Rep. Will Guzzardi

Filed: 5/30/2026

 

 


 

 


 
10400SB3229ham001LRB104 19751 BDA 38627 a

1
AMENDMENT TO SENATE BILL 3229

2    AMENDMENT NO. ______. Amend Senate Bill 3229 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

 

 

10400SB3229ham001- 23 -LRB104 19751 BDA 38627 a

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. If
11any part of this Act conflicts with a provision of federal law
12regarding hemp or industrial hemp, the federal provision shall
13control to the extent of the conflict.
14    (b) Nothing in this Act shall prohibit the transportation
15or shipment of hemp or hemp products produced in accordance
16with subtitle G of the Agricultural Marketing Act of 1946 (7
17U.S.C. 1639o et seq.) through the State.
 
18    Section 70. Home Rule. A home rule unit may not regulate
19hemp in a manner less restrictive than the regulation of hemp
20under this Act. This Section is a limitation under subsection
21(i) of Section 6 of Article VII of the Illinois Constitution on
22the concurrent exercise by home rule units of powers and
23functions 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
25by the Department against a licensee, registrant, or applicant

 

 

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

 

 

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

 

 

10400SB3229ham001- 30 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 31 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 32 -LRB104 19751 BDA 38627 a

1        Act, Section 410 of the Illinois Controlled Substances
2        Act, Section 70 of the Methamphetamine Control and
3        Community Protection Act, Section 5-6-3.3 or 5-6-3.4
4        of the Unified Code of Corrections, Section
5        12-4.3(b)(1) and (2) of the Criminal Code of 1961 (as
6        those provisions existed before their deletion by
7        Public Act 89-313), Section 10-102 of the Illinois
8        Alcoholism and Other Drug Dependency Act, Section
9        40-10 of the Substance Use Disorder Act, or Section 10
10        of the Steroid Control Act. For the purpose of this
11        Section, "successful completion" of an order of
12        qualified probation under Section 10-102 of the
13        Illinois Alcoholism and Other Drug Dependency Act and
14        Section 40-10 of the Substance Use Disorder Act means
15        that the probation was terminated satisfactorily and
16        the judgment of conviction was vacated.
17            (K) "Seal" means to physically and electronically
18        maintain the records, unless the records would
19        otherwise be destroyed due to age, but to make the
20        records unavailable without a court order, subject to
21        the exceptions in Sections 12 and 13 of this Act. The
22        petitioner's name shall also be obliterated from the
23        official index required to be kept by the circuit
24        court clerk under Section 16 of the Clerks of Courts
25        Act, but any index issued by the circuit court clerk
26        before the entry of the order to seal shall not be

 

 

10400SB3229ham001- 33 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 34 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 35 -LRB104 19751 BDA 38627 a

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

 

 

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1                (iii) Section 12-3.1 or 12-3.2 of the Criminal
2            Code of 1961 or the Criminal Code of 2012, or
3            Section 125 of the Stalking No Contact Order Act,
4            or Section 219 of the Civil No Contact Order Act,
5            or a similar provision of a local ordinance;
6                (iv) Class A misdemeanors or felony offenses
7            under the Humane Care for Animals Act; or
8                (v) any offense or attempted offense that
9            would subject a person to registration under the
10            Sex Offender Registration Act.
11            (D) (blank).
12    (b) Expungement.
13        (1) A petitioner may petition the circuit court to
14    expunge the records of his or her arrests and charges not
15    initiated by arrest when each arrest or charge not
16    initiated by arrest sought to be expunged resulted in: (i)
17    acquittal, dismissal, or the petitioner's release without
18    charging, unless excluded by subsection (a)(3)(B); (ii) a
19    conviction which was vacated or reversed, unless excluded
20    by subsection (a)(3)(B); (iii) an order of supervision and
21    such supervision was successfully completed by the
22    petitioner, unless excluded by subsection (a)(3)(A) or
23    (a)(3)(B); or (iv) an order of qualified probation (as
24    defined in subsection (a)(1)(J)) and such probation was
25    successfully completed by the petitioner.
26        (1.5) When a petitioner seeks to have a record of

 

 

10400SB3229ham001- 37 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 38 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 39 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

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

 

 

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

 

 

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1            (D) Arrests or charges not initiated by arrest
2        resulting in convictions, including convictions on
3        municipal ordinance violations, unless excluded by
4        subsection (a)(3);
5            (E) Arrests or charges not initiated by arrest
6        resulting in orders of first offender probation under
7        Section 10 of the Cannabis Control Act, Section 410 of
8        the Illinois Controlled Substances Act, Section 70 of
9        the Methamphetamine Control and Community Protection
10        Act, or Section 5-6-3.3 of the Unified Code of
11        Corrections; and
12            (F) Arrests or charges not initiated by arrest
13        resulting in felony convictions unless otherwise
14        excluded by subsection (a) paragraph (3) of this
15        Section.
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) Except as otherwise provided in subparagraph
23        (E) of this paragraph (3), records identified as
24        eligible under subsection (c)(2)(C) may be sealed 2
25        years after the termination of petitioner's last
26        sentence (as defined in subsection (a)(1)(F)).

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

10400SB3229ham001- 49 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1expungement, the circuit court clerk shall promptly mail a
2copy of the order to the person who was granted the certificate
3of eligibility for expungement.
4    (f) Subject to available funding, the Illinois Department
5of Corrections shall conduct a study of the impact of sealing,
6especially on employment and recidivism rates, utilizing a
7random sample of those who apply for the sealing of their
8criminal records under Public Act 93-211. At the request of
9the Illinois Department of Corrections, records of the
10Illinois Department of Employment Security shall be utilized
11as appropriate to assist in the study. The study shall not
12disclose any data in a manner that would allow the
13identification of any particular individual or employing unit.
14The study shall be made available to the General Assembly no
15later than September 1, 2010.
16    (g) Immediate Sealing.
17        (1) Applicability. Notwithstanding any other provision
18    of this Act to the contrary, and cumulative with any
19    rights to expungement or sealing of criminal records, this
20    subsection authorizes the immediate sealing of criminal
21    records of adults and of minors prosecuted as adults.
22        (2) Eligible Records. Arrests or charges not initiated
23    by arrest resulting in acquittal or dismissal with
24    prejudice, except as excluded by subsection (a)(3)(B),
25    that occur on or after January 1, 2018 (the effective date
26    of Public Act 100-282), may be sealed immediately if the

 

 

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

 

 

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

 

 

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1            (G) Service of Order. An order to immediately seal
2        eligible records shall be served in conformance with
3        subsection (d)(8).
4            (H) Implementation of Order. An order to
5        immediately seal records shall be implemented in
6        conformance with subsections (d)(9)(C) and (d)(9)(D).
7            (I) Fees. The fee imposed by the circuit court
8        clerk and the Illinois State Police shall comply with
9        paragraph (1) of subsection (d) of this Section.
10            (J) Final Order. No court order issued under this
11        subsection (g) shall become final for purposes of
12        appeal until 30 days after service of the order on the
13        petitioner and all parties entitled to service of the
14        order in conformance with subsection (d)(8).
15            (K) Motion to Vacate, Modify, or Reconsider. Under
16        Section 2-1203 of the Code of Civil Procedure, the
17        petitioner, State's Attorney, or the Illinois State
18        Police may file a motion to vacate, modify, or
19        reconsider the order denying the petition to
20        immediately seal within 60 days of service of the
21        order. If filed more than 60 days after service of the
22        order, a petition to vacate, modify, or reconsider
23        shall comply with subsection (c) of Section 2-1401 of
24        the Code of Civil Procedure.
25            (L) Effect of Order. An order granting an
26        immediate sealing petition shall not be considered

 

 

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1        void because it fails to comply with the provisions of
2        this Section or because of an error asserted in a
3        motion to vacate, modify, or reconsider. The circuit
4        court retains jurisdiction to determine whether the
5        order is voidable, and to vacate, modify, or
6        reconsider its terms based on a motion filed under
7        subparagraph (L) of this subsection (g).
8            (M) Compliance with Order Granting Petition to
9        Seal Records. Unless a court has entered a stay of an
10        order granting a petition to immediately seal, all
11        parties entitled to service of the order must fully
12        comply with the terms of the order within 60 days of
13        service of the order.
14    (h) Sealing or vacation and expungement of trafficking
15victims' crimes.
16        (1) A trafficking victim, as defined by paragraph (10)
17    of subsection (a) of Section 10-9 of the Criminal Code of
18    2012, may petition for vacation and expungement or
19    immediate sealing of his or her criminal record upon the
20    completion of his or her last sentence if his or her
21    participation in the underlying offense was a result of
22    human trafficking under Section 10-9 of the Criminal Code
23    of 2012 or a severe form of trafficking under the federal
24    Trafficking Victims Protection Act.
25        (1.5) A petition under paragraph (1) shall be
26    prepared, signed, and filed in accordance with Supreme

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        include more than one individual. Whenever an
2        individual who has been convicted of an offense is
3        granted a pardon by the Governor that specifically
4        authorizes expungement, an objection to the petition
5        may not be filed. Petitions to expunge under this
6        subsection (i) may include more than one individual.
7        Within 90 days of the filing of such a petition, the
8        court shall enter an order expunging the records of
9        arrest from the official records of the arresting
10        authority and order that the records of the circuit
11        court clerk and the Illinois State Police be expunged
12        and the name of the defendant obliterated from the
13        official index requested to be kept by the circuit
14        court clerk under Section 16 of the Clerks of Courts
15        Act in connection with the arrest and conviction for
16        the offense for which the individual had received a
17        pardon but the order shall not affect any index issued
18        by the circuit court clerk before the entry of the
19        order. Upon entry of the order of expungement, the
20        circuit court clerk shall promptly provide a copy of
21        the order and a certificate of disposition to the
22        individual who was pardoned to the individual's last
23        known address or by electronic means (if available) or
24        otherwise make it available to the individual upon
25        request.
26            (D) Nothing in this Section is intended to

 

 

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1        diminish or abrogate any rights or remedies otherwise
2        available to the individual.
3        (3) Any individual may file a motion to vacate and
4    expunge a conviction for a misdemeanor or Class 4 felony
5    violation of Section 4 or Section 5 of the Cannabis
6    Control Act. Motions to vacate and expunge under this
7    subsection (i) may be filed with the circuit court, Chief
8    Judge of a judicial circuit or any judge of the circuit
9    designated by the Chief Judge. The circuit court clerk
10    shall promptly serve a copy of the motion to vacate and
11    expunge, and any supporting documentation, on the State's
12    Attorney or prosecutor charged with the duty of
13    prosecuting the offense. When considering such a motion to
14    vacate and expunge, a court shall consider the following:
15    the reasons to retain the records provided by law
16    enforcement, the petitioner's age, the petitioner's age at
17    the time of offense, the time since the conviction, and
18    the specific adverse consequences if denied. An individual
19    may file such a petition after the completion of any
20    non-financial sentence or non-financial condition imposed
21    by the conviction. Within 60 days of the filing of such
22    motion, a State's Attorney may file an objection to such a
23    petition along with supporting evidence. If a motion to
24    vacate and expunge is granted, the records shall be
25    expunged in accordance with subparagraphs (d)(8) and
26    (d)(9)(A) of this Section. An agency providing civil legal

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    this Section have been expunged.
2        (7) 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        (8) Effect of Expungement. A person's right to expunge
6    an expungeable offense shall not be limited under this
7    Section. The effect of an order of expungement shall be to
8    restore the person to the status he or she occupied before
9    the arrest, charge, or conviction.
10        (9) Information. The Illinois State Police shall post
11    general information on its website about the expungement
12    or sealing process described in this subsection (j).
13(Source: P.A. 103-35, eff. 1-1-24; 103-154, eff. 6-30-23;
14103-609, eff. 7-1-24; 103-755, eff. 8-2-24; 103-1071, eff.
157-1-25; 104-417, eff. 8-15-25; revised 1-20-26.)
 
16    (Text of Section after amendment by P.A. 104-459)
17    Sec. 5.2. Expungement, sealing, and immediate sealing.
18    (a) General Provisions.
19        (1) Definitions. In this Act, words and phrases have
20    the meanings set forth in this subsection, except when a
21    particular context clearly requires a different meaning.
22            (A) The following terms shall have the meanings
23        ascribed to them in the following Sections of the
24        Unified Code of Corrections:
25                Business Offense, Section 5-1-2.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    may object to the expungement on the grounds that the
2    records contain specific relevant information aside from
3    the mere fact of the arrest.
4        (2) Time frame for filing a petition to expunge.
5            (A) When the arrest or charge not initiated by
6        arrest sought to be expunged resulted in an acquittal,
7        dismissal, the petitioner's release without charging,
8        or the reversal or vacation of a conviction, there is
9        no waiting period to petition for the expungement of
10        such records.
11            (A-5) In anticipation of the successful completion
12        of a problem-solving court, pre-plea diversion, or
13        post-plea diversion program, a petition for
14        expungement may be filed 61 days before the
15        anticipated dismissal of the case or any time
16        thereafter. Upon successful completion of the program
17        and dismissal of the case, the court shall review the
18        petition of the person graduating from the program and
19        shall grant expungement if the petitioner meets all
20        requirements as specified in any applicable statute.
21            (B) When the arrest or charge not initiated by
22        arrest sought to be expunged resulted in an order of
23        supervision, successfully completed by the petitioner,
24        the following time frames will apply:
25                (i) Those arrests or charges that resulted in
26            orders of supervision under Section 3-707, 3-708,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        subparagraph is denied by the court, the time periods
2        under subparagraph (C) shall apply to any subsequent
3        petition for sealing filed by the petitioner.
4        (4) (Blank).
5        (5) Notice of eligibility for sealing. Upon entry of a
6    disposition for an eligible record under this subsection
7    (c), the petitioner shall be informed by the court of the
8    right to have the records sealed and the procedures for
9    the sealing of the records.
10    (d) Procedure. The following procedures apply to
11expungement under subsections (b), (e), and (e-6) and sealing
12under subsections (c) and (e-5):
13        (1) Filing the petition. Upon becoming eligible to
14    petition for the expungement or sealing of records under
15    this Section, the petitioner shall file a petition
16    requesting the expungement or sealing of records with the
17    clerk of the court where the arrests occurred or the
18    charges were brought, or both. If arrests occurred or
19    charges were brought in multiple jurisdictions, a petition
20    must be filed in each such jurisdiction. The petitioner
21    shall pay the applicable fee, except no fee shall be
22    required if the petitioner has obtained a court order
23    waiving fees under Supreme Court Rule 298 or it is
24    otherwise waived.
25        (1.5) County fee waiver pilot program. From August 9,
26    2019 (the effective date of Public Act 101-306) through

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

10400SB3229ham001- 133 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

10400SB3229ham001- 135 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

10400SB3229ham001- 141 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 142 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 143 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 144 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 145 -LRB104 19751 BDA 38627 a

1    the Illinois State Police shall provide the subject of the
2    record written confirmation that the record was sealed
3    under this subsection.
4        (11) An individual may challenge the individual's
5    record and request corrections, including the sealing of
6    records eligible under this subsection, by completing and
7    submitting a record challenge form to the Illinois State
8    Police. The Illinois State Police shall automatically seal
9    all records identified as eligible under this subsection
10    based on the access and review process. The Illinois State
11    Police shall include any records identified as eligible
12    under this process in the next electronic notification of
13    the circuit court in which the case originated. The
14    Illinois State Police shall render a final administrative
15    decision with respect to the record challenge, which shall
16    be subject to administrative appeal procedures established
17    by the Illinois Criminal Justice Information Authority.
18        (12) Nothing in this Section shall be construed to
19    restrict or modify an individual's right to have that
20    individual's records expunged or sealed except as
21    otherwise may be provided in this Act or diminish or
22    abrogate any rights or remedies otherwise available to the
23    individual.
24        (13) The State or the county, or an official or
25    employee of the State or the county acting in the course of
26    the official's or employee's duties, is not liable for an

 

 

10400SB3229ham001- 146 -LRB104 19751 BDA 38627 a

1    injury or loss a person might receive due to an act or
2    omission of a person in the commission of the person's
3    duties under this Act, except for willful, wanton
4    misconduct or gross negligence on the part of the
5    governmental unit or on the part of the official or
6    employee.
7    (l) Municipal ordinance violations and Class C
8misdemeanors. Notwithstanding any other provision of this Act
9to the contrary and cumulative with any rights to expungement
10of criminal records, this subsection requires the sealing of
11criminal records of municipal ordinance violations and Class C
12misdemeanors without petition. Beginning January 1, 2028, and
13on January 1 and July 1 of each year thereafter, circuit court
14clerks shall seal any criminal records of arrests or charges
15not initiated by arrest resulting in charges or convictions
16for municipal ordinance violations or Class C misdemeanors if
17one year has elapsed since the case was closed as designated by
18the Supreme Court.
19(Source: P.A. 103-35, eff. 1-1-24; 103-154, eff. 6-30-23;
20103-609, eff. 7-1-24; 103-755, eff. 8-2-24; 103-1071, eff.
217-1-25; 104-417, eff. 8-15-25; 104-459, eff. 6-1-26; revised
221-20-26.)
 
23    Section 110. The State Finance Act is amended by changing
24Sections 5.890 and 5.916 and adding Section 5.1038 as follows:
 

 

 

10400SB3229ham001- 147 -LRB104 19751 BDA 38627 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
22Article 99, including, but not limited to, any covenant

 

 

10400SB3229ham001- 148 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 149 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 150 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        The exemption under this paragraph (26) applies only
2    if the State agency has made a good faith determination
3    that it is necessary and appropriate for the expenditure
4    to fall within this paragraph (26). The procurement
5    process under this paragraph (26) 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.
10    Nothing in this paragraph (26) authorizes the replacement
11    or diminishment of State responsibilities in hiring or the
12    positions that effectuate that hiring. This paragraph (26)
13    is inoperative on and after June 30, 2029.
14        (27) Procurements necessary for the Department of
15    Healthcare and Family Services to implement changes to the
16    State's Integrated Eligibility System to ensure the
17    system's compliance with federal implementation mandates
18    and deadlines, if the Department of Healthcare and Family
19    Services has made a good faith determination that it is
20    necessary and appropriate for the procurement to fall
21    within this exemption.
22    Notwithstanding any other provision of law, for contracts
23with an annual value of more than $100,000 entered into on or
24after October 1, 2017 under an exemption provided in any
25paragraph of this subsection (b), except paragraph (1), (2),
26or (5), each State agency shall post to the appropriate

 

 

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

 

 

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1of capital costs, the range of operating and maintenance
2costs, or the sequestration costs or monitoring the
3construction of clean coal SNG brownfield facility for the
4full duration of construction.
5    (f) (Blank).
6    (g) (Blank).
7    (h) This Code does not apply to the process to procure or
8contracts entered into in accordance with Sections 11-5.2 and
911-5.3 of the Illinois Public Aid Code.
10    (i) Each chief procurement officer may access records
11necessary to review whether a contract, purchase, or other
12expenditure is or is not subject to the provisions of this
13Code, unless such records would be subject to attorney-client
14privilege.
15    (j) This Code does not apply to the process used by the
16Capital Development Board to retain an artist or work or works
17of art as required in Section 14 of the Capital Development
18Board Act.
19    (k) This Code does not apply to the process to procure
20contracts, or contracts entered into, by the State Board of
21Elections or the State Electoral Board for hearing officers
22appointed pursuant to the Election Code.
23    (l) This Code does not apply to the processes used by the
24Illinois Student Assistance Commission to procure supplies and
25services paid for from the private funds of the Illinois
26Prepaid Tuition Fund. As used in this subsection (l), "private

 

 

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1funds" means funds derived from deposits paid into the
2Illinois Prepaid Tuition Trust Fund and the earnings thereon.
3    (m) This Code shall apply regardless of the source of
4funds with which contracts are paid, including federal
5assistance moneys. Except as specifically provided in this
6Code, this Code shall not apply to procurement expenditures
7necessary for the Department of Public Health to conduct the
8Healthy Illinois Survey in accordance with Section 2310-431 of
9the Department of Public Health Powers and Duties Law of the
10Civil Administrative Code of Illinois.
11(Source: P.A. 103-8, eff. 6-7-23; 103-103, eff. 6-27-23;
12103-570, eff. 1-1-24; 103-580, eff. 12-8-23; 103-594, eff.
136-25-24; 103-605, eff. 7-1-24; 103-865, eff. 1-1-25; 104-2,
14eff. 6-16-25; 104-417, eff. 8-15-25)
 
15    (Text of Section after amendment by P.A. 104-458)
16    Sec. 1-10. Application.
17    (a) This Code applies only to procurements for which
18bidders, offerors, potential contractors, or contractors were
19first solicited on or after July 1, 1998. This Code shall not
20be construed to affect or impair any contract, or any
21provision of a contract, entered into based on a solicitation
22prior to the implementation date of this Code as described in
23Article 99, including, but not limited to, any covenant
24entered into with respect to any revenue bonds or similar
25instruments. All procurements for which contracts are

 

 

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

 

 

10400SB3229ham001- 164 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 165 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 166 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

10400SB3229ham001- 168 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 169 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1to the determination of costs of a clean coal SNG brownfield
2facility, as defined by Section 1-10 of the Illinois Power
3Agency Act, as required in subsection (h-3) of Section 9-220
4of the Public Utilities Act, including calculating the range
5of capital costs, the range of operating and maintenance
6costs, or the sequestration costs or monitoring the
7construction of clean coal SNG brownfield facility for the
8full duration of construction.
9    (f) (Blank).
10    (g) (Blank).
11    (h) This Code does not apply to the process to procure or
12contracts entered into in accordance with Sections 11-5.2 and
1311-5.3 of the Illinois Public Aid Code.
14    (i) Each chief procurement officer may access records
15necessary to review whether a contract, purchase, or other
16expenditure is or is not subject to the provisions of this
17Code, unless such records would be subject to attorney-client
18privilege.
19    (j) This Code does not apply to the process used by the
20Capital Development Board to retain an artist or work or works
21of art as required in Section 14 of the Capital Development
22Board Act.
23    (k) This Code does not apply to the process to procure
24contracts, or contracts entered into, by the State Board of
25Elections or the State Electoral Board for hearing officers
26appointed pursuant to the Election Code.

 

 

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1    (l) This Code does not apply to the processes used by the
2Illinois Student Assistance Commission to procure supplies and
3services paid for from the private funds of the Illinois
4Prepaid Tuition Fund. As used in this subsection (l), "private
5funds" means funds derived from deposits paid into the
6Illinois Prepaid Tuition Trust Fund and the earnings thereon.
7    (m) This Code shall apply regardless of the source of
8funds with which contracts are paid, including federal
9assistance moneys. Except as specifically provided in this
10Code, this Code shall not apply to procurement expenditures
11necessary for the Department of Public Health to conduct the
12Healthy Illinois Survey in accordance with Section 2310-431 of
13the Department of Public Health Powers and Duties Law of the
14Civil Administrative Code of Illinois.
15(Source: P.A. 103-8, eff. 6-7-23; 103-103, eff. 6-27-23;
16103-570, eff. 1-1-24; 103-580, eff. 12-8-23; 103-594, eff.
176-25-24; 103-605, eff. 7-1-24; 103-865, eff. 1-1-25; 104-2,
18eff. 6-16-25; 104-417, eff. 8-15-25; 104-458, eff. 6-1-26;
19revised 1-12-26.)
 
20    Section 120. The Use Tax Act is amended by changing
21Sections 3-5 and 3-10 as follows:
 
22    (35 ILCS 105/3-5)
23    Sec. 3-5. Exemptions. Use, which, on and after January 1,
242025, includes use by a lessee, of the following tangible

 

 

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

 

 

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1    (4) Except as otherwise provided in this Act, personal
2property purchased by a governmental body, by a corporation,
3society, association, foundation, or institution organized and
4operated exclusively for charitable, religious, or educational
5purposes, or by a not-for-profit corporation, society,
6association, foundation, institution, or organization that has
7no compensated officers or employees and that is organized and
8operated primarily for the recreation of persons 55 years of
9age or older. A limited liability company may qualify for the
10exemption under this paragraph only if the limited liability
11company is organized and operated exclusively for educational
12purposes. On and after July 1, 1987, however, no entity
13otherwise eligible for this exemption shall make tax-free
14purchases unless it has an active exemption identification
15number issued by the Department.
16    (5) Until July 1, 2003, a passenger car that is a
17replacement vehicle to the extent that the purchase price of
18the car is subject to the Replacement Vehicle Tax.
19    (6) Until July 1, 2003 and beginning again on September 1,
202004 through August 30, 2014, graphic arts machinery and
21equipment, including repair and replacement parts, both new
22and used, and including that manufactured on special order,
23certified by the purchaser to be used primarily for graphic
24arts production, and including machinery and equipment
25purchased for lease. Equipment includes chemicals or chemicals
26acting as catalysts but only if the chemicals or chemicals

 

 

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1acting as catalysts effect a direct and immediate change upon
2a graphic arts product. Beginning on July 1, 2017, graphic
3arts machinery and equipment is included in the manufacturing
4and assembling machinery and equipment exemption under
5paragraph (18).
6    (7) Farm chemicals.
7    (8) Legal tender, currency, medallions, or gold or silver
8coinage issued by the State of Illinois, the government of the
9United States of America, or the government of any foreign
10country, and bullion.
11    (9) Personal property purchased from a teacher-sponsored
12student organization affiliated with an elementary or
13secondary school located in Illinois.
14    (10) A motor vehicle that is used for automobile renting,
15as defined in the Automobile Renting Occupation and Use Tax
16Act.
17    (11) Farm machinery and equipment, both new and used,
18including that manufactured on special order, certified by the
19purchaser to be used primarily for production agriculture or
20State or federal agricultural programs, including individual
21replacement parts for the machinery and equipment, including
22machinery and equipment purchased for lease, and including
23implements of husbandry defined in Section 1-130 of the
24Illinois Vehicle Code, farm machinery and agricultural
25chemical and fertilizer spreaders, and nurse wagons required
26to be registered under Section 3-809 of the Illinois Vehicle

 

 

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

 

 

10400SB3229ham001- 182 -LRB104 19751 BDA 38627 a

1primarily for production agriculture.
2    This item (11) is exempt from the provisions of Section
33-90.
4    (12) Until June 30, 2013, fuel and petroleum products sold
5to or used by an air common carrier, certified by the carrier
6to be used for consumption, shipment, or storage in the
7conduct of its business as an air common carrier, for a flight
8destined for or returning from a location or locations outside
9the United States without regard to previous or subsequent
10domestic stopovers.
11    Beginning July 1, 2013, fuel and petroleum products sold
12to or used by an air carrier, certified by the carrier to be
13used for consumption, shipment, or storage in the conduct of
14its business as an air common carrier, for a flight that (i) is
15engaged in foreign trade or is engaged in trade between the
16United States and any of its possessions and (ii) transports
17at least one individual or package for hire from the city of
18origination to the city of final destination on the same
19aircraft, without regard to a change in the flight number of
20that aircraft.
21    (13) Proceeds of mandatory service charges separately
22stated on customers' bills for the purchase and consumption of
23food and beverages purchased at retail from a retailer, to the
24extent that the proceeds of the service charge are in fact
25turned over as tips or as a substitute for tips to the
26employees who participate directly in preparing, serving,

 

 

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1hosting or cleaning up the food or beverage function with
2respect to which the service charge is imposed.
3    (14) Until July 1, 2003, oil field exploration, drilling,
4and production equipment, including (i) rigs and parts of
5rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
6pipe and tubular goods, including casing and drill strings,
7(iii) pumps and pump-jack units, (iv) storage tanks and flow
8lines, (v) any individual replacement part for oil field
9exploration, drilling, and production equipment, and (vi)
10machinery and equipment purchased for lease; but excluding
11motor vehicles required to be registered under the Illinois
12Vehicle Code.
13    (15) Photoprocessing machinery and equipment, including
14repair and replacement parts, both new and used, including
15that manufactured on special order, certified by the purchaser
16to be used primarily for photoprocessing, and including
17photoprocessing machinery and equipment purchased for lease.
18    (16) Until July 1, 2028, coal and aggregate exploration,
19mining, off-highway hauling, processing, maintenance, and
20reclamation equipment, including replacement parts and
21equipment, and including equipment purchased for lease, but
22excluding motor vehicles required to be registered under the
23Illinois Vehicle Code. The changes made to this Section by
24Public Act 97-767 apply on and after July 1, 2003, but no claim
25for credit or refund is allowed on or after August 16, 2013
26(the effective date of Public Act 98-456) for such taxes paid

 

 

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1during the period beginning July 1, 2003 and ending on August
216, 2013 (the effective date of Public Act 98-456).
3    (17) Until July 1, 2003, distillation machinery and
4equipment, sold as a unit or kit, assembled or installed by the
5retailer, certified by the user to be used only for the
6production of ethyl alcohol that will be used for consumption
7as motor fuel or as a component of motor fuel for the personal
8use of the user, and not subject to sale or resale.
9    (18) Manufacturing and assembling machinery and equipment
10used primarily in the process of manufacturing or assembling
11tangible personal property for wholesale or retail sale or
12lease, whether that sale or lease is made directly by the
13manufacturer or by some other person, whether the materials
14used in the process are owned by the manufacturer or some other
15person, or whether that sale or lease is made apart from or as
16an incident to the seller's engaging in the service occupation
17of producing machines, tools, dies, jigs, patterns, gauges, or
18other similar items of no commercial value on special order
19for a particular purchaser. The exemption provided by this
20paragraph (18) includes production related tangible personal
21property, as defined in Section 3-50, purchased on or after
22July 1, 2019. The exemption provided by this paragraph (18)
23does not include machinery and equipment used in (i) the
24generation of electricity for wholesale or retail sale; (ii)
25the generation or treatment of natural or artificial gas for
26wholesale or retail sale that is delivered to customers

 

 

10400SB3229ham001- 185 -LRB104 19751 BDA 38627 a

1through pipes, pipelines, or mains; or (iii) the treatment of
2water for wholesale or retail sale that is delivered to
3customers through pipes, pipelines, or mains. The provisions
4of Public Act 98-583 are declaratory of existing law as to the
5meaning and scope of this exemption. Beginning on July 1,
62017, the exemption provided by this paragraph (18) includes,
7but is not limited to, graphic arts machinery and equipment,
8as defined in paragraph (6) of this Section.
9    (19) Personal property delivered to a purchaser or
10purchaser's donee inside Illinois when the purchase order for
11that personal property was received by a florist located
12outside Illinois who has a florist located inside Illinois
13deliver the personal property.
14    (20) Semen used for artificial insemination of livestock
15for direct agricultural production.
16    (21) Horses, or interests in horses, registered with and
17meeting the requirements of any of the Arabian Horse Club
18Registry of America, Appaloosa Horse Club, American Quarter
19Horse Association, United States Trotting Association, or
20Jockey Club, as appropriate, used for purposes of breeding or
21racing for prizes. This item (21) is exempt from the
22provisions of Section 3-90, and the exemption provided for
23under this item (21) applies for all periods beginning May 30,
241995, but no claim for credit or refund is allowed on or after
25January 1, 2008 for such taxes paid during the period
26beginning May 30, 2000 and ending on January 1, 2008.

