiver is
20assisting with, the medical use of cannabis in accordance with
21this Act if the qualifying patient or designated caregiver:
22        (A) is in possession of a valid registry
23    identification card; and
24        (B) is in possession of an amount of cannabis that
25    does not exceed the amount allowed under subsection (a) of
26    Section 10.

 

 

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1    (2) The presumption may be rebutted by evidence that
2conduct related to cannabis was not for the purpose of
3treating or alleviating the qualifying patient's debilitating
4medical condition or symptoms associated with the debilitating
5medical condition in compliance with this Act.
6    (e) A certifying health care professional is not subject
7to arrest, prosecution, or penalty in any manner, or denial of
8any right or privilege, including, but not limited to, civil
9penalty or disciplinary action by the Medical Disciplinary
10Board or by any other occupational or professional licensing
11board, solely for providing written certifications or for
12otherwise stating that, in the certifying health care
13professional's professional opinion, a patient is likely to
14receive therapeutic or palliative benefit from the medical use
15of cannabis to treat or alleviate the patient's debilitating
16medical condition or symptoms associated with the debilitating
17medical condition, provided that nothing shall prevent a
18professional licensing or disciplinary board from sanctioning
19a certifying health care professional for: (1) issuing a
20written certification to a patient who is not under the
21certifying health care professional's care for a debilitating
22medical condition; or (2) failing to properly evaluate a
23patient's medical condition or otherwise violating the
24standard of care for evaluating medical conditions.
25    (f) No person may be subject to arrest, prosecution, or
26denial of any right or privilege, including, but not limited

 

 

10400SB3222ham002- 340 -LRB104 19119 BDA 38710 a

1to, civil penalty or disciplinary action by an occupational or
2professional licensing board, solely for: (1) selling cannabis
3paraphernalia to a cardholder upon presentation of an
4unexpired registry identification card in the recipient's name
5or Opioid Alternative Patient Program participant upon
6verification of certification, if employed and registered as a
7dispensing agent by a registered dispensing organization; (2)
8being in the presence or vicinity of the medical use of
9cannabis as allowed under this Act; or (3) assisting a
10registered qualifying patient with the act of administering
11cannabis.
12    (g) A registered cultivation center is not subject to
13prosecution; search or inspection, except by the Department of
14Agriculture, Department of Public Health, or State or local
15law enforcement under Section 130; seizure; or penalty in any
16manner, or denial of any right or privilege, including, but
17not limited to, civil penalty or disciplinary action by a
18business licensing board or entity, for acting under this Act
19and Department of Agriculture rules to: acquire, possess,
20cultivate, manufacture, deliver, transfer, transport, supply,
21or sell cannabis to registered dispensing organizations.
22    (h) A registered cultivation center agent is not subject
23to prosecution, search, or penalty in any manner, or denial of
24any right or privilege, including, but not limited to, civil
25penalty or disciplinary action by a business licensing board
26or entity, for working or volunteering for a registered

 

 

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1cannabis cultivation center under this Act and Department of
2Agriculture rules, including to perform the actions listed
3under subsection (g).
4    (i) A registered dispensing organization is not subject to
5prosecution; search or inspection, except by the Department of
6Financial and Professional Regulation or State or local law
7enforcement pursuant to Section 130; seizure; or penalty in
8any manner, or denial of any right or privilege, including,
9but not limited to, civil penalty or disciplinary action by a
10business licensing board or entity, for acting under this Act
11and Department of Financial and Professional Regulation rules
12to: acquire, possess, or dispense cannabis, or related
13supplies, and educational materials to registered qualifying
14patients or registered designated caregivers on behalf of
15registered qualifying patients.
16    (j) A registered dispensing organization agent is not
17subject to prosecution, search, or penalty in any manner, or
18denial of any right or privilege, including, but not limited
19to, civil penalty or disciplinary action by a business
20licensing board or entity, for working or volunteering for a
21dispensing organization under this Act and Department of
22Financial and Professional Regulation rules, including to
23perform the actions listed under subsection (i).
24    (k) Any cannabis, cannabis paraphernalia, illegal
25property, or interest in legal property that is possessed,
26owned, or used in connection with the medical use of cannabis

 

 

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1as allowed under this Act, or acts incidental to that use, may
2not be seized or forfeited. This Act does not prevent the
3seizure or forfeiture of cannabis exceeding the amounts
4allowed under this Act or the Cannabis Regulation and Tax Act,
5nor shall it prevent seizure or forfeiture if the basis for the
6action is unrelated to the cannabis that is possessed,
7manufactured, transferred, or used under this Act or the
8Cannabis Regulation and Tax Act.
9    (l) Mere possession of, or application for, a registry
10identification card or registration certificate does not
11constitute probable cause or reasonable suspicion, nor shall
12it be used as the sole basis to support the search of the
13person, property, or home of the person possessing or applying
14for the registry identification card. The possession of, or
15application for, a registry identification card does not
16preclude the existence of probable cause if probable cause
17exists on other grounds.
18    (m) Nothing in this Act shall preclude local or State law
19enforcement agencies from searching a registered cultivation
20center where there is probable cause to believe that the
21criminal laws of this State have been violated and the search
22is conducted in conformity with the Illinois Constitution, the
23Constitution of the United States, and all State statutes.
24    (n) Nothing in this Act shall preclude local or State law
25enforcement agencies from searching a registered dispensing
26organization where there is probable cause to believe that the

 

 

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1criminal laws of this State have been violated and the search
2is conducted in conformity with the Illinois Constitution, the
3Constitution of the United States, and all State statutes.
4    (o) No individual employed by the State of Illinois shall
5be subject to criminal or civil penalties for taking any
6action in accordance with the provisions of this Act, when the
7actions are within the scope of his or her employment.
8Representation and indemnification of State employees shall be
9provided to State employees as set forth in Section 2 of the
10State Employee Indemnification Act.
11    (p) No law enforcement or correctional agency, nor any
12individual employed by a law enforcement or correctional
13agency, shall be subject to criminal or civil liability,
14except for willful and wanton misconduct, as a result of
15taking any action within the scope of the official duties of
16the agency or individual to prohibit or prevent the possession
17or use of cannabis by a cardholder or Opioid Alternative
18Patient Program participant incarcerated at a correctional
19facility, jail, or municipal lockup facility, on parole or
20mandatory supervised release, or otherwise under the lawful
21jurisdiction of the agency or individual.
22(Source: P.A. 101-363, eff. 8-19-19; 101-370, eff. 1-1-20;
23102-558, eff. 8-20-21.)
 
24    (410 ILCS 130/30)
25    Sec. 30. Limitations and penalties.

 

 

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1    (a) This Act does not permit any person to engage in, and
2does not prevent the imposition of any civil, criminal, or
3other penalties for engaging in, the following conduct:
4        (1) Undertaking any task under the influence of
5    cannabis, when doing so would constitute negligence,
6    professional malpractice, or professional misconduct;
7        (2) Possessing cannabis:
8            (A) except as provided under Section 22-33 of the
9        School Code, in a school bus;
10            (B) except as provided under Section 22-33 of the
11        School Code, on the grounds of any preschool or
12        primary or secondary school;
13            (C) in any correctional facility;
14            (D) in a vehicle under Section 11-502.1 of the
15        Illinois Vehicle Code;
16            (E) in a vehicle not open to the public unless the
17        medical cannabis is in a reasonably secured, sealed
18        container and reasonably inaccessible while the
19        vehicle is moving; or
20            (F) in a private residence that is used at any time
21        to provide licensed child care or other similar social
22        service care on the premises;
23        (3) Using cannabis:
24            (A) except as provided under Section 22-33 of the
25        School Code, in a school bus;
26            (B) except as provided under Section 22-33 of the

 

 

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1        School Code, on the grounds of any preschool or
2        primary or secondary school;
3            (C) in any correctional facility;
4            (D) in any motor vehicle;
5            (E) in a private residence that is used at any time
6        to provide licensed child care or other similar social
7        service care on the premises;
8            (F) except as provided under Section 22-33 of the
9        School Code and Section 31 of this Act, in any public
10        place. "Public place" as used in this subsection means
11        any place where an individual could reasonably be
12        expected to be observed by others. A "public place"
13        includes all parts of buildings owned in whole or in
14        part, or leased, by the State or a local unit of
15        government. A "public place" does not include a
16        private residence unless the private residence is used
17        to provide licensed child care, foster care, or other
18        similar social service care on the premises. For
19        purposes of this subsection, a "public place" does not
20        include a health care facility. For purposes of this
21        Section, a "health care facility" includes, but is not
22        limited to, hospitals, nursing homes, hospice care
23        centers, and long-term care facilities;
24            (G) except as provided under Section 22-33 of the
25        School Code and Section 31 of this Act, knowingly in
26        close physical proximity to anyone under the age of 18

 

 

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1        years of age;
2        (4) Smoking medical cannabis in any public place where
3    an individual could reasonably be expected to be observed
4    by others, in a health care facility, or any other place
5    where smoking is prohibited under the Smoke Free Illinois
6    Act;
7        (5) Operating, navigating, or being in actual physical
8    control of any motor vehicle, aircraft, or motorboat while
9    using or under the influence of cannabis in violation of
10    Sections 11-501 and 11-502.1 of the Illinois Vehicle Code;
11        (6) Using or possessing cannabis if that person does
12    not have a debilitating medical condition and is not a
13    registered qualifying patient or caregiver;
14        (7) Allowing any person who is not allowed to use
15    cannabis under this Act to use cannabis that a cardholder
16    is allowed to possess under this Act;
17        (8) Transferring cannabis to any person contrary to
18    the provisions of this Act;
19        (9) The use of medical cannabis by an active duty law
20    enforcement officer, correctional officer, correctional
21    probation officer, or firefighter; or
22        (10) The use of medical cannabis by a person who has a
23    school bus permit or a Commercial Driver's License.
24    (b) Nothing in this Act shall be construed to prevent the
25arrest or prosecution of a registered qualifying patient for
26reckless driving or driving under the influence of cannabis

 

 

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1where probable cause exists.
2    (c) Notwithstanding any other criminal penalties related
3to the unlawful possession of cannabis, knowingly making a
4misrepresentation to a law enforcement official of any fact or
5circumstance relating to the medical use of cannabis to avoid
6arrest or prosecution is a petty offense punishable by a fine
7of up to $1,000, which shall be in addition to any other
8penalties that may apply for making a false statement or for
9the use of cannabis other than use undertaken under this Act.
10    (d) Notwithstanding any other criminal penalties related
11to the unlawful possession of cannabis, any person who makes a
12misrepresentation of a medical condition to a certifying
13health care professional or fraudulently provides material
14misinformation to a certifying health care professional in
15order to obtain a written certification is guilty of a petty
16offense punishable by a fine of up to $1,000.
17    (e) Any registered qualifying patient, provisional
18patient, designated cardholder or registered caregiver, or
19Opioid Alternative Patient Program participant who sells
20cannabis shall have his or her registry identification card
21revoked and is subject to other penalties for the unauthorized
22sale of cannabis.
23    (f) Any registered qualifying patient, provisional
24patient, or Opioid Alternative Patient Program participant who
25commits a violation of Section 11-502.1 of the Illinois
26Vehicle Code or refuses a properly requested test related to

 

 

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1operating a motor vehicle while under the influence of
2cannabis shall have his or her registry identification card
3revoked.
4    (g) No registered qualifying patient, provisional patient,    
5or designated caregiver, or Opioid Alternative Patient Program
6participant shall knowingly obtain, seek to obtain, or
7possess, individually or collectively, an amount of usable
8cannabis from a registered medical cannabis dispensing
9organization that would cause him or her to exceed the
10authorized adequate medical supply under subsection (a) of
11Section 10.
12    (h) Nothing in this Act shall prevent a private business
13from restricting or prohibiting the medical use of cannabis on
14its property.
15    (i) Nothing in this Act shall prevent a university,
16college, or other institution of post-secondary education from
17restricting or prohibiting the use of medical cannabis on its
18property.
19(Source: P.A. 101-363, eff. 8-9-19; 102-67, eff. 7-9-21.)
 
20    (410 ILCS 130/35)
21    Sec. 35. Certifying health care professional requirements.
22    (a) A certifying health care professional who certifies a
23debilitating medical condition for a qualifying patient shall
24comply with all of the following requirements:
25        (1) The certifying health care professional shall be

 

 

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1    currently licensed under the Medical Practice Act of 1987
2    to practice medicine in all its branches, the Nurse
3    Practice Act, or the Physician Assistant Practice Act of
4    1987, shall be in good standing, and must hold a
5    controlled substances license under Article III of the
6    Illinois Controlled Substances Act.
7        (2) A certifying health care professional certifying a
8    patient's condition shall comply with generally accepted
9    standards of medical practice, the provisions of the Act
10    under which he or she is licensed and all applicable
11    rules.
12        (3) The physical examination required by this Act may
13    not be performed by remote means, including telemedicine.
14        (4) The certifying health care professional shall
15    maintain a record-keeping system for all patients for whom
16    the certifying health care professional has certified the
17    patient's medical condition. These records shall be
18    accessible to and subject to review by the Department of
19    Public Health and the Department of Financial and
20    Professional Regulation upon request.
21    (b) A certifying health care professional may not:
22        (1) accept, solicit, or offer any form of remuneration
23    from or to a qualifying patient, provisional patient,
24    designated primary caregiver, Opioid Alternative Patient
25    Program participant, cultivation center, or dispensing
26    organization, including each principal officer, board

 

 

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1    member, agent, and employee, to certify a patient, other
2    than accepting payment from a patient for the fee
3    associated with the required examination, except for the
4    limited purpose of performing a medical cannabis-related
5    research study;
6        (1.5) accept, solicit, or offer any form of
7    remuneration from or to a medical cannabis cultivation
8    center or dispensary organization for the purposes of
9    referring a patient to a specific dispensary organization;
10        (1.10) engage in any activity that is prohibited under
11    Section 22.2 of the Medical Practice Act of 1987,
12    regardless of whether the certifying health care
13    professional is a physician, advanced practice registered
14    nurse, or physician assistant;
15        (2) offer a discount of any other item of value to a
16    qualifying patient, provisional patient, designated
17    caregiver, or Opioid Alternative Patient Program
18    participant who uses or agrees to use a particular
19    designated primary caregiver or dispensing organization to
20    obtain medical cannabis;
21        (3) conduct a personal certifying physical examination
22    of a patient for purposes of diagnosing a debilitating
23    medical condition at a location where medical cannabis is
24    sold or distributed or at the address of a principal
25    officer, agent, or employee or a medical cannabis
26    organization;

 

 

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

 

 

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1certifying health care professional has reason to believe
2either that the registered qualifying patient has ceased to
3suffer from a debilitating medical condition; (2) that the
4bona fide health care professional-patient relationship has
5terminated; or (3) that continued use of medical cannabis
6would result in contraindication with the patient's other
7medication. The registered qualifying patient's registry
8identification card shall be revoked by the Department of
9Public Health after receiving the certifying health care
10professional's notification.
11    (f) Nothing in this Act shall preclude a certifying health
12care professional from referring a patient for health
13services, except when the referral is limited to certification
14purposes only, under this Act.
15(Source: P.A. 101-363, eff. 8-9-19; 102-558, eff. 8-20-21.)
 
16    (410 ILCS 130/57)
17    Sec. 57. Designated caregivers Qualifying patients.     
18    (a) Qualifying patients or provisional patients that are
19under the age of 18 years shall not be prohibited from
20appointing up to 3 designated caregivers who meet the
21definition of "designated caregiver" under Section 10 so long
22as at least one designated caregiver is a biological parent or
23legal guardian.
24    (b) Qualifying patients and provisional patients that are
2518 years of age or older shall not be prohibited from

 

 

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1appointing up to 3 designated caregivers who meet the
2definition of "designated caregiver" under Section 10.
3    (c) Beginning 90 days after the effective date of this
4amendatory Act of the 104th General Assembly, designated
5caregivers, qualifying patients, provisions patients, and
6Opioid Alternative Patient Program participants registered
7under this Act may purchase an adequate medical supply at any
8dispensing organization that has been issued a Medical
9Cannabis Dispensing Organization license by the Department of
10Financial and Professional Regulation pursuant to Section
1115-37 of the Cannabis Regulation and Tax Act.    
12(Source: P.A. 101-363, eff. 8-9-19.)
 
13    (410 ILCS 130/60)
14    Sec. 60. Issuance of registry identification cards.
15    (a) Except as provided in subsection (b), the Department
16of Public Health shall:
17        (1) verify the information contained in an application
18    or renewal for a registry identification card submitted
19    under this Act, and approve or deny an application or
20    renewal, within 90 days of receiving a completed
21    application or renewal application and all supporting
22    documentation specified in Section 55;
23        (2) issue registry identification cards to a
24    qualifying patient and his or her designated caregiver, if
25    any, within 15 business days of approving the application

 

 

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1    or renewal; and    
2        (3) enter the registry identification number of the
3    registered dispensing organization the patient designates
4    into the verification system; and    
5        (3) (4) allow for an electronic application process,
6    and provide a confirmation by electronic or other methods
7    that an application has been submitted.
8    Notwithstanding any other provision of this Act, the
9Department of Public Health shall adopt rules for qualifying
10patients and applicants with life-long debilitating medical
11conditions, who may be charged annual renewal fees. The
12Department of Public Health shall not require patients and
13applicants with life-long debilitating medical conditions to
14apply to renew registry identification cards.
15    (b) The Department of Public Health may not issue a
16registry identification card to a qualifying patient who is
17under 18 years of age, unless that patient suffers from
18seizures, including those characteristic of epilepsy, or as
19provided by administrative rule. The Department of Public
20Health shall adopt rules for the issuance of a registry
21identification card for qualifying patients who are under 18
22years of age and suffering from seizures, including those
23characteristic of epilepsy. The Department of Public Health
24may adopt rules to allow other individuals under 18 years of
25age to become registered qualifying patients under this Act
26with the consent of a parent or legal guardian. Registered

 

 

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1qualifying patients under 18 years of age shall be prohibited
2from consuming forms of cannabis other than medical cannabis
3infused products and purchasing any usable cannabis.
4    (c) A veteran who has received treatment at a VA hospital
5is deemed to have a bona fide health care professional-patient
6relationship with a VA certifying health care professional if
7the patient has been seen for his or her debilitating medical
8condition at the VA hospital in accordance with VA hospital
9protocols. All reasonable inferences regarding the existence
10of a bona fide health care professional-patient relationship
11shall be drawn in favor of an applicant who is a veteran and
12has undergone treatment at a VA hospital.
13    (c-10) An individual who submits an application as someone
14who is terminally ill shall have all fees waived. The
15Department of Public Health shall within 30 days after this
16amendatory Act of the 99th General Assembly adopt emergency
17rules to expedite approval for terminally ill individuals.
18These rules shall include, but not be limited to, rules that
19provide that applications by individuals with terminal
20illnesses shall be approved or denied within 14 days of their
21submission.
22    (d) No later than 6 months after the effective date of this
23amendatory Act of the 101st General Assembly, the Secretary of
24State shall remove all existing notations on driving records
25that the person is a registered qualifying patient or his or
26her caregiver under this Act.

 

 

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1    (e) Upon the approval of the registration and issuance of
2a registry card under this Section, the Department of Public
3Health shall electronically forward the registered qualifying
4patient's identification card information to the Prescription
5Monitoring Program established under the Illinois Controlled
6Substances Act and certify that the individual is permitted to
7engage in the medical use of cannabis. For the purposes of
8patient care, the Prescription Monitoring Program shall make a
9notation on the person's prescription record stating that the
10person is a registered qualifying patient who is entitled to
11the lawful medical use of cannabis. If the person no longer
12holds a valid registry card, the Department of Public Health
13shall notify the Prescription Monitoring Program and
14Department of Human Services to remove the notation from the
15person's record. The Department of Human Services and the
16Prescription Monitoring Program shall establish a system by
17which the information may be shared electronically. This
18confidential list may not be combined or linked in any manner
19with any other list or database except as provided in this
20Section.    
21    (f) (Blank).
22    (g) Identifying information of registered qualifying
23patients is confidential and may not be combined or linked in
24any manner with any other list or database, except (i) as
25provided in this Section, (ii) to support the statutory
26purpose of the Adult Use Cannabis Health Advisory Committee,

 

 

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1the Medical Cannabis Advisory Board, the Illinois Department
2of Public Health, or the Illinois Department of Human
3Services, or (iii) to support other medical research into the
4effects of medical cannabis, so long as the data are readily
5available, the requesting organization has standing as a
6research institution, the research is approved by the
7Department's Institutional Review Board and is compliant with
8data governance, privacy regulations, including 45 CFR
9164.512(i), as applicable, and other requirements as
10determined by the Department, and the identifying information
11of registered qualifying patients is removed after being used
12to match with other datasets. All research must protect and
13maintain the anonymity of medical cannabis patients and shall
14include only data related to patients who submitted initial
15applications after the effective date of this amendatory Act
16of the 104th General Assembly.    
17(Source: P.A. 100-1114, eff. 8-28-18; 101-363, eff. 8-9-19;
18101-593, eff. 12-4-19.)
 
19    (410 ILCS 130/62)
20    Sec. 62. Opioid Alternative Patient Pilot Program.    
21    (a) The Department of Public Health shall establish the
22Opioid Alternative Patient Pilot Program. Licensed dispensing
23organizations shall allow persons with a written certification
24from a certifying health care professional under Section 36 to
25purchase medical cannabis upon enrollment in the Opioid

 

 

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1Alternative Patient Pilot Program. The Department of Public
2Health shall adopt rules or establish procedures allowing
3qualified veterans to participate in the Opioid Alternative
4Patient Pilot Program. For a person to receive medical
5cannabis under this Section, the person must present the
6written certification along with a valid driver's license or
7state identification card to the licensed dispensing
8organization specified in his or her application. The
9dispensing organization shall verify the person's status as an
10Opioid Alternative Patient Pilot Program participant through
11the Department of Public Health's online verification system.
12    (b) The Opioid Alternative Patient Pilot Program shall be
13limited to participation by Illinois residents age 21 and
14older.
15    (c) The Department of Financial and Professional
16Regulation shall specify that all licensed dispensing
17organizations participating in the Opioid Alternative Patient    
18Pilot Program use the Illinois Cannabis Tracking System. The
19Department of Public Health shall establish and maintain the
20Illinois Cannabis Tracking System. The Illinois Cannabis
21Tracking System shall be used to collect information about all
22persons participating in the Opioid Alternative Patient Pilot    
23Program and shall be used to track the sale of medical cannabis
24for verification purposes.
25    Each dispensing organization shall retain a copy of the
26Opioid Alternative Patient Pilot Program certification and

 

 

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1other identifying information as required by the Department of
2Financial and Professional Regulation, the Department of
3Public Health, and the Illinois State Police in the Illinois
4Cannabis Tracking System.
5    The Illinois Cannabis Tracking System shall be accessible
6to the Department of Financial and Professional Regulation,
7Department of Public Health, Department of Agriculture, and
8the Illinois State Police.
9    The Department of Financial and Professional Regulation in
10collaboration with the Department of Public Health shall
11specify the data requirements for the Opioid Alternative
12Patient Pilot Program by licensed dispensing organizations;
13including, but not limited to, the participant's full legal
14name, address, and date of birth, date on which the Opioid
15Alternative Patient Pilot Program certification was issued,
16length of the participation in the Program, including the
17start and end date to purchase medical cannabis, name of the
18issuing physician, copy of the participant's current driver's
19license or State identification card, and phone number.
20    The Illinois Cannabis Tracking System shall provide
21verification of a person's participation in the Opioid
22Alternative Patient Pilot Program for law enforcement at any
23time and on any day.
24    (d) The certification for Opioid Alternative Patient Pilot    
25Program participant must be issued by a certifying health care
26professional who is licensed to practice in Illinois under the

 

 

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1Medical Practice Act of 1987, the Nurse Practice Act, or the
2Physician Assistant Practice Act of 1987 and who is in good
3standing and holds a controlled substances license under
4Article III of the Illinois Controlled Substances Act.
5    The certification for an Opioid Alternative Patient Pilot    
6Program participant shall be written within 90 days before the
7participant submits his or her certification to the dispensing
8organization.
9    The written certification uploaded to the Illinois
10Cannabis Tracking System shall be accessible to the Department
11of Public Health.
12    (e) Upon verification of the individual's valid
13certification and enrollment in the Illinois Cannabis Tracking
14System, the dispensing organization may dispense the medical
15cannabis, in amounts not exceeding 2.5 ounces of medical
16cannabis per 14-day period to the participant at the
17participant's specified dispensary for no more than 90 days.
18    An Opioid Alternative Patient Pilot Program participant
19shall not be registered as a medical cannabis cardholder. The
20dispensing organization shall verify that the person is not an
21active registered qualifying patient prior to enrollment in
22the Opioid Alternative Patient Pilot Program and each time
23medical cannabis is dispensed.
24    Upon receipt of a written certification under the Opioid
25Alternative Patient Pilot Program, the Department of Public
26Health shall electronically forward the patient's

 

 

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1identification information to the Prescription Monitoring
2Program established under the Illinois Controlled Substances
3Act and certify that the individual is permitted to engage in
4the medical use of cannabis. For the purposes of patient care,
5the Prescription Monitoring Program shall make a notation on
6the person's prescription record stating that the person has a
7written certification under the Opioid Alternative Patient    
8Pilot Program and is a patient who is entitled to the lawful
9medical use of cannabis. If the person is no longer authorized
10to engage in the medical use of cannabis, the Department of
11Public Health shall notify the Prescription Monitoring Program
12and Department of Human Services to remove the notation from
13the person's record. The Department of Human Services and the
14Prescription Monitoring Program shall establish a system by
15which the information may be shared electronically. This
16confidential list may not be combined or linked in any manner
17with any other list or database except as provided in this
18Section.
19    (e-5) The confidential list described in subsection (a) of
20Section 150 may not be combined or linked in any manner with
21any other list or database, except as provided in this
22Section. The confidential list may be linked by the Department
23of Public Health so long as the data are readily available, the
24requesting organization has standing as a bona fide agent of
25the Department of Public Health, the research is approved by
26the Department's Institutional Review Board, and the research

 

 

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1is compliant with data governance, privacy, and other
2requirements as determined by the Department. All research
3must protect and maintain the anonymity of medical cannabis
4patients and shall include only data related to patients who
5have provided consent. The Department shall adopt rules to
6define a bona fide agent, the application process,
7confidentiality protections, and any other requirements it
8deems necessary for the implementation of this Section.    
9    (f) An Opioid Alternative Patient Pilot Program
10participant shall not be considered a qualifying patient with
11a debilitating medical condition under this Act and shall be
12provided access to medical cannabis solely for the duration of
13the participant's certification. Nothing in this Section shall
14be construed to limit or prohibit an Opioid Alternative
15Patient Pilot Program participant who has a debilitating
16medical condition from applying to the Compassionate Use of
17Medical Cannabis Program.
18    (g) A person with a provisional registration under Section
1955 shall not be considered an Opioid Alternative Patient Pilot    
20Program participant.
21    (h) (Blank). The Department of Financial and Professional
22Regulation and the Department of Public Health shall submit
23emergency rulemaking to implement the changes made by this
24amendatory Act of the 100th General Assembly by December 1,
252018. The Department of Financial and Professional Regulation,
26the Department of Agriculture, the Department of Human

 

 

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1Services, the Department of Public Health, and the Illinois
2State Police shall utilize emergency purchase authority for 12
3months after the effective date of this amendatory Act of the
4100th General Assembly for the purpose of implementing the
5changes made by this amendatory Act of the 100th General
6Assembly.    
7    (i) Dispensing organizations are not authorized to
8dispense medical cannabis to Opioid Alternative Patient Pilot    
9Program participants until administrative rules are approved
10by the Joint Committee on Administrative Rules and go into
11effect.
12    (j) (Blank). The provisions of this Section are
13inoperative on and after July 1, 2025.    
14(Source: P.A. 101-363, eff. 8-9-19; 102-16, eff. 6-17-21.)
 
15    (410 ILCS 130/70)
16    Sec. 70. Registry identification cards.
17    (a) A registered qualifying patient or designated
18caregiver must keep their registry identification card in his
19or her possession at all times when engaging in the medical use
20of cannabis.
21    (b) Registry identification cards shall contain the
22following:
23        (1) the name of the cardholder;
24        (2) a designation of whether the cardholder is a
25    designated caregiver or qualifying patient;

 

 

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

 

 

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1denies the renewal or issues a new identification card.
2    (d) Except as otherwise provided in this Section, the
3expiration date is 3 years after the date of issuance.
4    (e) The Department of Public Health may electronically
5store in the card any or all of the information listed in
6subsection (b), along with the address and date of birth of the
7cardholder and the qualifying patient's designated dispensary
8organization, to allow it to be read by law enforcement
9agents.
10(Source: P.A. 98-122, eff. 1-1-14; 99-519, eff. 6-30-16.)
 
11    (410 ILCS 130/75)
12    Sec. 75. Notifications to Department of Public Health and
13responses; civil penalty.
14    (a) The following notifications and Department of Public
15Health responses are required:
16        (1) A registered qualifying patient or Opioid
17    Alternative Patient Program participant shall notify the
18    Department of Public Health of any change in his or her
19    name or address, or if the registered qualifying patient
20    ceases to have his or her debilitating medical condition,
21    within 10 days of the change.
22        (2) A registered designated caregiver shall notify the
23    Department of Public Health of any change in his or her
24    name or address, or if the designated caregiver becomes
25    aware the registered qualifying patient passed away,

 

 

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1    within 10 days of the change.
2        (3) Before a registered qualifying patient changes his
3    or her designated caregiver, the qualifying patient must
4    notify the Department of Public Health.
5        (4) (Blank). If a cardholder loses his or her registry
6    identification card, he or she shall notify the Department
7    within 10 days of becoming aware the card has been lost.    
8    (b) When a cardholder notifies the Department of Public
9Health of items listed in subsection (a), but remains eligible
10under this Act, the Department of Public Health shall issue
11the cardholder a new registry identification card with a new
12random alphanumeric identification number within 15 business
13days of receiving the updated information and a fee as
14specified in Department of Public Health rules. If the person
15notifying the Department of Public Health is a registered
16qualifying patient, the Department shall also issue his or her
17registered designated caregiver, if any, a new registry
18identification card within 15 business days of receiving the
19updated information.
20    (c) If a registered qualifying patient ceases to be a
21registered qualifying patient or changes his or her registered
22designated caregiver, the Department of Public Health shall
23promptly notify the designated caregiver. The registered
24designated caregiver's protections under this Act as to that
25qualifying patient shall expire 15 days after notification by
26the Department.

 

 

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1    (d) A cardholder who fails to make a notification to the
2Department of Public Health that is required by this Section
3is subject to a civil infraction, punishable by a penalty of no
4more than $150.
5    (e) (Blank). A registered qualifying patient shall notify
6the Department of Public Health of any change to his or her
7designated registered dispensing organization. The Department
8of Public Health shall provide for immediate changes of a
9registered qualifying patient's designated registered
10dispensing organization. Registered dispensing organizations
11must comply with all requirements of this Act.    
12    (f) If the registered qualifying patient's certifying
13health care professional notifies the Department in writing
14that either the registered qualifying patient or Opioid
15Alternative Patient Program participant has ceased to suffer
16from a debilitating medical condition, that the bona fide
17health care professional-patient relationship has terminated,
18or that continued use of medical cannabis would result in
19contraindication with the patient's other medication, the card
20shall become null and void. However, the registered qualifying
21patient shall have 15 days to destroy his or her remaining
22medical cannabis and related paraphernalia.
23(Source: P.A. 101-363, eff. 8-9-19; 102-558, eff. 8-20-21.)
 
24    (410 ILCS 130/85)
25    Sec. 85. Issuance and denial of medical cannabis

 

 

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1cultivation permit.
2    (a) The Department of Agriculture may register up to 22
3cultivation center registrations for operation. The Department
4of Agriculture may not issue more than one registration per
5each Illinois State Police District boundary as specified on
6the date of January 1, 2013. The Department of Agriculture may
7not issue less than the 22 registrations if there are
8qualified applicants who have applied with the Department.
9    (b) The registrations shall be issued and renewed annually
10as determined by administrative rule.
11    (c) The Department of Agriculture shall determine a
12registration fee by rule.
13    (d) A cultivation center may only operate if it has been
14issued a valid registration from the Department of
15Agriculture. When applying for a cultivation center
16registration, the applicant shall submit the following in
17accordance with Department of Agriculture rules:
18        (1) the proposed legal name of the cultivation center;
19        (2) the proposed physical address of the cultivation
20    center and description of the enclosed, locked facility as
21    it applies to cultivation centers where medical cannabis
22    will be grown, harvested, manufactured, packaged, or
23    otherwise prepared for distribution to a dispensing
24    organization;
25        (3) the name, address, and date of birth of each
26    principal officer and board member of the cultivation

 

 

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1    center, provided that all those individuals shall be at
2    least 21 years of age;
3        (4) any instance in which a business that any of the
4    prospective board members of the cultivation center had
5    managed or served on the board of the business and was
6    convicted, fined, censured, or had a registration or
7    license suspended or revoked in any administrative or
8    judicial proceeding;
9        (5) cultivation, inventory, and packaging plans;
10        (6) proposed operating by-laws that include procedures
11    for the oversight of the cultivation center, development
12    and implementation of a plant monitoring system, medical
13    cannabis container tracking system, accurate record
14    keeping, staffing plan, and security plan reviewed by the
15    Illinois State Police that are in accordance with the
16    rules issued by the Department of Agriculture under this
17    Act. A physical inventory shall be performed of all plants
18    and medical cannabis containers on a weekly basis;
19        (7) experience with agricultural cultivation
20    techniques and industry standards;
21        (8) any academic degrees, certifications, or relevant
22    experience with related businesses;
23        (9) the identity of every person, association, trust,
24    or corporation having any direct or indirect pecuniary
25    interest in the cultivation center operation with respect
26    to which the registration is sought. If the disclosed

 

 

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1    entity is a trust, the application shall disclose the
2    names and addresses of the beneficiaries; if a
3    corporation, the names and addresses of all stockholders
4    and directors; if a partnership, the names and addresses
5    of all partners, both general and limited;
6        (10) verification from the Illinois State Police that
7    all background checks of the principal officer, board
8    members, and registered agents have been conducted and
9    those individuals have not been convicted of an excluded
10    offense;
11        (11) provide a copy of the current local zoning
12    ordinance to the Department of Agriculture and verify that
13    proposed cultivation center is in compliance with the
14    local zoning rules issued in accordance with Section 140;
15        (12) an application fee set by the Department of
16    Agriculture by rule; and
17        (13) any other information required by Department of
18    Agriculture rules, including, but not limited to a
19    cultivation center applicant's experience with the
20    cultivation of agricultural or horticultural products,
21    operating an agriculturally related business, or operating
22    a horticultural business.
23    (e) An application for a cultivation center permit must be
24denied if any of the following conditions are met:
25        (1) the applicant failed to submit the materials
26    required by this Section, including if the applicant's

 

 

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1    plans do not satisfy the security, oversight, inventory,
2    or recordkeeping rules issued by the Department of
3    Agriculture;
4        (2) the applicant would not be in compliance with
5    local zoning rules issued in accordance with Section 140;
6        (3) (blank); one or more of the prospective principal
7    officers or board members has been convicted of an
8    excluded offense;    
9        (4) one or more of the prospective principal officers
10    or board members has served as a principal officer or
11    board member for a registered dispensing organization or
12    cultivation center that has had its registration revoked;
13        (5) one or more of the principal officers or board
14    members is under 21 years of age;
15        (6) (blank); a principal officer or board member of
16    the cultivation center has been convicted of a felony
17    under the laws of this State, any other state, or the
18    United States;    
19        (7) (blank); or a principal officer or board member of
20    the cultivation center has been convicted of any violation
21    of Article 28 of the Criminal Code of 2012, or
22    substantially similar laws of any other jurisdiction; or    
23        (8) the person has submitted an application for a
24    certificate under this Act which contains false
25    information.
26(Source: P.A. 102-538, eff. 8-20-21.)
 

 

 

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1    (410 ILCS 130/100)
2    Sec. 100. Cultivation center agent identification card.
3    (a) The Department of Agriculture shall:
4        (1) verify the information contained in an application
5    or renewal for a cultivation center identification card
6    submitted under this Act, and approve or deny an
7    application or renewal, within 30 days of receiving a
8    completed application or renewal application and all
9    supporting documentation required by rule;
10        (2) issue a cultivation center agent identification
11    card to a qualifying agent within 15 business days of
12    approving the application or renewal;
13        (3) enter the registry identification number of the
14    cultivation center where the agent works; and
15        (4) allow for an electronic application process, and
16    provide a confirmation by electronic or other methods that
17    an application has been submitted.
18    (b) A cultivation center agent must keep his or her
19identification card visible at all times when on the property
20of a cultivation center and during the transportation of
21medical cannabis to a registered dispensary organization.
22    (c) The cultivation center agent identification cards
23shall contain the following:
24        (1) the name of the cardholder;
25        (2) the date of issuance and expiration date of

 

 

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1    cultivation center agent identification cards;
2        (3) a random 10-digit alphanumeric identification
3    number containing at least 4 numbers and at least 4
4    letters that is unique to the holder; and
5        (4) a photograph of the cardholder.
6    (d) The cultivation center agent identification cards
7shall be immediately returned to the cultivation center upon
8termination of employment.
9    (e) Any card lost by a cultivation center agent shall be
10reported to the Illinois State Police and the Department of
11Agriculture immediately upon discovery of the loss.
12    (f) (Blank). An applicant shall be denied a cultivation
13center agent identification card if he or she has been
14convicted of an excluded offense.    
15    (g) An agent applicant may begin employment at a
16cultivation center while the agent applicant's identification
17card application is pending. Upon approval, the Department
18shall issue the agent's identification card to the agent. If
19denied, the cultivation center and the agent applicant shall
20be notified and the agent applicant must cease all activity at
21the cultivation center immediately.
22(Source: P.A. 102-98, eff. 7-15-21; 102-538, eff. 8-20-21;
23102-813, eff. 5-13-22.)
 
24    (410 ILCS 130/105)
25    Sec. 105. Requirements; prohibitions; penalties for

 

 

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1cultivation centers.
2    (a) The operating documents of a registered cultivation
3center shall include procedures for the oversight of the
4cultivation center, a cannabis plant monitoring system
5including a physical inventory recorded weekly, a cannabis
6container system including a physical inventory recorded
7weekly, accurate record keeping, and a staffing plan.
8    (b) A registered cultivation center shall implement a
9security plan reviewed by the Illinois State Police and
10including but not limited to: facility access controls,
11perimeter intrusion detection systems, personnel
12identification systems, 24-hour surveillance system to monitor
13the interior and exterior of the registered cultivation center
14facility and accessible to authorized law enforcement and the
15Department of Agriculture in real-time.
16    (c) A registered cultivation center may not be located
17within 2,500 feet of the property line of a pre-existing
18public or private preschool or elementary or secondary school
19or day care center, day care home, group day care home, part
20day child care facility, or an area zoned for residential use.
21    (d) All cultivation of cannabis for distribution to a
22registered dispensing organization must take place in an
23enclosed, locked facility as it applies to cultivation centers
24at the physical address provided to the Department of
25Agriculture during the registration process. The cultivation
26center location shall only be accessed by the cultivation

 

 

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1center agents working for the registered cultivation center,
2Department of Agriculture staff performing inspections,
3Department of Public Health staff performing inspections, law
4enforcement or other emergency personnel, and contractors
5working on jobs unrelated to medical cannabis, such as
6installing or maintaining security devices or performing
7electrical wiring.
8    (e) A cultivation center may not sell or distribute any
9cannabis to any individual or entity other than another
10cultivation center, a dispensing organization registered under
11this Act, or a laboratory licensed by the Department of
12Agriculture.
13    (f) All harvested cannabis intended for distribution to a
14dispensing organization must be packaged in a labeled medical
15cannabis container and entered into a data collection system.
16    (g) (Blank). No person who has been convicted of an
17excluded offense may be a cultivation center agent.    
18    (h) Registered cultivation centers are subject to random
19inspection by the Illinois State Police.
20    (i) Registered cultivation centers are subject to random
21inspections by the Department of Agriculture and the
22Department of Public Health.
23    (j) A cultivation center agent shall notify local law
24enforcement, the Illinois State Police, and the Department of
25Agriculture within 24 hours of the discovery of any loss or
26theft. Notification shall be made by phone or in-person, or by

 

 

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1written or electronic communication.
2    (k) A cultivation center shall comply with all State and
3federal rules and regulations regarding the use of pesticides.
4(Source: P.A. 101-363, eff. 8-9-19; 102-538, eff. 8-20-21.)
 
