Sen. Heather A. Steans

Filed: 5/28/2019

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1 AMENDMENT TO HOUSE BILL 1438

2 AMENDMENT NO. ______. Amend House Bill 1438 by replacing

3 everything after the enacting clause with the following:

4 "ARTICLE 1.

5 SHORT TITLE; FINDINGS; DEFINITIONS

6 Section 1-1. Short title. This Act may be cited as the

7 Cannabis Regulation and Tax Act.

8 Section 1-5. Findings.

9 (a) In the interest of allowing law enforcement to focus on

10 violent and property crimes, generating revenue for education,

11 substance abuse prevention and treatment, freeing public

12 resources to invest in communities and other public purposes,

13 and individual freedom, the General Assembly finds and declares

14 that the use of cannabis should be legal for persons 21 years

15 of age or older and should be taxed in a manner similar to

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1 alcohol.

2 (b) In the interest of the health and public safety of the

3 residents of Illinois, the General Assembly further finds and

4 declares that cannabis should be regulated in a manner similar

5 to alcohol so that:

6 (1) persons will have to show proof of age before

7 purchasing cannabis;

8 (2) selling, distributing, or transferring cannabis to

9 minors and other persons under 21 years of age shall remain

10 illegal;

11 (3) driving under the influence of cannabis shall

12 remain illegal;

13 (4) legitimate, taxpaying business people, and not

14 criminal actors, will conduct sales of cannabis;

15 (5) cannabis sold in this State will be tested,

16 labeled, and subject to additional regulation to ensure

17 that purchasers are informed and protected; and

18 (6) purchasers will be informed of any known health

19 risks associated with the use of cannabis, as concluded by

20 evidence-based, peer reviewed research.

21 (c) The General Assembly further finds and declares that it

22 is necessary to ensure consistency and fairness in the

23 application of this Act throughout the State and that,

24 therefore, the matters addressed by this Act are, except as

25 specified in this Act, matters of statewide concern.

26 (d) The General Assembly further finds and declares that

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1 this Act shall not diminish the State's duties and commitment

2 to seriously ill patients registered under the Compassionate

3 Use of Medical Cannabis Pilot Program Act, nor alter the

4 protections granted to them.

5 (e) The General Assembly supports and encourages labor

6 neutrality in the cannabis industry and further finds and

7 declares that employee workplace safety shall not be diminished

8 and employer workplace policies shall be interpreted broadly to

9 protect employee safety.

10 Section 1-10. Definitions. In this Act:

11 "Adult Use Cultivation Center License" means a license

12 issued by the Department of Agriculture that permits a person

13 to act as a cultivation center under this Act and any

14 administrative rule made in furtherance of this Act.

15 "Adult Use Dispensing Organization License" means a

16 license issued by the Department of Financial and Professional

17 Regulation that permits a person to act as a dispensing

18 organization under this Act and any administrative rule made in

19 furtherance of this Act.

20 "Advertise" means to engage in promotional activities

21 including, but not limited to: newspaper, radio, Internet and

22 electronic media, and television advertising; the distribution

23 of fliers and circulars; and the display of window and interior

24 signs.

25 "BLS Region" means a region in Illinois used by the United

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1 States Bureau of Labor Statistics to gather and categorize

2 certain employment and wage data. The 17 such regions in

3 Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,

4 Champaign-Urbana, Chicago-Naperville-Elgin, Danville,

5 Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,

6 Rockford, St. Louis, Springfield, Northwest Illinois

7 nonmetropolitan area, West Central Illinois nonmetropolitan

8 area, East Central Illinois nonmetropolitan area, and South

9 Illinois nonmetropolitan area.

10 "Cannabis" means marijuana, hashish, and other substances

11 that are identified as including any parts of the plant

12 Cannabis sativa and including derivatives or subspecies, such

13 as indica, of all strains of cannabis, whether growing or not;

14 the seeds thereof, the resin extracted from any part of the

15 plant; and any compound, manufacture, salt, derivative,

16 mixture, or preparation of the plant, its seeds, or resin,

17 including tetrahydrocannabinol (THC) and all other naturally

18 produced cannabinol derivatives, whether produced directly or

19 indirectly by extraction; however, "cannabis" does not include

20 the mature stalks of the plant, fiber produced from the stalks,

21 oil or cake made from the seeds of the plant, any other

22 compound, manufacture, salt, derivative, mixture, or

23 preparation of the mature stalks (except the resin extracted

24 from it), fiber, oil or cake, or the sterilized seed of the

25 plant that is incapable of germination. "Cannabis" does not

26 include industrial hemp as defined and authorized under the

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1 Industrial Hemp Act. "Cannabis" also means concentrate and

2 cannabis-infused products.

3 "Cannabis business establishment" means a cultivation

4 center, craft grower, processing organization, dispensing

5 organization, or transporting organization.

6 "Cannabis concentrate" means a product derived from

7 cannabis that is produced by extracting cannabinoids from the

8 plant through the use of propylene glycol, glycerin, butter,

9 olive oil or other typical cooking fats; water, ice, or dry

10 ice; or butane, propane, CO₂, ethanol, or isopropanol. The use

11 of any other solvent is expressly prohibited unless and until

12 it is approved by the Department of Agriculture.

13 "Cannabis container" means a sealed, traceable, container,

14 or package used for the purpose of containment of cannabis or

15 cannabis-infused product during transportation.

16 "Cannabis flower" means marijuana, hashish, and other

17 substances that are identified as including any parts of the

18 plant Cannabis sativa and including derivatives or subspecies,

19 such as indica, of all strains of cannabis; including raw kief,

20 leaves, and buds, but not resin that has been extracted from

21 any part of such plant; nor any compound, manufacture, salt,

22 derivative, mixture, or preparation of such plant, its seeds,

23 or resin.

24 "Cannabis-infused product" means a beverage, food, oil,

25 ointment, tincture, topical formulation, or another product

26 containing cannabis that is not intended to be smoked.

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1 "Cannabis plant monitoring system" or "plant monitoring

2 system" means a system that includes, but is not limited to,

3 testing and data collection established and maintained by the

4 cultivation center, craft grower, or processing organization

5 and that is available to the Department of Revenue, the

6 Department of Agriculture, the Department of Financial and

7 Professional Regulation, and the Department of State Police for

8 the purposes of documenting each cannabis plant and monitoring

9 plant development throughout the life cycle of a cannabis plant

10 cultivated for the intended use by a customer from seed

11 planting to final packaging.

12 "Cannabis testing facility" means an entity registered by

13 the Department of Agriculture to test cannabis for potency and

14 contaminants.

15 "Clone" means a plant section from a female cannabis plant

16 not yet rootbound, growing in a water solution or other

17 propagation matrix, that is capable of developing into a new

18 plant.

19 "Community College Cannabis Vocational Training Pilot

20 Program faculty participant" means a person who is 21 years of

21 age or older, licensed by the Department of Agriculture, and is

22 employed or contracted by an Illinois community college to

23 provide student instruction using cannabis plants at an

24 Illinois Community College.

25 "Community College Cannabis Vocational Training Pilot

26 Program faculty participant Agent Identification Card" means a

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1 document issued by the Department of Agriculture that

2 identifies a person as Community College Cannabis Vocational

3 Training Pilot Program faculty participant.

4 "Conditional Adult Use Dispensing Organization License"

5 means a license awarded to top-scoring applicants for an Adult

6 Use Dispensing Organization License that reserves the right to

7 an adult use dispensing organization license if the applicant

8 meets certain conditions described in this Act, but does not

9 entitle the recipient to begin purchasing or selling cannabis

10 or cannabis-infused products.

11 "Conditional Adult Use Cultivation Center License" means a

12 license awarded to top-scoring applicants for an Adult Use

13 Cultivation Center License that reserves the right to an Adult

14 Use Cultivation Center License if the applicant meets certain

15 conditions as determined by the Department of Agriculture by

16 rule, but does not entitle the recipient to begin growing,

17 processing, or selling cannabis or cannabis-infused products.

18 "Craft grower" means a facility operated by an organization

19 or business that is licensed by the Department of Agriculture

20 to cultivate, dry, cure, and package cannabis and perform other

21 necessary activities to make cannabis available for sale at a

22 dispensing organization or use at a processing organization. A

23 craft grower may contain up to 5,000 square feet of canopy

24 space on its premises for plants in the flowering state. The

25 Department of Agriculture may authorize an increase or decrease

26 of flowering stage cultivation space in increments of 3,000

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1 square feet by rule based on market need, craft grower

2 capacity, and the licensee's history of compliance or

3 noncompliance, with a maximum space of 14,000 square feet for

4 cultivating plants in the flowering stage, which must be

5 cultivated in all stages of growth in an enclosed and secure

6 area. A craft grower may share premises with a processing

7 organization or a dispensing organization, or both, provided

8 each licensee stores currency and cannabis or cannabis-infused

9 products in a separate secured vault to which the other

10 licensee does not have access or all licensees sharing a vault

11 share more than 50% of the same ownership.

12 "Craft grower agent" means a principal officer, board

13 member, employee, or other agent of a craft grower who is 21

14 years of age or older.

15 "Craft Grower Agent Identification Card" means a document

16 issued by the Department of Agriculture that identifies a

17 person as a craft grower agent.

18 "Cultivation center" means a facility operated by an

19 organization or business that is licensed by the Department of

20 Agriculture to cultivate, process, transport (unless otherwise

21 limited by this Act), and perform other necessary activities to

22 provide cannabis and cannabis-infused products to cannabis

23 business establishments.

24 "Cultivation center agent" means a principal officer,

25 board member, employee, or other agent of a cultivation center

26 who is 21 years of age or older.

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1 "Cultivation Center Agent Identification Card" means a

2 document issued by the Department of Agriculture that

3 identifies a person as a cultivation center agent.

4 "Currency" means currency and coin of the United States.

5 "Dispensary" means a facility operated by a dispensing

6 organization at which activities licensed by this Act may

7 occur.

8 "Dispensing organization" means a facility operated by an

9 organization or business that is licensed by the Department of

10 Financial and Professional Regulation to acquire cannabis from

11 a cultivation center, craft grower, processing organization,

12 or another dispensary for the purpose of selling or dispensing

13 cannabis, cannabis-infused products, cannabis seeds,

14 paraphernalia, or related supplies under this Act to purchasers

15 or to qualified registered medical cannabis patients and

16 caregivers. As used in this Act, dispensary organization shall

17 include a registered medical cannabis organization as defined

18 in the Compassionate Use of Medical Cannabis Pilot Program Act

19 or its successor Act that has obtained an Early Approval Adult

20 Use Dispensing Organization License.

21 "Dispensing organization agent" means a principal officer,

22 employee, or agent of a dispensing organization who is 21 years

23 of age or older.

24 "Dispensing organization agent identification card" means

25 a document issued by the Department of Financial and

26 Professional Regulation that identifies a person as a

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1 dispensing organization agent.

2 "Disproportionately Impacted Area" means a census tract or

3 comparable geographic area that satisfies the following

4 criteria as determined by the Department of Commerce and

5 Economic Opportunity, that:

6 (1) meets at least one of the following criteria:

7 (A) the area has a poverty rate of at least 20%

8 according to the latest federal decennial census; or

9 (B) 75% or more of the children in the area

10 participate in the federal free lunch program

11 according to reported statistics from the State Board

12 of Education; or

13 (C) at least 20% of the households in the area

14 receive assistance under the Supplemental Nutrition

15 Assistance Program; or

16 (D) the area has an average unemployment rate, as

17 determined by the Illinois Department of Employment

18 Security, that is more than 120% of the national

19 unemployment average, as determined by the United

20 States Department of Labor, for a period of at least 2

21 consecutive calendar years preceding the date of the

22 application; and

23 (2) has high rates of arrest, conviction, and

24 incarceration related to the sale, possession, use,

25 cultivation, manufacture, or transport of cannabis.

26 "Early Approval Adult Use Cultivation Center License"

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1 means a license that permits a medical cannabis cultivation

2 center licensed under the Compassionate Use of Medical Cannabis

3 Pilot Program Act as of the effective date of this Act to begin

4 cultivating, infusing, packaging, transporting (unless

5 otherwise provided in this Act), and selling cannabis to

6 cannabis business establishments for resale to purchasers as

7 permitted by this Act as of January 1, 2020.

8 "Early Approval Adult Use Dispensing Organization License"

9 means a license that permits a medical cannabis dispensing

10 organization licensed under the Compassionate Use of Medical

11 Cannabis Pilot Program Act as of the effective date of this Act

12 to begin selling cannabis to purchasers as permitted by this

13 Act as of January 1, 2020.

14 "Early Approval Adult Use Dispensing Organization at a

15 secondary site" means a license that permits a medical cannabis

16 dispensing organization licensed under the Compassionate Use

17 of Medical Cannabis Pilot Program Act as of the effective date

18 of this Act to begin selling cannabis to purchasers as

19 permitted by this Act on January 1, 2020 at a different

20 dispensary location from its existing registered medical

21 dispensary location.

22 "Enclosed, locked facility" means a room, greenhouse,

23 building, or other enclosed area equipped with locks or other

24 security devices that permit access only by cannabis business

25 establishment agents working for the licensed cannabis

26 business establishment or acting pursuant to this Act to

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1 cultivate, process, store, or distribute cannabis.

2 "Enclosed, locked space" means a closet, room, greenhouse,

3 building or other enclosed area equipped with locks or other

4 security devices that permit access only by authorized

5 individuals under this Act. "Enclosed, locked space" may

6 include:

7 (1) a space within a residential building that (i) is

8 the primary residence of the individual cultivating 5 or

9 fewer cannabis plants that are more than 5 inches tall and

10 (ii) includes sleeping quarters and indoor plumbing. The

11 space must only be accessible by a key or code that is

12 different from any key or code that can be used to access

13 the residential building from the exterior; or

14 (2) a structure, such as a shed or greenhouse, that

15 lies on the same plot of land as a residential building

16 that (i) includes sleeping quarters and indoor plumbing and

17 (ii) is used as a primary residence by the person

18 cultivating 5 or fewer cannabis plants that are more than 5

19 inches tall, such as a shed or greenhouse. The structure

20 must remain locked when it is unoccupied by people.

21 "Financial institution" has the same meaning as "financial

22 organization" as defined in Section 1501 of the Illinois Income

23 Tax Act, and also includes the holding companies, subsidiaries,

24 and affiliates of such financial organizations.

25 "Flowering stage" means the stage of cultivation where and

26 when a cannabis plant is cultivated to produce plant material

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1 for cannabis products. This includes mature plants as follows:

2 (1) if greater than 2 stigmas are visible at each

3 internode of the plant; or

4 (2) if the cannabis plant is in an area that has been

5 intentionally deprived of light for a period of time

6 intended to produce flower buds and induce maturation, from

7 the moment the light deprivation began through the

8 remainder of the marijuana plant growth cycle.

9 "Individual" means a natural person.

10 "Infuser organization" or "infuser" means a facility

11 operated by an organization or business that is licensed by the

12 Department of Agriculture to directly incorporate cannabis or

13 cannabis concentrate into a product formulation to produce a

14 cannabis-infused product.

15 "Kief" means the resinous crystal-like trichomes that are

16 found on cannabis and that are accumulated, resulting in a

17 higher concentration of cannabinoids, untreated by heat or

18 pressure, or extracted using a solvent.

19 "Labor peace agreement" means an agreement between a

20 cannabis business establishment and any labor organization

21 recognized under the National Labor Relations Act, referred to

22 in this Act as a bona fide labor organization, that prohibits

23 labor organizations and members from engaging in picketing,

24 work stoppages, boycotts, and any other economic interference

25 with the cannabis business establishment. This agreement means

26 that the cannabis business establishment has agreed not to

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1 disrupt efforts by the bona fide labor organization to

2 communicate with, and attempt to organize and represent, the

3 cannabis business establishment's employees. The agreement

4 shall provide a bona fide labor organization access at

5 reasonable times to areas in which the cannabis business

6 establishment's employees work, for the purpose of meeting with

7 employees to discuss their right to representation, employment

8 rights under State law, and terms and conditions of employment.

9 This type of agreement shall not mandate a particular method of

10 election or certification of the bona fide labor organization.

11 "Limited access area" means a building, room, or other area

12 under the control of a cannabis dispensing organization

13 licensed under this Act and upon the licensed premises with

14 access limited to purchasers, dispensing organization owners

15 and other dispensing organization agents, or service

16 professionals conducting business with the dispensing

17 organization.

18 "Member of an impacted family" means an individual who has

19 a parent, legal guardian, child, spouse, or dependent, or was a

20 dependent of an individual who, prior to the effective date of

21 this Act, was arrested for, convicted of, or adjudicated

22 delinquent for any offense that is eligible for expungement

23 under this Act.

24 "Mother plant" means a cannabis plant that is cultivated or

25 maintained for the purpose of generating clones, and that will

26 not be used to produce plant material for sale to an infuser or

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1 dispensing organization.

2 "Ordinary public view" means within the sight line with

3 normal visual range of a person, unassisted by visual aids,

4 from a public street or sidewalk adjacent to real property, or

5 from within an adjacent property.

6 "Ownership and control" means ownership of at least 51% of

7 the business, including corporate stock if a corporation, and

8 control over the management and day-to-day operations of the

9 business and an interest in the capital, assets, and profits

10 and losses of the business proportionate to percentage of

11 ownership.

12 "Person" means a natural individual, firm, partnership,

13 association, joint stock company, joint venture, public or

14 private corporation, limited liability company, or a receiver,

15 executor, trustee, guardian, or other representative appointed

16 by order of any court.

17 "Possession limit" means the amount of cannabis under

18 Section 10-10 that may be possessed at any one time by a person

19 21 years of age or older or who is a registered qualifying

20 medical cannabis patient or caregiver under the Compassionate

21 Use of Medical Cannabis Pilot Program Act.

22 "Principal officer" includes a cannabis business

23 establishment applicant or licensed cannabis business

24 establishment's board member, owner with more than 1% interest

25 of the total cannabis business establishment or more than 5%

26 interest of the total cannabis business establishment of a

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1 publicly traded company, president, vice president, secretary,

2 treasurer, partner, officer, member, manager member, or person

3 with a profit sharing, financial interest, or revenue sharing

4 arrangement. The definition includes a person with authority to

5 control the cannabis business establishment, a person who

6 assumes responsibility for the debts of the cannabis business

7 establishment and who is further defined in this Act.

8 "Primary residence" means a dwelling where a person usually

9 stays or stays more often than other locations. It may be

10 determined by, without limitation, presence, tax filings;

11 address on an Illinois driver's license, an Illinois

12 Identification Card, or an Illinois Person with a Disability

13 Identification Card; or voter registration. No person may have

14 more than one primary residence.

15 "Processing organization" or "processor" means a facility

16 operated by an organization or business that is licensed by the

17 Department of Agriculture to either extract constituent

18 chemicals or compounds to produce cannabis concentrate or

19 incorporate cannabis or cannabis concentrate into a product

20 formulation to produce a cannabis product.

21 "Processing organization agent" means a principal officer,

22 board member, employee, or agent of a processing organization.

23 "Processing organization agent identification card" means

24 a document issued by the Department of Agriculture that

25 identifies a person as a processing organization agent.

26 "Purchaser" means a person 21 years of age or older who

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1 acquires cannabis for a valuable consideration. "Purchaser"

2 does not include a cardholder under the Compassionate Use of

3 Medical Cannabis Pilot Program Act.

4 "Qualified Social Equity Applicant" means a Social Equity

5 Applicant who has been awarded a conditional license under this

6 Act to operate a cannabis business establishment.

7 "Resided" means an individual's primary residence was

8 located within the relevant geographic area as established by 2

9 of the following:

10 (1) a signed lease agreement that includes the

11 applicant's name;

12 (2) a property deed that includes the applicant's name;

13 (3) school records;

14 (4) a voter registration card;

15 (5) an Illinois driver's license, an Illinois

16 Identification Card, or an Illinois Person with a

17 Disability Identification Card;

18 (6) a paycheck stub;

19 (7) a utility bill; or

20 (8) 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

23 combustion of cannabis.

24 "Social Equity Applicant" means an applicant that is an

25 Illinois resident that meets one of the following criteria:

26 (1) an applicant with at least 51% ownership and

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1 control by one or more individuals who have resided for at

2 least 5 of the preceding 10 years in a Disproportionately

3 Impacted Area;

4 (2) an applicant with at least 51% 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 member of an

18 impacted family.

19 Nothing in this Act shall be construed to preempt or limit

20 the duties of any employer under the Job Opportunities for

21 Qualified Applicants Act. Nothing in this Act shall permit an

22 employer to require an employee to disclose sealed or expunged

23 offenses, unless otherwise required by law.

24 "Tincture" means a cannabis-infused solution, typically

25 comprised of alcohol, glycerin, or vegetable oils, derived

26 either directly from the cannabis plant or from a processed

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1 cannabis extract. A tincture is not an alcoholic liquor as

2 defined in the Liquor Control Act of 1934. A tincture shall

3 include a calibrated dropper or other similar device capable of

4 accurately measuring servings.

5 "Transporting organization" or "transporter" means an

6 organization or business that is licensed by the Department of

7 Agriculture to transport cannabis on behalf of a cannabis

8 business establishment or a community college licensed under

9 the Community College Cannabis Vocational Training Pilot

10 Program.

11 "Transporting organization agent" means a principal

12 officer, board member, employee, or agent of a transporting

13 organization.

14 "Transporting organization agent identification card"

15 means a document issued by the Department of Agriculture that

16 identifies a person as a transporting organization agent.

17 "Unit of local government" means any county, city, village,

18 or incorporated town.

19 "Vegetative stage" means the stage of cultivation in which

20 a cannabis plant is propagated to produce additional cannabis

21 plants or reach a sufficient size for production. This includes

22 seedlings, clones, mothers, and other immature cannabis plants

23 as follows:

24 (1) if the cannabis plant is in an area that has not

25 been intentionally deprived of light for a period of time

26 intended to produce flower buds and induce maturation, it

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1 has no more than 2 stigmas visible at each internode of the

2 cannabis plant; or

3 (2) any cannabis plant that is cultivated solely for

4 the purpose of propagating clones and is never used to

5 produce cannabis.

6 ARTICLE 5.

7 AUTHORITY

8 Section 5-5. Sharing of authority. Notwithstanding any

9 provision or law to the contrary, any authority granted to any

10 State agency or State employees or appointees under the

11 Compassionate Use of Medical Cannabis Pilot Program Act shall

12 be shared by any State agency or State employees or appointees

13 given authority to license, discipline, revoke, regulate, or

14 make rules under this Act.

15 Section 5-10. Department of Agriculture. The Department of

16 Agriculture shall administer and enforce provisions of this Act

17 relating to the oversight and registration of cultivation

18 centers, craft growers, infuser organizations, and

19 transporting organizations and agents, including the issuance

20 of identification cards and establishing limits on potency or

21 serving size for cannabis or cannabis products. The Department

22 of Agriculture may suspend or revoke the license of, or impose

23 other penalties upon cultivation centers, craft growers,

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1 infuser organizations, transporting organizations, and their

2 principal officers, Agents-in-Charge, and agents for

3 violations of this Act and any rules adopted under this Act.

4 Section 5-15. Department of Financial and Professional

5 Regulation. The Department of Financial and Professional

6 Regulation shall enforce the provisions of this Act relating to

7 the oversight and registration of dispensing organizations and

8 agents, including the issuance of identification cards for

9 dispensing organization agents. The Department of Financial

10 and Professional Regulation may suspend or revoke the license

11 of, or impose other penalties upon, dispensing organizations

12 for violations of this Act and any rules adopted under this

13 Act.

14 Section 5-20. Background checks.

15 (a) Through the Department of State Police, the licensing

16 or issuing Department shall conduct a criminal history record

17 check of the prospective principal officers, board members, and

18 agents of a cannabis business establishment applying for a

19 license or identification card under this Act.

20 Each cannabis business establishment prospective principal

21 officer, board member, or agent shall submit his or her

22 fingerprints to the Department of State Police in the form and

23 manner prescribed by the Department of State Police.

24 Such fingerprints shall be transmitted through a live scan

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1 fingerprint vendor licensed by the Department of Financial and

2 Professional Regulation. These fingerprints shall be checked

3 against the fingerprint records now and hereafter filed in the

4 Department of State Police and Federal Bureau of Investigation

5 criminal history records databases. The Department of State

6 Police shall charge a fee for conducting the criminal history

7 record check, which shall be deposited into the State Police

8 Services Fund and shall not exceed the actual cost of the State

9 and national criminal history record check. The Department of

10 State Police shall furnish, pursuant to positive

11 identification, all Illinois conviction information and shall

12 forward the national criminal history record information to:

13 (i) the Department of Agriculture, with respect to a

14 cultivation center, craft grower, infuser organization, or

15 transporting organization; or

16 (ii) the Department of Financial and Professional

17 Regulation, with respect to a dispensing organization.

18 (b) When applying for the initial license or identification

19 card, the background checks for all prospective principal

20 officers, board members, and agents shall be completed before

21 submitting the application to the licensing or issuing agency.

22 (c) All applications for licensure under this Act by

23 applicants with criminal convictions shall be subject to

24 Sections 2105-131, 2105-135, and 2105-205 of the Department of

25 Professional Regulation Law of the Civil Administrative Code of

26 Illinois.

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1 Section 5-25. Department of Public Health to make health

2 warning recommendations.

3 (a) The Department of Public Health shall make

4 recommendations to the Department of Agriculture and the

5 Department of Financial and Professional Regulation on

6 appropriate health warnings for dispensaries and advertising,

7 which may apply to all cannabis products, including item-type

8 specific labeling or warning requirements, regulate the

9 facility where cannabis-infused products are made, regulate

10 cannabis-infused products as provided in subsection (e) of

11 Section 55-5, and facilitate the Adult Use Cannabis Health

12 Advisory Committee.

13 (b) An Adult Use Cannabis Health Advisory Committee is

14 hereby created and shall meet at least twice annually. The

15 Chairperson may schedule meetings more frequently upon his or

16 her initiative or upon the request of a Committee member.