 

 

10400SB3229ham001- 186 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

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1number by the Department that assists victims of the disaster
2who reside within the declared disaster area.
3    (25) Beginning with taxable years ending on or after
4December 31, 1995 and ending with taxable years ending on or
5before December 31, 2004, personal property that is used in
6the performance of infrastructure repairs in this State,
7including, but not limited to, municipal roads and streets,
8access roads, bridges, sidewalks, waste disposal systems,
9water and sewer line extensions, water distribution and
10purification facilities, storm water drainage and retention
11facilities, and sewage treatment facilities, resulting from a
12State or federally declared disaster in Illinois or bordering
13Illinois when such repairs are initiated on facilities located
14in the declared disaster area within 6 months after the
15disaster.
16    (26) Beginning July 1, 1999, game or game birds purchased
17at a "game breeding and hunting preserve area" as that term is
18used in the Wildlife Code. This paragraph is exempt from the
19provisions of Section 3-90.
20    (27) A motor vehicle, as that term is defined in Section
211-146 of the Illinois Vehicle Code, that is donated to a
22corporation, limited liability company, society, association,
23foundation, or institution that is determined by the
24Department to be organized and operated exclusively for
25educational purposes. For purposes of this exemption, "a
26corporation, limited liability company, society, association,

 

 

10400SB3229ham001- 189 -LRB104 19751 BDA 38627 a

1foundation, or institution organized and operated exclusively
2for educational purposes" means all tax-supported public
3schools, private schools that offer systematic instruction in
4useful branches of learning by methods common to public
5schools and that compare favorably in their scope and
6intensity with the course of study presented in tax-supported
7schools, and vocational or technical schools or institutes
8organized and operated exclusively to provide a course of
9study of not less than 6 weeks duration and designed to prepare
10individuals to follow a trade or to pursue a manual,
11technical, mechanical, industrial, business, or commercial
12occupation.
13    (28) Beginning January 1, 2000, personal property,
14including food, purchased through fundraising events for the
15benefit of a public or private elementary or secondary school,
16a group of those schools, or one or more school districts if
17the events are sponsored by an entity recognized by the school
18district that consists primarily of volunteers and includes
19parents and teachers of the school children. This paragraph
20does not apply to fundraising events (i) for the benefit of
21private home instruction or (ii) for which the fundraising
22entity purchases the personal property sold at the events from
23another individual or entity that sold the property for the
24purpose of resale by the fundraising entity and that profits
25from the sale to the fundraising entity. This paragraph is
26exempt from the provisions of Section 3-90.

 

 

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1    (29) Beginning January 1, 2000 and through December 31,
22001, new or used automatic vending machines that prepare and
3serve hot food and beverages, including coffee, soup, and
4other items, and replacement parts for these machines.
5Beginning January 1, 2002 and through June 30, 2003, machines
6and parts for machines used in commercial, coin-operated
7amusement and vending business if a use or occupation tax is
8paid on the gross receipts derived from the use of the
9commercial, coin-operated amusement and vending machines. This
10paragraph is exempt from the provisions of Section 3-90.
11    (30) Beginning January 1, 2001 and through June 30, 2016,
12food for human consumption that is to be consumed off the
13premises where it is sold (other than alcoholic beverages,
14soft drinks, and food that has been prepared for immediate
15consumption) and prescription and nonprescription medicines,
16drugs, medical appliances, and insulin, urine testing
17materials, syringes, and needles used by diabetics, for human
18use, when purchased for use by a person receiving medical
19assistance under Article V of the Illinois Public Aid Code who
20resides in a licensed long-term care facility, as defined in
21the Nursing Home Care Act, or in a licensed facility as defined
22in the ID/DD Community Care Act, the MC/DD Act, or the
23Specialized Mental Health Rehabilitation Act of 2013.
24    (31) Beginning on August 2, 2001 (the effective date of
25Public Act 92-227), computers and communications equipment
26utilized for any hospital purpose and equipment used in the

 

 

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

 

 

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

 

 

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1vehicle weight rating in excess of 8,000 pounds; (ii) that are
2subject to the commercial distribution fee imposed under
3Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
4are primarily used for commercial purposes. Through June 30,
52005, this exemption applies to repair and replacement parts
6added after the initial purchase of such a motor vehicle if
7that motor vehicle is used in a manner that would qualify for
8the rolling stock exemption otherwise provided for in this
9Act. For purposes of this paragraph, the term "used for
10commercial purposes" means the transportation of persons or
11property in furtherance of any commercial or industrial
12enterprise, whether for-hire or not.
13    (34) Beginning January 1, 2008, tangible personal property
14used in the construction or maintenance of a community water
15supply, as defined under Section 3.145 of the Environmental
16Protection Act, that is operated by a not-for-profit
17corporation that holds a valid water supply permit issued
18under Title IV of the Environmental Protection Act. This
19paragraph is exempt from the provisions of Section 3-90.
20    (35) Beginning January 1, 2010 and continuing through
21December 31, 2029, materials, parts, equipment, components,
22and furnishings incorporated into or upon an aircraft as part
23of the modification, refurbishment, completion, replacement,
24repair, or maintenance of the aircraft. This exemption
25includes consumable supplies used in the modification,
26refurbishment, completion, replacement, repair, and

 

 

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1maintenance of aircraft. However, until January 1, 2024, this
2exemption excludes any materials, parts, equipment,
3components, and consumable supplies used in the modification,
4replacement, repair, and maintenance of aircraft engines or
5power plants, whether such engines or power plants are
6installed or uninstalled upon any such aircraft. "Consumable
7supplies" include, but are not limited to, adhesive, tape,
8sandpaper, general purpose lubricants, cleaning solution,
9latex gloves, and protective films.
10    Beginning January 1, 2010 and continuing through December
1131, 2023, this exemption applies only to the use of qualifying
12tangible personal property by persons who modify, refurbish,
13complete, repair, replace, or maintain aircraft and who (i)
14hold an Air Agency Certificate and are empowered to operate an
15approved repair station by the Federal Aviation
16Administration, (ii) have a Class IV Rating, and (iii) conduct
17operations in accordance with Part 145 of the Federal Aviation
18Regulations. From January 1, 2024 through December 31, 2029,
19this exemption applies only to the use of qualifying tangible
20personal property by: (A) persons who modify, refurbish,
21complete, repair, replace, or maintain aircraft and who (i)
22hold an Air Agency Certificate and are empowered to operate an
23approved repair station by the Federal Aviation
24Administration, (ii) have a Class IV Rating, and (iii) conduct
25operations in accordance with Part 145 of the Federal Aviation
26Regulations; and (B) persons who engage in the modification,

 

 

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1replacement, repair, and maintenance of aircraft engines or
2power plants without regard to whether or not those persons
3meet the qualifications of item (A).
4    The exemption does not include aircraft operated by a
5commercial air carrier providing scheduled passenger air
6service pursuant to authority issued under Part 121 or Part
7129 of the Federal Aviation Regulations. The changes made to
8this paragraph (35) by Public Act 98-534 are declarative of
9existing law. It is the intent of the General Assembly that the
10exemption under this paragraph (35) applies continuously from
11January 1, 2010 through December 31, 2024; however, no claim
12for credit or refund is allowed for taxes paid as a result of
13the disallowance of this exemption on or after January 1, 2015
14and prior to February 5, 2020 (the effective date of Public Act
15101-629).
16    (36) Tangible personal property purchased by a
17public-facilities corporation, as described in Section
1811-65-10 of the Illinois Municipal Code, for purposes of
19constructing or furnishing a municipal convention hall, but
20only if the legal title to the municipal convention hall is
21transferred to the municipality without any further
22consideration by or on behalf of the municipality at the time
23of the completion of the municipal convention hall or upon the
24retirement or redemption of any bonds or other debt
25instruments issued by the public-facilities corporation in
26connection with the development of the municipal convention

 

 

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1hall. This exemption includes existing public-facilities
2corporations as provided in Section 11-65-25 of the Illinois
3Municipal Code. This paragraph is exempt from the provisions
4of Section 3-90.
5    (37) Beginning January 1, 2017 and through December 31,
62026, menstrual pads, tampons, and menstrual cups.
7    (38) Merchandise that is subject to the Rental Purchase
8Agreement Occupation and Use Tax. The purchaser must certify
9that the item is purchased to be rented subject to a
10rental-purchase agreement, as defined in the Rental-Purchase
11Agreement Act, and provide proof of registration under the
12Rental Purchase Agreement Occupation and Use Tax Act. This
13paragraph is exempt from the provisions of Section 3-90.
14    (39) Tangible personal property purchased by a purchaser
15who is exempt from the tax imposed by this Act by operation of
16federal law. This paragraph is exempt from the provisions of
17Section 3-90.
18    (40) Qualified tangible personal property used in the
19construction or operation of a data center that has been
20granted a certificate of exemption by the Department of
21Commerce and Economic Opportunity, whether that tangible
22personal property is purchased by the owner, operator, or
23tenant of the data center or by a contractor or subcontractor
24of the owner, operator, or tenant. Data centers that would
25have qualified for a certificate of exemption prior to January
261, 2020 had Public Act 101-31 been in effect may apply for and

 

 

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1obtain an exemption for subsequent purchases of computer
2equipment or enabling software purchased or leased to upgrade,
3supplement, or replace computer equipment or enabling software
4purchased or leased in the original investment that would have
5qualified.
6    The Department of Commerce and Economic Opportunity shall
7grant a certificate of exemption under this item (40) to
8qualified data centers as defined by Section 605-1025 of the
9Department of Commerce and Economic Opportunity Law of the
10Civil Administrative Code of Illinois.
11    For the purposes of this item (40):
12        "Data center" means a building or a series of
13    buildings rehabilitated or constructed to house working
14    servers in one physical location or multiple sites within
15    the State of Illinois.
16        "Qualified tangible personal property" means:
17    electrical systems and equipment; climate control and
18    chilling equipment and systems; mechanical systems and
19    equipment; monitoring and secure systems; emergency
20    generators; hardware; computers; servers; data storage
21    devices; network connectivity equipment; racks; cabinets;
22    telecommunications cabling infrastructure; raised floor
23    systems; peripheral components or systems; software;
24    mechanical, electrical, or plumbing systems; battery
25    systems; cooling systems and towers; temperature control
26    systems; other cabling; and other data center

 

 

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1    infrastructure equipment and systems necessary to operate
2    qualified tangible personal property, including fixtures;
3    and component parts of any of the foregoing, including
4    installation, maintenance, repair, refurbishment, and
5    replacement of qualified tangible personal property to
6    generate, transform, transmit, distribute, or manage
7    electricity necessary to operate qualified tangible
8    personal property; and all other tangible personal
9    property that is essential to the operations of a computer
10    data center. The term "qualified tangible personal
11    property" also includes building materials physically
12    incorporated into the qualifying data center. To document
13    the exemption allowed under this Section, the retailer
14    must obtain from the purchaser a copy of the certificate
15    of eligibility issued by the Department of Commerce and
16    Economic Opportunity.
17    This item (40) is exempt from the provisions of Section
183-90.
19    (41) Beginning July 1, 2022, breast pumps, breast pump
20collection and storage supplies, and breast pump kits. This
21item (41) is exempt from the provisions of Section 3-90. As
22used in this item (41):
23        "Breast pump" means an electrically controlled or
24    manually controlled pump device designed or marketed to be
25    used to express milk from a human breast during lactation,
26    including the pump device and any battery, AC adapter, or

 

 

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

 

 

10400SB3229ham001- 200 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 201 -LRB104 19751 BDA 38627 a

1    (44) Beginning July 1, 2024, home-delivered meals provided
2to Medicare or Medicaid recipients when payment is made by an
3intermediary, such as a Medicare Administrative Contractor, a
4Managed Care Organization, or a Medicare Advantage
5Organization, pursuant to a government contract. This item
6(44) is exempt from the provisions of Section 3-90.
7    (45) Beginning on January 1, 2026, as further defined in
8Section 3-10, food for human consumption that is to be
9consumed off the premises where it is sold (other than
10alcoholic beverages, food consisting of or infused with adult
11use cannabis, soft drinks, candy, and food that has been
12prepared for immediate consumption, and, beginning on November
1312, 2026, food that is a final consumer hemp cannabinoid
14product as defined in the Illinois Hemp Act). This item (45) is
15exempt from the provisions of Section 3-90.
16    (46) Use by the lessee of the following leased tangible
17personal property:
18        (1) software transferred subject to a license that
19    meets the following requirements:
20            (A) it is evidenced by a written agreement signed
21        by the licensor and the customer;
22                (i) an electronic agreement in which the
23            customer accepts the license by means of an
24            electronic signature that is verifiable and can be
25            authenticated and is attached to or made part of
26            the license will comply with this requirement;

 

 

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

 

 

10400SB3229ham001- 203 -LRB104 19751 BDA 38627 a

1(Source: P.A. 103-9, Article 5, Section 5-5, eff. 6-7-23;
2103-9, Article 15, Section 15-5, eff. 6-7-23; 103-154, eff.
36-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,
4eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;
5103-781, eff. 8-5-24; 104-417, eff. 8-15-25.)
 
6    (35 ILCS 105/3-10)  from Ch. 120, par. 439.33-10
7    Sec. 3-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9either the selling price or the fair market value, if any, of
10the tangible personal property, which, on and after January 1,
112025, includes leases of tangible personal property. In all
12cases where property functionally used or consumed is the same
13as the property that was purchased at retail, then the tax is
14imposed on the selling price of the property. In all cases
15where property functionally used or consumed is a by-product
16or waste product that has been refined, manufactured, or
17produced from property purchased at retail, then the tax is
18imposed on the lower of the fair market value, if any, of the
19specific property so used in this State or on the selling price
20of the property purchased at retail. For purposes of this
21Section "fair market value" means the price at which property
22would change hands between a willing buyer and a willing
23seller, neither being under any compulsion to buy or sell and
24both having reasonable knowledge of the relevant facts. The
25fair market value shall be established by Illinois sales by

 

 

10400SB3229ham001- 204 -LRB104 19751 BDA 38627 a

1the taxpayer of the same property as that functionally used or
2consumed, or if there are no such sales by the taxpayer, then
3comparable sales or purchases of property of like kind and
4character in Illinois.
5    Beginning on July 1, 2000 and through December 31, 2000,
6with respect to motor fuel, as defined in Section 1.1 of the
7Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8the Use Tax Act, the tax is imposed at the rate of 1.25%.
9    Beginning on August 6, 2010 through August 15, 2010, and
10beginning again on August 5, 2022 through August 14, 2022,
11with respect to sales tax holiday items as defined in Section
123-6 of this Act, the tax is imposed at the rate of 1.25%.
13    With respect to gasohol, the tax imposed by this Act
14applies to (i) 70% of the proceeds of sales made on or after
15January 1, 1990, and before July 1, 2003, (ii) 80% of the
16proceeds of sales made on or after July 1, 2003 and on or
17before July 1, 2017, (iii) 100% of the proceeds of sales made
18after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
19the proceeds of sales made on or after January 1, 2024 and on
20or before December 31, 2028, and (v) 100% of the proceeds of
21sales made after December 31, 2028. If, at any time, however,
22the tax under this Act on sales of gasohol is imposed at the
23rate of 1.25%, then the tax imposed by this Act applies to 100%
24of the proceeds of sales of gasohol made during that time.
25    With respect to mid-range ethanol blends, the tax imposed
26by this Act applies to (i) 80% of the proceeds of sales made on

 

 

10400SB3229ham001- 205 -LRB104 19751 BDA 38627 a

1or after January 1, 2024 and on or before December 31, 2028 and
2(ii) 100% of the proceeds of sales made thereafter. If, at any
3time, 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 proceeds of sales of
6mid-range ethanol blends made during that time.
7    With respect to majority blended ethanol fuel, the tax
8imposed by this Act does not apply to the proceeds of sales
9made on or after July 1, 2003 and on or before December 31,
102028 but applies to 100% of the proceeds of sales made
11thereafter.
12    With respect to biodiesel blends with no less than 1% and
13no more than 10% biodiesel, the tax imposed by this Act applies
14to (i) 80% of the proceeds of sales made on or after July 1,
152003 and on or before December 31, 2018 and (ii) 100% of the
16proceeds of sales made after December 31, 2018 and before
17January 1, 2024. On and after January 1, 2024 and on or before
18December 31, 2030, the taxation of biodiesel, renewable
19diesel, and biodiesel blends shall be as provided in Section
203-5.1. If, at any time, however, the tax under this Act on
21sales of biodiesel blends with no less than 1% and no more than
2210% biodiesel is imposed at the rate of 1.25%, then the tax
23imposed by this Act applies to 100% of the proceeds of sales of
24biodiesel blends with no less than 1% and no more than 10%
25biodiesel made during that time.
26    With respect to biodiesel and biodiesel blends with more

 

 

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1than 10% but no more than 99% biodiesel, the tax imposed by
2this Act does not apply to the proceeds of sales made on or
3after July 1, 2003 and on or before December 31, 2023. On and
4after January 1, 2024 and on or before December 31, 2030, the
5taxation of biodiesel, renewable diesel, and biodiesel blends
6shall be as provided in Section 3-5.1.
7    Until July 1, 2022 and from July 1, 2023 through December
831, 2025, with respect to food for human consumption that is to
9be consumed off the premises where it is sold (other than
10alcoholic beverages, food consisting of or infused with adult
11use cannabis, soft drinks, and food that has been prepared for
12immediate consumption, and, beginning on November 12, 2026,
13food that is a final consumer hemp cannabinoid product as
14defined in the Illinois Hemp Act), the tax is imposed at the
15rate of 1%. Beginning on July 1, 2022 and until July 1, 2023,
16with respect to food for human consumption that is to be
17consumed off the premises where it is sold (other than
18alcoholic beverages, food consisting of or infused with adult
19use cannabis, soft drinks, and food that has been prepared for
20immediate consumption), the tax is imposed at the rate of 0%.
21On and after January 1, 2026, food for human consumption that
22is to be consumed off the premises where it is sold (other than
23alcoholic beverages, food consisting of or infused with adult
24use cannabis, soft drinks, candy, and food that has been
25prepared for immediate consumption) is exempt from the tax
26imposed by this Act.

 

 

10400SB3229ham001- 207 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

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

 

 

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1license, as these terms are defined under the Cannabis
2Regulation and Tax Act.    
3    Beginning on the November 12, 2026, "prescription and
4nonprescription medicines and drugs" does not include a final
5consumer hemp cannabinoid product as defined in the Illinois
6Hemp Act.    
7    As used in this Section, "adult use cannabis" means
8cannabis subject to tax under the Cannabis Cultivation
9Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
10and does not include cannabis subject to tax under the
11Compassionate Use of Medical Cannabis Program Act.
12    Beginning 90 days after the effective date of this
13amendatory Act of the 104th General Assembly, as used in this
14Section, "adult use cannabis" does not include 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.    
21    If the property that is purchased at retail from a
22retailer is acquired outside Illinois and used outside
23Illinois before being brought to Illinois for use here and is
24taxable under this Act, the "selling price" on which the tax is
25computed shall be reduced by an amount that represents a
26reasonable allowance for depreciation for the period of prior

 

 

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1out-of-state use. No depreciation is allowed in cases where
2the tax under this Act is imposed on lease receipts.
3(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
4103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-417, eff.
58-15-25.)
 
6    Section 125. The Service Use Tax Act is amended by
7changing Sections 3-5 and 3-10 as follows:
 
8    (35 ILCS 110/3-5)
9    Sec. 3-5. Exemptions. Use of the following tangible
10personal property is exempt from the tax imposed by this Act:
11    (1) Personal property purchased from a corporation,
12society, association, foundation, institution, or
13organization, other than a limited liability company, that is
14organized and operated as a not-for-profit service enterprise
15for the benefit of persons 65 years of age or older if the
16personal property was not purchased by the enterprise for the
17purpose of resale by the enterprise.
18    (2) Personal property purchased by a non-profit Illinois
19county fair association for use in conducting, operating, or
20promoting the county fair.
21    (3) Personal property purchased by a not-for-profit arts
22or cultural organization that establishes, by proof required
23by the Department by rule, that it has received an exemption
24under Section 501(c)(3) of the Internal Revenue Code and that

 

 

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1is organized and operated primarily for the presentation or
2support of arts or cultural programming, activities, or
3services. These organizations include, but are not limited to,
4music and dramatic arts organizations such as symphony
5orchestras and theatrical groups, arts and cultural service
6organizations, local arts councils, visual arts organizations,
7and media arts organizations. On and after July 1, 2001 (the
8effective date of Public Act 92-35), however, an entity
9otherwise eligible for this exemption shall not make tax-free
10purchases unless it has an active identification number issued
11by the Department.
12    (4) Legal tender, currency, medallions, or gold or silver
13coinage issued by the State of Illinois, the government of the
14United States of America, or the government of any foreign
15country, and bullion.
16    (5) Until July 1, 2003 and beginning again on September 1,
172004 through August 30, 2014, graphic arts machinery and
18equipment, including repair and replacement parts, both new
19and used, and including that manufactured on special order or
20purchased for lease, certified by the purchaser to be used
21primarily for graphic arts production. Equipment includes
22chemicals or chemicals acting as catalysts but only if the
23chemicals or chemicals acting as catalysts effect a direct and
24immediate change upon a graphic arts product. Beginning on
25July 1, 2017, graphic arts machinery and equipment is included
26in the manufacturing and assembling machinery and equipment

 

 

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1exemption under Section 2 of this Act.
2    (6) Personal property purchased from a teacher-sponsored
3student organization affiliated with an elementary or
4secondary school located in Illinois.
5    (7) Farm machinery and equipment, both new and used,
6including that manufactured on special order, certified by the
7purchaser to be used primarily for production agriculture or
8State or federal agricultural programs, including individual
9replacement parts for the machinery and equipment, including
10machinery and equipment purchased for lease, and including
11implements of husbandry defined in Section 1-130 of the
12Illinois Vehicle Code, farm machinery and agricultural
13chemical and fertilizer spreaders, and nurse wagons required
14to be registered under Section 3-809 of the Illinois Vehicle
15Code, but excluding other motor vehicles required to be
16registered under the Illinois Vehicle Code. Horticultural
17polyhouses or hoop houses used for propagating, growing, or
18overwintering plants shall be considered farm machinery and
19equipment under this item (7). Agricultural chemical tender
20tanks and dry boxes shall include units sold separately from a
21motor vehicle required to be licensed and units sold mounted
22on a motor vehicle required to be licensed if the selling price
23of the tender is separately stated.
24    Farm machinery and equipment shall include precision
25farming equipment that is installed or purchased to be
26installed on farm machinery and equipment, including, but not

 

 

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1limited to, tractors, harvesters, sprayers, planters, seeders,
2or spreaders. Precision farming equipment includes, but is not
3limited to, soil testing sensors, computers, monitors,
4software, global positioning and mapping systems, and other
5such equipment.
6    Farm machinery and equipment also includes computers,
7sensors, software, and related equipment used primarily in the
8computer-assisted operation of production agriculture
9facilities, equipment, and activities such as, but not limited
10to, the collection, monitoring, and correlation of animal and
11crop data for the purpose of formulating animal diets and
12agricultural chemicals.
13    Beginning on January 1, 2024, farm machinery and equipment
14also includes electrical power generation equipment used
15primarily for production agriculture.
16    This item (7) is exempt from the provisions of Section
173-75.
18    (8) Until June 30, 2013, fuel and petroleum products sold
19to or used by an air common carrier, certified by the carrier
20to be used for consumption, shipment, or storage in the
21conduct of its business as an air common carrier, for a flight
22destined for or returning from a location or locations outside
23the United States without regard to previous or subsequent
24domestic stopovers.
25    Beginning July 1, 2013, fuel and petroleum products sold
26to or used by an air carrier, certified by the carrier to be

 

 

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

 

 

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1Vehicle Code.
2    (11) Proceeds from the sale of photoprocessing machinery
3and equipment, including repair and replacement parts, both
4new and used, including that manufactured on special order,
5certified by the purchaser to be used primarily for
6photoprocessing, and including photoprocessing machinery and
7equipment purchased for lease.
8    (12) Until July 1, 2028, coal and aggregate exploration,
9mining, off-highway hauling, processing, maintenance, and
10reclamation equipment, including replacement parts and
11equipment, and including equipment purchased for lease, but
12excluding motor vehicles required to be registered under the
13Illinois Vehicle Code. The changes made to this Section by
14Public Act 97-767 apply on and after July 1, 2003, but no claim
15for credit or refund is allowed on or after August 16, 2013
16(the effective date of Public Act 98-456) for such taxes paid
17during the period beginning July 1, 2003 and ending on August
1816, 2013 (the effective date of Public Act 98-456).
19    (13) Semen used for artificial insemination of livestock
20for direct agricultural production.
21    (14) Horses, or interests in horses, registered with and
22meeting the requirements of any of the Arabian Horse Club
23Registry of America, Appaloosa Horse Club, American Quarter
24Horse Association, United States Trotting Association, or
25Jockey Club, as appropriate, used for purposes of breeding or
26racing for prizes. This item (14) is exempt from the

 

 