5    (410 ILCS 130/115)
6    Sec. 115. Dispensing Registration of dispensing    
7organizations. A dispensing organization may only operate if
8it has been issued a dispensing organization license from the
9Department of Financial and Professional Regulation, including
10an Early Approval Adult Use Dispensing Organization at a
11Same-Site License, an Adult Use Dispensing Organization
12License, or a Medical Cannabis Dispensing Organization
13License. If a dispensing organization holds both an Adult Use
14Dispensing Organization License and a corresponding Medical
15Cannabis Dispensing Organization License, the dispensing
16organization shall correspondingly adhere to the provisions of
17this Act, any administrative rules pursuant to this Act, the
18Cannabis Regulation and Tax Act, and any administrative rules
19adopted pursuant to the Cannabis Regulation and Tax Act.    
20    (a) The Department of Financial and Professional
21Regulation may issue up to 60 dispensing organization
22registrations for operation. The Department of Financial and
23Professional Regulation may not issue less than the 60
24registrations if there are qualified applicants who have
25applied with the Department of Financial and Professional

 

 

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1Regulation. The organizations shall be geographically
2dispersed throughout the State to allow all registered
3qualifying patients reasonable proximity and access to a
4dispensing organization.    
5    (a-5) The Department of Financial and Professional
6Regulation shall adopt rules to create a registration process
7for Social Equity Justice Involved Applicants and Qualifying
8Applicants, a streamlined application, and a Social Equity
9Justice Involved Medical Lottery under Section 115.5 to issue
10the remaining available 5 dispensing organization
11registrations for operation. For purposes of this Section:
12    "Disproportionately Impacted Area" means a census tract or
13comparable geographic area that satisfies the following
14criteria as determined by the Department of Commerce and
15Economic Opportunity, that:
16        (1) meets at least one of the following criteria:
17            (A) the area has a poverty rate of at least 20%
18        according to the latest federal decennial census; or
19            (B) 75% or more of the children in the area
20        participate in the federal free lunch program
21        according to reported statistics from the State Board
22        of Education; or
23            (C) at least 20% of the households in the area
24        receive assistance under the Supplemental Nutrition
25        Assistance Program; or
26            (D) the area has an average unemployment rate, as

 

 

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1        determined by the Illinois Department of Employment
2        Security, that is more than 120% of the national
3        unemployment average, as determined by the United
4        States Department of Labor, for a period of at least 2
5        consecutive calendar years preceding the date of the
6        application; and
7        (2) has high rates of arrest, conviction, and
8    incarceration related to sale, possession, use,
9    cultivation, manufacture, or transport of cannabis.
10    "Qualifying Applicant" means an applicant that: (i)
11submitted an application pursuant to Section 15-30 of the
12Cannabis Regulation and Tax Act that received at least 85% of
13250 application points available under Section 15-30 of the
14Cannabis Regulation and Tax Act as the applicant's final
15score; (ii) received points at the conclusion of the scoring
16process for meeting the definition of a "Social Equity
17Applicant" as set forth under the Cannabis Regulation and Tax
18Act; and (iii) is an applicant that did not receive a
19Conditional Adult Use Dispensing Organization License through
20a Qualifying Applicant Lottery pursuant to Section 15-35 of
21the Cannabis Regulation and Tax Act or any Tied Applicant
22Lottery conducted under the Cannabis Regulation and Tax Act.
23    "Social Equity Justice Involved Applicant" means an
24applicant that is an Illinois resident and one of the
25following:
26        (1) an applicant with at least 51% ownership and

 

 

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1    control by one or more individuals who have resided for at
2    least 5 of the preceding 10 years in a Disproportionately
3    Impacted Area;
4        (2) an applicant with at least 51% of ownership and
5    control by one or more individuals who have been arrested
6    for, convicted of, or adjudicated delinquent for any
7    offense that is eligible for expungement under subsection
8    (i) of Section 5.2 of the Criminal Identification Act; or
9        (3) an applicant with at least 51% ownership and
10    control by one or more members of an impacted family.
11    (b) A dispensing organization may only operate if it has
12been issued a registration from the Department of Financial
13and Professional Regulation. The Department of Financial and
14Professional Regulation shall adopt rules establishing the
15procedures for applicants for dispensing organizations.
16    (c) When applying for a dispensing organization
17registration, the applicant shall submit, at a minimum, the
18following in accordance with Department of Financial and
19Professional Regulation rules:
20        (1) a non-refundable application fee established by
21    rule;
22        (2) the proposed legal name of the dispensing
23    organization;
24        (3) the proposed physical address of the dispensing
25    organization;
26        (4) the name, address, and date of birth of each

 

 

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1    principal officer and board member of the dispensing
2    organization, provided that all those individuals shall be
3    at least 21 years of age;
4        (5) (blank);
5        (6) (blank); and
6        (7) (blank).
7    (d) The Department of Financial and Professional
8Regulation shall conduct a background check of the prospective
9dispensing organization agents in order to carry out this
10Section. The Department of State Police shall charge a fee for
11conducting the criminal history record check, which shall be
12deposited in the State Police Services Fund and shall not
13exceed the actual cost of the record check. Each person
14applying as a dispensing organization agent shall submit a
15full set of fingerprints to the Department of State Police for
16the purpose of obtaining a State and federal criminal records
17check. These fingerprints shall be checked against the
18fingerprint records now and hereafter, to the extent allowed
19by law, filed in the Department of State Police and Federal
20Bureau of Investigation criminal history records databases.
21The Department of State Police shall furnish, following
22positive identification, all Illinois conviction information
23to the Department of Financial and Professional Regulation.
24    (e) A dispensing organization must pay a registration fee
25set by the Department of Financial and Professional
26Regulation.

 

 

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1    (f) An application for a medical cannabis dispensing
2organization registration must be denied if any of the
3following conditions are met:
4        (1) the applicant failed to submit the materials
5    required by this Section, including if the applicant's
6    plans do not satisfy the security, oversight, or
7    recordkeeping rules issued by the Department of Financial
8    and Professional Regulation;
9        (2) the applicant would not be in compliance with
10    local zoning rules issued in accordance with Section 140;
11        (3) the applicant does not meet the requirements of
12    Section 130;
13        (4) one or more of the prospective principal officers
14    or board members has been convicted of an excluded
15    offense;
16        (5) one or more of the prospective principal officers
17    or board members has served as a principal officer or
18    board member for a registered medical cannabis dispensing
19    organization that has had its registration revoked; and
20        (6) one or more of the principal officers or board
21    members is under 21 years of age.
22(Source: P.A. 101-363, eff. 8-9-19; 102-98, eff. 7-15-21.)
 
23    (410 ILCS 130/120)
24    Sec. 120. Dispensing organization agent identification
25card.

 

 

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1    (a) This Section does not apply to any dispensing
2organization agents who are employed at any dispensing
3organization issued an Adult Use Dispensing Organization
4License and a corresponding Medical Cannabis Dispensing
5Organization License under Section 15-37 of the Cannabis
6Regulation and Tax Act.    
7    (a-5) The Department of Financial and Professional
8Regulation shall:
9        (1) verify the information contained in an application
10    or renewal for a dispensing organization agent
11    identification card submitted under this Act, and approve
12    or deny an application or renewal, within 30 days of
13    receiving a completed application or renewal application
14    and all supporting documentation required by rule;
15        (2) issue a dispensing organization agent
16    identification card to a qualifying agent within 15
17    business days of approving the application or renewal;
18        (3) enter the registry identification number of the
19    dispensing organization where the agent works; and
20        (4) allow for an electronic application process, and
21    provide a confirmation by electronic or other methods that
22    an application has been submitted.
23    (b) A dispensing agent must keep his or her identification
24card visible at all times when on the property of a dispensing
25organization.
26    (c) The dispensing organization agent identification cards

 

 

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1shall contain the following:
2        (1) the name of the cardholder;
3        (2) the date of issuance and expiration date of the
4    dispensing organization agent identification cards;
5        (3) a random 10 digit alphanumeric identification
6    number containing at least 4 numbers and at least 4
7    letters; that is unique to the holder; and
8        (4) a photograph of the cardholder.
9    (d) The dispensing organization agent identification cards
10shall be immediately returned to the dispensing organization
11upon termination of employment.
12    (e) Any card lost by a dispensing organization agent shall
13be reported to the Illinois State Police and the Department of
14Financial and Professional Regulation immediately upon
15discovery of the loss.
16    (f) (Blank) An applicant shall be denied a dispensing
17organization agent identification card if he or she has been
18convicted of an excluded offense.
19(Source: P.A. 98-122, eff. 1-1-14; 98-1172, eff. 1-12-15.)
 
20    (410 ILCS 130/130)
21    Sec. 130. Requirements; prohibitions; penalties;
22dispensing organizations.
23    (a) The Department of Financial and Professional
24Regulation shall implement the provisions of this Section by
25rule.

 

 

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1    (b) A dispensing organization shall maintain operating
2documents which shall include procedures for the oversight of
3the registered dispensing organization and procedures to
4ensure accurate recordkeeping.
5    (c) A dispensing organization shall implement appropriate
6security measures, as provided by rule, to deter and prevent
7the theft of cannabis and unauthorized entrance into areas
8containing cannabis.
9    (d) A dispensing organization may not be located within
101,000 feet of the property line of a pre-existing public or
11private preschool or elementary or secondary school or day
12care center, day care home, group day care home, or part day
13child care facility. A registered dispensing organization may
14not be located in a house, apartment, condominium, or an area
15zoned for residential use. This subsection shall not apply to
16any dispensing organizations registered on or after July 1,
172019.
18    (e) A dispensing organization is prohibited from acquiring
19cannabis from anyone other than a cultivation center, craft
20grower, infuser organization processing organization, another
21dispensing organization, or transporting organization licensed
22or registered under this Act or the Cannabis Regulation and
23Tax Act. A dispensing organization is prohibited from
24obtaining cannabis from outside the State of Illinois.
25    (f) A registered dispensing organization is prohibited
26from dispensing cannabis for any purpose except to assist

 

 

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

 

 

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1    identified on the registry identification card presented
2    to the dispensing organization agent;
3        (2.5) that the medical cannabis has the proper
4    labeling required under State and federal law;    
5        (3) (blank); and
6        (4) that the registered qualifying patient has not
7    exceeded his or her adequate medical supply.
8    (i-5) A dispensing organization may dispense medical
9cannabis to an Opioid Alternative Patient Pilot Program
10participant under Section 62 and to a person presenting proof
11of provisional registration under Section 55. Before
12dispensing medical cannabis, the dispensing organization shall
13comply with the requirements of Section 62 or Section 55,
14whichever is applicable, and verify the following:
15        (1) that the written certification presented to the
16    registered dispensing organization is valid and an
17    original document;
18        (2) that the person presenting the written
19    certification is the person identified on the written
20    certification; and
21        (3) that the participant has not exceeded his or her
22    adequate supply.
23    (j) Dispensing organizations shall ensure compliance with
24this limitation by maintaining internal, confidential records
25that include records specifying how much medical cannabis is
26dispensed to the registered qualifying patient and whether it

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1and the address at which the entity is operating under this
2Act. This list shall be published and updated monthly.
3    (c) (Blank). Except for any ownership information released
4pursuant to subsection (b-5) or as otherwise authorized or
5required by law, it is a Class B misdemeanor with a $1,000 fine
6for any person, including an employee or official of the
7Department of Public Health, Department of Financial and
8Professional Regulation, or Department of Agriculture or
9another State agency or local government, to breach the
10confidentiality of information obtained under this Act.    
11    (d) The Department of Public Health, the Department of
12Agriculture, the Illinois State Police, and the Department of
13Financial and Professional Regulation shall not share or
14disclose any existing or non-existing Illinois or national
15criminal history record information. For the purposes of this
16Section, "any existing or non-existing Illinois or national
17criminal history record information" means any Illinois or
18national criminal history record information, including but
19not limited to the lack of or non-existence of these records.
20(Source: P.A. 101-363, eff. 8-9-19; 102-98, eff. 7-15-21;
21102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)
 
22    (410 ILCS 130/150)
23    Sec. 150. Registry identification and registration
24certificate verification.
25    (a) The Department of Public Health shall maintain a

 

 

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

 

 

10400SB3222ham002- 395 -LRB104 19119 BDA 38710 a

1Professional Regulation shall not share or disclose any
2existing or non-existing Illinois or national criminal history
3record information. Notwithstanding any other requirements
4established by this subsection, the Department of Public
5Health shall issue registry cards to qualifying patients, the
6Department of Financial and Professional Regulation may issue
7registration cards to medical cannabis dispensing
8organizations for the period during which the database is
9being established, and the Department of Agriculture may issue
10registration to medical cannabis cultivation organizations for
11the period during which the database is being established.
12    (c) For the purposes of this Section, "any existing or
13non-existing Illinois or national criminal history record
14information" means any Illinois or national criminal history
15record information, including but not limited to the lack of
16or non-existence of these records.
17(Source: P.A. 102-538, eff. 8-20-21.)
 
18    (410 ILCS 130/173)
19    Sec. 173. Conflicts of law. To the extent that any
20provision of this Act conflicts with any Act that allows the
21non-medical recreational use of cannabis, the provisions of
22that Act shall control.
23(Source: P.A. 101-363, eff. 8-9-19.)
 
24    (410 ILCS 130/195)

 

 

10400SB3222ham002- 396 -LRB104 19119 BDA 38710 a

1    Sec. 195. Definitions. For the purposes of this Law:
2    "Cultivation center" has the meaning ascribed to that term
3in the Compassionate Use of Medical Cannabis Program Act.
4    "Department" means the Department of Revenue.
5    "Dispensing organization" has the meaning ascribed to that
6term in the Compassionate Use of Medical Cannabis Program Act.
7    "Gross receipts" means the total selling price, or the
8amount of sale, as defined in this Article, except that, in the
9case of charges and time sales, the amount thereof shall be
10included only when payments are received by the cultivator of
11medical cannabis, by a cultivator.    
12    "Person" means an individual, partnership, corporation, or
13public or private organization.
14    "Qualifying patient" means a qualifying patient registered
15under the Compassionate Use of Medical Cannabis Program Act.
16    "Selling price" or "amount of sale" means the
17consideration for a sale valued in money, whether received in
18money or otherwise, including cash, credits, property, or
19services, determined without any deduction on account of the
20cost of the property sold, the cost of materials used, labor or
21service cost, or any other expense whatsoever. "Selling price"
22or "amount of sale" does not include separately stated charges
23identified on the invoice by cultivators to reimburse
24themselves for their tax liability.    
25(Source: P.A. 101-363, eff. 8-9-19.)
 

 

 

10400SB3222ham002- 397 -LRB104 19119 BDA 38710 a

1    (410 ILCS 130/200)
2    Sec. 200. Tax imposed.
3    (a) Beginning on January 1, 2014 and through June 30, 2026    
4the effective date of this Act, a tax is imposed upon the
5privilege of cultivating medical cannabis at a rate of 7% of
6the sales price per ounce. Beginning July 1, 2026, a tax is
7imposed on the privilege of cultivating medical cannabis at
8the rate of 7% of the gross receipts from the first sale of
9medical cannabis by a cultivator. The sale of any product that
10contains any amount of medical cannabis or any derivative
11thereof is subject to the tax under this Section on the full
12selling price of the product. The Department may determine the
13selling price of the medical cannabis when the seller and
14purchaser are affiliated persons or when the sale and purchase
15of medical cannabis is not an arm's length transaction and a
16value is not established for the medical cannabis. The value
17determined by the Department shall be commensurate with the
18actual price received for products of like quality, character,
19and use in the area. If there are no sales of medical cannabis
20of like quality, character, and use in the area, then the
21Department shall establish a reasonable value based on sales
22of products of like quality, character, and use in the other
23areas of the State, taking into consideration any other
24relevant factors. The proceeds from this tax shall be
25deposited into the Compassionate Use of Medical Cannabis Fund
26created under the Compassionate Use of Medical Cannabis

 

 

10400SB3222ham002- 398 -LRB104 19119 BDA 38710 a

1Program Act. This tax shall be paid by a cultivation center and
2is not the responsibility of a dispensing organization or a
3qualifying patient.
4    (b) The tax imposed under this Act shall be in addition to
5all other occupation or privilege taxes imposed by the State
6of Illinois or by any municipal corporation or political
7subdivision thereof.
8(Source: P.A. 101-363, eff. 8-9-19.)
 
9    (410 ILCS 130/210)
10    Sec. 210. Returns.
11    (a) This subsection (a) applies to returns due on or
12before the effective date of this amendatory Act of the 101st
13General Assembly. On or before the twentieth day of each
14calendar month, every person subject to the tax imposed under
15this Law during the preceding calendar month shall file a
16return with the Department, stating:
17        (1) The name of the taxpayer;
18        (2) The number of ounces of medical cannabis sold to a
19    dispensing organization or a registered qualifying patient
20    during the preceding calendar month;
21        (3) The amount of tax due;
22        (4) The signature of the taxpayer; and
23        (5) Such other reasonable information as the
24    Department may require.
25    If a taxpayer fails to sign a return within 30 days after

 

 

10400SB3222ham002- 399 -LRB104 19119 BDA 38710 a

1the proper notice and demand for signature by the Department,
2the return shall be considered valid and any amount shown to be
3due on the return shall be deemed assessed.
4    The taxpayer shall remit the amount of the tax due to the
5Department at the time the taxpayer files his or her return.
6    (b) Beginning on the effective date of this amendatory Act
7of the 101st General Assembly, Section 60-20 65-20 of the
8Cannabis Regulation and Tax Act shall apply to returns filed
9and taxes paid under this Act to the same extent as if those
10provisions were set forth in full in this Section.
11(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
12    (410 ILCS 130/115.5 rep.)
13    Section 160. The Compassionate Use of Medical Cannabis
14Program Act is amended by repealing Section 115.5.
 
15    Section 165. The Cannabis Regulation and Tax Act is
16amended by changing Sections 1-10, 7-10, 7-15, 7-20, 10-10,
1710-15, 15-10, 15-15, 15-20, 15-25, 15-35, 15-35.10, 15-36,
1815-40, 15-45, 15-70, 15-85, 15-100, 15-135, 15-145, 15-155,
1920-10, 20-15, 20-30, 20-35, 20-45, 25-35, 30-10, 30-30, 30-35,
2030-45, 35-25, 35-30, 35-40, 40-5, 40-25, 40-30, 45-5, 50-5,
2155-5, 55-21, 55-30, 55-65, 55-85, 60-5, 60-10, 65-5, 65-10,
2265-30, 65-38, and 65-42 and by adding Sections 15-24, 15-37,
2320-60, 35-18, 40-50, and 55-22 as follows:
 

 

 

10400SB3222ham002- 400 -LRB104 19119 BDA 38710 a

1    (410 ILCS 705/1-10)
2    Sec. 1-10. Definitions. In this Act:
3    "Adequate medical supply" means 2.5 ounces of usable
4cannabis during a period of 14 days that is derived solely from
5an intrastate source. Subject to the rules of the Department
6of Public Health, a patient may apply for a waiver in which a
7certifying health care professional provides a substantial
8medical basis in a signed, written statement asserting that,
9based on the patient's medical history, in the certifying
10health care professional's professional judgment, 2.5 ounces
11is an insufficient adequate medical supply for a 14-day period
12to properly alleviate the patient's debilitating medical
13condition or symptoms associated with the debilitating medical
14condition. This definition may not be construed to authorize
15the possession of more than 2.5 ounces at any time without
16authority from the Department of Public Health. The pre-mixed
17weight of medical cannabis used in making a cannabis-infused
18product shall apply toward the limit on the total amount of
19medical cannabis a registered qualifying patient may possess
20at any one time.
21    "Adult Use Cultivation Center License" means a license
22issued by the Department of Agriculture that permits a person
23to act as a cultivation center under this Act and any
24administrative rule made in furtherance of this Act.
25    "Adult Use Dispensing Organization License" means a
26license issued by the Department of Financial and Professional

 

 

10400SB3222ham002- 401 -LRB104 19119 BDA 38710 a

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

 

 

10400SB3222ham002- 402 -LRB104 19119 BDA 38710 a

1    "Cannabis" means marijuana, hashish, and other substances
2that are identified as including any parts of the plant
3Cannabis sativa and including derivatives or subspecies, such
4as indica, of all strains of cannabis, whether growing or not;
5the seeds thereof, the resin extracted from any part of the
6plant; and any compound, manufacture, salt, derivative,
7mixture, or preparation of the plant, its seeds, or resin,
8including tetrahydrocannabinol (THC) and all other naturally
9produced cannabinol derivatives, whether produced directly or
10indirectly by extraction; however, "cannabis" does not include
11the mature stalks of the plant, fiber produced from the
12stalks, oil or cake made from the seeds of the plant, any other
13compound, manufacture, salt, derivative, mixture, or
14preparation of the mature stalks (except the resin extracted
15from it), fiber, oil or cake, or the sterilized seed of the
16plant that is incapable of germination. "Cannabis" does not
17include industrial hemp as defined and authorized under the
18Industrial Hemp Act and does not include hemp, industrial
19hemp, or final consumer hemp cannabinoid products as defined
20under the Illinois Hemp Act. "Cannabis" also means cannabis
21flower, concentrate, and cannabis-infused products.
22    "Cannabis business establishment" means a cultivation
23center, craft grower, processing organization, infuser
24organization, dispensing organization, or transporting
25organization.
26    "Cannabis concentrate" means a product derived from

 

 

10400SB3222ham002- 403 -LRB104 19119 BDA 38710 a

1cannabis that is produced by extracting cannabinoids,
2including tetrahydrocannabinol (THC), from the plant through
3the use of propylene glycol, glycerin, butter, olive oil, or
4other typical cooking fats; water, ice, or dry ice; or butane,
5propane, CO2, ethanol, or isopropanol and with the intended
6use of smoking or making a cannabis-infused product. The use
7of any other solvent is expressly prohibited unless and until
8it is approved by the Department of Agriculture.
9    "Cannabis container" means a sealed or resealable,
10traceable, container, or package used for the purpose of
11containment of cannabis or cannabis-infused product during
12transportation.
13    "Cannabis flower" means marijuana, hashish, and other
14substances that are identified as including any parts of the
15plant Cannabis sativa and including derivatives or subspecies,
16such as indica, of all strains of cannabis; including raw
17kief, leaves, and buds, but not resin that has been extracted
18from any part of such plant; nor any compound, manufacture,
19salt, derivative, mixture, or preparation of such plant, its
20seeds, or resin.
21    "Cannabis-infused product" means a beverage, food, oil,
22ointment, tincture, topical formulation, or another product
23containing cannabis or cannabis concentrate that is not
24intended to be smoked.
25    "Cannabis paraphernalia" means equipment, products, or
26materials intended to be used for planting, propagating,

 

 

10400SB3222ham002- 404 -LRB104 19119 BDA 38710 a

1cultivating, growing, harvesting, manufacturing, producing,
2processing, preparing, testing, analyzing, packaging,
3repackaging, storing, containing, concealing, ingesting, or
4otherwise introducing cannabis into the human body.
5    "Cannabis plant monitoring system" or "plant monitoring
6system" means a system that includes, but is not limited to,
7testing and data collection established and maintained by the
8cultivation center, craft grower, or infuser processing    
9organization and that is available to the Department of
10Revenue, the Department of Agriculture, the Department of
11Financial and Professional Regulation, and the Illinois State
12Police for the purposes of documenting each cannabis plant and
13monitoring plant development throughout the life cycle of a
14cannabis plant cultivated for the intended use by a customer
15from seed planting to final packaging.
16    "Cannabis testing facility" means an entity licensed    
17registered by the Department of Agriculture to test cannabis
18for potency and contaminants. Licensed cannabis testing
19facilities are authorized under this Act to transport cannabis
20from cannabis business establishments to the licensed cannabis
21testing facility and are exempt from the transporting
22organization license requirements.    
23    "Cannabis transporter storage site" or "storage site"
24means a secure, physical, nonretail facility operated by an
25eligible transporter that is not affiliated with another
26cannabis business establishment. "Cannabis transporter storage

 

 

10400SB3222ham002- 405 -LRB104 19119 BDA 38710 a

1site" or "storage site" includes a facility that an eligible
2transporter may use to transfer, temporarily store, or both
3transfer and temporarily store cannabis and cannabis infused
4products in accordance with this Act and rules adopted under
5it.    
6    "Clone" means a plant section from a female cannabis plant
7not yet rootbound, growing in a water solution or other
8propagation matrix, that is capable of developing into a new
9plant.
10    "Community College Cannabis Vocational Training Pilot    
11Program faculty participant" means a person who is 21 years of
12age or older, licensed by the Department of Agriculture, and
13is employed or contracted by an Illinois community college to
14provide student instruction using cannabis plants at an
15Illinois Community College.
16    "Community College Cannabis Vocational Training Pilot    
17Program faculty participant Agent Identification Card" means a
18document issued by the Department of Agriculture that
19identifies a person as a Community College Cannabis Vocational
20Training Pilot Program faculty participant.
21    "Conditional Adult Use Dispensing Organization License"
22means a contingent license awarded to applicants for an Adult
23Use Dispensing Organization License that reserves the right to
24an Adult Use Dispensing Organization License if the applicant
25meets certain conditions described in this Act, but does not
26entitle the recipient to begin purchasing or selling cannabis

 

 

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1or cannabis-infused products.
2    "Conditional Adult Use Cultivation Center License" means a
3license awarded to top-scoring applicants for an Adult Use
4Cultivation Center License that reserves the right to an Adult
5Use Cultivation Center License if the applicant meets certain
6conditions as determined by the Department of Agriculture by
7rule, but does not entitle the recipient to begin growing,
8processing, or selling cannabis or cannabis-infused products.
9    "Craft grower" means a facility operated by an
10organization or business that is licensed by the Department of
11Agriculture to cultivate, dry, cure, and package cannabis and
12perform other necessary activities to make cannabis available
13for sale at a dispensing organization or use at an infuser a
14processing organization. A craft grower may contain up to
1514,000 5,000 square feet of canopy space on its premises for
16plants in the flowering state. The Department of Agriculture
17may authorize an increase or decrease of flowering stage
18cultivation space in increments of 3,000 square feet by rule
19based on market need, craft grower capacity, and the
20licensee's history of compliance or noncompliance, with a
21maximum space of 14,000 square feet for cultivating plants in
22the flowering stage, which must be cultivated in all stages of
23growth in an enclosed and secure area. A craft grower may share
24premises with an infuser a processing organization or a
25dispensing organization, or both, provided each licensee
26stores currency and cannabis or cannabis-infused products in a

 

 

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1separate secured vault to which the other licensee does not
2have access or all licensees sharing a vault share more than
350% of the same ownership.
4    "Craft grower agent" means a principal officer, board
5member, employee, or other agent of a craft grower who is 21
6years of age or older.
7    "Craft Grower Agent Identification Card" means a document
8issued by the Department of Agriculture that identifies a
9person as a craft grower agent.
10    "Cultivation center" means a facility operated by an
11organization or business that is licensed by the Department of
12Agriculture to cultivate, process, transport (unless otherwise
13limited by this Act), and perform other necessary activities
14to provide cannabis and cannabis-infused products to cannabis
15business establishments.
16    "Cultivation center agent" means a principal officer,
17board member, employee, or other agent of a cultivation center
18who is 21 years of age or older.
19    "Cultivation Center Agent Identification Card" means a
20document issued by the Department of Agriculture that
21identifies a person as a cultivation center agent.
22    "Currency" means currency and coin of the United States.
23    "Designated caregiver" means a person who assists no more
24than one registered qualifying patient with the patient's
25medical use of cannabis, except the parent or legal guardian
26of a registered qualifying patient may assist each of their

 

 

10400SB3222ham002- 408 -LRB104 19119 BDA 38710 a

1children who are registered qualifying patients.    
2    "Dispensary" means a facility operated by a dispensing
3organization at which activities licensed by this Act may
4occur.
5    "Dispensary Applicant" means the Proposed Dispensing
6Organization Name as stated on an application for a
7Conditional Adult Use Dispensing Organization License.
8    "Dispensing organization" or "dispensary" means a facility
9operated by an organization or business that is licensed by
10the Department of Financial and Professional Regulation to
11acquire cannabis from a cultivation center, craft grower, or
12infuser processing organization licensed by the Department of
13Agriculture, or another dispensary licensed by the Department
14of Financial and Professional Regulation, for the purpose of
15selling or dispensing cannabis, cannabis-infused products,
16cannabis seeds, paraphernalia, or related supplies under this
17Act to purchasers or to qualified registered medical cannabis
18patients and caregivers. As used in this Act, "dispensing
19organization" or "dispensary" includes a registered medical
20cannabis organization as defined in the Compassionate Use of
21Medical Cannabis Program Act or its successor Act that has
22obtained an Early Approval Adult Use Dispensing Organization
23License or Early Approval Adult Use Dispensing Organization
24License at a Secondary Site, or an entity that has obtained a
25Medical Cannabis Dispensing Organization License under Section
2615-37 of this Act.

 

 

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1    "Dispensing organization agent" means a principal officer,
2employee, or agent of a dispensing organization who is 21
3years of age or older.
4    "Dispensing organization agent identification card" means
5a document issued by the Department of Financial and
6Professional Regulation that identifies a person as a
7dispensing organization agent.
8    "Disproportionately Impacted Area" means a census tract or
9comparable geographic area that satisfies the following
10criteria as determined by the Department of Commerce and
11Economic Opportunity, that:
12        (1) meets at least one of the following criteria:
13            (A) the area has a poverty rate of at least 20%
14        according to the latest federal decennial census; or
15            (B) 75% or more of the children in the area
16        participate in the federal free lunch program
17        according to reported statistics from the State Board
18        of Education; or
19            (C) at least 20% of the households in the area
20        receive assistance under the Supplemental Nutrition
21        Assistance Program; or
22            (D) the area has an average unemployment rate, as
23        determined by the Illinois Department of Employment
24        Security, that is more than 120% of the national
25        unemployment average, as determined by the United
26        States Department of Labor, for a period of at least 2

 

 

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1        consecutive calendar years preceding the date of the
2        application; and
3        (2) has high rates of arrest, conviction, and
4    incarceration related to the sale, possession, use,
5    cultivation, manufacture, or transport of cannabis.
6    "Early Approval Adult Use Cultivation Center License"
7means a license that permits a medical cannabis cultivation
8center licensed under the Compassionate Use of Medical
9Cannabis Program Act as of the effective date of this Act to
10begin cultivating, infusing, packaging, transporting (unless
11otherwise provided in this Act), processing, and selling
12cannabis or cannabis-infused product to cannabis business
13establishments for resale to purchasers as permitted by this
14Act as of January 1, 2020.
15    "Early Approval Adult Use Dispensing Organization License"
16means a license that permits a medical cannabis dispensing
17organization licensed under the Compassionate Use of Medical
18Cannabis Program Act as of the effective date of this Act to
19begin selling cannabis or cannabis-infused product to
20purchasers as permitted by this Act as of January 1, 2020.
21    "Early Approval Adult Use Dispensing Organization at a
22secondary site" means a license that permits a medical
23cannabis dispensing organization licensed under the
24Compassionate Use of Medical Cannabis Program Act as of the
25effective date of this Act to begin selling cannabis or
26cannabis-infused product to purchasers as permitted by this

 

 

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1Act on January 1, 2020 at a different dispensary location from
2its existing registered medical dispensary location.
3    "Eligible Tied Applicant" means a Tied Applicant that is
4eligible to participate in the process by which a remaining
5available license is distributed by lot pursuant to a Tied
6Applicant Lottery.
7    "Enclosed, locked facility" means a room, greenhouse,
8building, or other enclosed area equipped with locks or other
9security devices that permit access only by cannabis business
10establishment agents working for the licensed cannabis
11business establishment or acting pursuant to this Act to
12cultivate, process, store, or distribute cannabis.
13    "Enclosed, locked space" means a closet, room, greenhouse,
14building, or other enclosed area equipped with locks or other
15security devices that permit access only by authorized
16individuals under this Act. "Enclosed, locked space" may
17include:
18        (1) a space within a residential building that (i) is
19    the primary residence of the individual cultivating 5 or
20    fewer cannabis plants that are more than 5 inches tall and
21    (ii) includes sleeping quarters and indoor plumbing. The
22    space must only be accessible by a key or code that is
23    different from any key or code that can be used to access
24    the residential building from the exterior; or
25        (2) a structure, such as a shed or greenhouse, that
26    lies on the same plot of land as a residential building

 

 

10400SB3222ham002- 412 -LRB104 19119 BDA 38710 a

1    that (i) includes sleeping quarters and indoor plumbing
2    and (ii) is used as a primary residence by the person
3    cultivating 5 or fewer cannabis plants that are more than
4    5 inches tall, such as a shed or greenhouse. The structure
5    must remain locked when it is unoccupied by people.
6    "Financial institution" has the same meaning as "financial
7organization" as defined in Section 1501 of the Illinois
8Income Tax Act, and also includes the holding companies,
9subsidiaries, and affiliates of such financial organizations.
10    "Flowering stage" means the stage of cultivation where and
11when a cannabis plant is cultivated to produce plant material
12for cannabis products. This includes mature plants as follows:
13        (1) if greater than 2 stigmas are visible at each
14    internode of the plant; or
15        (2) if the cannabis plant is in an area that has been
16    intentionally deprived of light for a period of time
17    intended to produce flower buds and induce maturation,
18    from the moment the light deprivation began through the
19    remainder of the marijuana plant growth cycle.
20    "Individual" means a natural person.
21    "Infuser organization" or "infuser" means a facility
22operated by an organization or business that is licensed by
23the Department of Agriculture to directly incorporate cannabis
24or cannabis concentrate into a product formulation to produce
25a cannabis-infused product.
26    "Infuser organization agent" means a principal officer,

 

 

10400SB3222ham002- 413 -LRB104 19119 BDA 38710 a

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

 

 

10400SB3222ham002- 414 -LRB104 19119 BDA 38710 a

1particular method of election or certification of the bona
2fide labor organization.
3    "Limited access area" means a room or other area under the
4control of a cannabis dispensing organization licensed under
5this Act and upon the licensed premises where cannabis sales
6occur with access limited to purchasers, dispensing
7organization owners and other dispensing organization agents,
8or service professionals conducting business with the
9dispensing organization, or, if sales to registered qualifying
10patients, caregivers, provisional patients, and Opioid
11Alternative Patient Pilot Program participants licensed
12pursuant to the Compassionate Use of Medical Cannabis Program
13Act are also permitted at the dispensary, registered
14qualifying patients, caregivers, provisional patients, and
15Opioid Alternative Patient Pilot Program participants.
16    "Medical cannabis dispensing organization license" means a
17license issued to an entity holding an Adult Use Dispensing
18Organization License enabling the license holder to acquire
19cannabis or cannabis-infused products from a registered
20cultivation center, craft grower, infuser organization, or
21transporting organization for the purpose of dispensing
22cannabis, cannabis-infused products, paraphernalia, or related
23supplies and educational materials to registered qualifying
24patients, provisional patients, designated caregivers, and
25Opioid Alternative Patient Program participants.    
26    "Member of an impacted family" means an individual who has

 

 

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1a parent, legal guardian, child, spouse, or dependent, or was
2a dependent of an individual who, prior to the effective date
3of this Act, was arrested for, convicted of, or adjudicated
4delinquent for any offense that is eligible for expungement
5under this Act.
6    "Mother plant" means a cannabis plant that is cultivated
7or maintained for the purpose of generating clones, and that
8will not be used to produce plant material for sale to an
9infuser or dispensing organization.
10    "Opioid Alternative Patient Program participant" means an
11individual who has received a valid written certification to
12participate in the Opioid Alternative Patient Program for a
13medical condition for which an opioid has been or could be
14prescribed by a certifying health care professional based on
15generally accepted standards of care.    
16    "Ordinary public view" means within the sight line with
17normal visual range of a person, unassisted by visual aids,
18from a public street or sidewalk adjacent to real property, or
19from within an adjacent property.
20    "Ownership and control" means ownership of at least 51% of
21the business, including corporate stock if a corporation, and
22control over the management and day-to-day operations of the
23business and an interest in the capital, assets, and profits
24and losses of the business proportionate to percentage of
25ownership.
26    "Person" means a natural individual, firm, partnership,

 

 

10400SB3222ham002- 416 -LRB104 19119 BDA 38710 a

1association, joint stock company, joint venture, public or
2private corporation, limited liability company, or a receiver,
3executor, trustee, guardian, or other representative appointed
4by order of any court.
5    "Possession limit" means the amount of cannabis under
6Section 10-10 that may be possessed at any one time by a person
721 years of age or older or who is a registered qualifying
8medical cannabis patient, designated or caregiver, provisional
9patient, or Opioid Alternative Patient Program participant    
10under the Compassionate Use of Medical Cannabis Program Act.
11    "Primary residence" means a dwelling where a person
12usually stays or stays more often than other locations. It may
13be determined by, without limitation, presence, tax filings,
14address on an Illinois driver's license, an Illinois
15Identification Card, an Illinois Person with a Disability
16Identification Card, or voter registration. No person may have
17more than one primary residence.
18    "Principal officer" includes a cannabis business
19establishment applicant or licensed cannabis business
20establishment's board member, owner with more than 5% 1%    
21interest of the total cannabis business establishment or more
22than 5% interest of the total cannabis business establishment
23of a publicly traded company, president, vice president,
24secretary, treasurer, partner, officer, member, manager
25member, or person with a profit sharing, financial interest,
26or revenue sharing arrangement. The definition includes a

 

 

10400SB3222ham002- 417 -LRB104 19119 BDA 38710 a

1person with authority to control the cannabis business
2establishment, a person who assumes responsibility for the
3debts of the cannabis business establishment and who is
4further defined in this Act.
5    "Primary residence" means a dwelling where a person
6usually stays or stays more often than other locations. It may
7be determined by, without limitation, presence, tax filings;
8address on an Illinois driver's license, an Illinois
9Identification Card, or an Illinois Person with a Disability
10Identification Card; or voter registration. No person may have
11more than one primary residence.
12    "Processor license" means a license issued to an infuser
13organization that is licensed by the Department of Agriculture
14under subsection (f) of Section 35-31 to extract raw materials
15from cannabis flower.    
16    "Provisional patient" means a qualifying patient who has
17received a provisional registration from the Department of
18Public Health.    
19    "Processing organization" or "processor" means a facility
20operated by an organization or business that is licensed by
21the Department of Agriculture to either extract constituent
22chemicals or compounds to produce cannabis concentrate or
23incorporate cannabis or cannabis concentrate into a product
24formulation to produce a cannabis product.
25    "Processing organization agent" means a principal officer,
26board member, employee, or agent of a processing organization.