17 Meetings may be held in person or by teleconference. The

18 Committee shall discuss and monitor changes in drug use data in

19 Illinois and the emerging science and medical information

20 relevant to the health effects associated with cannabis use and

21 may provide recommendations to the Department of Human Services

22 about public health awareness campaigns and messages. The

23 Committee shall include the following members appointed by the

24 Governor and shall represent the geographic, ethnic, and racial

25 diversity of the State:

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1 (1) The Director of Public Health, or his or her

2 designee, who shall serve as the Chairperson.

3 (2) The Secretary of Human Services, or his or her

4 designee, who shall serve as the Co-Chairperson.

5 (3) A representative of the poison control center.

6 (4) A pharmacologist.

7 (5) A pulmonologist.

8 (6) An emergency room physician.

9 (7) An emergency medical technician, paramedic, or

10 other first responder.

11 (8) A nurse practicing in a school-based setting.

12 (9) A psychologist.

13 (10) A neonatologist.

14 (11) An obstetrician-gynecologist.

15 (12) A drug epidemiologist.

16 (13) A medical toxicologist.

17 (14) An addiction psychiatrist.

18 (15) A pediatrician.

19 (16) A representative of a statewide professional

20 public health organization.

21 (17) A representative of a statewide hospital/health

22 system association.

23 (18) An individual registered as a patient in the

24 Compassionate Use of Medical Cannabis Pilot Program.

25 (19) An individual registered as a caregiver in the

26 Compassionate Use of Medical Cannabis Pilot Program.

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1 (20) A representative of an organization focusing on

2 cannabis-related policy.

3 (21) A representative of an organization focusing on

4 the civil liberties of individuals who reside in Illinois.

5 (22) A representative of the criminal defense or civil

6 aid community of attorneys serving Disproportionately

7 Impacted Areas.

8 (23) A representative of licensed cannabis business

9 establishments.

10 (24) A Social Equity Applicant.

11 (c) The Committee shall provide a report by September 30,

12 2021, and every year thereafter, to the General Assembly. The

13 Department of Public Health shall make the report available on

14 its website.

15 Section 5-30. Department of Human Services. The Department

16 of Human Services shall identify evidence-based programs for

17 preventive mental health, the prevention or treatment of

18 alcohol abuse, tobacco use, illegal drug use (including

19 prescription drugs), and cannabis use by pregnant women, and

20 make policy recommendations, as appropriate, to the Adult Use

21 Cannabis Health Advisory Committee. The Department of Human

22 Services shall develop and disseminate educational materials

23 for purchasers based on recommendations received from the

24 Department of Public Health and the Adult Use Cannabis Health

25 Advisory Committee.

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1 Section 5-45. Illinois Cannabis Regulation Oversight

2 Officer.

3 (a) The position of Illinois Cannabis Regulation Oversight

4 Officer is created within the Department of Financial and

5 Professional Regulation under the Secretary of Financial and

6 Professional Regulation. The Illinois Cannabis Regulation

7 Oversight Officer shall be appointed by the Governor with the

8 advice and consent of the Senate. The term of office of the

9 Officer shall expire on the third Monday of January in

10 odd-numbered years provided that he or she shall hold office

11 until a successor is appointed and qualified. In case of

12 vacancy in office during the recess of the Senate, the Governor

13 shall make a temporary appointment until the next meeting of

14 the Senate, when the Governor shall nominate some person to

15 fill the office, and any person so nominated who is confirmed

16 by the Senate shall hold office during the remainder of the

17 term and until his or her successor is appointed and qualified.

18 (b) The Illinois Cannabis Regulation Oversight Officer

19 may:

20 (1) maintain a staff;

21 (2) make recommendations for policy, statute, and rule

22 changes;

23 (3) collect data both in Illinois and outside Illinois

24 regarding the regulation of cannabis;

25 (4) compile or assist in the compilation of any reports

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1 required by this Act;

2 (5) ensure the coordination of efforts between various

3 State agencies involved in regulating and taxing the sale

4 of cannabis in Illinois; and

5 (6) encourage, promote, suggest, and report best

6 practices for ensuring diversity in the cannabis industry

7 in Illinois.

8 (c) The Illinois Cannabis Regulation Oversight Officer

9 shall not:

10 (1) participate in the issuance of any business

11 licensing or the making of awards; or

12 (2) participate in any adjudicative decision-making

13 process involving licensing or licensee discipline.

14 (d) Any funding required for the Illinois Cannabis

15 Regulation Oversight Officer, its staff, or its activities

16 shall be drawn from the Cannabis Regulation Fund.

17 (e) The Illinois Cannabis Regulation Oversight Officer

18 shall commission and publish a disparity and availability study

19 by March 1, 2021 that: (1) evaluates whether there exists

20 discrimination in the State's cannabis industry; and (2) if so,

21 evaluates the impact of such discrimination on the State and

22 includes recommendations to the Department of Financial and

23 Professional Regulation and the Department of Agriculture for

24 reducing or eliminating any identified barriers to entry in the

25 cannabis market. The Illinois Cannabis Regulation Oversight

26 Officer shall forward a copy of its findings and

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1 recommendations to the Department of Financial and

2 Professional Regulation, the Department of Agriculture, the

3 Department of Commerce and Economic Opportunity, the General

4 Assembly, and the Governor.

5 (f) The Illinois Cannabis Regulation Oversight Officer may

6 compile, collect, or otherwise gather data necessary for the

7 administration of this Act and to carry out the Officer's duty

8 relating to the recommendation of policy changes. The Illinois

9 Cannabis Regulation Oversight Officer may direct the

10 Department of Agriculture, Department of Financial and

11 Professional Regulation, Department of Public Health,

12 Department of Human Services, and Department of Commerce and

13 Economic Opportunity to assist in the compilation, collection,

14 and data gathering authorized pursuant to this subsection. The

15 Illinois Cannabis Regulation Oversight Officer shall compile

16 all of the data into a single report and submit the report to

17 the Governor and the General Assembly and publish the report on

18 its website.

19 ARTICLE 7.

20 SOCIAL EQUITY IN THE CANNABIS INDUSTRY

21 Section 7-1. Findings.

22 The General Assembly finds that the medical cannabis

23 industry, established in 2014 through the Compassionate Use of

24 Medical Cannabis Pilot Program Act, has shown that additional

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1 efforts are needed to reduce barriers to ownership. Through

2 that program, 55 licenses for dispensing organizations and 20

3 licenses for cultivation centers have been issued. Those

4 licenses are held by only a small number of businesses, the

5 ownership of which does not sufficiently meet the General

6 Assembly's interest in business ownership that reflects the

7 population of the State of Illinois and that demonstrates the

8 need to reduce barriers to entry for individuals and

9 communities most adversely impacted by the enforcement of

10 cannabis-related laws.

11 (b) In the interest of establishing a legal cannabis

12 industry that is equitable and accessible to those most

13 adversely impacted by the enforcement of drug-related laws in

14 this State, including cannabis-related laws, the General

15 Assembly finds and declares that a social equity program should

16 be established.

17 (c) The General Assembly also finds and declares that

18 individuals who have been arrested or incarcerated due to drug

19 laws suffer long-lasting negative consequences, including

20 impacts to employment, business ownership, housing, health,

21 and long-term financial well-being.

22 (d) The General Assembly also finds and declares that

23 family members, especially children, and communities of those

24 who have been arrested or incarcerated due to drug laws, suffer

25 from emotional, psychological, and financial harms as a result

26 of such arrests or incarcerations.

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1 (e) Furthermore, the General Assembly finds and declares

2 that certain communities have disproportionately suffered the

3 harms of enforcement of cannabis-related laws. Those

4 communities face greater difficulties accessing traditional

5 banking systems and capital for establishing businesses.

6 (f) The General Assembly also finds that individuals who

7 have resided in areas of high poverty suffer negative

8 consequences, including barriers to entry in employment,

9 business ownership, housing, health, and long-term financial

10 well-being.

11 (g) The General Assembly also finds and declares that

12 promotion of business ownership by individuals who have resided

13 in areas of high poverty and high enforcement of

14 cannabis-related laws furthers an equitable cannabis industry.

15 (h) Therefore, in the interest of remedying the harms

16 resulting from the disproportionate enforcement of

17 cannabis-related laws, the General Assembly finds and declares

18 that a social equity program should offer, among other things,

19 financial assistance and license application benefits to

20 individuals most directly and adversely impacted by the

21 enforcement of cannabis-related laws who are interested in

22 starting cannabis business establishments.

23 Section 7-10. Cannabis Business Development Fund.

24 (a) There is created in the State treasury a special fund,

25 which shall be held separate and apart from all other State

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1 moneys, to be known as the Cannabis Business Development Fund.

2 The Cannabis Business Development Fund shall be exclusively

3 used for the following purposes:

4 (1) to provide low-interest rate loans to Social Equity

5 Applicants to pay for ordinary and necessary expenses to

6 start and operate a cannabis business establishment

7 permitted by this Act;

8 (2) to provide grants to Qualified Social Equity

9 Applicants to pay for ordinary and necessary expenses to

10 start and operate a cannabis business establishment

11 permitted by this Act;

12 (3) to compensate the Department of Commerce and

13 Economic Opportunity for any costs related to the provision

14 of low-interest loans and grants to Qualified Social Equity

15 Applicants;

16 (4) to pay for outreach that may be provided or

17 targeted to attract and support Social Equity Applicants;

18 (5) (blank);

19 (6) to conduct any study or research concerning the

20 participation of minorities, women, veterans, or people

21 with disabilities in the cannabis industry, including,

22 without limitation, barriers to such individuals entering

23 the industry as equity owners of cannabis business

24 establishments;

25 (7) (blank); and

26 (8) to assist with job training and technical

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1 assistance for residents in Disproportionately Impacted

2 Areas.

3 (b) All moneys collected under Sections 15-15 and 15-20 for

4 Early Approval Adult Use Dispensing Organization Licenses

5 issued before January 1, 2021 and remunerations made as a

6 result of transfers of permits awarded to Qualified Social

7 Equity Applicants shall be deposited into the Cannabis Business

8 Development Fund.

9 (c) As soon as practical after July 1, 2019, the

10 Comptroller shall order and the Treasurer shall transfer

11 $12,000,000 from the Compassionate Use of Medical Cannabis Fund

12 to the Cannabis Business Development Fund.

13 (d) Notwithstanding any other law to the contrary, the

14 Cannabis Business Development Fund is not subject to sweeps,

15 administrative charge-backs, or any other fiscal or budgetary

16 maneuver that would in any way transfer any amounts from the

17 Cannabis Business Development Fund into any other fund of the

18 State.

19 Section 7-15. Loans and grants to Social Equity Applicants.

20 (a) The Department of Commerce and Economic Opportunity

21 shall establish grant and loan programs, subject to

22 appropriations from the Cannabis Business Development Fund,

23 for the purposes of providing financial assistance, loans,

24 grants, and technical assistance to Social Equity Applicants.

25 (b) The Department of Commerce and Economic Opportunity has

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1 the power to:

2 (1) provide Cannabis Social Equity loans and grants

3 from appropriations from the Cannabis Business Development

4 Fund to assist Social Equity Applicants in gaining entry

5 to, and successfully operating in, the State's regulated

6 cannabis marketplace;

7 (2) enter into agreements that set forth terms and

8 conditions of the financial assistance, accept funds or

9 grants, and engage in cooperation with private entities and

10 agencies of State or local government to carry out the

11 purposes of this Section;

12 (3) fix, determine, charge, and collect any premiums,

13 fees, charges, costs and expenses, including application

14 fees, commitment fees, program fees, financing charges, or

15 publication fees in connection with its activities under

16 this Section;

17 (4) coordinate assistance under these loan programs

18 with activities of the Illinois Department of Financial and

19 Professional Regulation, the Illinois Department of

20 Agriculture, and other agencies as needed to maximize the

21 effectiveness and efficiency of this Act;

22 (5) provide staff, administration, and related support

23 required to administer this Section;

24 (6) take whatever actions are necessary or appropriate

25 to protect the State's interest in the event of bankruptcy,

26 default, foreclosure, or noncompliance with the terms and

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1 conditions of financial assistance provided under this

2 Section, including the ability to recapture funds if the

3 recipient is found to be noncompliant with the terms and

4 conditions of the financial assistance agreement;

5 (7) establish application, notification, contract, and

6 other forms, procedures, or rules deemed necessary and

7 appropriate; and

8 (8) utilize vendors or contract work to carry out the

9 purposes of this Act.

10 (c) Loans made under this Section:

11 (1) shall only be made if, in the Department's

12 judgment, the project furthers the goals set forth in this

13 Act; and

14 (2) shall be in such principal amount and form and

15 contain such terms and provisions with respect to security,

16 insurance, reporting, delinquency charges, default

17 remedies, and other matters as the Department shall

18 determine appropriate to protect the public interest and to

19 be consistent with the purposes of this Section. The terms

20 and provisions may be less than required for similar loans

21 not covered by this Section.

22 (d) Grants made under this Section shall be awarded on a

23 competitive and annual basis under the Grant Accountability and

24 Transparency Act. Grants made under this Section shall further

25 and promote the goals of this Act, including promotion of

26 Social Equity Applicants, job training and workforce

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1 development, and technical assistance to Social Equity

2 Applicants.

3 (e) Beginning January 1, 2021 and each year thereafter, the

4 Department shall annually report to the Governor and the

5 General Assembly on the outcomes and effectiveness of this

6 Section that shall include the following:

7 (1) the number of persons or businesses receiving

8 financial assistance under this Section;

9 (2) the amount in financial assistance awarded in the

10 aggregate, in addition to the amount of loans made that are

11 outstanding and the amount of grants awarded;

12 (3) the location of the project engaged in by the

13 person or business; and

14 (4) if applicable, the number of new jobs and other

15 forms of economic output created as a result of the

16 financial assistance.

17 (f) The Department of Commerce and Economic Opportunity

18 shall include engagement with individuals with limited English

19 proficiency as part of its outreach provided or targeted to

20 attract and support Social Equity Applicants.

21 Section 7-20. Fee waivers.

22 (a) For Social Equity Applicants, the Department of

23 Financial and Professional Regulation and the Department of

24 Agriculture shall waive 50% of any nonrefundable license

25 application fees, any nonrefundable fees associated with

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1 purchasing a license to operate a cannabis business

2 establishment, and any surety bond or other financial

3 requirements, provided a Social Equity Applicant meets the

4 following qualifications at the time the payment 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 income in the previous calendar year;

9 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 2

13 other licenses for cannabis business establishments in the

14 State of Illinois.

15 (b) The Department of Financial and Professional

16 Regulation and the Department of Agriculture may require Social

17 Equity Applicants to attest that they meet the requirements for

18 a fee waiver as provided in subsection (a) and to provide

19 evidence of annual total income in the previous calendar year.

20 (c) If the Department of Financial and Professional

21 Regulation or the Department of Agriculture determines that an

22 applicant who applied as a Social Equity Applicant is not

23 eligible for such status, the applicant shall be provided an

24 additional 10 days to provide alternative evidence that he or

25 she qualifies as a Social Equity Applicant. Alternatively, the

26 applicant may pay the remainder of the waived fee and be

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1 considered as a non-Social Equity Applicant. If the applicant

2 cannot do either, then the Departments may keep the initial

3 application fee and the application shall not be graded.

4 Section 7-25. Transfer of license awarded to Social Equity

5 Applicant.

6 (a) In the event a Social Equity Applicant seeks to

7 transfer, sell, or grant a cannabis business establishment

8 license within 5 years after it was issued to a person or

9 entity that does not qualify as a Social Equity Applicant, the

10 transfer agreement shall require the new license holder to pay

11 the Cannabis Business Development Fund an amount equal to:

12 (1) any fees that were waived by any State agency based

13 on the applicant's status as a Social Equity Applicant, if

14 applicable;

15 (2) any outstanding amount owed by the Qualified Social

16 Equity Applicant for a loan through the Cannabis Business

17 Development Fund, if applicable; and

18 (3) the full amount of any grants that the Qualified

19 Social Equity Applicant received from the Department of

20 Commerce and Economic Opportunity, if applicable.

21 (b) Transfers of cannabis business establishment licenses

22 awarded to a Social Equity Applicant are subject to all other

23 provisions of this Act, the Compassionate Use of Medical

24 Cannabis Pilot Program Act, and rules regarding transfers.

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1 Section 7-30. Reporting. By January 1, 2021, and on January

2 1 of every year thereafter, or upon request by the Illinois

3 Cannabis Regulation Oversight Officer, each cannabis business

4 establishment licensed under this Act shall report to the

5 Illinois Cannabis Regulation Oversight Officer, on a form to be

6 provided by the Illinois Cannabis Regulation Oversight

7 Officer, information that will allow it to assess the extent of

8 diversity in the medical and adult use cannabis industry and

9 methods for reducing or eliminating any identified barriers to

10 entry, including access to capital. The information to be

11 collected shall be designed to identify the following:

12 (1) the number and percentage of licenses provided to

13 Social Equity Applicants and to businesses owned by

14 minorities, women, veterans, and people with disabilities;

15 (2) the total number and percentage of employees in the

16 cannabis industry who meet the criteria in (3)(i) or

17 (3)(ii) in the definition of Social Equity Applicant or who

18 are minorities, women, veterans, or people with

19 disabilities;

20 (3) the total number and percentage of contractors and

21 subcontractors in the cannabis industry that meet the

22 definition of a Social Equity Applicant or who are owned by

23 minorities, women, veterans, or people with disabilities,

24 if known to the cannabis business establishment; and

25 (4) recommendations on reducing or eliminating any

26 identified barriers to entry, including access to capital,

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1 in the cannabis industry.

2 ARTICLE 10.

3 PERSONAL USE OF CANNABIS

4 Section 10-5. Personal use of cannabis; restrictions on

5 cultivation; penalties.

6 (a) Beginning January 1, 2020, notwithstanding any other

7 provision of law, and except as otherwise provided in this Act,

8 the following acts are not a violation of this Act and shall

9 not be a criminal or civil offense under State law or the

10 ordinances of any unit of local government of this State or be

11 a basis for seizure or forfeiture of assets under State law for

12 persons other than natural individuals under 21 years of age:

13 (1) possession, consumption, use, purchase, obtaining,

14 or transporting an amount of cannabis for personal use that

15 does not exceed the possession limit under Section 10-10 or

16 otherwise in accordance with the requirements of this Act;

17 (2) cultivation of cannabis for personal use in

18 accordance with the requirements of this Act; and

19 (3) controlling property if actions that are

20 authorized by this Act occur on the property in accordance

21 with this Act.

22 (a-1) Beginning January 1, 2020, notwithstanding any other

23 provision of law, and except as otherwise provided in this Act,

24 possessing, consuming, using, purchasing, obtaining, or

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1 transporting an amount of cannabis purchased or produced in

2 accordance with this Act that does not exceed the possession

3 limit under subsection (a) of Section 10-10 shall not be a

4 basis for seizure or forfeiture of assets under State law.

5 (b) Cultivating cannabis for personal use is subject to the

6 following limitations:

7 (1) An Illinois resident 21 years of age or older who

8 is a registered qualifying patient under the Compassionate

9 Use of Medical Cannabis Pilot Program Act may cultivate

10 cannabis plants, with a limit of 5 plants that are more

11 than 5 inches tall, per household without a cultivation

12 center or craft grower license. In this Section, "resident"

13 means a person who has been domiciled in the State of

14 Illinois for a period of 30 days before cultivation.

15 (2) Cannabis cultivation must take place in an

16 enclosed, locked space.

17 (3) Adult registered qualifying patients may purchase

18 cannabis seeds from a dispensary for the purpose of home

19 cultivation. Seeds may not be given or sold to any other

20 person.

21 (4) Cannabis plants shall not be stored or placed in a

22 location where they are subject to ordinary public view, as

23 defined in this Act. A registered qualifying patient who

24 cultivates cannabis under this Section shall take

25 reasonable precautions to ensure the plants are secure from

26 unauthorized access, including unauthorized access by a

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1 person under 21 years of age.

2 (5) Cannabis cultivation may occur only on residential

3 property lawfully in possession of the cultivator or with

4 the consent of the person in lawful possession of the

5 property. An owner or lessor of residential property may

6 prohibit the cultivation of cannabis by a lessee.

7 (6) (Blank).

8 (7) A dwelling, residence, apartment, condominium

9 unit, enclosed, locked space, or piece of property not

10 divided into multiple dwelling units shall not contain more

11 than 5 plants at any one time.

12 (8) Cannabis plants may only be tended by registered

13 qualifying patients who reside at the residence, or their

14 authorized agent attending to the residence for brief

15 periods, such as when the qualifying patient is temporarily

16 away from the residence.

17 (9) A registered qualifying patient who cultivates

18 more than the allowable number of cannabis plants, or who

19 sells or gives away cannabis plants, cannabis, or

20 cannabis-infused products produced under this Section, is

21 liable for penalties as provided by law, including the

22 Cannabis Control Act, in addition to loss of home

23 cultivation privileges as established by rule.

24 Section 10-10. Possession limit.

25 (a) Except if otherwise authorized by this Act, for a

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1 person who is 21 years of age or older and a resident of this

2 State, the possession limit is as follows:

3 (1) 30 grams of cannabis flower;

4 (2) no more than 500 milligrams of THC contained in

5 cannabis-infused product;

6 (3) 5 grams of cannabis concentrate; and

7 (4) for registered qualifying patients, any cannabis

8 produced by cannabis plants grown under subsection (b) of

9 Section 10-5, provided any amount of cannabis produced in

10 excess of 30 grams of raw cannabis or its equivalent must

11 remain secured within the residence or residential

12 property in which it was grown.

13 (b) For a person who is 21 years of age or older and who is

14 not a resident of this State, the possession limit is:

15 (1) 15 grams of cannabis flower;

16 (2) 2.5 grams of cannabis concentrate; and

17 (3) 250 milligrams of THC contained in a

18 cannabis-infused product.

19 (c) The possession limits found in subsections (a) and (b)

20 of this Section are to be considered cumulative.

21 (d) No person shall knowingly obtain, seek to obtain, or

22 possess an amount of cannabis from a dispensing organization or

23 craft grower that would cause him or her to exceed the

24 possession limit under this Section, including cannabis that is

25 cultivated by a person under this Act or obtained under the

26 Compassionate Use of Medical Cannabis Pilot Program Act.

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1 Section 10-15. Persons under 21 years of age.

2 (a) Nothing in this Act is intended to permit the transfer

3 of cannabis, with or without remuneration, to a person under 21

4 years of age, or to allow a person under 21 years of age to

5 purchase, possess, use, process, transport, grow, or consume

6 cannabis except where authorized by the Compassionate Use of

7 Medical Cannabis Pilot Program Act or by the Community College

8 Cannabis Vocational Pilot Program.

9 (b) Notwithstanding any other provisions of law

10 authorizing the possession of medical cannabis, nothing in this

11 Act authorizes a person who is under 21 years of age to possess

12 cannabis. A person under 21 years of age with cannabis in his

13 or her possession is guilty of a civil law violation as

14 outlined in paragraph (a) of Section 4 of the Cannabis Control

15 Act.

16 (c) If the person under the age of 21 was in a motor

17 vehicle at the time of the offense, the Secretary of State may

18 suspend or revoke the driving privileges of any person for a

19 violation of this Section under Section 6-206 of the Illinois

20 Vehicle Code and the rules adopted under it.

21 (d) It is unlawful for any parent or guardian to knowingly

22 permit his or her residence, any other private property under

23 his or her control, or any vehicle, conveyance, or watercraft

24 under his or her control to be used by an invitee of the

25 parent's child or the guardian's ward, if the invitee is under

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1 the age of 21, in a manner that constitutes a violation of this

2 Section. A parent or guardian is deemed to have knowingly

3 permitted his or her residence, any other private property

4 under his or her control, or any vehicle, conveyance, or

5 watercraft under his or her control to be used in violation of

6 this Section if he or she knowingly authorizes or permits

7 consumption of cannabis by underage invitees. Any person who

8 violates this subsection (d) is guilty of a Class A misdemeanor

9 and the person's sentence shall include, but shall not be

10 limited to, a fine of not less than $500. If a violation of

11 this subsection (d) directly or indirectly results in great

12 bodily harm or death to any person, the person violating this

13 subsection is guilty of a Class 4 felony. In this subsection

14 (d), where the residence or other property has an owner and a

15 tenant or lessee, the trier of fact may infer that the

16 residence or other property is occupied only by the tenant or

17 lessee.

18 Section 10-20. Identification; false identification;

19 penalty.

20 (a) To protect personal privacy, the Department of

21 Financial and Professional Regulation shall not require a

22 purchaser to provide a dispensing organization with personal

23 information other than government-issued identification to

24 determine the purchaser's age, and a dispensing organization

25 shall not obtain and record personal information about a

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1 purchaser without the purchaser's consent. A dispensing

2 organization shall use an electronic reader or electronic

3 scanning device to scan a purchaser's government-issued

4 identification, if applicable, to determine the purchaser's

5 age and the validity of the identification. Any identifying or

6 personal information of a purchaser obtained or received in

7 accordance with this Section shall not be retained, used,

8 shared or disclosed for any purpose except as authorized by

9 this Act.

10 (b) A person who is under 21 years of age may not present

11 or offer to a cannabis business establishment or the cannabis

12 business establishment's principal or employee any written or

13 oral evidence of age that is false, fraudulent, or not actually

14 the person's own, for the purpose of:

15 (1) purchasing, attempting to purchase, or otherwise

16 obtaining or attempting to obtain cannabis or any cannabis

17 product; or

18 (2) gaining access to a cannabis business

19 establishment.

20 (c) A violation of this Section is a Class A misdemeanor

21 consistent with Section 6-20 of the Liquor Control Act of 1934.