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1provisions of Section 3-75, and the exemption provided for
2under this item (14) applies for all periods beginning May 30,
31995, but no claim for credit or refund is allowed on or after
4January 1, 2008 (the effective date of Public Act 95-88) for
5such taxes paid during the period beginning May 30, 2000 and
6ending on January 1, 2008 (the effective date of Public Act
795-88).
8    (15) Computers and communications equipment utilized for
9any hospital purpose and equipment used in the diagnosis,
10analysis, or treatment of hospital patients purchased by a
11lessor who leases the equipment, under a lease of one year or
12longer executed or in effect at the time the lessor would
13otherwise be subject to the tax imposed by this Act, to a
14hospital that has been issued an active tax exemption
15identification number by the Department under Section 1g of
16the Retailers' Occupation Tax Act. If the equipment is leased
17in a manner that does not qualify for this exemption or is used
18in any other non-exempt manner, the lessor shall be liable for
19the tax imposed under this Act or the Use Tax Act, as the case
20may be, based on the fair market value of the property at the
21time the non-qualifying use occurs. No lessor shall collect or
22attempt to collect an amount (however designated) that
23purports to reimburse that lessor for the tax imposed by this
24Act or the Use Tax Act, as the case may be, if the tax has not
25been paid by the lessor. If a lessor improperly collects any
26such amount from the lessee, the lessee shall have a legal

 

 

10400SB3229ham001- 218 -LRB104 19751 BDA 38627 a

1right to claim a refund of that amount from the lessor. If,
2however, that amount is not refunded to the lessee for any
3reason, the lessor is liable to pay that amount to the
4Department.
5    (16) Personal property purchased by a lessor who leases
6the property, under a lease of one year or longer executed or
7in effect at the time the lessor would otherwise be subject to
8the tax imposed by this Act, to a governmental body that has
9been issued an active tax exemption identification number by
10the Department under Section 1g of the Retailers' Occupation
11Tax Act. If the property is leased in a manner that does not
12qualify for this exemption or is used in any other non-exempt
13manner, the lessor shall be liable for the tax imposed under
14this Act or the Use Tax Act, as the case may be, based on the
15fair market value of the property at the time the
16non-qualifying 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.
25    (17) Beginning with taxable years ending on or after
26December 31, 1995 and ending with taxable years ending on or

 

 

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

 

 

10400SB3229ham001- 220 -LRB104 19751 BDA 38627 a

11-146 of the Illinois Vehicle Code, that is donated to a
2corporation, limited liability company, society, association,
3foundation, or institution that is determined by the
4Department to be organized and operated exclusively for
5educational purposes. For purposes of this exemption, "a
6corporation, limited liability company, society, association,
7foundation, or institution organized and operated exclusively
8for educational purposes" means all tax-supported public
9schools, private schools that offer systematic instruction in
10useful branches of learning by methods common to public
11schools and that compare favorably in their scope and
12intensity with the course of study presented in tax-supported
13schools, and vocational or technical schools or institutes
14organized and operated exclusively to provide a course of
15study of not less than 6 weeks duration and designed to prepare
16individuals to follow a trade or to pursue a manual,
17technical, mechanical, industrial, business, or commercial
18occupation.
19    (21) Beginning January 1, 2000, personal property,
20including food, purchased through fundraising events for the
21benefit of a public or private elementary or secondary school,
22a group of those schools, or one or more school districts if
23the events are sponsored by an entity recognized by the school
24district that consists primarily of volunteers and includes
25parents and teachers of the school children. This paragraph
26does not apply to fundraising events (i) for the benefit of

 

 

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1private home instruction or (ii) for which the fundraising
2entity purchases the personal property sold at the events from
3another individual or entity that sold the property for the
4purpose of resale by the fundraising entity and that profits
5from the sale to the fundraising entity. This paragraph is
6exempt from the provisions of Section 3-75.
7    (22) Beginning January 1, 2000 and through December 31,
82001, new or used automatic vending machines that prepare and
9serve hot food and beverages, including coffee, soup, and
10other items, and replacement parts for these machines.
11Beginning January 1, 2002 and through June 30, 2003, machines
12and parts for machines used in commercial, coin-operated
13amusement and vending business if a use or occupation tax is
14paid on the gross receipts derived from the use of the
15commercial, coin-operated amusement and vending machines. This
16paragraph is exempt from the provisions of Section 3-75.
17    (23) Beginning August 23, 2001 and through June 30, 2016,
18food for human consumption that is to be consumed off the
19premises where it is sold (other than alcoholic beverages,
20soft drinks, and food that has been prepared for immediate
21consumption) and prescription and nonprescription medicines,
22drugs, medical appliances, and insulin, urine testing
23materials, syringes, and needles used by diabetics, for human
24use, when purchased for use by a person receiving medical
25assistance under Article V of the Illinois Public Aid Code who
26resides in a licensed long-term care facility, as defined in

 

 

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

 

 

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

 

 

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1supply, as defined under Section 3.145 of the Environmental
2Protection Act, that is operated by a not-for-profit
3corporation that holds a valid water supply permit issued
4under Title IV of the Environmental Protection Act. This
5paragraph is exempt from the provisions of Section 3-75.
6    (27) Beginning January 1, 2010 and continuing through
7December 31, 2029, materials, parts, equipment, components,
8and furnishings incorporated into or upon an aircraft as part
9of the modification, refurbishment, completion, replacement,
10repair, or maintenance of the aircraft. This exemption
11includes consumable supplies used in the modification,
12refurbishment, completion, replacement, repair, and
13maintenance of aircraft. However, until January 1, 2024, this
14exemption excludes any materials, parts, equipment,
15components, and consumable supplies used in the modification,
16replacement, repair, and maintenance of aircraft engines or
17power plants, whether such engines or power plants are
18installed or uninstalled upon any such aircraft. "Consumable
19supplies" include, but are not limited to, adhesive, tape,
20sandpaper, general purpose lubricants, cleaning solution,
21latex gloves, and protective films.
22    Beginning January 1, 2010 and continuing through December
2331, 2023, this exemption applies only to the use of qualifying
24tangible personal property transferred incident to the
25modification, refurbishment, completion, replacement, repair,
26or maintenance of aircraft by persons who (i) hold an Air

 

 

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1Agency Certificate and are empowered to operate an approved
2repair station by the Federal Aviation Administration, (ii)
3have a Class IV Rating, and (iii) conduct operations in
4accordance with Part 145 of the Federal Aviation Regulations.
5From January 1, 2024 through December 31, 2029, this exemption
6applies only to the use of qualifying tangible personal
7property transferred incident to: (A) the modification,
8refurbishment, completion, repair, replacement, or maintenance
9of an aircraft by persons who (i) hold an Air Agency
10Certificate and are empowered to operate an approved repair
11station by the Federal Aviation Administration, (ii) have a
12Class IV Rating, and (iii) conduct operations in accordance
13with Part 145 of the Federal Aviation Regulations; and (B) the
14modification, replacement, repair, and maintenance of aircraft
15engines or power plants without regard to whether or not those
16persons meet the qualifications of item (A).
17    The exemption does not include aircraft operated by a
18commercial air carrier providing scheduled passenger air
19service pursuant to authority issued under Part 121 or Part
20129 of the Federal Aviation Regulations. The changes made to
21this paragraph (27) by Public Act 98-534 are declarative of
22existing law. It is the intent of the General Assembly that the
23exemption under this paragraph (27) applies continuously from
24January 1, 2010 through December 31, 2024; however, no claim
25for credit or refund is allowed for taxes paid as a result of
26the disallowance of this exemption on or after January 1, 2015

 

 

10400SB3229ham001- 226 -LRB104 19751 BDA 38627 a

1and prior to February 5, 2020 (the effective date of Public Act
2101-629).
3    (28) Tangible personal property purchased by a
4public-facilities corporation, as described in Section
511-65-10 of the Illinois Municipal Code, for purposes of
6constructing or furnishing a municipal convention hall, but
7only if the legal title to the municipal convention hall is
8transferred to the municipality without any further
9consideration by or on behalf of the municipality at the time
10of the completion of the municipal convention hall or upon the
11retirement or redemption of any bonds or other debt
12instruments issued by the public-facilities corporation in
13connection with the development of the municipal convention
14hall. This exemption includes existing public-facilities
15corporations as provided in Section 11-65-25 of the Illinois
16Municipal Code. This paragraph is exempt from the provisions
17of Section 3-75.
18    (29) Beginning January 1, 2017 and through December 31,
192026, menstrual pads, tampons, and menstrual cups.
20    (30) Tangible personal property transferred to a purchaser
21who is exempt from the tax imposed by this Act by operation of
22federal law. This paragraph is exempt from the provisions of
23Section 3-75.
24    (31) Qualified tangible personal property used in the
25construction or operation of a data center that has been
26granted a certificate of exemption by the Department of

 

 

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1Commerce and Economic Opportunity, whether that tangible
2personal property is purchased by the owner, operator, or
3tenant of the data center or by a contractor or subcontractor
4of the owner, operator, or tenant. Data centers that would
5have qualified for a certificate of exemption prior to January
61, 2020 had Public Act 101-31 been in effect, may apply for and
7obtain an exemption for subsequent purchases of computer
8equipment or enabling software purchased or leased to upgrade,
9supplement, or replace computer equipment or enabling software
10purchased or leased in the original investment that would have
11qualified.
12    The Department of Commerce and Economic Opportunity shall
13grant a certificate of exemption under this item (31) to
14qualified data centers as defined by Section 605-1025 of the
15Department of Commerce and Economic Opportunity Law of the
16Civil Administrative Code of Illinois.
17    For the purposes of this item (31):
18        "Data center" means a building or a series of
19    buildings rehabilitated or constructed to house working
20    servers in one physical location or multiple sites within
21    the State of Illinois.
22        "Qualified tangible personal property" means:
23    electrical systems and equipment; climate control and
24    chilling equipment and systems; mechanical systems and
25    equipment; monitoring and secure systems; emergency
26    generators; hardware; computers; servers; data storage

 

 

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1    devices; network connectivity equipment; racks; cabinets;
2    telecommunications cabling infrastructure; raised floor
3    systems; peripheral components or systems; software;
4    mechanical, electrical, or plumbing systems; battery
5    systems; cooling systems and towers; temperature control
6    systems; other cabling; and other data center
7    infrastructure equipment and systems necessary to operate
8    qualified tangible personal property, including fixtures;
9    and component parts of any of the foregoing, including
10    installation, maintenance, repair, refurbishment, and
11    replacement of qualified tangible personal property to
12    generate, transform, transmit, distribute, or manage
13    electricity necessary to operate qualified tangible
14    personal property; and all other tangible personal
15    property that is essential to the operations of a computer
16    data center. The term "qualified tangible personal
17    property" also includes building materials physically
18    incorporated into the qualifying data center. To document
19    the exemption allowed under this Section, the retailer
20    must obtain from the purchaser a copy of the certificate
21    of eligibility issued by the Department of Commerce and
22    Economic Opportunity.
23    This item (31) is exempt from the provisions of Section
243-75.
25    (32) Beginning July 1, 2022, breast pumps, breast pump
26collection and storage supplies, and breast pump kits. This

 

 

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

 

 

10400SB3229ham001- 230 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 231 -LRB104 19751 BDA 38627 a

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

 

 

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1alcoholic beverages, food consisting of or infused with adult
2use cannabis, soft drinks, candy, and food that has been
3prepared for immediate consumption, and, beginning on November
412, 2026, food that is a final consumer hemp cannabinoid
5product as defined in the Illinois Hemp Act). This item (37) is
6exempt from the provisions of Section 3-75.
7    (38) Use by a lessee of the following leased tangible
8personal property:
9        (1) software transferred subject to a license that
10    meets the following requirements:
11            (A) it is evidenced by a written agreement signed
12        by the licensor and the customer;
13                (i) an electronic agreement in which the
14            customer accepts the license by means of an
15            electronic signature that is verifiable and can be
16            authenticated and is attached to or made part of
17            the license will comply with this requirement;
18                (ii) a license agreement in which the customer
19            electronically accepts the terms by clicking "I
20            agree" does not comply with this requirement;
21            (B) it restricts the customer's duplication and
22        use of the software;
23            (C) it prohibits the customer from licensing,
24        sublicensing, or transferring the software to a third
25        party (except to a related party) without the
26        permission and continued control of the licensor;

 

 

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1            (D) the licensor has a policy of providing another
2        copy at minimal or no charge if the customer loses or
3        damages the software, or of permitting the licensee to
4        make and keep an archival copy, and such policy is
5        either stated in the license agreement, supported by
6        the licensor's books and records, or supported by a
7        notarized statement made under penalties of perjury by
8        the licensor; and
9            (E) the customer must destroy or return all copies
10        of the software to the licensor at the end of the
11        license period; this provision is deemed to be met, in
12        the case of a perpetual license, without being set
13        forth in the license agreement; and
14        (2) property that is subject to a tax on lease
15    receipts imposed by a home rule unit of local government
16    if the ordinance imposing that tax was adopted prior to
17    January 1, 2023.
18(Source: P.A. 103-9, Article 5, Section 5-10, eff. 6-7-23;
19103-9, Article 15, Section 15-10, eff. 6-7-23; 103-154, eff.
206-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,
21eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;
22103-781, eff. 8-5-24; 103-995, eff. 8-9-24; 104-417, eff.
238-15-25.)
 
24    (35 ILCS 110/3-10)
25    Sec. 3-10. Rate of tax. Unless otherwise provided in this

 

 

10400SB3229ham001- 234 -LRB104 19751 BDA 38627 a

1Section, the tax imposed by this Act is at the rate of 6.25% of
2the selling price of tangible personal property transferred,
3including, on and after January 1, 2025, transferred by lease,
4as an incident to the sale of service, but, for the purpose of
5computing this tax, in no event shall the selling price be less
6than the cost price of the property to the serviceman.
7    Beginning on July 1, 2000 and through December 31, 2000,
8with respect to motor fuel, as defined in Section 1.1 of the
9Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
10the Use Tax Act, the tax is imposed at the rate of 1.25%.
11    With respect to gasohol, as defined in the Use Tax Act, the
12tax imposed by this Act applies to (i) 70% of the selling price
13of property transferred as an incident to the sale of service
14on or after January 1, 1990, and before July 1, 2003, (ii) 80%
15of the selling price of property transferred as an incident to
16the sale of service on or after July 1, 2003 and on or before
17July 1, 2017, (iii) 100% of the selling price of property
18transferred as an incident to the sale of service after July 1,
192017 and before January 1, 2024, (iv) 90% of the selling price
20of property transferred as an incident to the sale of service
21on or after January 1, 2024 and on or before December 31, 2028,
22and (v) 100% of the selling price of property transferred as an
23incident to the sale of service after December 31, 2028. If, at
24any time, however, the tax under this Act on sales of gasohol,
25as defined in the Use Tax Act, is imposed at the rate of 1.25%,
26then the tax imposed by this Act applies to 100% of the

 

 

10400SB3229ham001- 235 -LRB104 19751 BDA 38627 a

1proceeds of sales of gasohol made during that time.
2    With respect to mid-range ethanol blends, as defined in
3Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
4applies to (i) 80% of the selling price of property
5transferred as an incident to the sale of service on or after
6January 1, 2024 and on or before December 31, 2028 and (ii)
7100% of the selling price of property transferred as an
8incident to the sale of service after December 31, 2028. If, at
9any time, however, the tax under this Act on sales of mid-range
10ethanol blends is imposed at the rate of 1.25%, then the tax
11imposed by this Act applies to 100% of the selling price of
12mid-range ethanol blends transferred as an incident to the
13sale of service during that time.
14    With respect to majority blended ethanol fuel, as defined
15in the Use Tax Act, the tax imposed by this Act does not apply
16to the selling price of property transferred as an incident to
17the sale of service on or after July 1, 2003 and on or before
18December 31, 2028 but applies to 100% of the selling price
19thereafter.
20    With respect to biodiesel blends, as defined in the Use
21Tax Act, with no less than 1% and no more than 10% biodiesel,
22the tax imposed by this Act applies to (i) 80% of the selling
23price of property transferred as an incident to the sale of
24service on or after July 1, 2003 and on or before December 31,
252018 and (ii) 100% of the proceeds of the selling price after
26December 31, 2018 and before January 1, 2024. On and after

 

 

10400SB3229ham001- 236 -LRB104 19751 BDA 38627 a

1January 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 the selling price of
14property transferred as an incident to the sale of service on
15or after July 1, 2003 and on or before December 31, 2023. On
16and after January 1, 2024 and on or before December 31, 2030,
17the taxation of biodiesel, renewable diesel, and biodiesel
18blends shall be as provided in Section 3-5.1 of the Use Tax
19Act.
20    At the election of any registered serviceman made for each
21fiscal year, for whom the aggregate annual cost price of
22tangible personal property transferred as an incident to the
23sales of service is less than 35%, or 75% in the case of
24servicemen transferring prescription drugs or servicemen
25engaged in graphic arts production, of the aggregate annual
26total gross receipts from all sales of service, the tax

 

 

10400SB3229ham001- 237 -LRB104 19751 BDA 38627 a

1imposed by this Act shall be based on the serviceman's cost
2price of the tangible personal property transferred as an
3incident to the sale of those services. This election may also
4be made by any serviceman maintaining a place of business in
5this State who makes retail sales from outside of this State to
6Illinois customers but is not required to be registered under
7Section 2a of the Retailers' Occupation Tax Act. Beginning
8January 1, 2026, this election shall not apply to any sale of
9service made through a marketplace that has met the threshold
10in subsection (b-5) of Section 2d of this Act.
11    Beginning January 1, 2026, the tax shall be imposed at the
12rate of 6.25% of 50% of the entire billing to the service
13customer for all sales of service made through a marketplace
14that has met the threshold in subsection (b-5) of Section 2d of
15this Act. In no event shall 50% of the entire billing be less
16than the cost price of the property to the marketplace
17serviceman or the marketplace facilitator on its own sales of
18service.
19    Until July 1, 2022 and from July 1, 2023 through December
2031, 2025, the tax shall be imposed at the rate of 1% on food
21prepared for immediate consumption and transferred incident to
22a sale of service subject to this Act or the Service Occupation
23Tax Act by an entity licensed under the Hospital Licensing
24Act, the Nursing Home Care Act, the Assisted Living and Shared
25Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
26Specialized Mental Health Rehabilitation Act of 2013, or the

 

 

10400SB3229ham001- 238 -LRB104 19751 BDA 38627 a

1Child Care Act of 1969, or an entity that holds a permit issued
2pursuant to the Life Care Facilities Act. Until July 1, 2022
3and from July 1, 2023 through December 31, 2025, the tax shall
4also be imposed at the rate of 1% on food for human consumption
5that is to be consumed off the premises where it is sold (other
6than alcoholic beverages, food consisting of or infused with
7adult use cannabis, soft drinks, and food that has been
8prepared for immediate consumption and is not otherwise
9included in this paragraph).
10    Beginning on July 1, 2022 and until July 1, 2023, the tax
11shall be imposed at the rate of 0% on food prepared for
12immediate consumption and transferred incident to a sale of
13service subject to this Act or the Service Occupation Tax Act
14by an entity licensed under the Hospital Licensing Act, the
15Nursing Home Care Act, the Assisted Living and Shared Housing
16Act, the ID/DD Community Care Act, the MC/DD Act, the
17Specialized Mental Health Rehabilitation Act of 2013, or the
18Child Care Act of 1969, or an entity that holds a permit issued
19pursuant to the Life Care Facilities Act. Beginning on July 1,
202022 and until July 1, 2023, the tax shall also be imposed at
21the rate of 0% on food for human consumption that is to be
22consumed off the premises where it is sold (other than
23alcoholic beverages, food consisting of or infused with adult
24use cannabis, soft drinks, and food that has been prepared for
25immediate consumption and is not otherwise included in this
26paragraph, and, beginning on November 12, 2026, food that is a

 

 

10400SB3229ham001- 239 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 240 -LRB104 19751 BDA 38627 a

1sugar testing materials, syringes, and needles used by human
2diabetics. For the purposes of this Section, until September
31, 2009: the term "soft drinks" means any complete, finished,
4ready-to-use, non-alcoholic drink, whether carbonated or not,
5including, but not limited to, soda water, cola, fruit juice,
6vegetable juice, carbonated water, and all other preparations
7commonly known as soft drinks of whatever kind or description
8that are contained in any closed or sealed bottle, can,
9carton, or container, regardless of size; but "soft drinks"
10does not include coffee, tea, non-carbonated water, infant
11formula, milk or milk products as defined in the Grade A
12Pasteurized Milk and Milk Products Act, or drinks containing
1350% or more natural fruit or vegetable juice.
14    Notwithstanding any other provisions of this Act,
15beginning September 1, 2009, "soft drinks" means non-alcoholic
16beverages that contain natural or artificial sweeteners. "Soft
17drinks" does not include beverages that contain milk or milk
18products, soy, rice or similar milk substitutes, or greater
19than 50% of vegetable or fruit juice by volume.
20    Until August 1, 2009, and notwithstanding any other
21provisions of this Act, "food for human consumption that is to
22be consumed off the premises where it is sold" includes all
23food sold through a vending machine, except soft drinks and
24food products that are dispensed hot from a vending machine,
25regardless of the location of the vending machine. Beginning
26August 1, 2009, and notwithstanding any other provisions of

 

 

10400SB3229ham001- 241 -LRB104 19751 BDA 38627 a

1this Act, "food for human consumption that is to be consumed
2off the premises where it is sold" includes all food sold
3through a vending machine, except soft drinks, candy, and food
4products that are dispensed hot from a vending machine,
5regardless of the location of the vending machine.
6    Notwithstanding any other provisions of this Act,
7beginning September 1, 2009, "food for human consumption that
8is to be consumed off the premises where it is sold" does not
9include candy. For purposes of this Section, "candy" means a
10preparation of sugar, honey, or other natural or artificial
11sweeteners in combination with chocolate, fruits, nuts or
12other ingredients or flavorings in the form of bars, drops, or
13pieces. "Candy" does not include any preparation that contains
14flour or requires refrigeration.
15    Notwithstanding any other provisions of this Act,
16beginning September 1, 2009, "nonprescription medicines and
17drugs" does not include grooming and hygiene products. For
18purposes of this Section, "grooming and hygiene products"
19includes, but is not limited to, soaps and cleaning solutions,
20shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
21lotions and screens, unless those products are available by
22prescription only, regardless of whether the products meet the
23definition of "over-the-counter-drugs". For the purposes of
24this paragraph, "over-the-counter-drug" means a drug for human
25use that contains a label that identifies the product as a drug
26as required by 21 CFR 201.66. The "over-the-counter-drug"

 

 

10400SB3229ham001- 242 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 243 -LRB104 19751 BDA 38627 a

1Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
2and does not include cannabis subject to tax under the
3Compassionate Use of Medical Cannabis Program Act.
4    Beginning 90 days after the effective date of this
5amendatory Act of the 104th General Assembly, as used in this
6Section, "adult use cannabis" does not include 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.    
13    If the property that is acquired from a serviceman is
14acquired outside Illinois and used outside Illinois before
15being brought to Illinois for use here and is taxable under
16this Act, the "selling price" on which the tax is computed
17shall be reduced by an amount that represents a reasonable
18allowance for depreciation for the period of prior
19out-of-state use. No depreciation is allowed in cases where
20the tax under this Act is imposed on lease receipts.
21(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
22103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-6, eff.
236-16-25; 104-417, eff. 8-15-25.)
 
24    Section 130. The Service Occupation Tax Act is amended by
25changing Sections 3-5 and 3-10 as follows:
 

 

 

10400SB3229ham001- 244 -LRB104 19751 BDA 38627 a

1    (35 ILCS 115/3-5)
2    Sec. 3-5. Exemptions. The following tangible personal
3property is exempt from the tax imposed by this Act:
4    (1) Personal property sold by a corporation, society,
5association, foundation, institution, or organization, other
6than a limited liability company, that is organized and
7operated as a not-for-profit service enterprise for the
8benefit of persons 65 years of age or older if the personal
9property was not purchased by the enterprise for the purpose
10of resale by the enterprise.
11    (2) Personal property purchased by a not-for-profit
12Illinois county fair association for use in conducting,
13operating, or promoting the county fair.
14    (3) Personal property purchased by any not-for-profit arts
15or cultural organization that establishes, by proof required
16by the Department by rule, that it has received an exemption
17under Section 501(c)(3) of the Internal Revenue Code and that
18is organized and operated primarily for the presentation or
19support of arts or cultural programming, activities, or
20services. These organizations include, but are not limited to,
21music and dramatic arts organizations such as symphony
22orchestras and theatrical groups, arts and cultural service
23organizations, local arts councils, visual arts organizations,
24and media arts organizations. On and after July 1, 2001 (the
25effective date of Public Act 92-35), however, an entity

 

 

10400SB3229ham001- 245 -LRB104 19751 BDA 38627 a

1otherwise eligible for this exemption shall not make tax-free
2purchases unless it has an active identification number issued
3by the Department.
4    (4) Legal tender, currency, medallions, or gold or silver
5coinage issued by the State of Illinois, the government of the
6United States of America, or the government of any foreign
7country, and bullion.
8    (5) Until July 1, 2003 and beginning again on September 1,
92004 through August 30, 2014, graphic arts machinery and
10equipment, including repair and replacement parts, both new
11and used, and including that manufactured on special order or
12purchased for lease, certified by the purchaser to be used
13primarily for graphic arts production. Equipment includes
14chemicals or chemicals acting as catalysts but only if the
15chemicals or chemicals acting as catalysts effect a direct and
16immediate change upon a graphic arts product. Beginning on
17July 1, 2017, graphic arts machinery and equipment is included
18in the manufacturing and assembling machinery and equipment
19exemption under Section 2 of this Act.
20    (6) Personal property sold by a teacher-sponsored student
21organization affiliated with an elementary or secondary school
22located in Illinois.
23    (7) Farm machinery and equipment, both new and used,
24including that manufactured on special order, certified by the
25purchaser to be used primarily for production agriculture or
26State or federal agricultural programs, including individual

 

 

10400SB3229ham001- 246 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 247 -LRB104 19751 BDA 38627 a

1facilities, equipment, and activities such as, but not limited
2to, the collection, monitoring, and correlation of animal and
3crop data for the purpose of formulating animal diets and
4agricultural chemicals.
5    Beginning on January 1, 2024, farm machinery and equipment
6also includes electrical power generation equipment used
7primarily for production agriculture.
8    This item (7) is exempt from the provisions of Section
93-55.
10    (8) Until June 30, 2013, fuel and petroleum products sold
11to or used by an air common carrier, certified by the carrier
12to be used for consumption, shipment, or storage in the
13conduct of its business as an air common carrier, for a flight
14destined for or returning from a location or locations outside
15the United States without regard to previous or subsequent
16domestic stopovers.
17    Beginning July 1, 2013, fuel and petroleum products sold
18to or used by an air carrier, certified by the carrier to be
19used for consumption, shipment, or storage in the conduct of
20its business as an air common carrier, for a flight that (i) is
21engaged in foreign trade or is engaged in trade between the
22United States and any of its possessions and (ii) transports
23at least one individual or package for hire from the city of
24origination to the city of final destination on the same
25aircraft, without regard to a change in the flight number of
26that aircraft.