 

 

10400SB3222ham002- 418 -LRB104 19119 BDA 38710 a

1    "Processing organization agent identification card" means
2a document issued by the Department of Agriculture that
3identifies a person as a processing organization agent.
4    "Purchaser" means a person 21 years of age or older who
5acquires cannabis for a valuable consideration. "Purchaser"
6includes does not include a cardholder under the Compassionate
7Use of Medical Cannabis Program Act using the cardholder's
8card at a dispensing organization that is authorized to serve
9registered qualifying patients, provisional patients,
10designated caregivers, and Opioid Alternative Patient Program
11participants.
12    "Qualifying Applicant" means an applicant that submitted
13an application pursuant to Section 15-30 that received at
14least 85% of 250 application points available under Section
1515-30 as the applicant's final score and meets the definition
16of "Social Equity Applicant" as set forth under this Section.
17    "Qualifying patient" or "qualified patient" means a person
18who has been diagnosed by a certifying health care
19professional as having a debilitating medical condition as
20defined under the Compassionate Use of Medical Cannabis
21Program Act.    
22    "Qualifying Social Equity Justice Involved Applicant"
23means an applicant that submitted an application pursuant to
24Section 15-30 that received at least 85% of 250 application
25points available under Section 15-30 as the applicant's final
26score and meets the criteria of either paragraph (1) or (2) of

 

 

10400SB3222ham002- 419 -LRB104 19119 BDA 38710 a

1the definition of "Social Equity Applicant" as set forth under
2this Section.
3    "Qualified Social Equity Applicant" means a Social Equity
4Applicant who has been awarded a conditional license under
5this Act to operate a cannabis business establishment.
6    "Resided" means an individual's primary residence was
7located within the relevant geographic area as established by
82 of the following:
9        (1) a signed lease agreement that includes the
10    applicant's name;
11        (2) a property deed that includes the applicant's
12    name;
13        (3) school records;
14        (4) a voter registration card;
15        (5) an Illinois driver's license, an Illinois
16    Identification Card, or an Illinois Person with a
17    Disability Identification Card;
18        (6) a paycheck stub;
19        (7) a utility bill;
20        (8) tax records; or
21        (9) any other proof of residency or other information
22    necessary to establish residence as provided by rule.
23    "Smoking" means the inhalation of smoke caused by the
24combustion of cannabis.
25    "Social Equity Applicant" means an applicant that is an
26Illinois resident that meets one of the following criteria:

 

 

10400SB3222ham002- 420 -LRB104 19119 BDA 38710 a

1        (1) an applicant with at least 51% ownership and
2    control by one or more individuals who have resided for at
3    least 5 of the preceding 10 years in a Disproportionately
4    Impacted Area;
5        (2) an applicant with at least 51% ownership and
6    control by one or more individuals who:
7            (i) have been arrested for, convicted of, or
8        adjudicated delinquent for any offense that is
9        eligible for expungement under this Act; or
10            (ii) is a member of an impacted family;
11        (3) for applicants with a minimum of 10 full-time
12    employees, an applicant with at least 51% of current
13    employees who:
14            (i) currently reside in a Disproportionately
15        Impacted Area; or
16            (ii) have been arrested for, convicted of, or
17        adjudicated delinquent for any offense that is
18        eligible for expungement under this Act or are members    
19        member of an impacted family that have been impacted
20        by arrests, convictions, or adjudications of
21        delinquency that are eligible for expungement under
22        this Act.
23    Nothing in this Act shall be construed to preempt or limit
24the duties of any employer under the Job Opportunities for
25Qualified Applicants Act. Nothing in this Act shall permit an
26employer to require an employee to disclose sealed or expunged

 

 

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1offenses, unless otherwise required by law.
2    "Social Equity Lottery Licensee" means a holder of an
3adult use cannabis dispensary license or a conditional adult
4use cannabis dispensary license awarded through a lottery held
5under subsection (c) of Section 15-35.20 of this Act.    
6    "Tied Applicant" means an application submitted by a
7Dispensary Applicant pursuant to Section 15-30 that received
8the same number of application points under Section 15-30 as
9the Dispensary Applicant's final score as one or more
10top-scoring applications in the same BLS Region and would have
11been awarded a license but for the one or more other
12top-scoring applications that received the same number of
13application points. Each application for which a Dispensary
14Applicant was required to pay a required application fee for
15the application period ending January 2, 2020 shall be
16considered an application of a separate Tied Applicant.
17    "Tied Applicant Lottery" means the process established
18under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
19Use Dispensing Organization Licenses pursuant to Sections
2015-25 and 15-30 among Eligible Tied Applicants.
21    "Tincture" means a cannabis-infused solution, typically
22comprised of alcohol, glycerin, or vegetable oils, derived
23either directly from the cannabis plant or from a processed
24cannabis extract. A tincture is not an alcoholic liquor as
25defined in the Liquor Control Act of 1934. A tincture shall
26include a calibrated dropper or other similar device capable

 

 

10400SB3222ham002- 422 -LRB104 19119 BDA 38710 a

1of accurately measuring servings.
2    "Transporting organization" or "transporter" means an
3organization or business that is licensed by the Department of
4Agriculture to transport cannabis or cannabis-infused product
5on behalf of a cannabis business establishment or a community
6college licensed under the Community College Cannabis
7Vocational Training Pilot Program.
8    "Transporting organization agent" means a principal
9officer, board member, employee, or agent of a transporting
10organization.
11    "Transporting organization agent identification card"
12means a document issued by the Department of Agriculture that
13identifies a person as a transporting organization agent.
14    "Unit of local government" means any county, city,
15village, or incorporated town.
16    "Vegetative stage" means the stage of cultivation in which
17a cannabis plant is propagated to produce additional cannabis
18plants or reach a sufficient size for production. This
19includes seedlings, clones, mothers, and other immature
20cannabis plants as follows:
21        (1) if the cannabis plant is in an area that has not
22    been intentionally deprived of light for a period of time
23    intended to produce flower buds and induce maturation, it
24    has no more than 2 stigmas visible at each internode of the
25    cannabis plant; or
26        (2) any cannabis plant that is cultivated solely for

 

 

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1    the purpose of propagating clones and is never used to
2    produce cannabis.
3(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
4102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
55-13-22.)
 
6    (410 ILCS 705/7-10)
7    Sec. 7-10. Cannabis Business Development Fund.
8    (a) There is created in the State treasury a special fund,
9which shall be held separate and apart from all other State
10moneys, to be known as the Cannabis Business Development Fund.
11The Cannabis Business Development Fund shall be exclusively
12used for the following purposes:
13        (1) to provide low-interest rate loans to Qualified
14    Social Equity Applicants and holders of a conditional or
15    adult use dispensing organization license issued pursuant
16    to Section 15-25, 15-35, or 15-35.10 or subsection (c) of
17    Section 15-35.20 to pay for ordinary and necessary
18    expenses to start and operate a cannabis business
19    establishment permitted by this Act, so long as the entity
20    meets the definition of a "Social Equity Applicant"
21    pursuant to Section 1-10; the Department of Commerce and
22    Economic Opportunity may review that an applicant for a
23    loan continues to meet the statutory definition of a
24    "Social Equity Applicant";
25        (2) to provide grants to Qualified Social Equity

 

 

10400SB3222ham002- 424 -LRB104 19119 BDA 38710 a

1    Applicants and holders of a conditional or adult use
2    dispensing organization license issued pursuant to Section
3    15-25, 15-35, or 15-35.10 or subsection (c) of Section
4    15-35.20 to pay for ordinary and necessary expenses to
5    start and operate a cannabis business establishment
6    permitted by this Act, so long as the entity meets the
7    definition of a "Social Equity Applicant" pursuant to
8    Section 1-10; the Department of Commerce and Economic
9    Opportunity may review that an applicant for a loan
10    continues to meet the statutory definition of a "Social
11    Equity Applicant";
12        (3) to compensate the Department of Commerce and
13    Economic Opportunity for any costs related to the
14    provision of financial assistance low-interest loans and
15    grants to Qualified Social Equity Applicants and holders
16    of a conditional or adult use dispensing organization
17    license issued pursuant to Section 15-25, 15-35, or
18    15-35.10 or subsection (c) of Section 15-35.20, so long as
19    the entity meets the definition of a "Social Equity
20    Applicant" pursuant to Section 1-10; the Department of
21    Commerce and Economic Opportunity may review that an
22    applicant for a loan continues to meet the statutory
23    definition of a "Social Equity Applicant";
24        (4) to pay for outreach that may be provided or
25    targeted to attract and support Social Equity Applicants,    
26    and Qualified Social Equity Applicants, and holders of a

 

 

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1    conditional or adult use dispensing organization license
2    issued pursuant to Section 15-25, 15-35, or 15-35.10 or
3    subsection (c) of Section 15-35.20, so long as the entity
4    meets the definition of a "Social Equity Applicant"
5    pursuant to Section 1-10; the Department of Commerce and
6    Economic Opportunity may review that an applicant for a
7    loan continues to meet the statutory definition of a
8    "Social Equity Applicant";
9        (5) to provide financial assistance to, to support
10    lending to, to support private investment in, or to
11    facilitate access to the facilities needed to commence
12    operations as a cannabis business establishment for
13    Qualified Social Equity Applicants, Social Equity Lottery
14    Licensees, and holders of a conditional or adult use
15    dispensing organization licenses issued pursuant to
16    Section 15-25, 15-35, 15-35.10, or subsection (c) of
17    Section 15-35.20, so long as the entity meets the
18    definition of a "Social Equity Applicant" pursuant to
19    Section 1-10; the Department of Commerce and Economic
20    Opportunity may review that an applicant for a loan
21    continues to meet the statutory definition of a "Social
22    Equity Applicant" (blank);
23        (6) to conduct any study or research concerning the
24    participation of minorities, women, veterans, or people
25    with disabilities in the cannabis industry, including,
26    without limitation, barriers to such individuals entering

 

 

10400SB3222ham002- 426 -LRB104 19119 BDA 38710 a

1    the industry as equity owners of cannabis business
2    establishments;
3        (6.5) to enter into financial intermediary agreements
4    to facilitate lending to or investment in Qualified Social
5    Equity Applicants and holders of a conditional or adult
6    use dispensing organization licenses issued pursuant to
7    Section 15-25, 15-35, or 15-35.10 or subsection (c) of
8    Section 15-35.20, with the goal of ensuring the
9    availability of facilities necessary to operate a cannabis
10    business establishment, so long as the entity meets the
11    definition of a "Social Equity Applicant" pursuant to
12    Section 1-10; the Department of Commerce and Economic
13    Opportunity may review that an applicant for a loan
14    continues to meet the statutory definition of a "Social
15    Equity Applicant";    
16        (7) (blank); and
17        (8) to assist with job training and technical
18    assistance for residents in Disproportionately Impacted
19    Areas.
20    (b) All moneys collected under Sections 15-15 and 15-20
21for Early Approval Adult Use Dispensing Organization Licenses
22issued before January 1, 2021 and remunerations made as a
23result of transfers of permits awarded to Qualified Social
24Equity Applicants shall be deposited into the Cannabis
25Business Development Fund.
26    (c) (Blank).

 

 

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1    (c-5) In addition to any other transfers that may be
2provided for by law, on July 1, 2023, or as soon thereafter as
3practical, the State Comptroller shall direct and the State
4Treasurer shall transfer the sum of $40,000,000 from the
5Compassionate Use of Medical Cannabis Fund to the Cannabis
6Business Development Fund.
7    (d) Notwithstanding any other law to the contrary, the
8Cannabis Business Development Fund is not subject to sweeps,
9administrative charge-backs, or any other fiscal or budgetary
10maneuver that would in any way transfer any amounts from the
11Cannabis Business Development Fund into any other fund of the
12State.
13(Source: P.A. 103-8, eff. 6-7-23.)
 
14    (410 ILCS 705/7-15)
15    Sec. 7-15. Loans, financial assistance, and grants to
16Qualified Social Equity Applicants and Social Equity Lottery
17Licensees.
18    (a) The Department of Commerce and Economic Opportunity
19shall establish grant, and loan, and financial assistance    
20programs, subject to appropriations from the Cannabis Business
21Development Fund, for the purposes of providing financial
22assistance, loans, grants, and technical assistance to
23Qualified Social Equity Applicants and holders of a
24conditional or adult use dispensing organization licenses
25issued pursuant to Section 15-25, 15-35, 15-35.10, or

 

 

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1subsection (c) of Section 15-35.20, so long as the entity
2meets the definition of a "Social Equity Applicant" pursuant
3to Section 1-10; the Department of Commerce and Economic
4Opportunity may review that an applicant for a loan continues
5to meet the statutory definition of a "Social Equity
6Applicant".
7    (b) The Department of Commerce and Economic Opportunity
8has the power to:
9        (1) provide Cannabis Social Equity loans, financial
10    assistance, and grants from appropriations from the
11    Cannabis Business Development Fund to assist Qualified
12    Social Equity Applicants and holders of a conditional or
13    adult use dispensing organization license issued pursuant
14    to Section 15-25, 15-35, 15-35.10, or subsection (c) of
15    Section 15-35.20 in gaining entry to, and successfully
16    operating in, the State's regulated cannabis marketplace,
17    so long as the entity meets the definition of a "Social
18    Equity Applicant" pursuant to Section 1-10; the Department
19    of Commerce and Economic Opportunity may review that an
20    applicant for a loan continues to meet the statutory
21    definition of a "Social Equity Applicant";
22        (2) enter into agreements that set forth terms and
23    conditions of the financial assistance, accept funds or
24    grants, and engage in cooperation with private entities
25    and agencies of State or local government to carry out the
26    purposes of this Section;

 

 

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1        (3) fix, determine, charge, and collect any premiums,
2    fees, charges, costs and expenses, including application
3    fees, commitment fees, program fees, financing charges, or
4    publication fees in connection with its activities under
5    this Section;
6        (4) coordinate assistance under the financial
7    assistance these loan programs with activities of the
8    Illinois Department of Financial and Professional
9    Regulation, the Illinois Department of Agriculture, and
10    other agencies as needed to maximize the effectiveness and
11    efficiency of this Act;
12        (5) provide staff, administration, and related support
13    required to administer this Section;
14        (6) take whatever actions are necessary or appropriate
15    to protect the State's interest in the event of
16    bankruptcy, default, foreclosure, or noncompliance with
17    the terms and conditions of financial assistance provided
18    under this Section, including the ability to recapture
19    funds if the recipient is found to be noncompliant with
20    the terms and conditions of the financial assistance
21    agreement;
22        (6.5) enter into financial intermediary agreements and
23    charge fees to financial institutions required to
24    facilitate lending to or investment in Qualified Social
25    Equity Applicants and holders of a conditional or adult
26    use dispensing organization licenses issued pursuant to

 

 

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1    Section 15-25, 15-35, 15-35.10, or subsection (c) of
2    Section 15-35.20, with the goal of ensuring the
3    availability of facilities necessary to operate a cannabis
4    business establishment, so long as the entity meets the
5    definition of a "Social Equity Applicant" pursuant to
6    Section 1-10; the Department of Commerce and Economic
7    Opportunity may review that an applicant for a loan
8    continues to meet the statutory definition of a "Social
9    Equity Applicant";    
10        (7) establish application, notification, contract, and
11    other forms, procedures, or rules deemed necessary and
12    appropriate; and
13        (8) utilize vendors or contract work to carry out the
14    purposes of this Act; and .
15        (9) review that an applicant for financial assistance
16    meets the statutory definition of a "Social Equity
17    Applicant" as that term is defined in Section 1-10 of this
18    Act, for the purposes of providing financial assistance
19    pursuant to this Section.    
20    (c) Financial assistance Loans made under this Section:
21        (1) shall only be made if, in the Department's
22    judgment, the project furthers the goals set forth in this
23    Act; and    
24        (2) shall be in such principal amount and form and
25    contain such terms and provisions with respect to
26    security, insurance, reporting, delinquency charges,

 

 

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1    default remedies, forgiveness, and other matters as the
2    Department shall determine appropriate to protect the
3    public interest and to be consistent with the purposes of
4    this Section. The terms and provisions may be less than
5    required for similar loans not covered by this Section;
6    and .
7        (3) may be distributed by lottery if the Department
8    determines that the amount of funding available is
9    insufficient to provide an adequate amount of funding for
10    all of the applicants eligible to receive financial
11    assistance. The Department may communicate the number of
12    awards for financial assistance available on the
13    application for financial assistance. The Department may
14    use competitive criteria to establish which applicants are
15    eligible to receive financial assistance.    
16    (d) Grants made under this Section shall be awarded on a
17competitive and annual basis in compliance with under the
18Grant Accountability and Transparency Act; however, to the
19extent registration with the federal System for Award
20Management requires a grant applicant to certify compliance
21with all federal laws, the grant applicants under this Section
22shall not be required to register for a unique entity
23identifier through the federal System for Award Management to
24be qualified to receive financial assistance under this
25Section, so long as federal law prohibits the cultivation and
26sale of cannabis. Grants made under this Section shall further

 

 

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1and promote the goals of this Act, including promotion of
2Social Equity Applicants, Qualified Social Equity Applicants,
3and holders of a conditional or adult use dispensing
4organization license issued pursuant to Section 15-25, 15-35,
515-35.10, or subsection (c) of Section 15-35.20, so long as
6the entity meets the definition of a "Social Equity Applicant"
7pursuant to Section 1-10 and the Department of Commerce and
8Economic Opportunity may review that an applicant for a loan
9continues to meet the statutory definition of a "Social Equity
10Applicant", as well as including promotion of job training and
11workforce development, and technical assistance to Social
12Equity Applicants, Qualified Social Equity Applicants, and
13holders of a conditional or adult use dispensing organization
14licenses issued pursuant to Section 15-25, 15-35, 15-35.10, or
15subsection (c) of Section 15-35.20, so long as the entity
16meets the definition of a "Social Equity Applicant" pursuant
17to Section 1-10 and the Department of Commerce and Economic
18Opportunity may review that an applicant for a loan continues
19to meet the statutory definition of a "Social Equity
20Applicant".
21    (d-5) Financial intermediary agreements to provide
22financial assistance must further the goals set forth in this
23Act and shall result in financing or lease costs that are
24affordable or below market rate.    
25    (e) Beginning January 1, 2021 and each year thereafter,
26the Department shall annually report to the Governor and the

 

 

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1General Assembly on the outcomes and effectiveness of this
2Section that shall include the following:
3        (1) the number of persons or businesses receiving
4    financial assistance under this Section;
5        (2) the amount in financial assistance awarded in the
6    aggregate, in addition to the amount of loans made that
7    are outstanding and the amount of grants awarded;
8        (3) the location of the project engaged in by the
9    person or business; and
10        (4) if applicable, the number of new jobs and other
11    forms of economic output created as a result of the
12    financial assistance.
13    (f) The Department of Commerce and Economic Opportunity
14shall include engagement with individuals with limited English
15proficiency as part of its outreach provided or targeted to
16attract and support Social Equity Applicants.
17(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
18    (410 ILCS 705/7-20)
19    Sec. 7-20. Fee waivers.
20    (a) For Social Equity Applicants and any dispensing
21organization issued an adult use dispensing organization
22license pursuant to a lottery conducted under subsection (c)
23of Section 15-35.20 of this Act, the Department of Financial
24and Professional Regulation and the Department of Agriculture
25shall waive 50% of any nonrefundable license application fees,

 

 

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1any nonrefundable fees associated with purchasing a license to
2operate a cannabis business establishment, and any surety bond
3or other financial requirements, provided a Social Equity
4Applicant meets the following qualifications at the time the
5payment is due:
6        (1) the applicant, including all individuals and
7    entities with 10% or greater ownership and all parent
8    companies, subsidiaries, and affiliates, has less than a
9    total of $750,000 of gross income in the previous calendar
10    year; and
11        (2) the applicant, including all individuals and
12    entities with 10% or greater ownership and all parent
13    companies, subsidiaries, and affiliates, has no more than
14    2 other licenses for cannabis business establishments in
15    the State of Illinois.
16    (b) The Department of Financial and Professional
17Regulation and the Department of Agriculture may require
18Social Equity Applicants to attest that they meet the
19requirements for a fee waiver as provided in subsection (a)
20and to provide evidence of annual total income in the previous
21calendar year.
22    (c) If the Department of Financial and Professional
23Regulation or the Department of Agriculture determines that an
24applicant who applied as a Social Equity Applicant is not
25eligible for such status, the applicant shall be provided an
26additional 10 days to provide alternative evidence that he or

 

 

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1she qualifies as a Social Equity Applicant. Alternatively, the
2applicant may pay the remainder of the waived fee and be
3considered as a non-Social Equity Applicant. If the applicant
4cannot do either, then the Departments may keep the initial
5application fee and the application shall not be graded.
6    (d) The Department of Agriculture shall provide hardship
7waivers for craft grower, infuser, and transporter license and
8renewal fees due to the Department pursuant to the following:
9        (1) The craft grower, infuser, and transporter
10    organization attests that the craft grower, infuser, and
11    transporter organization or applicant for renewal,
12    including all individuals and entities with 10% or greater
13    ownership and all parent companies, subsidiaries, and
14    affiliates, have no more than 2 other licenses for
15    cannabis business establishments in the State.
16        (2) For craft grower, infuser, and transporter
17    organizations that have a total of $50,000 or less of
18    reported gross income for the prior fiscal year, the
19    Department shall waive the full license or renewal fee.
20    The craft grower, infuser, and transporter organization
21    shall verify its income to the Department.
22        (3) For craft grower, infuser, and transporter
23    organizations that have a gross income of more than
24    $50,000 and less than or equal to $750,000, the Department
25    shall waive 50% of the full license or renewal fee. The
26    craft grower, infuser, and transporter organization shall

 

 

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1    verify its income to the Department.    
2(Source: P.A. 101-27, eff. 6-25-19.)
 
3    (410 ILCS 705/10-10)
4    Sec. 10-10. Possession limit.
5    (a) Except if otherwise authorized by this Act, for a
6person who is 21 years of age or older and a resident of this
7State, the possession limit is as follows:
8        (1) 60 30 grams of cannabis flower;
9        (2) no more than 1000 500 milligrams of THC contained
10    in cannabis-infused product;
11        (3) 10 5 grams of cannabis concentrate; and
12        (4) for registered qualifying patients, any cannabis
13    produced by cannabis plants grown under subsection (b) of
14    Section 10-5, provided any amount of cannabis produced in
15    excess of 60 30 grams of raw cannabis or its equivalent
16    must remain secured within the residence or residential
17    property in which it was grown.
18    (b) For a person who is 21 years of age or older and who is
19not a resident of this State, the possession limit is:
20        (1) 30 15 grams of cannabis flower;
21        (2) 5 2.5 grams of cannabis concentrate; and
22        (3) 500 250 milligrams of THC contained in a
23    cannabis-infused product.
24    (c) The possession limits found in subsections (a) and (b)
25of this Section are to be considered cumulative.

 

 

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1    (d) No person shall knowingly obtain, seek to obtain, or
2possess an amount of cannabis from a dispensing organization
3or craft grower that would cause him or her to exceed the
4possession limit under this Section, including cannabis that
5is cultivated by a person under this Act or obtained as a
6qualified registered medical patient, provisional patient,
7designated caregiver, or Opioid Alternative Patient Program
8participant.
9    (d-1) No qualified patient, provisional patient,
10designated caregiver, or Opioid Alternative Patient Program
11participant shall knowingly obtain, seek to obtain, or
12possess, individually or collectively, an amount that would
13cause the individual to exceed that individual's adequate
14medical supply under the Compassionate Use of Medical Cannabis
15Program Act.
16    (e) (Blank). Cannabis and cannabis-derived substances
17regulated under the Industrial Hemp Act are not covered by
18this Act.    
19(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
20    (410 ILCS 705/10-15)
21    Sec. 10-15. Persons under 21 years of age.
22    (a) Nothing in this Act is intended to permit the transfer
23of cannabis, with or without remuneration, to a person under
2421 years of age, or to allow a person under 21 years of age to
25purchase, possess, use, process, transport, grow, or consume

 

 

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1cannabis except where authorized by this Act, the
2Compassionate Use of Medical Cannabis Program Act, or by the
3Community College Cannabis Vocational Pilot Program.
4    (b) Notwithstanding any other provisions of law
5authorizing the possession of medical cannabis or
6cannabis-infused products by a qualified registered medical
7patient, provisional patient, designated caregiver, or Opioid
8Alternative Patient Program participant, nothing in this Act
9authorizes a person who is under 21 years of age to possess
10cannabis. A person under 21 years of age with cannabis in his
11or her possession is guilty of a civil law violation as
12outlined in paragraph (a) of Section 4 of the Cannabis Control
13Act.
14    (c) If the person under the age of 21 was in a motor
15vehicle at the time of the offense, the Secretary of State may
16suspend or revoke the driving privileges of any person for a
17violation of this Section under Section 6-206 of the Illinois
18Vehicle Code and the rules adopted under it.
19    (d) It is unlawful for any parent or guardian to knowingly
20permit his or her residence, any other private property under
21his or her control, or any vehicle, conveyance, or watercraft
22under his or her control to be used by an invitee of the
23parent's child or the guardian's ward, if the invitee is under
24the age of 21, in a manner that constitutes a violation of this
25Section. A parent or guardian is deemed to have knowingly
26permitted his or her residence, any other private property

 

 

10400SB3222ham002- 439 -LRB104 19119 BDA 38710 a

1under his or her control, or any vehicle, conveyance, or
2watercraft under his or her control to be used in violation of
3this Section if he or she knowingly authorizes or permits
4consumption of cannabis by underage invitees. Any person who
5violates this subsection (d) is guilty of a Class A
6misdemeanor and the person's sentence shall include, but shall
7not be limited to, a fine of not less than $500. If a violation
8of this subsection (d) directly or indirectly results in great
9bodily harm or death to any person, the person violating this
10subsection is guilty of a Class 4 felony. In this subsection
11(d), where the residence or other property has an owner and a
12tenant or lessee, the trier of fact may infer that the
13residence or other property is occupied only by the tenant or
14lessee.
15(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
16    (410 ILCS 705/15-10)
17    Sec. 15-10. Medical cannabis dispensing organization
18exemption. Beginning 90 days after the effective date of this
19amendatory Act of the 104th General Assembly, this This    
20Article does not apply to medical cannabis dispensing
21organizations registered pursuant to Section 15-15 or Section
2215-37 of this Act under the Compassionate Use of Medical
23Cannabis Pilot Program Act, except where otherwise specified.
24(Source: P.A. 101-27, eff. 6-25-19.)
 

 

 

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1    (410 ILCS 705/15-15)
2    Sec. 15-15. Early Approval Adult Use Dispensing
3Organization License.
4    (a) Any medical cannabis dispensing organization holding a
5valid registration under the Compassionate Use of Medical
6Cannabis Program Act as of the effective date of this Act may,
7within 60 days of the effective date of this Act, apply to the
8Department for an Early Approval Adult Use Dispensing
9Organization License to serve purchasers at any medical
10cannabis dispensing location in operation on the effective
11date of this Act, pursuant to this Section.
12    (b) A medical cannabis dispensing organization seeking
13issuance of an Early Approval Adult Use Dispensing
14Organization License to serve purchasers at any medical
15cannabis dispensing location in operation as of the effective
16date of this Act shall submit an application on forms provided
17by the Department. The application must be submitted by the
18same person or entity that holds the medical cannabis
19dispensing organization registration and include the
20following:
21        (1) Payment of a nonrefundable fee of $30,000 to be
22    deposited into the Cannabis Regulation Fund;
23        (2) Proof of registration as a medical cannabis
24    dispensing organization that is in good standing;
25        (3) Certification that the applicant will comply with
26    the requirements contained in the Compassionate Use of

 

 

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1    Medical Cannabis Program Act except as provided in this
2    Act;
3        (4) The legal name of the dispensing organization;
4        (5) The physical address of the dispensing
5    organization;
6        (6) The name, address, social security number, and
7    date of birth of each principal officer and board member
8    of the dispensing organization, each of whom must be at
9    least 21 years of age;
10        (7) A nonrefundable Cannabis Business Development Fee
11    equal to 3% of the dispensing organization's total sales
12    between June 1, 2018 to June 1, 2019, or $100,000,
13    whichever is less, to be deposited into the Cannabis
14    Business Development Fund; and
15        (8) Identification of one of the following Social
16    Equity Inclusion Plans to be completed by March 31, 2021:
17            (A) Make a contribution of 3% of total sales from
18        June 1, 2018 to June 1, 2019, or $100,000, whichever is
19        less, to the Cannabis Business Development Fund. This
20        is in addition to the fee required by item (7) of this
21        subsection (b);
22            (B) Make a grant of 3% of total sales from June 1,
23        2018 to June 1, 2019, or $100,000, whichever is less,
24        to a cannabis industry training or education program
25        at an Illinois community college as defined in the
26        Public Community College Act;

 

 

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

 

 

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1        requirement of this subsection by completing another
2        item from this subsection; or
3            (E) Participate in a sponsorship program for at
4        least 2 years approved by the Department of Commerce
5        and Economic Opportunity in which an Early Approval
6        Adult Use Dispensing Organization License holder
7        agrees to provide an interest-free loan of at least
8        $200,000 to a Social Equity Applicant. The sponsor
9        shall not take an ownership stake in any cannabis
10        business establishment receiving sponsorship services
11        to comply with this subsection.
12    (b-5) Beginning 90 days after the effective date of this
13amendatory Act of the 102nd General Assembly, an Early
14Approval Adult Use Dispensing Organization licensee whose
15license was issued pursuant to this Section may apply to
16relocate within the same geographic district where its
17existing associated medical cannabis dispensing organization
18dispensary licensed under the Compassionate Use of Medical
19Cannabis Program Act is authorized to operate. A request to
20relocate under this subsection is subject to approval by the
21Department. An Early Approval Adult Use Dispensing
22Organization's application to relocate its license under this
23subsection shall be deemed approved 30 days following the
24submission of a complete application to relocate, unless
25sooner approved or denied in writing by the Department. If an
26application to relocate is denied, the Department shall

 

 

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1provide, in writing, the specific reason for denial.
2    An Early Approval Adult Use Dispensing Organization may
3request to relocate under this subsection if:
4        (1) its existing location is within the boundaries of
5    a unit of local government that prohibits the sale of
6    adult use cannabis; or
7        (2) the Early Approval Adult Use Dispensing
8    Organization has obtained the approval of the municipality
9    or, if outside the boundaries of a municipality in an
10    unincorporated area of the county, the approval of the
11    county where the existing license is located to move to
12    another location within that unit of local government.
13    At no time may an Early Approval Adult Use Dispensing
14Organization dispensary licensed under this Section operate in
15a separate facility from its associated medical cannabis
16dispensing organization dispensary licensed under the
17Compassionate Use of Medical Cannabis Program Act. The
18relocation of an Early Approval Adult Use Dispensing
19Organization License under this subsection shall be subject to
20Sections 55-25 and 55-28 of this Act.
21    (c) The license fee required by paragraph (1) of
22subsection (b) of this Section shall be in addition to any
23license fee required for the renewal of a registered medical
24cannabis dispensing organization license.
25    (d) Applicants must submit all required information,
26including the requirements in subsection (b) of this Section,

 

 

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1to the Department. Failure by an applicant to submit all
2required information may result in the application being
3disqualified.
4    (e) If the Department receives an application that fails
5to provide the required elements contained in subsection (b),
6the Department shall issue a deficiency notice to the
7applicant. The applicant shall have 10 calendar days from the
8date of the deficiency notice to submit complete information.
9Applications that are still incomplete after this opportunity
10to cure may be disqualified.
11    (f) If an applicant meets all the requirements of
12subsection (b) of this Section, the Department shall issue the
13Early Approval Adult Use Dispensing Organization License
14within 14 days of receiving a completed application unless:
15        (1) The licensee or a principal officer is delinquent
16    in filing any required tax returns or paying any amounts
17    owed to the State of Illinois;
18        (2) The Secretary of Financial and Professional
19    Regulation determines there is reason, based on documented
20    compliance violations, the licensee is not entitled to an
21    Early Approval Adult Use Dispensing Organization License;
22    or
23        (3) Any principal officer fails to register and remain
24    in compliance with this Act or the Compassionate Use of
25    Medical Cannabis Program Act.
26    (g) A registered medical cannabis dispensing organization

 

 

10400SB3222ham002- 446 -LRB104 19119 BDA 38710 a

1that obtains an Early Approval Adult Use Dispensing
2Organization License may begin selling cannabis,
3cannabis-infused products, paraphernalia, and related items to
4purchasers under the rules of this Act no sooner than January
51, 2020.
6    (h) A dispensing organization holding a medical cannabis
7dispensing organization license issued under the Compassionate
8Use of Medical Cannabis Program Act must maintain an adequate
9supply of cannabis and cannabis-infused products for purchase
10by qualifying patients, designated caregivers, provisional
11patients, and Opioid Alternative Patient Pilot Program
12participants. For the purposes of this subsection, "adequate
13supply" means a monthly inventory level that is comparable in
14type and quantity to those medical cannabis products provided
15to patients and caregivers on an average monthly basis for the
166 months before the effective date of this Act.
17    (i) If there is a shortage of cannabis or cannabis-infused
18products, a dispensing organization holding both a dispensing
19organization license under the Compassionate Use of Medical
20Cannabis Program Act and this Act shall prioritize serving
21qualifying patients, designated caregivers, provisional
22patients, and Opioid Alternative Patient Pilot Program
23participants before serving purchasers.
24    (j) Notwithstanding any law or rule to the contrary, a
25person that holds a medical cannabis dispensing organization
26license issued under the Compassionate Use of Medical Cannabis

 

 

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1Program Act and an Early Approval Adult Use Dispensing
2Organization License may permit purchasers into a limited
3access area as that term is defined in administrative rules
4made under the authority in the Compassionate Use of Medical
5Cannabis Program Act.
6    (k) An Early Approval Adult Use Dispensing Organization
7License is valid until March 31, 2021. A dispensing
8organization that obtains an Early Approval Adult Use
9Dispensing Organization License shall receive written or
10electronic notice 90 days before the expiration of the license
11that the license will expire, and that informs the license
12holder that it may apply to renew its Early Approval Adult Use
13Dispensing Organization License on forms provided by the
14Department. The Department shall renew the Early Approval
15Adult Use Dispensing Organization License within 60 days of
16the renewal application being deemed complete if:
17        (1) the dispensing organization submits an application
18    and the required nonrefundable renewal fee of $30,000, to
19    be deposited into the Cannabis Regulation Fund;
20        (2) the Department has not suspended or permanently
21    revoked the Early Approval Adult Use Dispensing
22    Organization License or a medical cannabis dispensing
23    organization license on the same premises for violations
24    of this Act, the Compassionate Use of Medical Cannabis
25    Program Act, or rules adopted pursuant to those Acts;
26        (3) the dispensing organization has completed a Social

 

 

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1    Equity Inclusion Plan as provided by parts (A), (B), and
2    (C) of paragraph (8) of subsection (b) of this Section or
3    has made substantial progress toward completing a Social
4    Equity Inclusion Plan as provided by parts (D) and (E) of
5    paragraph (8) of subsection (b) of this Section; and
6        (4) the dispensing organization is in compliance with
7    this Act and rules.
8    (l) The Early Approval Adult Use Dispensing Organization
9License renewed pursuant to subsection (k) of this Section
10shall expire March 31, 2022. The Early Approval Adult Use
11Dispensing Organization Licensee shall receive written or
12electronic notice 90 days before the expiration of the license
13that the license will expire, and that informs the license
14holder that it may apply for an Adult Use Dispensing
15Organization License on forms provided by the Department. The
16Department shall grant an Adult Use Dispensing Organization
17License within 60 days of an application being deemed complete
18if the applicant has met all of the criteria in Section 15-36.
19    (m) If a dispensing organization fails to submit an
20application for renewal of an Early Approval Adult Use
21Dispensing Organization License or for an Adult Use Dispensing
22Organization License before the expiration dates provided in
23subsections (k) and (l) of this Section, the dispensing
24organization shall cease serving purchasers and cease all
25operations until it receives a renewal or an Adult Use
26Dispensing Organization License, as the case may be.

 

 

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1    (n) A dispensing organization agent who holds a valid
2dispensing organization agent identification card issued under
3the Compassionate Use of Medical Cannabis Program Act and is
4an officer, director, manager, or employee of the dispensing
5organization licensed under this Section may engage in all
6activities authorized by this Article to be performed by a
7dispensing organization agent.
8    (o) If the Department suspends, permanently revokes, or
9otherwise disciplines the Early Approval Adult Use Dispensing
10Organization License of a dispensing organization that also
11holds a medical cannabis dispensing organization license
12issued under the Compassionate Use of Medical Cannabis Program
13Act, the Department may consider the suspension, permanent
14revocation, or other discipline of the medical cannabis
15dispensing organization license.
16    (p) All fees collected pursuant to this Section shall be
17deposited into the Cannabis Regulation Fund, unless otherwise
18specified.
19    (q) Beginning 90 days after the effective date of this
20amendatory Act of the 104th General Assembly, the Department
21may update any existing Early Approval Adult Use Dispensing
22Organization License to become both an Adult Use Dispensing
23Organization License issued under Section 15-36 and a
24corresponding Medical Cannabis Dispensing Organization License
25under Section 15-37.    
26(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;

 

 

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1102-98, eff. 7-15-21.)
 
2    (410 ILCS 705/15-20)
3    Sec. 15-20. Early Approval Adult Use Dispensing
4Organization License; secondary site.
5    (a) Any medical cannabis dispensing organization holding a
6valid registration under the Compassionate Use of Medical
7Cannabis Program Act as of the effective date of this Act may,
8within 60 days of the effective date of this Act, apply to the
9Department for an Early Approval Adult Use Dispensing
10Organization License to operate a dispensing organization to
11serve purchasers at a secondary site not within 1,500 feet of
12another medical cannabis dispensing organization or adult use
13dispensing organization. The Early Approval Adult Use
14Dispensing Organization secondary site shall be within any BLS
15Region that shares territory with the dispensing organization
16district to which the medical cannabis dispensing organization
17is assigned under the administrative rules for dispensing
18organizations under the Compassionate Use of Medical Cannabis
19Program Act.
20    (a-5) If, within 360 days of the effective date of this
21Act, a dispensing organization is unable to find a location
22within the BLS Regions prescribed in subsection (a) of this
23Section in which to operate an Early Approval Adult Use
24Dispensing Organization at a secondary site because no
25jurisdiction within the prescribed area allows the operation

 

 

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1of an Adult Use Dispensing Organization, the Department of
2Financial and Professional Regulation may waive the geographic
3restrictions of subsection (a) of this Section and specify
4another BLS Region into which the dispensary may be placed.
5    (b) (Blank).
6    (c) A medical cannabis dispensing organization seeking
7issuance of an Early Approval Adult Use Dispensing
8Organization License at a secondary site to serve purchasers
9at a secondary site as prescribed in subsection (a) of this
10Section shall submit an application on forms provided by the
11Department. The application must meet or include the following
12qualifications:
13        (1) a payment of a nonrefundable application fee of
14    $30,000;
15        (2) proof of registration as a medical cannabis
16    dispensing organization that is in good standing;
17        (3) submission of the application by the same person
18    or entity that holds the medical cannabis dispensing
19    organization registration;
20        (4) the legal name of the medical cannabis dispensing
21    organization;
22        (5) the physical address of the medical cannabis
23    dispensing organization and the proposed physical address
24    of the secondary site;
25        (6) a copy of the current local zoning ordinance
26    Sections relevant to dispensary operations and

 

 

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1    documentation of the approval, the conditional approval or
2    the status of a request for zoning approval from the local
3    zoning office that the proposed dispensary location is in
4    compliance with the local zoning rules;
5        (7) a plot plan of the dispensary drawn to scale. The
6    applicant shall submit general specifications of the
7    building exterior and interior layout;
8        (8) a statement that the dispensing organization
9    agrees to respond to the Department's supplemental
10    requests for information;
11        (9) for the building or land to be used as the proposed
12    dispensary:
13            (A) if the property is not owned by the applicant,
14        a written statement from the property owner and
15        landlord, if any, certifying consent that the
16        applicant may operate a dispensary on the premises; or
17            (B) if the property is owned by the applicant,
18        confirmation of ownership;
19        (10) a copy of the proposed operating bylaws;
20        (11) a copy of the proposed business plan that
21    complies with the requirements in this Act, including, at
22    a minimum, the following:
23            (A) a description of services to be offered; and
24            (B) a description of the process of dispensing
25        cannabis;
26        (12) a copy of the proposed security plan that

 

 

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1    complies with the requirements in this Article, including:
2            (A) a description of the delivery process by which
3        cannabis will be received from a transporting
4        organization, including receipt of manifests and
5        protocols that will be used to avoid diversion, theft,
6        or loss at the dispensary acceptance point; and
7            (B) the process or controls that will be
8        implemented to monitor the dispensary, secure the
9        premises, agents, patients, and currency, and prevent
10        the diversion, theft, or loss of cannabis; and
11            (C) the process to ensure that access to the
12        restricted access areas is restricted to, registered
13        agents, service professionals, transporting
14        organization agents, Department inspectors, and
15        security personnel;
16        (13) a proposed inventory control plan that complies
17    with this Section;
18        (14) the name, address, social security number, and
19    date of birth of each principal officer and board member
20    of the dispensing organization; each of those individuals
21    shall be at least 21 years of age;
22        (15) a nonrefundable Cannabis Business Development Fee
23    equal to $200,000, to be deposited into the Cannabis
24    Business Development Fund; and
25        (16) a commitment to completing one of the following
26    Social Equity Inclusion Plans in subsection (d).