22 (d) The Secretary of State may suspend or revoke the

23 driving privileges of any person for a violation of this

24 Section under Section 6-206 of the Illinois Vehicle Code and

25 the rules adopted under it.

26 (e) No agent or employee of the licensee shall be

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1 disciplined or discharged for selling or furnishing cannabis or

2 cannabis products to a person under 21 years of age if the

3 agent or employee demanded and was shown, before furnishing

4 cannabis or cannabis products to a person under 21 years of

5 age, adequate written evidence of age and identity of the

6 person. This subsection (e) does not apply if the agent or

7 employee accepted the written evidence knowing it to be false

8 or fraudulent. Adequate written evidence of age and identity of

9 the person is a document issued by a federal, State, county, or

10 municipal government, or subdivision or agency thereof,

11 including, but not limited to, a motor vehicle operator's

12 license, a registration certificate issued under the Military

13 Selective Service Act, or an identification card issued to a

14 member of the Armed Forces. Proof that the licensee or his or

15 her employee or agent was shown and reasonably relied upon such

16 written evidence in any transaction forbidden by this Section

17 is an affirmative defense in any criminal prosecution therefor

18 or to any proceedings for the suspension or revocation of any

19 license based thereon.

20 Section 10-25. Immunities and presumptions related to the

21 use of cannabis by purchasers.

22 (a) A purchaser who is 21 years of age or older is not

23 subject to arrest, prosecution, denial of any right or

24 privilege, or other punishment including, but not limited to,

25 any civil penalty or disciplinary action taken by an

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1 occupational or professional licensing board, based solely on

2 the use of cannabis if (1) the purchaser possesses an amount of

3 cannabis that does not exceed the possession limit under

4 Section 10-10 and, if the purchaser is licensed, certified, or

5 registered to practice any trade or profession under any Act

6 and (2) the use of cannabis does not impair that person when he

7 or she is engaged in the practice of the profession for which

8 he or she is licensed, certified, or registered.

9 (b) A purchaser 21 years of age or older is not subject to

10 arrest, prosecution, denial of any right or privilege, or other

11 punishment, including, but not limited to, any civil penalty or

12 disciplinary action taken by an occupational or professional

13 licensing board, based solely for (i) selling cannabis

14 paraphernalia if employed and licensed as a dispensing agent by

15 a dispensing organization or (ii) being in the presence or

16 vicinity of the use of cannabis as allowed under this Act.

17 (c) Mere possession of, or application for, an agent

18 identification card or license does not constitute probable

19 cause or reasonable suspicion to believe that a crime has been

20 committed, nor shall it be used as the sole basis to support

21 the search of the person, property, or home of the person

22 possessing or applying for the agent identification card. The

23 possession of, or application for, an agent identification card

24 does not preclude the existence of probable cause if probable

25 cause exists based on other grounds.

26 (d) No person employed by the State of Illinois shall be

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1 subject to criminal or civil penalties for taking any action in

2 good faith in reliance on this Act when acting within the scope

3 of his or her employment. Representation and indemnification

4 shall be provided to State employees as set forth in Section 2

5 of the State Employee Indemnification Act.

6 (e) No law enforcement or correctional agency, nor any

7 person employed by a law enforcement or correctional agency,

8 shall be subject to criminal or civil liability, except for

9 willful and wanton misconduct, as a result of taking any action

10 within the scope of the official duties of the agency or person

11 to prohibit or prevent the possession or use of cannabis by a

12 person incarcerated at a correctional facility, jail, or

13 municipal lockup facility, on parole or mandatory supervised

14 release, or otherwise under the lawful jurisdiction of the

15 agency or person.

16 (f) For purposes of receiving medical care, including organ

17 transplants, a person's use of cannabis under this Act does not

18 constitute the use of an illicit substance or otherwise

19 disqualify a person from medical care.

20 Section 10-30. Discrimination prohibited.

21 (a) Neither the presence of cannabinoid components or

22 metabolites in a person's bodily fluids nor possession of

23 cannabis-related paraphernalia, nor conduct related to the use

24 of cannabis or the participation in cannabis-related

25 activities lawful under this Act by a custodial or noncustodial

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1 parent, grandparent, legal guardian, foster parent, or other

2 person charged with the well-being of a child, shall form the

3 sole or primary basis or supporting basis for any action or

4 proceeding by a child welfare agency or in a family or juvenile

5 court, any adverse finding, adverse evidence, or restriction of

6 any right or privilege in a proceeding related to adoption of a

7 child, acting as a foster parent of a child, or a person's

8 fitness to adopt a child or act as a foster parent of a child,

9 or serve as the basis of any adverse finding, adverse evidence,

10 or restriction of any right of privilege in a proceeding

11 related to guardianship, conservatorship, trusteeship, the

12 execution of a will, or the management of an estate, unless the

13 person's actions in relation to cannabis created an

14 unreasonable danger to the safety of the minor or otherwise

15 show the person to not be competent as established by clear and

16 convincing evidence. This subsection applies only to conduct

17 protected under this Act.

18 (b) No landlord may be penalized or denied any benefit

19 under State law for leasing to a person who uses cannabis under

20 this Act.

21 (c) Nothing in this Act may be construed to require any

22 person or establishment in lawful possession of property to

23 allow a guest, client, lessee, customer, or visitor to use

24 cannabis on or in that property.

25 Section 10-35. Limitations and penalties.

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1 (a) This Act does not permit any person to engage in, and

2 does not prevent the imposition of any civil, criminal, or

3 other penalties for engaging in, any of the following conduct:

4 (1) undertaking any task under the influence of

5 cannabis when doing so would constitute negligence,

6 professional malpractice, or professional misconduct;

7 (2) possessing cannabis:

8 (A) in a school bus, unless permitted for a

9 qualifying patient or caregiver pursuant to the

10 Compassionate Use of Medical Cannabis Pilot Program

11 Act;

12 (B) on the grounds of any preschool or primary or

13 secondary school, unless permitted for a qualifying

14 patient or caregiver pursuant to the Compassionate Use

15 of Medical Cannabis Pilot Program Act;

16 (C) in any correctional facility;

17 (D) in a vehicle not open to the public unless the

18 cannabis is in a reasonably secured, sealed container

19 and reasonably inaccessible while the vehicle is

20 moving; or

21 (E) in a private residence that is used at any time

22 to provide licensed child care or other similar social

23 service care on the premises;

24 (3) using cannabis:

25 (A) in a school bus, unless permitted for a

26 qualifying patient or caregiver pursuant to the

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1 Compassionate Use of Medical Cannabis Pilot Program

2 Act;

3 (B) on the grounds of any preschool or primary or

4 secondary school, unless permitted for a qualifying

5 patient or caregiver pursuant to the Compassionate Use

6 of Medical Cannabis Pilot Program Act;

7 (C) in any correctional facility;

8 (D) in any motor vehicle;

9 (E) in a private residence that is used at any time

10 to provide licensed child care or other similar social

11 service care on the premises;

12 (F) in any public place; or

13 (G) knowingly in close physical proximity to

14 anyone under 21 years of age who is not a registered

15 medical cannabis patient under the Compassionate Use

16 of Medical Cannabis Pilot Program Act;

17 (4) smoking cannabis in any place where smoking is

18 prohibited under the Smoke Free Illinois Act;

19 (5) operating, navigating, or being in actual physical

20 control of any motor vehicle, aircraft, or motorboat while

21 using or under the influence of cannabis in violation of

22 Section 11-501 or 11-502.1 of the Illinois Vehicle Code;

23 (6) facilitating the use of cannabis by any person who

24 is not allowed to use cannabis under this Act or the

25 Compassionate Use of Medical Cannabis Pilot Program Act;

26 (7) transferring cannabis to any person contrary to

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1 this Act or the Compassionate Use of Medical Cannabis Pilot

2 Program Act;

3 (8) the use of cannabis by a law enforcement officer,

4 corrections officer, probation officer, or firefighter

5 while on duty; or

6 (9) the use of cannabis by a person who has a school

7 bus permit or a Commercial Driver's License while on duty.

8 As used in this Section, "public place" means any place

9 where a person could reasonably be expected to be observed by

10 others. "Public place" includes all parts of buildings owned in

11 whole or in part, or leased, by the State or a unit of local

12 government. "Public place" does not include a private residence

13 unless the private residence is used to provide licensed child

14 care, foster care, or other similar social service care on the

15 premises.

16 (b) Nothing in this Act shall be construed to prevent the

17 arrest or prosecution of a person for reckless driving or

18 driving under the influence of cannabis if probable cause

19 exists.

20 (c) Nothing in this Act shall prevent a private business

21 from restricting or prohibiting the use of cannabis on its

22 property, including areas where motor vehicles are parked.

23 (d) Nothing in this Act shall require an individual or

24 business entity to violate the provisions of federal law,

25 including colleges or universities that must abide by the

26 Drug-Free Schools and Communities Act Amendments of 1989, that

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1 require campuses to be drug free.

2 Section 10-40. Restore, Reinvest, and Renew Program.

3 (a) The General Assembly finds that in order to address the

4 disparities described below, aggressive approaches and

5 targeted resources to support local design and control of

6 community-based responses to these outcomes are required. To

7 carry out this intent, the Restore, Reinvest, and Renew (R3)

8 Program is created for the following purposes:

9 (1) to directly address the impact of economic

10 disinvestment, violence, and the historical overuse of

11 criminal justice responses to community and individual

12 needs by providing resources to support local design and

13 control of community-based responses to these impacts;

14 (2) to substantially reduce both the total amount of

15 gun violence and concentrated poverty in this State;

16 (3) to protect communities from gun violence through

17 targeted investments and intervention programs, including

18 economic growth and improving family violence prevention,

19 community trauma treatment rates, gun injury victim

20 services, and public health prevention activities;

21 (4) to promote employment infrastructure and capacity

22 building related to the social determinants of health in

23 the eligible community areas.

24 (b) In this Section, "Authority" means the Illinois

25 Criminal Justice Information Authority in coordination with

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1 the Justice, Equity, and Opportunity Initiative of the

2 Lieutenant Governor's Office.

3 (c) Eligibility of R3 Areas. Within 180 days after the

4 effective date of this Act, the Authority shall identify as

5 eligible, areas in this State by way of historically recognized

6 geographic boundaries, to be designated by the Restore,

7 Reinvest, and Renew Program Board as R3 Areas and therefore

8 eligible to apply for R3 funding. Local groups within R3 Areas

9 will be eligible to apply for State funding through the

10 Restore, Reinvest, and Renew Program Board. Qualifications for

11 designation as an R3 Area are as follows:

12 (1) Based on an analysis of data, communities in this

13 State that are high need, underserved, disproportionately

14 impacted by historical economic disinvestment, and ravaged

15 by violence as indicated by the highest rates of gun

16 injury, unemployment, child poverty rates, and commitments

17 to and returns from the Illinois Department of Corrections.

18 (2) The Authority shall send to the Legislative Audit

19 Commission and make publicly available its analysis and

20 identification of eligible R3 Areas and shall recalculate

21 he eligibility data every 4 years. On an annual basis, the

22 Authority shall analyze data and indicate if data covering

23 any R3 Area or portion of an Area has, for 4 consecutive

24 years, substantially deviated from the average of

25 statewide data on which the original calculation was made

26 to determine the Areas, including disinvestment, violence,

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1 gun injury, unemployment, child poverty rates, or

2 commitments to or returns from the Illinois Department of

3 Corrections.

4 (d) The Restore, Reinvest, and Renew Program Board shall

5 encourage collaborative partnerships within each R3 Area to

6 minimize multiple partnerships per Area.

7 (e) The Restore, Reinvest, and Renew Program Board is

8 created and shall reflect the diversity of the State of

9 Illinois, including geographic, racial, and ethnic diversity.

10 Using the data provided by the Authority, the Restore,

11 Reinvest, and Renew Program Board shall be responsible for

12 designating the R3 Area boundaries and for the selection and

13 oversight of R3 Area grantees. The Restore, Reinvest, and Renew

14 Program Board ex officio members shall, within 4 months after

15 the effective date of this Act, convene the Board to appoint a

16 full Restore, Reinvest, and Renew Program Board and oversee,

17 provide guidance to, and develop an administrative structure

18 for the R3 Program.

19 (1) The ex officio members are:

20 (A) The Lieutenant Governor, or his or her

21 designee, who shall serve as chair.

22 (B) The Attorney General, or his or her

23 designee.

24 (C) The Director of Commerce and Economic

25 Opportunity, or his or her designee.

26 (D) The Director of Public Health, or his or

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1 her designee.

2 (E) The Director of Corrections, or his or her

3 designee.

4 (F) The Executive Director of the Illinois

5 Criminal Justice Information Authority, or his or

6 her designee.

7 (G) The Director of Employment Security, or

8 his or her designee.

9 (H) The Secretary of Human Services, or his or

10 her designee.

11 (I) A member of the Senate, designated by the

12 President of the Senate.

13 (J) A member of the House of Representatives,

14 designated by the Speaker of the House of

15 Representatives.

16 (K) A member of the Senate, designated by the

17 Minority Leader of the Senate.

18 (L) A member of the House of Representatives,

19 designated by the Minority Leader of the House of

20 Representatives.

21 (2) Within 90 days after the R3 Areas have been

22 designated by the Restore, Reinvest, and Renew Program

23 Board, the following members shall be appointed to the

24 Board by the R3 board chair:

25 (A) public officials of municipal geographic

26 jurisdictions in the State that include an R3 Area, or

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1 their designees;

2 (B) 4 community-based providers or community

3 development organization representatives who provide

4 services to treat violence and address the social

5 determinants of health, or promote community

6 investment, including, but not limited to, services

7 such as job placement and training, educational

8 services, workforce development programming, and

9 wealth building. The community-based organization

10 representatives shall work primarily in jurisdictions

11 that include an R3 Area and no more than 2

12 representatives shall work primarily in Cook County.

13 At least one of the community-based providers shall

14 have expertise in providing services to an immigrant

15 population;

16 (C) Two experts in the field of violence reduction;

17 (D) One male who has previously been incarcerated

18 and is over the age of 24 at time of appointment;

19 (E) One female who has previously been

20 incarcerated and is over the age of 24 at time of

21 appointment;

22 (F) Two individuals who have previously been

23 incarcerated and are between the ages of 17 and 24 at

24 time of appointment.

25 As used in this paragraph (2), "an individual who has

26 been previously incarcerated" means a person who has been

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1 convicted of or pled guilty to one or more felonies, who

2 was sentenced to a term of imprisonment, and who has

3 completed his or her sentence. Board members shall serve

4 without compensation and may be reimbursed for reasonable

5 expenses incurred in the performance of their duties from

6 funds appropriated for that purpose. Once all its members

7 have been appointed as outlined in items (A) through (F) of

8 this paragraph (2), the Board may exercise any power,

9 perform any function, take any action, or do anything in

10 furtherance of its purposes and goals upon the appointment

11 of a quorum of its members. The Board terms of the non-ex

12 officio and General Assembly Board members shall end 4

13 years from the date of appointment.

14 (f) Within 12 months after the effective date of this Act,

15 the Board shall:

16 (1) develop a process to solicit applications from

17 eligible R3 Areas;

18 (2) develop a standard template for both planning and

19 implementation activities to be submitted by R3 Areas to

20 the State;

21 (3) identify resources sufficient to support the full

22 administration and evaluation of the R3 Program, including

23 building and sustaining core program capacity at the

24 community and State levels;

25 (4) review R3 Area grant applications and proposed

26 agreements and approve the distribution of resources;

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1 (5) develop a performance measurement system that

2 focuses on positive outcomes;

3 (6) develop a process to support ongoing monitoring and

4 evaluation of R3 programs; and

5 (7) deliver an annual report to the General Assembly

6 and to the Governor to be posted on the Governor's Office

7 and General Assembly websites and provide to the public an

8 annual report on its progress.

9 (g) R3 Area grants.

10 (1) Grant funds shall be awarded by the Illinois

11 Criminal Justice Information Authority, in coordination

12 with the R3 board, based on the likelihood that the plan

13 will achieve the outcomes outlined in subsection (a) and

14 consistent with the requirements of the Grant

15 Accountability and Transparency Act. The R3 Program shall

16 also facilitate the provision of training and technical

17 assistance for capacity building within and among R3 Areas.

18 (2) R3 Program Board grants shall be used to address

19 economic development, violence prevention services,

20 re-entry services, youth development, and civil legal aid.

21 (3) The Restore, Reinvest, and Renew Program Board and

22 the R3 Area grantees shall, within a period of no more than

23 120 days from the completion of planning activities

24 described in this Section, finalize an agreement on the

25 plan for implementation. Implementation activities may:

26 (A) have a basis in evidence or best practice

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1 research or have evaluations demonstrating the

2 capacity to address the purpose of the program in

3 subsection (a);

4 (B) collect data from the inception of planning

5 activities through implementation, with data

6 collection technical assistance when needed, including

7 cost data and data related to identified meaningful

8 short-term, mid-term, and long-term goals and metrics;

9 (C) report data to the Restore, Reinvest, and Renew

10 Program Board biannually; and

11 (D) report information as requested by the R3

12 Program Board.

13 Section 10-50. Employment; employer liability.

14 (a) Nothing in this Act shall prohibit an employer from

15 adopting reasonable zero tolerance or drug free workplace

16 policies, or employment policies concerning drug testing,

17 smoking, consumption, storage, or use of cannabis in the

18 workplace or while on call provided that the policy is applied

19 in a nondiscriminatory manner.

20 (b) Nothing in this Act shall require an employer to permit

21 an employee to be under the influence of or use cannabis in the

22 employer's workplace or while performing the employee's job

23 duties or while on call.

24 (c) Nothing in this Act shall limit or prevent an employer

25 from disciplining an employee or terminating employment of an

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1 employee for violating an employer's employment policies or

2 workplace drug policy.

3 (d) An employer may consider an employee to be impaired or

4 under the influence of cannabis if the employer has a good

5 faith belief that an employee manifests specific, articulable

6 symptoms while working that decrease or lessen the employee's

7 performance of the duties or tasks of the employee's job

8 position, including symptoms of the employee's speech,

9 physical dexterity, agility, coordination, demeanor,

10 irrational or unusual behavior, or negligence or carelessness

11 in operating equipment or machinery; disregard for the safety

12 of the employee or others, or involvement in any accident that

13 results in serious damage to equipment or property; disruption

14 of a production or manufacturing process; or carelessness that

15 results in any injury to the employee or others. If an employer

16 elects to discipline an employee on the basis that the employee

17 is under the influence or impaired by cannabis, the employer

18 must afford the employee a reasonable opportunity to contest

19 the basis of the determination.

20 (e) Nothing in this Act shall be construed to create or

21 imply a cause of action for any person against an employer for:

22 (1) actions, including but not limited to subjecting an

23 employee or applicant to reasonable drug and alcohol

24 testing under the employer's workplace drug policy,

25 including an employee's refusal to be tested or to

26 cooperate in testing procedures or disciplining or

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1 termination of employment, based on the employer's good

2 faith belief that an employee used or possessed cannabis in

3 the employer's workplace or while performing the

4 employee's job duties or while on call in violation of the

5 employer's employment policies;

6 (2) actions, including discipline or termination of

7 employment, based on the employer's good faith belief that

8 an employee was impaired as a result of the use of

9 cannabis, or under the influence of cannabis, while at the

10 employer's workplace or while performing the employee's

11 job duties or while on call in violation of the employer's

12 workplace drug policy; or

13 (3) injury, loss, or liability to a third party if the

14 employer neither knew nor had reason to know that the

15 employee was impaired.

16 (f) Nothing in this Act shall be construed to enhance or

17 diminish protections afforded by any other law, including but

18 not limited to the Compassionate Use of Medical Cannabis Pilot

19 Program Act or the Opioid Alternative Pilot Program.

20 (g) Nothing in this Act shall be construed to interfere

21 with any federal, State, or local restrictions on employment

22 including, but not limited to, the United States Department of

23 Transportation regulation 49 CFR 40.151(e) or impact an

24 employer's ability to comply with federal or State law or cause

25 it to lose a federal or State contract or funding.

26 (h) As used in this Section, "workplace" means the

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1 employer's premises, including any building, real property,

2 and parking area under the control of the employer or area used

3 by an employee while in performance of the employee's job

4 duties, and vehicles, whether leased, rented, or owned.

5 "Workplace" may be further defined by the employer's written

6 employment policy, provided that the policy is consistent with

7 this Section.

8 (i) For purposes of this Section, an employee is deemed "on

9 call" when such employee is scheduled with at least 24 hours'

10 notice by his or her employer to be on standby or otherwise

11 responsible for performing tasks related to his or her

12 employment either at the employer's premises or other

13 previously designated location by his or her employer or

14 supervisor to perform a work-related task.

15 ARTICLE 15.

16 LICENSE AND REGULATION OF DISPENSING ORGANIZATIONS

17 Section 15-5. Authority.

18 (a) In this Article, "Department" means the Department of

19 Financial and Professional Regulation.

20 (b) It is the duty of the Department to administer and

21 enforce the provisions of this Act relating to the licensure

22 and oversight of dispensing organizations and dispensing

23 organization agents unless otherwise provided in this Act.

24 (c) No person shall operate a dispensing organization for

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1 the purpose of serving purchasers of cannabis or cannabis

2 products without a license issued under this Article by the

3 Department. No person shall be an officer, director, manager,

4 or employee of a dispensing organization without having been

5 issued a dispensing organization agent card by the Department.

6 (d) Subject to the provisions of this Act, the Department

7 may exercise the following powers and duties:

8 (1) Prescribe forms to be issued for the administration

9 and enforcement of this Article.

10 (2) Examine, inspect, and investigate the premises,

11 operations, and records of dispensing organization

12 applicants and licensees.

13 (3) Conduct investigations of possible violations of

14 this Act pertaining to dispensing organizations and

15 dispensing organization agents.

16 (4) Conduct hearings on proceedings to refuse to issue

17 or renew licenses or to revoke, suspend, place on

18 probation, reprimand, or otherwise discipline a license

19 under this Article or take other nondisciplinary action.

20 (5) Adopt rules required for the administration of this

21 Article.

22 Section 15-10. Medical cannabis dispensing organization

23 exemption. This Article does not apply to medical cannabis

24 dispensing organizations registered under the Compassionate

25 Use of Medical Cannabis Pilot Program Act, except where

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1 otherwise specified.

2 Section 15-15. Early Approval Adult Use Dispensing

3 Organization License.

4 (a) Any medical cannabis dispensing organization holding a

5 valid registration under the Compassionate Use of Medical

6 Cannabis Pilot Program Act as of the effective date of this Act

7 may, within 60 days of the effective date of this Act, apply to

8 the Department for an Early Approval Adult Use Dispensing

9 Organization License to serve purchasers at any medical

10 cannabis dispensing location in operation on the effective date

11 of this Act, pursuant to this Section.

12 (b) A medical cannabis dispensing organization seeking

13 issuance of an Early Approval Adult Use Dispensing Organization

14 License to serve purchasers at any medical cannabis dispensing

15 location in operation as of the effective date of this Act

16 shall submit an application on forms provided by the

17 Department. The application must be submitted by the same

18 person or entity that holds the medical cannabis dispensing

19 organization registration and include the following:

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

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1 Medical Cannabis Pilot Program Act except as provided in

2 this Act;

3 (4) The legal name of the dispensing organization;

4 (5) The physical address of the dispensing

5 organization;

6 (6) The name, address, social security number, and date

7 of birth of each principal officer and board member of the

8 dispensing organization, each of whom must be at least 21

9 years of age;

10 (7) A nonrefundable Cannabis Business Development Fee

11 equal to 3% of the dispensing organization's total sales

12 between June 1, 2018 to June 1, 2019, or $100,000,

13 whichever is less, to be deposited into the Cannabis

14 Business Development Fund; and

15 (8) Identification of one of the following Social

16 Equity Inclusion Plans to be completed by March 31, 2021:

17 (A) Make a contribution of 3% of total sales from

18 June 1, 2018 to June 1, 2019, or $100,000, whichever is

19 less, to the Cannabis Business Development Fund. This

20 is in addition to the fee required by item (7) of this

21 subsection (b);

22 (B) Make a grant of 3% of total sales from June 1,

23 2018 to June 1, 2019, or $100,000, whichever is less,

24 to a cannabis industry training or education program at

25 an Illinois community college as defined in the Public

26 Community College Act;

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1 (C) Make a donation of $100,000 or more to a

2 program that provides job training services to persons

3 recently incarcerated or that operates in a

4 Disproportionately Impacted Area;

5 (D) Participate as a host in a cannabis business

6 establishment incubator program approved by the

7 Department of Commerce and Economic Opportunity, and

8 in which an Early Approval Adult Use Dispensing

9 Organization License holder agrees to provide a loan of

10 at least $100,000 and mentorship to incubate a licensee

11 that qualifies as a Social Equity Applicant for at

12 least a year. As used in this Section, "incubate" means

13 providing direct financial assistance and training

14 necessary to engage in licensed cannabis industry

15 activity similar to that of the host licensee. The

16 Early Approval Adult Use Dispensing Organization

17 License holder or the same entity holding any other

18 licenses issued pursuant to this Act shall not take an

19 ownership stake of greater than 10% in any business

20 receiving incubation services to comply with this

21 subsection. If an Early Approval Adult Use Dispensing

22 Organization License holder fails to find a business to

23 incubate to comply with this subsection before its

24 Early Approval Adult Use Dispensing Organization

25 License expires, it may opt to meet the requirement of

26 this subsection by completing another item from this

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1 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 (c) The license fee required by paragraph (1) of subsection

12 (b) of this Section shall be in addition to any license fee

13 required for the renewal of a registered medical cannabis

14 dispensing organization license.

15 (d) Applicants must submit all required information,

16 including the requirements in subsection (b) of this Section,

17 to the Department. Failure by an applicant to submit all

18 required information may result in the application being

19 disqualified.