 

 

10400SB3229ham001- 248 -LRB104 19751 BDA 38627 a

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

 

 

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1equipment, and including equipment purchased for lease, but
2excluding motor vehicles required to be registered under the
3Illinois Vehicle Code. The changes made to this Section by
4Public Act 97-767 apply on and after July 1, 2003, but no claim
5for credit or refund is allowed on or after August 16, 2013
6(the effective date of Public Act 98-456) for such taxes paid
7during the period beginning July 1, 2003 and ending on August
816, 2013 (the effective date of Public Act 98-456).
9    (13) Beginning January 1, 1992 and through June 30, 2016,
10food for human consumption that is to be consumed off the
11premises where it is sold (other than alcoholic beverages,
12soft drinks and food that has been prepared for immediate
13consumption) and prescription and non-prescription medicines,
14drugs, medical appliances, and insulin, urine testing
15materials, syringes, and needles used by diabetics, for human
16use, when purchased for use by a person receiving medical
17assistance under Article V of the Illinois Public Aid Code who
18resides in a licensed long-term care facility, as defined in
19the Nursing Home Care Act, or in a licensed facility as defined
20in the ID/DD Community Care Act, the MC/DD Act, or the
21Specialized Mental Health Rehabilitation Act of 2013.
22    (14) Semen used for artificial insemination of livestock
23for direct agricultural production.
24    (15) Horses, or interests in horses, registered with and
25meeting the requirements of any of the Arabian Horse Club
26Registry of America, Appaloosa Horse Club, American Quarter

 

 

10400SB3229ham001- 250 -LRB104 19751 BDA 38627 a

1Horse Association, United States Trotting Association, or
2Jockey Club, as appropriate, used for purposes of breeding or
3racing for prizes. This item (15) is exempt from the
4provisions of Section 3-55, and the exemption provided for
5under this item (15) applies for all periods beginning May 30,
61995, but no claim for credit or refund is allowed on or after
7January 1, 2008 (the effective date of Public Act 95-88) for
8such taxes paid during the period beginning May 30, 2000 and
9ending on January 1, 2008 (the effective date of Public Act
1095-88).
11    (16) Computers and communications equipment utilized for
12any hospital purpose and equipment used in the diagnosis,
13analysis, or treatment of hospital patients sold to a lessor
14who leases the equipment, under a lease of one year or longer
15executed or in effect at the time of the purchase, to a
16hospital that has been issued an active tax exemption
17identification number by the Department under Section 1g of
18the Retailers' Occupation Tax Act.
19    (17) Personal property sold to a lessor who leases the
20property, under a lease of one year or longer executed or in
21effect at the time of the purchase, to a governmental body that
22has been issued an active tax exemption identification number
23by the Department under Section 1g of the Retailers'
24Occupation Tax Act.
25    (18) Beginning with taxable years ending on or after
26December 31, 1995 and ending with taxable years ending on or

 

 

10400SB3229ham001- 251 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 252 -LRB104 19751 BDA 38627 a

11-146 of the Illinois Vehicle Code, that is donated to a
2corporation, limited liability company, society, association,
3foundation, or institution that is determined by the
4Department to be organized and operated exclusively for
5educational purposes. For purposes of this exemption, "a
6corporation, limited liability company, society, association,
7foundation, or institution organized and operated exclusively
8for educational purposes" means all tax-supported public
9schools, private schools that offer systematic instruction in
10useful branches of learning by methods common to public
11schools and that compare favorably in their scope and
12intensity with the course of study presented in tax-supported
13schools, and vocational or technical schools or institutes
14organized and operated exclusively to provide a course of
15study of not less than 6 weeks duration and designed to prepare
16individuals to follow a trade or to pursue a manual,
17technical, mechanical, industrial, business, or commercial
18occupation.
19    (22) Beginning January 1, 2000, personal property,
20including food, purchased through fundraising events for the
21benefit of a public or private elementary or secondary school,
22a group of those schools, or one or more school districts if
23the events are sponsored by an entity recognized by the school
24district that consists primarily of volunteers and includes
25parents and teachers of the school children. This paragraph
26does not apply to fundraising events (i) for the benefit of

 

 

10400SB3229ham001- 253 -LRB104 19751 BDA 38627 a

1private home instruction or (ii) for which the fundraising
2entity purchases the personal property sold at the events from
3another individual or entity that sold the property for the
4purpose of resale by the fundraising entity and that profits
5from the sale to the fundraising entity. This paragraph is
6exempt from the provisions of Section 3-55.
7    (23) Beginning January 1, 2000 and through December 31,
82001, new or used automatic vending machines that prepare and
9serve hot food and beverages, including coffee, soup, and
10other items, and replacement parts for these machines.
11Beginning January 1, 2002 and through June 30, 2003, machines
12and parts for machines used in commercial, coin-operated
13amusement and vending business if a use or occupation tax is
14paid on the gross receipts derived from the use of the
15commercial, coin-operated amusement and vending machines. This
16paragraph is exempt from the provisions of Section 3-55.
17    (24) Beginning on August 2, 2001 (the effective date of
18Public Act 92-227), computers and communications equipment
19utilized for any hospital purpose and equipment used in the
20diagnosis, analysis, or treatment of hospital patients sold to
21a lessor who leases the equipment, under a lease of one year or
22longer executed or in effect at the time of the purchase, to a
23hospital that has been issued an active tax exemption
24identification number by the Department under Section 1g of
25the Retailers' Occupation Tax Act. This paragraph is exempt
26from the provisions of Section 3-55.

 

 

10400SB3229ham001- 254 -LRB104 19751 BDA 38627 a

1    (25) Beginning on August 2, 2001 (the effective date of
2Public Act 92-227), personal property sold to a lessor who
3leases the property, under a lease of one year or longer
4executed or in effect at the time of the purchase, to a
5governmental body that has been issued an active tax exemption
6identification number by the Department under Section 1g of
7the Retailers' Occupation Tax Act. This paragraph is exempt
8from the provisions of Section 3-55.
9    (26) Beginning on January 1, 2002 and through June 30,
102016, tangible personal property purchased from an Illinois
11retailer by a taxpayer engaged in centralized purchasing
12activities in Illinois who will, upon receipt of the property
13in Illinois, temporarily store the property in Illinois (i)
14for the purpose of subsequently transporting it outside this
15State for use or consumption thereafter solely outside this
16State or (ii) for the purpose of being processed, fabricated,
17or manufactured into, attached to, or incorporated into other
18tangible personal property to be transported outside this
19State and thereafter used or consumed solely outside this
20State. The Director of Revenue shall, pursuant to rules
21adopted in accordance with the Illinois Administrative
22Procedure Act, issue a permit to any taxpayer in good standing
23with the Department who is eligible for the exemption under
24this paragraph (26). The permit issued under this paragraph
25(26) shall authorize the holder, to the extent and in the
26manner specified in the rules adopted under this Act, to

 

 

10400SB3229ham001- 255 -LRB104 19751 BDA 38627 a

1purchase tangible personal property from a retailer exempt
2from the taxes imposed by this Act. Taxpayers shall maintain
3all necessary books and records to substantiate the use and
4consumption of all such tangible personal property outside of
5the State of Illinois.
6    (27) Beginning January 1, 2008, tangible personal property
7used in the construction or maintenance of a community water
8supply, as defined under Section 3.145 of the Environmental
9Protection Act, that is operated by a not-for-profit
10corporation that holds a valid water supply permit issued
11under Title IV of the Environmental Protection Act. This
12paragraph is exempt from the provisions of Section 3-55.
13    (28) Tangible personal property sold to a
14public-facilities corporation, as described in Section
1511-65-10 of the Illinois Municipal Code, for purposes of
16constructing or furnishing a municipal convention hall, but
17only if the legal title to the municipal convention hall is
18transferred to the municipality without any further
19consideration by or on behalf of the municipality at the time
20of the completion of the municipal convention hall or upon the
21retirement or redemption of any bonds or other debt
22instruments issued by the public-facilities corporation in
23connection with the development of the municipal convention
24hall. This exemption includes existing public-facilities
25corporations as provided in Section 11-65-25 of the Illinois
26Municipal Code. This paragraph is exempt from the provisions

 

 

10400SB3229ham001- 256 -LRB104 19751 BDA 38627 a

1of Section 3-55.
2    (29) Beginning January 1, 2010 and continuing through
3December 31, 2029, materials, parts, equipment, components,
4and furnishings incorporated into or upon an aircraft as part
5of the modification, refurbishment, completion, replacement,
6repair, or maintenance of the aircraft. This exemption
7includes consumable supplies used in the modification,
8refurbishment, completion, replacement, repair, and
9maintenance of aircraft. However, until January 1, 2024, this
10exemption excludes any materials, parts, equipment,
11components, and consumable supplies used in the modification,
12replacement, repair, and maintenance of aircraft engines or
13power plants, whether such engines or power plants are
14installed or uninstalled upon any such aircraft. "Consumable
15supplies" include, but are not limited to, adhesive, tape,
16sandpaper, general purpose lubricants, cleaning solution,
17latex gloves, and protective films.
18    Beginning January 1, 2010 and continuing through December
1931, 2023, this exemption applies only to the transfer of
20qualifying tangible personal property incident to the
21modification, refurbishment, completion, replacement, repair,
22or maintenance of an aircraft by persons who (i) hold an Air
23Agency Certificate and are empowered to operate an approved
24repair station by the Federal Aviation Administration, (ii)
25have a Class IV Rating, and (iii) conduct operations in
26accordance with Part 145 of the Federal Aviation Regulations.

 

 

10400SB3229ham001- 257 -LRB104 19751 BDA 38627 a

1The exemption does not include aircraft operated by a
2commercial air carrier providing scheduled passenger air
3service pursuant to authority issued under Part 121 or Part
4129 of the Federal Aviation Regulations. From January 1, 2024
5through December 31, 2029, this exemption applies only to the
6transfer of qualifying tangible personal property incident to:
7(A) the modification, refurbishment, completion, repair,
8replacement, or maintenance of an aircraft by persons who (i)
9hold an Air Agency Certificate and are empowered to operate an
10approved repair station by the Federal Aviation
11Administration, (ii) have a Class IV Rating, and (iii) conduct
12operations in accordance with Part 145 of the Federal Aviation
13Regulations; and (B) the modification, replacement, repair,
14and maintenance of aircraft engines or power plants without
15regard to whether or not those persons meet the qualifications
16of item (A).
17    The changes made to this paragraph (29) by Public Act
1898-534 are declarative of existing law. It is the intent of the
19General Assembly that the exemption under this paragraph (29)
20applies continuously from January 1, 2010 through December 31,
212024; however, no claim for credit or refund is allowed for
22taxes paid as a result of the disallowance of this exemption on
23or after January 1, 2015 and prior to February 5, 2020 (the
24effective date of Public Act 101-629).
25    (30) Beginning January 1, 2017 and through December 31,
262026, menstrual pads, tampons, and menstrual cups.

 

 

10400SB3229ham001- 258 -LRB104 19751 BDA 38627 a

1    (31) Tangible personal property transferred to a purchaser
2who is exempt from tax by operation of federal law. This
3paragraph is exempt from the provisions of Section 3-55.
4    (32) Qualified tangible personal property used in the
5construction or operation of a data center that has been
6granted a certificate of exemption by the Department of
7Commerce and Economic Opportunity, whether that tangible
8personal property is purchased by the owner, operator, or
9tenant of the data center or by a contractor or subcontractor
10of the owner, operator, or tenant. Data centers that would
11have qualified for a certificate of exemption prior to January
121, 2020 had Public Act 101-31 been in effect, may apply for and
13obtain an exemption for subsequent purchases of computer
14equipment or enabling software purchased or leased to upgrade,
15supplement, or replace computer equipment or enabling software
16purchased or leased in the original investment that would have
17qualified.
18    The Department of Commerce and Economic Opportunity shall
19grant a certificate of exemption under this item (32) to
20qualified data centers as defined by Section 605-1025 of the
21Department of Commerce and Economic Opportunity Law of the
22Civil Administrative Code of Illinois.
23    For the purposes of this item (32):
24        "Data center" means a building or a series of
25    buildings rehabilitated or constructed to house working
26    servers in one physical location or multiple sites within

 

 

10400SB3229ham001- 259 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 260 -LRB104 19751 BDA 38627 a

1    of eligibility issued by the Department of Commerce and
2    Economic Opportunity.
3    This item (32) is exempt from the provisions of Section
43-55.
5    (33) Beginning July 1, 2022, breast pumps, breast pump
6collection and storage supplies, and breast pump kits. This
7item (33) is exempt from the provisions of Section 3-55. As
8used in this item (33):
9        "Breast pump" means an electrically controlled or
10    manually controlled pump device designed or marketed to be
11    used to express milk from a human breast during lactation,
12    including the pump device and any battery, AC adapter, or
13    other power supply unit that is used to power the pump
14    device and is packaged and sold with the pump device at the
15    time of sale.
16        "Breast pump collection and storage supplies" means
17    items of tangible personal property designed or marketed
18    to be used in conjunction with a breast pump to collect
19    milk expressed from a human breast and to store collected
20    milk until it is ready for consumption.
21        "Breast pump collection and storage supplies"
22    includes, but is not limited to: breast shields and breast
23    shield connectors; breast pump tubes and tubing adapters;
24    breast pump valves and membranes; backflow protectors and
25    backflow protector adaptors; bottles and bottle caps
26    specific to the operation of the breast pump; and breast

 

 

10400SB3229ham001- 261 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 262 -LRB104 19751 BDA 38627 a

1forces of the United States who presents valid military
2identification and purchases the property using a form of
3payment where the federal government is the payor. The member
4of the armed forces must complete, at the point of sale, a form
5prescribed by the Department of Revenue documenting that the
6transaction is eligible for the exemption under this
7paragraph. Retailers must keep the form as documentation of
8the exemption in their records for a period of not less than 6
9years. "Armed forces of the United States" means the United
10States Army, Navy, Air Force, Space Force, Marine Corps, or
11Coast Guard. This paragraph is exempt from the provisions of
12Section 3-55.
13    (36) Beginning July 1, 2024, home-delivered meals provided
14to Medicare or Medicaid recipients when payment is made by an
15intermediary, such as a Medicare Administrative Contractor, a
16Managed Care Organization, or a Medicare Advantage
17Organization, pursuant to a government contract. This
18paragraph (36) is exempt from the provisions of Section 3-55.
19    (37) Beginning on January 1, 2026, as further defined in
20Section 3-10, food prepared for immediate consumption and
21transferred incident to a sale of service subject to this Act
22or the Service Use Tax Act by an entity licensed under the
23Hospital Licensing Act, the Nursing Home Care Act, the
24Assisted Living and Shared Housing Act, the ID/DD Community
25Care Act, the MC/DD Act, the Specialized Mental Health
26Rehabilitation Act of 2013, or the Child Care Act of 1969 or by

 

 

10400SB3229ham001- 263 -LRB104 19751 BDA 38627 a

1an entity that holds a permit issued pursuant to the Life Care
2Facilities Act. This item (37) is exempt from the provisions
3of Section 3-55.
4    (38) Beginning on January 1, 2026, as further defined in
5Section 3-10, food for human consumption that is to be
6consumed off the premises where it is sold (other than
7alcoholic beverages, food consisting of or infused with adult
8use cannabis, soft drinks, candy, and food that has been
9prepared for immediate consumption, and, beginning on November
1012, 2026, food that is a final consumer hemp cannabinoid
11product as defined in the Illinois Hemp Act). This item (38) is
12exempt from the provisions of Section 3-55.
13    (39) The lease of the following tangible personal
14property:
15        (1) computer software transferred subject to a license
16    that meets the following requirements:
17            (A) it is evidenced by a written agreement signed
18        by the licensor and the customer;
19                (i) an electronic agreement in which the
20            customer accepts the license by means of an
21            electronic signature that is verifiable and can be
22            authenticated and is attached to or made part of
23            the license will comply with this requirement;
24                (ii) a license agreement in which the customer
25            electronically accepts the terms by clicking "I
26            agree" does not comply with this requirement;

 

 

10400SB3229ham001- 264 -LRB104 19751 BDA 38627 a

1            (B) it restricts the customer's duplication and
2        use of the software;
3            (C) it prohibits the customer from licensing,
4        sublicensing, or transferring the software to a third
5        party (except to a related party) without the
6        permission and continued control of the licensor;
7            (D) the licensor has a policy of providing another
8        copy at minimal or no charge if the customer loses or
9        damages the software, or of permitting the licensee to
10        make and keep an archival copy, and such policy is
11        either stated in the license agreement, supported by
12        the licensor's books and records, or supported by a
13        notarized statement made under penalties of perjury by
14        the licensor; and
15            (E) the customer must destroy or return all copies
16        of the software to the licensor at the end of the
17        license period; this provision is deemed to be met, in
18        the case of a perpetual license, without being set
19        forth in the license agreement; and
20        (2) property that is subject to a tax on lease
21    receipts imposed by a home rule unit of local government
22    if the ordinance imposing that tax was adopted prior to
23    January 1, 2023.
24(Source: P.A. 103-9, Article 5, Section 5-15, eff. 6-7-23;
25103-9, Article 15, Section 15-15, eff. 6-7-23; 103-154, eff.
266-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,

 

 

10400SB3229ham001- 265 -LRB104 19751 BDA 38627 a

1eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;
2103-781, eff. 8-5-24; 103-995, eff. 8-9-24; 104-417, eff.
38-15-25.)
 
4    (35 ILCS 115/3-10)
5    Sec. 3-10. Rate of tax. Unless otherwise provided in this
6Section, the tax imposed by this Act is at the rate of 6.25% of
7the "selling price", as defined in Section 2 of the Service Use
8Tax Act, of the tangible personal property, including, on and
9after January 1, 2025, tangible personal property transferred
10by lease. For the purpose of computing this tax, in no event
11shall the "selling price" be less than the cost price to the
12serviceman of the tangible personal property transferred. The
13selling price of each item of tangible personal property
14transferred as an incident of a sale of service may be shown as
15a distinct and separate item on the serviceman's billing to
16the service customer. If the selling price is not so shown, the
17selling price of the tangible personal property is deemed to
18be 50% of the serviceman's entire billing to the service
19customer. When, however, a serviceman contracts to design,
20develop, and produce special order machinery or equipment, the
21tax imposed by this Act shall be based on the serviceman's cost
22price of the tangible personal property transferred incident
23to the completion of the contract.
24    Beginning on July 1, 2000 and through December 31, 2000,
25with respect to motor fuel, as defined in Section 1.1 of the

 

 

10400SB3229ham001- 266 -LRB104 19751 BDA 38627 a

1Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
2the Use Tax Act, the tax is imposed at the rate of 1.25%.
3    With respect to gasohol, as defined in the Use Tax Act, the
4tax imposed by this Act shall apply to (i) 70% of the cost
5price of property transferred as an incident to the sale of
6service on or after January 1, 1990, and before July 1, 2003,
7(ii) 80% of the selling price of property transferred as an
8incident to the sale of service on or after July 1, 2003 and on
9or before July 1, 2017, (iii) 100% of the selling price of
10property transferred as an incident to the sale of service
11after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
12the selling price of property transferred as an incident to
13the sale of service on or after January 1, 2024 and on or
14before December 31, 2028, and (v) 100% of the selling price of
15property transferred as an incident to the sale of service
16after December 31, 2028. If, at any time, however, the tax
17under this Act on sales of gasohol, as defined in the Use Tax
18Act, is imposed at the rate of 1.25%, then the tax imposed by
19this Act applies to 100% of the proceeds of sales of gasohol
20made during that time.
21    With respect to mid-range ethanol blends, as defined in
22Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
23applies to (i) 80% of the selling price of property
24transferred as an incident to the sale of service on or after
25January 1, 2024 and on or before December 31, 2028 and (ii)
26100% of the selling price of property transferred as an

 

 

10400SB3229ham001- 267 -LRB104 19751 BDA 38627 a

1incident to the sale of service after December 31, 2028. If, at
2any time, however, the tax under this Act on sales of mid-range
3ethanol blends is imposed at the rate of 1.25%, then the tax
4imposed by this Act applies to 100% of the selling price of
5mid-range ethanol blends transferred as an incident to the
6sale of service during that time.
7    With respect to majority blended ethanol fuel, as defined
8in the Use Tax Act, the tax imposed by this Act does not apply
9to the selling price of property transferred as an incident to
10the sale of service on or after July 1, 2003 and on or before
11December 31, 2028 but applies to 100% of the selling price
12thereafter.
13    With respect to biodiesel blends, as defined in the Use
14Tax Act, with no less than 1% and no more than 10% biodiesel,
15the tax imposed by this Act applies to (i) 80% of the selling
16price of property transferred as an incident to the sale of
17service on or after July 1, 2003 and on or before December 31,
182018 and (ii) 100% of the proceeds of the selling price after
19December 31, 2018 and before January 1, 2024. On and after
20January 1, 2024 and on or before December 31, 2030, the
21taxation of biodiesel, renewable diesel, and biodiesel blends
22shall be as provided in Section 3-5.1 of the Use Tax Act. If,
23at any time, however, the tax under this Act on sales of
24biodiesel blends, as defined in the Use Tax Act, with no less
25than 1% and no more than 10% biodiesel is imposed at the rate
26of 1.25%, then the tax imposed by this Act applies to 100% of

 

 

10400SB3229ham001- 268 -LRB104 19751 BDA 38627 a

1the proceeds of sales of biodiesel blends with no less than 1%
2and no more than 10% biodiesel made during that time.
3    With respect to biodiesel, as defined in the Use Tax Act,
4and biodiesel blends, as defined in the Use Tax Act, with more
5than 10% but no more than 99% biodiesel material, the tax
6imposed by this Act does not apply to the proceeds of the
7selling price of property transferred as an incident to the
8sale of service on or after July 1, 2003 and on or before
9December 31, 2023. On and after January 1, 2024 and on or
10before December 31, 2030, the taxation of biodiesel, renewable
11diesel, and biodiesel blends shall be as provided in Section
123-5.1 of the Use Tax Act.
13    At the election of any registered serviceman made for each
14fiscal year, for whom the aggregate annual cost price of
15tangible personal property transferred as an incident to the
16sales of service is less than 35%, or 75% in the case of
17servicemen transferring prescription drugs or servicemen
18engaged in graphic arts production, of the aggregate annual
19total gross receipts from all sales of service, the tax
20imposed by this Act shall be based on the serviceman's cost
21price of the tangible personal property transferred incident
22to the sale of those services. This election may also be made
23by a serviceman maintaining a place of business in this State
24who makes retail sales from outside of this State to Illinois
25customers but is not required to be registered under Section
262a of the Retailers' Occupation Tax Act. Beginning January 1,

 

 

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12026, this election shall not apply to any sale of service made
2through a marketplace that has met the threshold in subsection
3(d) of Section 3 of this Act.
4    Beginning January 1, 2026, the tax shall be imposed at the
5rate of 6.25% of 50% of the entire billing to the service
6customer for all sales of service made through a marketplace
7that has met the threshold in subsection (d) of Section 3 of
8this Act. In no event shall 50% of the entire billing be less
9than the cost price of the property to the marketplace
10serviceman or the marketplace facilitator on its own sales of
11service.
12    Until July 1, 2022 and from July 1, 2023 through December
1331, 2025, the tax shall be imposed at the rate of 1% on food
14prepared for immediate consumption and transferred incident to
15a sale of service subject to this Act or the Service Use Tax
16Act by an entity licensed under the Hospital Licensing Act,
17the Nursing Home Care Act, the Assisted Living and Shared
18Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
19Specialized Mental Health Rehabilitation Act of 2013, or the
20Child Care Act of 1969, or an entity that holds a permit issued
21pursuant to the Life Care Facilities Act. Until July 1, 2022
22and from July 1, 2023 through December 31, 2025, the tax shall
23also be imposed at the rate of 1% on food for human consumption
24that is to be consumed off the premises where it is sold (other
25than alcoholic beverages, food consisting of or infused with
26adult use cannabis, soft drinks, and food that has been

 

 

10400SB3229ham001- 270 -LRB104 19751 BDA 38627 a

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

 

 

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1to the Life Care Facilities Act is exempt from the tax imposed
2by this Act. On and after January 1, 2026, food for human
3consumption that is to be consumed off the premises where it is
4sold (other than alcoholic beverages, food consisting of or
5infused with adult use cannabis, soft drinks, candy, and food
6that has been prepared for immediate consumption and is not
7otherwise included in this paragraph, and, beginning on
8November 12, 2026, food that is a "final consumer hemp
9cannabinoid product" as defined in Illinois Hemp Act) is
10exempt from the tax imposed by this Act.
11    The tax shall be imposed at the rate of 1% on prescription
12and nonprescription medicines, drugs, medical appliances,
13products classified as Class III medical devices by the United
14States Food and Drug Administration that are used for cancer
15treatment pursuant to a prescription, as well as any
16accessories and components related to those devices,
17modifications to a motor vehicle for the purpose of rendering
18it usable by a person with a disability, and insulin, blood
19sugar testing materials, syringes, and needles used by human
20diabetics. For the purposes of this Section, until September
211, 2009: the term "soft drinks" means any complete, finished,
22ready-to-use, non-alcoholic drink, whether carbonated or not,
23including, but not limited to, soda water, cola, fruit juice,
24vegetable juice, carbonated water, and all other preparations
25commonly known as soft drinks of whatever kind or description
26that are contained in any closed or sealed can, carton, or

 

 

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

 

 

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

 

 

10400SB3229ham001- 274 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 275 -LRB104 19751 BDA 38627 a

1Alternative Patient Program participant as part of that
2individual's adequate medical supply from any dispensary that
3has been issued a Medical Cannabis Dispensing Organization
4license.    
5(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
6103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-6, eff.
76-16-25; 104-417, eff. 8-15-25.)
 
8    Section 140. The Retailers' Occupation Tax Act is amended
9by changing Sections 2-5, 2-10, and 11 as follows:
 
10    (35 ILCS 120/2-5)
11    Sec. 2-5. Exemptions. Gross receipts from proceeds from
12the sale, which, on and after January 1, 2025, includes the
13lease, of the following tangible personal property are exempt
14from the tax imposed by this Act:
15        (1) Farm chemicals.
16        (2) Farm machinery and equipment, both new and used,
17    including that manufactured on special order, certified by
18    the purchaser to be used primarily for production
19    agriculture or State or federal agricultural programs,
20    including individual replacement parts for the machinery
21    and equipment, including machinery and equipment purchased
22    for lease, and including implements of husbandry defined
23    in Section 1-130 of the Illinois Vehicle Code, farm
24    machinery and agricultural chemical and fertilizer

 

 

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

 

 

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

 

 

10400SB3229ham001- 278 -LRB104 19751 BDA 38627 a

1        (5) A motor vehicle that is used for automobile
2    renting, as defined in the Automobile Renting Occupation
3    and Use Tax Act. This paragraph is exempt from the
4    provisions of Section 2-70.
5        (6) Personal property sold by a teacher-sponsored
6    student organization affiliated with an elementary or
7    secondary school located in Illinois.
8        (7) Until July 1, 2003, proceeds of that portion of
9    the selling price of a passenger car the sale of which is
10    subject to the Replacement Vehicle Tax.
11        (8) Personal property sold to an Illinois county fair
12    association for use in conducting, operating, or promoting
13    the county fair.
14        (9) Personal property sold to a not-for-profit arts or
15    cultural organization that establishes, by proof required
16    by the Department by rule, that it has received an
17    exemption under Section 501(c)(3) of the Internal Revenue
18    Code and that is organized and operated primarily for the
19    presentation or support of arts or cultural programming,
20    activities, or services. These organizations include, but
21    are not limited to, music and dramatic arts organizations
22    such as symphony orchestras and theatrical groups, arts
23    and cultural service organizations, local arts councils,
24    visual arts organizations, and media arts organizations.
25    On and after July 1, 2001 (the effective date of Public Act
26    92-35), however, an entity otherwise eligible for this

 

 

10400SB3229ham001- 279 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 280 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 281 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 282 -LRB104 19751 BDA 38627 a

1    limited to, graphic arts machinery and equipment, as
2    defined in paragraph (4) of this Section.
3        (15) Proceeds of mandatory service charges separately
4    stated on customers' bills for purchase and consumption of
5    food and beverages, to the extent that the proceeds of the
6    service charge are in fact turned over as tips or as a
7    substitute for tips to the employees who participate
8    directly in preparing, serving, hosting or cleaning up the
9    food or beverage function with respect to which the
10    service charge is imposed.
11        (16) Tangible personal property sold to a purchaser if
12    the purchaser is exempt from use tax by operation of
13    federal law. This paragraph is exempt from the provisions
14    of Section 2-70.
15        (17) Tangible personal property sold to a common
16    carrier by rail or motor that receives the physical
17    possession of the property in Illinois and that transports
18    the property, or shares with another common carrier in the
19    transportation of the property, out of Illinois on a
20    standard uniform bill of lading showing the seller of the
21    property as the shipper or consignor of the property to a
22    destination outside Illinois, for use outside Illinois.
23        (18) Legal tender, currency, medallions, or gold or
24    silver coinage issued by the State of Illinois, the
25    government of the United States of America, or the
26    government of any foreign country, and bullion.