 

 

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1    (d) Before receiving an Early Approval Adult Use
2Dispensing Organization License at a secondary site, a
3dispensing organization shall indicate the Social Equity
4Inclusion Plan that the applicant plans to achieve before the
5expiration of the Early Approval Adult Use Dispensing
6Organization License from the list below:
7        (1) make a contribution of 3% of total sales from June
8    1, 2018 to June 1, 2019, or $100,000, whichever is less, to
9    the Cannabis Business Development Fund. This is in
10    addition to the fee required by paragraph (16) of
11    subsection (c) of this Section;
12        (2) make a grant of 3% of total sales from June 1, 2018
13    to June 1, 2019, or $100,000, whichever is less, to a
14    cannabis industry training or education program at an
15    Illinois community college as defined in the Public
16    Community College Act;
17        (3) make a donation of $100,000 or more to a program
18    that provides job training services to persons recently
19    incarcerated or that operates in a Disproportionately
20    Impacted Area;
21        (4) participate as a host in a cannabis business
22    establishment incubator program approved by the Department
23    of Commerce and Economic Opportunity, and in which an
24    Early Approval Adult Use Dispensing Organization License
25    at a secondary site holder agrees to provide a loan of at
26    least $100,000 and mentorship to incubate, for at least a

 

 

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

 

 

10400SB3222ham002- 456 -LRB104 19119 BDA 38710 a

1    not take an ownership stake of greater than 10% in any
2    business receiving sponsorship services to comply with
3    this subsection.
4    (e) The license fee required by paragraph (1) of
5subsection (c) of this Section is in addition to any license
6fee required for the renewal of a registered medical cannabis
7dispensing organization license.
8    (f) Applicants must submit all required information,
9including the requirements in subsection (c) of this Section,
10to the Department. Failure by an applicant to submit all
11required information may result in the application being
12disqualified. Principal officers shall not be required to
13submit to the fingerprint and background check requirements of
14Section 5-20.
15    (g) If the Department receives an application that fails
16to provide the required elements contained in subsection (c),
17the Department shall issue a deficiency notice to the
18applicant. The applicant shall have 10 calendar days from the
19date of the deficiency notice to submit complete information.
20Applications that are still incomplete after this opportunity
21to cure may be disqualified.
22    (h) Once all required information and documents have been
23submitted, the Department will review the application. The
24Department may request revisions and retains final approval
25over dispensary features. Once the application is complete and
26meets the Department's approval, the Department shall

 

 

10400SB3222ham002- 457 -LRB104 19119 BDA 38710 a

1conditionally approve the license. Final approval is
2contingent on the build-out and Department inspection.
3    (i) Upon submission of the Early Approval Adult Use
4Dispensing Organization at a secondary site application, the
5applicant shall request an inspection and the Department may
6inspect the Early Approval Adult Use Dispensing Organization's
7secondary site to confirm compliance with the application and
8this Act.
9    (j) The Department shall only issue an Early Approval
10Adult Use Dispensing Organization License at a secondary site
11after the completion of a successful inspection.
12    (k) If an applicant passes the inspection under this
13Section, the Department shall issue the Early Approval Adult
14Use Dispensing Organization License at a secondary site within
1510 business days unless:
16        (1) the licensee, any principal officer or board
17    member of the licensee, or any person having a financial
18    or voting interest of 5% or greater in the licensee is
19    delinquent in filing any required tax returns or paying
20    any amounts owed to the State of Illinois; or
21        (2) the Secretary of Financial and Professional
22    Regulation determines there is reason, based on documented
23    compliance violations, the licensee is not entitled to an
24    Early Approval Adult Use Dispensing Organization License
25    at its secondary site.
26    (l) Once the Department has issued a license, the

 

 

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1dispensing organization shall notify the Department of the
2proposed opening date.
3    (m) A registered medical cannabis dispensing organization
4that obtains an Early Approval Adult Use Dispensing
5Organization License at a secondary site may begin selling
6cannabis, cannabis-infused products, paraphernalia, and
7related items to purchasers under the rules of this Act no
8sooner than January 1, 2020.
9    (n) If there is a shortage of cannabis or cannabis-infused
10products, a dispensing organization holding both a dispensing
11organization license under the Compassionate Use of Medical
12Cannabis Program Act and this Article shall prioritize serving
13qualifying patients and caregivers before serving purchasers.
14    (o) An Early Approval Adult Use Dispensing Organization
15License at a secondary site is valid until March 31, 2021. A
16dispensing organization that obtains an Early Approval Adult
17Use Dispensing Organization License at a secondary site shall
18receive written or electronic notice 90 days before the
19expiration of the license that the license will expire, and
20inform the license holder that it may renew its Early Approval
21Adult Use Dispensing Organization License at a secondary site.
22The Department shall renew an Early Approval Adult Use
23Dispensing Organization License at a secondary site within 60
24days of submission of the renewal application being deemed
25complete if:
26        (1) the dispensing organization submits an application

 

 

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1    and the required nonrefundable renewal fee of $30,000, to
2    be deposited into the Cannabis Regulation Fund;
3        (2) the Department has not suspended or permanently
4    revoked the Early Approval Adult Use Dispensing
5    Organization License or a medical cannabis dispensing
6    organization license held by the same person or entity for
7    violating this Act or rules adopted under this Act or the
8    Compassionate Use of Medical Cannabis Program Act or rules
9    adopted under that Act; and
10        (3) the dispensing organization has completed a Social
11    Equity Inclusion Plan provided by paragraph (1), (2), or
12    (3) of subsection (d) of this Section or has made
13    substantial progress toward completing a Social Equity
14    Inclusion Plan provided by paragraph (4) or (5) of
15    subsection (d) of this Section.
16    (p) The Early Approval Adult Use Dispensing Organization
17Licensee at a secondary site renewed pursuant to subsection
18(o) shall receive written or electronic notice 90 days before
19the expiration of the license that the license will expire,
20and that informs the license holder that it may apply for an
21Adult Use Dispensing Organization License on forms provided by
22the Department. The Department shall grant an Adult Use
23Dispensing Organization License within 60 days of an
24application being deemed complete if the applicant has met    
25meet all of the criteria in Section 15-36.
26    (q) If a dispensing organization fails to submit an

 

 

10400SB3222ham002- 460 -LRB104 19119 BDA 38710 a

1application for renewal of an Early Approval Adult Use
2Dispensing Organization License or for an Adult Use Dispensing
3Organization License before the expiration dates provided in
4subsections (o) and (p) of this Section, the dispensing
5organization shall cease serving purchasers until it receives
6a renewal or an Adult Use Dispensing Organization License.
7    (r) A dispensing organization agent who holds a valid
8dispensing organization agent identification card issued under
9the Compassionate Use of Medical Cannabis Program Act and is
10an officer, director, manager, or employee of the dispensing
11organization licensed under this Section may engage in all
12activities authorized by this Article to be performed by a
13dispensing organization agent.
14    (s) If the Department suspends, permanently revokes, or
15otherwise disciplines the Early Approval Adult Use Dispensing
16Organization License of a dispensing organization that also
17holds a medical cannabis dispensing organization license
18issued under the Compassionate Use of Medical Cannabis Program
19Act, the Department may consider the suspension, permanent
20revocation, or other discipline as grounds to take
21disciplinary action against the medical cannabis dispensing
22organization.
23    (t) All fees collected pursuant to this Section shall be
24deposited into the Cannabis Regulation Fund, unless otherwise
25specified.
26(Source: P.A. 104-417, eff. 8-15-25.)
 

 

 

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1    (410 ILCS 705/15-24 new)
2    Sec. 15-24. Adult Use Dispensing Organization Licensee
3relocation.
4    (a) An Adult Use Dispensing Organization licensee may
5apply to relocate within the licensee's specific BLS Region
6consistent with this Section. A request to relocate under this
7Section is subject to approval by the Department. An Adult Use
8Dispensing Organization's application to relocate its license
9under this Section shall be considered to be approved 30 days
10following the submission of a complete application to
11relocate, unless the request is sooner approved or denied in
12writing by the Department. If an application to relocate is
13denied, the Department shall provide, in writing, the specific
14reason for denial. An Adult Use Dispensing Organization may
15request to relocate under this Section only if:
16        (1) the Adult Use Dispensing Organization's existing
17    location is within the boundaries of a unit of local
18    government that prohibits the sale of adult use cannabis;
19        (2) the Adult Use Dispensing Organization has obtained
20    the zoning approval of a new location by the municipality
21    it currently operates in if the new location is within
22    that same municipality, or if outside the boundaries of a
23    municipality in an unincorporated area of the county, the
24    zoning approval of a new location by the county where it
25    currently operates in if the new location is within the

 

 

10400SB3222ham002- 462 -LRB104 19119 BDA 38710 a

1    same county, to move to a different location within that
2    unit of local government; or
3        (3) the Adult Use Dispensing Organization has obtained
4    the approval, as evidenced by a letter of intent or full
5    zoning approval, to operate within the boundaries of a new
6    unit of local government, so long as the new unit of local
7    government is within the dispensing organization's
8    specific BLS Region.
9    (b) The relocation of an Adult Use Dispensing Organization
10Licensee under this Section shall be subject to Sections 55-25
11and 55-28.
 
12    (410 ILCS 705/15-25)
13    Sec. 15-25. Awarding of Conditional Adult Use Dispensing
14Organization Licenses prior to January 1, 2021.
15    (a) The Department shall issue up to 75 Conditional Adult
16Use Dispensing Organization Licenses before May 1, 2020.
17    (b) The Department shall make the application for a
18Conditional Adult Use Dispensing Organization License
19available no later than October 1, 2019 and shall accept
20applications no later than January 1, 2020.
21    (c) To ensure the geographic dispersion of Conditional
22Adult Use Dispensing Organization License holders, the
23following number of licenses shall be awarded in each BLS
24Region as determined by each region's percentage of the
25State's population:

 

 

10400SB3222ham002- 463 -LRB104 19119 BDA 38710 a

1        (1) Bloomington: 1
2        (2) Cape Girardeau: 1
3        (3) Carbondale-Marion: 1
4        (4) Champaign-Urbana: 1
5        (5) Chicago-Naperville-Elgin: 47
6        (6) Danville: 1
7        (7) Davenport-Moline-Rock Island: 1
8        (8) Decatur: 1
9        (9) Kankakee: 1
10        (10) Peoria: 3
11        (11) Rockford: 2
12        (12) St. Louis: 4
13        (13) Springfield: 1
14        (14) Northwest Illinois nonmetropolitan: 3
15        (15) West Central Illinois nonmetropolitan: 3
16        (16) East Central Illinois nonmetropolitan: 2
17        (17) South Illinois nonmetropolitan: 2
18    (d) An applicant seeking issuance of a Conditional Adult
19Use Dispensing Organization License shall submit an
20application on forms provided by the Department. An applicant
21must meet the following requirements:
22        (1) Payment of a nonrefundable application fee of
23    $5,000 for each license for which the applicant is
24    applying, which shall be deposited into the Cannabis
25    Regulation Fund;
26        (2) Certification that the applicant will comply with

 

 

10400SB3222ham002- 464 -LRB104 19119 BDA 38710 a

1    the requirements contained in this Act;
2        (3) The legal name of the proposed dispensing
3    organization;
4        (4) A statement that the dispensing organization
5    agrees to respond to the Department's supplemental
6    requests for information;
7        (5) From each principal officer, a statement
8    indicating whether that person:
9            (A) has previously held or currently holds an
10        ownership interest in a cannabis business
11        establishment in Illinois; or
12            (B) has held an ownership interest in a dispensing
13        organization or its equivalent in another state or
14        territory of the United States that had the dispensing
15        organization registration or license suspended,
16        revoked, placed on probationary status, or subjected
17        to other disciplinary action;
18        (6) Disclosure of whether any principal officer has
19    ever filed for bankruptcy or defaulted on spousal support
20    or child support obligation;
21        (7) A resume for each principal officer, including
22    whether that person has an academic degree, certification,
23    or relevant experience with a cannabis business
24    establishment or in a related industry;
25        (8) A description of the training and education that
26    will be provided to dispensing organization agents;

 

 

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1        (9) A copy of the proposed operating bylaws;
2        (10) A copy of the proposed business plan that
3    complies with the requirements in this Act, including, at
4    a minimum, the following:
5            (A) A description of services to be offered; and
6            (B) A description of the process of dispensing
7        cannabis;
8        (11) A copy of the proposed security plan that
9    complies with the requirements in this Article, including:
10            (A) The process or controls that will be
11        implemented to monitor the dispensary, secure the
12        premises, agents, and currency, and prevent the
13        diversion, theft, or loss of cannabis; and
14            (B) The process to ensure that access to the
15        restricted access areas is restricted to, registered
16        agents, service professionals, transporting
17        organization agents, Department inspectors, and
18        security personnel;
19        (12) A proposed inventory control plan that complies
20    with this Section;
21        (13) A proposed floor plan, a square footage estimate,
22    and a description of proposed security devices, including,
23    without limitation, cameras, motion detectors, servers,
24    video storage capabilities, and alarm service providers;
25        (14) The name, address, social security number, and
26    date of birth of each principal officer and board member

 

 

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1    of the dispensing organization; each of those individuals
2    shall be at least 21 years of age;
3        (15) Evidence of the applicant's status as a Social
4    Equity Applicant, if applicable, and whether a Social
5    Equity Applicant plans to apply for a loan or grant issued
6    by the Department of Commerce and Economic Opportunity;
7        (16) The address, telephone number, and email address
8    of the applicant's principal place of business, if
9    applicable. A post office box is not permitted;
10        (17) Written summaries of any information regarding
11    instances in which a business or not-for-profit that a
12    prospective board member previously managed or served on
13    were fined or censured, or any instances in which a
14    business or not-for-profit that a prospective board member
15    previously managed or served on had its registration
16    suspended or revoked in any administrative or judicial
17    proceeding;
18        (18) A plan for community engagement;
19        (19) Procedures to ensure accurate recordkeeping and
20    security measures that are in accordance with this Article
21    and Department rules;
22        (20) The estimated volume of cannabis it plans to
23    store at the dispensary;
24        (21) A description of the features that will provide
25    accessibility to purchasers as required by the Americans
26    with Disabilities Act;

 

 

10400SB3222ham002- 467 -LRB104 19119 BDA 38710 a

1        (22) A detailed description of air treatment systems
2    that will be installed to reduce odors;
3        (23) A reasonable assurance that the issuance of a
4    license will not have a detrimental impact on the
5    community in which the applicant wishes to locate;
6        (24) The dated signature of each principal officer;
7        (25) A description of the enclosed, locked facility
8    where cannabis will be stored by the dispensing
9    organization;
10        (26) Signed statements from each dispensing
11    organization agent stating that he or she will not divert
12    cannabis;
13        (27) The number of licenses it is applying for in each
14    BLS Region;
15        (28) A diversity plan that includes a narrative of at
16    least 2,500 words that establishes a goal of diversity in
17    ownership, management, employment, and contracting to
18    ensure that diverse participants and groups are afforded
19    equality of opportunity;
20        (29) A contract with a private security contractor
21    agency that is licensed under Section 10-5 of the Private
22    Detective, Private Alarm, Private Security, Fingerprint
23    Vendor, and Locksmith Act of 2004 in order for the
24    dispensary to have adequate security at its facility; and
25        (30) Other information deemed necessary by the
26    Illinois Cannabis Regulation Oversight Officer to conduct

 

 

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1    the disparity and availability study referenced in
2    subsection (e) of Section 5-45.
3    (e) An applicant who receives a Conditional Adult Use
4Dispensing Organization License under this Section has 180
5days from the date of award to identify a physical location for
6the dispensing organization retail storefront. The applicant
7shall provide evidence that the location is not within 1,500
8feet of an existing dispensing organization, unless the
9applicant is a Social Equity Applicant or Social Equity
10Justice Involved Applicant located or seeking to locate within
111,500 feet of a dispensing organization licensed under Section
1215-15 or Section 15-20. If an applicant is unable to find a
13suitable physical address in the opinion of the Department
14within 180 days of the issuance of the Conditional Adult Use
15Dispensing Organization License, the Department may extend the
16period for finding a physical address an additional 540 days
17if the Conditional Adult Use Dispensing Organization License
18holder demonstrates concrete attempts to secure a location and
19a hardship. If the Department denies the extension or the
20Conditional Adult Use Dispensing Organization License holder
21is unable to either find a location within 720 days of being
22awarded a conditional license and become operational within
23180 days thereafter or become operational within 720 days of
24being awarded a conditional license, the Department may,
25considering the totality of the circumstances, rescind the
26conditional license. If the conditional license holder does

 

 

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1not become operational within 365 days after having found a
2location, the Department may mandate a date by which the
3conditional license holder shall become operational prior to
4the Department rescinding the conditional license. If the
5Department rescinds shall rescind the conditional license it
6may and award it to the next highest scoring applicant in the
7BLS Region for which the license was assigned, provided the
8applicant receiving the license: (i) confirms a continued
9interest in operating a dispensing organization; (ii) can
10provide evidence that the applicant continues to meet all
11requirements for holding a Conditional Adult Use Dispensing
12Organization License set forth in this Act; and (iii) has not
13otherwise become ineligible to be awarded a dispensing
14organization license. If the new awardee is unable to accept
15the Conditional Adult Use Dispensing Organization License, the
16Department may issue shall award the Conditional Adult Use
17Dispensing Organization License to the next highest scoring
18applicant in the same manner. The new awardee shall be subject
19to the same required deadlines as provided in this subsection.
20    (e-5) If, within 720 days of being awarded a Conditional
21Adult Use Dispensing Organization License, a dispensing
22organization is unable to find a location within the BLS
23Region in which it was awarded a Conditional Adult Use
24Dispensing Organization License because no jurisdiction within
25the BLS Region allows for the operation of an Adult Use
26Dispensing Organization, the Department of Financial and

 

 

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

 

 

10400SB3222ham002- 471 -LRB104 19119 BDA 38710 a

1(Source: P.A. 102-98, eff. 7-15-21; 102-538, eff. 8-20-21;
2102-813, eff. 5-13-22; 103-8, eff. 6-7-23.)
 
3    (410 ILCS 705/15-35)
4    Sec. 15-35. Qualifying Applicant Lottery for Conditional
5Adult Use Dispensing Organization Licenses.
6    (a) In addition to any of the licenses issued under
7Section 15-15, Section 15-20, Section 15-25, Section 15-30.20,
8or Section 15-35.10 of this Act, within 10 business days after
9the resulting final scores for all scored applications
10pursuant to Sections 15-25 and 15-30 are released, the
11Department shall issue up to 55 Conditional Adult Use
12Dispensing Organization Licenses by lot, pursuant to the
13application process adopted under this Section. In order to be
14eligible to be awarded a Conditional Adult Use Dispensing
15Organization License by lot under this Section, a Dispensary
16Applicant must be a Qualifying Applicant.
17    The licenses issued under this Section shall be awarded in
18each BLS Region in the following amounts:
19        (1) Bloomington: 1.
20        (2) Cape Girardeau: 1.
21        (3) Carbondale-Marion: 1.
22        (4) Champaign-Urbana: 1.
23        (5) Chicago-Naperville-Elgin: 36.
24        (6) Danville: 1.
25        (7) Davenport-Moline-Rock Island: 1.

 

 

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

 

 

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

 

 

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

 

 

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1unless the applicant is a Social Equity Applicant or Social
2Equity Justice Involved Applicant located or seeking to locate
3within 1,500 feet of a dispensing organization licensed under
4Section 15-15 or Section 15-20. If an applicant is unable to
5find a suitable physical address in the opinion of the
6Department within 180 days from the issuance of the
7Conditional Adult Use Dispensing Organization License, the
8Department may extend the period for finding a physical
9address an additional 540 days if the Conditional Adult Use
10Dispensing Organization License holder demonstrates a concrete
11attempt to secure a location and a hardship. If the Department
12denies the extension or the Conditional Adult Use Dispensing
13Organization License holder is unable to either find a
14location within 720 days of being awarded a conditional
15license and become operational within 180 days thereafter or
16become operational within 720 days of being awarded a
17Conditional Adult Use Dispensing Organization License, the
18Department may, considering the totality of the circumstances,
19rescind the conditional license. If the conditional license
20holder does not become operational within 365 days after
21having found a location, the Department may mandate a date by
22which the conditional license holder shall become operational
23prior to the Department rescinding the conditional license. If    
24under this Section, the Department rescinds shall rescind the
25Conditional Adult Use Dispensing Organization License, it may
26issue and award it pursuant to subsection (b), provided the

 

 

10400SB3222ham002- 476 -LRB104 19119 BDA 38710 a

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

 

 

10400SB3222ham002- 477 -LRB104 19119 BDA 38710 a

1cannabis or cannabis-infused products until the dispensing
2organization has received an Adult Use Dispensing Organization
3License issued by the Department pursuant to Section 15-36.
4    (f) The Department shall conduct a background check of the
5prospective dispensing organization agents in order to carry
6out this Article. The Illinois State Police shall charge the
7applicant a fee for conducting the criminal history record
8check, which shall be deposited into the State Police Services
9Fund and shall not exceed the actual cost of the record check.
10Each person applying as a dispensing organization agent shall
11submit a full set of fingerprints to the Illinois State Police
12for the purpose of obtaining a State and federal criminal
13records check. These fingerprints shall be checked against the
14fingerprint records now and hereafter, to the extent allowed
15by law, filed with the Illinois State Police and the Federal
16Bureau of Investigation criminal history records databases.
17The Illinois State Police shall furnish, following positive
18identification, all Illinois conviction information to the
19Department.
20    (g) The Department may verify information contained in
21each application and accompanying documentation to assess the
22applicant's veracity and fitness to operate a dispensing
23organization.
24    (h) The Department may, in its discretion, refuse to issue
25authorization to an applicant who meets any of the following
26criteria:

 

 

10400SB3222ham002- 478 -LRB104 19119 BDA 38710 a

1        (1) An applicant who is unqualified to perform the
2    duties required of the applicant.
3        (2) An applicant who fails to disclose or states
4    falsely any information called for in the application.
5        (3) An applicant who has been found guilty of a
6    violation of this Act, who has had any disciplinary order
7    entered against the applicant by the Department, who has
8    entered into a disciplinary or nondisciplinary agreement
9    with the Department, whose medical cannabis dispensing
10    organization, medical cannabis cultivation organization,
11    Early Approval Adult Use Dispensing Organization License,
12    Early Approval Adult Use Dispensing Organization License
13    at a secondary site, Early Approval Cultivation Center
14    License, Conditional Adult Use Dispensing Organization
15    License, or Adult Use Dispensing Organization License was
16    suspended, restricted, revoked, or denied for just cause,
17    or whose cannabis business establishment license was
18    suspended, restricted, revoked, or denied in any other
19    state.
20        (4) An applicant who has engaged in a pattern or
21    practice of unfair or illegal practices, methods, or
22    activities in the conduct of owning a cannabis business
23    establishment or other business.
24    (i) The Department shall deny issuance of a license under
25this Section if any principal officer, board member, or person
26having a financial or voting interest of 5% or greater in the

 

 

10400SB3222ham002- 479 -LRB104 19119 BDA 38710 a

1licensee is delinquent in filing any required tax return or
2paying any amount owed to the State of Illinois.
3    (j) The Department shall verify an applicant's compliance
4with the requirements of this Article and rules adopted under
5this Article before issuing a Conditional Adult Use Dispensing
6Organization License under this Section.
7    (k) If an applicant is awarded a Conditional Adult Use
8Dispensing Organization License under this Section, the
9information and plans provided in the application, including
10any plans submitted for bonus points, shall become a condition
11of the Conditional Adult Use Dispensing Organization License
12and any Adult Use Dispensing Organization License issued to
13the holder of the Conditional Adult Use Dispensing
14Organization License, except as otherwise provided by this Act
15or by rule. A dispensing organization has a duty to disclose
16any material changes to the application. The Department shall
17review all material changes disclosed by the dispensing
18organization and may reevaluate its prior decision regarding
19the awarding of a Conditional Adult Use Dispensing
20Organization License, including, but not limited to,
21suspending or permanently revoking a Conditional Adult Use
22Dispensing Organization License. Failure to comply with the
23conditions or requirements in the application may subject the
24dispensing organization to discipline up to and including
25suspension or permanent revocation of its authorization or
26Conditional Adult Use Dispensing Organization License by the

 

 

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1Department.
2    (l) If an applicant has not begun operating as a
3dispensing organization within one year after the issuance of
4the Conditional Adult Use Dispensing Organization License
5under this Section, the Department may permanently revoke the
6Conditional Adult Use Dispensing Organization License and
7award it to the next highest scoring applicant in the BLS
8Region if a suitable applicant indicates a continued interest
9in the Conditional Adult Use Dispensing Organization License
10or may begin a new selection process to award a Conditional
11Adult Use Dispensing Organization License.
12(Source: P.A. 102-98, eff. 7-15-21; 103-8, eff. 6-7-23.)
 
13    (410 ILCS 705/15-35.10)
14    Sec. 15-35.10. Social Equity Justice Involved Lottery for
15Conditional Adult Use Dispensing Organization Licenses.
16    (a) In addition to any of the licenses issued under
17Section 15-15, Section 15-20, Section 15-25, Section 15-30.20,
18or Section 15-35, within 10 business days after the resulting
19final scores for all scored applications pursuant to Sections
2015-25 and 15-30 are released, the Department shall issue up to
2155 Conditional Adult Use Dispensing Organization Licenses by
22lot, pursuant to the application process adopted under this
23Section. In order to be eligible to be awarded a Conditional
24Adult Use Dispensing Organization License by lot, a Dispensary
25Applicant must be a Qualifying Social Equity Justice Involved

 

 

10400SB3222ham002- 481 -LRB104 19119 BDA 38710 a

1Applicant.
2    The licenses issued under this Section shall be awarded in
3each BLS Region in the following amounts:
4        (1) Bloomington: 1.
5        (2) Cape Girardeau: 1.
6        (3) Carbondale-Marion: 1.
7        (4) Champaign-Urbana: 1.
8        (5) Chicago-Naperville-Elgin: 36.
9        (6) Danville: 1.
10        (7) Davenport-Moline-Rock Island: 1.
11        (8) Decatur: 1.
12        (9) Kankakee: 1.
13        (10) Peoria: 2.
14        (11) Rockford: 1.
15        (12) St. Louis: 3.
16        (13) Springfield: 1.
17        (14) Northwest Illinois nonmetropolitan: 1.
18        (15) West Central Illinois nonmetropolitan: 1.
19        (16) East Central Illinois nonmetropolitan: 1.
20        (17) South Illinois nonmetropolitan: 1.
21    (a-5) Prior to issuing licenses under subsection (a), the
22Department may adopt rules through emergency rulemaking in
23accordance with subsection (kk) of Section 5-45 of the
24Illinois Administrative Procedure Act. The General Assembly
25finds that the adoption of rules to regulate cannabis use is
26deemed an emergency and necessary for the public interest,

 

 

10400SB3222ham002- 482 -LRB104 19119 BDA 38710 a

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

 

 

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

 

 

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1    Department. If the Dispensary Applicant or licensees do
2    not notify the Department as required, the Department
3    shall refuse to issue the Qualifying Social Equity Justice
4    Involved Applicant all available licenses established
5    under this Section obtained by lot in all BLS Regions.
6        (9) All available licenses that have been abandoned
7    under paragraph (7) or (8) shall be distributed to the
8    next Qualifying Social Equity Justice Involved Applicant
9    drawn by lot.
10    Any and all rights conferred or obtained under this
11subsection shall be limited to the provisions of this
12subsection.
13    (c) An applicant who receives a Conditional Adult Use
14Dispensing Organization License under this Section has 180
15days from the date of the award to identify a physical location
16for the dispensing organization's retail storefront. The
17applicant shall provide evidence that the location is not
18within 1,500 feet of an existing dispensing organization,
19unless the applicant is a Social Equity Applicant or Social
20Equity Justice Involved Applicant located or seeking to locate
21within 1,500 feet of a dispensing organization licensed under
22Section 15-15 or Section 15-20. If an applicant is unable to
23find a suitable physical address in the opinion of the
24Department within 180 days from the issuance of the
25Conditional Adult Use Dispensing Organization License, the
26Department may extend the period for finding a physical

 

 

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1address an additional 540 days if the Conditional Adult Use
2Dispensing Organization License holder demonstrates a concrete
3attempt to secure a location and a hardship. If the Department
4denies the extension or the Conditional Adult Use Dispensing
5Organization License holder is unable to either find a
6location within 720 days of being awarded a conditional
7license and become operational within 180 days thereafter or
8become operational within 720 days of being awarded a
9Conditional Adult Use Dispensing Organization License, the
10Department may, considering the totality of the circumstances,
11rescind the conditional license. If the conditional license
12holder does not become operational within 365 days after
13having found a location, the Department may mandate a date by
14which the conditional license holder shall become operational
15prior to the Department rescinding the conditional license. If    
16under this Section, the Department rescinds shall rescind the
17Conditional Adult Use Dispensing Organization License it may
18issue and award it pursuant to subsection (b) and notify the
19new awardee at the email address provided in the awardee's
20application, provided the applicant receiving the Conditional
21Adult Use Dispensing Organization License: (i) confirms a
22continued interest in operating a dispensing organization;
23(ii) can provide evidence that the applicant continues to meet
24all requirements for holding a Conditional Adult Use
25Dispensing Organization License set forth in this Act; and
26(iii) has not otherwise become ineligible to be awarded a

 

 

10400SB3222ham002- 486 -LRB104 19119 BDA 38710 a

1Conditional Adult Use Dispensing Organization License. If the
2new awardee is unable to accept the Conditional Adult Use
3Dispensing Organization License, the Department may issue    
4shall award the Conditional Adult Use Dispensing Organization
5License pursuant to subsection (b). The new awardee shall be
6subject to the same required deadlines as provided in this
7subsection.
8    (d) If, within 720 180 days of being awarded a Conditional
9Adult Use Dispensing Organization License, a dispensing
10organization is unable to find a location within the BLS
11Region in which it was awarded a Conditional Adult Use
12Dispensing Organization License under this Section because no
13jurisdiction within the BLS Region allows for the operation of
14an Adult Use Dispensing Organization, the Department may
15authorize the Conditional Adult Use Dispensing Organization
16License holder to transfer its Conditional Adult Use
17Dispensing Organization License to a BLS Region specified by
18the Department.
19    (e) A dispensing organization that is awarded a
20Conditional Adult Use Dispensing Organization License under
21this Section shall not purchase, possess, sell, or dispense
22cannabis or cannabis-infused products until the dispensing
23organization has received an Adult Use Dispensing Organization
24License issued by the Department pursuant to Section 15-36.
25    (f) The Department shall conduct a background check of the
26prospective dispensing organization agents in order to carry

 

 

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

 

 

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

 

 

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

 

 

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1Conditional Adult Use Dispensing Organization License and
2award it to the next highest scoring applicant in the BLS
3Region if a suitable applicant indicates a continued interest
4in the Conditional Adult Use Dispensing Organization License
5or may begin a new selection process to award a Conditional
6Adult Use Dispensing Organization License.
7(Source: P.A. 102-98, eff. 7-15-21; 103-8, eff. 6-7-23.)
 
8    (410 ILCS 705/15-36)
9    Sec. 15-36. Adult Use Dispensing Organization License.
10    (a) A person is only eligible to receive or hold an Adult
11Use Dispensing Organization License if the person has been
12issued awarded a Conditional Adult Use Dispensing Organization
13License, an Early Approval Adult Use Dispensing Organization
14License, or an Early Approval Adult Use Dispensing
15Organization License at a Secondary Site pursuant to this Act
16or its administrative rules or has renewed its license
17pursuant to subsection (k) of Section 15-15 or subsection (p)
18of Section 15-20.
19    (b) The Department shall not issue an Adult Use Dispensing
20Organization License until:
21        (1) the Department has inspected the dispensary site
22    and proposed operations and verified that they are in
23    compliance with this Act and local zoning laws;
24        (2) the Conditional Adult Use Dispensing Organization
25    License holder has paid a license fee of $60,000 or a

 

 

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1    prorated amount accounting for the difference of time
2    between when the Adult Use Dispensing Organization License
3    is issued and March 31 of the next even-numbered year; and
4        (3) the Conditional Adult Use Dispensing Organization
5    License holder has met all the requirements in this Act
6    and rules.
7    (c) No person or entity shall hold any legal, equitable,
8ownership, or beneficial interest, directly or indirectly, of
9more than 10 dispensing organizations, including through any
10management contract, consultant contract, or other similar
11arrangement. licensed under this Article. Further, no    
12    (c-1) No person or entity that is: (1) employed by, is an
13agent of, or participates in the management of a dispensing
14organization or registered medical cannabis dispensing
15organization; no person who is (2) a principal officer of a
16dispensing organization or registered medical cannabis
17dispensing organization; and no or (3) an entity controlled by
18or affiliated with a principal officer of a dispensing
19organization or registered medical cannabis dispensing
20organization; shall hold any legal, equitable, ownership, or
21beneficial interest, directly or indirectly, in a dispensing
22organization that would result in such person or entity owning
23or participating in the management of more than 10 dispensing
24organizations licensed under this Article, including through
25any management contract, consulting contract, or similar
26arrangement Early Approval Adult Use Dispensing Organization

 

 

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1Licenses, Early Approval Adult Use Dispensing Organization
2Licenses at a secondary site, Conditional Adult Use Dispensing
3Organization Licenses, or Adult Use Dispensing Organization
4Licenses.
5    (c-2) Notwithstanding subsections (c) and (c-1), if a
6person or entity enters an arrangement that could or does
7result in the person or entity receiving payments from a
8dispensing organization in an amount exceeding any of the
9amounts in paragraphs (1) through (3) of this subsection,
10then, unless the dispensing organization is approved by the
11Department for a limited waiver as identified in this Section,
12the person or entity is considered to be a principal officer of
13the dispensing organization requiring the Department's
14approval and registration:
15        (1) 10% of the dispensing organization's monthly gross
16    revenue;
17        (2) 50% of the dispensing organizations 's net profits
18    in a calendar year; or
19        (3) $250,000, or an amount otherwise determined by the
20    Department via administrative rulemaking, in a calendar
21    year.
22        The Department may grant a limited waiver to the
23    requirements of this subsection if the dispensing
24    organization demonstrates good cause and there is no
25    transfer of ownership and control.    
26    For the purpose of this subsection, participating in

 

 

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1management may include, without limitation, controlling
2decisions regarding staffing, pricing, purchasing, marketing,
3store design, hiring, and website design.
4    (d) The Department shall deny an application if granting
5that application would result in a person or entity obtaining
6direct or indirect financial interest in more than 10 Early
7Approval Adult Use Dispensing Organization Licenses or
8Dispensing Organization Licenses , Conditional Adult Use
9Dispensing Organization Licenses, Adult Use Dispensing
10Organization Licenses, or any combination thereof. If a person
11or entity is awarded a Conditional Adult Use Dispensing
12Organization License that would cause the person or entity to
13be in violation of this subsection, he, she, or it shall choose
14which license application it wants to abandon and such
15licenses shall become available to the next qualified
16applicant in the region in which the abandoned license was
17awarded.
18    (e) As used in this Section:
19    "Equitable or beneficial ownership" includes the interests
20arising under or in connection with any arrangement that has
21the effect of granting the person or entity the power or
22authority to participate in the operation or management of the
23dispensing organization.
24    "Participating in the operation or management of a
25dispensing organization" includes, without limitation,
26controlling decisions regarding staffing, pricing, purchasing,

 

 

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1marketing, store design, and hiring. "Participating in the
2operation or management" does not include third parties who
3provide administrative services marketed and delivered to the
4general population of business in Illinois, such as accounting
5or information technology support.    
6(Source: P.A. 104-417, eff. 8-15-25.)
 
7    (410 ILCS 705/15-37 new)
8    Sec. 15-37. Medical Cannabis Dispensing Organization
9License.
10    (a) Beginning 90 days after the effective date of this
11amendatory Act of the 104th General Assembly, the Department
12may issue a Medical Cannabis Dispensing Organization License
13to any entity holding an Adult Use Dispensing Organization
14License.
15    (b) The Medical Cannabis Dispensing Organization License
16shall be issued to the same entity holding the Adult Use
17Dispensing Organization License and for the same address of
18the corresponding dispensary.
19    (c) The Department shall provide an approval process for
20issuing Medical Cannabis Dispensing Organization Licenses to
21corresponding Adult Use Dispensing Organization Licensees,
22which shall include, but shall not be limited to, the
23following:
24        (1) payment of a one-time, nonrefundable fee of
25    $5,000, which shall be deposited into the Cannabis

 

 

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1    Regulation Fund;    
2        (2) proof of the corresponding Adult Use Dispensing
3    Organization License that is in active status;
4        (3) certification that the licensee shall comply with
5    the requirements contained in the Compassionate Use of
6    Medical Cannabis Program Act;
7        (4) the legal name of the dispensing organization;
8        (5) the physical address of the dispensing
9    organization;
10        (6) affirmation that the dispensing organization
11    understands it is prohibited from separating its Medical
12    Cannabis Dispensing Organization License from its Adult
13    Use Dispensing Organization License;
14        (7) proof of proper zoning for both medical and adult
15    use sales in a form and manner prescribed by the
16    Department; and
17        (8) any other information which the Department may
18    request.
19    (d) If an Adult Use Dispensing Organization is issued a
20corresponding Medical Cannabis Dispensing Organization
21License, the entity holding the 2 corresponding licenses is
22prohibited from separating the 2 licenses from each other. In
23this subsection, "separating" means, but is not limited to,
24the following:
25        (1) relocating either license without relocating the
26    other to the same facility; or

 

 

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1        (2) changing the ownership for only one of the
2    licenses.
3    (e) For the purpose of subsection (c) of Section 15-36, a
4dispensing organization holding an Adult Use Dispensing
5Organization License and a Medical Cannabis Dispensing
6Organization License at a single location pursuant to this
7Section 15-37 shall count as a single dispensing organization.
 
8    (410 ILCS 705/15-40)
9    Sec. 15-40. Dispensing organization agent identification
10card; agent training.
11    (a) The Department shall:
12        (1) verify the information contained in an application
13    or renewal for a dispensing organization agent
14    identification card submitted under this Article, and
15    approve or deny an application or renewal, within 30 days
16    of receiving a completed application or renewal
17    application and all supporting documentation required by
18    rule;
19        (2) issue a dispensing organization agent
20    identification card to a qualifying agent within 15
21    business days of approving the application or renewal;
22        (3) (blank); enter the registry identification number
23    of the dispensing organization where the agent works;    
24        (4) within one year from the effective date of this
25    Act, allow for an electronic application process and

 

 

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1    provide a confirmation by electronic or other methods that
2    an application has been submitted; and
3        (5) collect a $100 nonrefundable fee from the
4    applicant to be deposited into the Cannabis Regulation
5    Fund.
6    (b) A dispensing organization agent must keep his or her
7identification card visible at all times when in the
8dispensary. This may include providing the card via electronic
9means available upon request.    
10    (c) The dispensing organization agent identification cards
11shall contain the following:
12        (1) the name of the cardholder;
13        (2) the date of issuance and expiration date of the
14    dispensing organization agent identification cards;
15        (3) a random 10-digit alphanumeric identification
16    number containing at least 4 numbers and at least 4
17    letters that is unique to the cardholder; and
18        (4) a photograph of the cardholder.
19    (c-5) A dispensing organization agent identification card
20issued pursuant to this Section authorizes a dispensing
21organization agent to perform work at the dispensing
22organization with both an Adult Use Dispensing Organization
23License and the corresponding Medical Cannabis Dispensing
24Organization License issued under Section 15-37 of this Act.    
25    (d) (Blank). The dispensing organization agent
26identification cards shall be immediately returned to the

 

 

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1dispensing organization upon termination of employment.
2    (e) The Department shall not issue an agent identification
3card if the applicant is delinquent in filing any required tax
4returns or paying any amounts owed to the State of Illinois.
5    (f) Any card lost by a dispensing organization agent shall
6be reported to the Illinois State Police and the Department
7immediately upon discovery of the loss.
8    (g) An applicant shall be denied a dispensing organization
9agent identification card renewal if he or she fails to
10complete the training provided for in this Section.
11    (h) A dispensing organization agent shall only be required
12to hold one dispensing organization agent identification card
13for the same employer regardless of what type of dispensing
14organization license the employer holds. For agent cards
15issued to all agents except agents-in-charge and principal
16officers, the card shall not be specific to any individual
17dispensing organization.    
18    (i) Cannabis retail sales training requirements.
19        (1) Within 90 days of September 1, 2019, or 90 days of
20    employment, whichever is later, all owners, managers,
21    employees, and agents involved in the handling or sale of
22    cannabis or cannabis-infused product employed by an adult
23    use dispensing organization or medical cannabis dispensing
24    organization as defined in Section 10 of the Compassionate
25    Use of Medical Cannabis Program Act shall attend and
26    successfully complete a Responsible Vendor Program.