20 (e) If the Department receives an application that fails to

21 provide the required elements contained in subsection (b), the

22 Department shall issue a deficiency notice to the applicant.

23 The applicant shall have 10 calendar days from the date of the

24 deficiency notice to submit complete information. Applications

25 that are still incomplete after this opportunity to cure may be

26 disqualified.

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1 (f) If an applicant meets all the requirements of

2 subsection (b) of this Section, the Department shall issue the

3 Early Approval Adult Use Dispensing Organization License

4 within 14 days of receiving a completed application unless:

5 (1) The licensee or a principal officer is delinquent

6 in filing any required tax returns or paying any amounts

7 owed to the State of Illinois;

8 (2) The Secretary of Financial and Professional

9 Regulation determines there is reason, based on documented

10 compliance violations, the licensee is not entitled to an

11 Early Approval Adult Use Dispensing Organization License;

12 or

13 (3) Any principal officer fails to register and remain

14 in compliance with this Act or the Compassionate Use of

15 Medical Cannabis Pilot Program Act.

16 (g) A registered medical cannabis dispensing organization

17 that obtains an Early Approval Adult Use Dispensing

18 Organization License may begin selling cannabis,

19 cannabis-infused products, paraphernalia, and related items to

20 purchasers under the rules of this Act no sooner than January

21 1, 2020.

22 (h) A dispensing organization holding a medical cannabis

23 dispensing organization license issued under the Compassionate

24 Use of Medical Cannabis Pilot Program Act must maintain an

25 adequate supply of cannabis and cannabis-infused products for

26 purchase by qualifying patients, caregivers, provisional

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1 patients, and Opioid Alternative Pilot Program participants.

2 For the purposes of this subsection, "adequate supply" means a

3 monthly inventory level that is comparable in type and quantity

4 to those medical cannabis products provided to patients and

5 caregivers on an average monthly basis for the 6 months before

6 the effective date of this Act.

7 (i) If there is a shortage of cannabis or cannabis-infused

8 products, a dispensing organization holding both a dispensing

9 organization license under the Compassionate Use of Medical

10 Cannabis Pilot Program Act and this Act shall prioritize

11 serving qualifying patients, caregivers, provisional patients,

12 and Opioid Alternative Pilot Program participants before

13 serving purchasers.

14 (j) Notwithstanding any law or rule to the contrary, a

15 person that holds a medical cannabis dispensing organization

16 license issued under the Compassionate Use of Medical Cannabis

17 Pilot Program Act and an Early Approval Adult Use Dispensing

18 Organization License may permit purchasers into a limited

19 access area as that term is defined in administrative rules

20 made under the authority in the Compassionate Use of Medical

21 Cannabis Pilot Program Act.

22 (k) An Early Approval Adult Use Dispensing Organization

23 License is valid until March 31, 2021. A dispensing

24 organization that obtains an Early Approval Adult Use

25 Dispensing Organization License shall receive written or

26 electronic notice 90 days before the expiration of the license

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1 that the license will expire, and inform the license holder

2 that it may renew its Early Approval Adult Use Dispensing

3 Organization License. The Department shall renew the Early

4 Approval Adult Use Dispensing Organization License within 60

5 days of the renewal application being deemed complete if:

6 (1) the dispensing organization submits an application

7 and the required nonrefundable renewal fee of $30,000, to

8 be deposited into the Cannabis Regulation Fund;

9 (2) the Department has not suspended or revoked the

10 Early Approval Adult Use Dispensing Organization License

11 or a medical cannabis dispensing organization license on

12 the same premises for violations of this Act, the

13 Compassionate Use of Medical Cannabis Pilot Program Act, or

14 rules adopted pursuant to those Acts; and

15 (3) the dispensing organization has completed a Social

16 Equity Inclusion Plan as required by paragraph (8) of

17 subsection (b) of this Section.

18 (l) The Early Approval Adult Use Dispensing Organization

19 License renewed pursuant to subsection (k) of this Section

20 shall expire March 31, 2022. The Early Approval Adult Use

21 Dispensing Organization Licensee shall receive written or

22 electronic notice 90 days before the expiration of the license

23 that the license will expire, and inform the license holder

24 that it may apply for an Adult Use Dispensing Organization

25 License. The Department shall grant an Adult Use Dispensing

26 Organization License within 60 days of an application being

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1 deemed complete if the applicant has met all of the criteria in

2 Section 15-36.

3 (m) If a dispensary fails to submit an application for an

4 Adult Use Dispensing Organization License before the

5 expiration of the Early Approval Adult Use Dispensing

6 Organization License pursuant to subsection (k) of this

7 Section, the dispensing organization shall cease serving

8 purchasers and cease all operations until it receives an Adult

9 Use Dispensing Organization License.

10 (n) A dispensing organization agent who holds a valid

11 dispensing organization agent identification card issued under

12 the Compassionate Use of Medical Cannabis Pilot Program Act and

13 is an officer, director, manager, or employee of the dispensing

14 organization licensed under this Section may engage in all

15 activities authorized by this Article to be performed by a

16 dispensing organization agent.

17 (o) All fees collected pursuant to this Section shall be

18 deposited into the Cannabis Regulation Fund, unless otherwise

19 specified.

20 Section 15-20. Early Approval Adult Use Dispensing

21 Organization License; secondary site.

22 (a) If the Department suspends or revokes the Early

23 Approval Adult Use Dispensing Organization License of a

24 dispensing organization that also holds a medical cannabis

25 dispensing organization license issued under the Compassionate

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1 Use of Medical Cannabis Pilot Program Act, the Department may

2 consider the suspension or revocation as grounds to take

3 disciplinary action against the medical cannabis dispensing

4 organization license.

5 (a-5) If, within 360 days of the effective date of this

6 Act, a dispensing organization is unable to find a location

7 within the BLS Regions prescribed in subsection (a) of this

8 Section in which to operate an Early Approval Adult Use

9 Dispensing Organization at a secondary site because no

10 jurisdiction within the prescribed area allows the operation of

11 an Adult Use Cannabis Dispensing Organization, the Department

12 of Financial and Professional Regulation may waive the

13 geographic restrictions of subsection (a) of this Section and

14 specify another BLS Region into which the dispensary may be

15 placed.

16 (b) Any medical cannabis dispensing organization holding a

17 valid registration under the Compassionate Use of Medical

18 Cannabis Pilot Program Act as of the effective date of this Act

19 may, within 60 days of the effective date of this Act, apply to

20 the Department for an Early Approval Adult Use Dispensing

21 Organization License to operate a dispensing organization to

22 serve purchasers at a secondary site not within 1,500 feet of

23 another medical cannabis dispensing organization or adult use

24 dispensing organization. The Early Approval Adult Use

25 Dispensing Organization secondary site shall be within any BLS

26 region that shares territory with the dispensing organization

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1 district to which the medical cannabis dispensing organization

2 is assigned under the administrative rules for dispensing

3 organizations under the Compassionate Use of Medical Cannabis

4 Pilot Program Act.

5 (c) A medical cannabis dispensing organization seeking

6 issuance of an Early Approval Adult Use Dispensing Organization

7 License at a secondary site to serve purchasers at a secondary

8 site as prescribed in subsection (b) of this Section shall

9 submit an application on forms provided by the Department. The

10 application must meet or include the following qualifications:

11 (1) a payment of a nonrefundable application fee of

12 $30,000;

13 (2) proof of registration as a medical cannabis

14 dispensing organization that is in good standing;

15 (3) submission of the application by the same person or

16 entity that holds the medical cannabis dispensing

17 organization registration;

18 (4) the legal name of the medical cannabis dispensing

19 organization;

20 (5) the physical address of the medical cannabis

21 dispensing organization and the proposed physical address

22 of the secondary site;

23 (6) a copy of the current local zoning ordinance

24 Sections relevant to dispensary operations and

25 documentation of the approval, the conditional approval or

26 the status of a request for zoning approval from the local

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1 zoning office that the proposed dispensary location is in

2 compliance with the local zoning rules;

3 (7) a plot plan of the dispensary drawn to scale. The

4 applicant shall submit general specifications of the

5 building exterior and interior layout;

6 (8) a statement that the dispensing organization

7 agrees to respond to the Department's supplemental

8 requests for information;

9 (9) for the building or land to be used as the proposed

10 dispensary:

11 (A) if the property is not owned by the applicant,

12 a written statement from the property owner and

13 landlord, if any, certifying consent that the

14 applicant may operate a dispensary on the premises; or

15 (B) if the property is owned by the applicant,

16 confirmation of ownership;

17 (10) a copy of the proposed operating bylaws;

18 (11) a copy of the proposed business plan that complies

19 with the requirements in this Act, including, at a minimum,

20 the following:

21 (A) a description of services to be offered; and

22 (B) a description of the process of dispensing

23 cannabis;

24 (12) a copy of the proposed security plan that complies

25 with the requirements in this Article, including:

26 (A) a description of the delivery process by which

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1 cannabis will be received from a transporting

2 organization, including receipt of manifests and

3 protocols that will be used to avoid diversion, theft,

4 or loss at the dispensary acceptance point; and

5 (B) the process or controls that will be

6 implemented to monitor the dispensary, secure the

7 premises, agents, patients, and currency, and prevent

8 the diversion, theft, or loss of cannabis; and

9 (C) the process to ensure that access to the

10 restricted access areas is restricted to, registered

11 agents, service professionals, transporting

12 organization agents, Department inspectors, and

13 security personnel;

14 (13) a proposed inventory control plan that complies

15 with this Section;

16 (14) the name, address, social security number, and

17 date of birth of each principal officer and board member of

18 the dispensing organization; each of those individuals

19 shall be at least 21 years of age;

20 (15) a nonrefundable Cannabis Business Development Fee

21 equal to $200,000, to be deposited into the Cannabis

22 Business Development Fund; and

23 (16) a commitment to completing one of the following

24 Social Equity Inclusion Plans in subsection (d).

25 (d) Before receiving an Early Approval Adult Use Dispensing

26 Organization License at a secondary site, a dispensing

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1 organization shall indicate the Social Equity Inclusion Plan

2 that the applicant plans to achieve before the expiration of

3 the Early Approval Adult Use Dispensing Organization License

4 from the list below:

5 (1) make a contribution of 3% of total sales from June

6 1, 2018 to June 1, 2019, or $100,000, whichever is less, to

7 the Cannabis Business Development Fund. This is in addition

8 to the fee required by paragraph (16) of subsection (c) of

9 this Section;

10 (2) make a grant of 3% of total sales from June 1, 2018

11 to June 1, 2019, or $100,000, whichever is less, to a

12 cannabis industry training or education program at an

13 Illinois community college as defined in the Public

14 Community College Act;

15 (3) make a donation of $100,000 or more to a program

16 that provides job training services to persons recently

17 incarcerated or that operates in a Disproportionately

18 Impacted Area;

19 (4) participate as a host in a cannabis business

20 establishment incubator program approved by the Department

21 of Commerce and Economic Opportunity, and in which an Early

22 Approval Adult Use Dispensing Organization License at a

23 secondary site holder agrees to provide a loan of at least

24 $100,000 and mentorship to incubate a licensee that

25 qualifies as a Social Equity Applicant for at least a year.

26 In this paragraph (4), "incubate" means providing direct

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1 financial assistance and training necessary to engage in

2 licensed cannabis industry activity similar to that of the

3 host licensee. The Early Approval Adult Use Dispensing

4 Organization License holder or the same entity holding any

5 other licenses issued under this Act shall not take an

6 ownership stake of greater than 10% in any business

7 receiving incubation services to comply with this

8 subsection. If an Early Approval Adult Use Dispensing

9 Organization License at a secondary site holder fails to

10 find a business to incubate in order to comply with this

11 subsection before its Early Approval Adult Use Dispensing

12 Organization License at a secondary site expires, it may

13 opt to meet the requirement of this subsection by

14 completing another item from this subsection before the

15 expiration of its Early Approval Adult Use Dispensing

16 Organization License at a secondary site to avoid a

17 penalty; or

18 (5) participate in a sponsorship program for at least 2

19 years approved by the Department of Commerce and Economic

20 Opportunity in which an Early Approval Adult Use Dispensing

21 Organization License at a secondary site holder agrees to

22 provide an interest-free loan of at least $200,000 to a

23 Social Equity Applicant. The sponsor shall not take an

24 ownership stake of greater than 10% in any business

25 receiving sponsorship services to comply with this

26 subsection.

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1 (e) The license fee required by paragraph (1) of subsection

2 (c) of this Section is in addition to any license fee required

3 for the renewal of a registered medical cannabis dispensing

4 organization license.

5 (f) Applicants must submit all required information,

6 including the requirements in subsection (c) of this Section,

7 to the Department. Failure by an applicant to submit all

8 required information may result in the application being

9 disqualified.

10 (g) If the Department receives an application that fails to

11 provide the required elements contained in subsection (c), the

12 Department shall issue a deficiency notice to the applicant.

13 The applicant shall have 10 calendar days from the date of the

14 deficiency notice to submit complete information. Applications

15 that are still incomplete after this opportunity to cure may be

16 disqualified.

17 (h) Once all required information and documents have been

18 submitted, the Department will review the application. The

19 Department may request revisions and retains final approval

20 over dispensary features. Once the application is complete and

21 meets the Department's approval, the Department shall

22 conditionally approve the license. Final approval is

23 contingent on the build-out and Department inspection.

24 (i) Upon submission of the Early Approval Adult Use

25 Dispensing Organization at a secondary site application, the

26 applicant shall request an inspection and the Department may

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1 inspect the Early Approval Adult Use Dispensing Organization's

2 secondary site to confirm compliance with the application and

3 this Act.

4 (j) The Department shall only issue an Early Approval Adult

5 Use Dispensing Organization License at a secondary site after

6 the completion of a successful inspection.

7 (k) If an applicant passes the inspection under this

8 Section, the Department shall issue the Early Approval Adult

9 Use Dispensing Organization License at a secondary site within

10 10 business days unless:

11 (1) The licensee; principal officer, board member, or

12 person having a financial or voting interest of 5% or

13 greater in the licensee; or agent is delinquent in filing

14 any required tax returns or paying any amounts owed to the

15 State of Illinois; or

16 (2) The Secretary of Financial and Professional

17 Regulation determines there is reason, based on documented

18 compliance violations, the licensee is not entitled to an

19 Early Approval Adult Use Dispensing Organization License

20 at its secondary site.

21 (l) Once the Department has issued a license, the

22 dispensing organization shall notify the Department of the

23 proposed opening date.

24 (m) A registered medical cannabis dispensing organization

25 that obtains an Early Approval Adult Use Dispensing

26 Organization License at a secondary site may begin selling

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1 cannabis, cannabis-infused products, paraphernalia, and

2 related items to purchasers under the rules of this Act no

3 sooner than January 1, 2020.

4 (n) If there is a shortage of cannabis or cannabis-infused

5 products, a dispensing organization holding both a dispensing

6 organization license under the Compassionate Use of Medical

7 Cannabis Pilot Program Act and this Article shall prioritize

8 serving qualifying patients and caregivers before serving

9 purchasers.

10 (o) An Early Approval Adult Use Dispensing Organization

11 License at a secondary site is valid until March 31, 2021. A

12 dispensing organization that obtains an Early Approval Adult

13 Use Dispensing Organization License at a secondary site shall

14 receive written or electronic notice 90 days before the

15 expiration of the license that the license will expire, and

16 inform the license holder that it may renew its Early Approval

17 Adult Use Dispensing Organization License at a secondary site.

18 The Department shall renew an Early Approval Adult Use

19 Dispensing Organization License at a secondary site within 60

20 days of submission of the renewal application being deemed

21 complete if:

22 (1) the dispensing organization submits an application

23 and the required nonrefundable renewal fee of $30,000, to

24 be deposited into the Cannabis Regulation Fund;

25 (2) the Department has not suspended or revoked the

26 Early Approval Adult Use Dispensing Organization License

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1 or a medical cannabis dispensing organization license held

2 by the same person or entity for violating this Act or

3 rules adopted under this Act or the Compassionate Use of

4 Medical Cannabis Pilot Program Act or rules adopted under

5 that Act; and

6 (3) the dispensing organization has completed a Social

7 Equity Inclusion Plan as required by paragraph (16) of

8 subsection (c) of this Section.

9 (p) The Early Approval Adult Use Dispensing Organization

10 Licensee at a secondary site renewed pursuant to subsection (o)

11 shall receive written or electronic notice 90 days before the

12 expiration of the license that the license will expire, and

13 inform the license holder that it may apply for an Adult Use

14 Dispensing Organization License. The Department shall grant an

15 Adult Use Dispensing Organization License within 60 days of an

16 application being deemed complete if the applicant has meet all

17 of the criteria in Section 15-36.

18 (q) If a dispensing organization fails to submit an

19 application for renewal of an Early Approval Adult Use

20 Dispensing Organization License or for an Adult Use Dispensing

21 Organization License before the expiration dates provided in

22 subsections (o) and (p) of this Section, the dispensing

23 organization shall cease serving purchasers until it receives a

24 renewal or an Adult Use Dispensing Organization License.

25 (r) A dispensing organization agent who holds a valid

26 dispensing organization agent identification card issued under

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1 the Compassionate Use of Medical Cannabis Pilot Program Act and

2 is an officer, director, manager, or employee of the dispensing

3 organization licensed under this Section may engage in all

4 activities authorized by this Article to be performed by a

5 dispensing organization agent.

6 (s) If the Department suspends or revokes the Early

7 Approval Adult Use Dispensing Organization License of a

8 dispensing organization that also holds a medical cannabis

9 dispensing organization license issued under the Compassionate

10 Use of Medical Cannabis Pilot Program Act, the Department may

11 consider the suspension or revocation as grounds to take

12 disciplinary action against the medical cannabis dispensing

13 organization.

14 (t) All fees or fines collected from an Early Approval

15 Adult Use Dispensary Organization License at a secondary site

16 holder as a result of a disciplinary action in the enforcement

17 of this Act shall be deposited into the Cannabis Regulation

18 Fund and be appropriated to the Department for the ordinary and

19 contingent expenses of the Department in the administration and

20 enforcement of this Section.

21 Section 15-25. Awarding of Conditional Adult Use

22 Dispensing Organization Licenses prior to January 1, 2021.

23 (a) The Department shall issue up to 75 Conditional Adult

24 Use Dispensing Organization Licenses before May 1, 2020.

25 (b) The Department shall make the application for a

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1 Conditional Adult Use Dispensing Organization License

2 available no later than October 1, 2019 and shall accept

3 applications no later than January 1, 2020.

4 (c) To ensure the geographic dispersion of Conditional

5 Adult Use Dispensing Organization License holders, the

6 following number of licenses shall be awarded in each BLS

7 Region as determined by each region's percentage of the State's

8 population:

9 (1) Bloomington: 1

10 (2) Cape Girardeau: 1

11 (3) Carbondale-Marion: 1

12 (4) Champaign-Urbana: 1

13 (5) Chicago-Naperville-Elgin: 47

14 (6) Danville: 1

15 (7) Davenport-Moline-Rock Island: 1

16 (8) Decatur: 1

17 (9) Kankakee: 1

18 (10) Peoria: 3

19 (11) Rockford: 2

20 (12) St. Louis: 4

21 (13) Springfield: 1

22 (14) Northwest Illinois nonmetropolitan: 3

23 (15) West Central Illinois nonmetropolitan: 3

24 (16) East Central Illinois nonmetropolitan: 2

25 (17) South Illinois nonmetropolitan: 2

26 (d) An applicant seeking issuance of a Conditional Adult

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1 Use Dispensing Organization License shall submit an

2 application on forms provided by the Department. An applicant

3 must meet the following requirements:

4 (1) Payment of a nonrefundable application fee of

5 $5,000 for each license for which the applicant is

6 applying, which shall be deposited into the Cannabis

7 Regulation Fund;

8 (2) Certification that the applicant will comply with

9 the requirements contained in this Act;

10 (3) The legal name of the proposed dispensing

11 organization;

12 (4) A statement that the dispensing organization

13 agrees to respond to the Department's supplemental

14 requests for information;

15 (5) From each principal officer, a statement

16 indicating whether that person:

17 (A) has previously held or currently holds an

18 ownership interest in a cannabis business

19 establishment in Illinois; or

20 (B) has held an ownership interest in a dispensing

21 organization or its equivalent in another state or

22 territory of the United States that had the dispensing

23 organization registration or license suspended,

24 revoked, placed on probationary status, or subjected

25 to other disciplinary action;

26 (6) Disclosure of whether any principal officer has

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1 ever filed for bankruptcy or defaulted on spousal support

2 or child support obligation;

3 (7) A resume for each principal officer, including

4 whether that person has an academic degree, certification,

5 or relevant experience with a cannabis business

6 establishment or in a related industry;

7 (8) A description of the training and education that

8 will be provided to dispensing organization agents;

9 (9) A copy of the proposed operating bylaws;

10 (10) A copy of the proposed business plan that complies

11 with the requirements in this Act, including, at a minimum,

12 the following:

13 (A) A description of services to be offered; and

14 (B) A description of the process of dispensing

15 cannabis;

16 (11) A copy of the proposed security plan that complies

17 with the requirements in this Article, including:

18 (A) The process or controls that will be

19 implemented to monitor the dispensary, secure the

20 premises, agents, and currency, and prevent the

21 diversion, theft, or loss of cannabis; and

22 (B) The process to ensure that access to the

23 restricted access areas is restricted to, registered

24 agents, service professionals, transporting

25 organization agents, Department inspectors, and

26 security personnel;

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1 (12) A proposed inventory control plan that complies

2 with this Section;

3 (13) A proposed floor plan, a square footage estimate,

4 and a description of proposed security devices, including,

5 without limitation, cameras, motion detectors, servers,

6 video storage capabilities, and alarm service providers;

7 (14) The name, address, social security number, and

8 date of birth of each principal officer and board member of

9 the dispensing organization; each of those individuals

10 shall be at least 21 years of age;

11 (15) Evidence of the applicant's status as a Social

12 Equity Applicant, if applicable, and whether a Social

13 Equity Applicant plans to apply for a loan or grant issued

14 by the Department of Commerce and Economic Opportunity;

15 (16) The address, telephone number, and email address

16 of the applicant's principal place of business, if

17 applicable. A post office box is not permitted;

18 (17) Written summaries of any information regarding

19 instances in which a business or not-for-profit that a

20 prospective board member previously managed or served on

21 were fined or censured, or any instances in which a

22 business or not-for-profit that a prospective board member

23 previously managed or served on had its registration

24 suspended or revoked in any administrative or judicial

25 proceeding;

26 (18) A plan for community engagement;

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1 (19) Procedures to ensure accurate recordkeeping and

2 security measures that are in accordance with this Article

3 and Department rules;

4 (20) The estimated volume of cannabis it plans to store

5 at the dispensary;

6 (21) A description of the features that will provide

7 accessibility to purchasers as required by the Americans

8 with Disabilities Act;

9 (22) A detailed description of air treatment systems

10 that will be installed to reduce odors;

11 (23) A reasonable assurance that the issuance of a

12 license will not have a detrimental impact on the community

13 in which the applicant wishes to locate;

14 (24) The dated signature of each principal officer;

15 (25) A description of the enclosed, locked facility

16 where cannabis will be stored by the dispensing

17 organization;

18 (26) Signed statements from each dispensing

19 organization agent stating that he or she will not divert

20 cannabis;

21 (27) The number of licenses it is applying for in each

22 BLS Region;

23 (28) A diversity plan that includes a narrative of at

24 least 2,500 words that establishes a goal of diversity in

25 ownership, management, employment, and contracting to

26 ensure that diverse participants and groups are afforded

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1 equality of opportunity;

2 (29) A contract with a private security contractor that

3 is licensed under Section 10-5 of the Private Detective,

4 Private Alarm, Private Security, Fingerprint Vendor, and

5 Locksmith Act of 2004 in order for the dispensary to have

6 adequate security at its facility; and

7 (30) Other information deemed necessary by the

8 Illinois Cannabis Regulation Oversight Officer to conduct

9 the disparity and availability study referenced in

10 subsection (e) of Section 5-45.

11 (e) An applicant who receives a Conditional Adult Use

12 Dispensing Organization License under this Section has 180 days

13 from the date of award to identify a physical location for the

14 dispensing organization retail storefront. Before a

15 conditional licensee receives an authorization to build out the

16 dispensing organization from the Department, the Department

17 shall inspect the physical space selected by the conditional

18 licensee. The Department shall verify the site is suitable for

19 public access, the layout promotes the safe dispensing of

20 cannabis, the location is sufficient in size, power allocation,

21 lighting, parking, handicapped accessible parking spaces,

22 accessible entry and exits as required by the Americans with

23 Disabilities Act, product handling, and storage. The applicant

24 shall also provide a statement of reasonable assurance that the

25 issuance of a license will not have a detrimental impact on the

26 community. The applicant shall also provide evidence that the

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1 location is not within 1,500 feet of an existing dispensing

2 organization. If an applicant is unable to find a suitable

3 physical address in the opinion of the Department within 180

4 days of the issuance of the Conditional Adult Use Dispensing

5 Organization License, the Department may extend the period for

6 finding a physical address another 180 days if the Conditional

7 Adult Use Dispensing Organization License holder demonstrates

8 concrete attempts to secure a location and a hardship. If the

9 Department denies the extension or the Conditional Adult Use

10 Dispensing Organization License holder is unable to find a

11 location or become operational within 360 days of being awarded

12 a conditional license, the Department shall rescind the

13 conditional license and award it to the next highest scoring

14 applicant in the BLS Region for which the license was assigned,

15 provided the applicant receiving the license: (i) confirms a

16 continued interest in operating a dispensing organization;

17 (ii) can provide evidence that the applicant continues to meet

18 the financial requirements provided in subsection (c) of this

19 Section; and (iii) has not otherwise become ineligible to be

20 awarded a dispensing organization license. If the new awardee

21 is unable to accept the Conditional Adult Use Dispensing

22 Organization License, the Department shall award the

23 Conditional Adult Use Dispensing Organization License to the

24 next highest scoring applicant in the same manner. The new

25 awardee shall be subject to the same required deadlines as

26 provided in this subsection.