 

 

10400SB3229ham001- 283 -LRB104 19751 BDA 38627 a

1        (19) Until July 1, 2003, oil field exploration,
2    drilling, and production equipment, including (i) rigs and
3    parts of rigs, rotary rigs, cable tool rigs, and workover
4    rigs, (ii) pipe and tubular goods, including casing and
5    drill strings, (iii) pumps and pump-jack units, (iv)
6    storage tanks and flow lines, (v) any individual
7    replacement part for oil field exploration, drilling, and
8    production equipment, and (vi) machinery and equipment
9    purchased for lease; but excluding motor vehicles required
10    to be registered under the Illinois Vehicle Code.
11        (20) Photoprocessing machinery and equipment,
12    including repair and replacement parts, both new and used,
13    including that manufactured on special order, certified by
14    the purchaser to be used primarily for photoprocessing,
15    and including photoprocessing machinery and equipment
16    purchased for lease.
17        (21) Until July 1, 2028, coal and aggregate
18    exploration, mining, off-highway hauling, processing,
19    maintenance, and reclamation equipment, including
20    replacement parts and equipment, and including equipment
21    purchased for lease, but excluding motor vehicles required
22    to be registered under the Illinois Vehicle Code. The
23    changes made to this Section by Public Act 97-767 apply on
24    and after July 1, 2003, but no claim for credit or refund
25    is allowed on or after August 16, 2013 (the effective date
26    of Public Act 98-456) for such taxes paid during the

 

 

10400SB3229ham001- 284 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 285 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

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

 

 

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1        require.
2        For purposes of this item (25-7):
3        "Based in this State" means hangared, stored, or
4    otherwise used, excluding post-sale customizations as
5    defined in this Section, for 10 or more days in each
6    12-month period immediately following the date of the sale
7    of the aircraft.
8        "Registered in this State" means an aircraft
9    registered with the Department of Transportation,
10    Aeronautics Division, or titled or registered with the
11    Federal Aviation Administration to an address located in
12    this State.
13        This paragraph (25-7) is exempt from the provisions of
14    Section 2-70.
15        (26) Semen used for artificial insemination of
16    livestock for direct agricultural production.
17        (27) Horses, or interests in horses, registered with
18    and meeting the requirements of any of the Arabian Horse
19    Club Registry of America, Appaloosa Horse Club, American
20    Quarter Horse Association, United States Trotting
21    Association, or Jockey Club, as appropriate, used for
22    purposes of breeding or racing for prizes. This item (27)
23    is exempt from the provisions of Section 2-70, and the
24    exemption provided for under this item (27) applies for
25    all periods beginning May 30, 1995, but no claim for
26    credit or refund is allowed on or after January 1, 2008

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

10400SB3229ham001- 294 -LRB104 19751 BDA 38627 a

1    thereafter solely outside this State or (ii) for the
2    purpose of being processed, fabricated, or manufactured
3    into, attached to, or incorporated into other tangible
4    personal property to be transported outside this State and
5    thereafter used or consumed solely outside this State. The
6    Director of Revenue shall, pursuant to rules adopted in
7    accordance with the Illinois Administrative Procedure Act,
8    issue a permit to any taxpayer in good standing with the
9    Department who is eligible for the exemption under this
10    paragraph (38). The permit issued under this paragraph
11    (38) shall authorize the holder, to the extent and in the
12    manner specified in the rules adopted under this Act, to
13    purchase tangible personal property from a retailer exempt
14    from the taxes imposed by this Act. Taxpayers shall
15    maintain all necessary books and records to substantiate
16    the use and consumption of all such tangible personal
17    property outside of the State of Illinois.
18        (39) Beginning January 1, 2008, tangible personal
19    property used in the construction or maintenance of a
20    community water supply, as defined under Section 3.145 of
21    the Environmental Protection Act, that is operated by a
22    not-for-profit corporation that holds a valid water supply
23    permit issued under Title IV of the Environmental
24    Protection Act. This paragraph is exempt from the
25    provisions of Section 2-70.
26        (40) Beginning January 1, 2010 and continuing through

 

 

10400SB3229ham001- 295 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 296 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

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

 

 

10400SB3229ham001- 299 -LRB104 19751 BDA 38627 a

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

 

 

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1        This item (44) is exempt from the provisions of
2    Section 2-70.
3        (45) Beginning January 1, 2020 and through December
4    31, 2020, sales of tangible personal property made by a
5    marketplace seller over a marketplace for which tax is due
6    under this Act but for which use tax has been collected and
7    remitted to the Department by a marketplace facilitator
8    under Section 2d of the Use Tax Act are exempt from tax
9    under this Act. A marketplace seller claiming this
10    exemption shall maintain books and records demonstrating
11    that the use tax on such sales has been collected and
12    remitted by a marketplace facilitator. Marketplace sellers
13    that have properly remitted tax under this Act on such
14    sales may file a claim for credit as provided in Section 6
15    of this Act. No claim is allowed, however, for such taxes
16    for which a credit or refund has been issued to the
17    marketplace facilitator under the Use Tax Act, or for
18    which the marketplace facilitator has filed a claim for
19    credit or refund under the Use Tax Act.
20        (46) Beginning July 1, 2022, breast pumps, breast pump
21    collection and storage supplies, and breast pump kits.
22    This item (46) is exempt from the provisions of Section
23    2-70. As used in this item (46):
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        (47) Tangible personal property sold by or on behalf
11    of the State Treasurer pursuant to the Revised Uniform
12    Unclaimed Property Act. This item (47) is exempt from the
13    provisions of Section 2-70.
14        (48) Beginning on January 1, 2024, tangible personal
15    property purchased by an active duty member of the armed
16    forces of the United States who presents valid military
17    identification and purchases the property using a form of
18    payment where the federal government is the payor. The
19    member of the armed forces must complete, at the point of
20    sale, a form prescribed by the Department of Revenue
21    documenting that the transaction is eligible for the
22    exemption under this paragraph. Retailers must keep the
23    form as documentation of the exemption in their records
24    for a period of not less than 6 years. "Armed forces of the
25    United States" means the United States Army, Navy, Air
26    Force, Space Force, Marine Corps, or Coast Guard. This

 

 

10400SB3229ham001- 303 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

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1            of the license period; this provision is deemed to
2            be met, in the case of a perpetual license,
3            without being set forth in the license agreement;
4            and
5            (2) property that is subject to a tax on lease
6        receipts imposed by a home rule unit of local
7        government if the ordinance imposing that tax was
8        adopted prior to January 1, 2023.
9(Source: P.A. 103-9, Article 5, Section 5-20, eff. 6-7-23;
10103-9, Article 15, Section 15-20, eff. 6-7-23; 103-154, eff.
116-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,
12eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;
13103-781, eff. 8-5-24; 103-995, eff. 8-9-24; 104-6, eff.
146-16-25; 104-417, eff. 8-15-25.)
 
15    (35 ILCS 120/2-10)  from Ch. 120, par. 441-10
16    Sec. 2-10. Rate of tax. Unless otherwise provided in this
17Section, the tax imposed by this Act is at the rate of 6.25% of
18gross receipts from sales, which, on and after January 1,
192025, includes leases, of tangible personal property made in
20the course of business.
21    Beginning on July 1, 2000 and through December 31, 2000,
22with respect to motor fuel, as defined in Section 1.1 of the
23Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
24the Use Tax Act, the tax is imposed at the rate of 1.25%.
25    Beginning on August 6, 2010 through August 15, 2010, and

 

 

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1beginning again on August 5, 2022 through August 14, 2022,
2with respect to sales tax holiday items as defined in Section
32-8 of this Act, the tax is imposed at the rate of 1.25%.
4    Within 14 days after July 1, 2000 (the effective date of
5Public Act 91-872), each retailer of motor fuel and gasohol
6shall cause the following notice to be posted in a prominently
7visible place on each retail dispensing device that is used to
8dispense motor fuel or gasohol in the State of Illinois: "As of
9July 1, 2000, the State of Illinois has eliminated the State's
10share of sales tax on motor fuel and gasohol through December
1131, 2000. The price on this pump should reflect the
12elimination of the tax." The notice shall be printed in bold
13print on a sign that is no smaller than 4 inches by 8 inches.
14The sign shall be clearly visible to customers. Any retailer
15who fails to post or maintain a required sign through December
1631, 2000 is guilty of a petty offense for which the fine shall
17be $500 per day per each retail premises where a violation
18occurs.
19    With respect to gasohol, as defined in the Use Tax Act, the
20tax imposed by this Act applies to (i) 70% of the proceeds of
21sales made on or after January 1, 1990, and before July 1,
222003, (ii) 80% of the proceeds of sales made on or after July
231, 2003 and on or before July 1, 2017, (iii) 100% of the
24proceeds of sales made after July 1, 2017 and prior to January
251, 2024, (iv) 90% of the proceeds of sales made on or after
26January 1, 2024 and on or before December 31, 2028, and (v)

 

 

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1100% of the proceeds of sales made after December 31, 2028. If,
2at any time, however, the tax under this Act on sales of
3gasohol, as defined in the Use Tax Act, is imposed at the rate
4of 1.25%, then the tax imposed by this Act applies to 100% of
5the proceeds of sales of gasohol made during that time.
6    With respect to mid-range ethanol blends, as defined in
7Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
8applies to (i) 80% of the proceeds of sales made on or after
9January 1, 2024 and on or before December 31, 2028 and (ii)
10100% of the proceeds of sales made after December 31, 2028. If,
11at any time, however, the tax under this Act on sales of
12mid-range ethanol blends is imposed at the rate of 1.25%, then
13the tax imposed by this Act applies to 100% of the proceeds of
14sales of mid-range ethanol blends made 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 proceeds of sales made on or after July 1, 2003 and on
18or before December 31, 2028 but applies to 100% of the proceeds
19of sales made thereafter.
20    With respect to biodiesel blends, as defined in the Use
21Tax Act, with no less than 1% and no more than 10% biodiesel,
22the tax imposed by this Act applies to (i) 80% of the proceeds
23of sales made on or after July 1, 2003 and on or before
24December 31, 2018 and (ii) 100% of the proceeds of sales made
25after December 31, 2018 and before January 1, 2024. On and
26after January 1, 2024 and on or before December 31, 2030, the

 

 

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1taxation of biodiesel, renewable diesel, and biodiesel blends
2shall be as provided in Section 3-5.1 of the Use Tax Act. If,
3at any time, however, the tax under this Act on sales of
4biodiesel blends, as defined in the Use Tax Act, with no less
5than 1% and no more than 10% biodiesel is imposed at the rate
6of 1.25%, then the tax imposed by this Act applies to 100% of
7the proceeds of sales of biodiesel blends with no less than 1%
8and no more than 10% biodiesel made during that time.
9    With respect to biodiesel, as defined in the Use Tax Act,
10and biodiesel blends, as defined in the Use Tax Act, with more
11than 10% but no more than 99% biodiesel, the tax imposed by
12this Act does not apply to the proceeds of sales made on or
13after July 1, 2003 and on or before December 31, 2023. On and
14after January 1, 2024 and on or before December 31, 2030, the
15taxation of biodiesel, renewable diesel, and biodiesel blends
16shall be as provided in Section 3-5.1 of the Use Tax Act.
17    Until July 1, 2022 and from July 1, 2023 through December
1831, 2025, with respect to food for human consumption that is to
19be consumed off the premises where it is sold (other than
20alcoholic beverages, food consisting of or infused with adult
21use cannabis, soft drinks, and food that has been prepared for
22immediate consumption), the tax is imposed at the rate of 1%.
23Beginning July 1, 2022 and until July 1, 2023, with respect to
24food for human consumption that is to be consumed off the
25premises where it is sold (other than alcoholic beverages,
26food consisting of or infused with adult use cannabis, soft

 

 

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

 

 

10400SB3229ham001- 310 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 311 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 312 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 313 -LRB104 19751 BDA 38627 a

1Alternative Patient Program participant as part of that
2individual's adequate medical supply from any dispensary that
3has been issued a Medical Cannabis Dispensing Organization
4license.    
5(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
6103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-417, eff.
78-15-25.)
 
8    (35 ILCS 120/11)  (from Ch. 120, par. 450)
9    Sec. 11. All information received by the Department from
10returns filed under this Act, or from any investigation
11conducted under this Act, shall be confidential, except for
12official purposes, and any person, including a third party as
13defined in the Local Government Revenue Recapture Act, who
14divulges any such information in any manner, except in
15accordance with a proper judicial order or as otherwise
16provided by law, including the Local Government Revenue
17Recapture Act, shall be guilty of a Class B misdemeanor with a
18fine not to exceed $7,500.
19    Nothing in this Act prevents the Director of Revenue from
20publishing or making available to the public the names and
21addresses of persons filing returns under this Act, or
22reasonable statistics concerning the operation of the tax by
23grouping the contents of returns so the information in any
24individual return is not disclosed.
25    Nothing in this Act prevents the Director of Revenue from

 

 

10400SB3229ham001- 314 -LRB104 19751 BDA 38627 a

1divulging to the United States Government or the government of
2any other state, or any officer or agency thereof, for
3exclusively official purposes, information received by the
4Department in administering this Act, provided that such other
5governmental agency agrees to divulge requested tax
6information to the Department.
7    The Department's furnishing of information derived from a
8taxpayer's return or from an investigation conducted under
9this Act to the surety on a taxpayer's bond that has been
10furnished to the Department under this Act, either to provide
11notice to such surety of its potential liability under the
12bond or, in order to support the Department's demand for
13payment from such surety under the bond, is an official
14purpose within the meaning of this Section.
15    The furnishing upon request of information obtained by the
16Department from returns filed under this Act or investigations
17conducted under this Act to the Illinois Liquor Control
18Commission for official use is deemed to be an official
19purpose within the meaning of this Section.
20    Notice to a surety of potential liability shall not be
21given unless the taxpayer has first been notified, not less
22than 10 days prior thereto, of the Department's intent to so
23notify the surety.
24    The furnishing upon request of the Auditor General, or his
25authorized agents, for official use, of returns filed and
26information related thereto under this Act is deemed to be an

 

 

10400SB3229ham001- 315 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 316 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 317 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 318 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 319 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 320 -LRB104 19751 BDA 38627 a

1have as few as one retailer reporting revenues for a given tax
2return type in any given reporting period.    
3    The Director shall make available for public inspection in
4the Department's principal office and for publication, at
5cost, administrative decisions issued on or after January 1,
61995. These decisions are to be made available in a manner so
7that the following taxpayer information is not disclosed:
8        (1) The names, addresses, and identification numbers
9    of the taxpayer, related entities, and employees.
10        (2) At the sole discretion of the Director, trade
11    secrets or other confidential information identified as
12    such by the taxpayer, no later than 30 days after receipt
13    of an administrative decision, by such means as the
14    Department shall provide by rule.
15    The Director shall determine the appropriate extent of the
16deletions allowed in paragraph (2). In the event the taxpayer
17does not submit deletions, the Director shall make only the
18deletions specified in paragraph (1).
19    The Director shall make available for public inspection
20and publication an administrative decision within 180 days
21after the issuance of the administrative decision. The term
22"administrative decision" has the same meaning as defined in
23Section 3-101 of Article III of the Code of Civil Procedure.
24Costs collected under this Section shall be paid into the Tax
25Compliance and Administration Fund.
26    Nothing contained in this Act shall prevent the Director

 

 

10400SB3229ham001- 321 -LRB104 19751 BDA 38627 a

1from divulging information to any person pursuant to a request
2or authorization made by the taxpayer or by an authorized
3representative of the taxpayer.
4    The furnishing of information obtained by the Department
5from returns filed under Public Act 101-10 to the Department
6of Transportation for purposes of compliance with Public Act
7101-10 regarding aviation fuel is deemed to be an official
8purpose within the meaning of this Section.
9    The Director may make information available to the
10Secretary of State for the purpose of administering Section
115-901 of the Illinois Vehicle Code.
12(Source: P.A. 101-10, eff. 6-5-19; 101-628, eff. 6-1-20;
13102-558, eff. 8-20-21; 102-941, eff. 7-1-22.)
 
14    Section 155. The Compassionate Use of Medical Cannabis
15Program Act is amended by changing Sections 7, 7-15, 10, 15,
1625, 30, 35, 57, 60, 62, 70, 75, 85, 100, 105, 115, 120, 130,
17145, 150, 173, 195, 200, and 210 as follows:
 
18    (410 ILCS 130/7)
19    Sec. 7. Lawful user and lawful products. For the purposes
20of this Act and to clarify the legislative findings on the
21lawful use of cannabis:
22        (1) A cardholder under this Act shall not be
23    considered an unlawful user or addicted to narcotics
24    solely as a result of his or her qualifying patient,

 

 

10400SB3229ham001- 322 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 323 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 324 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 325 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 326 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 327 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

10400SB3229ham001- 329 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

10400SB3229ham001- 331 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 332 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 333 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 334 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 335 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 336 -LRB104 19751 BDA 38627 a

1relating to the registration and oversight of dispensing
2organizations unless otherwise provided for in this Act.
3    (d) The Department of Public Health, the Department of
4Agriculture, or the Department of Financial and Professional
5Regulation shall enter into intergovernmental agreements, as
6necessary, to carry out the provisions of this Act including,
7but not limited to, the provisions relating to the
8registration and oversight of cultivation centers, dispensing
9organizations, and qualifying patients and caregivers.
10Beginning January 1, 2027, the Department of Public Health may
11enter into intergovernmental agreements, as necessary, to
12carry out the provisions of this Act, including, but not
13limited to, the provisions relating to qualifying patients and
14caregivers.    
15    (e) The Department of Public Health, the Department of
16Agriculture, or the Department of Financial and Professional
17Regulation may suspend, revoke, or impose other penalties upon
18a registration for violations of this Act and any rules
19adopted in accordance thereto. The suspension or revocation
20of, or imposition of any other penalty upon, a registration is
21a final Agency action, subject to judicial review.
22Jurisdiction and venue for judicial review are vested in the
23Circuit Court.
24(Source: P.A. 98-122, eff. 1-1-14; 98-1172, eff. 1-12-15;
2599-519, eff. 6-30-16.)
 

 

 

10400SB3229ham001- 337 -LRB104 19751 BDA 38627 a

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
26cannabis. A school nurse or school administrator is not

 

 

10400SB3229ham001- 338 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 339 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 340 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 341 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 342 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 343 -LRB104 19751 BDA 38627 a

1is conducted in conformity with the Illinois Constitution, the
2Constitution of the United States, and all State statutes.
3    (o) No individual employed by the State of Illinois shall
4be subject to criminal or civil penalties for taking any
5action in accordance with the provisions of this Act, when the
6actions are within the scope of his or her employment.
7Representation and indemnification of State employees shall be
8provided to State employees as set forth in Section 2 of the
9State Employee Indemnification Act.
10    (p) No law enforcement or correctional agency, nor any
11individual employed by a law enforcement or correctional
12agency, shall be subject to criminal or civil liability,
13except for willful and wanton misconduct, as a result of
14taking any action within the scope of the official duties of
15the agency or individual to prohibit or prevent the possession
16or use of cannabis by a cardholder or Opioid Alternative
17Patient Program participant incarcerated at a correctional
18facility, jail, or municipal lockup facility, on parole or
19mandatory supervised release, or otherwise under the lawful
20jurisdiction of the agency or individual.
21(Source: P.A. 101-363, eff. 8-19-19; 101-370, eff. 1-1-20;
22102-558, eff. 8-20-21.)
 
23    (410 ILCS 130/30)
24    Sec. 30. Limitations and penalties.
25    (a) This Act does not permit any person to engage in, and

 

 

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

 

 

10400SB3229ham001- 345 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

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

 

 

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1cannabis shall have his or her registry identification card
2revoked.
3    (g) No registered qualifying patient, provisional patient,    
4or designated caregiver, or Opioid Alternative Patient Program
5participant shall knowingly obtain, seek to obtain, or
6possess, individually or collectively, an amount of usable
7cannabis from a registered medical cannabis dispensing
8organization that would cause him or her to exceed the
9authorized adequate medical supply under subsection (a) of
10Section 10.
11    (h) Nothing in this Act shall prevent a private business
12from restricting or prohibiting the medical use of cannabis on
13its property.
14    (i) Nothing in this Act shall prevent a university,
15college, or other institution of post-secondary education from
16restricting or prohibiting the use of medical cannabis on its
17property.
18(Source: P.A. 101-363, eff. 8-9-19; 102-67, eff. 7-9-21.)
 
19    (410 ILCS 130/35)
20    Sec. 35. Certifying health care professional requirements.
21    (a) A certifying health care professional who certifies a
22debilitating medical condition for a qualifying patient shall
23comply with all of the following requirements:
24        (1) The certifying health care professional shall be
25    currently licensed under the Medical Practice Act of 1987

 

 

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

 

 

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

 

 

10400SB3229ham001- 351 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 352 -LRB104 19751 BDA 38627 a

1either that the registered qualifying patient has ceased to
2suffer from a debilitating medical condition; (2) that the
3bona fide health care professional-patient relationship has
4terminated; or (3) that continued use of medical cannabis
5would result in contraindication with the patient's other
6medication. The registered qualifying patient's registry
7identification card shall be revoked by the Department of
8Public Health after receiving the certifying health care
9professional's notification.
10    (f) Nothing in this Act shall preclude a certifying health
11care professional from referring a patient for health
12services, except when the referral is limited to certification
13purposes only, under this Act.
14(Source: P.A. 101-363, eff. 8-9-19; 102-558, eff. 8-20-21.)
 
15    (410 ILCS 130/57)
16    Sec. 57. Designated caregivers Qualifying patients.     
17    (a) Qualifying patients or provisional patients that are
18under the age of 18 years shall not be prohibited from
19appointing up to 3 designated caregivers who meet the
20definition of "designated caregiver" under Section 10 so long
21as at least one designated caregiver is a biological parent or
22legal guardian.
23    (b) Qualifying patients and provisional patients that are
2418 years of age or older shall not be prohibited from
25appointing up to 3 designated caregivers who meet the

 

 

10400SB3229ham001- 353 -LRB104 19751 BDA 38627 a

1definition of "designated caregiver" under Section 10.
2    (c) Beginning 90 days after the effective date of this
3amendatory Act of the 104th General Assembly, designated
4caregivers, qualifying patients, provisions patients, and
5Opioid Alternative Patient Program participants registered
6under this Act may purchase an adequate medical supply at any
7dispensing organization that has been issued a Medical
8Cannabis Dispensing Organization license by the Department of
9Financial and Professional Regulation pursuant to Section
1015-37 of the Cannabis Regulation and Tax Act.    
11(Source: P.A. 101-363, eff. 8-9-19.)
 
12    (410 ILCS 130/60)
13    Sec. 60. Issuance of registry identification cards.
14    (a) Except as provided in subsection (b), the Department
15of Public Health shall:
16        (1) verify the information contained in an application
17    or renewal for a registry identification card submitted
18    under this Act, and approve or deny an application or
19    renewal, within 90 days of receiving a completed
20    application or renewal application and all supporting
21    documentation specified in Section 55;
22        (2) issue registry identification cards to a
23    qualifying patient and his or her designated caregiver, if
24    any, within 15 business days of approving the application
25    or renewal; and    

 

 

10400SB3229ham001- 354 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 355 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 356 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 357 -LRB104 19751 BDA 38627 a

1of Public Health, or the Illinois Department of Human
2Services, or (iii) to support other medical research into the
3effects of medical cannabis, so long as the data are readily
4available, the requesting organization has standing as a
5research institution, the research is approved by the
6Department's Institutional Review Board and is compliant with
7data governance, privacy regulations, including 45 CFR
8164.512(i), as applicable, and other requirements as
9determined by the Department, and the identifying information
10of registered qualifying patients is removed after being used
11to match with other datasets. All research must protect and
12maintain the anonymity of medical cannabis patients and shall
13include only data related to patients who submitted initial
14applications after the effective date of this amendatory Act
15of the 104th General Assembly.    
16(Source: P.A. 100-1114, eff. 8-28-18; 101-363, eff. 8-9-19;
17101-593, eff. 12-4-19.)
 
18    (410 ILCS 130/62)
19    Sec. 62. Opioid Alternative Patient Pilot Program.    
20    (a) The Department of Public Health shall establish the
21Opioid Alternative Patient Pilot Program. Licensed dispensing
22organizations shall allow persons with a written certification
23from a certifying health care professional under Section 36 to
24purchase medical cannabis upon enrollment in the Opioid
25Alternative Patient Pilot Program. The Department of Public

 

 

10400SB3229ham001- 358 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 359 -LRB104 19751 BDA 38627 a

1Financial and Professional Regulation, the Department of
2Public Health, and the Illinois State Police in the Illinois
3Cannabis Tracking System.
4    The Illinois Cannabis Tracking System shall be accessible
5to the Department of Financial and Professional Regulation,
6Department of Public Health, Department of Agriculture, and
7the Illinois State Police.
8    The Department of Financial and Professional Regulation in
9collaboration with the Department of Public Health shall
10specify the data requirements for the Opioid Alternative
11Patient Pilot Program by licensed dispensing organizations;
12including, but not limited to, the participant's full legal
13name, address, and date of birth, date on which the Opioid
14Alternative Patient Pilot Program certification was issued,
15length of the participation in the Program, including the
16start and end date to purchase medical cannabis, name of the
17issuing physician, copy of the participant's current driver's
18license or State identification card, and phone number.
19    The Illinois Cannabis Tracking System shall provide
20verification of a person's participation in the Opioid
21Alternative Patient Pilot Program for law enforcement at any
22time and on any day.
23    (d) The certification for Opioid Alternative Patient Pilot    
24Program participant must be issued by a certifying health care
25professional who is licensed to practice in Illinois under the
26Medical Practice Act of 1987, the Nurse Practice Act, or the

 

 

10400SB3229ham001- 360 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 361 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 362 -LRB104 19751 BDA 38627 a

1requirements as determined by the Department. All research
2must protect and maintain the anonymity of medical cannabis
3patients and shall include only data related to patients who
4have provided consent. The Department shall adopt rules to
5define a bona fide agent, the application process,
6confidentiality protections, and any other requirements it
7deems necessary for the implementation of this Section.    
8    (f) An Opioid Alternative Patient Pilot Program
9participant shall not be considered a qualifying patient with
10a debilitating medical condition under this Act and shall be
11provided access to medical cannabis solely for the duration of
12the participant's certification. Nothing in this Section shall
13be construed to limit or prohibit an Opioid Alternative
14Patient Pilot Program participant who has a debilitating
15medical condition from applying to the Compassionate Use of
16Medical Cannabis Program.
17    (g) A person with a provisional registration under Section
1855 shall not be considered an Opioid Alternative Patient Pilot    
19Program participant.
20    (h) (Blank). The Department of Financial and Professional
21Regulation and the Department of Public Health shall submit
22emergency rulemaking to implement the changes made by this
23amendatory Act of the 100th General Assembly by December 1,
242018. The Department of Financial and Professional Regulation,
25the Department of Agriculture, the Department of Human
26Services, the Department of Public Health, and the Illinois

 

 

10400SB3229ham001- 363 -LRB104 19751 BDA 38627 a

1State Police shall utilize emergency purchase authority for 12
2months after the effective date of this amendatory Act of the
3100th General Assembly for the purpose of implementing the
4changes made by this amendatory Act of the 100th General
5Assembly.    
6    (i) Dispensing organizations are not authorized to
7dispense medical cannabis to Opioid Alternative Patient Pilot    
8Program participants until administrative rules are approved
9by the Joint Committee on Administrative Rules and go into
10effect.
11    (j) (Blank). The provisions of this Section are
12inoperative on and after July 1, 2025.    
13(Source: P.A. 101-363, eff. 8-9-19; 102-16, eff. 6-17-21.)
 
14    (410 ILCS 130/70)
15    Sec. 70. Registry identification cards.
16    (a) A registered qualifying patient or designated
17caregiver must keep their registry identification card in his
18or her possession at all times when engaging in the medical use
19of cannabis.
20    (b) Registry identification cards shall contain the
21following:
22        (1) the name of the cardholder;
23        (2) a designation of whether the cardholder is a
24    designated caregiver or qualifying patient;
25        (3) the date of issuance and expiration date of the

 

 

10400SB3229ham001- 364 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

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

 

 

10400SB3229ham001- 367 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

10400SB3229ham001- 373 -LRB104 19751 BDA 38627 a

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; and
4        (4) a photograph of the cardholder.
5    (d) The cultivation center agent identification cards
6shall be immediately returned to the cultivation center upon
7termination of employment.
8    (e) Any card lost by a cultivation center agent shall be
9reported to the Illinois State Police and the Department of
10Agriculture immediately upon discovery of the loss.
11    (f) (Blank). An applicant shall be denied a cultivation
12center agent identification card if he or she has been
13convicted of an excluded offense.    
14    (g) An agent applicant may begin employment at a
15cultivation center while the agent applicant's identification
16card application is pending. Upon approval, the Department
17shall issue the agent's identification card to the agent. If
18denied, the cultivation center and the agent applicant shall
19be notified and the agent applicant must cease all activity at
20the cultivation center immediately.
21(Source: P.A. 102-98, eff. 7-15-21; 102-538, eff. 8-20-21;
22102-813, eff. 5-13-22.)
 