 

 

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1        (2) Each owner, manager, employee, and agent of an
2    adult use dispensing organization or medical cannabis
3    dispensing organization shall successfully complete the
4    program annually.
5        (3) Responsible Vendor Program Training modules shall
6    include at least 2 hours of instruction time approved by
7    the Department including:
8            (i) Health and safety concerns of cannabis use,
9        including the responsible use of cannabis, its
10        physical effects, onset of physiological effects,
11        recognizing signs of impairment, and appropriate
12        responses in the event of overconsumption.
13            (ii) Training on laws and regulations on driving
14        while under the influence and operating a watercraft
15        or snowmobile while under the influence.
16            (iii) Sales to minors prohibition. Training shall
17        cover all relevant Illinois laws and rules.
18            (iv) Quantity limitations on sales to purchasers.
19        Training shall cover all relevant Illinois laws and
20        rules.
21            (v) Acceptable forms of identification. Training
22        shall include:
23                (I) How to check identification; and
24                (II) Common mistakes made in verification;
25            (vi) Safe storage of cannabis;
26            (vii) Compliance with all inventory tracking

 

 

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1        system regulations;
2            (viii) Waste handling, management, and disposal;
3            (ix) Health and safety standards;
4            (x) Maintenance of records;
5            (xi) Security and surveillance requirements;
6            (xii) Permitting inspections by State and local
7        licensing and enforcement authorities;
8            (xiii) Privacy issues;
9            (xiv) Packaging and labeling requirements    
10        requirement for sales to purchasers; and
11            (xv) Other areas as determined by rule.
12    (j) Blank.
13    (k) Upon the successful completion of the Responsible
14Vendor Program, the provider shall deliver proof of completion
15either through mail or electronic communication to the
16dispensing organization, which shall retain a copy of the
17certificate.
18    (l) The license of a dispensing organization or medical
19cannabis dispensing organization whose owners, managers,
20employees, or agents fail to comply with this Section may be
21suspended or permanently revoked under Section 15-145 or may
22face other disciplinary action.
23    (m) The regulation of dispensing organization and medical
24cannabis dispensing employer and employee training is an
25exclusive function of the State, and regulation by a unit of
26local government, including a home rule unit, is prohibited.

 

 

10400SB3222ham002- 501 -LRB104 19119 BDA 38710 a

1This subsection (m) is a denial and limitation of home rule
2powers and functions under subsection (h) of Section 6 of
3Article VII of the Illinois Constitution.
4    (n) Persons seeking Department approval to offer the
5training required by paragraph (3) of subsection (i) may apply
6for such approval between August 1 and August 15 of each
7odd-numbered year in a manner prescribed by the Department.
8    (o) Persons seeking Department approval to offer the
9training required by paragraph (3) of subsection (i) shall
10submit a nonrefundable application fee of $2,000 to be
11deposited into the Cannabis Regulation Fund or a fee as may be
12set by rule. Any changes made to the training module shall be
13approved by the Department.
14    (p) The Department shall not unreasonably deny approval of
15a training module that meets all the requirements of paragraph
16(3) of subsection (i). A denial of approval shall include a
17detailed description of the reasons for the denial.
18    (q) Any person approved to provide the training required
19by paragraph (3) of subsection (i) shall submit an application
20for re-approval every 2 years from the date of approval    
21between August 1 and August 15 of each odd-numbered year and
22include a nonrefundable application fee of $2,000 to be
23deposited into the Cannabis Regulation Fund or a fee as may be
24set by rule.
25    (r) All persons applying to become or renewing their
26registrations to be agents, including agents-in-charge and

 

 

10400SB3222ham002- 502 -LRB104 19119 BDA 38710 a

1principal officers, shall disclose any disciplinary action
2taken against them that may have occurred in Illinois, another
3state, or another country in relation to their employment at a
4cannabis business establishment or at any cannabis cultivation
5center, processor, infuser, dispensary, or other cannabis
6business establishment.
7    (s) An agent applicant may begin employment at a
8dispensing organization while the agent applicant's
9identification card application is pending. Upon approval, the
10Department shall issue the agent's identification card to the
11agent. If denied, the dispensing organization and the agent
12applicant shall be notified and the agent applicant must cease
13all activity at the dispensing organization immediately.
14    (t) The Department and the Department of Agriculture may
15develop and implement an integrated system to issue an agent
16identification card which identifies a dispensary agent
17licensed by the Department as well as any cultivator, craft
18grower, transporter, community college program, or infuser
19license or registration the agent may simultaneously hold.    
20(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
21102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
225-13-22.)
 
23    (410 ILCS 705/15-45)
24    Sec. 15-45. Renewal.
25    (a) All Adult Use Dispensing Organization Licenses shall

 

 

10400SB3222ham002- 503 -LRB104 19119 BDA 38710 a

1expire on March 31 of even-numbered years.
2    (b) Agent identification cards shall expire one year from
3the date they are issued.
4    (c) Dispensing organizations Licensees and dispensing
5agents shall submit a renewal application as provided by the
6Department and pay the required renewal fee. The Department
7shall require an agent, employee, contracting, and
8subcontracting diversity report and an environmental impact
9report with its renewal application. No license or agent
10identification card shall be renewed if it is currently under
11revocation or suspension for violation of this Article or any
12rules that may be adopted under this Article or the licensee,
13principal officer, board member, person having a financial or
14voting interest of 5% or greater in the licensee, or agent is
15delinquent in filing any required tax returns or paying any
16amounts owed to the State of Illinois.
17    (d) Renewal fees are:
18        (1) For a dispensing organization, except as provided
19    in subsection (d-5):
20            (A) $60,000 or the proportional prorated amount,
21        to be deposited into the Cannabis Regulation Fund; and
22            (B) $10,000 or the proportional prorated amount,
23        to be deposited into the Compassionate Use of Medical
24        Cannabis Fund, if the dispensing organization also
25        holds a Medical Cannabis Dispensing Organization
26        License issued pursuant to Section 15-37 of this Act.

 

 

10400SB3222ham002- 504 -LRB104 19119 BDA 38710 a

1        (2) For an agent identification card, $100, to be
2    deposited into the Cannabis Regulation Fund.
3    (d-5) The Department of Financial and Professional
4Regulation shall provide hardship waivers for dispensing
5organization renewal fees due to the Department pursuant to
6the provisions below:
7        (1) The dispensing organization attests that the
8    dispensing organization or applicant for renewal,
9    including all individuals and entities with 10% or greater
10    ownership and all parent companies, subsidiaries, and
11    affiliates, have no more than 2 other licenses for
12    cannabis business establishments in the State.
13        (2) For dispensing organizations that have a gross
14    income of $50,000 or less from the prior calendar year,
15    the Department shall waive the full renewal fee. In order
16    to qualify for this full waiver, the dispensing
17    organization shall provide income verification from the
18    Department of Revenue and any other information the
19    Department may require in a form or manner prescribed by
20    the Department.
21        (3) For dispensing organizations that have a gross
22    income of more than $50,000 and less than or equal to
23    $750,000 from the prior calendar year, the Department
24    shall waive 50% of the full renewal fee. In order to
25    qualify for this waiver, the dispensing organization shall
26    provide income verification from the Department of Revenue

 

 

10400SB3222ham002- 505 -LRB104 19119 BDA 38710 a

1    and any other information the Department may require in a
2    form or manner prescribed by the Department.    
3    (e) If a dispensing organization fails to renew its
4license before expiration, the dispensing organization shall
5cease operations until the license is renewed.
6    (f) If a dispensing organization agent fails to renew his
7or her registration before its expiration, he or she shall
8cease to perform duties authorized by this Article at a
9dispensing organization until his or her registration is
10renewed.
11    (g) Any dispensing organization that continues to operate
12or dispensing agent that continues to perform duties
13authorized by this Article at a dispensing organization that
14fails to renew its license is subject to penalty as provided in
15this Article, or any rules that may be adopted pursuant to this
16Article.
17    (h) The Department shall not renew a license if the
18applicant is delinquent in filing any required tax returns or
19paying any amounts owed to the State of Illinois. The
20Department shall not renew a dispensing agent identification
21card if the applicant is delinquent in filing any required tax
22returns or paying any amounts owed to the State of Illinois.
23(Source: P.A. 101-27, eff. 6-25-19.)
 
24    (410 ILCS 705/15-70)
25    Sec. 15-70. Operational requirements; prohibitions.

 

 

10400SB3222ham002- 506 -LRB104 19119 BDA 38710 a

1    (a) A dispensing organization shall operate in accordance
2with the representations made in its application and license
3materials. It shall be in compliance with this Act and rules.
4    (b) (Blank) A dispensing organization must include the
5legal name of the dispensary on the packaging of any cannabis
6product it sells.
7    (c) All cannabis, cannabis-infused products, and cannabis
8seeds must be obtained from an Illinois registered adult use
9cultivation center, craft grower, infuser, or another
10dispensary.
11    (c-5) A dispensing organization with a Medical Cannabis
12Dispensing Organization license may sell cannabis and
13cannabis-infused products purchased from any cultivation
14center, craft grower, infuser, or other dispensary to persons
15over 21 years of age and to qualifying patients, designated
16caregivers, provisional patients, and Opioid Alternative
17Patient Program participants.    
18    (d) Dispensing organizations are prohibited from selling
19any product containing alcohol except tinctures, which must be
20limited to containers that are no larger than 100 milliliters.
21    (e) A dispensing organization shall inspect and count
22product received from a transporting organization, adult use
23cultivation center, craft grower, infuser organization, or
24other dispensing organization before dispensing it.
25    (f) A dispensing organization may only accept cannabis
26deliveries into a restricted access area. Deliveries may not

 

 

10400SB3222ham002- 507 -LRB104 19119 BDA 38710 a

1be accepted through the public or limited access areas unless
2otherwise approved by the Department.
3    (g) A dispensing organization shall maintain compliance
4with State and local building, fire, and zoning requirements
5or regulations.
6    (h) A dispensing organization shall submit a list to the
7Department of the names of all service professionals that will
8work at the dispensary. The list shall include a description
9of the type of business or service provided. Changes to the
10service professional list shall be promptly provided. No
11service professional shall work in the dispensary until the
12name is provided to the Department on the service professional
13list.
14    (i) A dispensing organization's license allows for a
15dispensary to be operated only at a single location.
16    (j) A dispensary may operate between 6 a.m. and 2 a.m. 10
17p.m. local time, subject to local zoning ordinances or
18resolutions.
19    (k) A dispensing organization must keep all lighting
20outside and inside the dispensary in good working order and
21wattage sufficient for security cameras.
22    (l) A dispensing organization must keep all air treatment
23systems that will be installed to reduce odors in good working
24order.
25    (m) A dispensing organization shall maintain a security
26guard or security guards to provide on-site security must

 

 

10400SB3222ham002- 508 -LRB104 19119 BDA 38710 a

1contract with a private security contractor that is licensed
2under Section 10-5 of the Private Detective, Private Alarm,
3Private Security, Fingerprint Vendor, and Locksmith Act of
42004 to provide on-site security at all hours of the
5dispensary's operation.
6    (n) A dispensing organization shall ensure that any
7building or equipment used by a dispensing organization for
8the storage or sale of cannabis is maintained in a clean and
9sanitary condition.
10    (o) The dispensary shall be free from infestation by
11insects, rodents, or pests.
12    (p) A dispensing organization shall not:
13        (1) Produce or manufacture cannabis;
14        (2) Accept a cannabis product from an adult use
15    cultivation center, craft grower, infuser, dispensing
16    organization, or transporting organization unless it is
17    pre-packaged and labeled in accordance with this Act and
18    any rules that may be adopted pursuant to this Act;
19        (3) Obtain cannabis or cannabis-infused products from
20    outside the State of Illinois;
21        (4) Sell cannabis or cannabis-infused products to a
22    purchaser unless the dispensing organization is licensed
23    under the Compassionate Use of Medical Cannabis Program
24    Act, and the individual is registered under the
25    Compassionate Use of Medical Cannabis Program or the
26    purchaser has been verified to be 21 years of age or older;

 

 

10400SB3222ham002- 509 -LRB104 19119 BDA 38710 a

1        (5) Enter into an exclusive agreement with any adult
2    use cultivation center, craft grower, or infuser.
3    Dispensaries shall provide consumers an assortment of
4    products from various cannabis business establishment
5    licensees such that the inventory available for sale at
6    any dispensary from any single cultivation center, craft
7    grower, processor, transporter, or infuser entity shall
8    not be more than 40% of the total inventory available for
9    sale. For the purpose of this subsection, a cultivation
10    center, craft grower, processor, or infuser shall be
11    considered part of the same entity if the licensees share
12    at least one principal officer. The Department may request
13    that a dispensary diversify its products as needed or
14    otherwise discipline a dispensing organization for
15    violating this requirement;
16        (6) Refuse to conduct business with an adult use
17    cultivation center, craft grower, transporting
18    organization, or infuser that has the ability to properly
19    deliver the product and is permitted by the Department of
20    Agriculture, on the same terms as other adult use
21    cultivation centers, craft growers, infusers, or
22    transporters with whom it is dealing;
23        (7) (Blank); Operate drive-through windows;
24        (7.5) Separate an Adult Use Dispensing Organization
25    License from a Medical Cannabis Dispensing Organization
26    License issued under Section 15-37;    

 

 

10400SB3222ham002- 510 -LRB104 19119 BDA 38710 a

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

 

 

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1    Alternative Patient Program participant;
2        (17) Sell cannabis, cannabis concentrate, or
3    cannabis-infused products in combination or bundled with
4    each other or any other items for one price, and each item
5    of cannabis, concentrate, or cannabis-infused product must
6    be separately identified by quantity and price on the
7    receipt; or    
8        (18) Sell cannabis, cannabis concentrate, or
9    cannabis-infused products to a registered qualifying
10    patient, provisional patient, designated caregiver, or an
11    Opioid Alternative Patient Program participant without
12    first affixing any warning label required under any State
13    or federal law, rule, or regulation. Violate any other
14    requirements or prohibitions set by Department rules.
15    (q) It is unlawful for any person having an Early Approval
16Adult Use Dispensing Organization License, a Conditional Adult
17Use Dispensing Organization License, an Adult Use Dispensing
18Organization License, or a medical cannabis dispensing
19organization license issued under the Compassionate Use of
20Medical Cannabis Program Act or any officer, associate,
21member, representative, or agent of such licensee to accept,
22receive, or borrow money or anything else of value or accept or
23receive credit (other than merchandising credit in the
24ordinary course of business for a period not to exceed 30 days)
25directly or indirectly from any adult use cultivation center,
26craft grower, infuser, or transporting organization in

 

 

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1exchange for preferential placement on the dispensing
2organization's shelves, display cases, or website. This
3includes anything received or borrowed or from any
4stockholders, officers, agents, or persons connected with an
5adult use cultivation center, craft grower, infuser, or
6transporting organization.
7    (r) It is unlawful for any person having an Early Approval
8Adult Use Dispensing Organization License, a Conditional Adult
9Use Dispensing Organization License, an Adult Use Dispensing
10Organization License, or a medical cannabis dispensing
11organization license issued under the Compassionate Use of
12Medical Cannabis Program to enter into any contract with any
13person licensed to cultivate, process, or transport cannabis
14whereby such dispensing organization agrees not to sell any
15cannabis cultivated, processed, transported, manufactured, or
16distributed by any other cultivator, transporter, or infuser,
17and any provision in any contract violative of this Section
18shall render the whole of such contract void and no action
19shall be brought thereon in any court.
20(Source: P.A. 104-417, eff. 8-15-25.)
 
21    (410 ILCS 705/15-85)
22    Sec. 15-85. Dispensing cannabis.
23    (a) Before a dispensing organization agent dispenses
24cannabis to a purchaser, the agent shall:
25        (1) Verify the age of the purchaser by checking a

 

 

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

 

 

10400SB3222ham002- 514 -LRB104 19119 BDA 38710 a

1    (b) A dispensing organization shall refuse to sell
2cannabis or cannabis-infused products to any person unless the
3person produces a valid identification showing that the person
4is 21 years of age or older. A medical cannabis dispensing
5organization may sell cannabis or cannabis-infused products to
6a person who is under 21 years of age if the sale complies with
7the provisions of the Compassionate Use of Medical Cannabis
8Program Act and rules.
9    (c) For the purposes of this Section, valid identification
10must:
11        (1) Be valid and unexpired;
12        (2) Contain a photograph and the date of birth of the
13    person.
14    (d) In accordance with this amendatory Act of the 104th
15General Assembly, a dispensing organization may offer pickup
16or drive-through locations for cannabis, cannabis concentrate,
17or cannabis-infused products.    
18    (e) Notwithstanding Sections 11-502.1 and 11-502.15 of the
19Illinois Vehicle Code, the requirement that cannabis be
20inaccessible shall not apply to adult-use cannabis or medical
21cannabis lawfully purchased from a licensed dispensing
22organization if the cannabis is transported in a secured,
23sealed, odor-proof, child-resistant cannabis container that is
24in its original packaging.    
25(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
26102-98, eff. 7-15-21.)
 

 

 

10400SB3222ham002- 515 -LRB104 19119 BDA 38710 a

1    (410 ILCS 705/15-100)
2    Sec. 15-100. Security.
3    (a) A dispensing organization shall implement security
4measures to deter and prevent entry into and theft of cannabis
5or currency.
6    (b) A dispensing organization shall submit any changes to
7the floor plan or security plan to the Department for
8pre-approval. All cannabis shall be maintained and stored in a
9restricted access area during construction.
10    (c) The dispensing organization shall implement security
11measures to protect the premises, purchasers, and dispensing
12organization agents including, but not limited to the
13following:
14        (1) Establish a locked door or barrier between the
15    facility's entrance and the limited access area;
16        (2) Prevent individuals from remaining on the premises
17    if they are not engaging in activity permitted by this Act
18    or rules;
19        (3) Develop a policy that addresses the maximum
20    capacity and purchaser flow in the waiting rooms and
21    limited access areas;
22        (4) Dispose of cannabis in accordance with this Act
23    and rules;
24        (5) During hours of operation, store and dispense all
25    cannabis in from the restricted access area. During

 

 

10400SB3222ham002- 516 -LRB104 19119 BDA 38710 a

1    operational hours, cannabis shall be stored in an enclosed
2    locked room or cabinet and accessible only to specifically
3    authorized dispensing organization agents;
4        (5.5) During hours of operation, dispense all cannabis
5    from the restricted access area, including a drive-through
6    window, or from a pickup location in close proximity to
7    the restricted access area. The dispensing organization
8    shall, prior to dispensing the cannabis, confirm
9    compliance with Section 15-85 of this Act. As used in this
10    paragraph, "pickup location in close proximity" means an
11    area contiguous to the real property of the dispensary,
12    such as a sidewalk or parking lot;    
13        (6) When the dispensary is closed, store all cannabis
14    and currency in a reinforced vault room in the restricted
15    access area and in a manner as to prevent diversion,
16    theft, or loss;
17        (7) Keep the reinforced vault room and any other
18    equipment or cannabis storage areas securely locked and
19    protected from unauthorized entry;
20        (8) Keep an electronic daily log of dispensing
21    organization agents with access to the reinforced vault
22    room and knowledge of the access code or combination;
23        (9) Keep all locks and security equipment in good
24    working order;
25        (10) Maintain an operational security and alarm system
26    at all times;

 

 

10400SB3222ham002- 517 -LRB104 19119 BDA 38710 a

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

 

 

10400SB3222ham002- 518 -LRB104 19119 BDA 38710 a

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

 

 

10400SB3222ham002- 519 -LRB104 19119 BDA 38710 a

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

 

 

10400SB3222ham002- 520 -LRB104 19119 BDA 38710 a

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

 

 

10400SB3222ham002- 521 -LRB104 19119 BDA 38710 a

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

 

 

10400SB3222ham002- 522 -LRB104 19119 BDA 38710 a

1    request. Recordings shall not be destroyed or altered and
2    shall be retained for at least 60 90 days. Recordings
3    shall be retained as long as necessary if the dispensing
4    organization is aware of the loss or theft of cannabis or a
5    pending criminal, civil, or administrative investigation
6    or legal proceeding for which the recording may contain
7    relevant information;
8        (5) The ability to immediately produce a clear, color
9    still photo from the surveillance video, either live or
10    recorded;
11        (6) A date and time stamp embedded on all video
12    surveillance recordings. The date and time shall be
13    synchronized and set correctly and shall not significantly
14    obscure the picture;
15        (7) The ability to remain operational during a power
16    outage and ensure all access doors are not solely
17    controlled by an electronic access panel to ensure that
18    locks are not released during a power outage;
19        (8) All video surveillance equipment shall allow for
20    the exporting of still images in an industry standard
21    image format, including .jpg, .bmp, and .gif. Exported
22    video shall have the ability to be archived in a
23    proprietary format that ensures authentication of the
24    video and guarantees that no alteration of the recorded
25    image has taken place. Exported video shall also have the
26    ability to be saved in an industry standard file format

 

 

10400SB3222ham002- 523 -LRB104 19119 BDA 38710 a

1    that can be played on a standard computer operating
2    system. All recordings shall be erased or destroyed before
3    disposal;
4        (9) The video surveillance system shall be operational
5    during a power outage with a 4-hour minimum battery
6    backup;
7        (10) A video camera or cameras recording at each
8    point-of-sale location allowing for the identification of
9    the dispensing organization agent distributing the
10    cannabis and any purchaser. The camera or cameras shall
11    capture the sale, the individuals and the computer
12    monitors used for the sale;
13        (11) A failure notification system that provides an
14    audible and visual notification of any failure in the
15    electronic video monitoring system; and
16        (12) All electronic video surveillance monitoring must
17    record at least the equivalent of 8 frames per second and
18    be available as recordings to the Department and the
19    Illinois State Police 24 hours a day via a secure
20    web-based portal with reverse functionality.
21    (j) The requirements contained in this Act are minimum
22requirements for operating a dispensing organization. The
23Department may establish additional requirements by rule.
24(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
25102-538, eff. 8-20-21.)
 

 

 

10400SB3222ham002- 524 -LRB104 19119 BDA 38710 a

1    (410 ILCS 705/15-135)
2    Sec. 15-135. Investigations.
3    (a) Dispensing organizations are subject to random and
4unannounced dispensary inspections and cannabis testing by the
5Department, the Department of Agriculture, the Department of
6Revenue, the Department of Public Health, the Illinois State
7Police, local law enforcement, local health officials, or as
8provided by rule. Inspections shall be:
9        (1) standard to each agency's requirements pursuant to
10    this Act and any administrative rules; and
11        (2) conducted using standardized inspection protocols,
12    including uniform inspection checklists and evaluation
13    criteria statewide.
14    Current inspection checklists shall be made available to
15licensees upon request. A written report summarizing the
16inspection shall be issued to the licensee within 45 calendar
17days of the inspection being completed. Any violation shall
18reference the specific provision violated in statute or
19administrative rule.    
20    (b) The Department and its authorized representatives may
21enter any place, including a vehicle, in which cannabis is
22held, stored, dispensed, sold, produced, delivered,
23transported, manufactured, or disposed of and inspect, in a
24reasonable manner, the place and all pertinent equipment,
25containers and labeling, and all things including records,
26files, financial data, sales data, shipping data, pricing

 

 

10400SB3222ham002- 525 -LRB104 19119 BDA 38710 a

1data, personnel data, research, papers, processes, controls,
2and facility, and inventory any stock of cannabis and obtain
3samples of any cannabis or cannabis-infused product, any
4labels or containers for cannabis, or paraphernalia.
5    (c) The Department may conduct an investigation of an
6applicant, application, dispensing organization, principal
7officer, dispensary agent, third party vendor, or any other
8party associated with a dispensing organization for an alleged
9violation of this Act or rules or to determine qualifications
10to be granted a registration by the Department.
11    (d) The Department may require an applicant or holder of
12any license issued pursuant to this Article to produce
13documents, records, or any other material pertinent to the
14investigation of an application or alleged violations of this
15Act or rules. Failure to provide the required material may be
16grounds for denial or discipline.
17    (e) Every person charged with preparation, obtaining, or
18keeping records, logs, reports, or other documents in
19connection with this Act and rules and every person in charge,
20or having custody, of those documents shall, upon request by
21the Department, make the documents immediately available for
22inspection and copying by the Department, the Department's
23authorized representative, or others authorized by law to
24review the documents.
25(Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21;
26102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)
 

 

 

10400SB3222ham002- 526 -LRB104 19119 BDA 38710 a

1    (410 ILCS 705/15-145)
2    Sec. 15-145. Grounds for discipline.
3    (a) The Department may deny issuance, refuse to renew or
4restore, or may reprimand, place on probation, suspend,
5revoke, or take other disciplinary or nondisciplinary action
6against any license or agent identification card or may impose
7a fine for any of the following:
8        (1) Material misstatement in furnishing information to
9    the Department;
10        (2) Violations of this Act or rules;
11        (3) Obtaining an authorization or license by fraud or
12    misrepresentation;
13        (4) A pattern of conduct that demonstrates
14    incompetence or that the applicant has engaged in conduct
15    or actions that would constitute grounds for discipline
16    under this Act;
17        (5) Aiding or assisting another person in violating
18    any provision of this Act or rules;
19        (6) Failing to respond to a written request for
20    information by the Department within 30 days;
21        (7) Engaging in unprofessional, dishonorable, or
22    unethical conduct of a character likely to deceive,
23    defraud, or harm the public;
24        (8) Adverse action by another United States
25    jurisdiction or foreign nation;

 

 

10400SB3222ham002- 527 -LRB104 19119 BDA 38710 a

1        (9) A finding by the Department that the licensee,
2    after having his or her license placed on suspended or
3    probationary status, has violated the terms of the
4    suspension or probation;
5        (10) Conviction, entry of a plea of guilty, nolo
6    contendere, or the equivalent in a State or federal court
7    of a principal officer or agent-in-charge of a felony
8    offense in accordance with Sections 2105-131, 2105-135,
9    and 2105-205 of the Department of Professional Regulation
10    Law of the Civil Administrative Code of Illinois;
11        (11) Excessive use of or addiction to alcohol,
12    narcotics, stimulants, or any other chemical agent or
13    drug;
14        (12) A finding by the Department of a discrepancy in a
15    Department audit of cannabis;
16        (13) A finding by the Department of a discrepancy in a
17    Department audit of capital or funds;
18        (14) A finding by the Department of acceptance of
19    cannabis from a source other than an Adult Use Cultivation
20    Center, craft grower, infuser, or transporting
21    organization licensed by the Department of Agriculture, or
22    a dispensing organization licensed by the Department;
23        (15) An inability to operate using reasonable
24    judgment, skill, or safety due to physical or mental
25    illness or other impairment or disability, including,
26    without limitation, deterioration through the aging

 

 

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1    process or loss of motor skills or mental incompetence;
2        (16) Failing to report to the Department within the
3    time frames established, or if not identified, 14 days, of
4    any adverse action taken against the dispensing
5    organization or an agent by a licensing jurisdiction in
6    any state or any territory of the United States or any
7    foreign jurisdiction, any governmental agency, any law
8    enforcement agency or any court defined in this Section;
9        (17) Any violation of the dispensing organization's
10    policies and procedures submitted to the Department
11    annually as a condition for licensure;
12        (18) Failure to inform the Department of any change of
13    address within 10 business days;
14        (19) Disclosing customer names, personal information,
15    or protected health information in violation of any State
16    or federal law;
17        (20) Operating a dispensary before obtaining a license
18    from the Department;
19        (21) Performing duties authorized by this Act prior to
20    receiving a license to perform such duties;
21        (22) Dispensing cannabis when prohibited by this Act
22    or rules;
23        (23) Any fact or condition that, if it had existed at
24    the time of the original application for the license,
25    would have warranted the denial of the license;
26        (24) Permitting a person without a valid agent

 

 

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1    identification card to perform licensed activities under
2    this Act;
3        (25) Failure to assign an agent-in-charge as required
4    by this Article;
5        (26) Failure to provide the training required by
6    paragraph (3) of subsection (i) of Section 15-40 within
7    the provided timeframe;
8        (27) Personnel insufficient in number or unqualified
9    in training or experience to properly operate the
10    dispensary business;
11        (28) Any pattern of activity that causes a harmful
12    impact on the community; and
13        (29) Failing to prevent diversion, theft, or loss of
14    cannabis; .
15        (30) Engaging in a pattern of nonpayment or late
16    payment for goods or services to a cannabis business
17    establishment; or    
18        (31) Engaging in predatory financial practices or
19    financial collusion, including, but not limited to,
20    bid-rigging and market allocation schemes.    
21    (b) All fines and fees imposed under this Section shall be
22paid within 60 days after the effective date of the order
23imposing the fine or as otherwise specified in the order.
24    (c) A circuit court order establishing that an
25agent-in-charge or principal officer holding an agent
26identification card is subject to involuntary admission as

 

 

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1that term is defined in Section 1-119 or 1-119.1 of the Mental
2Health and Developmental Disabilities Code shall operate as a
3suspension of that card.
4(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
5    (410 ILCS 705/15-155)
6    Sec. 15-155. Unlicensed practice; violation; civil
7penalty; cease and desist order.
8    (a) In addition to any other penalty provided by law, any
9person who practices, offers to practice, attempts to
10practice, or holds oneself out to practice as a licensed    
11dispensing organization owner, principal officer,
12agent-in-charge, or agent sells or offers for sale cannabis,
13cannabis-infused products, cannabis concentrates, or cannabis
14flower without being licensed under this Act shall, in
15addition to any other penalty provided by law, pay a civil
16penalty to the Department of Financial and Professional
17Regulation in an amount not to exceed $10,000 for each offense
18as determined by the Department. Each day a person engages in
19unlicensed practice in violation of this Section constitutes a
20separate violation. The civil penalty shall be assessed by the
21Department after a hearing is held in accordance with the
22provisions set forth in this Act regarding the provision of a
23hearing for the discipline of a licensee.
24    (a-5) Procedures for cease and desist orders under this
25Section are as follows:

 

 

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1        (1) The Secretary of the Department of Financial and
2    Professional Regulation may issue a cease and desist order
3    to any person doing business without the required license,
4    when, in the opinion of the Secretary, the person is
5    violating or is about to violate any provision of this Act
6    or any rule or requirement imposed in writing by the
7    Department as a condition of granting any authorization
8    permitted by this Act. The cease and desist order under
9    this Section may be issued before a hearing.
10        (2) The Secretary shall serve notice of the
11    Secretary's action, including, but not limited to, a
12    statement of the reasons for the action, either personally
13    or by certified mail. Service by certified mail shall be
14    deemed completed when the notice is deposited in the U.S.
15    Mail.
16        (3) Within 10 days after service of the cease and
17    desist order, the licensee or other person may request a
18    hearing in writing. The Secretary shall schedule a hearing
19    within 90 days after the request for a hearing unless
20    otherwise agreed to by the parties.
21        (4) The Secretary may withdraw a cease and desist
22    order at any time.
23        (5) The powers vested in the Secretary by this Section
24    are in addition to any and all other powers and remedies
25    vested in the Secretary by law, and nothing in this
26    Section shall be construed as requiring that the Secretary

 

 

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1    shall employ the power conferred in this Section instead
2    of or as a condition precedent to the exercise of any other
3    power or remedy vested in the Secretary.
4        (6) The Secretary may seek to compel compliance with
5    the cease and desist order in the circuit court through
6    the Attorney General. Any person in violation of a cease
7    and desist order issued by the Department is subject to
8    all penalties provided by law.
9    (b) The Department, the Attorney General, any State or
10local law enforcement agency, or any State's Attorney has the
11authority and power to investigate any and all unlicensed
12activity.
13    (c) The civil penalty shall be paid within 60 days after
14the effective date of the order imposing the civil penalty or
15in accordance with the order imposing the civil penalty. The
16order shall constitute a judgment and may be filed and
17execution had thereon in the same manner as any judgment from
18any court of this State.
19    (d) A violation of subsection (a) is an unlawful practice
20under Section 2 of the Consumer Fraud and Deceptive Business
21Practices Act. All remedies, penalties, and authority granted
22to the Attorney General under that Act shall be available for
23the enforcement of this Act.
24    (e) Nothing in this Section prohibits a unit of local
25government from enacting a local law or ordinance to carry out
26enforcement activities and assess civil penalties against

 

 

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1unlicensed cannabis activities.    
2(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
3    (410 ILCS 705/20-15)
4    Sec. 20-15. Conditional Adult Use Cultivation Center
5application.
6    (a) If the Department of Agriculture makes available
7additional cultivation center licenses pursuant to Section
820-5, applicants for a Conditional Adult Use Cultivation
9Center License shall electronically submit the following in
10such form as the Department of Agriculture may direct:
11        (1) the nonrefundable application fee set by rule by
12    the Department of Agriculture, to be deposited into the
13    Cannabis Regulation Fund;
14        (2) the legal name of the cultivation center;
15        (3) the proposed physical address of the cultivation
16    center;
17        (4) the name, address, social security number, and
18    date of birth of each principal officer and board member
19    of the cultivation center; each principal officer and
20    board member shall be at least 21 years of age;
21        (5) the details of any administrative or judicial
22    proceeding in which any of the principal officers or board
23    members of the cultivation center (i) pled guilty, were
24    convicted, were fined, or had a registration or license
25    suspended or revoked, or (ii) managed or served on the

 

 

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1    board of a business or non-profit organization that pled
2    guilty, was convicted, was fined, or had a registration or
3    license suspended or revoked;
4        (6) proposed operating bylaws that include procedures
5    for the oversight of the cultivation center, including the
6    development and implementation of a plant monitoring
7    system, accurate recordkeeping, staffing plan, and
8    security plan approved by the Illinois State Police that
9    are in accordance with the rules issued by the Department
10    of Agriculture under this Act. A physical inventory shall
11    be performed of all plants and cannabis on a weekly basis
12    by the cultivation center;
13        (7) verification from the Illinois State Police that
14    all background checks of the prospective principal
15    officers, board members, and agents of the cannabis
16    business establishment have been conducted;
17        (8) a copy of the current local zoning ordinance or
18    permit and verification that the proposed cultivation
19    center is in compliance with the local zoning rules and
20    distance limitations established by the local
21    jurisdiction;
22        (9) proposed employment practices, in which the
23    applicant must demonstrate a plan of action to inform,
24    hire, and educate minorities, women, veterans, and persons
25    with disabilities, engage in fair labor practices, and
26    provide worker protections;

 

 

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1        (10) whether an applicant can demonstrate experience
2    in or business practices that promote economic empowerment
3    in Disproportionately Impacted Areas;
4        (11) experience with the cultivation of agricultural
5    or horticultural products, operating an agriculturally
6    related business, or operating a horticultural business;
7        (12) a description of the enclosed, locked facility
8    where cannabis will be grown, harvested, manufactured,
9    processed, packaged, or otherwise prepared for
10    distribution to a dispensing organization;
11        (13) a survey of the enclosed, locked facility,
12    including the space used for cultivation;
13        (14) cultivation, processing, inventory, and packaging
14    plans;
15        (15) a description of the applicant's experience with
16    agricultural cultivation techniques and industry
17    standards;
18        (16) a list of any academic degrees, certifications,
19    or relevant experience of all prospective principal
20    officers, board members, and agents of the related
21    business;
22        (17) the identity of every person having a financial
23    or voting interest of 5% or greater in the cultivation
24    center operation with respect to which the license is
25    sought, whether a trust, corporation, partnership, limited
26    liability company, or sole proprietorship, including the

 

 

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1    name and address of each person;
2        (18) a plan describing how the cultivation center will
3    address each of the following:
4            (i) energy needs, including estimates of monthly
5        electricity and gas usage, to what extent it will
6        procure energy from a local utility or from on-site
7        generation, and if it has or will adopt a sustainable
8        energy use and energy conservation policy;
9            (ii) water needs, including estimated water draw
10        and if it has or will adopt a sustainable water use and
11        water conservation policy; and
12            (iii) waste management, including if it has or
13        will adopt a waste reduction policy;
14        (19) a diversity plan that includes a narrative of not
15    more than 2,500 words that establishes a goal of diversity
16    in ownership, management, employment, and contracting to
17    ensure that diverse participants and groups are afforded
18    equality of opportunity;
19        (20) any other information required by rule;
20        (21) a recycling plan:
21            (A) Purchaser packaging, including cartridges,
22        shall be accepted by the applicant and recycled.
23            (B) Any recyclable waste generated by the cannabis
24        cultivation facility shall be recycled per applicable
25        State and local laws, ordinances, and rules.
26            (C) Any cannabis waste, liquid waste, or hazardous

 

 

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1        waste shall be disposed of in accordance with 8 Ill.
2        Adm. Code 1000.460, except, to the greatest extent
3        feasible, all cannabis plant waste will be rendered
4        unusable by grinding and incorporating the cannabis
5        plant waste with compostable mixed waste to be
6        disposed of in accordance with 8 Ill. Adm. Code
7        1000.460(g)(1);
8        (22) commitment to comply with local waste provisions:
9    a cultivation facility must remain in compliance with
10    applicable State and federal environmental requirements,
11    including, but not limited to:
12            (A) storing, securing, and managing all
13        recyclables and waste, including organic waste
14        composed of or containing finished cannabis and
15        cannabis products, in accordance with applicable State
16        and local laws, ordinances, and rules; and
17            (B) disposing liquid waste containing cannabis or
18        byproducts of cannabis processing in compliance with
19        all applicable State and federal requirements,
20        including, but not limited to, the cannabis
21        cultivation facility's permits under Title X of the
22        Environmental Protection Act; and
23        (23) a commitment to a technology standard for
24    resource efficiency of the cultivation center facility.
25            (A) A cannabis cultivation facility commits to use
26        resources efficiently, including energy and water. For

 

 

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1        the following, a cannabis cultivation facility commits
2        to meet or exceed the technology standard identified
3        in items (i), (ii), (iii), and (iv), which may be
4        modified by rule:
5                (i) lighting systems, including light bulbs;
6                (ii) HVAC system;
7                (iii) water application system to the crop;
8            and
9                (iv) filtration system for removing
10            contaminants from wastewater.
11            (B) Lighting. The Lighting Power Densities (LPD)
12        for cultivation space commits to not exceed an average
13        of 36 watts per gross square foot of active and growing
14        space canopy, or all installed lighting technology
15        shall meet a photosynthetic photon efficacy (PPE) of
16        no less than 2.2 micromoles per joule fixture and
17        shall be featured on the DesignLights Consortium (DLC)
18        Horticultural Specification Qualified Products List
19        (QPL). In the event that DLC requirement for minimum
20        efficacy exceeds 2.2 micromoles per joule fixture,
21        that PPE shall become the new standard.
22            (C) HVAC.
23                (i) The For cannabis grow operations with less
24            than 6,000 square feet of canopy, the licensee
25            commits that all HVAC units will be
26            high-efficiency ductless split HVAC units, or

 

 

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1            other more energy efficient equipment.
2                (ii) (Blank). For cannabis grow operations
3            with 6,000 square feet of canopy or more, the
4            licensee commits that all HVAC units will be
5            variable refrigerant flow HVAC units, or other
6            more energy efficient equipment.
7            (D) Water application.
8                (i) The cannabis cultivation facility commits
9            to use automated watering systems, including, but
10            not limited to, drip irrigation and flood tables,
11            to irrigate cannabis crop.
12                (ii) The cannabis cultivation facility commits
13            to measure runoff from watering events and report
14            this volume in its water usage plan, and that on
15            average, watering events shall have no more than
16            20% of runoff of water.
17            (E) Filtration. The cultivator commits that HVAC
18        condensate, dehumidification water, excess runoff, and
19        other wastewater produced by the cannabis cultivation
20        facility shall be captured and filtered to the best of
21        the facility's ability to achieve the quality needed
22        to be reused in subsequent watering rounds.
23            (F) Reporting energy use and efficiency as
24        required by rule.
25    (b) Applicants must submit all required information,
26including the information required in Section 20-10, to the

 

 

10400SB3222ham002- 540 -LRB104 19119 BDA 38710 a

1Department of Agriculture. Failure by an applicant to submit
2all required information may result in the application being
3disqualified.
4    (c) If the Department of Agriculture receives an
5application with missing information, the Department of
6Agriculture may issue a deficiency notice to the applicant.
7The applicant shall have 10 calendar days from the date of the
8deficiency notice to resubmit the incomplete information.
9Applications that are still incomplete after this opportunity
10to cure will not be scored and will be disqualified.
11    (d) (Blank).
12    (e) A cultivation center that is awarded a Conditional
13Adult Use Cultivation Center License pursuant to the criteria
14in Section 20-20 shall not grow, purchase, possess, or sell
15cannabis or cannabis-infused products until the person has
16received an Adult Use Cultivation Center License issued by the
17Department of Agriculture pursuant to Section 20-21 of this
18Act.
19(Source: P.A. 104-417, eff. 8-15-25.)
 