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1 (e-5) If, within 180 days of being awarded a Conditional

2 Adult Use Dispensing Organization license, a dispensing

3 organization is unable to find a location within the BLS Region

4 in which it was awarded a Conditional Adult Use Dispensing

5 Organization license because no jurisdiction within the BLS

6 Region allows for the operation of an Adult Use Dispensing

7 Organization, the Department of Financial and Professional

8 Regulation may authorize the Conditional Adult Use Dispensing

9 Organization License holder to transfer its license to a BLS

10 Region specified by the Department.

11 (f) A dispensing organization that is awarded a Conditional

12 Adult Use Dispensing Organization License pursuant to the

13 criteria in Section 15-30 shall not purchase, possess, sell, or

14 dispense cannabis or cannabis-infused products until the

15 person has received an Adult Use Dispensing Organization

16 License issued by the Department pursuant to Section 15-36 of

17 this Act. The Department shall not issue an Adult Use

18 Dispensing Organization License until:

19 (1) the Department has inspected the dispensary site

20 and proposed operations and verified that they are in

21 compliance with this Act and local zoning laws; and

22 (2) the Conditional Adult Use Dispensing Organization

23 License holder has paid a registration fee of $60,000, or a

24 prorated amount accounting for the difference of time

25 between when the Adult Use Dispensing Organization License

26 is issued and March 31 of the next even-numbered year.

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1 (g) The Department shall conduct a background check of the

2 prospective organization agents in order to carry out this

3 Article. The Department of State Police shall charge the

4 applicant a fee for conducting the criminal history record

5 check, which shall be deposited into the State Police Services

6 Fund and shall not exceed the actual cost of the record check.

7 Each person applying as a dispensing organization agent shall

8 submit a full set of fingerprints to the Department of State

9 Police for the purpose of obtaining a State and federal

10 criminal records check. These fingerprints shall be checked

11 against the fingerprint records now and hereafter, to the

12 extent allowed by law, filed in the Department of State Police

13 and Federal Bureau of Identification criminal history records

14 databases. The Department of State Police shall furnish,

15 following positive identification, all Illinois conviction

16 information to the Department.

17 Section 15-30. Selection criteria for conditional licenses

18 awarded under Section 15-25.

19 (a) Applicants for a Conditional Adult Use Dispensing

20 Organization License must submit all required information,

21 including the information required in Section 15-25, to the

22 Department. Failure by an applicant to submit all required

23 information may result in the application being disqualified.

24 (b) If the Department receives an application that fails to

25 provide the required elements contained in this Section, the

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1 Department shall issue a deficiency notice to the applicant.

2 The applicant shall have 10 calendar days from the date of the

3 deficiency notice to resubmit the incomplete information.

4 Applications that are still incomplete after this opportunity

5 to cure will not be scored and will be disqualified.

6 (c) The Department will award up to 250 points to complete

7 applications based on the sufficiency of the applicant's

8 responses to required information. Applicants will be awarded

9 points based on a determination that the application

10 satisfactorily includes the following elements:

11 (1) Suitability of Employee Training Plan (15 points).

12 The plan includes an employee training plan that

13 demonstrates that employees will understand the rules

14 and laws to be followed by dispensary employees, have

15 knowledge of any security measures and operating

16 procedures of the dispensary, and are able to advise

17 purchasers on how to safely consume cannabis and use

18 individual products offered by the dispensary.

19 (2) Security and Recordkeeping (65 points).

20 (A) The security plan accounts for the prevention

21 of the theft or diversion of cannabis. The security

22 plan demonstrates safety procedures for dispensary

23 agents and purchasers, and safe delivery and storage of

24 cannabis and currency. It demonstrates compliance with

25 all security requirements in this Act and rules.

26 (B) A plan for recordkeeping, tracking, and

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1 monitoring inventory, quality control, and other

2 policies and procedures that will promote standard

3 recordkeeping and discourage unlawful activity. This

4 plan includes the applicant's strategy to communicate

5 with the Department and the Department of State Police

6 on the destruction and disposal of cannabis. The plan

7 must also demonstrate compliance with this Act and

8 rules.

9 (C) The security plan shall also detail which

10 private security contractor licensed under Section

11 10-5 of the Private Detective, Private Alarm, Private

12 Security, Fingerprint Vendor, and Locksmith Act of

13 2004 the dispensary will contract with in order to

14 provide adequate security at its facility.

15 (3) Applicant's Business Plan, Financials, Operating

16 and Floor Plan (65 points).

17 (A) The business plan shall describe, at a minimum,

18 how the dispensing organization will be managed on a

19 long-term basis. This shall include a description of

20 the dispensing organization's point-of-sale system,

21 purchases and denials of sale, confidentiality, and

22 products and services to be offered. It will

23 demonstrate compliance with this Act and rules.

24 (B) The operating plan shall include, at a minimum,

25 best practices for day-to-day dispensary operation and

26 staffing. The operating plan may also include

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1 information about employment practices, including

2 information about the percentage of full-time

3 employees who will be provided a living wage.

4 (C) The proposed floor plan is suitable for public

5 access, the layout promotes safe dispensing of

6 cannabis, is compliant with the Americans with

7 Disabilities Act and the Environmental Barriers Act,

8 and facilitates safe product handling and storage.

9 (4) Knowledge and Experience (30 points).

10 (A) The applicant's principal officers must

11 demonstrate experience and qualifications in business

12 management or experience with the cannabis industry.

13 This includes ensuring optimal safety and accuracy in

14 the dispensing and sale of cannabis.

15 (B) The applicant's principal officers must

16 demonstrate knowledge of various cannabis product

17 strains or varieties and describe the types and

18 quantities of products planned to be sold. This

19 includes confirmation of whether the dispensing

20 organization plans to sell cannabis paraphernalia or

21 edibles.

22 (C) Knowledge and experience may be demonstrated

23 through experience in other comparable industries that

24 reflect on applicant's ability to operate a cannabis

25 business establishment.

26 (5) Status as a Social Equity Applicant (50 points).

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1 The applicant meets the qualifications for a

2 Social Equity Applicant as set forth in this Act.

3 (6) Labor and employment practices (5 points): The

4 applicant may describe plans to provide a safe, healthy,

5 and economically beneficial working environment for its

6 agents, including, but not limited to, codes of conduct,

7 health care benefits, educational benefits, retirement

8 benefits, living wage standards, and entering a labor peace

9 agreement with employees.

10 (7) Environmental Plan (5 points): The applicant may

11 demonstrate an environmental plan of action to minimize the

12 carbon footprint, environmental impact, and resource needs

13 for the dispensary, which may include, without limitation,

14 recycling cannabis product packaging.

15 (8) Illinois owner (5 points): The applicant is 51% or

16 more owned and controlled by an Illinois resident, who can

17 prove residency in each of the past 5 years with tax

18 records.

19 (9) Status as veteran (5 points): The applicant is 51%

20 or more controlled and owned by an individual or

21 individuals who meet the qualifications of a veteran as

22 defined by Section 45-57 of the Illinois Procurement Code.

23 (10) A diversity plan (5 points): that includes a

24 narrative of not more than 2,500 words that establishes a

25 goal of diversity in ownership, management, employment,

26 and contracting to ensure that diverse participants and

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1 groups are afforded equality of opportunity.

2 (d) The Department may also award up to 2 bonus points for

3 a plan to engage with the community. The applicant may

4 demonstrate a desire to engage with its community by

5 participating in one or more of, but not limited to, the

6 following actions: (i) establishment of an incubator program

7 designed to increase participation in the cannabis industry by

8 persons who would qualify as Social Equity Applicants; (ii)

9 providing financial assistance to substance abuse treatment

10 centers; (iii) educating children and teens about the potential

11 harms of cannabis use; or (iv) other measures demonstrating a

12 commitment to the applicant's community. Bonus points will only

13 be awarded if the Department receives applications that receive

14 an equal score for a particular region.

15 (e) The Department may verify information contained in each

16 application and accompanying documentation to assess the

17 applicant's veracity and fitness to operate a dispensing

18 organization.

19 (f) The Department may, in its discretion, refuse to issue

20 an authorization to any applicant:

21 (1) Who is unqualified to perform the duties required

22 of the applicant;

23 (2) Who fails to disclose or states falsely any

24 information called for in the application;

25 (3) Who has been found guilty of a violation of this

26 Act, or whose medical cannabis dispensing organization,

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1 medical cannabis cultivation organization, or Early

2 Approval Adult Use Dispensing Organization License, or

3 Early Approval Adult Use Dispensing Organization License

4 at a secondary site, or Early Approval Cultivation Center

5 License was suspended, restricted, revoked, or denied for

6 just cause, or the applicant's cannabis business

7 establishment license was suspended, restricted, revoked,

8 or denied in any other state; or

9 (4) Who has engaged in a pattern or practice of unfair

10 or illegal practices, methods, or activities in the conduct

11 of owning a cannabis business establishment or other

12 business.

13 (g) The Department shall deny the license if any principal

14 officer, board member, or person having a financial or voting

15 interest of 5% or greater in the licensee is delinquent in

16 filing any required tax returns or paying any amounts owed to

17 the State of Illinois.

18 (h) The Department shall verify an applicant's compliance

19 with the requirements of this Article and rules before issuing

20 a dispensing organization license.

21 (i) Should the applicant be awarded a license, the

22 information and plans provided in the application, including

23 any plans submitted for bonus points, shall become a condition

24 of the Conditional Adult Use Dispensing Organization Licenses,

25 except as otherwise provided by this Act or rule. Dispensing

26 organizations have a duty to disclose any material changes to

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1 the application. The Department shall review all material

2 changes disclosed by the dispensing organization, and may

3 re-evaluate its prior decision regarding the awarding of a

4 license, including, but not limited to, suspending or revoking

5 a license. Failure to comply with the conditions or

6 requirements in the application may subject the dispensing

7 organization to discipline, up to and including suspension or

8 revocation of its authorization or license by the Department.

9 (j) If an applicant has not begun operating as a dispensing

10 organization within one year of the issuance of the Conditional

11 Adult Use Dispensing Organization License, the Department may

12 revoke the Conditional Adult Use Dispensing Organization

13 License and award it to the next highest scoring applicant in

14 the BLS Region if a suitable applicant indicates a continued

15 interest in the license or begin a new selection process to

16 award a Conditional Adult Use Dispensing Organization License.

17 (k) The Department shall deny an application if granting

18 that application would result in a single person or entity

19 having a direct or indirect financial interest in more than 10

20 Early Approval Adult Use Dispensing Organization Licenses,

21 Conditional Adult Use Dispensing Organization Licenses, or

22 Adult Use Dispensing Organization Licenses. Any entity that is

23 awarded a license that results in a single person or entity

24 having a direct or indirect financial interest in more than 10

25 licenses shall forfeit the most recently issued license and

26 suffer a penalty to be determined by the Department, unless the

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1 entity declines the license at the time it is awarded.

2 Section 15-35. Conditional Adult Use Dispensing

3 Organization License after January 1, 2021.

4 (a) In addition to any of the licenses issued in Sections

5 15-15, Section 15-20, or Section 15-25 of this Act, by December

6 21, 2021, the Department shall issue up to 110 Conditional

7 Adult Use Dispensing Organization Licenses, pursuant to the

8 application process adopted under this Section. Prior to

9 issuing such licenses, the Department may adopt rules through

10 emergency rulemaking in accordance with subsection (gg) of

11 Section 5-45 of the Illinois Administrative Procedure Act. The

12 General Assembly finds that the adoption of rules to regulate

13 cannabis use is deemed an emergency and necessary for the

14 public interest, safety, and welfare. Such rules may:

15 (1) Modify or change the BLS Regions as they apply to

16 this Article or modify or raise the number of Adult

17 Conditional Use Dispensing Organization Licenses assigned

18 to each region based on the following factors:

19 (A) Purchaser wait times;

20 (B) Travel time to the nearest dispensary for

21 potential purchasers;

22 (C) Percentage of cannabis sales occurring in

23 Illinois not in the regulated market using data from

24 the Substance Abuse and Mental Health Services

25 Administration, National Survey on Drug Use and

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1 Health, Illinois Behavioral Risk Factor Surveillance

2 System, and tourism data from the Illinois Office of

3 Tourism to ascertain total cannabis consumption in

4 Illinois compared to the amount of sales in licensed

5 dispensing organizations;

6 (D) Whether there is an adequate supply of cannabis

7 and cannabis-infused products to serve registered

8 medical cannabis patients;

9 (E) Population increases or shifts;

10 (F) Density of dispensing organizations in a

11 region;

12 (G) The Department's capacity to appropriately

13 regulate additional licenses;

14 (H) The findings and recommendations from the

15 disparity and availability study commissioned by the

16 Illinois Cannabis Regulation Oversight Officer in

17 subsection (e) of Section 5-45 to reduce or eliminate

18 any identified barriers to entry in the cannabis

19 industry; and

20 (I) Any other criteria the Department deems

21 relevant.

22 (2) Modify or change the licensing application process

23 to reduce or eliminate the barriers identified in the

24 disparity and availability study commissioned by the

25 Illinois Cannabis Regulation Oversight Officer and make

26 modifications to remedy evidence of discrimination.

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1 (b) After January 1, 2022, the Department may by rule

2 modify or raise the number of Adult Use Dispensing Organization

3 Licenses assigned to each region, and modify or change the

4 licensing application process to reduce or eliminate barriers

5 based on the criteria in subsection (a). At no time shall the

6 Department issue more than 500 Adult Use Dispensary

7 Organization Licenses.

8 Section 15-36. Adult Use Dispensing Organization License.

9 (a) A person is only eligible to receive an Adult Use

10 Dispensing Organization if the person has been awarded a

11 Conditional Adult Use Dispensing Organization License pursuant

12 to this Act or has renewed its license pursuant to subsection

13 (k) of Section 15-15 or subsection (p) of Section 15-20.

14 (b) The Department shall not issue an Adult Use Dispensing

15 Organization License until:

16 (1) the Department has inspected the dispensary site

17 and proposed operations and verified that they are in

18 compliance with this Act and local zoning laws;

19 (2) the Conditional Adult Use Dispensing Organization

20 License holder has paid a registration fee of $60,000 or a

21 prorated amount accounting for the difference of time

22 between when the Adult Use Dispensing Organization License

23 is issued and March 31 of the next even-numbered year; and

24 (3) the Conditional Adult Use Dispensing Organization

25 License holder has met all the requirements in the Act and

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1 rules.

2 (c) No person or entity shall hold any legal, equitable,

3 ownership, or beneficial interest, directly or indirectly, of

4 more than 10 dispensing organizations licensed under this

5 Article. Further, no person or entity that is:

6 (1) employed by, is an agent of, or participates in the

7 management of a dispensing organization or registered

8 medical cannabis dispensing organization;

9 (2) a principal officer of a dispensing organization or

10 registered medical cannabis dispensing organization; or

11 (3) an entity controlled by or affiliated with a

12 principal officer of a dispensing organization or

13 registered medical cannabis dispensing organization;

14 shall hold any legal, equitable, ownership, or beneficial

15 interest, directly or indirectly, in a dispensing organization

16 that would result in such person or entity owning or

17 participating in the management of more than 10 dispensing

18 organizations. For the purpose of this subsection,

19 participating in management may include, without limitation,

20 controlling decisions regarding staffing, pricing, purchasing,

21 marketing, store design, hiring, and website design.

22 (d) The Department shall deny an application if granting

23 that application would result in a person or entity obtaining

24 direct or indirect financial interest in more than 10 Early

25 Approval Adult Use Dispensing Organization Licenses,

26 Conditional Adult Use Dispensing Organization Licenses, Adult

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1 Use Dispensing Organization Licenses, or any combination

2 thereof. If a person or entity is awarded a Conditional Adult

3 Use Dispensing Organization License that would cause the person

4 or entity to be in violation of this subsection, he, she, or it

5 shall choose which license application it wants to abandon and

6 such licenses shall become available to the next qualified

7 applicant in the region in which the abandoned license was

8 awarded.

9 Section 15-40. Dispensing organization agent

10 identification card; agent training.

11 (a) The Department shall:

12 (1) Verify the information contained in an application

13 or renewal for a dispensing organization agent

14 identification card submitted under this Article, and

15 approve or deny an application or renewal, within 30 days

16 of receiving a completed application or renewal

17 application and all supporting documentation required by

18 rule;

19 (2) Issue a dispensing organization agent

20 identification card to a qualifying agent within 15

21 business days of approving the application or renewal;

22 (3) Enter the registry identification number of the

23 dispensing organization where the agent works;

24 (4) Within one year from the effective date of this

25 Act, allow for an electronic application process and

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1 provide a confirmation by electronic or other methods that

2 an application has been submitted; and

3 (5) Collect a $100 nonrefundable fee from the applicant

4 to be deposited into the Cannabis Regulation Fund.

5 (b) A dispensing agent must keep his or her identification

6 card visible at all times when on the property of the

7 dispensing organization.

8 (c) The dispensing organization agent identification cards

9 shall contain the following:

10 (1) The name of the cardholder;

11 (2) The date of issuance and expiration date of the

12 dispensing organization agent identification cards;

13 (3) A random 10-digit alphanumeric identification

14 number containing at least 4 numbers and at least 4 letters

15 that is unique to the cardholder; and

16 (4) A photograph of the cardholder.

17 (d) The dispensing organization agent identification cards

18 shall be immediately returned to the dispensing organization

19 upon termination of employment.

20 (e) The Department shall not issue an agent identification

21 card if the applicant is delinquent in filing any required tax

22 returns or paying any amounts owed to the State of Illinois.

23 (f) Any card lost by a dispensing organization agent shall

24 be reported to the Department of State Police and the

25 Department immediately upon discovery of the loss.

26 (g) An applicant shall be denied a dispensing organization

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1 agent identification card if he or she fails to complete the

2 training provided for in this Section.

3 (h) A dispensing organization agent shall only be required

4 to hold one card for the same employer regardless of what type

5 of dispensing organization license the employer holds.

6 (i) Cannabis retail sales training requirements.

7 (1) Within 90 days of September 1, 2019, or 90 days of

8 employment, whichever is later, all owners, managers,

9 employees, and agents involved in the handling or sale of

10 cannabis or cannabis-infused product employed by an adult

11 use dispensing organization or medical cannabis dispensing

12 organization as defined in Section 10 of the Compassionate

13 Use of Medical Cannabis Pilot Program Act shall attend and

14 successfully complete a Responsible Vendor Program.

15 (2) Each owner, manager, employee, and agent of an

16 adult use dispensing organization or medical cannabis

17 dispensing organization shall successfully complete the

18 program annually.

19 (3) Responsible Vendor Program Training modules shall

20 include at least 2 hours of instruction time approved by

21 the Department including:

22 (i) Health and safety concerns of cannabis use,

23 including the responsible use of cannabis, its

24 physical effects, onset of physiological effects,

25 recognizing signs of impairment, and appropriate

26 responses in the event of overconsumption.

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1 (ii) Training on laws and regulations on driving

2 while under the influence.

3 (iii) Sales to minors prohibition. Training shall

4 cover all relevant Illinois laws and rules.

5 (iv) Quantity limitations on sales to purchasers.

6 Training shall cover all relevant Illinois laws and

7 rules.

8 (v) Acceptable forms of identification. Training

9 shall include:

10 (I) How to check identification; and

11 (II) Common mistakes made in verification;

12 (vi) Safe storage of cannabis;

13 (vii) Compliance with all inventory tracking

14 system regulations;

15 (viii) Waste handling, management, and disposal;

16 (ix) Health and safety standards;

17 (x) Maintenance of records;

18 (xi) Security and surveillance requirements;

19 (xii) Permitting inspections by State and local

20 licensing and enforcement authorities;

21 (xiii) Privacy issues;

22 (xiv) Packaging and labeling requirement for sales

23 to purchasers; and

24 (xv) Other areas as determined by rule.

25 (k) Upon the successful completion of the Responsible

26 Vendor Program, the provider shall deliver proof of completion

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1 either through mail or electronic communication to the

2 dispensing organization, which shall retain a copy of the

3 certificate.

4 (l) The license of a dispensing organization or medical

5 cannabis dispensing organization whose owners, managers,

6 employees, or agents fail to comply with this Section may be

7 suspended or revoked under Section 15-145 or may face other

8 disciplinary action.

9 (m) The regulation of dispensing organization and medical

10 cannabis dispensing employer and employee training is an

11 exclusive function of the State, and regulation by a unit of

12 local government, including a home rule unit, is prohibited.

13 This subsection (m) is a denial and limitation of home rule

14 powers and functions under subsection (h) of Section 6 of

15 Article VII of the Illinois Constitution.

16 (n) Persons seeking Department approval to offer the

17 training required by paragraph (3) of subsection (i) may apply

18 for such approval between August 1 and August 15 of each

19 odd-numbered year in a manner prescribed by the Department.

20 (o) Persons seeking Department approval to offer the

21 training required by paragraph (3) of subsection (i) shall

22 submit a non-refundable application fee of $2,000 to be

23 deposited into the Cannabis Regulation Fund or a fee as may be

24 set by rule. Any changes made to the training module shall be

25 approved by the Department.

26 (p) The Department shall not unreasonably deny approval of

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1 a training module that meets all the requirements of paragraph

2 (3) of subsection (i). A denial of approval shall include a

3 detailed description of the reasons for the denial.

4 (q) Any person approved to provide the training required by

5 paragraph (3) of subsection (i) shall submit an application for

6 re-approval between August 1 and August 15 of each odd-numbered

7 year and include a non-refundable application fee of $2,000 to

8 be deposited into the Cannabis Regulation Fund or a fee as may

9 be set by rule.

10 Section 15-45. Renewal.

11 (a) Adult Use Dispensing Organization Licenses shall

12 expire on March 31 of even-numbered years.

13 (b) Agent identification cards shall expire one year from

14 the date they are issued.

15 (c) Licensees and dispensing agents shall submit a renewal

16 application as provided by the Department and pay the required

17 renewal fee. The Department shall require an agent, employee,

18 contracting, and subcontracting diversity report and an

19 environmental impact report with its renewal application. No

20 license or agent identification card shall be renewed if it is

21 currently under revocation or suspension for violation of this

22 Article or any rules that may be adopted under this Article or

23 the licensee, principal officer, board member, person having a

24 financial or voting interest of 5% or greater in the licensee,

25 or agent is delinquent in filing any required tax returns or

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1 paying any amounts owed to the State of Illinois.

2 (d) Renewal fees are:

3 (1) For a dispensing organization, $60,000, to be

4 deposited into the Cannabis Regulation Fund.

5 (2) For an agent identification card, $100, to be

6 deposited into the Cannabis Regulation Fund.

7 (e) If a dispensing organization fails to renew its license

8 before expiration, the dispensing organization shall cease

9 operations until the license is renewed.

10 (f) If a dispensing organization agent fails to renew his

11 or her registration before its expiration, he or she shall

12 cease to perform duties authorized by this Article at a

13 dispensing organization until his or her registration is

14 renewed.

15 (g) Any dispensing organization that continues to operate

16 or dispensing agent that continues to perform duties authorized

17 by this Article at a dispensing organization that fails to

18 renew its license is subject to penalty as provided in this

19 Article, or any rules that may be adopted pursuant to this

20 Article.

21 (h) The Department shall not renew a license if the

22 applicant is delinquent in filing any required tax returns or

23 paying any amounts owed to the State of Illinois. The

24 Department shall not renew a dispensing agent identification

25 card if the applicant is delinquent in filing any required tax

26 returns or paying any amounts owed to the State of Illinois.

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1 Section 15-50. Disclosure of ownership and control.

2 (a) Each dispensing organization applicant and licensee

3 shall file and maintain a Table of Organization, Ownership and

4 Control with the Department. The Table of Organization,

5 Ownership and Control shall contain the information required by

6 this Section in sufficient detail to identify all owners,

7 directors, and principal officers, and the title of each

8 principal officer or business entity that, through direct or

9 indirect means, manages, owns, or controls the applicant or

10 licensee.

11 (b) The Table of Organization, Ownership and Control shall

12 identify the following information:

13 (1) The management structure, ownership, and control

14 of the applicant or license holder including the name of

15 each principal officer or business entity, the office or

16 position held, and the percentage ownership interest, if

17 any. If the business entity has a parent company, the name

18 of each owner, board member, and officer of the parent

19 company and his or her percentage ownership interest in the

20 parent company and the dispensing organization.

21 (2) If the applicant or licensee is a business entity

22 with publicly traded stock, the identification of

23 ownership shall be provided as required in subsection (c).

24 (c) If a business entity identified in subsection (b) is a

25 publicly traded company, the following information shall be

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1 provided in the Table of Organization, Ownership and Control:

2 (1) The name and percentage of ownership interest of

3 each individual or business entity with ownership of more

4 than 5% of the voting shares of the entity, to the extent

5 such information is known or contained in 13D or 13G

6 Securities and Exchange Commission filings.

7 (2) To the extent known, the names and percentage of

8 interest of ownership of persons who are relatives of one

9 another and who together exercise control over or own more

10 than 10% of the voting shares of the entity.

11 (d) A dispensing organization with a parent company or

12 companies, or partially owned or controlled by another entity

13 must disclose to the Department the relationship and all

14 owners, board members, officers, or individuals with control or

15 management of those entities. A dispensing organization shall

16 not shield its ownership or control from the Department.

17 (e) All principal officers must submit a complete online

18 application with the Department within 14 days of the

19 dispensing organization being licensed by the Department or

20 within 14 days of Department notice of approval as a new

21 principal officer.

22 (f) A principal officer may not allow his or her

23 registration to expire.

24 (g) A dispensing organization separating with a principal

25 officer must do so under this Act. The principal officer must

26 communicate the separation to the Department within 5 business

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1 days.