23    (410 ILCS 130/105)
24    Sec. 105. Requirements; prohibitions; penalties for
25cultivation centers.

 

 

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

 

 

10400SB3229ham001- 375 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 376 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 377 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 378 -LRB104 19751 BDA 38627 a

1        Security, that is more than 120% of the national
2        unemployment average, as determined by the United
3        States Department of Labor, for a period of at least 2
4        consecutive calendar years preceding the date of the
5        application; and
6        (2) has high rates of arrest, conviction, and
7    incarceration related to sale, possession, use,
8    cultivation, manufacture, or transport of cannabis.
9    "Qualifying Applicant" means an applicant that: (i)
10submitted an application pursuant to Section 15-30 of the
11Cannabis Regulation and Tax Act that received at least 85% of
12250 application points available under Section 15-30 of the
13Cannabis Regulation and Tax Act as the applicant's final
14score; (ii) received points at the conclusion of the scoring
15process for meeting the definition of a "Social Equity
16Applicant" as set forth under the Cannabis Regulation and Tax
17Act; and (iii) is an applicant that did not receive a
18Conditional Adult Use Dispensing Organization License through
19a Qualifying Applicant Lottery pursuant to Section 15-35 of
20the Cannabis Regulation and Tax Act or any Tied Applicant
21Lottery conducted under the Cannabis Regulation and Tax Act.
22    "Social Equity Justice Involved Applicant" means an
23applicant that is an Illinois resident and one of the
24following:
25        (1) an applicant with at least 51% ownership and
26    control by one or more individuals who have resided for at

 

 

10400SB3229ham001- 379 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 380 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 381 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 382 -LRB104 19751 BDA 38627 a

1organization agents who are employed at any dispensing
2organization issued an Adult Use Dispensing Organization
3License and a corresponding Medical Cannabis Dispensing
4Organization License under Section 15-37 of the Cannabis
5Regulation and Tax Act.    
6    (a-5) The Department of Financial and Professional
7Regulation shall:
8        (1) verify the information contained in an application
9    or renewal for a dispensing organization agent
10    identification card submitted under this Act, and approve
11    or deny an application or renewal, within 30 days of
12    receiving a completed application or renewal application
13    and all supporting documentation required by rule;
14        (2) issue a dispensing organization agent
15    identification card to a qualifying agent within 15
16    business days of approving the application or renewal;
17        (3) enter the registry identification number of the
18    dispensing organization where the agent works; and
19        (4) allow for an electronic application process, and
20    provide a confirmation by electronic or other methods that
21    an application has been submitted.
22    (b) A dispensing agent must keep his or her identification
23card visible at all times when on the property of a dispensing
24organization.
25    (c) The dispensing organization agent identification cards
26shall contain the following:

 

 

10400SB3229ham001- 383 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 384 -LRB104 19751 BDA 38627 a

1documents which shall include procedures for the oversight of
2the registered dispensing organization and procedures to
3ensure accurate recordkeeping.
4    (c) A dispensing organization shall implement appropriate
5security measures, as provided by rule, to deter and prevent
6the theft of cannabis and unauthorized entrance into areas
7containing cannabis.
8    (d) A dispensing organization may not be located within
91,000 feet of the property line of a pre-existing public or
10private preschool or elementary or secondary school or day
11care center, day care home, group day care home, or part day
12child care facility. A registered dispensing organization may
13not be located in a house, apartment, condominium, or an area
14zoned for residential use. This subsection shall not apply to
15any dispensing organizations registered on or after July 1,
162019.
17    (e) A dispensing organization is prohibited from acquiring
18cannabis from anyone other than a cultivation center, craft
19grower, infuser organization processing organization, another
20dispensing organization, or transporting organization licensed
21or registered under this Act or the Cannabis Regulation and
22Tax Act. A dispensing organization is prohibited from
23obtaining cannabis from outside the State of Illinois.
24    (f) A registered dispensing organization is prohibited
25from dispensing cannabis for any purpose except to assist
26registered qualifying patients with the medical use of

 

 

10400SB3229ham001- 385 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 386 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 387 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 388 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 389 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 390 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 391 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

10400SB3229ham001- 393 -LRB104 19751 BDA 38627 a

1Act. This list shall be published and updated monthly.
2    (c) (Blank). Except for any ownership information released
3pursuant to subsection (b-5) or as otherwise authorized or
4required by law, it is a Class B misdemeanor with a $1,000 fine
5for any person, including an employee or official of the
6Department of Public Health, Department of Financial and
7Professional Regulation, or Department of Agriculture or
8another State agency or local government, to breach the
9confidentiality of information obtained under this Act.    
10    (d) The Department of Public Health, the Department of
11Agriculture, the Illinois State Police, and the Department of
12Financial and Professional Regulation shall not share or
13disclose any existing or non-existing Illinois or national
14criminal history record information. For the purposes of this
15Section, "any existing or non-existing Illinois or national
16criminal history record information" means any Illinois or
17national criminal history record information, including but
18not limited to the lack of or non-existence of these records.
19(Source: P.A. 101-363, eff. 8-9-19; 102-98, eff. 7-15-21;
20102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)
 
21    (410 ILCS 130/150)
22    Sec. 150. Registry identification and registration
23certificate verification.
24    (a) The Department of Public Health shall maintain a
25confidential list of the persons to whom the Department of

 

 

10400SB3229ham001- 394 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 395 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 396 -LRB104 19751 BDA 38627 a

1    "Cultivation center" has the meaning ascribed to that term
2in the Compassionate Use of Medical Cannabis Program Act.
3    "Department" means the Department of Revenue.
4    "Dispensing organization" has the meaning ascribed to that
5term in the Compassionate Use of Medical Cannabis Program Act.
6    "Gross receipts" means the total selling price, or the
7amount of sale, as defined in this Article, except that, in the
8case of charges and time sales, the amount thereof shall be
9included only when payments are received by the cultivator of
10medical cannabis, by a cultivator.    
11    "Person" means an individual, partnership, corporation, or
12public or private organization.
13    "Qualifying patient" means a qualifying patient registered
14under the Compassionate Use of Medical Cannabis Program Act.
15    "Selling price" or "amount of sale" means the
16consideration for a sale valued in money, whether received in
17money or otherwise, including cash, credits, property, or
18services, determined without any deduction on account of the
19cost of the property sold, the cost of materials used, labor or
20service cost, or any other expense whatsoever. "Selling price"
21or "amount of sale" does not include separately stated charges
22identified on the invoice by cultivators to reimburse
23themselves for their tax liability.    
24(Source: P.A. 101-363, eff. 8-9-19.)
 
25    (410 ILCS 130/200)

 

 

10400SB3229ham001- 397 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 398 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 399 -LRB104 19751 BDA 38627 a

1the return shall be considered valid and any amount shown to be
2due on the return shall be deemed assessed.
3    The taxpayer shall remit the amount of the tax due to the
4Department at the time the taxpayer files his or her return.
5    (b) Beginning on the effective date of this amendatory Act
6of the 101st General Assembly, Section 60-20 65-20 of the
7Cannabis Regulation and Tax Act shall apply to returns filed
8and taxes paid under this Act to the same extent as if those
9provisions were set forth in full in this Section.
10(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
11    (410 ILCS 130/115.5 rep.)
12    Section 160. The Compassionate Use of Medical Cannabis
13Program Act is amended by repealing Section 115.5.
 
14    Section 165. The Cannabis Regulation and Tax Act is
15amended by changing Sections 1-10, 7-10, 7-15, 7-20, 10-10,
1610-15, 15-10, 15-15, 15-20, 15-25, 15-35, 15-35.10, 15-36,
1715-40, 15-45, 15-70, 15-85, 15-100, 15-135, 15-145, 15-155,
1820-10, 20-15, 20-30, 20-35, 20-45, 25-35, 30-10, 30-30, 30-35,
1930-45, 35-25, 35-30, 35-40, 40-5, 40-25, 40-30, 45-5, 50-5,
2055-5, 55-21, 55-30, 55-65, 55-85, 60-5, 60-10, 65-5, 65-10,
2165-30, 65-38, and 65-42 and by adding Sections 15-24, 15-37,
2220-60, 35-18, 40-50, and 55-22 as follows:
 
23    (410 ILCS 705/1-10)

 

 

10400SB3229ham001- 400 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 401 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 402 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 403 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 404 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 405 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 406 -LRB104 19751 BDA 38627 a

1    "Conditional Adult Use Cultivation Center License" means a
2license awarded to top-scoring applicants for an Adult Use
3Cultivation Center License that reserves the right to an Adult
4Use Cultivation Center License if the applicant meets certain
5conditions as determined by the Department of Agriculture by
6rule, but does not entitle the recipient to begin growing,
7processing, or selling cannabis or cannabis-infused products.
8    "Craft grower" means a facility operated by an
9organization or business that is licensed by the Department of
10Agriculture to cultivate, dry, cure, and package cannabis and
11perform other necessary activities to make cannabis available
12for sale at a dispensing organization or use at an infuser a
13processing organization. A craft grower may contain up to
1414,000 5,000 square feet of canopy space on its premises for
15plants in the flowering state. The Department of Agriculture
16may authorize an increase or decrease of flowering stage
17cultivation space in increments of 3,000 square feet by rule
18based on market need, craft grower capacity, and the
19licensee's history of compliance or noncompliance, with a
20maximum space of 14,000 square feet for cultivating plants in
21the flowering stage, which must be cultivated in all stages of
22growth in an enclosed and secure area. A craft grower may share
23premises with an infuser a processing organization or a
24dispensing organization, or both, provided each licensee
25stores currency and cannabis or cannabis-infused products in a
26separate secured vault to which the other licensee does not

 

 

10400SB3229ham001- 407 -LRB104 19751 BDA 38627 a

1have access or all licensees sharing a vault share more than
250% of the same ownership.
3    "Craft grower agent" means a principal officer, board
4member, employee, or other agent of a craft grower who is 21
5years of age or older.
6    "Craft Grower Agent Identification Card" means a document
7issued by the Department of Agriculture that identifies a
8person as a craft grower agent.
9    "Cultivation center" means a facility operated by an
10organization or business that is licensed by the Department of
11Agriculture to cultivate, process, transport (unless otherwise
12limited by this Act), and perform other necessary activities
13to provide cannabis and cannabis-infused products to cannabis
14business establishments.
15    "Cultivation center agent" means a principal officer,
16board member, employee, or other agent of a cultivation center
17who is 21 years of age or older.
18    "Cultivation Center Agent Identification Card" means a
19document issued by the Department of Agriculture that
20identifies a person as a cultivation center agent.
21    "Currency" means currency and coin of the United States.
22    "Designated caregiver" means a person who assists no more
23than one registered qualifying patient with the patient's
24medical use of cannabis, except the parent or legal guardian
25of a registered qualifying patient may assist each of their
26children who are registered qualifying patients.    

 

 

10400SB3229ham001- 408 -LRB104 19751 BDA 38627 a

1    "Dispensary" means a facility operated by a dispensing
2organization at which activities licensed by this Act may
3occur.
4    "Dispensary Applicant" means the Proposed Dispensing
5Organization Name as stated on an application for a
6Conditional Adult Use Dispensing Organization License.
7    "Dispensing organization" or "dispensary" means a facility
8operated by an organization or business that is licensed by
9the Department of Financial and Professional Regulation to
10acquire cannabis from a cultivation center, craft grower, or
11infuser processing organization licensed by the Department of
12Agriculture, or another dispensary licensed by the Department
13of Financial and Professional Regulation, for the purpose of
14selling or dispensing cannabis, cannabis-infused products,
15cannabis seeds, paraphernalia, or related supplies under this
16Act to purchasers or to qualified registered medical cannabis
17patients and caregivers. As used in this Act, "dispensing
18organization" or "dispensary" includes a registered medical
19cannabis organization as defined in the Compassionate Use of
20Medical Cannabis Program Act or its successor Act that has
21obtained an Early Approval Adult Use Dispensing Organization
22License or Early Approval Adult Use Dispensing Organization
23License at a Secondary Site, or an entity that has obtained a
24Medical Cannabis Dispensing Organization License under Section
2515-37 of this Act.
26    "Dispensing organization agent" means a principal officer,

 

 

10400SB3229ham001- 409 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 410 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 411 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 412 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 413 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 414 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 415 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 416 -LRB104 19751 BDA 38627 a

1private corporation, limited liability company, or a receiver,
2executor, trustee, guardian, or other representative appointed
3by order of any court.
4    "Possession limit" means the amount of cannabis under
5Section 10-10 that may be possessed at any one time by a person
621 years of age or older or who is a registered qualifying
7medical cannabis patient, designated or caregiver, provisional
8patient, or Opioid Alternative Patient Program participant    
9under the Compassionate Use of Medical Cannabis Program Act.
10    "Primary residence" means a dwelling where a person
11usually stays or stays more often than other locations. It may
12be determined by, without limitation, presence, tax filings,
13address on an Illinois driver's license, an Illinois
14Identification Card, an Illinois Person with a Disability
15Identification Card, or voter registration. No person may have
16more than one primary residence.
17    "Principal officer" includes a cannabis business
18establishment applicant or licensed cannabis business
19establishment's board member, owner with more than 5% 1%    
20interest of the total cannabis business establishment or more
21than 5% interest of the total cannabis business establishment
22of a publicly traded company, president, vice president,
23secretary, treasurer, partner, officer, member, manager
24member, or person with a profit sharing, financial interest,
25or revenue sharing arrangement. The definition includes a
26person with authority to control the cannabis business

 

 

10400SB3229ham001- 417 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 418 -LRB104 19751 BDA 38627 a

1a document issued by the Department of Agriculture that
2identifies a person as a processing organization agent.
3    "Purchaser" means a person 21 years of age or older who
4acquires cannabis for a valuable consideration. "Purchaser"
5includes does not include a cardholder under the Compassionate
6Use of Medical Cannabis Program Act using the cardholder's
7card at a dispensing organization that is authorized to serve
8registered qualifying patients, provisional patients,
9designated caregivers, and Opioid Alternative Patient Program
10participants.
11    "Qualifying Applicant" means an applicant that submitted
12an application pursuant to Section 15-30 that received at
13least 85% of 250 application points available under Section
1415-30 as the applicant's final score and meets the definition
15of "Social Equity Applicant" as set forth under this Section.
16    "Qualifying patient" or "qualified patient" means a person
17who has been diagnosed by a certifying health care
18professional as having a debilitating medical condition as
19defined under the Compassionate Use of Medical Cannabis
20Program Act.    
21    "Qualifying Social Equity Justice Involved Applicant"
22means an applicant that submitted an application pursuant to
23Section 15-30 that received at least 85% of 250 application
24points available under Section 15-30 as the applicant's final
25score and meets the criteria of either paragraph (1) or (2) of
26the definition of "Social Equity Applicant" as set forth under

 

 

10400SB3229ham001- 419 -LRB104 19751 BDA 38627 a

1this Section.
2    "Qualified Social Equity Applicant" means a Social Equity
3Applicant who has been awarded a conditional license under
4this Act to operate a cannabis business establishment.
5    "Resided" means an individual's primary residence was
6located within the relevant geographic area as established by
72 of the following:
8        (1) a signed lease agreement that includes the
9    applicant's name;
10        (2) a property deed that includes the applicant's
11    name;
12        (3) school records;
13        (4) a voter registration card;
14        (5) an Illinois driver's license, an Illinois
15    Identification Card, or an Illinois Person with a
16    Disability Identification Card;
17        (6) a paycheck stub;
18        (7) a utility bill;
19        (8) tax records; or
20        (9) any other proof of residency or other information
21    necessary to establish residence as provided by rule.
22    "Smoking" means the inhalation of smoke caused by the
23combustion of cannabis.
24    "Social Equity Applicant" means an applicant that is an
25Illinois resident that meets one of the following criteria:
26        (1) an applicant with at least 51% ownership and

 

 

10400SB3229ham001- 420 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 421 -LRB104 19751 BDA 38627 a

1    "Social Equity Lottery Licensee" means a holder of an
2adult use cannabis dispensary license or a conditional adult
3use cannabis dispensary license awarded through a lottery held
4under subsection (c) of Section 15-35.20 of this Act.    
5    "Tied Applicant" means an application submitted by a
6Dispensary Applicant pursuant to Section 15-30 that received
7the same number of application points under Section 15-30 as
8the Dispensary Applicant's final score as one or more
9top-scoring applications in the same BLS Region and would have
10been awarded a license but for the one or more other
11top-scoring applications that received the same number of
12application points. Each application for which a Dispensary
13Applicant was required to pay a required application fee for
14the application period ending January 2, 2020 shall be
15considered an application of a separate Tied Applicant.
16    "Tied Applicant Lottery" means the process established
17under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
18Use Dispensing Organization Licenses pursuant to Sections
1915-25 and 15-30 among Eligible Tied Applicants.
20    "Tincture" means a cannabis-infused solution, typically
21comprised of alcohol, glycerin, or vegetable oils, derived
22either directly from the cannabis plant or from a processed
23cannabis extract. A tincture is not an alcoholic liquor as
24defined in the Liquor Control Act of 1934. A tincture shall
25include a calibrated dropper or other similar device capable
26of accurately measuring servings.

 

 

10400SB3229ham001- 422 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 423 -LRB104 19751 BDA 38627 a

1    produce cannabis.
2(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
3102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
45-13-22.)
 
5    (410 ILCS 705/7-10)
6    Sec. 7-10. Cannabis Business Development Fund.
7    (a) There is created in the State treasury a special fund,
8which shall be held separate and apart from all other State
9moneys, to be known as the Cannabis Business Development Fund.
10The Cannabis Business Development Fund shall be exclusively
11used for the following purposes:
12        (1) to provide low-interest rate loans to Qualified
13    Social Equity Applicants and holders of a conditional or
14    adult use dispensing organization license issued pursuant
15    to Section 15-25, 15-35, or 15-35.10 or subsection (c) of
16    Section 15-35.20 to pay for ordinary and necessary
17    expenses to start and operate a cannabis business
18    establishment permitted by this Act, so long as the entity
19    meets the definition of a "Social Equity Applicant"
20    pursuant to Section 1-10; the Department of Commerce and
21    Economic Opportunity may review that an applicant for a
22    loan continues to meet the statutory definition of a
23    "Social Equity Applicant";
24        (2) to provide grants to Qualified Social Equity
25    Applicants and holders of a conditional or adult use

 

 

10400SB3229ham001- 424 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 425 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 426 -LRB104 19751 BDA 38627 a

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

 

 

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1provided for by law, on July 1, 2023, or as soon thereafter as
2practical, the State Comptroller shall direct and the State
3Treasurer shall transfer the sum of $40,000,000 from the
4Compassionate Use of Medical Cannabis Fund to the Cannabis
5Business Development Fund.
6    (d) Notwithstanding any other law to the contrary, the
7Cannabis Business Development Fund is not subject to sweeps,
8administrative charge-backs, or any other fiscal or budgetary
9maneuver that would in any way transfer any amounts from the
10Cannabis Business Development Fund into any other fund of the
11State.
12(Source: P.A. 103-8, eff. 6-7-23.)
 
13    (410 ILCS 705/7-15)
14    Sec. 7-15. Loans, financial assistance, and grants to
15Qualified Social Equity Applicants and Social Equity Lottery
16Licensees.
17    (a) The Department of Commerce and Economic Opportunity
18shall establish grant, and loan, and financial assistance    
19programs, subject to appropriations from the Cannabis Business
20Development Fund, for the purposes of providing financial
21assistance, loans, grants, and technical assistance to
22Qualified Social Equity Applicants and holders of a
23conditional or adult use dispensing organization licenses
24issued pursuant to Section 15-25, 15-35, 15-35.10, or
25subsection (c) of Section 15-35.20, so long as the entity

 

 

10400SB3229ham001- 428 -LRB104 19751 BDA 38627 a

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

 

 

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1    fees, charges, costs and expenses, including application
2    fees, commitment fees, program fees, financing charges, or
3    publication fees in connection with its activities under
4    this Section;
5        (4) coordinate assistance under the financial
6    assistance these loan programs with activities of the
7    Illinois Department of Financial and Professional
8    Regulation, the Illinois Department of Agriculture, and
9    other agencies as needed to maximize the effectiveness and
10    efficiency of this Act;
11        (5) provide staff, administration, and related support
12    required to administer this Section;
13        (6) take whatever actions are necessary or appropriate
14    to protect the State's interest in the event of
15    bankruptcy, default, foreclosure, or noncompliance with
16    the terms and conditions of financial assistance provided
17    under this Section, including the ability to recapture
18    funds if the recipient is found to be noncompliant with
19    the terms and conditions of the financial assistance
20    agreement;
21        (6.5) enter into financial intermediary agreements and
22    charge fees to financial institutions required to
23    facilitate lending to or investment in Qualified Social
24    Equity Applicants and holders of a conditional or adult
25    use dispensing organization licenses issued pursuant to
26    Section 15-25, 15-35, 15-35.10, or subsection (c) of

 

 

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

 

 

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

 

 

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1Social Equity Applicants, Qualified Social Equity Applicants,
2and holders of a conditional or adult use dispensing
3organization license issued pursuant to Section 15-25, 15-35,
415-35.10, or subsection (c) of Section 15-35.20, so long as
5the entity meets the definition of a "Social Equity Applicant"
6pursuant to Section 1-10 and the Department of Commerce and
7Economic Opportunity may review that an applicant for a loan
8continues to meet the statutory definition of a "Social Equity
9Applicant", as well as including promotion of job training and
10workforce development, and technical assistance to Social
11Equity Applicants, Qualified Social Equity Applicants, and
12holders of a conditional or adult use dispensing organization
13licenses issued pursuant to Section 15-25, 15-35, 15-35.10, or
14subsection (c) of Section 15-35.20, so long as the entity
15meets the definition of a "Social Equity Applicant" pursuant
16to Section 1-10 and the Department of Commerce and Economic
17Opportunity may review that an applicant for a loan continues
18to meet the statutory definition of a "Social Equity
19Applicant".
20    (d-5) Financial intermediary agreements to provide
21financial assistance must further the goals set forth in this
22Act and shall result in financing or lease costs that are
23affordable or below market rate.    
24    (e) Beginning January 1, 2021 and each year thereafter,
25the Department shall annually report to the Governor and the
26General Assembly on the outcomes and effectiveness of this

 

 

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

 

 

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

 

 

10400SB3229ham001- 435 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

10400SB3229ham001- 437 -LRB104 19751 BDA 38627 a

1possess an amount of cannabis from a dispensing organization
2or craft grower that would cause him or her to exceed the
3possession limit under this Section, including cannabis that
4is cultivated by a person under this Act or obtained as a
5qualified registered medical patient, provisional patient,
6designated caregiver, or Opioid Alternative Patient Program
7participant.
8    (d-1) No qualified patient, provisional patient,
9designated caregiver, or Opioid Alternative Patient Program
10participant shall knowingly obtain, seek to obtain, or
11possess, individually or collectively, an amount that would
12cause the individual to exceed that individual's adequate
13medical supply under the Compassionate Use of Medical Cannabis
14Program Act.
15    (e) (Blank). Cannabis and cannabis-derived substances
16regulated under the Industrial Hemp Act are not covered by
17this Act.    
18(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
19    (410 ILCS 705/10-15)
20    Sec. 10-15. Persons under 21 years of age.
21    (a) Nothing in this Act is intended to permit the transfer
22of cannabis, with or without remuneration, to a person under
2321 years of age, or to allow a person under 21 years of age to
24purchase, possess, use, process, transport, grow, or consume
25cannabis except where authorized by this Act, the

 

 

10400SB3229ham001- 438 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 439 -LRB104 19751 BDA 38627 a

1watercraft under his or her control to be used in violation of
2this Section if he or she knowingly authorizes or permits
3consumption of cannabis by underage invitees. Any person who
4violates this subsection (d) is guilty of a Class A
5misdemeanor and the person's sentence shall include, but shall
6not be limited to, a fine of not less than $500. If a violation
7of this subsection (d) directly or indirectly results in great
8bodily harm or death to any person, the person violating this
9subsection is guilty of a Class 4 felony. In this subsection
10(d), where the residence or other property has an owner and a
11tenant or lessee, the trier of fact may infer that the
12residence or other property is occupied only by the tenant or
13lessee.
14(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
15    (410 ILCS 705/15-10)
16    Sec. 15-10. Medical cannabis dispensing organization
17exemption. Beginning 90 days after the effective date of this
18amendatory Act of the 104th General Assembly, this This    
19Article does not apply to medical cannabis dispensing
20organizations registered pursuant to Section 15-15 or Section
2115-37 of this Act under the Compassionate Use of Medical
22Cannabis Pilot Program Act, except where otherwise specified.
23(Source: P.A. 101-27, eff. 6-25-19.)
 
24    (410 ILCS 705/15-15)

 

 

10400SB3229ham001- 440 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

10400SB3229ham001- 442 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

10400SB3229ham001- 444 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 445 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 446 -LRB104 19751 BDA 38627 a

1Organization License may begin selling cannabis,
2cannabis-infused products, paraphernalia, and related items to
3purchasers under the rules of this Act no sooner than January
41, 2020.
5    (h) A dispensing organization holding a medical cannabis
6dispensing organization license issued under the Compassionate
7Use of Medical Cannabis Program Act must maintain an adequate
8supply of cannabis and cannabis-infused products for purchase
9by qualifying patients, designated caregivers, provisional
10patients, and Opioid Alternative Patient Pilot Program
11participants. For the purposes of this subsection, "adequate
12supply" means a monthly inventory level that is comparable in
13type and quantity to those medical cannabis products provided
14to patients and caregivers on an average monthly basis for the
156 months before the effective date of this Act.
16    (i) If there is a shortage of cannabis or cannabis-infused
17products, a dispensing organization holding both a dispensing
18organization license under the Compassionate Use of Medical
19Cannabis Program Act and this Act shall prioritize serving
20qualifying patients, designated caregivers, provisional
21patients, and Opioid Alternative Patient Pilot Program
22participants before serving purchasers.
23    (j) Notwithstanding any law or rule to the contrary, a
24person that holds a medical cannabis dispensing organization
25license issued under the Compassionate Use of Medical Cannabis
26Program Act and an Early Approval Adult Use Dispensing

 

 

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

 

 

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

 

 

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1dispensing organization agent identification card issued under
2the Compassionate Use of Medical Cannabis Program Act and is
3an officer, director, manager, or employee of the dispensing
4organization licensed under this Section may engage in all
5activities authorized by this Article to be performed by a
6dispensing organization agent.
7    (o) If the Department suspends, permanently revokes, or
8otherwise disciplines the Early Approval Adult Use Dispensing
9Organization License of a dispensing organization that also
10holds a medical cannabis dispensing organization license
11issued under the Compassionate Use of Medical Cannabis Program
12Act, the Department may consider the suspension, permanent
13revocation, or other discipline of the medical cannabis
14dispensing organization license.
15    (p) All fees collected pursuant to this Section shall be
16deposited into the Cannabis Regulation Fund, unless otherwise
17specified.
18    (q) Beginning 90 days after the effective date of this
19amendatory Act of the 104th General Assembly, the Department
20may update any existing Early Approval Adult Use Dispensing
21Organization License to become both an Adult Use Dispensing
22Organization License issued under Section 15-36 and a
23corresponding Medical Cannabis Dispensing Organization License
24under Section 15-37.    
25(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
26102-98, eff. 7-15-21.)
 