20    (410 ILCS 705/20-30)
21    Sec. 20-30. Cultivation center requirements; prohibitions.
22    (a) The operating documents of a cultivation center shall
23include procedures for the oversight of the cultivation
24center, a cannabis plant monitoring system including a
25physical inventory recorded weekly, accurate recordkeeping,

 

 

10400SB3222ham002- 541 -LRB104 19119 BDA 38710 a

1and a staffing plan.
2    (b) A cultivation center shall implement a security plan
3reviewed by the Illinois State Police that includes, but is
4not limited to: facility access controls, perimeter intrusion
5detection systems, personnel identification systems, 24-hour
6surveillance system to monitor the interior and exterior of
7the cultivation center facility and accessibility to
8authorized law enforcement, the Department of Public Health
9where processing takes place, and the Department of
10Agriculture in real time.
11    (c) All cultivation of cannabis by a cultivation center
12must take place in an enclosed, locked facility at the
13physical address provided to the Department of Agriculture
14during the licensing process. The cultivation center location
15shall only be accessed by the agents working for the
16cultivation center, the Department of Agriculture staff
17performing inspections, the Department of Public Health staff
18performing inspections, local and State law enforcement or
19other emergency personnel, contractors working on jobs
20unrelated to cannabis, such as installing or maintaining
21security devices or performing electrical wiring, transporting
22organization agents as provided in this Act, individuals in a
23mentoring or educational program approved by the State, or
24other individuals as provided by rule.
25    (d) A cultivation center may not sell or distribute any
26cannabis or cannabis-infused products to any person other than

 

 

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1a dispensing organization, craft grower, infuser organization,
2transporter, or as otherwise authorized by rule.
3    (e) A cultivation center may not either directly or
4indirectly discriminate in price between different dispensing
5organizations, craft growers, or infuser organizations that
6are purchasing a like grade, strain, brand, and quality of
7cannabis or cannabis-infused product. Nothing in this
8subsection (e) prevents a cultivation center from pricing
9cannabis differently based on differences in the cost of
10manufacturing or processing, the quantities sold, such as
11volume discounts, or the way the products are delivered.
12    (f) All cannabis harvested by a cultivation center and
13intended for distribution to a dispensing organization must be
14entered into a data collection system, packaged and labeled
15under Section 55-21, and placed into a cannabis container for
16transport. All cannabis harvested by a cultivation center and
17intended for distribution to a craft grower or infuser
18organization must be packaged in a labeled cannabis container
19and entered into a data collection system before transport.
20    (g) Cultivation centers are subject to random inspections
21by the Department of Agriculture, the Department of Public
22Health, local safety or health inspectors, the Illinois State
23Police, or as provided by rule.
24    (h) A cultivation center agent shall notify local law
25enforcement, the Illinois State Police, and the Department of
26Agriculture within 24 hours of the discovery of any loss or

 

 

10400SB3222ham002- 543 -LRB104 19119 BDA 38710 a

1theft. Notification shall be made by phone or in person, or by
2written or electronic communication.
3    (i) A cultivation center shall comply with all State and
4any applicable federal rules and regulations regarding the use
5of pesticides on cannabis plants.
6    (j) No person or entity shall hold any legal, equitable,
7ownership, or beneficial interest, directly or indirectly, of
8more than 3 cultivation centers licensed under this Article.
9Further, no person or entity that is employed by, an agent of,
10has a contract to receive payment in any form from a
11cultivation center, is a principal officer of a cultivation
12center, or entity controlled by or affiliated with a principal
13officer of a cultivation center shall hold any legal,
14equitable, ownership, or beneficial interest, directly or
15indirectly, in a cultivation that would result in the person
16or entity owning or controlling in combination with any
17cultivation center, principal officer of a cultivation center,
18or entity controlled or affiliated with a principal officer of
19a cultivation center by which he, she, or it is employed, is an
20agent of, or participates in the management of, more than 3
21cultivation center licenses.
22    (k) A cultivation center may not contain more than 210,000
23square feet of canopy space for plants in the flowering stage
24for cultivation of adult use cannabis as provided in this Act.
25    (l) A cultivation center may process cannabis, cannabis
26concentrates, and cannabis-infused products.

 

 

10400SB3222ham002- 544 -LRB104 19119 BDA 38710 a

1    (m) Beginning July 1, 2020, a cultivation center shall not
2transport cannabis or cannabis-infused products to a craft
3grower, dispensing organization, infuser organization, or
4laboratory licensed under this Act, unless it has obtained a
5transporting organization license.
6    (n) It is unlawful for any person having a cultivation
7center license or any officer, associate, member,
8representative, or agent of such licensee to offer or deliver
9money, or anything else of value, directly or indirectly to
10any person having an Early Approval Adult Use Dispensing
11Organization License, a Conditional Adult Use Dispensing
12Organization License, an Adult Use Dispensing Organization
13License, or a medical cannabis dispensing organization license
14issued under the Compassionate Use of Medical Cannabis Program
15Act, or to any person connected with or in any way
16representing, or to any member of the family of, such person
17holding an Early Approval Adult Use Dispensing Organization
18License, a Conditional Adult Use Dispensing Organization
19License, an Adult Use Dispensing Organization License, or a
20medical cannabis dispensing organization license issued under
21the Compassionate Use of Medical Cannabis Program Act, or to
22any stockholders in any corporation engaged in the retail sale
23of cannabis, or to any officer, manager, agent, or
24representative of the Early Approval Adult Use Dispensing
25Organization License, a Conditional Adult Use Dispensing
26Organization License, an Adult Use Dispensing Organization

 

 

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1License, or a medical cannabis dispensing organization license
2issued under the Compassionate Use of Medical Cannabis Program
3Act to obtain preferential placement within the dispensing
4organization, including, without limitation, on shelves and in
5display cases where purchasers can view products, or on the
6dispensing organization's website.
7    (o) A cultivation center must comply with any other
8requirements or prohibitions set by administrative rule of the
9Department of Agriculture.
10    (p) Cultivation centers shall retain at least 60 days of
11camera storage in any location or otherwise provided by rule.
12The Department may require footage to be maintained for
13purposes of an investigation.    
14(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
15102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
165-13-22.)
 
17    (410 ILCS 705/20-35)
18    Sec. 20-35. Cultivation center agent identification card.
19    (a) The Department of Agriculture shall:
20        (1) establish by rule the information required in an
21    initial application or renewal application for an agent
22    identification card submitted under this Act and the
23    nonrefundable fee to accompany the initial application or
24    renewal application;
25        (2) verify the information contained in an initial

 

 

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1    application or renewal application for an agent
2    identification card submitted under this Act, and approve
3    or deny an application within 30 days of receiving a
4    completed initial application or renewal application and
5    all supporting documentation required by rule;
6        (3) issue an agent identification card to a qualifying
7    agent within 15 business days of approving the initial
8    application or renewal application;
9        (4) enter the license number of the cultivation center
10    where the agent works; and
11        (5) allow for an electronic initial application and
12    renewal application process, and provide a confirmation by
13    electronic or other methods that an application has been
14    submitted. The Department of Agriculture may by rule
15    require prospective agents to file their applications by
16    electronic means and provide notices to the agents by
17    electronic means.
18    (b) An agent must keep his or her identification card
19visible at all times when on the property of the cultivation
20center at which the agent is employed.
21    (c) The agent identification cards shall contain the
22following:
23        (1) the name of the cardholder;
24        (2) the date of issuance and expiration date of the
25    identification card;
26        (3) a random 10-digit alphanumeric identification

 

 

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1    number containing at least 4 numbers and at least 4
2    letters that is unique to the holder;
3        (4) a photograph of the cardholder; and
4        (5) the legal name of the cultivation center employing
5    the agent.
6    (d) An agent identification card shall be immediately
7returned to the cultivation center of the agent upon
8termination of his or her employment.
9    (e) Any agent identification card lost by a cultivation
10center agent shall be reported to the Illinois State Police
11and the Department of Agriculture immediately upon discovery
12of the loss.
13    (f) The Department of Agriculture shall not issue an agent
14identification card if the applicant is delinquent in filing
15any required tax returns or paying any amounts owed to the
16State of Illinois.
17    (f-5) An agent applicant may begin employment at a
18cultivation center while the agent applicant's identification
19card application is pending. Upon approval, the Department
20shall issue the agent's identification card to the agent. If
21denied, the cultivation center and the agent applicant shall
22be notified and the agent applicant must cease all activity at
23the infuser organization immediately.    
24    (g) The Department and the Department of Financial and
25Professional Regulation may develop and implement an
26integrated system to issue an agent identification card that

 

 

10400SB3222ham002- 548 -LRB104 19119 BDA 38710 a

1identifies a cultivation center agent licensed by the
2Department, as well as any craft grower, transporter,
3dispensing organization, community college program, or infuser
4license or registration the agent may simultaneously hold.
5(Source: P.A. 101-27, eff. 6-25-19; 102-538, eff. 8-20-21.)
 
6    (410 ILCS 705/20-45)
7    Sec. 20-45. Renewal of cultivation center licenses and
8agent identification cards.
9    (a) Licenses and identification cards issued under this
10Act shall be renewed annually. A cultivation center shall
11receive written or electronic notice 90 days before the
12expiration of its current license that the license will
13expire. The Department of Agriculture shall grant a renewal
14within 45 days of submission of a renewal application if:
15        (1) the cultivation center submits a renewal
16    application and the required nonrefundable renewal fee of
17    $100,000, or another amount as the Department of
18    Agriculture may set by rule after January 1, 2021, to be
19    deposited into the Cannabis Regulation Fund.
20        (2) the Department of Agriculture has not suspended
21    the license of the cultivation center or suspended or
22    revoked the license for violating this Act or rules
23    adopted under this Act;
24        (3) the cultivation center has continued to operate in
25    accordance with all plans submitted as part of its

 

 

10400SB3222ham002- 549 -LRB104 19119 BDA 38710 a

1    application and approved by the Department of Agriculture
2    or any amendments thereto that have been approved by the
3    Department of Agriculture;
4        (4) the cultivation center has submitted an agent,
5    employee, contracting, and subcontracting diversity report
6    as required by the Department; and
7        (5) the cultivation center has submitted an
8    environmental impact report.
9    (b) If a cultivation center fails to renew its license
10before expiration, it shall cease operations until its license
11is renewed.
12    (c) If a cultivation center agent fails to renew his or her
13identification card before its expiration, he or she shall
14cease to work as an agent of the cultivation center until his
15or her identification card is renewed.
16    (d) Any cultivation center that continues to operate, or
17any cultivation center agent who continues to work as an
18agent, after the applicable license or identification card has
19expired without renewal is subject to the penalties provided
20under Section 45-5.
21    (e) The Department of Agriculture shall not renew a
22license or an agent identification card if the applicant is
23delinquent in filing any required tax returns or paying any
24amounts owed to the State of Illinois.    
25(Source: P.A. 101-27, eff. 6-25-19.)
 

 

 

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1    (410 ILCS 705/20-60 new)
2    Sec. 20-60. Unlicensed practice; violation; civil penalty.
3    (a) In addition to any other penalty provided by law, any
4person who practices, offers to practice, attempts to
5practice, or holds oneself out to practice as a cultivation
6center, infuser, or craft grower, principal officer,
7agent-in-charge, or agent or who cultivates, processes,
8distributes, sells, or offers for sale cannabis,
9cannabis-infused products, cannabis concentrates, or cannabis
10flower without being licensed under this Act shall, in
11addition to any other penalty provided by law, pay a civil
12penalty to the Department of Agriculture in an amount not to
13exceed $10,000 for each offense. Each day any person engages
14in unlicensed practice in violation of the provisions of this
15Section constitutes a separate offense. The civil penalty
16shall be assessed by the Department after a hearing is held in
17accordance with the provisions set forth in this Act regarding
18hearings for the discipline of a licensee.
19    (b) The Department, the Attorney General, any State or
20local law enforcement agency, or any State's Attorney has the
21authority and power to investigate any and all unlicensed
22activity described under this Section.
23    (c) The civil penalty shall be paid within 60 days after
24the effective date of the order imposing the civil penalty or
25in accordance with the order imposing the civil penalty. The
26order shall constitute a judgment and may be filed and

 

 

10400SB3222ham002- 551 -LRB104 19119 BDA 38710 a

1execution had thereon in the same manner as any judgment from
2any court of this State.
3    (d) In addition to any other remedies or penalties
4provided by law, a unit of local government may suspend or
5revoke any locally established licenses held by the person,
6prohibit the person from further operations, and seize any
7cannabis or THC product.
8    (e) A violation of subsection (a) is an unlawful practice
9under Section 2 of the Consumer Fraud and Deceptive Business
10Practices Act. All remedies, penalties, and authority granted
11to the Attorney General under that Act shall be available for
12the enforcement of this Act.
13    (f) Nothing in this Section prohibits a unit of local
14government from enacting a local law or ordinance to carry out
15enforcement activities and assess civil penalties against
16unlicensed cannabis sales.
 
17    (410 ILCS 705/25-35)
18    (Section scheduled to be repealed on July 1, 2026)
19    Sec. 25-35. Community College Cannabis Vocational Training
20Pilot Program faculty participant agent identification card.
21    (a) The Department shall:
22        (1) establish by rule the information required in an
23    initial application or renewal application for an agent
24    identification card submitted under this Article and the
25    nonrefundable fee to accompany the initial application or

 

 

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1    renewal application;
2        (2) verify the information contained in an initial
3    application or renewal application for an agent
4    identification card submitted under this Article, and
5    approve or deny an application within 30 days of receiving
6    a completed initial application or renewal application and
7    all supporting documentation required by rule;
8        (3) issue an agent identification card to a qualifying
9    agent within 15 business days of approving the initial
10    application or renewal application;
11        (4) enter the license number of the community college
12    where the agent works; and
13        (5) allow for an electronic initial application and
14    renewal application process, and provide a confirmation by
15    electronic or other methods that an application has been
16    submitted. Each Department may by rule require prospective
17    agents to file their applications by electronic means and
18    to provide notices to the agents by electronic means.
19    (b) An agent must keep his or her identification card
20visible at all times when in the enclosed, locked facility, or
21facilities for which he or she is an agent.
22    (c) The agent identification cards shall contain the
23following:
24        (1) the name of the cardholder;
25        (2) the date of issuance and expiration date of the
26    identification card;

 

 

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1        (3) a random 10-digit alphanumeric identification
2    number containing at least 4 numbers and at least 4
3    letters that is unique to the holder;
4        (4) a photograph of the cardholder; and
5        (5) the legal name of the community college employing
6    the agent.
7    (d) An agent identification card shall be immediately
8returned to the community college of the agent upon
9termination of his or her employment.
10    (e) Any agent identification card lost shall be reported
11to the Illinois State Police and the Department of Agriculture
12immediately upon discovery of the loss.
13    (f) An agent applicant may begin employment at a Community
14College Cannabis Vocational Training Pilot Program while the
15agent applicant's identification card application is pending.
16Upon approval, the Department shall issue the agent's
17identification card to the agent. If denied, the Community
18College Cannabis Vocational Training Pilot Program and the
19agent applicant shall be notified and the agent applicant must
20cease all activity at the Community College Cannabis
21Vocational Training Pilot Program immediately.
22    (g) The Department of Agriculture shall not issue an agent
23identification card if the applicant is delinquent in filing
24any required tax returns or paying any amounts owed to the
25State of Illinois.    
26(Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21;

 

 

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1102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)
 
2    (410 ILCS 705/30-10)
3    Sec. 30-10. Application.
4    (a) When applying for a license, the applicant shall
5electronically submit the following in such form as the
6Department of Agriculture may direct:
7        (1) the nonrefundable application fee of $5,000 to be
8    deposited into the Cannabis Regulation Fund, or another
9    amount as the Department of Agriculture may set by rule
10    after January 1, 2021;
11        (2) the legal name of the craft grower;
12        (3) the proposed physical address of the craft grower;
13        (4) the name, address, social security number, and
14    date of birth of each principal officer and board member
15    of the craft grower; each principal officer and board
16    member shall be at least 21 years of age;
17        (5) the details of any administrative or judicial
18    proceeding in which any of the principal officers or board
19    members of the craft grower (i) pled guilty, were
20    convicted, were fined, or had a registration or license
21    suspended or revoked or (ii) managed or served on the
22    board of a business or non-profit organization that pled
23    guilty, was convicted, was fined, or had a registration or
24    license suspended or revoked;
25        (6) proposed operating bylaws that include procedures

 

 

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1    for the oversight of the craft grower, including the
2    development and implementation of a plant monitoring
3    system, accurate recordkeeping, staffing plan, and
4    security plan approved by the Illinois State Police that
5    are in accordance with the rules issued by the Department
6    of Agriculture under this Act; a physical inventory shall
7    be performed of all plants and on a weekly basis by the
8    craft grower;
9        (7) verification from the Illinois State Police that
10    all background checks of the prospective principal
11    officers, board members, and agents of the cannabis
12    business establishment have been conducted;
13        (8) a copy of the current local zoning ordinance or
14    permit and verification that the proposed craft grower is
15    in compliance with the local zoning rules and distance
16    limitations established by the local jurisdiction;
17        (9) proposed employment practices, in which the
18    applicant must demonstrate a plan of action to inform,
19    hire, and educate minorities, women, veterans, and persons
20    with disabilities, engage in fair labor practices, and
21    provide worker protections;
22        (10) whether an applicant can demonstrate experience
23    in or business practices that promote economic empowerment
24    in Disproportionately Impacted Areas;
25        (11) experience with the cultivation of agricultural
26    or horticultural products, operating an agriculturally

 

 

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1    related business, or operating a horticultural business;
2        (12) a description of the enclosed, locked facility
3    where cannabis will be grown, harvested, manufactured,
4    packaged, or otherwise prepared for distribution to a
5    dispensing organization or other cannabis business
6    establishment;
7        (13) a survey of the enclosed, locked facility,
8    including the space used for cultivation;
9        (14) cultivation, processing, inventory, and packaging
10    plans;
11        (15) a description of the applicant's experience with
12    agricultural cultivation techniques and industry
13    standards;
14        (16) a list of any academic degrees, certifications,
15    or relevant experience of all prospective principal
16    officers, board members, and agents of the related
17    business;
18        (17) the identity of every person having a financial
19    or voting interest of 5% or greater in the craft grower
20    operation, whether a trust, corporation, partnership,
21    limited liability company, or sole proprietorship,
22    including the name and address of each person;
23        (18) a plan describing how the craft grower will
24    address each of the following:
25            (i) energy needs, including estimates of monthly
26        electricity and gas usage, to what extent it will

 

 

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1        procure energy from a local utility or from on-site
2        generation, and if it has or will adopt a sustainable
3        energy use and energy conservation policy;
4            (ii) water needs, including estimated water draw
5        and if it has or will adopt a sustainable water use and
6        water conservation policy; and
7            (iii) waste management, including if it has or
8        will adopt a waste reduction policy;
9        (19) a recycling plan:
10            (A) Purchaser packaging, including cartridges,
11        shall be accepted by the applicant and recycled.
12            (B) Any recyclable waste generated by the craft
13        grower facility shall be recycled per applicable State
14        and local laws, ordinances, and rules.
15            (C) Any cannabis waste, liquid waste, or hazardous
16        waste shall be disposed of in accordance with 8 Ill.
17        Adm. Code 1000.460, except, to the greatest extent
18        feasible, all cannabis plant waste will be rendered
19        unusable by grinding and incorporating the cannabis
20        plant waste with compostable mixed waste to be
21        disposed of in accordance with 8 Ill. Adm. Code
22        1000.460(g)(1);
23        (20) a commitment to comply with local waste
24    provisions: a craft grower facility must remain in
25    compliance with applicable State and federal environmental
26    requirements, including, but not limited to:

 

 

10400SB3222ham002- 558 -LRB104 19119 BDA 38710 a

1            (A) storing, securing, and managing all
2        recyclables and waste, including organic waste
3        composed of or containing finished cannabis and
4        cannabis products, in accordance with applicable State
5        and local laws, ordinances, and rules; and
6            (B) disposing liquid waste containing cannabis or
7        byproducts of cannabis processing in compliance with
8        all applicable State and federal requirements,
9        including, but not limited to, the cannabis
10        cultivation facility's permits under Title X of the
11        Environmental Protection Act;
12        (21) a commitment to a technology standard for
13    resource efficiency of the craft grower facility.
14            (A) A craft grower facility commits to use
15        resources efficiently, including energy and water. For
16        the following, a craft grower cannabis cultivation    
17        facility commits to meet or exceed the technology
18        standard identified in paragraphs (i), (ii), (iii),
19        and (iv), which may be modified by rule:
20                (i) lighting systems, including light bulbs;
21                (ii) HVAC system;
22                (iii) water application system to the crop;
23            and
24                (iv) filtration system for removing
25            contaminants from wastewater.
26            (B) Lighting. The Lighting Power Densities (LPD)

 

 

10400SB3222ham002- 559 -LRB104 19119 BDA 38710 a

1        for cultivation space commits to not exceed an average
2        of 36 watts per gross square foot of active and growing
3        space canopy, or all installed lighting technology
4        shall meet a photosynthetic photon efficacy (PPE) of
5        no less than 2.2 micromoles per joule fixture and
6        shall be featured on the DesignLights Consortium (DLC)
7        Horticultural Specification Qualified Products List
8        (QPL). In the event that DLC requirement for minimum
9        efficacy exceeds 2.2 micromoles per joule fixture,
10        that PPE shall become the new standard.
11            (C) HVAC.
12                (i) The For cannabis grow operations with less
13            than 6,000 square feet of canopy, the licensee
14            commits that all HVAC units will be
15            high-efficiency ductless split HVAC units, or
16            other more energy efficient equipment.
17                (ii) (Blank). For cannabis grow operations
18            with 6,000 square feet of canopy or more, the
19            licensee commits that all HVAC units will be
20            variable refrigerant flow HVAC units, or other
21            more energy efficient equipment.
22            (D) Water application.
23                (i) The craft grower facility commits to use
24            automated watering systems, including, but not
25            limited to, drip irrigation and flood tables, to
26            irrigate cannabis crop.

 

 

10400SB3222ham002- 560 -LRB104 19119 BDA 38710 a

1                (ii) The craft grower facility commits to
2            measure runoff from watering events and report
3            this volume in its water usage plan, and that on
4            average, watering events shall have no more than
5            20% of runoff of water.
6            (E) Filtration. The craft grower commits that HVAC
7        condensate, dehumidification water, excess runoff, and
8        other wastewater produced by the craft grower facility
9        shall be captured and filtered to the best of the
10        facility's ability to achieve the quality needed to be
11        reused in subsequent watering rounds.
12            (F) Reporting energy use and efficiency as
13        required by rule; and
14        (22) any other information required by rule.
15    (b) Applicants must submit all required information,
16including the information required in Section 30-15, to the
17Department of Agriculture. Failure by an applicant to submit
18all required information may result in the application being
19disqualified.
20    (c) If the Department of Agriculture receives an
21application with missing information, the Department of
22Agriculture may issue a deficiency notice to the applicant.
23The applicant shall have 10 calendar days from the date of the
24deficiency notice to resubmit the incomplete information.
25Applications that are still incomplete after this opportunity
26to cure will not be scored and will be disqualified.

 

 

10400SB3222ham002- 561 -LRB104 19119 BDA 38710 a

1(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
2102-538, eff. 8-20-21.)
 
3    (410 ILCS 705/30-30)
4    Sec. 30-30. Craft grower requirements; prohibitions.
5    (a) The operating documents of a craft grower shall
6include procedures for the oversight of the craft grower, a
7cannabis plant monitoring system including a physical
8inventory recorded weekly, accurate recordkeeping, and a
9staffing plan.
10    (b) A craft grower shall implement a security plan
11reviewed by the Illinois State Police that includes, but is
12not limited to: facility access controls, perimeter intrusion
13detection systems, personnel identification systems, and a
1424-hour surveillance system to monitor the interior and
15exterior of the craft grower facility and that is accessible
16to authorized law enforcement and the Department of
17Agriculture in real time.
18    (c) All cultivation of cannabis by a craft grower must
19take place in an enclosed, locked facility at the physical
20address provided to the Department of Agriculture during the
21licensing process. The craft grower location shall only be
22accessed by the agents working for the craft grower, the
23Department of Agriculture staff performing inspections, the
24Department of Public Health staff performing inspections,
25State and local law enforcement or other emergency personnel,

 

 

10400SB3222ham002- 562 -LRB104 19119 BDA 38710 a

1contractors working on jobs unrelated to cannabis, such as
2installing or maintaining security devices or performing
3electrical wiring, transporting organization agents as
4provided in this Act, or participants in the incubator
5program, individuals in a mentoring or educational program
6approved by the State, or other individuals as provided by
7rule. However, if a craft grower shares a premises with an
8infuser or dispensing organization, agents from those other
9licensees may access the craft grower portion of the premises
10if that is the location of common bathrooms, lunchrooms,
11locker rooms, or other areas of the building where work or
12cultivation of cannabis is not performed. At no time may an
13infuser or dispensing organization agent perform work at a
14craft grower without being a registered agent of the craft
15grower.
16    (d) A craft grower may not sell or distribute any cannabis
17to any person other than a cultivation center, a craft grower,
18an infuser organization, a dispensing organization, or as
19otherwise authorized by rule.
20    (e) A craft grower may not be located in an area zoned for
21residential use.
22    (f) A craft grower may not either directly or indirectly
23discriminate in price between different cannabis business
24establishments that are purchasing a like grade, strain,
25brand, and quality of cannabis or cannabis-infused product.
26Nothing in this subsection (f) prevents a craft grower from

 

 

10400SB3222ham002- 563 -LRB104 19119 BDA 38710 a

1pricing cannabis differently based on differences in the cost
2of manufacturing or processing, the quantities sold, such as
3volume discounts, or the way the products are delivered.
4    (g) All cannabis harvested by a craft grower and intended
5for distribution to a dispensing organization must be entered
6into a data collection system, packaged and labeled under
7Section 55-21, and, if distribution is to a dispensing
8organization that does not share a premises with the
9dispensing organization receiving the cannabis, placed into a
10cannabis container for transport. All cannabis harvested by a
11craft grower and intended for distribution to a cultivation
12center, to an infuser organization, or to a craft grower with
13which it does not share a premises, must be packaged in a
14labeled cannabis container and entered into a data collection
15system before transport.
16    (h) Craft growers are subject to random inspections by the
17Department of Agriculture, local safety or health inspectors,
18the Illinois State Police, or as provided by rule.
19    (i) A craft grower agent shall notify local law
20enforcement, the Illinois State Police, and the Department of
21Agriculture within 24 hours of the discovery of any loss or
22theft. Notification shall be made by phone, in person, or
23written or electronic communication.
24    (j) A craft grower shall comply with all State and any
25applicable federal rules and regulations regarding the use of
26pesticides.

 

 

10400SB3222ham002- 564 -LRB104 19119 BDA 38710 a

1    (k) A craft grower or craft grower agent shall not
2transport cannabis or cannabis-infused products to any other
3cannabis business establishment without a transport
4organization license unless:
5        (i) If the craft grower is located in a county with a
6    population of 3,000,000 or more, the cannabis business
7    establishment receiving the cannabis is within 2,000 feet
8    of the property line of the craft grower;
9        (ii) If the craft grower is located in a county with a
10    population of more than 700,000 but fewer than 3,000,000,
11    the cannabis business establishment receiving the cannabis
12    is within 2 miles of the craft grower; or
13        (iii) If the craft grower is located in a county with a
14    population of fewer than 700,000, the cannabis business
15    establishment receiving the cannabis is within 15 miles of
16    the craft grower.
17    (l) A craft grower may enter into a contract with a
18transporting organization to transport cannabis to a
19cultivation center, a craft grower, an infuser organization, a
20dispensing organization, or a laboratory.
21    (m) No person or entity shall hold any legal, equitable,
22ownership, or beneficial interest, directly or indirectly, of
23more than 3 craft grower licenses. Further, no person or
24entity that is employed by, an agent of, or has a contract to
25receive payment from or participate in the management of a
26craft grower, is a principal officer of a craft grower, or

 

 

10400SB3222ham002- 565 -LRB104 19119 BDA 38710 a

1entity controlled by or affiliated with a principal officer of
2a craft grower shall hold any legal, equitable, ownership, or
3beneficial interest, directly or indirectly, in a craft grower
4license that would result in the person or entity owning or
5controlling in combination with any craft grower, principal
6officer of a craft grower, or entity controlled or affiliated
7with a principal officer of a craft grower by which he, she, or
8it is employed, is an agent of, or participates in the
9management of more than 3 craft grower licenses.
10    (n) It is unlawful for any person having a craft grower
11license or any officer, associate, member, representative, or
12agent of the licensee to offer or deliver money, or anything
13else of value, directly or indirectly, to any person having an
14Early Approval Adult Use Dispensing Organization License, a
15Conditional Adult Use Dispensing Organization License, an
16Adult Use Dispensing Organization License, or a medical
17cannabis dispensing organization license issued under the
18Compassionate Use of Medical Cannabis Program Act, or to any
19person connected with or in any way representing, or to any
20member of the family of, the person holding an Early Approval
21Adult Use Dispensing Organization License, a Conditional Adult
22Use Dispensing Organization License, an Adult Use Dispensing
23Organization License, or a medical cannabis dispensing
24organization license issued under the Compassionate Use of
25Medical Cannabis Program Act, or to any stockholders in any
26corporation engaged in the retail sale of cannabis, or to any

 

 

10400SB3222ham002- 566 -LRB104 19119 BDA 38710 a

1officer, manager, agent, or representative of the Early
2Approval Adult Use Dispensing Organization License, a
3Conditional Adult Use Dispensing Organization License, an
4Adult Use Dispensing Organization License, or a medical
5cannabis dispensing organization license issued under the
6Compassionate Use of Medical Cannabis Program Act to obtain
7preferential placement within the dispensing organization,
8including, without limitation, on shelves and in display cases
9where purchasers can view products, or on the dispensing
10organization's website.
11    (o) A craft grower shall not be located within 1,500 feet
12of another craft grower or a cultivation center.
13    (p) A craft grower may process cannabis, cannabis
14concentrates, and cannabis-infused products.
15    (q) A craft grower must comply with any other requirements
16or prohibitions set by administrative rule of the Department
17of Agriculture.
18    (r) Craft growers shall retain at least 60 days of camera
19storage in any location or otherwise provided by rule. The
20Department may require footage to be maintained for purposes
21of an investigation.    
22(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
23102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
245-13-22.)
 
25    (410 ILCS 705/30-35)

 

 

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1    Sec. 30-35. Craft grower agent identification card.
2    (a) The Department of Agriculture shall:
3        (1) establish by rule the information required in an
4    initial application or renewal application for an agent
5    identification card submitted under this Act and the
6    nonrefundable fee to accompany the initial application or
7    renewal application;
8        (2) verify the information contained in an initial
9    application or renewal application for an agent
10    identification card submitted under this Act and approve
11    or deny an application within 30 days of receiving a
12    completed initial application or renewal application and
13    all supporting documentation required by rule;
14        (3) issue an agent identification card to a qualifying
15    agent within 15 business days of approving the initial
16    application or renewal application;
17        (4) enter the license number of the craft grower where
18    the agent works; and
19        (5) allow for an electronic initial application and
20    renewal application process, and provide a confirmation by
21    electronic or other methods that an application has been
22    submitted. The Department of Agriculture may by rule
23    require prospective agents to file their applications by
24    electronic means and provide notices to the agents by
25    electronic means.
26    (b) An agent must keep his or her identification card

 

 

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1visible at all times when on the property of a cannabis
2business establishment, including the craft grower
3organization for which he or she is an agent.
4    (c) The agent identification cards shall contain the
5following:
6        (1) the name of the cardholder;
7        (2) the date of issuance and expiration date of the
8    identification card;
9        (3) a random 10-digit alphanumeric identification
10    number containing at least 4 numbers and at least 4
11    letters that is unique to the holder;
12        (4) a photograph of the cardholder; and
13        (5) the legal name of the craft grower organization
14    employing the agent.
15    (d) An agent identification card shall be immediately
16returned to the cannabis business establishment of the agent
17upon termination of his or her employment.
18    (e) Any agent identification card lost by a craft grower
19agent shall be reported to the Illinois State Police and the
20Department of Agriculture immediately upon discovery of the
21loss.
22    (f) The Department of Agriculture shall not issue an agent
23identification card if the applicant is delinquent in filing
24any required tax returns or paying any amounts owed to the
25State of Illinois.    
26    (f-5) An agent applicant may begin employment at a craft

 

 

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1grower while the agent applicant's identification card
2application is pending. Upon approval, the Department shall
3issue the agent's identification card to the agent. If denied,
4the craft grower and the agent applicant shall be notified and
5the agent applicant must cease all activity at the infuser
6organization immediately.    
7    (g) The Department and the Department of Financial and
8Professional Regulation may develop and implement an
9integrated system to issue an agent identification card that
10identifies a craft grower agent licensed by the Department as
11well as any cultivator, dispensary, transporter, community
12college program, or infuser license or registration the agent
13may simultaneously hold.    
14(Source: P.A. 101-27, eff. 6-25-19; 102-538, eff. 8-20-21.)
 
15    (410 ILCS 705/30-45)
16    Sec. 30-45. Renewal of craft grower licenses and agent
17identification cards.
18    (a) Licenses and identification cards issued under this
19Act shall be renewed annually. A craft grower shall receive
20written or electronic notice 90 days before the expiration of
21its current license that the license will expire. The
22Department of Agriculture shall grant a renewal within 45 days
23of submission of a renewal application if:
24        (1) the craft grower submits a renewal application and
25    the required nonrefundable renewal fee of $40,000, or

 

 

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1    another amount as the Department of Agriculture may set by
2    rule after January 1, 2021;
3        (2) the Department of Agriculture has not suspended
4    the license of the craft grower or suspended or revoked
5    the license for violating this Act or rules adopted under
6    this Act;
7        (3) the craft grower has continued to operate in
8    accordance with all plans submitted as part of its
9    application and approved by the Department of Agriculture
10    or any amendments thereto that have been approved by the
11    Department of Agriculture;
12        (4) the craft grower has submitted an agent, employee,
13    contracting, and subcontracting diversity report as
14    required by the Department; and
15        (5) the craft grower has submitted an environmental
16    impact report.
17    (b) If a craft grower fails to renew its license before
18expiration, it shall cease operations until its license is
19renewed.
20    (c) If a craft grower agent fails to renew his or her
21identification card before its expiration, he or she shall
22cease to work as an agent of the craft grower organization
23until his or her identification card is renewed.
24    (d) Any craft grower that continues to operate, or any
25craft grower agent who continues to work as an agent, after the
26applicable license or identification card has expired without

 

 

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1renewal is subject to the penalties provided under Section
245-5.
3    (e) All fees or fines collected from the renewal of a craft
4grower license shall be deposited into the Cannabis Regulation
5Fund.
6    (f) The Department of Agriculture shall not renew a
7license or an agent identification card if the applicant is
8delinquent in filing any required tax returns or paying any
9amounts owed to the State of Illinois.    
10(Source: P.A. 101-27, eff. 6-25-19.)
 
11    (410 ILCS 705/35-18 new)
12    Sec. 35-18. Social equity experience lottery.    
13    (a) The Department shall, by rule, develop an application,
14submission, review, and deficiency process to issue at least
1545 infuser licenses by January 1, 2027 and may issue up to 100
16additional licenses beginning January 1, 2028. The licenses
17shall be issued to applicants that are 51% owned by
18individuals who meet the following social equity criteria:
19        (1) The applicant must satisfy one of the following
20    geographic criteria:
21            (A) the individual must have resided for at least
22        5 of the preceding 10 years in a census tract that has
23        a poverty rate of at least 20% according to the latest
24        5-year American Community Survey (Table S1701: Poverty
25        Status in the Past 12 Months) that is publicly

 

 

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1        available at the start of the application submission
2        window;
3            (B) the individual must have resided for at least
4        5 of the preceding 10 years in a census tract where at
5        least 20% of the households receive assistance under
6        the Supplemental Nutrition Assistance Program in the
7        latest 5-year American Community Survey (Table S2201:
8        Food Stamps/Supplemental Nutrition Assistance Program
9        (SNAP)) that is publicly available at the start of the
10        application submission;
11            (C) the individual must have resided for at least
12        5 of the preceding 10 years in a census tract area
13        classified as "low income and low access" where at
14        least 100 households are more than one-half mile from
15        the nearest supermarket and have no access to a
16        vehicle or a significant number (at least 500 people)
17        or share (at least 33%) of the population is greater
18        than one mile from the nearest supermarket,
19        supercenter, or large grocery store for an urban area
20        or greater than 20 miles for a rural area, as
21        classified by the latest United States Department of
22        Agriculture Economic Research Service's Food Access
23        Research Atlas data set that is publicly available at
24        the start of the application submission window;
25            (D) the individual must have received Medicaid,
26        Supplemental Security Income, Social Security

 

 

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1        Disability, or subsidized housing for at least 5 of
2        the preceding 10 years; or
3            (E) the individual must have resided for at least
4        5 of the preceding 10 years in a census tract in the
5        top 15th percentile for the percent of residents in
6        the census tract failing to graduate from high school
7        in that state, as classified by the latest 5-year
8        American Community Survey (Table S1501: Educational
9        Attainment) that is publicly available at the start of
10        the application submission window.
11        The Department may update or adjust the criteria in
12    this paragraph (1) by rule.
13        (2) The individual must satisfy one of the following
14    social equity criteria:
15            (A) the individual must have been arrested for,
16        convicted of, or adjudicated delinquent for an
17        offense, or substantially similar offense under
18        federal or State law or under a substantially similar
19        law of another State for possession of not more than
20        500 grams of cannabis or for manufacture, delivery, or
21        possession with intent to deliver, or manufacture of
22        cannabis up to 60 grams;
23            (B) the individual must have been a member of a
24        justice-impacted family;
25            (C) the individual must have been a victim of an
26        injury caused by a firearm, as defined in the Firearm

 

 

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1        Owners Identification Card Act, as evidenced in public
2        or medical records.
3            As used in this subparagraph (C), "victim of an
4        injury caused by a firearm" means:
5                (i) a person injured as a result of a firearm
6            injury perpetrated or attempted against them;
7                (ii) the spouse, parent, or child of a person
8            killed or injured as a result of a firearm injury
9            perpetrated or attempted against the person, or
10            anyone living in the household of a person killed
11            or injured in a relationship that is substantially
12            similar to that of a parent, spouse, or child;
13                (iii) a person injured while attempting to
14            assist a person against whom a firearm injury is
15            being perpetrated or attempted, if that attempt of
16            assistance would be expected of a reasonable
17            person under the circumstances;
18                (iv) a person injured while assisting a law
19            enforcement official apprehend a person who has
20            perpetrated a firearm injury or prevent the
21            perpetration of any such crime if that assistance
22            was in response to the express request of the law
23            enforcement official; or
24                (v) a person who personally witnessed a
25            firearm injury.
26            "Victim of an injury caused by a firearm" does not

 

 

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1        include the offender who committed the criminal act or
2        a person who provoked or incited the crime.
3    (b) The Department's rules governing the lottery shall
4include a bonus draw process for hemp business operators who
5meet any one or more of the following criteria:
6        (1) The applicant was registered with the Department
7    as an industrial hemp processor under the Industrial Hemp
8    Act on or before May 1, 2026.
9        (2) The applicant held an industrial hemp cultivation
10    license issued by the Department under the Industrial Hemp
11    Act on or before May 1, 2026.
12        (3) The applicant demonstrates that, on or before May
13    1, 2026, it operated a business in Illinois that derived
14    the majority of its gross receipts from the sale or
15    manufacture of products containing hemp or hemp-derived
16    cannabinoids. The Department may establish verification
17    standards by rule.
18    (c) If the Department receives more than 45 applications,
19the Department shall conduct a lottery before determining
20applicant's eligibility for infuser licenses and before
21issuing the infuser license.
22    (d) After the Department publishes the official draw
23results, the Department shall conduct a verification process
24to confirm that drawn applicants meet the eligibility criteria
25established by this Section and by rule. Drawn applicants who
26are unable to provide sufficient documentation of their

 

 

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1eligibility may be denied a license, and the Department may
2offer the next applicant drawn from the official results an
3opportunity to prove eligibility for licensure.
4    (e) The Department may also require, by rule, the
5submission of additional plans and exhibits, including, but
6not limited to, a security plan, infusing plan, employee
7training plan, product safety plan, and business plan.
8    (f) A principal officer may not be on more than one
9application.
10    (g) Each applicant shall pay a nonrefundable application
11fee of $2,500, which shall be deposited into the Cannabis
12Regulation Fund.
13    (h) If the Department determines that any information on
14an application or in supporting documents is not truthful, the
15applicant associated with the application shall be prohibited
16from:
17        (1) participating in the lottery;
18        (2) being a drawn applicant; and
19        (3) being issued an infuser license under this
20    Section.
 