2 (h) A principal officer not in compliance with the

3 requirements of this Act shall be removed from his or her

4 position with the dispensing organization or shall otherwise

5 terminate his or her affiliation. Failure to do so may subject

6 the dispensing organization to discipline, suspension, or

7 revocation of its license by the Department.

8 (i) It is the responsibility of the dispensing organization

9 and its principal officers to promptly notify the Department of

10 any change of the principal place of business address, hours of

11 operation, change in ownership or control, or a change of the

12 dispensing organization's primary or secondary contact

13 information. Any changes must be made to the Department in

14 writing.

15 Section 15-55. Financial responsibility. Evidence of

16 financial responsibility is a requirement for the issuance,

17 maintenance, or reactivation of a license under this Article.

18 Evidence of financial responsibility shall be used to guarantee

19 that the dispensing organization timely and successfully

20 completes dispensary construction, operates in a manner that

21 provides an uninterrupted supply of cannabis, faithfully pays

22 registration renewal fees, keeps accurate books and records,

23 makes regularly required reports, complies with State tax

24 requirements, and conducts the dispensing organization in

25 conformity with this Act and rules. Evidence of financial

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1 responsibility shall be provided by one of the following:

2 (1) Establishing and maintaining an escrow or surety

3 account in a financial institution in the amount of

4 $50,000, with escrow terms, approved by the Department,

5 that it shall be payable to the Department in the event of

6 circumstances outlined in this Act and rules.

7 (A) A financial institution may not return money in

8 an escrow or surety account to the dispensing

9 organization that established the account or a

10 representative of the organization unless the

11 organization or representative presents a statement

12 issued by the Department indicating that the account

13 may be released.

14 (B) The escrow or surety account shall not be

15 canceled on less than 30 days' notice in writing to the

16 Department, unless otherwise approved by the

17 Department. If an escrow or surety account is canceled

18 and the registrant fails to secure a new account with

19 the required amount on or before the effective date of

20 cancellation, the registrant's registration may be

21 revoked. The total and aggregate liability of the

22 surety on the bond is limited to the amount specified

23 in the escrow or surety account.

24 (2) Providing a surety bond in the amount of $50,000,

25 naming the dispensing organization as principal of the

26 bond, with terms, approved by the Department, that the bond

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1 defaults to the Department in the event of circumstances

2 outlined in this Act and rules. Bond terms shall include:

3 (A) The business name and registration number on

4 the bond must correspond exactly with the business name

5 and registration number in the Department's records.

6 (B) The bond must be written on a form approved by

7 the Department.

8 (C) A copy of the bond must be received by the

9 Department within 90 days after the effective date.

10 (D) The bond shall not be canceled by a surety on

11 less than 30 days' notice in writing to the Department.

12 If a bond is canceled and the registrant fails to file

13 a new bond with the Department in the required amount

14 on or before the effective date of cancellation, the

15 registrant's registration may be revoked. The total

16 and aggregate liability of the surety on the bond is

17 limited to the amount specified in the bond.

18 Section 15-60. Changes to a dispensing organization.

19 (a) A license shall be issued to the specific dispensing

20 organization identified on the application and for the specific

21 location proposed. The license is valid only as designated on

22 the license and for the location for which it is issued.

23 (b) A dispensing organization may only add principal

24 officers after being approved by the Department.

25 (c) A dispensing organization shall provide written notice

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1 of the removal of a principal officer within 5 business days

2 after removal. The notice shall include the written agreement

3 of the principal officer being removed, unless otherwise

4 approved by the Department, and allocation of ownership shares

5 after removal in an updated ownership chart.

6 (d) A dispensing organization shall provide a written

7 request to the Department for the addition of principal

8 officers. A dispensing organization shall submit proposed

9 principal officer applications on forms approved by the

10 Department.

11 (e) All proposed new principal officers shall be subject to

12 the requirements of this Act, this Article, and any rules that

13 may be adopted pursuant to this Act.

14 (f) The Department may prohibit the addition of a principal

15 officer to a dispensing organization for failure to comply with

16 this Act, this Article, and any rules that may be adopted

17 pursuant to this Act.

18 (g) A dispensing organization may not assign a license.

19 (h) A dispensing organization may not transfer a license

20 without prior Department approval. Such approval may be

21 withheld if the person to whom the license is being transferred

22 does not commit to the same or a similar community engagement

23 plan provided as part of the dispensing organization's

24 application under paragraph (18) of subsection (d) of Section

25 15-25, and such transferee's license shall be conditional upon

26 that commitment.

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1 (i) With the addition or removal of principal officers, the

2 Department will review the ownership structure to determine

3 whether the change in ownership has had the effect of a

4 transfer of the license. The dispensing organization shall

5 supply all ownership documents requested by the Department.

6 (j) A dispensing organization may apply to the Department

7 to approve a sale of the dispensing organization. A request to

8 sell the dispensing organization must be on application forms

9 provided by the Department. A request for an approval to sell a

10 dispensing organization must comply with the following:

11 (1) New application materials shall comply with this

12 Act and any rules that may be adopted pursuant to this Act;

13 (2) Application materials shall include a change of

14 ownership fee of $5,000 to be deposited into the Cannabis

15 Regulation Fund;

16 (3) The application materials shall provide proof that

17 the transfer of ownership will not have the effect of

18 granting any of the owners or principal officers direct or

19 indirect ownership or control of more than 10 adult use

20 dispensing organization licenses;

21 (4) New principal officers shall each complete the

22 proposed new principal officer application;

23 (5) If the Department approves the application

24 materials and proposed new principal officer applications,

25 it will perform an inspection before approving the sale and

26 issuing the dispensing organization license;

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1 (6) If a new license is approved, the Department will

2 issue a new license number and certificate to the new

3 dispensing organization.

4 (k) The dispensing organization shall provide the

5 Department with the personal information for all new dispensing

6 organizations agents as required in this Article and all new

7 dispensing organization agents shall be subject to the

8 requirements of this Article. A dispensing organization agent

9 must obtain an agent identification card from the Department

10 before beginning work at a dispensary.

11 (l) Before remodeling, expansion, reduction, or other

12 physical, noncosmetic alteration of a dispensary, the

13 dispensing organization must notify the Department and confirm

14 the alterations are in compliance with this Act and any rules

15 that may be adopted pursuant to this Act.

16 Section 15-65. Administration.

17 (a) A dispensing organization shall establish, maintain,

18 and comply with written policies and procedures as submitted in

19 the Business, Financial and Operating plan as required in this

20 Article or by rules established by the Department, and approved

21 by the Department, for the security, storage, inventory, and

22 distribution of cannabis. These policies and procedures shall

23 include methods for identifying, recording, and reporting

24 diversion, theft, or loss, and for correcting errors and

25 inaccuracies in inventories. At a minimum, dispensing

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1 organizations shall ensure the written policies and procedures

2 provide for the following:

3 (1) Mandatory and voluntary recalls of cannabis

4 products. The policies shall be adequate to deal with

5 recalls due to any action initiated at the request of the

6 Department and any voluntary action by the dispensing

7 organization to remove defective or potentially defective

8 cannabis from the market or any action undertaken to

9 promote public health and safety, including:

10 (i) A mechanism reasonably calculated to contact

11 purchasers who have, or likely have, obtained the

12 product from the dispensary, including information on

13 the policy for return of the recalled product;

14 (ii) A mechanism to identify and contact the adult

15 use cultivation center, craft grower, or infuser that

16 manufactured the cannabis;

17 (iii) Policies for communicating with the

18 Department, the Department of Agriculture, and the

19 Department of Public Health within 24 hours of

20 discovering defective or potentially defective

21 cannabis; and

22 (iv) Policies for destruction of any recalled

23 cannabis product;

24 (2) Responses to local, State, or national

25 emergencies, including natural disasters, that affect the

26 security or operation of a dispensary;

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1 (3) Segregation and destruction of outdated, damaged,

2 deteriorated, misbranded, or adulterated cannabis. This

3 procedure shall provide for written documentation of the

4 cannabis disposition;

5 (4) Ensure the oldest stock of a cannabis product is

6 distributed first. The procedure may permit deviation from

7 this requirement, if such deviation is temporary and

8 appropriate;

9 (5) Training of dispensing organization agents in the

10 provisions of this Act and rules, to effectively operate

11 the point-of-sale system and the State's verification

12 system, proper inventory handling and tracking, specific

13 uses of cannabis or cannabis-infused products, instruction

14 regarding regulatory inspection preparedness and law

15 enforcement interaction, awareness of the legal

16 requirements for maintaining status as an agent, and other

17 topics as specified by the dispensing organization or the

18 Department. The dispensing organization shall maintain

19 evidence of all training provided to each agent in its

20 files that is subject to inspection and audit by the

21 Department. The dispensing organization shall ensure

22 agents receive a minimum of 8 hours of training subject to

23 the requirements in subsection (i) of Section 15-40

24 annually, unless otherwise approved by the Department;

25 (6) Maintenance of business records consistent with

26 industry standards, including bylaws, consents, manual or

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1 computerized records of assets and liabilities, audits,

2 monetary transactions, journals, ledgers, and supporting

3 documents, including agreements, checks, invoices,

4 receipts, and vouchers. Records shall be maintained in a

5 manner consistent with this Act and shall be retained for 5

6 years;

7 (7) Inventory control, including:

8 (i) Tracking purchases and denials of sale;

9 (ii) Disposal of unusable or damaged cannabis as

10 required by this Act and rules; and

11 (8) Purchaser education and support, including:

12 (i) Whether possession of cannabis is illegal

13 under federal law;

14 (ii) Current educational information issued by the

15 Department of Public Health about the health risks

16 associated with the use or abuse of cannabis;

17 (iii) Information about possible side effects;

18 (iv) Prohibition on smoking cannabis in public

19 places; and

20 (v) Offering any other appropriate purchaser

21 education or support materials.

22 (c) A dispensing organization shall maintain copies of the

23 policies and procedures on the dispensary premises and provide

24 copies to the Department upon request. The dispensing

25 organization shall review the dispensing organization policies

26 and procedures at least once every 12 months from the issue

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1 date of the license and update as needed due to changes in

2 industry standards or as requested by the Department.

3 (d) A dispensing organization shall ensure that each

4 principal officer and each dispensing organization agent has a

5 current agent identification card in the agent's immediate

6 possession when the agent is at the dispensary.

7 (e) A dispensing organization shall provide prompt written

8 notice to the Department, including the date of the event, when

9 a dispensing organization agent no longer is employed by the

10 dispensing organization.

11 (f) A dispensing organization shall promptly document and

12 report any loss or theft of cannabis from the dispensary to the

13 Department of State Police and the Department. It is the duty

14 of any dispensing organization agent who becomes aware of the

15 loss or theft to report it as provided in this Article.

16 (g) A dispensing organization shall post the following

17 information in a conspicuous location in an area of the

18 dispensary accessible to consumers:

19 (1) The dispensing organization's license;

20 (2) The hours of operation.

21 (h) Signage that shall be posted inside the premises.

22 (1) All dispensing organizations must display a

23 placard that states the following: "Cannabis consumption

24 can impair cognition and driving, is for adult use only,

25 may be habit forming, and should not be used by pregnant or

26 breastfeeding women.".

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1 (2) Any dispensing organization that sells edible

2 cannabis-infused products must display a placard that

3 states the following:

4 (A) "Edible cannabis-infused products were

5 produced in a kitchen that may also process common food

6 allergens."; and

7 (B) "The effects of cannabis products can vary from

8 person to person, and it can take as long as two hours

9 to feel the effects of some cannabis-infused products.

10 Carefully review the portion size information and

11 warnings contained on the product packaging before

12 consuming.".

13 (3) All of the required signage in this subsection (h)

14 shall be no smaller than 24 inches tall by 36 inches wide,

15 with typed letters no smaller than 2 inches. The signage

16 shall be clearly visible and readable by customers. The

17 signage shall be placed in the area where cannabis and

18 cannabis-infused products are sold and may be translated

19 into additional languages as needed. The Department may

20 require a dispensary to display the required signage in a

21 different language, other than English, if the Secretary

22 deems it necessary.

23 (i) A dispensing organization shall prominently post

24 notices inside the dispensing organization that state

25 activities that are strictly prohibited and punishable by law,

26 including, but not limited to:

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1 (1) No minors permitted on the premises unless the

2 minor is a minor qualifying patient under the Compassionate

3 Use of Medical Cannabis Pilot Program Act;

4 (2) Distribution to persons under the age of 21 is

5 prohibited;

6 (3) Transportation of cannabis or cannabis products

7 across state lines is prohibited.

8 Section 15-70. Operational requirements; prohibitions.

9 (a) A dispensing organization shall operate in accordance

10 with the representations made in its application and license

11 materials. It shall be in compliance with this Act and rules.

12 (b) A dispensing organization must include the legal name

13 of the dispensary on the packaging of any cannabis product it

14 sells.

15 (c) All cannabis, cannabis-infused products, and cannabis

16 seeds must be obtained from an Illinois registered adult use

17 cultivation center, craft grower, infuser, or another

18 dispensary.

19 (d) Dispensing organizations are prohibited from selling

20 any product containing alcohol except tinctures, which must be

21 limited to containers that are no larger than 100 milliliters.

22 (e) A dispensing organization shall inspect and count

23 product received by the adult use cultivation center before

24 dispensing it.

25 (f) A dispensing organization may only accept cannabis

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1 deliveries into a restricted access area. Deliveries may not be

2 accepted through the public or limited access areas unless

3 otherwise approved by the Department.

4 (g) A dispensing organization shall maintain compliance

5 with State and local building, fire, and zoning requirements or

6 regulations.

7 (h) A dispensing organization shall submit a list to the

8 Department of the names of all service professionals that will

9 work at the dispensary. The list shall include a description of

10 the type of business or service provided. Changes to the

11 service professional list shall be promptly provided. No

12 service professional shall work in the dispensary until the

13 name is provided to the Department on the service professional

14 list.

15 (i) A dispensing organization's license allows for a

16 dispensary to be operated only at a single location.

17 (j) A dispensary may operate between 6 a.m. and 10 p.m.

18 local time.

19 (k) A dispensing organization must keep all lighting

20 outside and inside the dispensary in good working order and

21 wattage sufficient for security cameras.

22 (l) A dispensing organization shall ensure that any

23 building or equipment used by a dispensing organization for the

24 storage or sale of cannabis is maintained in a clean and

25 sanitary condition.

26 (m) The dispensary shall be free from infestation by

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1 insects, rodents, or pests.

2 (n) A dispensing organization shall not:

3 (1) Produce or manufacture cannabis;

4 (2) Accept a cannabis product from an adult use

5 cultivation center, craft grower, infuser, dispensing

6 organization, or transporting organization unless it is

7 pre-packaged and labeled in accordance with this Act and

8 any rules that may be adopted pursuant to this Act;

9 (3) Obtain cannabis or cannabis-infused products from

10 outside the State of Illinois;

11 (4) Sell cannabis or cannabis-infused products to a

12 purchaser unless the dispensary organization is licensed

13 under the Compassionate Use of Medical Cannabis Pilot

14 Program, and the individual is registered under the

15 Compassionate Use of Medical Cannabis Pilot Program or the

16 purchaser has been verified to be over the age of 21;

17 (5) Enter into an exclusive agreement with any adult

18 use cultivation center, craft grower, or infuser.

19 Dispensaries shall provide consumers an assortment of

20 products from various cannabis business establishment

21 licensees such that the inventory available for sale at any

22 dispensary from any single cultivation center, craft

23 grower, processor, or infuser entity shall not be more than

24 40% of the total inventory available for sale. For the

25 purpose of this subsection, a cultivation center, craft

26 grower, processor, or infuser shall be considered part of

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1 the same entity if the licensees share at least one

2 principal officer. The Department may request that a

3 dispensary diversify its products as needed or otherwise

4 discipline a dispensing organization for violating this

5 requirement;

6 (6) Refuse to conduct business with an adult use

7 cultivation center, craft grower, transporting

8 organization, or infuser that has the ability to properly

9 deliver the product and is permitted by the Department of

10 Agriculture, on the same terms as other adult use

11 cultivation centers, craft growers, infusers, or

12 transporters with whom it is dealing;

13 (7) Operate drive-through windows;

14 (8) Allow for the dispensing of cannabis or

15 cannabis-infused products in vending machines;

16 (9) Transport cannabis to residences or other

17 locations where purchasers may be for delivery;

18 (10) Enter into agreements to allow persons who are not

19 dispensing organization agents to deliver cannabis or to

20 transport cannabis to purchasers.

21 (11) Operate a dispensary if its video surveillance

22 equipment is inoperative;

23 (12) Operate a dispensary if the point-of-sale

24 equipment is inoperative;

25 (13) Operate a dispensary if the State's cannabis

26 electronic verification system is inoperative;

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1 (14) Have fewer than 2 people working at the dispensary

2 at any time while the dispensary is open;

3 (15) Be located within 1,500 feet of the property line

4 of a pre-existing dispensing organization;

5 (16) Sell clones or any other live plant material;

6 (17) Sell cannabis, cannabis concentrate, or

7 cannabis-infused products in combination or bundled with

8 each other or any other items for one price, and each item

9 of cannabis, concentrate, or cannabis-infused product must

10 be separately identified by quantity and price on the

11 receipt;

12 (18) Violate any other requirements or prohibitions

13 set by Department rules.

14 (o) It is unlawful for any person having an Early Approval

15 Adult Use Cannabis Dispensing Organization License, a

16 Conditional Adult Use Cannabis Dispensing Organization, an

17 Adult Use Dispensing Organization License, or a medical

18 cannabis dispensing organization license issued under the

19 Compassionate Use of Medical Cannabis Pilot Program or any

20 officer, associate, member, representative, or agent of such

21 licensee to accept, receive, or borrow money or anything else

22 of value or accept or receive credit (other than merchandising

23 credit in the ordinary course of business for a period not to

24 exceed 30 days) directly or indirectly from any adult use

25 cultivation center, craft grower, infuser, or transporting

26 organization. This includes anything received or borrowed or

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1 from any stockholders, officers, agents, or persons connected

2 with an adult use cultivation center, craft grower, infuser, or

3 transporting organization. This also excludes any received or

4 borrowed in exchange for preferential placement by the

5 dispensing organization, including preferential placement on

6 the dispensing organization's shelves, display cases, or

7 website.

8 (p) It is unlawful for any person having an Early Approval

9 Adult Use Cannabis Dispensing Organization License, a

10 Conditional Adult Use Cannabis Dispensing Organization, an

11 Adult Use Dispensing Organization License, or a medical

12 cannabis dispensing organization license issued under the

13 Compassionate Use of Medical Cannabis Pilot Program to enter

14 into any contract with any person licensed to cultivate,

15 process, or transport cannabis whereby such dispensary

16 organization agrees not to sell any cannabis cultivated,

17 processed, transported, manufactured, or distributed by any

18 other cultivator, transporter, or infuser, and any provision in

19 any contract violative of this Section shall render the whole

20 of such contract void and no action shall be brought thereon in

21 any court.

22 Section 15-75. Inventory control system.

23 (a) A dispensing organization agent-in-charge shall have

24 primary oversight of the dispensing organization's cannabis

25 inventory verification system, and its point-of-sale system.

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1 The inventory point-of-sale system shall be real-time,

2 web-based, and accessible by the Department at any time. The

3 point-of-sale system shall track, at a minimum the date of

4 sale, amount, price, and currency.

5 (b) A dispensing organization shall establish an account

6 with the State's verification system that documents:

7 (1) Each sales transaction at the time of sale and each

8 day's beginning inventory, acquisitions, sales, disposal,

9 and ending inventory.

10 (2) Acquisition of cannabis and cannabis-infused

11 products from a licensed adult use cultivation center,

12 craft grower, infuser, or transporter, including:

13 (i) A description of the products, including the

14 quantity, strain, variety, and batch number of each

15 product received;

16 (ii) The name and registry identification number

17 of the licensed adult use cultivation center, craft

18 grower, or infuser providing the cannabis and

19 cannabis-infused products;

20 (iii) The name and registry identification number

21 of the licensed adult use cultivation center, craft

22 grower, infuser, or transportation agent delivering

23 the cannabis;

24 (iv) The name and registry identification number

25 of the dispensing organization agent receiving the

26 cannabis; and

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1 (v) The date of acquisition.

2 (3) The disposal of cannabis, including:

3 (i) A description of the products, including the

4 quantity, strain, variety, batch number, and reason

5 for the cannabis being disposed;

6 (ii) The method of disposal; and

7 (iii) The date and time of disposal.

8 (c) Upon cannabis delivery, a dispensing organization

9 shall confirm the product's name, strain name, weight, and

10 identification number on the manifest matches the information

11 on the cannabis product label and package. The product name

12 listed and the weight listed in the State's verification system

13 shall match the product packaging.

14 (d) The agent-in-charge shall conduct daily inventory

15 reconciliation documenting and balancing cannabis inventory by

16 confirming the State's verification system matches the

17 dispensing organization's point-of-sale system and the amount

18 of physical product at the dispensary.

19 (1) A dispensing organization must receive Department

20 approval before completing an inventory adjustment. It

21 shall provide a detailed reason for the adjustment.

22 Inventory adjustment documentation shall be kept at the

23 dispensary for 2 years from the date performed.

24 (2) If the dispensing organization identifies an

25 imbalance in the amount of cannabis after the daily

26 inventory reconciliation due to mistake, the dispensing

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1 organization shall determine how the imbalance occurred

2 and immediately upon discovery take and document

3 corrective action. If the dispensing organization cannot

4 identify the reason for the mistake within 2 calendar days

5 after first discovery, it shall inform the Department

6 immediately in writing of the imbalance and the corrective

7 action taken to date. The dispensing organization shall

8 work diligently to determine the reason for the mistake.

9 (3) If the dispensing organization identifies an

10 imbalance in the amount of cannabis after the daily

11 inventory reconciliation or through other means due to

12 theft, criminal activity, or suspected criminal activity,

13 the dispensing organization shall immediately determine

14 how the reduction occurred and take and document corrective

15 action. Within 24 hours after the first discovery of the

16 reduction due to theft, criminal activity, or suspected

17 criminal activity, the dispensing organization shall

18 inform the Department and the Department of State Police in

19 writing.

20 (4) The dispensing organization shall file an annual

21 compilation report with the Department, including a

22 financial statement that shall include, but not be limited

23 to, an income statement, balance sheet, profit and loss

24 statement, statement of cash flow, wholesale cost and

25 sales, and any other documentation requested by the

26 Department in writing. The financial statement shall

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1 include any other information the Department deems

2 necessary in order to effectively administer this Act and

3 all rules, orders, and final decisions promulgated under

4 this Act. Statements required by this Section shall be

5 filed with the Department within 60 days after the end of

6 the calendar year. The compilation report shall include a

7 letter authored by a licensed certified public accountant

8 that it has been reviewed and is accurate based on the

9 information provided. The dispensing organization,

10 financial statement, and accompanying documents are not

11 required to be audited unless specifically requested by the

12 Department.

13 (e) A dispensing organization shall:

14 (1) Maintain the documentation required in this

15 Section in a secure locked location at the dispensing

16 organization for 5 years from the date on the document;

17 (2) Provide any documentation required to be

18 maintained in this Section to the Department for review

19 upon request; and

20 (3) If maintaining a bank account, retain for a period

21 of 5 years a record of each deposit or withdrawal from the

22 account.

23 (f) If a dispensing organization chooses to have a return

24 policy for cannabis and cannabis products, the dispensing

25 organization shall seek prior approval from the Department.

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1 Section 15-80. Storage requirements.

2 (a) Authorized on-premises storage. A dispensing

3 organization must store inventory on its premises. All

4 inventory stored on the premises must be secured in a

5 restricted access area and tracked consistently with the

6 inventory tracking rules.

7 (b) A dispensary shall be of suitable size and construction

8 to facilitate cleaning, maintenance, and proper operations.

9 (c) A dispensary shall maintain adequate lighting,

10 ventilation, temperature, humidity control, and equipment.

11 (d) Containers storing cannabis that have been tampered

12 with, damaged, or opened shall be labeled with the date opened

13 and quarantined from other cannabis products in the vault until

14 they are disposed.

15 (e) Cannabis that was tampered with, expired, or damaged

16 shall not be stored at the premises for more than 7 calendar

17 days.

18 (f) Cannabis samples shall be in a sealed container.

19 Samples shall be maintained in the restricted access area.

20 (g) The dispensary storage areas shall be maintained in

21 accordance with the security requirements in this Act and

22 rules.

23 (h) Cannabis must be stored at appropriate temperatures and

24 under appropriate conditions to help ensure that its packaging,

25 strength, quality, and purity are not adversely affected.

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1 Section 15-85. Dispensing cannabis.

2 (a) Before a dispensing organization agent dispenses

3 cannabis to a purchaser, the agent shall:

4 (1) Verify the age of the purchaser by checking a

5 government-issued identification card by use of an

6 electronic reader or electronic scanning device to scan a

7 purchaser's government-issued identification, if

8 applicable, to determine the purchaser's age and the

9 validity of the identification;

10 (2) Verify the validity of the government-issued

11 identification card;

12 (3) Offer any appropriate purchaser education or

13 support materials;

14 (4) Enter the following information into the State's

15 cannabis electronic verification system:

16 (i) The dispensing organization agent's

17 identification number;

18 (ii) The dispensing organization's identification

19 number;

20 (iii) The amount, type (including strain, if

21 applicable) of cannabis or cannabis-infused product

22 dispensed;

23 (iv) The date and time the cannabis was dispensed.

24 (b) A dispensing organization shall refuse to sell cannabis

25 or cannabis-infused products to any person unless the person

26 produces a valid identification showing that the person is 21

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1 years of age or older. A medical cannabis dispensing

2 organization may sell cannabis or cannabis-infused products to

3 a person who is under 21 years of age if the sale complies with

4 the provisions of the Compassionate Use of Medical Cannabis

5 Pilot Program Act and rules.

6 (c) For the purposes of this Section, valid identification

7 must:

8 (1) Be valid and unexpired;

9 (2) Contain a photograph and the date of birth of the

10 person.