 

 

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

 

 

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

 

 

10400SB3229ham001- 452 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

10400SB3229ham001- 454 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

10400SB3229ham001- 456 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 457 -LRB104 19751 BDA 38627 a

1contingent on the build-out and Department inspection.
2    (i) Upon submission of the Early Approval Adult Use
3Dispensing Organization at a secondary site application, the
4applicant shall request an inspection and the Department may
5inspect the Early Approval Adult Use Dispensing Organization's
6secondary site to confirm compliance with the application and
7this Act.
8    (j) The Department shall only issue an Early Approval
9Adult Use Dispensing Organization License at a secondary site
10after the completion of a successful inspection.
11    (k) If an applicant passes the inspection under this
12Section, the Department shall issue the Early Approval Adult
13Use Dispensing Organization License at a secondary site within
1410 business days unless:
15        (1) the licensee, any principal officer or board
16    member of the licensee, or any person having a financial
17    or voting interest of 5% or greater in the licensee is
18    delinquent in filing any required tax returns or paying
19    any amounts owed to the State of Illinois; or
20        (2) the Secretary of Financial and Professional
21    Regulation determines there is reason, based on documented
22    compliance violations, the licensee is not entitled to an
23    Early Approval Adult Use Dispensing Organization License
24    at its secondary site.
25    (l) Once the Department has issued a license, the
26dispensing organization shall notify the Department of the

 

 

10400SB3229ham001- 458 -LRB104 19751 BDA 38627 a

1proposed opening date.
2    (m) A registered medical cannabis dispensing organization
3that obtains an Early Approval Adult Use Dispensing
4Organization License at a secondary site may begin selling
5cannabis, cannabis-infused products, paraphernalia, and
6related items to purchasers under the rules of this Act no
7sooner than January 1, 2020.
8    (n) If there is a shortage of cannabis or cannabis-infused
9products, a dispensing organization holding both a dispensing
10organization license under the Compassionate Use of Medical
11Cannabis Program Act and this Article shall prioritize serving
12qualifying patients and caregivers before serving purchasers.
13    (o) An Early Approval Adult Use Dispensing Organization
14License at a secondary site is valid until March 31, 2021. A
15dispensing organization that obtains an Early Approval Adult
16Use Dispensing Organization License at a secondary site shall
17receive written or electronic notice 90 days before the
18expiration of the license that the license will expire, and
19inform the license holder that it may renew its Early Approval
20Adult Use Dispensing Organization License at a secondary site.
21The Department shall renew an Early Approval Adult Use
22Dispensing Organization License at a secondary site within 60
23days of submission of the renewal application being deemed
24complete if:
25        (1) the dispensing organization submits an application
26    and the required nonrefundable renewal fee of $30,000, to

 

 

10400SB3229ham001- 459 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 460 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 461 -LRB104 19751 BDA 38627 a

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
26    same county, to move to a different location within that

 

 

10400SB3229ham001- 462 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 463 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 464 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 465 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

10400SB3229ham001- 467 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 468 -LRB104 19751 BDA 38627 a

1    subsection (e) of Section 5-45.
2    (e) An applicant who receives a Conditional Adult Use
3Dispensing Organization License under this Section has 180
4days from the date of award to identify a physical location for
5the dispensing organization retail storefront. The applicant
6shall provide evidence that the location is not within 1,500
7feet of an existing dispensing organization, unless the
8applicant is a Social Equity Applicant or Social Equity
9Justice Involved Applicant located or seeking to locate within
101,500 feet of a dispensing organization licensed under Section
1115-15 or Section 15-20. If an applicant is unable to find a
12suitable physical address in the opinion of the Department
13within 180 days of the issuance of the Conditional Adult Use
14Dispensing Organization License, the Department may extend the
15period for finding a physical address an additional 540 days
16if the Conditional Adult Use Dispensing Organization License
17holder demonstrates concrete attempts to secure a location and
18a hardship. If the Department denies the extension or the
19Conditional Adult Use Dispensing Organization License holder
20is unable to either find a location within 720 days of being
21awarded a conditional license and become operational within
22180 days thereafter or become operational within 720 days of
23being awarded a conditional license, the Department may,
24considering the totality of the circumstances, rescind the
25conditional license. If the conditional license holder does
26not become operational within 365 days after having found a

 

 

10400SB3229ham001- 469 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 470 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 471 -LRB104 19751 BDA 38627 a

1102-813, eff. 5-13-22; 103-8, eff. 6-7-23.)
 
2    (410 ILCS 705/15-35)
3    Sec. 15-35. Qualifying Applicant Lottery for Conditional
4Adult Use Dispensing Organization Licenses.
5    (a) In addition to any of the licenses issued under
6Section 15-15, Section 15-20, Section 15-25, Section 15-30.20,
7or Section 15-35.10 of this Act, within 10 business days after
8the resulting final scores for all scored applications
9pursuant to Sections 15-25 and 15-30 are released, the
10Department shall issue up to 55 Conditional Adult Use
11Dispensing Organization Licenses by lot, pursuant to the
12application process adopted under this Section. In order to be
13eligible to be awarded a Conditional Adult Use Dispensing
14Organization License by lot under this Section, a Dispensary
15Applicant must be a Qualifying Applicant.
16    The licenses issued under this Section shall be awarded in
17each BLS Region in the following amounts:
18        (1) Bloomington: 1.
19        (2) Cape Girardeau: 1.
20        (3) Carbondale-Marion: 1.
21        (4) Champaign-Urbana: 1.
22        (5) Chicago-Naperville-Elgin: 36.
23        (6) Danville: 1.
24        (7) Davenport-Moline-Rock Island: 1.
25        (8) Decatur: 1.

 

 

10400SB3229ham001- 472 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 473 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 474 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 475 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 476 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 477 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 478 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 479 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 480 -LRB104 19751 BDA 38627 a

1    (l) If an applicant has not begun operating as a
2dispensing organization within one year after the issuance of
3the Conditional Adult Use Dispensing Organization License
4under this Section, the Department may permanently revoke the
5Conditional Adult Use Dispensing Organization License and
6award it to the next highest scoring applicant in the BLS
7Region if a suitable applicant indicates a continued interest
8in the Conditional Adult Use Dispensing Organization License
9or may begin a new selection process to award a Conditional
10Adult Use Dispensing Organization License.
11(Source: P.A. 102-98, eff. 7-15-21; 103-8, eff. 6-7-23.)
 
12    (410 ILCS 705/15-35.10)
13    Sec. 15-35.10. Social Equity Justice Involved Lottery for
14Conditional Adult Use Dispensing Organization Licenses.
15    (a) In addition to any of the licenses issued under
16Section 15-15, Section 15-20, Section 15-25, Section 15-30.20,
17or Section 15-35, within 10 business days after the resulting
18final scores for all scored applications pursuant to Sections
1915-25 and 15-30 are released, the Department shall issue up to
2055 Conditional Adult Use Dispensing Organization Licenses by
21lot, pursuant to the application process adopted under this
22Section. In order to be eligible to be awarded a Conditional
23Adult Use Dispensing Organization License by lot, a Dispensary
24Applicant must be a Qualifying Social Equity Justice Involved
25Applicant.

 

 

10400SB3229ham001- 481 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 482 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 483 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 484 -LRB104 19751 BDA 38627 a

1    not notify the Department as required, the Department
2    shall refuse to issue the Qualifying Social Equity Justice
3    Involved Applicant all available licenses established
4    under this Section obtained by lot in all BLS Regions.
5        (9) All available licenses that have been abandoned
6    under paragraph (7) or (8) shall be distributed to the
7    next Qualifying Social Equity Justice Involved Applicant
8    drawn by lot.
9    Any and all rights conferred or obtained under this
10subsection shall be limited to the provisions of this
11subsection.
12    (c) An applicant who receives a Conditional Adult Use
13Dispensing Organization License under this Section has 180
14days from the date of the award to identify a physical location
15for the dispensing organization's retail storefront. The
16applicant shall provide evidence that the location is not
17within 1,500 feet of an existing dispensing organization,
18unless the applicant is a Social Equity Applicant or Social
19Equity Justice Involved Applicant located or seeking to locate
20within 1,500 feet of a dispensing organization licensed under
21Section 15-15 or Section 15-20. If an applicant is unable to
22find a suitable physical address in the opinion of the
23Department within 180 days from the issuance of the
24Conditional Adult Use Dispensing Organization License, the
25Department may extend the period for finding a physical
26address an additional 540 days if the Conditional Adult Use

 

 

10400SB3229ham001- 485 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 486 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 487 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 488 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 489 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 490 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 491 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 492 -LRB104 19751 BDA 38627 a

1Licenses at a secondary site, Conditional Adult Use Dispensing
2Organization Licenses, or Adult Use Dispensing Organization
3Licenses.
4    (c-2) Notwithstanding subsections (c) and (c-1), if a
5person or entity enters an arrangement that could or does
6result in the person or entity receiving payments from a
7dispensing organization in an amount exceeding any of the
8amounts in paragraphs (1) through (3) of this subsection,
9then, unless the dispensing organization is approved by the
10Department for a limited waiver as identified in this Section,
11the person or entity is considered to be a principal officer of
12the dispensing organization requiring the Department's
13approval and registration:
14        (1) 10% of the dispensing organization's monthly gross
15    revenue;
16        (2) 50% of the dispensing organizations 's net profits
17    in a calendar year; or
18        (3) $250,000, or an amount otherwise determined by the
19    Department via administrative rulemaking, in a calendar
20    year.
21        The Department may grant a limited waiver to the
22    requirements of this subsection if the dispensing
23    organization demonstrates good cause and there is no
24    transfer of ownership and control.    
25    For the purpose of this subsection, participating in
26management may include, without limitation, controlling

 

 

10400SB3229ham001- 493 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 494 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 495 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 496 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 497 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 498 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 499 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 500 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 501 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 502 -LRB104 19751 BDA 38627 a

1taken against them that may have occurred in Illinois, another
2state, or another country in relation to their employment at a
3cannabis business establishment or at any cannabis cultivation
4center, processor, infuser, dispensary, or other cannabis
5business establishment.
6    (s) An agent applicant may begin employment at a
7dispensing organization while the agent applicant's
8identification card application is pending. Upon approval, the
9Department shall issue the agent's identification card to the
10agent. If denied, the dispensing organization and the agent
11applicant shall be notified and the agent applicant must cease
12all activity at the dispensing organization immediately.
13    (t) The Department and the Department of Agriculture may
14develop and implement an integrated system to issue an agent
15identification card which identifies a dispensary agent
16licensed by the Department as well as any cultivator, craft
17grower, transporter, community college program, or infuser
18license or registration the agent may simultaneously hold.    
19(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
20102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
215-13-22.)
 
22    (410 ILCS 705/15-45)
23    Sec. 15-45. Renewal.
24    (a) All Adult Use Dispensing Organization Licenses shall
25expire on March 31 of even-numbered years.

 

 

10400SB3229ham001- 503 -LRB104 19751 BDA 38627 a

1    (b) Agent identification cards shall expire one year from
2the date they are issued.
3    (c) Dispensing organizations Licensees and dispensing
4agents shall submit a renewal application as provided by the
5Department and pay the required renewal fee. The Department
6shall require an agent, employee, contracting, and
7subcontracting diversity report and an environmental impact
8report with its renewal application. No license or agent
9identification card shall be renewed if it is currently under
10revocation or suspension for violation of this Article or any
11rules that may be adopted under this Article or the licensee,
12principal officer, board member, person having a financial or
13voting interest of 5% or greater in the licensee, or agent is
14delinquent in filing any required tax returns or paying any
15amounts owed to the State of Illinois.
16    (d) Renewal fees are:
17        (1) For a dispensing organization, except as provided
18    in subsection (d-5):
19            (A) $60,000 or the proportional prorated amount,
20        to be deposited into the Cannabis Regulation Fund; and
21            (B) $10,000 or the proportional prorated amount,
22        to be deposited into the Compassionate Use of Medical
23        Cannabis Fund, if the dispensing organization also
24        holds a Medical Cannabis Dispensing Organization
25        License issued pursuant to Section 15-37 of this Act.
26        (2) For an agent identification card, $100, to be

 

 

10400SB3229ham001- 504 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 505 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 506 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 507 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 508 -LRB104 19751 BDA 38627 a

1under Section 10-5 of the Private Detective, Private Alarm,
2Private Security, Fingerprint Vendor, and Locksmith Act of
32004 to provide on-site security at all hours of the
4dispensary's operation.
5    (n) A dispensing organization shall ensure that any
6building or equipment used by a dispensing organization for
7the storage or sale of cannabis is maintained in a clean and
8sanitary condition.
9    (o) The dispensary shall be free from infestation by
10insects, rodents, or pests.
11    (p) A dispensing organization shall not:
12        (1) Produce or manufacture cannabis;
13        (2) Accept a cannabis product from an adult use
14    cultivation center, craft grower, infuser, dispensing
15    organization, or transporting organization unless it is
16    pre-packaged and labeled in accordance with this Act and
17    any rules that may be adopted pursuant to this Act;
18        (3) Obtain cannabis or cannabis-infused products from
19    outside the State of Illinois;
20        (4) Sell cannabis or cannabis-infused products to a
21    purchaser unless the dispensing organization is licensed
22    under the Compassionate Use of Medical Cannabis Program
23    Act, and the individual is registered under the
24    Compassionate Use of Medical Cannabis Program or the
25    purchaser has been verified to be 21 years of age or older;
26        (5) Enter into an exclusive agreement with any adult

 

 

10400SB3229ham001- 509 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 510 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 511 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 512 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 513 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 514 -LRB104 19751 BDA 38627 a

1cannabis or cannabis-infused products to any person unless the
2person produces a valid identification showing that the person
3is 21 years of age or older. A medical cannabis dispensing
4organization may sell cannabis or cannabis-infused products to
5a person who is under 21 years of age if the sale complies with
6the provisions of the Compassionate Use of Medical Cannabis
7Program Act and rules.
8    (c) For the purposes of this Section, valid identification
9must:
10        (1) Be valid and unexpired;
11        (2) Contain a photograph and the date of birth of the
12    person.
13    (d) In accordance with this amendatory Act of the 104th
14General Assembly, a dispensing organization may offer pickup
15or drive-through locations for cannabis, cannabis concentrate,
16or cannabis-infused products.    
17    (e) Notwithstanding Sections 11-502.1 and 11-502.15 of the
18Illinois Vehicle Code, the requirement that cannabis be
19inaccessible shall not apply to adult-use cannabis or medical
20cannabis lawfully purchased from a licensed dispensing
21organization if the cannabis is transported in a secured,
22sealed, odor-proof, child-resistant cannabis container that is
23in its original packaging.    
24(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
25102-98, eff. 7-15-21.)
 

 

 

10400SB3229ham001- 515 -LRB104 19751 BDA 38627 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
26    operational hours, cannabis shall be stored in an enclosed

 

 

10400SB3229ham001- 516 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 517 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 518 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 519 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 520 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 521 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 522 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 523 -LRB104 19751 BDA 38627 a

1    system. All recordings shall be erased or destroyed before
2    disposal;
3        (9) The video surveillance system shall be operational
4    during a power outage with a 4-hour minimum battery
5    backup;
6        (10) A video camera or cameras recording at each
7    point-of-sale location allowing for the identification of
8    the dispensing organization agent distributing the
9    cannabis and any purchaser. The camera or cameras shall
10    capture the sale, the individuals and the computer
11    monitors used for the sale;
12        (11) A failure notification system that provides an
13    audible and visual notification of any failure in the
14    electronic video monitoring system; and
15        (12) All electronic video surveillance monitoring must
16    record at least the equivalent of 8 frames per second and
17    be available as recordings to the Department and the
18    Illinois State Police 24 hours a day via a secure
19    web-based portal with reverse functionality.
20    (j) The requirements contained in this Act are minimum
21requirements for operating a dispensing organization. The
22Department may establish additional requirements by rule.
23(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
24102-538, eff. 8-20-21.)
 
25    (410 ILCS 705/15-135)

 

 

10400SB3229ham001- 524 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 525 -LRB104 19751 BDA 38627 a

1and facility, and inventory any stock of cannabis and obtain
2samples of any cannabis or cannabis-infused product, any
3labels or containers for cannabis, or paraphernalia.
4    (c) The Department may conduct an investigation of an
5applicant, application, dispensing organization, principal
6officer, dispensary agent, third party vendor, or any other
7party associated with a dispensing organization for an alleged
8violation of this Act or rules or to determine qualifications
9to be granted a registration by the Department.
10    (d) The Department may require an applicant or holder of
11any license issued pursuant to this Article to produce
12documents, records, or any other material pertinent to the
13investigation of an application or alleged violations of this
14Act or rules. Failure to provide the required material may be
15grounds for denial or discipline.
16    (e) Every person charged with preparation, obtaining, or
17keeping records, logs, reports, or other documents in
18connection with this Act and rules and every person in charge,
19or having custody, of those documents shall, upon request by
20the Department, make the documents immediately available for
21inspection and copying by the Department, the Department's
22authorized representative, or others authorized by law to
23review the documents.
24(Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21;
25102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)
 

 

 

10400SB3229ham001- 526 -LRB104 19751 BDA 38627 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;
26        (9) A finding by the Department that the licensee,

 

 

10400SB3229ham001- 527 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

10400SB3229ham001- 529 -LRB104 19751 BDA 38627 a

1    this Act;
2        (25) Failure to assign an agent-in-charge as required
3    by this Article;
4        (26) Failure to provide the training required by
5    paragraph (3) of subsection (i) of Section 15-40 within
6    the provided timeframe;
7        (27) Personnel insufficient in number or unqualified
8    in training or experience to properly operate the
9    dispensary business;
10        (28) Any pattern of activity that causes a harmful
11    impact on the community; and
12        (29) Failing to prevent diversion, theft, or loss of
13    cannabis; .
14        (30) Engaging in a pattern of nonpayment or late
15    payment for goods or services to a cannabis business
16    establishment; or    
17        (31) Engaging in predatory financial practices or
18    financial collusion, including, but not limited to,
19    bid-rigging and market allocation schemes.    
20    (b) All fines and fees imposed under this Section shall be
21paid within 60 days after the effective date of the order
22imposing the fine or as otherwise specified in the order.
23    (c) A circuit court order establishing that an
24agent-in-charge or principal officer holding an agent
25identification card is subject to involuntary admission as
26that term is defined in Section 1-119 or 1-119.1 of the Mental

 

 

10400SB3229ham001- 530 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

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

 

 

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1(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
2    (410 ILCS 705/20-15)
3    Sec. 20-15. Conditional Adult Use Cultivation Center
4application.
5    (a) If the Department of Agriculture makes available
6additional cultivation center licenses pursuant to Section
720-5, applicants for a Conditional Adult Use Cultivation
8Center License shall electronically submit the following in
9such form as the Department of Agriculture may direct:
10        (1) the nonrefundable application fee set by rule by
11    the Department of Agriculture, to be deposited into the
12    Cannabis Regulation Fund;
13        (2) the legal name of the cultivation center;
14        (3) the proposed physical address of the cultivation
15    center;
16        (4) the name, address, social security number, and
17    date of birth of each principal officer and board member
18    of the cultivation center; each principal officer and
19    board member shall be at least 21 years of age;
20        (5) the details of any administrative or judicial
21    proceeding in which any of the principal officers or board
22    members of the cultivation center (i) pled guilty, were
23    convicted, were fined, or had a registration or license
24    suspended or revoked, or (ii) managed or served on the
25    board of a business or non-profit organization that pled

 

 

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

 

 

10400SB3229ham001- 535 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

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

 

 

10400SB3229ham001- 538 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 539 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 540 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 541 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 542 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 543 -LRB104 19751 BDA 38627 a

1written or electronic communication.
2    (i) A cultivation center shall comply with all State and
3any applicable federal rules and regulations regarding the use
4of pesticides on cannabis plants.
5    (j) No person or entity shall hold any legal, equitable,
6ownership, or beneficial interest, directly or indirectly, of
7more than 3 cultivation centers licensed under this Article.
8Further, no person or entity that is employed by, an agent of,
9has a contract to receive payment in any form from a
10cultivation center, is a principal officer of a cultivation
11center, or entity controlled by or affiliated with a principal
12officer of a cultivation center shall hold any legal,
13equitable, ownership, or beneficial interest, directly or
14indirectly, in a cultivation that would result in the person
15or entity owning or controlling in combination with any
16cultivation center, principal officer of a cultivation center,
17or entity controlled or affiliated with a principal officer of
18a cultivation center by which he, she, or it is employed, is an
19agent of, or participates in the management of, more than 3
20cultivation center licenses.
21    (k) A cultivation center may not contain more than 210,000
22square feet of canopy space for plants in the flowering stage
23for cultivation of adult use cannabis as provided in this Act.
24    (l) A cultivation center may process cannabis, cannabis
25concentrates, and cannabis-infused products.
26    (m) Beginning July 1, 2020, a cultivation center shall not

 

 

10400SB3229ham001- 544 -LRB104 19751 BDA 38627 a

1transport cannabis or cannabis-infused products to a craft
2grower, dispensing organization, infuser organization, or
3laboratory licensed under this Act, unless it has obtained a
4transporting organization license.
5    (n) It is unlawful for any person having a cultivation
6center license or any officer, associate, member,
7representative, or agent of such licensee to offer or deliver
8money, or anything else of value, directly or indirectly to
9any person having an Early Approval Adult Use Dispensing
10Organization License, a Conditional Adult Use Dispensing
11Organization License, an Adult Use Dispensing Organization
12License, or a medical cannabis dispensing organization license
13issued under the Compassionate Use of Medical Cannabis Program
14Act, or to any person connected with or in any way
15representing, or to any member of the family of, such person
16holding an Early Approval Adult Use Dispensing Organization
17License, a Conditional Adult Use Dispensing Organization
18License, an Adult Use Dispensing Organization License, or a
19medical cannabis dispensing organization license issued under
20the Compassionate Use of Medical Cannabis Program Act, or to
21any stockholders in any corporation engaged in the retail sale
22of cannabis, or to any officer, manager, agent, or
23representative of the Early Approval Adult Use Dispensing
24Organization License, a Conditional Adult Use Dispensing
25Organization License, an Adult Use Dispensing Organization
26License, or a medical cannabis dispensing organization license

 

 

10400SB3229ham001- 545 -LRB104 19751 BDA 38627 a

1issued under the Compassionate Use of Medical Cannabis Program
2Act to obtain preferential placement within the dispensing
3organization, including, without limitation, on shelves and in
4display cases where purchasers can view products, or on the
5dispensing organization's website.
6    (o) A cultivation center must comply with any other
7requirements or prohibitions set by administrative rule of the
8Department of Agriculture.
9    (p) Cultivation centers shall retain at least 60 days of
10camera storage in any location or otherwise provided by rule.
11The Department may require footage to be maintained for
12purposes of an investigation.    
13(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
14102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
155-13-22.)
 
16    (410 ILCS 705/20-35)
17    Sec. 20-35. Cultivation center agent identification card.
18    (a) The Department of Agriculture shall:
19        (1) establish by rule the information required in an
20    initial application or renewal application for an agent
21    identification card submitted under this Act and the
22    nonrefundable fee to accompany the initial application or
23    renewal application;
24        (2) verify the information contained in an initial
25    application or renewal application for an agent

 

 

10400SB3229ham001- 546 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 547 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 548 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 549 -LRB104 19751 BDA 38627 a

1    or any amendments thereto that have been approved by the
2    Department of Agriculture;
3        (4) the cultivation center has submitted an agent,
4    employee, contracting, and subcontracting diversity report
5    as required by the Department; and
6        (5) the cultivation center has submitted an
7    environmental impact report.
8    (b) If a cultivation center fails to renew its license
9before expiration, it shall cease operations until its license
10is renewed.
11    (c) If a cultivation center agent fails to renew his or her
12identification card before its expiration, he or she shall
13cease to work as an agent of the cultivation center until his
14or her identification card is renewed.
15    (d) Any cultivation center that continues to operate, or
16any cultivation center agent who continues to work as an
17agent, after the applicable license or identification card has
18expired without renewal is subject to the penalties provided
19under Section 45-5.
20    (e) The Department of Agriculture shall not renew a
21license or an agent identification card if the applicant is
22delinquent in filing any required tax returns or paying any
23amounts owed to the State of Illinois.    
24(Source: P.A. 101-27, eff. 6-25-19.)
 
25    (410 ILCS 705/20-60 new)

 

 

10400SB3229ham001- 550 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 551 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 552 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 553 -LRB104 19751 BDA 38627 a

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 community college employing
5    the agent.
6    (d) An agent identification card shall be immediately
7returned to the community college of the agent upon
8termination of his or her employment.
9    (e) Any agent identification card lost shall be reported
10to the Illinois State Police and the Department of Agriculture
11immediately upon discovery of the loss.
12    (f) An agent applicant may begin employment at a Community
13College Cannabis Vocational Training Pilot Program while the
14agent applicant's identification card application is pending.
15Upon approval, the Department shall issue the agent's
16identification card to the agent. If denied, the Community
17College Cannabis Vocational Training Pilot Program and the
18agent applicant shall be notified and the agent applicant must
19cease all activity at the Community College Cannabis
20Vocational Training Pilot Program immediately.
21    (g) The Department of Agriculture shall not issue an agent
22identification card if the applicant is delinquent in filing
23any required tax returns or paying any amounts owed to the
24State of Illinois.    
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.)
 

 

 

10400SB3229ham001- 554 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 555 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 556 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 557 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 558 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 559 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 560 -LRB104 19751 BDA 38627 a

1            measure runoff from watering events and report
2            this volume in its water usage plan, and that on
3            average, watering events shall have no more than
4            20% of runoff of water.
5            (E) Filtration. The craft grower commits that HVAC
6        condensate, dehumidification water, excess runoff, and
7        other wastewater produced by the craft grower facility
8        shall be captured and filtered to the best of the
9        facility's ability to achieve the quality needed to be
10        reused in subsequent watering rounds.
11            (F) Reporting energy use and efficiency as
12        required by rule; and
13        (22) any other information required by rule.
14    (b) Applicants must submit all required information,
15including the information required in Section 30-15, to the
16Department of Agriculture. Failure by an applicant to submit
17all required information may result in the application being
18disqualified.
19    (c) If the Department of Agriculture receives an
20application with missing information, the Department of
21Agriculture may issue a deficiency notice to the applicant.
22The applicant shall have 10 calendar days from the date of the
23deficiency notice to resubmit the incomplete information.
24Applications that are still incomplete after this opportunity
25to cure will not be scored and will be disqualified.
26(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;

 

 

10400SB3229ham001- 561 -LRB104 19751 BDA 38627 a

1102-538, eff. 8-20-21.)
 
2    (410 ILCS 705/30-30)
3    Sec. 30-30. Craft grower requirements; prohibitions.
4    (a) The operating documents of a craft grower shall
5include procedures for the oversight of the craft grower, a
6cannabis plant monitoring system including a physical
7inventory recorded weekly, accurate recordkeeping, and a
8staffing plan.
9    (b) A craft grower shall implement a security plan
10reviewed by the Illinois State Police that includes, but is
11not limited to: facility access controls, perimeter intrusion
12detection systems, personnel identification systems, and a
1324-hour surveillance system to monitor the interior and
14exterior of the craft grower facility and that is accessible
15to authorized law enforcement and the Department of
16Agriculture in real time.
17    (c) All cultivation of cannabis by a craft grower must
18take place in an enclosed, locked facility at the physical
19address provided to the Department of Agriculture during the
20licensing process. The craft grower location shall only be
21accessed by the agents working for the craft grower, the
22Department of Agriculture staff performing inspections, the
23Department of Public Health staff performing inspections,
24State and local law enforcement or other emergency personnel,
25contractors working on jobs unrelated to cannabis, such as

 

 

10400SB3229ham001- 562 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 563 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 564 -LRB104 19751 BDA 38627 a

1transport cannabis or cannabis-infused products to any other
2cannabis business establishment without a transport
3organization license unless:
4        (i) If the craft grower is located in a county with a
5    population of 3,000,000 or more, the cannabis business
6    establishment receiving the cannabis is within 2,000 feet
7    of the property line of the craft grower;
8        (ii) If the craft grower is located in a county with a
9    population of more than 700,000 but fewer than 3,000,000,
10    the cannabis business establishment receiving the cannabis
11    is within 2 miles of the craft grower; or
12        (iii) If the craft grower is located in a county with a
13    population of fewer than 700,000, the cannabis business
14    establishment receiving the cannabis is within 15 miles of
15    the craft grower.
16    (l) A craft grower may enter into a contract with a
17transporting organization to transport cannabis to a
18cultivation center, a craft grower, an infuser organization, a
19dispensing organization, or a laboratory.
20    (m) No person or entity shall hold any legal, equitable,
21ownership, or beneficial interest, directly or indirectly, of
22more than 3 craft grower licenses. Further, no person or
23entity that is employed by, an agent of, or has a contract to
24receive payment from or participate in the management of a
25craft grower, is a principal officer of a craft grower, or
26entity controlled by or affiliated with a principal officer of

 

 

10400SB3229ham001- 565 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 566 -LRB104 19751 BDA 38627 a

1Approval Adult Use Dispensing Organization License, a
2Conditional Adult Use Dispensing Organization License, an
3Adult Use Dispensing Organization License, or a medical
4cannabis dispensing organization license issued under the
5Compassionate Use of Medical Cannabis Program Act to obtain
6preferential placement within the dispensing organization,
7including, without limitation, on shelves and in display cases
8where purchasers can view products, or on the dispensing
9organization's website.
10    (o) A craft grower shall not be located within 1,500 feet
11of another craft grower or a cultivation center.
12    (p) A craft grower may process cannabis, cannabis
13concentrates, and cannabis-infused products.
14    (q) A craft grower must comply with any other requirements
15or prohibitions set by administrative rule of the Department
16of Agriculture.
17    (r) Craft growers shall retain at least 60 days of camera
18storage in any location or otherwise provided by rule. The
19Department may require footage to be maintained for purposes
20of an investigation.    
21(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
22102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
235-13-22.)
 