21    (410 ILCS 705/35-25)
22    Sec. 35-25. Infuser organization requirements;
23prohibitions.
24    (a) The operating documents of an infuser shall include
25procedures for the oversight of the infuser, an inventory

 

 

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1monitoring system including a physical inventory recorded
2weekly, accurate recordkeeping, and a staffing plan.
3    (b) An infuser shall implement a security plan reviewed by
4the Illinois State Police that includes, but is not limited
5to: facility access controls, perimeter intrusion detection
6systems, personnel identification systems, and a 24-hour
7surveillance system to monitor the interior and exterior of
8the infuser facility and that is accessible to authorized law
9enforcement, the Department of Public Health, and the
10Department of Agriculture in real time.
11    (c) All processing of cannabis by an infuser must take
12place in an enclosed, locked facility at the physical address
13provided to the Department of Agriculture during the licensing
14process. The infuser location shall only be accessed by the
15agents working for the infuser, the Department of Agriculture
16staff performing inspections, the Department of Public Health
17staff performing inspections, State and local law enforcement
18or other emergency personnel, contractors working on jobs
19unrelated to cannabis, such as installing or maintaining
20security devices or performing electrical wiring, transporting
21organization agents as provided in this Act, participants in
22the incubator program, individuals in a mentoring or
23educational program approved by the State, local safety or
24health inspectors, or other individuals as provided by rule.
25However, if an infuser shares a premises with a craft grower or
26dispensing organization, agents from these other licensees may

 

 

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1access the infuser portion of the premises if that is the
2location of common bathrooms, lunchrooms, locker rooms, or
3other areas of the building where processing of cannabis is
4not performed. At no time may a craft grower or dispensing
5organization agent perform work at an infuser without being a
6registered agent of the infuser.
7    (d) An infuser may not sell or distribute any cannabis to
8any person other than a dispensing organization, or as
9otherwise authorized by rule.
10    (e) An infuser may not either directly or indirectly
11discriminate in price between different cannabis business
12establishments that are purchasing a like grade, strain,
13brand, and quality of cannabis or cannabis-infused product.
14Nothing in this subsection (e) prevents an infuser from
15pricing cannabis differently based on differences in the cost
16of manufacturing or processing, the quantities sold, such
17volume discounts, or the way the products are delivered.
18    (f) All cannabis infused by an infuser and intended for
19distribution to a dispensing organization must be entered into
20a data collection system, packaged and labeled under Section
2155-21, and, if distribution is to a dispensing organization
22that does not share a premises with the infuser, placed into a
23cannabis container for transport. All cannabis produced by an
24infuser and intended for distribution to a cultivation center,
25infuser organization, or craft grower with which it does not
26share a premises, must be packaged in a labeled cannabis

 

 

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1container and entered into a data collection system before
2transport.
3    (g) Infusers are subject to random inspections by the
4Department of Agriculture, the Department of Public Health,
5the Illinois State Police, local law enforcement, or as
6provided by rule.
7    (h) An infuser agent shall notify local law enforcement,
8the Illinois State Police, and the Department of Agriculture
9within 24 hours of the discovery of any loss or theft.
10Notification shall be made by phone, in person, or by written
11or electronic communication.
12    (i) An infuser organization may not be located in an area
13zoned for residential use.
14    (j) An infuser or infuser agent shall not transport
15cannabis or cannabis-infused products to any other cannabis
16business establishment without a transport organization
17license unless:
18        (i) If the infuser is located in a county with a
19    population of 3,000,000 or more, the cannabis business
20    establishment receiving the cannabis or cannabis-infused
21    product is within 2,000 feet of the property line of the
22    infuser;
23        (ii) If the infuser is located in a county with a
24    population of more than 700,000 but fewer than 3,000,000,
25    the cannabis business establishment receiving the cannabis
26    or cannabis-infused product is within 2 miles of the

 

 

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1    infuser; or
2        (iii) If the infuser is located in a county with a
3    population of fewer than 700,000, the cannabis business
4    establishment receiving the cannabis or cannabis-infused
5    product is within 15 miles of the infuser.
6    (k) An infuser may enter into a contract with a
7transporting organization to transport cannabis to a
8dispensing organization or a laboratory.
9    (l) An infuser organization may share premises with a
10craft grower or a dispensing organization, or both, provided
11each licensee stores currency and cannabis or cannabis-infused
12products in a separate secured vault to which the other
13licensee does not have access or all licensees sharing a vault
14share more than 50% of the same ownership.
15    (m) It is unlawful for any person or entity having an
16infuser organization license or any officer, associate,
17member, representative or agent of such licensee to offer or
18deliver money, or anything else of value, directly or
19indirectly to any person having an Early Approval Adult Use
20Dispensing Organization License, a Conditional Adult Use
21Dispensing Organization License, an Adult Use Dispensing
22Organization License, or a medical cannabis dispensing
23organization license issued under the Compassionate Use of
24Medical Cannabis Program Act, or to any person connected with
25or in any way representing, or to any member of the family of,
26such person holding an Early Approval Adult Use Dispensing

 

 

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1Organization License, a Conditional Adult Use Dispensing
2Organization License, an Adult Use Dispensing Organization
3License, or a medical cannabis dispensing organization license
4issued under the Compassionate Use of Medical Cannabis Program
5Act, or to any stockholders in any corporation engaged in the
6retail sales of cannabis, or to any officer, manager, agent,
7or representative of the Early Approval Adult Use Dispensing
8Organization License, a Conditional Adult Use Dispensing
9Organization License, an Adult Use Dispensing Organization
10License, or a medical cannabis dispensing organization license
11issued under the Compassionate Use of Medical Cannabis Program
12Act to obtain preferential placement within the dispensing
13organization, including, without limitation, on shelves and in
14display cases where purchasers can view products, or on the
15dispensing organization's website.
16    (n) At no time shall an infuser organization or an infuser
17agent perform the extraction of cannabis concentrate from
18cannabis flower, except if the infuser organization has also
19been issued a processor license under subsection (f) of
20Section 35-31.
21    (o) Infusing organizations shall retain at least 60 days
22of camera storage in any location or otherwise provided by
23rule. The Department may require footage to be maintained for
24purposes of an investigation.    
25(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
26102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.

 

 

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15-13-22.)
 
2    (410 ILCS 705/35-30)
3    Sec. 35-30. Infuser agent identification card.
4    (a) The Department of Agriculture shall:
5        (1) establish by rule the information required in an
6    initial application or renewal application for an agent
7    identification card submitted under this Act and the
8    nonrefundable fee to accompany the initial application or
9    renewal application;
10        (2) verify the information contained in an initial
11    application or renewal application for an agent
12    identification card submitted under this Act, and approve
13    or deny an application within 30 days of receiving a
14    completed initial application or renewal application and
15    all supporting documentation required by rule;
16        (3) issue an agent identification card to a qualifying
17    agent within 15 business days of approving the initial
18    application or renewal application;
19        (4) enter the license number of the infuser where the
20    agent works; and
21        (5) allow for an electronic initial application and
22    renewal application process, and provide a confirmation by
23    electronic or other methods that an application has been
24    submitted. The Department of Agriculture may by rule
25    require prospective agents to file their applications by

 

 

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1    electronic means and provide notices to the agents by
2    electronic means.
3    (b) An agent must keep his or her identification card
4visible at all times when on the property of a cannabis
5business establishment including the cannabis business
6establishment for which he or she is an agent.
7    (c) The agent identification cards shall contain the
8following:
9        (1) the name of the cardholder;
10        (2) the date of issuance and expiration date of the
11    identification card;
12        (3) a random 10-digit alphanumeric identification
13    number containing at least 4 numbers and at least 4
14    letters that is unique to the holder;
15        (4) a photograph of the cardholder; and
16        (5) the legal name of the infuser organization
17    employing the agent.
18    (d) An agent identification card shall be immediately
19returned to the infuser organization of the agent upon
20termination of his or her employment.
21    (e) Any agent identification card lost by an infuser a
22transporting agent shall be reported to the Illinois State
23Police and the Department of Agriculture immediately upon
24discovery of the loss.
25    (f) An agent applicant may begin employment at an infuser
26organization while the agent applicant's identification card

 

 

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1application is pending. Upon approval, the Department shall
2issue the agent's identification card to the agent. If denied,
3the infuser organization and the agent applicant shall be
4notified and the agent applicant must cease all activity at
5the infuser organization immediately.
6    (g) The Department of Agriculture shall not issue an agent
7identification card if the applicant is delinquent in filing
8any required tax returns or paying any amounts owed to the
9State of Illinois.    
10    (h) The Department and the Department of Financial and
11Professional Regulation may develop and implement an
12integrated system to issue an agent identification card that
13identifies an infuser agent licensed by the Department as well
14as any cultivation center, craft grower, dispensary,
15transporter, or community college program license or
16registration the agent may simultaneously hold.    
17(Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21;
18102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)
 
19    (410 ILCS 705/35-40)
20    Sec. 35-40. Renewal of infuser organization licenses and
21agent identification cards.
22    (a) Licenses and identification cards issued under this
23Act shall be renewed annually. An infuser organization shall
24receive written or electronic notice 90 days before the
25expiration of its current license that the license will

 

 

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1expire. The Department of Agriculture shall grant a renewal
2within 45 days of submission of a renewal application if:
3        (1) the infuser organization submits a renewal
4    application and the required nonrefundable renewal fee of
5    $20,000, or, after January 1, 2021, another amount set by
6    rule by the Department of Agriculture, to be deposited
7    into the Cannabis Regulation Fund;
8        (2) the Department of Agriculture has not suspended or
9    revoked the license of the infuser organization for
10    violating this Act or rules adopted under this Act;
11        (3) the infuser organization has continued to operate
12    in accordance with all plans submitted as part of its
13    application and approved by the Department of Agriculture
14    or any amendments thereto that have been approved by the
15    Department of Agriculture;
16        (4) The infuser has submitted an agent, employee,
17    contracting, and subcontracting diversity report as
18    required by the Department; and
19        (5) The infuser has submitted an environmental impact
20    report.
21    (b) If an infuser organization fails to renew its license
22before expiration, it shall cease operations until its license
23is renewed.
24    (c) If an infuser organization agent fails to renew his or
25her identification card before its expiration, he or she shall
26cease to work as an agent of the infuser organization until his

 

 

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1or her identification card is renewed.
2    (d) Any infuser organization that continues to operate, or
3any infuser organization agent who continues to work as an
4agent, after the applicable license or identification card has
5expired without renewal is subject to the penalties provided
6under Section 35-25.
7    (e) The Department shall not renew a license or an agent
8identification card if the applicant is delinquent in filing
9any required tax returns or paying any amounts owed to the
10State of Illinois.
11(Source: P.A. 101-27, eff. 6-25-19.)
 
12    (410 ILCS 705/40-5)
13    Sec. 40-5. Issuance of licenses.
14    (a) The Department shall issue transporting licenses
15through a process provided for in this Article no later than
16July 1, 2020.
17    (b) The Department shall make the application for
18transporting organization licenses available on January 7,
192020 and shall receive such applications no later than March
2015, 2020.
21    (c) Entities awarded a license under this Article shall
22not be required to pay any fee required under Section 40-10 of
23this Article, the nonrefundable renewal fee required under
24Section 40-40 of this Article, or any other license fee
25required under this Article or by rule from January 1, 2024 to

 

 

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1January 1, 2028 2027.
2    (d) From January 1, 2023 through January 1, 2028 2027, the
3Department shall not make the application available for
4transporting organization licenses.
5    (e) Upon completion of the disparity and availability
6study published by the Illinois Cannabis Regulation Oversight
7Officer under subsection (e) of Section 5-45, the Department
8may modify or change the licensing application process to
9reduce or eliminate barriers and remedy discrimination
10identified in the study. Beginning January 1, 2028 2027, the
11Department of Agriculture shall make the applications
12available on every January 7 thereafter or, if that date falls
13on a weekend or holiday, the business day immediately
14succeeding the weekend or holiday and shall receive the
15applications no later than March 15 or the succeeding business
16day thereafter.
17(Source: P.A. 103-578, eff. 12-8-23.)
 
18    (410 ILCS 705/40-25)
19    Sec. 40-25. Transporting organization requirements;
20prohibitions.
21    (a) The operating documents of a transporting organization
22shall include procedures for the oversight of the transporter,
23an inventory monitoring system including a physical inventory
24recorded weekly, accurate recordkeeping, and a staffing plan.
25    (b) A transporting organization may not transport cannabis

 

 

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1or cannabis-infused products to any person other than a
2cultivation center, a craft grower, an infuser organization, a
3dispensing organization, a testing facility, transfer site,
4storage site, or as otherwise authorized by rule.
5    (c) All cannabis transported by a transporting
6organization must be entered into a data collection system and
7placed into a cannabis container for transport.
8    (d) Transporters are subject to random inspections by the
9Department of Agriculture, the Department of Public Health,
10the Illinois State Police, or as provided by rule.
11    (e) A transporting organization agent shall notify local
12law enforcement, the Illinois State Police, and the Department
13of Agriculture within 24 hours of the discovery of any loss or
14theft. Notification shall be made by phone, in person, or by
15written or electronic communication.
16    (f) No person under the age of 21 years shall be in a
17commercial vehicle or trailer transporting cannabis goods.
18    (g) No person or individual who is not a transporting
19organization agent shall be in a vehicle while transporting
20cannabis goods.
21    (h) Transporters may not use commercial motor vehicles
22with a weight rating of over 10,001 pounds.
23    (i) It is unlawful for any person to offer or deliver
24money, or anything else of value, directly or indirectly, to
25any of the following persons to obtain preferential placement
26within the dispensing organization, including, without

 

 

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1limitation, on shelves and in display cases where purchasers
2can view products, or on the dispensing organization's
3website:
4        (1) a person having a transporting organization
5    license, or any officer, associate, member,
6    representative, or agent of the licensee;
7        (2) a person having an Early Applicant Adult Use
8    Dispensing Organization License, an Adult Use Dispensing
9    Organization License, or a medical cannabis dispensing
10    organization license issued under the Compassionate Use of
11    Medical Cannabis Program Act;
12        (3) a person connected with or in any way
13    representing, or a member of the family of, a person
14    holding an Early Applicant Adult Use Dispensing
15    Organization License, an Adult Use Dispensing Organization
16    License, or a medical cannabis dispensing organization
17    license issued under the Compassionate Use of Medical
18    Cannabis Program Act; or
19        (4) a stockholder, officer, manager, agent, or
20    representative of a corporation engaged in the retail sale
21    of cannabis, an Early Applicant Adult Use Dispensing
22    Organization License, an Adult Use Dispensing Organization
23    License, or a medical cannabis dispensing organization
24    license issued under the Compassionate Use of Medical
25    Cannabis Program Act.
26    (j) A transporting organization agent must keep his or her

 

 

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1identification card visible at all times when on the property
2of a cannabis business establishment and during the
3transporting of cannabis when acting under his or her duties
4as a transportation organization agent. During these times,
5the transporting organization agent must also provide the
6identification card upon request of any law enforcement
7officer engaged in his or her official duties.
8    (k) A copy of the transporting organization's registration
9and a manifest for the delivery shall be present in any vehicle
10transporting cannabis.
11    (l) Cannabis shall be transported so it is not visible or
12recognizable from outside the vehicle.
13    (m) A vehicle transporting cannabis must not bear any
14markings to indicate the vehicle contains cannabis or bear the
15name or logo of the cannabis business establishment.
16    (n) Cannabis must be transported in an enclosed, locked
17storage compartment that is secured or affixed to the vehicle.
18    (o) The Department of Agriculture may, by rule, impose any
19other requirements or prohibitions on the transportation of
20cannabis.
21    (p) A transporting organization may begin a delivery to a
22cannabis business establishment at any time during the day. A
23transporting organization may not be restricted from beginning
24a delivery based on a cannabis business establishment's listed
25business hours.    
26(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;

 

 

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1102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
25-13-22.)
 
3    (410 ILCS 705/40-50 new)
4    Sec. 40-50. Cannabis transporter storage site.        
5    (a) The Department of Agriculture shall establish a
6cannabis transporter storage site program for licensed
7cannabis transporters that are not affiliated with a
8cultivation center, craft grower, or infuser. An eligible
9transporter may submit an application for modification to
10operate a cannabis transporter storage site. The Department
11shall review and approve the plans for a cannabis transporter
12storage site. Transporters shall not conduct operations at a
13cannabis transporter storage site until approved by the
14Department.
15    (b) A cannabis transporter storage site shall be used
16solely for:
17        (1) temporary storage of packaged, final form cannabis
18    or cannabis-infused products for a period not to exceed 7
19    calendar days;
20        (2) consolidation or aggregation of cannabis or
21    cannabis-infused products from multiple licensed
22    cultivation centers, craft growers, infusers, or
23    transporters into compliant outbound shipments; and
24        (3) secure handling of cannabis or cannabis-infused
25    products rejected by a dispensing organization or other

 

 

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1    licensee, pending lawful return, redistribution, or other
2    disposition as authorized by rule.
3    (c) All cannabis or cannabis-infused products received,
4stored, or dispatched at a cannabis transporter storage site
5shall remain subject to full seed-to-sale tracking
6requirements and shall be logged in the State's cannabis
7tracking system at receipt and dispatch.
8    (d) A cannabis transporter storage site does not authorize
9retail sales, processing, repackaging, relabeling, or
10alteration of cannabis or cannabis-infused products.
11    (e) A transporter may operate up to 5 cannabis transporter
12storage sites statewide.
13    (f) A cannabis transporter storage site shall be limited
14to transporting organizations that do not have a principal
15officer that is also a principal officer of a cultivation
16center, craft grower, or infuser.
17    (g) A transporter operating a cannabis transporter storage
18site may allow other transporters that are not affiliated with
19a cultivation center, craft grower or infuser and that do not
20operate their own cannabis transporter storage site to utilize
21the storage site and store product, subject to approval by the
22Department via an application for alteration. The transporter
23operating the storage site may charge a reasonable fee to
24recover associated costs.
25    (h) A cannabis transporter storage site facility shall:
26        (1) be fully enclosed from the outdoors, with locks or

 

 

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1    other security devices that permit access only by
2    authorized individuals;
3        (2) be large enough to allow for 2 of the largest
4    vehicles used by the transporter to have all doors and
5    trunk or hatch open, sufficient room for an individual to
6    walk around each vehicle without encumbrance, and transfer
7    to take place out of ordinary public view;
8        (3) be separate from any other cannabis business
9    establishment; and
10        (4) be equipped with a surveillance system which
11    visually records and monitors all building entrances and
12    exits, all parking lot areas, and rear alley areas
13    immediately adjacent to the building, and covers the
14    entire inside of the facility.
15    (i) All cannabis and cannabis products shall be stored in
16a vault that meets the standards of 68 Ill. Adm. Code
171291.300(g) or as otherwise set by rule by the Department.
18    (j) The Department may adopt rules regarding facility
19specifications and operations of cannabis transporter storage
20sites.
 
21    (410 ILCS 705/45-5)
22    Sec. 45-5. License suspension; revocation; other
23penalties.
24    (a) Notwithstanding any other criminal penalties related
25to the unlawful possession of cannabis, the Department of

 

 

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1Financial and Professional Regulation and the Department of
2Agriculture may revoke, suspend, place on probation,
3reprimand, issue cease and desist orders, refuse to issue or
4renew a license, or take any other disciplinary or
5nondisciplinary action as each department may deem proper with
6regard to a cannabis business establishment or cannabis
7business establishment agent, including fines not to exceed:
8        (1) $50,000 for each violation of this Act or rules
9    adopted under this Act by a cultivation center or
10    cultivation center agent;
11        (2) $20,000 for each violation of this Act or rules
12    adopted under this Act by a dispensing organization or
13    dispensing organization agent;
14        (3) $15,000 for each violation of this Act or rules
15    adopted under this Act by a craft grower or craft grower
16    agent;
17        (4) $10,000 for each violation of this Act or rules
18    adopted under this Act by an infuser organization or
19    infuser organization agent; and
20        (5) $10,000 for each violation of this Act or rules
21    adopted under this Act by a transporting organization or
22    transporting organization agent; and .
23        (6) $15,000 for each violation of this Act or rules
24    adopted under this Act by a cannabis testing facility.    
25    (b) The Department of Financial and Professional
26Regulation and the Department of Agriculture, as the case may

 

 

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1be, shall consider licensee cooperation in any agency or other
2investigation in its determination of penalties imposed under
3this Section.
4    (c) The procedures for disciplining a cannabis business
5establishment or cannabis business establishment agent and for
6administrative hearings shall be determined by rule, and shall
7provide for the review of final decisions under the
8Administrative Review Law.
9    (d) The Attorney General may also enforce a violation of
10Section 55-20, Section 55-21, and Section 15-155 as an
11unlawful practice under the Consumer Fraud and Deceptive
12Business Practices Act.
13(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
14    (410 ILCS 705/50-5)
15    Sec. 50-5. Laboratory testing.
16    (a) Notwithstanding any other provision of law, the
17following acts, when performed by a cannabis testing facility
18with a current, valid license registration, or a person 21
19years of age or older who is acting in his or her capacity as
20an owner, employee, or agent of a cannabis testing facility,
21are not unlawful and shall not be an offense under Illinois law
22or be a basis for seizure or forfeiture of assets under
23Illinois law:
24        (1) possessing, repackaging, transporting, storing, or
25    displaying cannabis or cannabis-infused products;

 

 

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1        (2) receiving or transporting cannabis or
2    cannabis-infused products from a cannabis business
3    establishment, a community college licensed under the
4    Community College Cannabis Vocational Training Pilot    
5    Program, or a person 21 years of age or older; and
6        (3) returning or transporting cannabis or
7    cannabis-infused products to a cannabis business
8    establishment, a community college licensed under the
9    Community College Cannabis Vocational Training Pilot    
10    Program, or a person 21 years of age or older.
11    (b)(1) No laboratory shall handle, test, or analyze
12cannabis unless approved by the Department of Agriculture in
13accordance with this Section.
14    (2) No laboratory shall be approved to handle, test, or
15analyze cannabis unless the laboratory:
16        (A) is licensed by the Department of Agriculture;    
17        (A-5) is accredited by a private laboratory
18    accrediting organization;
19        (B) is independent from all other persons involved in
20    the cannabis industry in Illinois and no person with a
21    direct or indirect interest in the laboratory has a direct
22    or indirect financial, management, or other interest in an
23    Illinois cultivation center, craft grower, dispensary,
24    infuser, transporter, certifying physician, or any other
25    entity in the State that may benefit from the production,
26    manufacture, dispensing, sale, purchase, or use of

 

 

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1    cannabis; and
2        (C) has employed at least one person to oversee and be
3    responsible for the laboratory testing who has earned,
4    from a college or university accredited by a national or
5    regional certifying authority, at least:
6            (i) a master's level degree in chemical or
7        biological sciences and a minimum of 2 years'
8        post-degree laboratory experience; or
9            (ii) a bachelor's degree in chemical or biological
10        sciences and a minimum of 4 years' post-degree
11        laboratory experience.
12    (3) Each independent testing laboratory that claims to be
13accredited must provide the Department of Agriculture with a
14copy of the most recent annual inspection report granting
15accreditation and every annual report thereafter.
16    (c) Immediately before manufacturing or natural processing
17of any cannabis or cannabis-infused product or packaging
18cannabis for sale to a dispensary, each batch shall be made
19available by the cultivation center, craft grower, or infuser
20for an employee of an approved laboratory to select a random
21sample, which shall be tested by the approved laboratory for:
22        (1) microbiological contaminants;
23        (2) mycotoxins;
24        (3) pesticide active ingredients;
25        (4) residual solvent; and
26        (5) an active ingredient analysis.

 

 

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1    (d) The Department of Agriculture may select a random
2sample that shall, for the purposes of conducting an active
3ingredient analysis, be tested by the Department of
4Agriculture for verification of label information and any
5other testing deemed necessary by the Department.
6    (e) A laboratory shall immediately return or dispose of
7any cannabis upon the completion of any testing, use, or
8research. If cannabis is disposed of, it shall be done in
9compliance with Department of Agriculture rule.
10    (f) If a sample of cannabis does not pass the
11microbiological, mycotoxin, pesticide chemical residue, or
12solvent residue test, based on the standards established by
13the Department of Agriculture, the following shall apply:
14        (1) If the sample failed the pesticide chemical
15    residue test, the entire batch from which the sample was
16    taken shall, if applicable, be recalled as provided by
17    rule.
18        (2) If the sample failed any other test, the batch may
19    be used to make a CO2-based or solvent based extract. After
20    processing, the CO2-based or solvent based extract must
21    still pass all required tests.
22    (g) The Department of Agriculture shall establish, and,
23from time to time, revise, standards for microbial, mycotoxin,
24pesticide residue, solvent residue, or other standards for the
25presence of possible contaminants, in addition to labeling
26requirements for contents and potency.

 

 

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1    (h) The laboratory shall file with the Department of
2Agriculture an electronic copy of each laboratory test result
3for any batch that does not pass the microbiological,
4mycotoxin, or pesticide chemical residue test, at the same
5time that it transmits those results to the cultivation
6center. In addition, the laboratory shall maintain the
7laboratory test results for at least 5 years and make them
8available at the Department of Agriculture's request.
9    (i) A cultivation center, craft grower, and infuser shall
10provide to a dispensing organization the laboratory test
11results for each batch of cannabis product purchased by the
12dispensing organization, if sampled. Each dispensing
13organization must have those laboratory results available upon
14request to purchasers.
15    (j) The Department of Agriculture may adopt rules related
16to testing and licensing of laboratories in furtherance of
17this Act.
18(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
19    (410 ILCS 705/55-5)
20    Sec. 55-5. Preparation of cannabis-infused products.
21    (a) The Department of Agriculture may regulate the
22production of cannabis-infused products by a cultivation
23center, a craft grower, an infuser organization, or a
24dispensing organization and establish rules related to
25refrigeration, hot-holding, and handling of cannabis-infused

 

 

10400SB3222ham002- 600 -LRB104 19119 BDA 38710 a

1products. All cannabis-infused products shall meet the
2packaging and labeling requirements contained in Section
355-21.
4    (b) Cannabis-infused products for sale or distribution at
5a dispensing organization must be prepared by an approved
6agent of a cultivation center, craft grower, or infuser
7organization.
8    (c) A cultivation center, craft grower, or infuser
9organization that prepares cannabis-infused products for sale
10or distribution by a dispensing organization shall be under
11the operational supervision of a Department of Public Health
12certified food service sanitation manager.
13    (d) Dispensing organizations may not manufacture, process,
14or produce cannabis-infused products.
15    (e) The Department of Public Health shall adopt and
16enforce rules for the manufacture and processing of
17cannabis-infused products, and for that purpose it may at all
18times enter every building, room, basement, enclosure, or
19premises occupied or used, or suspected of being occupied or
20used, for the production, preparation, manufacture for sale,
21storage, sale, processing, distribution, or transportation of
22cannabis-infused products, and to inspect the premises
23together with all utensils, fixtures, furniture, and machinery
24used for the preparation of these products.
25    (f) The Department of Agriculture shall by rule establish
26a maximum level of THC that may be contained in each serving of

 

 

10400SB3222ham002- 601 -LRB104 19119 BDA 38710 a

1cannabis-infused product, and within the product package.
2    (g) If a local public health agency has a reasonable
3belief that a cannabis-infused product poses a public health
4hazard, it may refer the cultivation center, craft grower, or
5infuser that manufactured or processed the cannabis-infused
6product to the Department of Public Health. If the Department
7of Public Health finds that a cannabis-infused product poses a
8health hazard, it may bring an action for immediate injunctive
9relief to require that action be taken as the court may deem
10necessary to meet the hazard of the cultivation facility or
11seek other relief as provided by rule.
12(Source: P.A. 101-27, eff. 6-25-19.)
 
13    (410 ILCS 705/55-21)
14    Sec. 55-21. Cannabis product packaging and labeling.
15    (a) Each cannabis product produced for sale shall be
16registered with the Department of Agriculture on forms
17provided by the Department of Agriculture. Each product
18registration shall include a label and the required
19registration fee at the rate established by the Department of
20Agriculture for a comparable medical cannabis product, or as
21established by rule. The registration fee is for the name of
22the product offered for sale and one fee shall be sufficient
23for all package sizes.
24    (b) All harvested cannabis intended for distribution to a
25cannabis enterprise must be packaged in a sealed, labeled

 

 

10400SB3222ham002- 602 -LRB104 19119 BDA 38710 a

1container.
2    (c) Any product containing cannabis shall be sold in a
3sealed, odor-proof, and child-resistant cannabis container
4consistent with current standards, including the Consumer
5Product Safety Commission standards referenced by the Poison
6Prevention Act unless the sale is between or among a craft
7grower, infuser, or cultivation center.
8    (d) All cannabis-infused products shall be individually
9wrapped or packaged at the original point of preparation. The
10packaging of the cannabis-infused product shall conform to the
11labeling requirements of the Illinois Food, Drug and Cosmetic
12Act, in addition to the other requirements set forth in this
13Section.
14    (e) Each cannabis product shall be labeled before sale and
15each label shall be securely affixed to the package and shall
16state in legible English and any languages required by the
17Department of Agriculture:
18        (1) the name and post office box of the registered
19    cultivation center or craft grower where the item was
20    manufactured;
21        (2) the common or usual name of the item and the
22    registered name of the cannabis product that was
23    registered with the Department of Agriculture under
24    subsection (a);
25        (3) a unique serial number that will match the product
26    with a cultivation center or craft grower batch and lot

 

 

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1    number to facilitate any warnings or recalls the
2    Department of Agriculture, cultivation center, or craft
3    grower deems appropriate;
4        (4) the date of final testing and packaging, if
5    sampled, and the identification of the independent testing
6    laboratory;
7        (5) the date of harvest and "use by" date;
8        (6) the quantity (in ounces or grams) of cannabis
9    contained in the product;
10        (7) a pass/fail rating based on the laboratory's
11    microbiological, mycotoxins, and pesticide and solvent
12    residue analyses, if sampled;
13        (8) content list.
14            (A) A list of the following, including the minimum
15        and maximum percentage content by weight for
16        subdivisions (e)(8)(A)(i) through (iv):
17                (i) delta-9-tetrahydrocannabinol (THC);
18                (ii) tetrahydrocannabinolic acid (THCA);
19                (iii) cannabidiol (CBD);
20                (iv) cannabidiolic acid (CBDA); and
21                (v) all other ingredients of the item,
22            including any colors, artificial flavors, and
23            preservatives, listed in descending order by
24            predominance of weight shown with common or usual
25            names.
26            (B) The acceptable tolerances for the minimum

 

 

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1        percentage printed on the label for any of
2        subdivisions (e)(8)(A)(i) through (iv) shall not be
3        below 85% or above 115% of the labeled amount.
4    (f) Packaging must not contain information that:
5        (1) is false or misleading;
6        (2) promotes excessive consumption;
7        (3) depicts a person under 21 years of age consuming
8    cannabis;
9        (4) includes the image of a cannabis leaf;
10        (5) includes any image designed or likely to appeal to
11    minors, including cartoons, toys, animals, or children, or
12    any other likeness to images, characters, or phrases that
13    are popularly used to advertise to children, or any
14    packaging or labeling that bears reasonable resemblance to
15    any product available for consumption as a commercially
16    available candy, or that promotes consumption of cannabis;
17        (6) contains any seal, flag, crest, coat of arms, or
18    other insignia likely to mislead the purchaser to believe
19    that the product has been endorsed, made, or used by the
20    State of Illinois or any of its representatives except
21    where authorized by this Act.
22    (g) Cannabis products produced by concentrating or
23extracting ingredients from the cannabis plant shall contain
24the following information, where applicable:
25        (1) If solvents were used to create the concentrate or
26    extract, a statement that discloses the type of extraction

 

 

10400SB3222ham002- 605 -LRB104 19119 BDA 38710 a

1    method, including any solvents or gases used to create the
2    concentrate or extract; and
3        (2) Any other chemicals or compounds used to produce
4    or were added to the concentrate or extract.
5    (h) All cannabis products must contain warning statements
6established for purchasers, of a size that is legible and
7readily visible to a consumer inspecting a package, which may
8not be covered or obscured in any way. The Department of Public
9Health shall define and update appropriate health warnings for
10packages including specific labeling or warning requirements
11for specific cannabis products.
12    (i) Unless modified by rule to strengthen or respond to
13new evidence and science, the following warnings shall apply
14to all cannabis products unless modified by rule: "This
15product contains cannabis and is intended for use by adults 21
16and over. Its use can impair cognition and may be habit
17forming. This product should not be used by pregnant or
18breastfeeding women. It is unlawful to sell or provide this
19item to any individual, and it may not be transported outside
20the State of Illinois. It is illegal to operate a motor vehicle
21while under the influence of cannabis. Possession or use of
22this product may carry significant legal penalties in some
23jurisdictions and under federal law.".
24    (j) Warnings for each of the following product types must
25be present on labels when offered for sale to a purchaser:
26        (1) Cannabis that may be smoked must contain a

 

 

10400SB3222ham002- 606 -LRB104 19119 BDA 38710 a

1    statement that "Smoking is hazardous to your health.".
2        (2) Cannabis-infused products (other than those
3    intended for topical application) must contain a statement
4    "CAUTION: This product contains cannabis, and intoxication
5    following use may be delayed 2 or more hours. This product
6    was produced in a facility that cultivates cannabis, and
7    that may also process common food allergens.".
8        (3) Cannabis-infused products intended for topical
9    application must contain a statement "DO NOT EAT" in bold,
10    capital letters.
11    (k) Each cannabis-infused product intended for consumption
12must be individually packaged, must include the total
13milligram content of THC and CBD, and may not include more than
14a total of 100 milligrams of THC per package. A package may
15contain multiple servings of 10 milligrams of THC, indicated
16by scoring, wrapping, or by other indicators designating
17individual serving sizes. The Department of Agriculture may
18change the total amount of THC allowed for each package, or the
19total amount of THC allowed for each serving size, by rule.
20    (l) No individual other than the purchaser may alter or
21destroy any labeling affixed to the primary packaging of
22cannabis or cannabis-infused products.
23    (m) For each commercial weighing and measuring device used
24at a facility, the cultivation center or craft grower must:
25        (1) Ensure that the commercial device is licensed
26    under the Weights and Measures Act and the associated

 

 

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1    administrative rules (8 Ill. Adm. Code 600);
2        (2) Maintain documentation of the licensure of the
3    commercial device; and
4        (3) Provide a copy of the license of the commercial
5    device to the Department of Agriculture for review upon
6    request.
7    (n) It is the responsibility of the Department to ensure
8that packaging and labeling requirements, including product
9warnings, are enforced at all times for products provided to
10purchasers. Product registration requirements and container
11requirements may be modified by rule by the Department of
12Agriculture.
13    (o) Labeling under this Section, including warning labels,
14may be modified by rule by the Department of Agriculture.
15(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
16102-98, eff. 7-15-21.)
 
17    (410 ILCS 705/55-22 new)
18    Sec. 55-22. Dispensing organization warning labels for
19medical cannabis.
20    (a) Prior to dispensing any cannabis, cannabis
21concentrate, or cannabis-infused products to a registered
22qualifying patient, provisional patient, designated caregiver,
23or an Opioid Alternative Patient Program participant, a
24dispensing organization shall affix to the outside of the
25product in a clear and visible manner a warning label

 

 

10400SB3222ham002- 608 -LRB104 19119 BDA 38710 a

1specifically targeted to medical patients.
2    (b) The warning label required under this Section shall
3not cover or restrict in any manner the requirements under
4Section 55-21 of this Act.
5    (c) The warning label required under this Section shall be
6the same as or substantially similar to any language required
7for the same or similar purpose under federal law or federal
8regulations.
 
9    (410 ILCS 705/55-30)
10    Sec. 55-30. Confidentiality.
11    (a) Information provided by the cannabis business
12establishment licensees or applicants to the Department of
13Agriculture, the Department of Public Health, the Department
14of Financial and Professional Regulation, the Department of
15Commerce and Economic Opportunity, or other agency shall be
16limited to information necessary for the purposes of
17administering this Act. The information is subject to the
18provisions and limitations contained in the Freedom of
19Information Act and may be disclosed in accordance with
20Section 55-65.
21    (b) The following information received and records kept by
22the Department of Agriculture, the Department of Public
23Health, the Illinois State Police, and the Department of
24Financial and Professional Regulation for purposes of
25administering this Article are subject to all applicable

 

 

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1federal privacy laws, are confidential and exempt from
2disclosure under the Freedom of Information Act, except as
3provided in this Act, and not subject to disclosure to any
4individual or public or private entity, except to the
5Department of Financial and Professional Regulation, the
6Department of Agriculture, the Department of Public Health,
7the Department of Commerce and Economic Opportunity, the
8Office of the Executive Inspector General, and the Illinois
9State Police as necessary to perform official duties under
10this Article and to the Attorney General as necessary to
11enforce the provisions of this Act, and except as necessary to
12those involved in enforcing the State Officials and Employees
13Ethics Act. The following information received and kept by the
14Department of Financial and Professional Regulation or the
15Department of Agriculture may be disclosed to the Department
16of Public Health, the Department of Agriculture, the
17Department of Commerce and Economic Opportunity, the
18Department of Revenue, the Illinois State Police, the Office
19of the Executive Inspector General, or the Attorney General
20upon proper request:
21        (1) Applications and renewals, their contents, and
22    supporting information submitted by or on behalf of
23    dispensing organizations, cannabis business
24    establishments, or Community College Cannabis Vocational
25    Program licensees, in compliance with this Article,
26    including their physical addresses; however, this does not

 

 

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1    preclude the release of ownership information about
2    cannabis business establishment licenses, or information
3    submitted with an application required to be disclosed
4    pursuant to subsection (f);
5        (2) Any plans, procedures, policies, or other records
6    relating to cannabis business establishment security; and
7        (3) Information otherwise exempt from disclosure by
8    State or federal law; and .
9        (4) Information from 3 or fewer cannabis business
10    establishments about plant, packaging, transfer, and sales
11    information reported for purposes of the cannabis plant
12    monitoring system; however, this does not preclude the
13    release of such data aggregated to 4 or more businesses.    
14    Illinois or national criminal history record information,
15or the nonexistence or lack of such information, may not be
16disclosed by the Department of Financial and Professional
17Regulation or the Department of Agriculture, except as
18necessary to the Attorney General to enforce this Act.
19    (c) The name and address of a dispensing organization
20licensed under this Act shall be subject to disclosure under
21the Freedom of Information Act. The name and cannabis business
22establishment address of the person or entity holding each
23cannabis business establishment license shall be subject to
24disclosure.
25    (d) All information collected by the Department of
26Financial and Professional Regulation or the Department of

 

 

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1Agriculture in the course of an examination, inspection, or
2investigation of a licensee or applicant, including, but not
3limited to, any complaint against a licensee or applicant
4filed with the Department of Financial and Professional
5Regulation or the Department of Agriculture and information
6collected to investigate any such complaint, shall be
7maintained for the confidential use of the Department of
8Financial and Professional Regulation or the Department of
9Agriculture and shall not be disclosed, except to those
10involved in enforcing the State Officials and Employees Ethics
11Act and as otherwise provided in this Act. A formal complaint
12against a licensee by the Department of Financial and
13Professional Regulation or the Department of Agriculture or
14any disciplinary order issued by the Department of Financial
15and Professional Regulation or the Department of Agriculture
16against a licensee or applicant shall be a public record,
17except as otherwise provided by law. Complaints from consumers
18or members of the general public received regarding a
19specific, named licensee or complaints regarding conduct by
20unlicensed entities shall be subject to disclosure under the
21Freedom of Information Act.
22    (e) The Department of Agriculture, the Illinois State
23Police, and the Department of Financial and Professional
24Regulation shall not share or disclose any Illinois or
25national criminal history record information, or the
26nonexistence or lack of such information, to any person or

 

 

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1entity not expressly authorized by this Act.
2    (f) Each Department responsible for licensure under this
3Act shall publish on the Department's website a list of the
4ownership information of cannabis business establishment
5licensees under the Department's jurisdiction. The list shall
6include, but is not limited to: the name of the person or
7entity holding each cannabis business establishment license;
8and the address at which the entity is operating under this
9Act. This list shall be published and updated monthly.
10(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
11102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
125-13-22.)
 