11 Section 15-90. Destruction and disposal of cannabis.

12 (a) Cannabis and cannabis-infused products must be

13 destroyed by rendering them unusable using methods approved by

14 the Department that comply with this Act and rules.

15 (b) Cannabis waste rendered unusable must be promptly

16 disposed according to this Act and rules. Disposal of the

17 cannabis waste rendered unusable may be delivered to a

18 permitted solid waste facility for final disposition.

19 Acceptable permitted solid waste facilities include, but are

20 not limited to:

21 (1) Compostable mixed waste: Compost, anaerobic

22 digester, or other facility with approval of the

23 jurisdictional health department.

24 (2) Noncompostable mixed waste: Landfill, incinerator,

25 or other facility with approval of the jurisdictional

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1 health department.

2 (c) All waste and unusable product shall be weighed,

3 recorded, and entered into the inventory system before

4 rendering it unusable. All waste and unusable cannabis

5 concentrates and cannabis-infused products shall be recorded

6 and entered into the inventory system before rendering it

7 unusable. Verification of this event shall be performed by an

8 agent-in-charge and conducted in an area with video

9 surveillance.

10 (d) Electronic documentation of destruction and disposal

11 shall be maintained for a period of at least 5 years.

12 Section 15-95. Agent-in-charge.

13 (a) Every dispensing organization shall designate, at a

14 minimum, one agent-in-charge for each licensed dispensary. The

15 designated agent-in-charge must hold a dispensing organization

16 agent identification card. Maintaining an agent-in-charge is a

17 continuing requirement for the license, except as provided in

18 subsection (f).

19 (b) The agent-in-charge shall be a principal officer or a

20 full-time agent of the dispensing organization and shall manage

21 the dispensary. Managing the dispensary includes, but is not

22 limited to, responsibility for opening and closing the

23 dispensary, delivery acceptance, oversight of sales and

24 dispensing organization agents, recordkeeping, inventory,

25 dispensing organization agent training, and compliance with

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1 this Act and rules. Participation in affairs also includes the

2 responsibility for maintaining all files subject to audit or

3 inspection by the Department at the dispensary.

4 (c) The agent-in-charge is responsible for promptly

5 notifying the Department of any change of information required

6 to be reported to the Department.

7 (d) In determining whether an agent-in-charge manages the

8 dispensary, the Department may consider the responsibilities

9 identified in this Section, the number of dispensing

10 organization agents under the supervision of the

11 agent-in-charge, and the employment relationship between the

12 agent-in-charge and the dispensing organization, including the

13 existence of a contract for employment and any other relevant

14 fact or circumstance.

15 (e) The agent-in-charge is responsible for notifying the

16 Department of a change in the employment status of all

17 dispensing organization agents within 5 business days after the

18 change, including notice to the Department if the termination

19 of an agent was for diversion of product or theft of currency.

20 (f) In the event of the separation of an agent-in-charge

21 due to death, incapacity, termination, or any other reason and

22 if the dispensary does not have an active agent-in-charge, the

23 dispensing organization shall immediately contact the

24 Department and request a temporary certificate of authority

25 allowing the continuing operation. The request shall include

26 the name of an interim agent-in-charge until a replacement is

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1 identified, or shall include the name of the replacement. The

2 Department shall issue the temporary certificate of authority

3 promptly after it approves the request. If a dispensing

4 organization fails to promptly request a temporary certificate

5 of authority after the separation of the agent-in-charge, its

6 registration shall cease until the Department approves the

7 temporary certificate of authority or registers a new

8 agent-in-charge. No temporary certificate of authority shall

9 be valid for more than 90 days. The succeeding agent-in-charge

10 shall register with the Department in compliance with this

11 Article. Once the permanent succeeding agent-in-charge is

12 registered with the Department, the temporary certificate of

13 authority is void. No temporary certificate of authority shall

14 be issued for the separation of an agent-in-charge due to

15 disciplinary action by the Department related to his or her

16 conduct on behalf of the dispensing organization.

17 (g) The dispensing organization agent-in-charge

18 registration shall expire one year from the date it is issued.

19 The agent-in-charge's registration shall be renewed annually.

20 The Department shall review the dispensing organization's

21 compliance history when determining whether to grant the

22 request to renew.

23 (h) Upon termination of an agent-in-charge's employment,

24 the dispensing organization shall immediately reclaim the

25 dispensing agent identification card. The dispensing

26 organization shall promptly return the identification card to

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1 the Department.

2 (i) The Department may deny an application or renewal or

3 discipline or revoke an agent-in-charge identification card

4 for any of the following reasons:

5 (1) Submission of misleading, incorrect, false, or

6 fraudulent information in the application or renewal

7 application;

8 (2) Violation of the requirements of this Act or rules;

9 (3) Fraudulent use of the agent-in-charge

10 identification card;

11 (4) Selling, distributing, transferring in any manner,

12 or giving cannabis to any unauthorized person;

13 (5) Theft of cannabis, currency, or any other items

14 from a dispensary.

15 (6) Tampering with, falsifying, altering, modifying,

16 or duplicating an agent-in-charge identification card;

17 (7) Tampering with, falsifying, altering, or modifying

18 the surveillance video footage, point-of-sale system, or

19 the State's verification system;

20 (8) Failure to notify the Department immediately upon

21 discovery that the agent-in-charge identification card has

22 been lost, stolen, or destroyed;

23 (9) Failure to notify the Department within 5 business

24 days after a change in the information provided in the

25 application for an agent-in-charge identification card;

26 (10) Conviction of a felony offense in accordance with

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1 Sections 2105-131, 2105-135, and 2105-205 of the

2 Department of Professional Regulation Law of the Civil

3 Administrative Code of Illinois or any incident listed in

4 this Act or rules following the issuance of an

5 agent-in-charge identification card;

6 (11) Dispensing to purchasers in amounts above the

7 limits provided in this Act; or

8 (12) Delinquency in filing any required tax returns or

9 paying any amounts owed to the State of Illinois

10 Section 15-100. Security.

11 (a) A dispensing organization shall implement security

12 measures to deter and prevent entry into and theft of cannabis

13 or currency.

14 (b) A dispensing organization shall submit any changes to

15 the floor plan or security plan to the Department for

16 pre-approval. All cannabis shall be maintained and stored in a

17 restricted access area during construction.

18 (c) The dispensing organization shall implement security

19 measures to protect the premises, purchasers, and dispensing

20 organization agents including, but not limited to the

21 following:

22 (1) Establish a locked door or barrier between the

23 facility's entrance and the limited access area;

24 (2) Prevent individuals from remaining on the premises

25 if they are not engaging in activity permitted by this Act

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1 or rules;

2 (3) Develop a policy that addresses the maximum

3 capacity and purchaser flow in the waiting rooms and

4 limited access areas;

5 (4) Dispose of cannabis in accordance with this Act and

6 rules;

7 (5) During hours of operation, store and dispense all

8 cannabis from the restricted access area. During

9 operational hours, cannabis shall be stored in an enclosed

10 locked room or cabinet and accessible only to specifically

11 authorized dispensing organization agents;

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, theft,

15 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

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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 of

14 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

21 security provisions that it determines are an adequate

22 substitute for a security requirement specified in this

23 Article. Any additional protections may be considered by the

24 Department in evaluating overall security measures.

25 (e) A dispensary organization may share premises with a

26 craft grower or an infuser organization, or both, provided each

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1 licensee stores currency and cannabis or cannabis-infused

2 products in a separate secured vault to which the other

3 licensee does not have access or all licensees sharing a vault

4 share more than 50% of the same ownership.

5 (f) A dispensing organization shall provide additional

6 security as needed and in a manner appropriate for the

7 community 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 access

22 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

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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 glass

6 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 failure

11 in the surveillance system, including, but not limited

12 to, panic buttons, alarms, and video monitoring

13 system. The failure notification system shall provide

14 an alert to designated dispensing organization agents

15 within 5 minutes after the failure, either by telephone

16 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

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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 authorized

13 dispensing organization agents and service personnel that

14 have access to the surveillance equipment must be available

15 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

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1 shall incorporate continuous electronic video monitoring

2 including 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 times

15 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

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1 shall be retained for at least 90 days. Recordings shall be

2 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 image

20 format, including .jpg, .bmp, and .gif. Exported video

21 shall have the ability to be archived in a proprietary

22 format that ensures authentication of the video and

23 guarantees that no alteration of the recorded image has

24 taken place. Exported video shall also have the ability to

25 be saved in an industry standard file format that can be

26 played on a standard computer operating system. All

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1 recordings shall be erased or destroyed before disposal;

2 (9) The video surveillance system shall be operational

3 during a power outage with a 4-hour minimum battery backup;

4 (10) A video camera or cameras recording at each

5 point-of-sale location allowing for the identification of

6 the dispensing organization agent distributing the

7 cannabis and any purchaser. The camera or cameras shall

8 capture the sale, the individuals and the computer monitors

9 used for the sale;

10 (11) A failure notification system that provides an

11 audible and visual notification of any failure in the

12 electronic video monitoring system; and

13 (12) All electronic video surveillance monitoring must

14 record at least the equivalent of 8 frames per second and

15 be available as recordings to the Department and the

16 Department of State Police 24 hours a day via a secure

17 web-based portal with reverse functionality.

18 (j) The requirements contained in this Act are minimum

19 requirements for operating a dispensing organization. The

20 Department may establish additional requirements by rule.

21 Section 15-110. Recordkeeping.

22 (a) Dispensing organization records must be maintained

23 electronically for 3 years and be available for inspection by

24 the Department upon request. Required written records include,

25 but are not limited to, the following:

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1 (1) Operating procedures;

2 (2) Inventory records, policies, and procedures;

3 (3) Security records;

4 (4) Audit records;

5 (5) Staff training plans and completion documentation;

6 (6) Staffing plan; and

7 (7) Business records, including but not limited to:

8 (i) Assets and liabilities;

9 (ii) Monetary transactions;

10 (iii) Written or electronic accounts, including

11 bank statements, journals, ledgers, and supporting

12 documents, agreements, checks, invoices, receipts, and

13 vouchers; and

14 (iv) Any other financial accounts reasonably

15 related to the dispensary operations.

16 (b) Storage and transfer of records. If a dispensary closes

17 due to insolvency, revocation, bankruptcy, or for any other

18 reason, all records must be preserved at the expense of the

19 dispensing organization for at least 3 years in a form and

20 location in Illinois acceptable to the Department. The

21 dispensing organization shall keep the records longer if

22 requested by the Department. The dispensing organization shall

23 notify the Department of the location where the dispensary

24 records are stored or transferred.

25 Section 15-120. Closure of a dispensary.

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1 (a) If a dispensing organization decides not to renew its

2 license or decides to close its business, it shall promptly

3 notify the Department not less than 3 months before the

4 effective date of the closing date or as otherwise authorized

5 by the Department.

6 (b) The dispensing organization shall work with the

7 Department to develop a closure plan that addresses, at a

8 minimum, the transfer of business records, transfer of cannabis

9 products, and anything else the Department finds necessary.

10 Section 15-125. Fees. After January 1, 2022, the Department

11 may by rule modify any fee established under this Article.

12 Section 15-135. Investigations.

13 (a) Dispensing organizations are subject to random and

14 unannounced dispensary inspections and cannabis testing by the

15 Department, the Department of State Police, and local law

16 enforcement.

17 (b) The Department and its authorized representatives may

18 enter any place, including a vehicle, in which cannabis is

19 held, stored, dispensed, sold, produced, delivered,

20 transported, manufactured, or disposed of and inspect, in a

21 reasonable manner, the place and all pertinent equipment,

22 containers and labeling, and all things including records,

23 files, financial data, sales data, shipping data, pricing data,

24 personnel data, research, papers, processes, controls, and

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1 facility, and inventory any stock of cannabis and obtain

2 samples of any cannabis or cannabis-infused product, any labels

3 or containers for cannabis, or paraphernalia.

4 (c) The Department may conduct an investigation of an

5 applicant, application, dispensing organization, principal

6 officer, dispensary agent, third party vendor, or any other

7 party associated with a dispensing organization for an alleged

8 violation of this Act or rules or to determine qualifications

9 to be granted a registration by the Department.

10 (d) The Department may require an applicant or holder of

11 any license issued pursuant to this Article to produce

12 documents, records, or any other material pertinent to the

13 investigation of an application or alleged violations of this

14 Act or rules. Failure to provide the required material may be

15 grounds for denial or discipline.

16 (e) Every person charged with preparation, obtaining, or

17 keeping records, logs, reports, or other documents in

18 connection with this Act and rules and every person in charge,

19 or having custody, of those documents shall, upon request by

20 the Department, make the documents immediately available for

21 inspection and copying by the Department, the Department's

22 authorized representative, or others authorized by law to

23 review the documents.

24 Section 15-140. Citations. The Department may issue

25 nondisciplinary citations for minor violations. Any such

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1 citation issued by the Department may be accompanied by a fee.

2 The fee shall not exceed $20,000 per violation. The citation

3 shall be issued to the licensee and shall contain the

4 licensee's name and address, the licensee's license number, a

5 brief factual statement, the Sections of the law allegedly

6 violated, and the fee, if any, imposed. The citation must

7 clearly state that the licensee may choose, in lieu of

8 accepting the citation, to request a hearing. If the licensee

9 does not dispute the matter in the citation with the Department

10 within 30 days after the citation is served, then the citation

11 shall become final and not subject to appeal. The penalty shall

12 be a fee or other conditions as established by rule.

13 Section 15-145. Grounds for discipline.

14 (a) The Department may deny issuance, refuse to renew or

15 restore, or may reprimand, place on probation, suspend, revoke,

16 or take other disciplinary or nondisciplinary action against

17 any license or agent identification card or may impose a fine

18 for any of the following:

19 (1) Material misstatement in furnishing information to

20 the Department;

21 (2) Violations of this Act or rules;

22 (3) Obtaining an authorization or license by fraud or

23 misrepresentation;

24 (4) A pattern of conduct that demonstrates

25 incompetence or that the applicant has engaged in conduct

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1 or actions that would constitute grounds for discipline

2 under the Act;

3 (5) Aiding or assisting another person in violating any

4 provision of this Act or rules;

5 (6) Failing to respond to a written request for

6 information by the Department within 30 days;

7 (7) Engaging in unprofessional, dishonorable, or

8 unethical conduct of a character likely to deceive,

9 defraud, or harm the public;

10 (8) Adverse action by another United States

11 jurisdiction or foreign nation;

12 (9) A finding by the Department that the licensee,

13 after having his or her license placed on suspended or

14 probationary status, has violated the terms of the

15 suspension or probation;

16 (10) Conviction, entry of a plea of guilty, nolo

17 contendere, or the equivalent in a State or federal court

18 of a principal officer or agent-in-charge of a felony

19 offense in accordance with Sections 2105-131, 2105-135,

20 and 2105-205 of the Department of Professional Regulation

21 Law of the Civil Administrative Code of Illinois;

22 (11) Excessive use or addiction to alcohol, narcotics,

23 stimulants, or any other chemical agent or drug;

24 (12) A finding by the Department of a discrepancy in a

25 Department audit of cannabis;

26 (13) A finding by the Department of a discrepancy in a

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1 Department audit of capital or funds;

2 (14) A finding by the Department of acceptance of

3 cannabis from a source other than an Adult Use Cultivation

4 Center, craft grower, infuser, or transporting

5 organization licensed by the Department of Agriculture, or

6 a dispensing organization licensed by the Department;

7 (15) An inability to operate using reasonable

8 judgment, skill, or safety due to physical or mental

9 illness or other impairment or disability, including,

10 without limitation, deterioration through the aging

11 process or loss of motor skills or mental incompetence;

12 (16) Failing to report to the Department within the

13 time frames established, or if not identified, 14 days, of

14 any adverse action taken against the dispensing

15 organization or an agent by a licensing jurisdiction in any

16 state or any territory of the United States or any foreign

17 jurisdiction, any governmental agency, any law enforcement

18 agency or any court defined in this Section;

19 (17) Any violation of the dispensing organization's

20 policies and procedures submitted to the Department

21 annually as a condition for licensure;

22 (18) Failure to inform the Department of any change of

23 address within 10 business days;

24 (19) Disclosing customer names, personal information,

25 or protected health information in violation of any State

26 or federal law;

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1 (20) Operating a dispensary before obtaining a license

2 from the Department;

3 (21) Performing duties authorized by this Act prior to

4 receiving a license to perform such duties;

5 (22) Dispensing cannabis when prohibited by this Act or

6 rules;

7 (23) Any fact or condition that, if it had existed at

8 the time of the original application for the license, would

9 have warranted the denial of the license;

10 (24) Permitting a person without a valid agent

11 identification card to perform licensed activities under

12 this Act;

13 (25) Failure to assign an agent-in-charge as required

14 by this Article;

15 (26) Failure to provide the training required by

16 paragraph (3) of subsection (i) of Section 15-40 within the

17 provided timeframe

18 (27) Personnel insufficient in number or unqualified

19 in training or experience to properly operate the

20 dispensary business;

21 (28) Any pattern of activity that causes a harmful

22 impact on the community; and

23 (29) Failing to prevent diversion, theft, or loss of

24 cannabis.

25 (b) All fines and fees imposed under this Section shall be

26 paid within 60 days after the effective date of the order

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1 imposing the fine or as otherwise specified in the order.

2 (c) A circuit court order establishing that an

3 agent-in-charge or principal officer holding an agent

4 identification card is subject to involuntary admission as that

5 term is defined in Section 1-119 or 1-119.1 of the Mental

6 Health and Developmental Disabilities Code shall operate as a

7 suspension of that card.

8 Section 15-150. Temporary suspension.

9 (a) The Secretary of Financial and Professional Regulation

10 may temporarily suspend a dispensing organization license or an

11 agent registration without a hearing if the Secretary finds

12 that public safety or welfare requires emergency action. The

13 Secretary shall cause the temporary suspension by issuing a

14 suspension notice in connection with the institution of

15 proceedings for a hearing.

16 (b) If the Secretary temporarily suspends a license or

17 agent registration without a hearing, the licensee or agent is

18 entitled to a hearing within 45 days after the suspension

19 notice has been issued. The hearing shall be limited to the

20 issues cited in the suspension notice, unless all parties agree

21 otherwise.

22 (c) If the Department does not hold a hearing with 45 days

23 after the date the suspension notice was issued, then the

24 suspended license or registration shall be automatically

25 reinstated and the suspension vacated.

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1 (d) The suspended licensee or agent may seek a continuance

2 of the hearing date, during which time the suspension remains

3 in effect and the license or registration shall not be

4 automatically reinstated.

5 (e) Subsequently discovered causes of action by the

6 Department after the issuance of the suspension notice may be

7 filed as a separate notice of violation. The Department is not

8 precluded from filing a separate action against the suspended

9 licensee or agent.

10 Section 15-155. Consent to administrative supervision

11 order. In appropriate cases, the Department may resolve a

12 complaint against a licensee or agent through the issuance of a

13 consent order for administrative supervision. A license or

14 agent subject to a consent order shall be considered by the

15 Department to hold a license or registration in good standing.

16 Section 15-160. Notice; hearing.

17 (a) The Department shall, before disciplining an applicant

18 or licensee, at least 30 days before the date set for the

19 hearing: (i) notify the accused in writing of the charges made

20 and the time and place for the hearing on the charges; (ii)

21 direct him or her to file a written answer to the charges under

22 oath within 20 days after service; and (iii) inform the

23 applicant or licensee that failure to answer will result in a

24 default being entered against the applicant or licensee.

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1 (b) At the time and place fixed in the notice, the hearing

2 officer appointed by the Secretary shall proceed to hear the

3 charges, and the parties or their counsel shall be accorded

4 ample opportunity to present any pertinent statements,

5 testimony, evidence, and arguments. The hearing officer may

6 continue the hearing from time to time. In case the person,

7 after receiving the notice, fails to file an answer, his or her

8 license may, in the discretion of the Secretary, having first

9 received the recommendation of the hearing officer, be

10 suspended, revoked, or placed on probationary status, or be

11 subject to whatever disciplinary action the Secretary

12 considers proper, including a fine, without hearing, if that

13 act or acts charged constitute sufficient grounds for that

14 action under this Act.

15 (c) The written notice and any notice in the subsequent

16 proceeding may be served by regular mail or email to the

17 licensee's or applicant's address of record.

18 Section 15-165. Subpoenas; oaths. The Department shall

19 have the power to subpoena and bring before it any person and

20 to take testimony either orally or by deposition, or both, with

21 the same fees and mileage and in the same manner as prescribed

22 by law in judicial proceedings in civil cases in courts in this

23 State. The Secretary or the hearing officer shall each have the

24 power to administer oaths to witnesses at any hearings that the

25 Department is authorized to conduct.

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1 Section 15-170. Hearing; motion for rehearing.

2 (a) The hearing officer shall hear evidence in support of

3 the formal charges and evidence produced by the licensee. At

4 the conclusion of the hearing, the hearing officer shall

5 present to the Secretary a written report of his or her

6 findings of fact, conclusions of law, and recommendations.

7 (b) At the conclusion of the hearing, a copy of the hearing

8 officer's report shall be served upon the applicant or licensee

9 by the Department, either personally or as provided in this Act

10 for the service of a notice of hearing. Within 20 calendar days

11 after service, the applicant or licensee may present to the

12 Department a motion in writing for rehearing, which shall

13 specify the particular grounds for rehearing. The Department

14 may respond to the motion for rehearing within 20 calendar days

15 after its service on the Department. If no motion for rehearing

16 is filed, then, upon the expiration of the time specified for

17 filing such motion or upon denial of a motion for rehearing,

18 the Secretary may enter an order in accordance with the

19 recommendation of the hearing officer. If the applicant or

20 licensee orders from the reporting service and pays for a

21 transcript of the record within the time for filing a motion

22 for rehearing, the 20-day period within which a motion may be

23 filed shall commence upon the delivery of the transcript to the

24 applicant or licensee.

25 (c) If the Secretary disagrees in any regard with the

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1 report of the hearing officer, the Secretary may issue an order

2 contrary to the report.

3 (d) Whenever the Secretary is not satisfied that

4 substantial justice has been done, the Secretary may order a

5 rehearing by the same or another hearing officer.

6 (e) At any point in any investigation or disciplinary

7 proceeding under in this Article, both parties may agree to a

8 negotiated consent order. The consent order shall be final upon

9 signature of the Secretary.

10 Section 15-175. Review under the Administrative Review

11 Law.

12 (a) All final administrative decisions of the Department

13 hereunder shall be subject to judicial review under the

14 provisions of the Administrative Review Law, and all amendment

15 and modifications thereof. The term "administrative decision"

16 is defined as in Section 3-101 of the Code of Civil Procedure.

17 (b) Proceedings for judicial review shall be commenced in

18 the circuit court of the county in which the party applying for

19 review resides, but if the party is not a resident of Illinois,

20 the venue shall be in Sangamon County.

21 (c) The Department shall not be required to certify any

22 record to the court, file any answer in court, or otherwise

23 appear in any court in a judicial review proceeding, unless and

24 until the Department has received from the plaintiff payment of

25 the costs of furnishing and certifying the record, which costs

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1 shall be determined by the Department. Failure on the part of

2 the plaintiff to file a receipt in court shall be grounds for

3 dismissal of the action.

4 ARTICLE 20.

5 ADULT USE CULTIVATION CENTERS

6 Section 20-1. Definition. In this Article, "Department"

7 means the Department of Agriculture.

8 Section 20-5. Issuance of licenses. On or after July 1,

9 2021, the Department of Agriculture by rule may:

10 (1) Modify or change the number of cultivation center

11 licenses available, which shall at no time exceed 30

12 cultivation center licenses. In determining whether to

13 exercise the authority granted by this subsection, the

14 Department of Agriculture must consider the following

15 factors:

16 (A) The percentage of cannabis sales occurring in

17 Illinois not in the regulated market using data from

18 the Substance Abuse and Mental Health Services

19 Administration, National Survey on Drug Use and

20 Health, Illinois Behavioral Risk Factor Surveillance

21 System, and tourism data from the Illinois Office of

22 Tourism to ascertain total cannabis consumption in

23 Illinois compared to the amount of sales in licensed

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1 dispensing organizations;

2 (B) Whether there is an adequate supply of cannabis

3 and cannabis-infused products to serve registered

4 medical cannabis patients;

5 (C) Whether there is an adequate supply of cannabis

6 and cannabis-infused products to serve purchasers;

7 (D) Whether there is an oversupply of cannabis in

8 Illinois leading to trafficking of cannabis to any

9 other state;

10 (E) Population increases or shifts;

11 (F) Changes to federal law;

12 (G) Perceived security risks of increasing the

13 number or location of cultivation centers;

14 (H) The past security records of cultivation

15 centers;

16 (I) The Department of Agriculture's capacity to

17 appropriately regulate additional licensees;

18 (J) The findings and recommendations from the

19 disparity and availability study commissioned by the

20 Illinois Cannabis Regulation Oversight Officer

21 referenced in subsection (e) of Section 5-45 to reduce

22 or eliminate any identified barriers to entry in the

23 cannabis industry; and

24 (K) Any other criteria the Department of

25 Agriculture deems relevant.

26 (2) Modify or change the licensing application process

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1 to reduce or eliminate the barriers identified in the

2 disparity and availability study commission by the

3 Illinois Cannabis Regulation Oversight Officer and shall

4 make modifications to remedy evidence of discrimination.