24    (410 ILCS 705/30-35)
25    Sec. 30-35. Craft grower agent identification card.

 

 

10400SB3229ham001- 567 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 568 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 569 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 570 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 571 -LRB104 19751 BDA 38627 a

145-5.
2    (e) All fees or fines collected from the renewal of a craft
3grower license shall be deposited into the Cannabis Regulation
4Fund.
5    (f) The Department of Agriculture shall not renew a
6license or an agent identification card if the applicant is
7delinquent in filing any required tax returns or paying any
8amounts owed to the State of Illinois.    
9(Source: P.A. 101-27, eff. 6-25-19.)
 
10    (410 ILCS 705/35-18 new)
11    Sec. 35-18. Social equity experience lottery.    
12    (a) The Department shall, by rule, develop an application,
13submission, review, and deficiency process to issue at least
1445 infuser licenses by January 1, 2027 and may issue up to 100
15additional licenses beginning January 1, 2028. The licenses
16shall be issued to applicants that are 51% owned by
17individuals who meet the following social equity criteria:
18        (1) The applicant must satisfy one of the following
19    geographic criteria:
20            (A) the individual must have resided for at least
21        5 of the preceding 10 years in a census tract that has
22        a poverty rate of at least 20% according to the latest
23        5-year American Community Survey (Table S1701: Poverty
24        Status in the Past 12 Months) that is publicly
25        available at the start of the application submission

 

 

10400SB3229ham001- 572 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 573 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

10400SB3229ham001- 575 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 576 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 577 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 578 -LRB104 19751 BDA 38627 a

1location of common bathrooms, lunchrooms, locker rooms, or
2other areas of the building where processing of cannabis is
3not performed. At no time may a craft grower or dispensing
4organization agent perform work at an infuser without being a
5registered agent of the infuser.
6    (d) An infuser may not sell or distribute any cannabis to
7any person other than a dispensing organization, or as
8otherwise authorized by rule.
9    (e) An infuser may not either directly or indirectly
10discriminate in price between different cannabis business
11establishments that are purchasing a like grade, strain,
12brand, and quality of cannabis or cannabis-infused product.
13Nothing in this subsection (e) prevents an infuser from
14pricing cannabis differently based on differences in the cost
15of manufacturing or processing, the quantities sold, such
16volume discounts, or the way the products are delivered.
17    (f) All cannabis infused by an infuser and intended for
18distribution to a dispensing organization must be entered into
19a data collection system, packaged and labeled under Section
2055-21, and, if distribution is to a dispensing organization
21that does not share a premises with the infuser, placed into a
22cannabis container for transport. All cannabis produced by an
23infuser and intended for distribution to a cultivation center,
24infuser organization, or craft grower with which it does not
25share a premises, must be packaged in a labeled cannabis
26container and entered into a data collection system before

 

 

10400SB3229ham001- 579 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 580 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 581 -LRB104 19751 BDA 38627 a

1Organization License, an Adult Use Dispensing Organization
2License, or a medical cannabis dispensing organization license
3issued under the Compassionate Use of Medical Cannabis Program
4Act, or to any stockholders in any corporation engaged in the
5retail sales of cannabis, or to any officer, manager, agent,
6or representative of the Early Approval Adult Use Dispensing
7Organization License, a Conditional Adult Use Dispensing
8Organization License, an Adult Use Dispensing Organization
9License, or a medical cannabis dispensing organization license
10issued under the Compassionate Use of Medical Cannabis Program
11Act to obtain preferential placement within the dispensing
12organization, including, without limitation, on shelves and in
13display cases where purchasers can view products, or on the
14dispensing organization's website.
15    (n) At no time shall an infuser organization or an infuser
16agent perform the extraction of cannabis concentrate from
17cannabis flower, except if the infuser organization has also
18been issued a processor license under subsection (f) of
19Section 35-31.
20    (o) Infusing organizations shall retain at least 60 days
21of camera storage in any location or otherwise provided by
22rule. The Department may require footage to be maintained for
23purposes of an investigation.    
24(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
25102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
265-13-22.)
 

 

 

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

 

 

10400SB3229ham001- 583 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 584 -LRB104 19751 BDA 38627 a

1issue the agent's identification card to the agent. If denied,
2the infuser organization and the agent applicant shall be
3notified and the agent applicant must cease all activity at
4the infuser organization immediately.
5    (g) The Department of Agriculture shall not issue an agent
6identification card if the applicant is delinquent in filing
7any required tax returns or paying any amounts owed to the
8State of Illinois.    
9    (h) The Department and the Department of Financial and
10Professional Regulation may develop and implement an
11integrated system to issue an agent identification card that
12identifies an infuser agent licensed by the Department as well
13as any cultivation center, craft grower, dispensary,
14transporter, or community college program license or
15registration the agent may simultaneously hold.    
16(Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21;
17102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)
 
18    (410 ILCS 705/35-40)
19    Sec. 35-40. Renewal of infuser organization licenses and
20agent identification cards.
21    (a) Licenses and identification cards issued under this
22Act shall be renewed annually. An infuser organization shall
23receive written or electronic notice 90 days before the
24expiration of its current license that the license will
25expire. The Department of Agriculture shall grant a renewal

 

 

10400SB3229ham001- 585 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 586 -LRB104 19751 BDA 38627 a

1    (d) Any infuser organization that continues to operate, or
2any infuser organization agent who continues to work as an
3agent, after the applicable license or identification card has
4expired without renewal is subject to the penalties provided
5under Section 35-25.
6    (e) The Department shall not renew a license or 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(Source: P.A. 101-27, eff. 6-25-19.)
 
11    (410 ILCS 705/40-5)
12    Sec. 40-5. Issuance of licenses.
13    (a) The Department shall issue transporting licenses
14through a process provided for in this Article no later than
15July 1, 2020.
16    (b) The Department shall make the application for
17transporting organization licenses available on January 7,
182020 and shall receive such applications no later than March
1915, 2020.
20    (c) Entities awarded a license under this Article shall
21not be required to pay any fee required under Section 40-10 of
22this Article, the nonrefundable renewal fee required under
23Section 40-40 of this Article, or any other license fee
24required under this Article or by rule from January 1, 2024 to
25January 1, 2028 2027.

 

 

10400SB3229ham001- 587 -LRB104 19751 BDA 38627 a

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

 

 

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

 

 

10400SB3229ham001- 589 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 590 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 591 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 592 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 593 -LRB104 19751 BDA 38627 a

1    authorized individuals;
2        (2) be large enough to allow for 2 of the largest
3    vehicles used by the transporter to have all doors and
4    trunk or hatch open, sufficient room for an individual to
5    walk around each vehicle without encumbrance, and transfer
6    to take place out of ordinary public view;
7        (3) be separate from any other cannabis business
8    establishment; and
9        (4) be equipped with a surveillance system which
10    visually records and monitors all building entrances and
11    exits, all parking lot areas, and rear alley areas
12    immediately adjacent to the building, and covers the
13    entire inside of the facility.
14    (i) All cannabis and cannabis products shall be stored in
15a vault that meets the standards of 68 Ill. Adm. Code
161291.300(g) or as otherwise set by rule by the Department.
17    (j) The Department may adopt rules regarding facility
18specifications and operations of cannabis transporter storage
19sites.
 
20    (410 ILCS 705/45-5)
21    Sec. 45-5. License suspension; revocation; other
22penalties.
23    (a) Notwithstanding any other criminal penalties related
24to the unlawful possession of cannabis, the Department of
25Financial and Professional Regulation and the Department of

 

 

10400SB3229ham001- 594 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 595 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 596 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 597 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 598 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 599 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 600 -LRB104 19751 BDA 38627 a

1packaging and labeling requirements contained in Section
255-21.
3    (b) Cannabis-infused products for sale or distribution at
4a dispensing organization must be prepared by an approved
5agent of a cultivation center, craft grower, or infuser
6organization.
7    (c) A cultivation center, craft grower, or infuser
8organization that prepares cannabis-infused products for sale
9or distribution by a dispensing organization shall be under
10the operational supervision of a Department of Public Health
11certified food service sanitation manager.
12    (d) Dispensing organizations may not manufacture, process,
13or produce cannabis-infused products.
14    (e) The Department of Public Health shall adopt and
15enforce rules for the manufacture and processing of
16cannabis-infused products, and for that purpose it may at all
17times enter every building, room, basement, enclosure, or
18premises occupied or used, or suspected of being occupied or
19used, for the production, preparation, manufacture for sale,
20storage, sale, processing, distribution, or transportation of
21cannabis-infused products, and to inspect the premises
22together with all utensils, fixtures, furniture, and machinery
23used for the preparation of these products.
24    (f) The Department of Agriculture shall by rule establish
25a maximum level of THC that may be contained in each serving of
26cannabis-infused product, and within the product package.

 

 

10400SB3229ham001- 601 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 602 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 603 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 604 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 605 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 606 -LRB104 19751 BDA 38627 a

1        (2) Cannabis-infused products (other than those
2    intended for topical application) must contain a statement
3    "CAUTION: This product contains cannabis, and intoxication
4    following use may be delayed 2 or more hours. This product
5    was produced in a facility that cultivates cannabis, and
6    that may also process common food allergens.".
7        (3) Cannabis-infused products intended for topical
8    application must contain a statement "DO NOT EAT" in bold,
9    capital letters.
10    (k) Each cannabis-infused product intended for consumption
11must be individually packaged, must include the total
12milligram content of THC and CBD, and may not include more than
13a total of 100 milligrams of THC per package. A package may
14contain multiple servings of 10 milligrams of THC, indicated
15by scoring, wrapping, or by other indicators designating
16individual serving sizes. The Department of Agriculture may
17change the total amount of THC allowed for each package, or the
18total amount of THC allowed for each serving size, by rule.
19    (l) No individual other than the purchaser may alter or
20destroy any labeling affixed to the primary packaging of
21cannabis or cannabis-infused products.
22    (m) For each commercial weighing and measuring device used
23at a facility, the cultivation center or craft grower must:
24        (1) Ensure that the commercial device is licensed
25    under the Weights and Measures Act and the associated
26    administrative rules (8 Ill. Adm. Code 600);

 

 

10400SB3229ham001- 607 -LRB104 19751 BDA 38627 a

1        (2) Maintain documentation of the licensure of the
2    commercial device; and
3        (3) Provide a copy of the license of the commercial
4    device to the Department of Agriculture for review upon
5    request.
6    (n) It is the responsibility of the Department to ensure
7that packaging and labeling requirements, including product
8warnings, are enforced at all times for products provided to
9purchasers. Product registration requirements and container
10requirements may be modified by rule by the Department of
11Agriculture.
12    (o) Labeling under this Section, including warning labels,
13may be modified by rule by the Department of Agriculture.
14(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
15102-98, eff. 7-15-21.)
 
16    (410 ILCS 705/55-22 new)
17    Sec. 55-22. Dispensing organization warning labels for
18medical cannabis.
19    (a) Prior to dispensing any cannabis, cannabis
20concentrate, or cannabis-infused products to a registered
21qualifying patient, provisional patient, designated caregiver,
22or an Opioid Alternative Patient Program participant, a
23dispensing organization shall affix to the outside of the
24product in a clear and visible manner a warning label
25specifically targeted to medical patients.

 

 

10400SB3229ham001- 608 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 609 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 610 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 611 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 612 -LRB104 19751 BDA 38627 a

1    (f) Each Department responsible for licensure under this
2Act shall publish on the Department's website a list of the
3ownership information of cannabis business establishment
4licensees under the Department's jurisdiction. The list shall
5include, but is not limited to: the name of the person or
6entity holding each cannabis business establishment license;
7and the address at which the entity is operating under this
8Act. This list shall be published and updated monthly.
9(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
10102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
115-13-22.)
 
12    (410 ILCS 705/55-65)
13    Sec. 55-65. Financial institutions.
14    (a) A financial institution that provides financial
15services customarily provided by financial institutions to a
16cannabis business establishment authorized under this Act or
17the Compassionate Use of Medical Cannabis Program Act, or to a
18person that is affiliated with such cannabis business
19establishment, is exempt from any criminal law of this State
20as it relates to cannabis-related conduct authorized under
21State law.
22    (b) Upon request of a financial institution, a cannabis
23business establishment or proposed cannabis business
24establishment may provide to the financial institution the
25following information:

 

 

10400SB3229ham001- 613 -LRB104 19751 BDA 38627 a

1        (1) Whether a cannabis business establishment with
2    which the financial institution is doing or is considering
3    doing business holds a license under this Act or the
4    Compassionate Use of Medical Cannabis Program Act;
5        (2) The name of any other business or individual
6    affiliate with the cannabis business establishment;
7        (3) A copy of the application, and any supporting
8    documentation submitted with the application, for a
9    license or a permit submitted on behalf of the proposed
10    cannabis business establishment;
11        (4) If applicable, data relating to sales and the
12    volume of product sold by the cannabis business
13    establishment;
14        (5) Any past or pending violation by the person of
15    this Act, the Compassionate Use of Medical Cannabis
16    Program Act, or the rules adopted under these Acts where
17    applicable; and
18        (6) Any penalty imposed upon the person for violating
19    this Act, the Compassionate Use of Medical Cannabis
20    Program Act, or the rules adopted under these Acts.
21    (c) (Blank).
22    (d) (Blank).
23    (e) Information received by a financial institution under
24this Section is confidential. Except as otherwise required or
25permitted by this Act, State law or rule, or federal law or
26regulation, a financial institution may not make the

 

 

10400SB3229ham001- 614 -LRB104 19751 BDA 38627 a

1information available to any person other than:
2        (1) the customer to whom the information applies;
3        (2) a trustee, conservator, guardian, personal
4    representative, or agent of the customer to whom the
5    information applies; a federal or State regulator when
6    requested in connection with an examination of the
7    financial institution or if otherwise necessary for
8    complying with federal or State law;
9        (3) a federal or State regulator when requested in
10    connection with an examination of the financial
11    institution or if otherwise necessary for complying with
12    federal or State law; and
13        (4) a third party performing services for the
14    financial institution, provided the third party is
15    performing such services under a written agreement that
16    expressly or by operation of law prohibits the third
17    party's sharing and use of such confidential information
18    for any purpose other than as provided in its agreement to
19    provide services to the financial institution; and .
20        (5) the Office of the Executive Inspector General
21    pursuant to an investigation under the State Officials and
22    Employees Ethics Act.    
23(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
24    (410 ILCS 705/55-85)
25    Sec. 55-85. Medical cannabis.

 

 

10400SB3229ham001- 615 -LRB104 19751 BDA 38627 a

1    (a) Nothing in this Act shall be construed to limit any
2privileges or rights of a qualifying medical cannabis patient
3including minor patients, designated primary caregiver,
4medical cannabis cultivation center, provisional patient and
5Opioid Alternative Patient Program participant or medical
6cannabis dispensing organization under the Compassionate Use
7of Medical Cannabis Program Act, and where there is conflict
8between this Act and the Compassionate Use of Medical Cannabis
9Program Act as they relate to medical cannabis patients, the
10Compassionate Use of Medical Cannabis Program Act shall
11prevail.
12    (b) Dispensary locations that obtain an Early Approval
13Adult Use Dispensary Organization License or an Adult Use
14Dispensary Organization License in accordance with this Act at
15the same location as a medical cannabis dispensing
16organization registered under the Compassionate Use of Medical
17Cannabis Program Act shall maintain an inventory of medical
18cannabis and medical cannabis products on a monthly basis that
19is substantially similar in variety and quantity to the
20products offered at the dispensary during the 6-month period
21immediately before the effective date of this Act.
22    (c) Beginning June 30, 2020, the Department of Agriculture
23shall make a quarterly determination whether inventory
24requirements established for dispensaries in subsection (b)
25should be adjusted due to changing patient need.
26(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 

 

 

10400SB3229ham001- 616 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 617 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 618 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 619 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 620 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 621 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 622 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 623 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 624 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 625 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 626 -LRB104 19751 BDA 38627 a

1the corporation, or any accountant or other agent who
2knowingly enters false information on the return of any
3taxpayer under this Article is guilty of a Class 3 felony.
4    (c) Any person who violates any provision of Section
565-20, or fails to keep books and records as required under
6this Article, or willfully violates a rule of the Department
7for the administration and enforcement of this Article is
8guilty of a Class 4 felony. A person commits a separate offense
9on each day that he or she engages in business in violation of
10Section 65-20 or a rule of the Department for the
11administration and enforcement of this Article. If a person
12fails to produce the books and records for inspection by the
13Department upon request, a prima facie presumption shall arise
14that the person has failed to keep books and records as
15required under this Article. A person who is unable to rebut
16this presumption is in violation of this Article and is
17subject to the penalties provided in this Section.
18    (d) Any person who violates any provision of Sections
1965-20, fails to keep books and records as required under this
20Article, or willfully violates a rule of the Department for
21the administration and enforcement of this Article, is guilty
22of a business offense and may be fined up to $5,000. If a
23person fails to produce books and records for inspection by
24the Department upon request, a prima facie presumption shall
25arise that the person has failed to keep books and records as
26required under this Article. A person who is unable to rebut

 

 

10400SB3229ham001- 627 -LRB104 19751 BDA 38627 a

1this presumption is in violation of this Article and is
2subject to the penalties provided in this Section. A person
3commits a separate offense on each day that he or she engages
4in business in violation of a rule of the Department for the
5administration and enforcement of this Article Section 65-20.
6    (e) Any taxpayer or agent of a taxpayer who with the intent
7to defraud purports to make a payment due to the Department by
8issuing or delivering a check or other order upon a real or
9fictitious depository for the payment of money, knowing that
10it will not be paid by the depository, is guilty of a deceptive
11practice in violation of Section 17-1 of the Criminal Code of
122012.
13    (f) Any person who fails to keep books and records or fails
14to produce books and records for inspection, as required by
15Section 65-36, is liable to pay to the Department, for deposit
16in the Tax Compliance and Administration Fund, a penalty of
17$1,000 for the first failure to keep books and records or
18failure to produce books and records for inspection, as
19required by Section 65-36, and $3,000 for each subsequent
20failure to keep books and records or failure to produce books
21and records for inspection, as required by Section 65-36.
22    (g) Any person who knowingly acts as a retailer of
23cannabis in this State without first having obtained a
24certificate of registration to do so in compliance with
25Section 65-20 of this Article shall be guilty of a Class 4
26felony.

 

 

10400SB3229ham001- 628 -LRB104 19751 BDA 38627 a

1    (h) A person commits the offense of tax evasion under this
2Article when he or she knowingly attempts in any manner to
3evade or defeat the tax imposed on him or her or on any other
4person, or the payment thereof, and he or she commits an
5affirmative act in furtherance of the evasion. As used in this
6Section, "affirmative act in furtherance of the evasion" means
7an act designed in whole or in part to (i) conceal,
8misrepresent, falsify, or manipulate any material fact or (ii)
9tamper with or destroy documents or materials related to a
10person's tax liability under this Article. Two or more acts of
11sales tax evasion may be charged as a single count in any
12indictment, information, or complaint and the amount of tax
13deficiency may be aggregated for purposes of determining the
14amount of tax that is attempted to be or is evaded and the
15period between the first and last acts may be alleged as the
16date of the offense.
17        (1) When the amount of tax, the assessment or payment
18    of which is attempted to be or is evaded is less than $500,
19    a person is guilty of a Class 4 felony.
20        (2) When the amount of tax, the assessment or payment
21    of which is attempted to be or is evaded is $500 or more
22    but less than $10,000, a person is guilty of a Class 3
23    felony.
24        (3) When the amount of tax, the assessment or payment
25    of which is attempted to be or is evaded is $10,000 or more
26    but less than $100,000, a person is guilty of a Class 2

 

 

10400SB3229ham001- 629 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 630 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 631 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 632 -LRB104 19751 BDA 38627 a

1least once in each week for 3 weeks successively in a newspaper
2of general circulation in the county where the hearing is to be
3held.
4    If, as the result of the hearing, the Department makes any
5of the findings listed in items (i) through (iv) determines
6that the retailer was not properly registered at the time the
7cannabis was seized, or upon receipt of a properly executed
8waiver and consent to forfeiture as provided in this Section,
9the Department must enter an order declaring the cannabis
10confiscated and forfeited to the State, to be held by the
11Department for disposal by it as provided in Section 65-43.
12The Department must give notice of the order to the owner of
13the cannabis, if the owner is known, and also to the person in
14whose possession the cannabis was found, if that person is
15known and if the person in possession is not the owner of the
16cannabis. If neither the owner nor the person in possession of
17the cannabis is known, the Department must cause publication
18of the order to be made at least once in each week for 3 weeks
19successively in a newspaper of general circulation in the
20county where the hearing was held.
21(Source: P.A. 103-1001, eff. 8-9-24.)
 
22    (410 ILCS 705/20-50 rep.)
23    (410 ILCS 705/25-45 rep.)
24    (410 ILCS 705/30-50 rep.)
25    Section 170. The Cannabis Regulation and Tax Act is

 

 

10400SB3229ham001- 633 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 634 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 635 -LRB104 19751 BDA 38627 a

1    name, or packaging of any commercial non-cannabis or
2    non-hemp food, candy, beverage, or product primarily
3    marketed to children;
4        (4) any seal, flag, crest, coat of arms, or other
5    insignia likely to mislead a purchaser into believing the
6    product has been endorsed, made, or used by the State of
7    Illinois or any of its representatives, except where
8    authorized by this Act;
9        (5) any health claim; or
10        (6) any information that misstates or omits
11    cannabinoid content or ingredients.
12    (f) The Attorney General may enforce a violation of this
13Section 20 as an unlawful practice under the Consumer Fraud
14and Deceptive Business Practices Act.    
15    Nothing in this Act shall alter the legality of hemp or
16hemp products that are presently legal to possess or own.
17(Source: P.A. 100-1091, eff. 8-26-18.)
 
18    (505 ILCS 89/Act rep.)
19    Section 180. The Industrial Hemp Act is repealed on
20November 12, 2026.
 
21    Section 185. The Illinois Vehicle Code is amended by
22changing Sections 11-502.1 and 11-502.15 as follows:
 
23    (625 ILCS 5/11-502.1)

 

 

10400SB3229ham001- 636 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 637 -LRB104 19751 BDA 38627 a

1    of the sentence imposed; and
2        (3) shall be subject to revocation of his or her
3    status as a medical cannabis caregiver, medical cannabis
4    cultivation center agent, or medical cannabis dispensing
5    organization agent for a period of 2 years from the end of
6    the sentence imposed.
7(Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21;
8102-558, eff. 8-20-21.)
 
9    (625 ILCS 5/11-502.15)
10    Sec. 11-502.15. Possession of adult use cannabis in a
11motor vehicle.
12    (a) No driver may use cannabis within the passenger area
13of any motor vehicle upon a highway in this State.
14    (b) No driver may possess cannabis within any area of any
15motor vehicle upon a highway in this State except in a secured,
16sealed or resealable, odor-proof, child-resistant cannabis
17container that is inaccessible, unless subsection (e) of
18Section 15-85 of the Cannabis Regulation and Tax Act applies.
19    (c) No passenger may possess cannabis within any passenger
20area of any motor vehicle upon a highway in this State except
21in a secured, sealed or resealable, odor-proof,
22child-resistant cannabis container that is inaccessible,
23unless subsection (e) of Section 15-85 of the Cannabis
24Regulation and Tax Act applies.
25    (d) Any person who knowingly violates subsection (a), (b),

 

 

10400SB3229ham001- 638 -LRB104 19751 BDA 38627 a

1or (c) of this Section commits a Class A misdemeanor.
2(Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21.)
 
3    Section 190. The Cannabis Control Act is amended by
4changing Sections 4, 5, and 5.1 as follows:
 
5    (720 ILCS 550/4)  (from Ch. 56 1/2, par. 704)
6    Sec. 4. Except as otherwise provided in the Cannabis
7Regulation and Tax Act, and the Industrial Hemp Act, and the
8Illinois Hemp Act, it is unlawful for any person knowingly to
9possess cannabis.
10    Any person who violates this Section with respect to:
11        (a) not more than 10 grams of any substance containing
12    cannabis is guilty of a civil law violation punishable by
13    a minimum fine of $100 and a maximum fine of $200. The
14    proceeds of the fine shall be payable to the clerk of the
15    circuit court. Within 30 days after the deposit of the
16    fine, the clerk shall distribute the proceeds of the fine
17    as follows:
18            (1) $10 of the fine to the circuit clerk and $10 of
19        the fine to the law enforcement agency that issued the
20        citation; the proceeds of each $10 fine distributed to
21        the circuit clerk and each $10 fine distributed to the
22        law enforcement agency that issued the citation for
23        the violation shall be used to defer the cost of
24        automatic expungements under paragraph (2.5) of

 

 

10400SB3229ham001- 639 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 640 -LRB104 19751 BDA 38627 a

1        (d) more than 100 grams but not more than 500 grams of
2    any substance containing cannabis is guilty of a Class 4
3    felony; provided that if any offense under this subsection
4    (d) is a subsequent offense, the offender shall be guilty
5    of a Class 3 felony;
6        (e) more than 500 grams but not more than 2,000 grams
7    of any substance containing cannabis is guilty of a Class
8    3 felony;
9        (f) more than 2,000 grams but not more than 5,000
10    grams of any substance containing cannabis is guilty of a
11    Class 2 felony;
12        (g) more than 5,000 grams of any substance containing
13    cannabis is guilty of a Class 1 felony.
14    Fines and assessments, such as fees or administrative
15costs, authorized under this Section shall not be ordered or
16imposed against a minor subject to Article III, IV, or V of the
17Juvenile Court Act of 1987, or a minor under the age of 18
18transferred to adult court or excluded from juvenile court
19jurisdiction under Article V of the Juvenile Court Act of
201987, or the minor's parent, guardian, or legal custodian.
21(Source: P.A. 102-538, eff. 8-20-21; 103-379, eff. 7-28-23.)
 
22    (720 ILCS 550/5)  (from Ch. 56 1/2, par. 705)
23    Sec. 5. Except as otherwise provided in the Cannabis
24Regulation and Tax Act, and the Industrial Hemp Act, and the
25Illinois Hemp Act, it is unlawful for any person knowingly to

 

 

10400SB3229ham001- 641 -LRB104 19751 BDA 38627 a

1manufacture, deliver, or possess with intent to deliver, or
2manufacture, cannabis. Any person who violates this Section
3with respect to:
4        (a) not more than 2.5 grams of any substance
5    containing cannabis is guilty of a Class B misdemeanor;
6        (b) more than 2.5 grams but not more than 10 grams of
7    any substance containing cannabis is guilty of a Class A
8    misdemeanor;
9        (c) more than 10 grams but not more than 60 30 grams of
10    any substance containing cannabis is guilty of a Class 4
11    felony;
12        (d) more than 60 30 grams but not more than 500 grams
13    of any substance containing cannabis is guilty of a Class
14    3 felony for which a fine not to exceed $50,000 may be
15    imposed;
16        (e) more than 500 grams but not more than 2,000 grams
17    of any substance containing cannabis is guilty of a Class
18    2 felony for which a fine not to exceed $100,000 may be
19    imposed;
20        (f) more than 2,000 grams but not more than 5,000
21    grams of any substance containing cannabis is guilty of a
22    Class 1 felony for which a fine not to exceed $150,000 may
23    be imposed;
24        (g) more than 5,000 grams of any substance containing
25    cannabis is guilty of a Class X felony for which a fine not
26    to exceed $200,000 may be imposed.

 

 

10400SB3229ham001- 642 -LRB104 19751 BDA 38627 a

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

 

 

10400SB3229ham001- 643 -LRB104 19751 BDA 38627 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:
 

 

 

10400SB3229ham001- 644 -LRB104 19751 BDA 38627 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.".