13    (410 ILCS 705/55-65)
14    Sec. 55-65. Financial institutions.
15    (a) A financial institution that provides financial
16services customarily provided by financial institutions to a
17cannabis business establishment authorized under this Act or
18the Compassionate Use of Medical Cannabis Program Act, or to a
19person that is affiliated with such cannabis business
20establishment, is exempt from any criminal law of this State
21as it relates to cannabis-related conduct authorized under
22State law.
23    (b) Upon request of a financial institution, a cannabis
24business establishment or proposed cannabis business
25establishment may provide to the financial institution the

 

 

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1following information:
2        (1) Whether a cannabis business establishment with
3    which the financial institution is doing or is considering
4    doing business holds a license under this Act or the
5    Compassionate Use of Medical Cannabis Program Act;
6        (2) The name of any other business or individual
7    affiliate with the cannabis business establishment;
8        (3) A copy of the application, and any supporting
9    documentation submitted with the application, for a
10    license or a permit submitted on behalf of the proposed
11    cannabis business establishment;
12        (4) If applicable, data relating to sales and the
13    volume of product sold by the cannabis business
14    establishment;
15        (5) Any past or pending violation by the person of
16    this Act, the Compassionate Use of Medical Cannabis
17    Program Act, or the rules adopted under these Acts where
18    applicable; and
19        (6) Any penalty imposed upon the person for violating
20    this Act, the Compassionate Use of Medical Cannabis
21    Program Act, or the rules adopted under these Acts.
22    (c) (Blank).
23    (d) (Blank).
24    (e) Information received by a financial institution under
25this Section is confidential. Except as otherwise required or
26permitted by this Act, State law or rule, or federal law or

 

 

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1regulation, a financial institution may not make the
2information available to any person other than:
3        (1) the customer to whom the information applies;
4        (2) a trustee, conservator, guardian, personal
5    representative, or agent of the customer to whom the
6    information applies; a federal or State regulator when
7    requested in connection with an examination of the
8    financial institution or if otherwise necessary for
9    complying with federal or State law;
10        (3) a federal or State regulator when requested in
11    connection with an examination of the financial
12    institution or if otherwise necessary for complying with
13    federal or State law; and
14        (4) a third party performing services for the
15    financial institution, provided the third party is
16    performing such services under a written agreement that
17    expressly or by operation of law prohibits the third
18    party's sharing and use of such confidential information
19    for any purpose other than as provided in its agreement to
20    provide services to the financial institution; and .
21        (5) the Office of the Executive Inspector General
22    pursuant to an investigation under the State Officials and
23    Employees Ethics Act.    
24(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
25    (410 ILCS 705/55-85)

 

 

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1    Sec. 55-85. Medical cannabis.
2    (a) Nothing in this Act shall be construed to limit any
3privileges or rights of a qualifying medical cannabis patient
4including minor patients, designated primary caregiver,
5medical cannabis cultivation center, provisional patient and
6Opioid Alternative Patient Program participant or medical
7cannabis dispensing organization under the Compassionate Use
8of Medical Cannabis Program Act, and where there is conflict
9between this Act and the Compassionate Use of Medical Cannabis
10Program Act as they relate to medical cannabis patients, the
11Compassionate Use of Medical Cannabis Program Act shall
12prevail.
13    (b) Dispensary locations that obtain an Early Approval
14Adult Use Dispensary Organization License or an Adult Use
15Dispensary Organization License in accordance with this Act at
16the same location as a medical cannabis dispensing
17organization registered under the Compassionate Use of Medical
18Cannabis Program Act shall maintain an inventory of medical
19cannabis and medical cannabis products on a monthly basis that
20is substantially similar in variety and quantity to the
21products offered at the dispensary during the 6-month period
22immediately before the effective date of this Act.
23    (c) Beginning June 30, 2020, the Department of Agriculture
24shall make a quarterly determination whether inventory
25requirements established for dispensaries in subsection (b)
26should be adjusted due to changing patient need.

 

 

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1(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
2    (410 ILCS 705/60-10)
3    Sec. 60-10. Tax imposed.
4    (a) Beginning September 1, 2019, a tax is imposed upon the
5privilege of cultivating cannabis at the rate of 7% of the
6gross receipts from the first sale of cannabis by a
7cultivator. The sale of any product that contains any amount
8of cannabis or any derivative thereof is subject to the tax
9under this Section on the full selling price of the product.
10The Department may determine the selling price of the cannabis
11when the seller and purchaser are affiliated persons, when the
12sale and purchase of cannabis is not an arm's length
13transaction, or when cannabis is transferred by a craft grower
14to the craft grower's dispensing organization or infuser or
15processing organization and a value is not established for the
16cannabis. The value determined by the Department shall be
17commensurate with the actual price received for products of
18like quality, character, and use in the area. If there are no
19sales of cannabis of like quality, character, and use in the
20same area, then the Department shall establish a reasonable
21value based on sales of products of like quality, character,
22and use in other areas of the State, taking into consideration
23any other relevant factors.
24    (b) The Cannabis Cultivation Privilege Tax imposed under
25this Article is solely the responsibility of the cultivator

 

 

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1who makes the first sale and is not the responsibility of a
2subsequent purchaser, a dispensing organization, or an
3infuser. Persons subject to the tax imposed under this Article
4may, however, reimburse themselves for their tax liability
5hereunder by separately stating reimbursement for their tax
6liability as an additional charge.
7    (c) The tax imposed under this Article shall be in
8addition to all other occupation, privilege, or excise taxes
9imposed by the State of Illinois or by any unit of local
10government.
11(Source: P.A. 101-27, eff. 6-25-19.)
 
12    (410 ILCS 705/65-5)
13    Sec. 65-5. Definitions. In this Article:
14    "Adjusted delta-9-tetrahydrocannabinol level" means, for a
15delta-9-tetrahydrocannabinol dominant product, the sum of the
16percentage of delta-9-tetrahydrocannabinol plus .877
17multiplied by the percentage of tetrahydrocannabinolic acid.
18    "Cannabis" has the meaning given to that term in Article 1
19of this Act, except that it does not include cannabis that is
20subject to tax under the Compassionate Use of Medical Cannabis
21Program Act.
22    "Cannabis-infused product" means a beverage, food, oils,
23ointments, tincture, topical formulation, or another product
24containing cannabis that is not intended to be smoked.
25    "Cannabis retailer" means a dispensing organization that

 

 

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1sells cannabis for use and not for resale.
2    "Craft grower" has the meaning given to that term in
3Article 1 of this Act.
4    "Department" means the Department of Revenue.
5    "Director" means the Director of Revenue.
6    "Dispensing organization" or "dispensary" has the meaning
7given to that term in Article 1 of this Act.
8    "Person" means a natural individual, firm, partnership,
9association, joint stock company, joint adventure, public or
10private corporation, limited liability company, or a receiver,
11executor, trustee, guardian, or other representative appointed
12by order of any court.
13    "Infuser organization" or "infuser" means a facility
14operated by an organization or business that is licensed by
15the Department of Agriculture to directly incorporate cannabis
16or cannabis concentrate into a product formulation to produce
17a cannabis-infused product.
18    "Purchase price" means the consideration paid for a
19purchase of cannabis, valued in money, whether received in
20money or otherwise, including cash, gift cards, credits, and
21property and shall be determined without any deduction on
22account of the cost of materials used, labor or service costs,
23or any other expense whatsoever. However, "purchase price"
24does not include consideration paid for:
25        (1) any charge for a payment that is not honored by a
26    financial institution;

 

 

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1        (2) any finance or credit charge, penalty or charge
2    for delayed payment, or discount for prompt payment; and
3        (3) any amounts added to a purchaser's bill because of
4    charges made under the tax imposed by this Article, the
5    Municipal Cannabis Retailers' Occupation Tax Law, the
6    County Cannabis Retailers' Occupation Tax Law, the
7    Retailers' Occupation Tax Act, the Use Tax Act, the
8    Service Occupation Tax Act, the Service Use Tax Act, or
9    any locally imposed occupation or use tax.
10    "Purchaser" means a person who acquires cannabis for a
11valuable consideration.
12    "Qualifying patient" or "qualified patient" means a person
13who has been diagnosed by a certifying health care
14professional as having a debilitating medical condition as
15defined under the Compassionate Use of Medical Cannabis
16Program Act.    
17    "Taxpayer" means a cannabis retailer who is required to
18collect the tax imposed under this Article.
19(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
20    (410 ILCS 705/65-10)
21    Sec. 65-10. Tax imposed.
22    (a) Beginning January 1, 2020, a tax is imposed upon
23purchasers for the privilege of using cannabis, and not for
24the purpose of resale, at the following rates:
25        (1) Any cannabis, other than a cannabis-infused

 

 

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1    product, with an adjusted delta-9-tetrahydrocannabinol
2    level at or below 35% shall be taxed at a rate of 10% of
3    the purchase price;
4        (2) Any cannabis, other than a cannabis-infused
5    product, with an adjusted delta-9-tetrahydrocannabinol
6    level above 35% shall be taxed at a rate of 25% of the
7    purchase price; and
8        (3) A cannabis-infused product shall be taxed at a
9    rate of 20% of the purchase price.
10    (b) The purchase of any product that contains any amount
11of cannabis or any derivative thereof is subject to the tax
12under subsection (a) of this Section on the full purchase
13price of the product.
14    (c) The tax imposed under this Section is not imposed on
15cannabis that is subject to tax under the Compassionate Use of
16Medical Cannabis Program Act. The tax imposed by this Section
17is not imposed with respect to any transaction in interstate
18commerce, to the extent the transaction may not, under the
19Constitution and statutes of the United States, be made the
20subject of taxation by this State. Beginning 90 days after the
21effective date of this amendatory Act of the 104th General
22Assembly, the tax imposed under this Section shall not be
23imposed on cannabis or cannabis-infused products purchased by
24a qualified patient, designated caregiver, Opioid Alternative
25Patient Program participant, or provisional patient when
26purchasing cannabis or cannabis-infused products under this

 

 

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1Act as part of that individual's adequate medical supply from
2a Medical Cannabis Dispensing Organization licensee, as these
3terms are defined under Section 1-10 of this Act of the 104th
4General Assembly.    
5    (d) The tax imposed under this Article shall be in
6addition to all other occupation, privilege, or excise taxes
7imposed by the State of Illinois or by any municipal
8corporation or political subdivision thereof.
9    (e) The tax imposed under this Article shall not be
10imposed on any purchase by a purchaser if the cannabis
11retailer is prohibited by federal or State Constitution,
12treaty, convention, statute, or court decision from collecting
13the tax from the purchaser.
14(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
15    (410 ILCS 705/65-30)
16    Sec. 65-30. Return and payment of tax by cannabis
17retailer. Each cannabis retailer that is required or
18authorized to collect the tax imposed by this Article shall
19make a return to the Department, by electronic means, on or
20before the 20th day of each month for the preceding calendar
21month stating the following:
22        (1) the cannabis retailer's name;
23        (2) the address of the cannabis retailer's principal
24    place of business and the address of the principal place
25    of business (if that is a different address) from which

 

 

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1    the cannabis retailer is engaged in the business of
2    selling cannabis subject to tax under this Article;
3        (3) the total purchase price received by the cannabis
4    retailer for cannabis subject to tax under this Article;
5        (4) the amount of tax due at each rate;
6        (5) the signature of the cannabis retailer; and
7        (6) any other information as the Department may
8    reasonably require.
9    All returns required to be filed and payments required to
10be made under this Article shall be by electronic means.
11Cannabis retailers who demonstrate hardship in paying
12electronically may petition the Department to waive the
13electronic payment requirement.
14    Any amount that is required to be shown or reported on any
15return or other document under this Article shall, if the
16amount is not a whole-dollar amount, be increased to the
17nearest whole-dollar amount if the fractional part of a dollar
18is $0.50 or more and decreased to the nearest whole-dollar
19amount if the fractional part of a dollar is less than $0.50.
20If a total amount of less than $1 is payable, refundable, or
21creditable, the amount shall be disregarded if it is less than
22$0.50 and shall be increased to $1 if it is $0.50 or more.
23    The cannabis retailer making the return provided for in
24this Section shall also pay to the Department, in accordance
25with this Section, the amount of tax imposed by this Article,
26less a discount of 1.75%, but not to exceed $1,000 per return

 

 

10400SB3222ham002- 623 -LRB104 19119 BDA 38710 a

1period, which is allowed to reimburse the cannabis retailer
2for the expenses incurred in keeping records, collecting tax,
3preparing and filing returns, remitting the tax, and supplying
4data to the Department upon request. No discount may be
5claimed by a cannabis retailer on returns not timely filed and
6for taxes not timely remitted. No discount may be claimed by a
7taxpayer for any return that is not filed electronically. No
8discount may be claimed by a taxpayer for any payment that is
9not made electronically, unless a waiver has been granted
10under this Section.
11    Notwithstanding any other provision of this Article
12concerning the time within which a cannabis retailer may file
13a return, any such cannabis retailer who ceases to engage in
14the kind of business that makes the person responsible for
15filing returns under this Article shall file a final return
16under this Article with the Department within one month after
17discontinuing the business.
18    Each cannabis retailer shall make estimated payments to
19the Department on or before the 7th, 15th, 22nd, and last day
20of the month during which tax liability to the Department is
21incurred. The payments shall be in an amount not less than the
22lower of either 22.5% of the cannabis retailer's actual tax
23liability for the month or 25% of the cannabis retailer's
24actual tax liability for the same calendar month of the
25preceding year. The amount of the quarter-monthly payments
26shall be credited against the final tax liability of the

 

 

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1cannabis retailer's return for that month. If any such
2quarter-monthly payment is not paid at the time or in the
3amount required by this Section, then the cannabis retailer
4shall be liable for penalties and interest on the difference
5between the minimum amount due as a payment and the amount of
6the quarter-monthly payment actually and timely paid, except
7insofar as the cannabis retailer has previously made payments
8for that month to the Department in excess of the minimum
9payments previously due as provided in this Section.
10    If any payment provided for in this Section exceeds the
11taxpayer's liabilities under this Article, as shown on an
12original monthly return, the Department shall, if requested by
13the taxpayer, issue to the taxpayer a credit memorandum no
14later than 30 days after the date of payment. The credit
15evidenced by the credit memorandum may be assigned by the
16taxpayer to a similar taxpayer under this Article, in
17accordance with reasonable rules to be prescribed by the
18Department. If no such request is made, the taxpayer may
19credit the excess payment against tax liability subsequently
20to be remitted to the Department under this Article, in
21accordance with reasonable rules prescribed by the Department.
22If the Department subsequently determines that all or any part
23of the credit taken was not actually due to the taxpayer, the
24taxpayer's discount shall be reduced, if necessary, to reflect
25the difference between the credit taken and that actually due,
26and that taxpayer shall be liable for penalties and interest

 

 

10400SB3222ham002- 625 -LRB104 19119 BDA 38710 a

1on the difference. If a cannabis retailer fails to sign a
2return within 30 days after the proper notice and demand for
3signature by the Department is received by the cannabis
4retailer, the return shall be considered valid and any amount
5shown to be due on the return shall be deemed assessed.
6(Source: P.A. 101-27, eff. 6-25-19.)
 
7    (410 ILCS 705/65-38)
8    Sec. 65-38. Violations and penalties.
9    (a) When the amount due is under $300, any retailer of
10cannabis who fails to file a return, willfully fails or
11refuses to make any payment to the Department of the tax
12imposed by this Article, or files a fraudulent return, or any
13officer or agent of a corporation engaged in the business of
14selling cannabis to purchasers located in this State who signs
15a fraudulent return filed on behalf of the corporation, or any
16accountant or other agent who knowingly enters false
17information on the return of any taxpayer under this Article
18is guilty of a Class 4 felony.
19    (b) When the amount due is $300 or more, any retailer of
20cannabis who fails to file a return, willfully fails or
21refuses to make any payment to the Department of the tax
22imposed by this Article, files, or causes to be filed, a
23fraudulent return, or any officer or agent of a corporation
24engaged in the business of selling cannabis to purchasers
25located in this State who files or causes to be filed or signs

 

 

10400SB3222ham002- 626 -LRB104 19119 BDA 38710 a

1or causes to be signed a fraudulent return filed on behalf of
2the corporation, or any accountant or other agent who
3knowingly enters false information on the return of any
4taxpayer under this Article is guilty of a Class 3 felony.
5    (c) Any person who violates any provision of Section
665-20, or fails to keep books and records as required under
7this Article, or willfully violates a rule of the Department
8for the administration and enforcement of this Article is
9guilty of a Class 4 felony. A person commits a separate offense
10on each day that he or she engages in business in violation of
11Section 65-20 or a rule of the Department for the
12administration and enforcement of this Article. If a person
13fails to produce the books and records for inspection by the
14Department upon request, a prima facie presumption shall arise
15that the person has failed to keep books and records as
16required under this Article. A person who is unable to rebut
17this presumption is in violation of this Article and is
18subject to the penalties provided in this Section.
19    (d) Any person who violates any provision of Sections
2065-20, fails to keep books and records as required under this
21Article, or willfully violates a rule of the Department for
22the administration and enforcement of this Article, is guilty
23of a business offense and may be fined up to $5,000. If a
24person fails to produce books and records for inspection by
25the Department upon request, a prima facie presumption shall
26arise that the person has failed to keep books and records as

 

 

10400SB3222ham002- 627 -LRB104 19119 BDA 38710 a

1required under this Article. A person who is unable to rebut
2this presumption is in violation of this Article and is
3subject to the penalties provided in this Section. A person
4commits a separate offense on each day that he or she engages
5in business in violation of a rule of the Department for the
6administration and enforcement of this Article Section 65-20.
7    (e) Any taxpayer or agent of a taxpayer who with the intent
8to defraud purports to make a payment due to the Department by
9issuing or delivering a check or other order upon a real or
10fictitious depository for the payment of money, knowing that
11it will not be paid by the depository, is guilty of a deceptive
12practice in violation of Section 17-1 of the Criminal Code of
132012.
14    (f) Any person who fails to keep books and records or fails
15to produce books and records for inspection, as required by
16Section 65-36, is liable to pay to the Department, for deposit
17in the Tax Compliance and Administration Fund, a penalty of
18$1,000 for the first failure to keep books and records or
19failure to produce books and records for inspection, as
20required by Section 65-36, and $3,000 for each subsequent
21failure to keep books and records or failure to produce books
22and records for inspection, as required by Section 65-36.
23    (g) Any person who knowingly acts as a retailer of
24cannabis in this State without first having obtained a
25certificate of registration to do so in compliance with
26Section 65-20 of this Article shall be guilty of a Class 4

 

 

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1felony.
2    (h) A person commits the offense of tax evasion under this
3Article when he or she knowingly attempts in any manner to
4evade or defeat the tax imposed on him or her or on any other
5person, or the payment thereof, and he or she commits an
6affirmative act in furtherance of the evasion. As used in this
7Section, "affirmative act in furtherance of the evasion" means
8an act designed in whole or in part to (i) conceal,
9misrepresent, falsify, or manipulate any material fact or (ii)
10tamper with or destroy documents or materials related to a
11person's tax liability under this Article. Two or more acts of
12sales tax evasion may be charged as a single count in any
13indictment, information, or complaint and the amount of tax
14deficiency may be aggregated for purposes of determining the
15amount of tax that is attempted to be or is evaded and the
16period between the first and last acts may be alleged as the
17date of the offense.
18        (1) When the amount of tax, the assessment or payment
19    of which is attempted to be or is evaded is less than $500,
20    a person is guilty of a Class 4 felony.
21        (2) When the amount of tax, the assessment or payment
22    of which is attempted to be or is evaded is $500 or more
23    but less than $10,000, a person is guilty of a Class 3
24    felony.
25        (3) When the amount of tax, the assessment or payment
26    of which is attempted to be or is evaded is $10,000 or more

 

 

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1    but less than $100,000, a person is guilty of a Class 2
2    felony.
3        (4) When the amount of tax, the assessment or payment
4    of which is attempted to be or is evaded is $100,000 or
5    more, a person is guilty of a Class 1 felony.
6    Any person who knowingly sells, purchases, installs,
7transfers, possesses, uses, or accesses any automated sales
8suppression device, zapper, or phantom-ware in this State is
9guilty of a Class 3 felony.
10    As used in this Section:
11    "Automated sales suppression device" or "zapper" means a
12software program that falsifies the electronic records of an
13electronic cash register or other point-of-sale system,
14including, but not limited to, transaction data and
15transaction reports. The term includes the software program,
16any device that carries the software program, or an Internet
17link to the software program.
18    "Phantom-ware" means a hidden programming option embedded
19in the operating system of an electronic cash register or
20hardwired into an electronic cash register that can be used to
21create a second set of records or that can eliminate or
22manipulate transaction records in an electronic cash register.
23    "Electronic cash register" means a device that keeps a
24register or supporting documents through the use of an
25electronic device or computer system designed to record
26transaction data for the purpose of computing, compiling, or

 

 

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1processing retail sales transaction data in any manner.
2    "Transaction data" includes: items purchased by a
3purchaser; the price of each item; a taxability determination
4for each item; a segregated tax amount for each taxed item; the
5amount of cash or credit tendered; the net amount returned to
6the customer in change; the date and time of the purchase; the
7name, address, and identification number of the vendor; and
8the receipt or invoice number of the transaction.
9    "Transaction report" means a report that documents,
10without limitation, the sales, taxes, or fees collected, media
11totals, and discount voids at an electronic cash register and
12that is printed on a cash register tape at the end of a day or
13shift, or a report that documents every action at an
14electronic cash register and is stored electronically.
15    A prosecution for any act in violation of this Section may
16be commenced at any time within 5 years of the commission of
17that act.
18    (i) The Department may adopt rules to administer the
19penalties under this Section.
20    (j) Any person whose principal place of business is in
21this State and who is charged with a violation under this
22Section shall be tried in the county where his or her principal
23place of business is located unless he or she asserts a right
24to be tried in another venue.
25    (k) Except as otherwise provided in subsection (h), a
26prosecution for a violation described in this Section may be

 

 

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1commenced within 3 years after the commission of the act
2constituting the violation.
3(Source: P.A. 101-27, eff. 6-25-19.)
 
4    (410 ILCS 705/65-42)
5    Sec. 65-42. Seizure and forfeiture. After seizing any
6cannabis as provided in Section 65-41, the Department must
7hold a hearing and determine whether (i) the retailer was
8properly registered to sell the cannabis; (ii) the retailer
9possessed the cannabis in violation of this Act; (iii) the
10retailer possessed the cannabis in violation of any reasonable
11rule or regulation adopted by the Department for the
12enforcement of this Act; or (iv) the tax imposed by Article 60
13had been paid on the cannabis at the time of its seizure by the
14Department. The Department is not required to hold such a
15hearing if a waiver and consent to forfeiture has been
16executed by the owner of the cannabis, if the owner is known,
17and by the person in whose possession the cannabis so taken was
18found, if that person is known and if that person is not the
19owner of said cannabis. The Department shall give not less
20than 20 days' notice of the time and place of the hearing to
21the owner of the cannabis, if the owner is known, and also to
22the person in whose possession the cannabis was found, if that
23person is known and if the person in possession is not the
24owner of the cannabis. If neither the owner nor the person in
25possession of the cannabis is known, the Department must cause

 

 

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1publication of the time and place of the hearing to be made at
2least once in each week for 3 weeks successively in a newspaper
3of general circulation in the county where the hearing is to be
4held.
5    If, as the result of the hearing, the Department makes any
6of the findings listed in items (i) through (iv) determines
7that the retailer was not properly registered at the time the
8cannabis was seized, or upon receipt of a properly executed
9waiver and consent to forfeiture as provided in this Section,
10the Department must enter an order declaring the cannabis
11confiscated and forfeited to the State, to be held by the
12Department for disposal by it as provided in Section 65-43.
13The Department must give notice of the order to the owner of
14the cannabis, if the owner is known, and also to the person in
15whose possession the cannabis was found, if that person is
16known and if the person in possession is not the owner of the
17cannabis. If neither the owner nor the person in possession of
18the cannabis is known, the Department must cause publication
19of the order to be made at least once in each week for 3 weeks
20successively in a newspaper of general circulation in the
21county where the hearing was held.
22(Source: P.A. 103-1001, eff. 8-9-24.)
 
23    (410 ILCS 705/20-50 rep.)
24    (410 ILCS 705/25-45 rep.)
25    (410 ILCS 705/30-50 rep.)

 

 

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1    Section 170. The Cannabis Regulation and Tax Act is
2amended by repealing Sections 20-50, 25-45, and 30-50.
 
3    Section 175. The Industrial Hemp Act is amended by
4changing Section 20 as follows:
 
5    (505 ILCS 89/20)
6    Sec. 20. Hemp products.
7    (a) A person shall not sell, offer for sale, give, or
8deliver a hemp-derived product to a person under 21 years of
9age unless the product is a consumable or topical hemp-derived
10cannabinoid product that does not contain:
11        (1) any cannabinoids that are incapable of being
12    naturally produced by a Cannabis sativa L. plant;
13        (2) any cannabinoids that are capable of being
14    naturally produced by a Cannabis sativa L. plant but that
15    were synthesized or manufactured outside of the Cannabis
16    sativa L. plant; or
17        (3) more than a per-container total of 0.4 milligrams
18    of tetrahydrocannabinols, including
19    tetrahydrocannabinolic acid, or any other cannabinoids
20    that have similar effects or are marketed to have similar
21    effects on humans or animals as a tetrahydrocannabinol.
22    (b) A retailer shall verify the age of each purchaser of a
23hemp-derived product by examining the purchaser's valid
24government-issued photo identification. Verification shall be

 

 

10400SB3222ham002- 634 -LRB104 19119 BDA 38710 a

1required for any purchaser who appears under 30 years of age.
2    (c) (Blank).
3    (d) Every hemp-derived product offered for sale in this
4State shall bear a label containing, at minimum:
5        (1) the product name;
6        (2) the net weight or volume of the product;
7        (3) a complete and accurate list of all ingredients in
8    the product in descending order of predominance;
9        (4) the identity and quantity of each cannabinoid
10    present in the product, expressed in milligrams per
11    serving and per container, including total THC;
12        (5) the number of servings per container;
13        (6) the batch or lot number of the product;
14        (7) the name, business address, and contact
15    information of the manufacturer or distributor of the
16    product; and
17        (8) an expiration or use by date for the product.
18    (e) The label and packaging of a hemp-derived product
19shall not contain:
20        (1) any information that is false or misleading,
21    including a representation that the product is a cannabis
22    product;
23        (2) any image designed or likely to appeal to minors,
24    including cartoons, toys, animals, or children, or any
25    other likeness to images, characters, or phrases used to
26    advertise to children;

 

 

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1        (3) any information that imitates the trade dress,
2    name, or packaging of any commercial non-cannabis or
3    non-hemp food, candy, beverage, or product primarily
4    marketed to children;
5        (4) any seal, flag, crest, coat of arms, or other
6    insignia likely to mislead a purchaser into believing the
7    product has been endorsed, made, or used by the State of
8    Illinois or any of its representatives, except where
9    authorized by this Act;
10        (5) any health claim; or
11        (6) any information that misstates or omits
12    cannabinoid content or ingredients.
13    (f) The Attorney General may enforce a violation of this
14Section 20 as an unlawful practice under the Consumer Fraud
15and Deceptive Business Practices Act.    
16    Nothing in this Act shall alter the legality of hemp or
17hemp products that are presently legal to possess or own.
18(Source: P.A. 100-1091, eff. 8-26-18.)
 
19    (505 ILCS 89/Act rep.)
20    Section 180. The Industrial Hemp Act is repealed on
21November 12, 2026.
 
22    Section 185. The Illinois Vehicle Code is amended by
23changing Sections 11-502.1 and 11-502.15 as follows:
 

 

 

10400SB3222ham002- 636 -LRB104 19119 BDA 38710 a

1    (625 ILCS 5/11-502.1)
2    Sec. 11-502.1. Possession of medical cannabis in a motor
3vehicle.
4    (a) No driver, who is a medical cannabis cardholder, may
5use medical cannabis within the passenger area of any motor
6vehicle upon a highway in this State.
7    (b) No driver, who is a medical cannabis cardholder, a
8medical cannabis designated caregiver, medical cannabis
9cultivation center agent, or dispensing organization agent may
10possess medical cannabis within any area of any motor vehicle
11upon a highway in this State except in a secured, sealed or
12resealable, odor-proof, and child-resistant medical cannabis
13container that is inaccessible, unless subsection (e) of
14Section 15-85 of the Cannabis Regulation and Tax Act applies.
15    (c) No passenger, who is a medical cannabis card holder, a
16medical cannabis designated caregiver, or medical cannabis
17dispensing organization agent may possess medical cannabis
18within any passenger area of any motor vehicle upon a highway
19in this State except in a secured, sealed or resealable,
20odor-proof, and child-resistant medical cannabis container
21that is inaccessible, unless subsection (e) of Section 15-85
22of the Cannabis Regulation and Tax Act applies.
23    (d) Any person who violates subsections (a) through (c) of
24this Section:
25        (1) commits a Class A misdemeanor;
26        (2) shall be subject to revocation of his or her

 

 

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1    medical cannabis card for a period of 2 years from the end
2    of the sentence imposed; and
3        (3) shall be subject to revocation of his or her
4    status as a medical cannabis caregiver, medical cannabis
5    cultivation center agent, or medical cannabis dispensing
6    organization agent for a period of 2 years from the end of
7    the sentence imposed.
8(Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21;
9102-558, eff. 8-20-21.)
 
10    (625 ILCS 5/11-502.15)
11    Sec. 11-502.15. Possession of adult use cannabis in a
12motor vehicle.
13    (a) No driver may use cannabis within the passenger area
14of any motor vehicle upon a highway in this State.
15    (b) No driver may possess cannabis within any area of any
16motor vehicle upon a highway in this State except in a secured,
17sealed or resealable, odor-proof, child-resistant cannabis
18container that is inaccessible, unless subsection (e) of
19Section 15-85 of the Cannabis Regulation and Tax Act applies.
20    (c) No passenger may possess cannabis within any passenger
21area of any motor vehicle upon a highway in this State except
22in a secured, sealed or resealable, odor-proof,
23child-resistant cannabis container that is inaccessible,
24unless subsection (e) of Section 15-85 of the Cannabis
25Regulation and Tax Act applies.

 

 

10400SB3222ham002- 638 -LRB104 19119 BDA 38710 a

1    (d) Any person who knowingly violates subsection (a), (b),
2or (c) of this Section commits a Class A misdemeanor.
3(Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21.)
 
4    Section 190. The Cannabis Control Act is amended by
5changing Sections 4, 5, and 5.1 as follows:
 
6    (720 ILCS 550/4)  (from Ch. 56 1/2, par. 704)
7    Sec. 4. Except as otherwise provided in the Cannabis
8Regulation and Tax Act, and the Industrial Hemp Act, and the
9Illinois Hemp Act, it is unlawful for any person knowingly to
10possess cannabis.
11    Any person who violates this Section with respect to:
12        (a) not more than 10 grams of any substance containing
13    cannabis is guilty of a civil law violation punishable by
14    a minimum fine of $100 and a maximum fine of $200. The
15    proceeds of the fine shall be payable to the clerk of the
16    circuit court. Within 30 days after the deposit of the
17    fine, the clerk shall distribute the proceeds of the fine
18    as follows:
19            (1) $10 of the fine to the circuit clerk and $10 of
20        the fine to the law enforcement agency that issued the
21        citation; the proceeds of each $10 fine distributed to
22        the circuit clerk and each $10 fine distributed to the
23        law enforcement agency that issued the citation for
24        the violation shall be used to defer the cost of

 

 

10400SB3222ham002- 639 -LRB104 19119 BDA 38710 a

1        automatic expungements under paragraph (2.5) of
2        subsection (a) of Section 5.2 of the Criminal
3        Identification Act;
4            (2) $15 to the county to fund drug addiction
5        services;
6            (3) $10 to the Office of the State's Attorneys
7        Appellate Prosecutor for use in training programs;
8            (4) $10 to the State's Attorney; and
9            (5) any remainder of the fine to the law
10        enforcement agency that issued the citation for the
11        violation.
12        With respect to funds designated for the Illinois
13    State Police, the moneys shall be remitted by the circuit
14    court clerk to the Illinois State Police within one month
15    after receipt for deposit into the State Police Operations
16    Assistance Fund. With respect to funds designated for the
17    Department of Natural Resources, the Department of Natural
18    Resources shall deposit the moneys into the Conservation
19    Police Operations Assistance Fund;
20        (b) more than 10 grams but not more than 60 30 grams of
21    any substance containing cannabis is guilty of a Class B
22    misdemeanor;
23        (c) more than 60 30 grams but not more than 100 grams
24    of any substance containing cannabis is guilty of a Class
25    A misdemeanor; provided, that if any offense under this
26    subsection (c) is a subsequent offense, the offender shall

 

 

10400SB3222ham002- 640 -LRB104 19119 BDA 38710 a

1    be guilty of a Class 4 felony;
2        (d) more than 100 grams but not more than 500 grams of
3    any substance containing cannabis is guilty of a Class 4
4    felony; provided that if any offense under this subsection
5    (d) is a subsequent offense, the offender shall be guilty
6    of a Class 3 felony;
7        (e) more than 500 grams but not more than 2,000 grams
8    of any substance containing cannabis is guilty of a Class
9    3 felony;
10        (f) more than 2,000 grams but not more than 5,000
11    grams of any substance containing cannabis is guilty of a
12    Class 2 felony;
13        (g) more than 5,000 grams of any substance containing
14    cannabis is guilty of a Class 1 felony.
15    Fines and assessments, such as fees or administrative
16costs, authorized under this Section shall not be ordered or
17imposed against a minor subject to Article III, IV, or V of the
18Juvenile Court Act of 1987, or a minor under the age of 18
19transferred to adult court or excluded from juvenile court
20jurisdiction under Article V of the Juvenile Court Act of
211987, or the minor's parent, guardian, or legal custodian.
22(Source: P.A. 102-538, eff. 8-20-21; 103-379, eff. 7-28-23.)
 
23    (720 ILCS 550/5)  (from Ch. 56 1/2, par. 705)
24    Sec. 5. Except as otherwise provided in the Cannabis
25Regulation and Tax Act, and the Industrial Hemp Act, and the

 

 

10400SB3222ham002- 641 -LRB104 19119 BDA 38710 a

1Illinois Hemp Act, it is unlawful for any person knowingly to
2manufacture, deliver, or possess with intent to deliver, or
3manufacture, cannabis. Any person who violates this Section
4with respect to:
5        (a) not more than 2.5 grams of any substance
6    containing cannabis is guilty of a Class B misdemeanor;
7        (b) more than 2.5 grams but not more than 10 grams of
8    any substance containing cannabis is guilty of a Class A
9    misdemeanor;
10        (c) more than 10 grams but not more than 60 30 grams of
11    any substance containing cannabis is guilty of a Class 4
12    felony;
13        (d) more than 60 30 grams but not more than 500 grams
14    of any substance containing cannabis is guilty of a Class
15    3 felony for which a fine not to exceed $50,000 may be
16    imposed;
17        (e) more than 500 grams but not more than 2,000 grams
18    of any substance containing cannabis is guilty of a Class
19    2 felony for which a fine not to exceed $100,000 may be
20    imposed;
21        (f) more than 2,000 grams but not more than 5,000
22    grams of any substance containing cannabis is guilty of a
23    Class 1 felony for which a fine not to exceed $150,000 may
24    be imposed;
25        (g) more than 5,000 grams of any substance containing
26    cannabis is guilty of a Class X felony for which a fine not

 

 

10400SB3222ham002- 642 -LRB104 19119 BDA 38710 a

1    to exceed $200,000 may be imposed.
2(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
3    (720 ILCS 550/5.1)  (from Ch. 56 1/2, par. 705.1)
4    Sec. 5.1. Cannabis trafficking.
5    (a) Except for purposes authorized by this Act, the
6Industrial Hemp Act, the Illinois Hemp Act, or the Cannabis
7Regulation and Tax Act, any person who knowingly brings or
8causes to be brought into this State for the purpose of
9manufacture or delivery or with the intent to manufacture or
10deliver 2,500 grams or more of cannabis in this State or any
11other state or country is guilty of cannabis trafficking.
12    (b) A person convicted of cannabis trafficking shall be
13sentenced to a term of imprisonment not less than twice the
14minimum term and fined an amount as authorized by subsection
15(f) or (g) of Section 5 of this Act, based upon the amount of
16cannabis brought or caused to be brought into this State, and
17not more than twice the maximum term of imprisonment and fined
18twice the amount as authorized by subsection (f) or (g) of
19Section 5 of this Act, based upon the amount of cannabis
20brought or caused to be brought into this State.
21(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
22    (720 ILCS 550/15.2 rep.)
23    Section 195. The Cannabis Control Act is amended by
24repealing Section 15.2.
 

 

 

10400SB3222ham002- 643 -LRB104 19119 BDA 38710 a

1    Section 200. The Tobacco Accessories and Smoking Herbs
2Control Act is amended by changing Section 2 as follows:
 
3    (720 ILCS 685/2)  (from Ch. 23, par. 2358-2)
4    Sec. 2. Purpose. The sale and possession of marijuana,
5hashish, cocaine, opium, and their derivatives, is not only
6prohibited by Illinois Law, but the use of these substances
7has been deemed injurious to the health of the user.
8    It has further been determined by the Surgeon General of
9the United States that the use of tobacco is hazardous to human
10health.
11    The ready availability of smoking herbs to persons under
1221 years of age could lead to the use of tobacco and illegal
13drugs.
14    It is in the best interests of the citizens of the State of
15Illinois to seek to prohibit the spread of illegal drugs,
16tobacco or smoking materials to persons under 21 years of age.
17The prohibition of the sale of tobacco and snuff accessories
18and smoking herbs to persons under 21 years of age would help
19to curb the usage of illegal drugs and tobacco products, among
20our youth.
21(Source: P.A. 101-2, eff. 7-1-19.)
 
22    Section 205. The Consumer Fraud and Deceptive Business
23Practices Act is amended by adding Section 2MMMM as follows:
 

 

 

10400SB3222ham002- 644 -LRB104 19119 BDA 38710 a

1    (815 ILCS 505/2MMMM new)
2    Sec. 2MMMM. Violations of the Industrial Hemp Act, the
3Illinois Hemp Act, and Sections 15-155 and 20-60 of the
4Cannabis Regulation and Tax Act. A person commits an unlawful
5practice within the meaning of this Act when the person
6violates the Illinois Hemp Act, Section 20 of the Industrial
7Hemp Act, subsection (a) of Section 15-155 or subsection (a)
8of Section 20-60 of the Cannabis Regulation and Tax Act.
 
9    Section 995. No acceleration or delay. Where this Act
10makes changes in a statute that is represented in this Act by
11text that is not yet or no longer in effect (for example, a
12Section represented by multiple versions), the use of that
13text does not accelerate or delay the taking effect of (i) the
14changes made by this Act or (ii) provisions derived from any
15other Public Act.
 
16    Section 997. Severability. The provisions of this Act are
17severable under Section 1.31 of the Statute on Statutes.
 
18    Section 999. Effective date. This Act takes effect upon
19becoming law, except that Sections 1 through 70 and Section
20160 take effect on November 12, 2026.".