5 Section 20-10. Early Approval of Adult Use Cultivation

6 Center License.

7 (a) Any medical cannabis cultivation center registered and

8 in good standing under the Compassionate Use of Medical

9 Cannabis Pilot Program Act as of the effective date of this Act

10 may, within 60 days of the effective date of this Act but no

11 later than 180 days from the effective date of this Act, apply

12 to the Department of Agriculture for an Early Approval Adult

13 Use Cultivation Center License to produce cannabis and

14 cannabis-infused products at its existing facilities as of the

15 effective date of this Act.

16 (b) A medical cannabis cultivation center seeking issuance

17 of an Early Approval Adult Use Cultivation Center License shall

18 submit an application on forms provided by the Department of

19 Agriculture. The application must meet or include the following

20 qualifications:

21 (1) Payment of a nonrefundable application fee of

22 $100,000 to be deposited into the Cannabis Regulation Fund;

23 (2) Proof of registration as a medical cannabis

24 cultivation center that is in good standing;

25 (3) Submission of the application by the same person or

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1 entity that holds the medical cannabis cultivation center

2 registration;

3 (4) Certification that the applicant will comply with

4 the requirements of Section 20-30;

5 (5) The legal name of the cultivation center;

6 (6) The physical address of the cultivation center;

7 (7) The name, address, social security number, and date

8 of birth of each principal officer and board member of the

9 cultivation center; each of those individuals shall be at

10 least 21 years of age;

11 (8) A nonrefundable Cannabis Business Development Fee

12 equal to 5% of the cultivation center's total sales between

13 June 1, 2018 to June 1, 2019 or $750,000, whichever is

14 less, but at not less than $250,000, to be deposited into

15 the Cannabis Business Development Fund; and

16 (9) A commitment to completing one of the following

17 Social Equity Inclusion Plans provided for in this

18 subsection (b) before the expiration of the Early Approval

19 Adult Use Cultivation Center License:

20 (A) A contribution of 5% of the cultivation

21 center's total sales from June 1, 2018 to June 1, 2019,

22 or $100,000, whichever is less, to one of the

23 following:

24 (i) the Cannabis Business Development Fund.

25 This is in addition to the fee required by item (8)

26 of this subsection (b);

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1 (ii) a cannabis industry training or education

2 program at an Illinois community college as

3 defined in the Public Community College Act;

4 (iii) a program that provides job training

5 services to persons recently incarcerated or that

6 operates in a Disproportionately Impacted Area.

7 (B) Participate as a host in a cannabis business

8 incubator program for at least one year approved by the

9 Department of Commerce and Economic Opportunity, and

10 in which an Early Approval Adult Use Cultivation Center

11 License holder agrees to provide a loan of at least

12 $100,000 and mentorship to incubate a licensee that

13 qualifies as a Social Equity Applicant. As used in this

14 Section, "incubate" means providing direct financial

15 assistance and training necessary to engage in

16 licensed cannabis industry activity similar to that of

17 the host licensee. The Early Approval Adult Use

18 Cultivation Center License holder or the same entity

19 holding any other licenses issued pursuant to this Act

20 shall not take an ownership stake of greater than 10%

21 in any business receiving incubation services to

22 comply with this subsection. If an Early Approval Adult

23 Use Cultivation Center License holder fails to find a

24 business to incubate to comply with this subsection

25 before its Early Approval Adult Use Cultivation Center

26 License expires, it may opt to meet the requirement of

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1 this subsection by completing another item from this

2 subsection prior to the expiration of its Early

3 Approval Adult Use Cultivation Center License to avoid

4 a penalty.

5 (c) An Early Approval Adult Use Cultivation Center License

6 is valid until March 31, 2021. A cultivation center that

7 obtains an Early Approval Adult Use Cultivation Center License

8 shall receive written or electronic notice 90 days before the

9 expiration of the license that the license will expire, and

10 inform the license holder that it may renew its Early Approval

11 Adult Use Cultivation Center License. The Department of

12 Agriculture shall grant a renewal of an Early Approval Adult

13 Use Cultivation Center License within 60 days of submission of

14 an application if:

15 (1) the cultivation center submits an application and

16 the required renewal fee of $100,000 for an Early Approval

17 Adult Use Cultivation Center License;

18 (2) the Department of Agriculture has not suspended the

19 license of the cultivation center or suspended or revoked

20 the license for violating this Act or rules adopted under

21 this Act; and

22 (3) the cultivation center has completed a Social

23 Equity Inclusion Plan as required by item (9) of subsection

24 (b) of this Section.

25 (c-5) The Early Approval Adult Use Cultivation Center

26 License renewed pursuant to subsection (c) of this Section

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1 shall expire March 31, 2022. The Early Approval Adult Use

2 Cultivation Center Licensee shall receive written or

3 electronic notice 90 days before the expiration of the license

4 that the license will expire, and inform the license holder

5 that it may apply for an Adult Use Cultivation Center License.

6 The Department of Agriculture shall grant an Adult Use

7 Dispensing Organization License within 60 days of an

8 application being deemed complete if the applicant meets all of

9 the criteria in Section 20-21.

10 (d) The license fee required by paragraph (1) of subsection

11 (c) of this Section shall be in addition to any license fee

12 required for the renewal of a registered medical cannabis

13 cultivation center license that expires during the effective

14 period of the Early Approval Adult Use Cultivation Center

15 License.

16 (e) Applicants must submit all required information,

17 including the requirements in subsection (b) of this Section,

18 to the Department of Agriculture. Failure by an applicant to

19 submit all required information may result in the application

20 being disqualified.

21 (f) If the Department of Agriculture receives an

22 application with missing information, the Department may issue

23 a deficiency notice to the applicant. The applicant shall have

24 10 calendar days from the date of the deficiency notice to

25 submit complete information. Applications that are still

26 incomplete after this opportunity to cure may be disqualified.

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1 (g) If an applicant meets all the requirements of

2 subsection (b) of this Section, the Department of Agriculture

3 shall issue the Early Approval Adult Use Cultivation Center

4 License within 14 days of receiving the application unless:

5 (1) The licensee; principal officer, board member, or

6 person having a financial or voting interest of 5% or

7 greater in the licensee; or agent is delinquent in filing

8 any required tax returns or paying any amounts owed to the

9 State of Illinois;

10 (2) The Director of Agriculture determines there is

11 reason, based on an inordinate number of documented

12 compliance violations, the licensee is not entitled to an

13 Early Approval Adult Use Cultivation Center License; or

14 (3) The licensee fails to commit to the Social Equity

15 Inclusion Plan.

16 (h) A cultivation center may begin producing cannabis and

17 cannabis-infused products once the Early Approval Adult Use

18 Cultivation Center License is approved. A cultivation center

19 that obtains an Early Approval Adult Use Cultivation Center

20 License may begin selling cannabis and cannabis-infused

21 products on December 1, 2019.

22 (i) An Early Approval Adult Use Cultivation Center License

23 holder must continue to produce and provide an adequate supply

24 of cannabis and cannabis-infused products for purchase by

25 qualifying patients and caregivers. For the purposes of this

26 subsection, "adequate supply" means a monthly production level

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1 that is comparable in type and quantity to those medical

2 cannabis products produced for patients and caregivers on an

3 average monthly basis for the 6 months before the effective

4 date of this Act.

5 (j) If there is a shortage of cannabis or cannabis-infused

6 products, a license holder shall prioritize patients

7 registered under the Compassionate Use of Medical Cannabis

8 Pilot Program Act over adult use purchasers.

9 (k) If an Early Approval Adult Use Cultivation Center

10 licensee fails to submit an application for an Adult Use

11 Cultivation Center License before the expiration of the Early

12 Approval Adult Use Cultivation Center License pursuant to

13 subsection (c-5) of this Section, the cultivation center shall

14 cease adult use cultivation until it receives an Adult Use

15 Cultivation Center License.

16 (l) A cultivation center agent who holds a valid

17 cultivation center agent identification card issued under the

18 Compassionate Use of Medical Cannabis Pilot Program Act and is

19 an officer, director, manager, or employee of the cultivation

20 center licensed under this Section may engage in all activities

21 authorized by this Article to be performed by a cultivation

22 center agent.

23 (m) If the Department of Agriculture suspends or revokes

24 the Early Approval Adult Use Cultivation Center License of a

25 cultivation center that also holds a medical cannabis

26 cultivation center license issued under the Compassionate Use

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1 of Medical Cannabis Pilot Program Act, the Department of

2 Agriculture may suspend or revoke the medical cannabis

3 cultivation center license concurrently with the Early

4 Approval Adult Use Cultivation Center License.

5 (n) All fees or fines collected from an Early Approval

6 Adult Use Cultivation Center License holder as a result of a

7 disciplinary action in the enforcement of this Act shall be

8 deposited into the Cannabis Regulation Fund.

9 Section 20-15. Conditional Adult Use Cultivation Center

10 application.

11 (a) If the Department of Agriculture makes available

12 additional cultivation center licenses pursuant to Section

13 20-5, applicants for a Conditional Adult Use Cultivation Center

14 License shall electronically submit the following in such form

15 as the Department of Agriculture may direct:

16 (1) the nonrefundable application fee set by rule by

17 the Department of Agriculture, to be deposited into the

18 Cannabis Regulation Fund;

19 (2) the legal name of the cultivation center;

20 (3) the proposed physical address of the cultivation

21 center;

22 (4) the name, address, social security number, and date

23 of birth of each principal officer and board member of the

24 cultivation center; each principal officer and board

25 member shall be at least 21 years of age;

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1 (5) the details of any administrative or judicial

2 proceeding in which any of the principal officers or board

3 members of the cultivation center (i) pled guilty, were

4 convicted, fined, or had a registration or license

5 suspended or revoked, or (ii) managed or served on the

6 board of a business or non-profit organization that pled

7 guilty, was convicted, fined, or had a registration or

8 license suspended or revoked;

9 (6) proposed operating bylaws that include procedures

10 for the oversight of the cultivation center, including the

11 development and implementation of a plant monitoring

12 system, accurate recordkeeping, staffing plan, and

13 security plan approved by the Department of State Police

14 that are in accordance with the rules issued by the

15 Department of Agriculture under this Act. A physical

16 inventory shall be performed of all plants and cannabis on

17 a weekly basis by the cultivation center;

18 (7) verification from the Department of State Police

19 that all background checks of the prospective principal

20 officers, board members, and agents of the cannabis

21 business establishment have been conducted;

22 (8) a copy of the current local zoning ordinance or

23 permit and verification that the proposed cultivation

24 center is in compliance with the local zoning rules and

25 distance limitations established by the local

26 jurisdiction;

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1 (9) proposed employment practices, in which the

2 applicant must demonstrate a plan of action to inform,

3 hire, and educate minorities, women, veterans, and persons

4 with disabilities, engage in fair labor practices, and

5 provide worker protections;

6 (10) whether an applicant can demonstrate experience

7 in or business practices that promote economic empowerment

8 in Disproportionately Impacted Areas;

9 (11) experience with the cultivation of agricultural

10 or horticultural products, operating an agriculturally

11 related business, or operating a horticultural business;

12 (12) a description of the enclosed, locked facility

13 where cannabis will be grown, harvested, manufactured,

14 processed, packaged, or otherwise prepared for

15 distribution to a dispensing organization;

16 (13) a survey of the enclosed, locked facility,

17 including the space used for cultivation;

18 (14) cultivation, processing, inventory, and packaging

19 plans;

20 (15) a description of the applicant's experience with

21 agricultural cultivation techniques and industry

22 standards;

23 (16) a list of any academic degrees, certifications, or

24 relevant experience of all prospective principal officers,

25 board members, and agents of the related business;

26 (17) the identity of every person having a financial or

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1 voting interest of 5% or greater in the cultivation center

2 operation with respect to which the license is sought,

3 whether a trust, corporation, partnership, limited

4 liability company, or sole proprietorship, including the

5 name and address of each person;

6 (18) a plan describing how the cultivation center will

7 address each of the following:

8 (i) energy needs, including estimates of monthly

9 electricity and gas usage, to what extent it will

10 procure energy from a local utility or from on-site

11 generation, and if it has or will adopt a sustainable

12 energy use and energy conservation policy;

13 (ii) water needs, including estimated water draw

14 and if it has or will adopt a sustainable water use and

15 water conservation policy; and

16 (iii) waste management, including if it has or will

17 adopt a waste reduction policy;

18 (19) a diversity plan that includes a narrative of not

19 more than 2,500 words that establishes a goal of diversity

20 in ownership, management, employment, and contracting to

21 ensure that diverse participants and groups are afforded

22 equality of opportunity;

23 (20) any other information required by rule;

24 (21) a recycling plan:

25 (A) Purchaser packaging, including cartridges,

26 shall be accepted by the applicant and recycled.

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1 (B) Any recyclable waste generated by the cannabis

2 cultivation facility shall be recycled per applicable

3 State and local laws, ordinances, and rules.

4 (C) Any cannabis waste, liquid waste, or hazardous

5 waste shall be disposed of in accordance with 8 Ill.

6 Adm. Code 1000.460, except, to the greatest extent

7 feasible, all cannabis plant waste will be rendered

8 unusable by grinding and incorporating the cannabis

9 plant waste with compostable mixed waste to be disposed

10 of in accordance with 8 Ill Adm. Code 1000.460(g)(1);

11 (22) commitment to comply with local waste provisions:

12 a cultivation facility must remain in compliance with

13 applicable State and federal environmental requirements,

14 including, but not limited to:

15 (A) storing, securing, and managing all

16 recyclables and waste, including organic waste

17 composed of or containing finished cannabis and

18 cannabis products, in accordance with applicable State

19 and local laws, ordinances, and rules; and

20 (B) Disposing liquid waste containing cannabis or

21 byproducts of cannabis processing in compliance with

22 all applicable State and federal requirements,

23 including, but not limited to, the cannabis

24 cultivation facility's permits under Title X of the

25 Environmental Protection Act; and

26 (23) a commitment to a technology standard for resource

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1 efficiency of the cultivation center facility.

2 (A) A cannabis cultivation facility commits to use

3 resources efficiently, including energy and water. For

4 the following, a cannabis cultivation facility commits

5 to meet or exceed the technology standard identified in

6 items (i), (ii), (iii), and (iv), which may be modified

7 by rule:

8 (i) lighting systems, including light bulbs;

9 (ii) HVAC system;

10 (iii) water application system to the crop;

11 and

12 (iv) filtration system for removing

13 contaminants from wastewater.

14 (B) Lighting. The Lighting Power Densities (LPD)

15 for cultivation space commits to not exceed an average

16 of 36 watts per gross square foot of active and growing

17 space canopy, or all installed lighting technology

18 shall meet a photosynthetic photon efficacy (PPE) of no

19 less than 2.2 micromoles per joule fixture and shall be

20 featured on the DesignLights Consortium (DLC)

21 Horticultural Specification Qualified Products List

22 (QPL). In the event that DLC requirement for minimum

23 efficacy exceeds 2.2 micromoles per joule fixture,

24 that PPE shall become the new standard.

25 (C) HVAC.

26 (i) For cannabis grow operations with less

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1 than 6,000 square feet of canopy, the licensee

2 commits that all HVAC units will be

3 high-efficiency ductless split HVAC units, or

4 other more energy efficient equipment.

5 (ii) For cannabis grow operations with 6,000

6 square feet of canopy or more, the licensee commits

7 that all HVAC units will be variable refrigerant

8 flow HVAC units, or other more energy efficient

9 equipment.

10 (D) Water application.

11 (i) The cannabis cultivation facility commits

12 to use automated watering systems, including, but

13 not limited to, drip irrigation and flood tables,

14 to irrigate cannabis crop.

15 (ii) The cannabis cultivation facility commits

16 to measure runoff from watering events and report

17 this volume in its water usage plan, and that on

18 average, watering events shall have no more than

19 20% of runoff of water.

20 (E) Filtration. The cultivator commits that HVAC

21 condensate, dehumidification water, excess runoff, and

22 other wastewater produced by the cannabis cultivation

23 facility shall be captured and filtered to the best of

24 the facility's ability to achieve the quality needed to

25 be reused in subsequent watering rounds.

26 (F) Reporting energy use and efficiency as

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1 required by rule.

2 (b) Applicants must submit all required information,

3 including the information required in Section 20-10, to the

4 Department of Agriculture. Failure by an applicant to submit

5 all required information may result in the application being

6 disqualified.

7 (c) If the Department of Agriculture receives an

8 application with missing information, the Department of

9 Agriculture may issue a deficiency notice to the applicant. The

10 applicant shall have 10 calendar days from the date of the

11 deficiency notice to resubmit the incomplete information.

12 Applications that are still incomplete after this opportunity

13 to cure will not be scored and will be disqualified.

14 (e) A cultivation center that is awarded a Conditional

15 Adult Use Cultivation Center License pursuant to the criteria

16 in Section 20-20 shall not grow, purchase, possess, or sell

17 cannabis or cannabis-infused products until the person has

18 received an Adult Use Cultivation Center License issued by the

19 Department of Agriculture pursuant to Section 20-21 of this

20 Act.

21 Section 20-20. Conditional Adult Use License scoring

22 applications.

23 (a) The Department of Agriculture shall by rule develop a

24 system to score cultivation center applications to

25 administratively rank applications based on the clarity,

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1 organization, and quality of the applicant's responses to

2 required information. Applicants shall be awarded points based

3 on the following categories:

4 (1) Suitability of the proposed facility;

5 (2) Suitability of employee training plan;

6 (3) Security and recordkeeping;

7 (4) Cultivation plan;

8 (5) Product safety and labeling plan;

9 (6) Business plan;

10 (7) The applicant's status as a Social Equity

11 Applicant, which shall constitute no less than 20% of total

12 available points;

13 (8) Labor and employment practices, which shall

14 constitute no less than 2% of total available points;

15 (9) Environmental plan as described in paragraphs

16 (18), (21), (22), and (23) of subsection (a) of Section

17 20-15;

18 (10) The applicant is 51% or more owned and controlled

19 by an individual or individuals who have been an Illinois

20 resident for the past 5 years as proved by tax records;

21 (11) The applicant is 51% or more controlled and owned

22 by an individual or individuals who meet the qualifications

23 of a veteran as defined by Section 45-57 of the Illinois

24 Procurement Code;

25 (12) a diversity plan that includes a narrative of not

26 more than 2,500 words that establishes a goal of diversity

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1 in ownership, management, employment, and contracting to

2 ensure that diverse participants and groups are afforded

3 equality of opportunity; and

4 (13) Any other criteria the Department of Agriculture

5 may set by rule for points.

6 (b) The Department may also award bonus points for the

7 applicant's plan to engage with the community. Bonus points

8 will only be awarded if the Department receives applications

9 that receive an equal score for a particular region.

10 (c) Should the applicant be awarded a cultivation center

11 license, the information and plans that an applicant provided

12 in its application, including any plans submitted for the

13 acquiring of bonus points, becomes a mandatory condition of the

14 permit. Any variation from or failure to perform such plans may

15 result in discipline, including the revocation or nonrenewal of

16 a license.

17 (d) Should the applicant be awarded a cultivation center

18 license, it shall pay a fee of $100,000 prior to receiving the

19 license, to be deposited into the Cannabis Regulation Fund. The

20 Department of Agriculture may by rule adjust the fee in this

21 Section after January 1, 2021.

22 Section 20-21. Adult Use Cultivation Center License.

23 (a) A person or entity is only eligible to receive an Adult

24 Use Cultivation Center License if the person or entity has

25 first been awarded a Conditional Adult Use Cultivation Center

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1 License pursuant to this Act or the person or entity has

2 renewed its Early Approval Cultivation Center License pursuant

3 to subsection (c) of Section 20-10.

4 (b) The Department of Agriculture shall not issue an Adult

5 Use Cultivation Center License until:

6 (1) the Department of Agriculture has inspected the

7 cultivation center site and proposed operations and

8 verified that they are in compliance with this Act and

9 local zoning laws;

10 (2) the Conditional Adult Use Cultivation Center

11 License holder has paid a registration fee of $100,000 or a

12 prorated amount accounting for the difference of time

13 between when the Adult Use Cultivation Center License is

14 issued and March 31 of the next even-numbered year; and

15 (3) The Conditional Adult Use Cultivation Center

16 License holder has met all the requirements in the Act and

17 rules.

18 Section 20-25. Denial of application. An application for a

19 cultivation center license must be denied if any of the

20 following conditions are met:

21 (1) the applicant failed to submit the materials

22 required by this Article;

23 (2) the applicant would not be in compliance with local

24 zoning rules;

25 (3) one or more of the prospective principal officers

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1 or board members causes a violation of Section 20-30;

2 (4) one or more of the principal officers or board

3 members is under 21 years of age;

4 (5) the person has submitted an application for a

5 permit under this Act that contains false information; or

6 (6) the licensee, principal officer, board member, or

7 person having a financial or voting interest of 5% or

8 greater in the licensee, or the agent is delinquent in

9 filing any required tax returns or paying any amounts owed

10 to the State of Illinois.

11 Section 20-30. Cultivation center requirements;

12 prohibitions.

13 (a) The operating documents of a cultivation center shall

14 include procedures for the oversight of the cultivation center

15 a cannabis plant monitoring system including a physical

16 inventory recorded weekly, accurate recordkeeping, and a

17 staffing plan.

18 (b) A cultivation center shall implement a security plan

19 reviewed by the Department of State Police that includes, but

20 is not limited to: facility access controls, perimeter

21 intrusion detection systems, personnel identification systems,

22 24-hour surveillance system to monitor the interior and

23 exterior of the cultivation center facility and accessibility

24 to authorized law enforcement, the Department of Public Health

25 where processing takes place, and the Department of Agriculture

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1 in real time.

2 (c) All cultivation of cannabis by a cultivation center

3 must take place in an enclosed, locked facility at the physical

4 address provided to the Department of Agriculture during the

5 licensing process. The cultivation center location shall only

6 be accessed by the agents working for the cultivation center,

7 the Department of Agriculture staff performing inspections,

8 the Department of Public Health staff performing inspections,

9 local and State law enforcement or other emergency personnel,

10 contractors working on jobs unrelated to cannabis, such as

11 installing or maintaining security devices or performing

12 electrical wiring, transporting organization agents as

13 provided in this Act, individuals in a mentoring or educational

14 program approved by the State, or other individuals as provided

15 by rule.

16 (d) A cultivation center may not sell or distribute any

17 cannabis or cannabis-infused products to any person other than

18 a dispensing organization, craft grower, infusing

19 organization, transporter, or as otherwise authorized by rule.

20 (e) A cultivation center may not either directly or

21 indirectly discriminate in price between different dispensing

22 organizations, craft growers, or infuser organizations that

23 are purchasing a like grade, strain, brand, and quality of

24 cannabis or cannabis-infused product. Nothing in this

25 subsection (e) prevents a cultivation centers from pricing

26 cannabis differently based on differences in the cost of

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1 manufacturing or processing, the quantities sold, such as

2 volume discounts, or the way the products are delivered.

3 (f) All cannabis harvested by a cultivation center and

4 intended for distribution to a dispensing organization must be

5 entered into a data collection system, packaged and labeled

6 under Section 55-21, and placed into a cannabis container for

7 transport. All cannabis harvested by a cultivation center and

8 intended for distribution to a craft grower or infuser

9 organization must be packaged in a labeled cannabis container

10 and entered into a data collection system before transport.

11 (g) Cultivation centers are subject to random inspections

12 by the Department of Agriculture, the Department of Public

13 Health, local safety or health inspectors, and the Department

14 of State Police.

15 (h) A cultivation center agent shall notify local law

16 enforcement, the Department of State Police, and the Department

17 of Agriculture within 24 hours of the discovery of any loss or

18 theft. Notification shall be made by phone or in person, or by

19 written or electronic communication.

20 (i) A cultivation center shall comply with all State and

21 any applicable federal rules and regulations regarding the use

22 of pesticides on cannabis plants.

23 (j) No person or entity shall hold any legal, equitable,

24 ownership, or beneficial interest, directly or indirectly, of

25 more than 3 cultivation centers licensed under this Article.

26 Further, no person or entity that is employed by, an agent of,

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1 has a contract to receive payment in any form from a

2 cultivation center, is a principal officer of a cultivation

3 center, or entity controlled by or affiliated with a principal

4 officer of a cultivation shall hold any legal, equitable,

5 ownership, or beneficial interest, directly or indirectly, in a

6 cultivation that would result in the person or entity owning or

7 controlling in combination with any cultivation center,

8 principal officer of a cultivation center, or entity controlled

9 or affiliated with a principal officer of a cultivation center

10 by which he, she, or it is employed, is an agent of, or

11 participates in the management of, more than 3 cultivation

12 center licenses.

13 (k) A cultivation center may not contain more than 210,000

14 square feet of canopy space for plants in the flowering stage

15 for cultivation of adult use cannabis as provided in this Act.

16 (l) A cultivation center may process cannabis, cannabis

17 concentrates, and cannabis-infused products.

18 (m) Beginning July 1, 2020, a cultivation center shall not

19 transport cannabis to a craft grower, dispensing organization,

20 infuser organization, or laboratory licensed under this Act,

21 unless it has obtained a transporting organization license.

22 (n) It is unlawful for any person having a cultivation

23 center license or any officer, associate, member,

24 representative, or agent of such licensee to offer or deliver

25 money, or anything else of value, directly or indirectly to any

26 person having an Early Approval Adult Use Dispensing

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1 Organization License, a Conditional Adult Use Dispensing

2 Organization License, an Adult Use Dispensing Organization

3 License, or a medical cannabis dispensing organization license

4 issued under the Compassionate Use of Medical Cannabis Pilot

5 Program Act, or to any person connected with or in any way

6 representing, or to any member of the family of, such person

7 holding an Early Approval Adult Use Dispensing Organization

8 License, a Conditional Adult Use Dispensing Organization

9 License, an Adult Use Dispensing Organization License, or a

10 medical cannabis dispensing organization license issued under

11 the Compassionate Use of Medical Cannabis Pilot Program Act, or

12 to any stockholders in any corporation engaged in the retail

13 sale of cannabis, or to any officer, manager, agent, or

14 representative of the Early Approval Adult Use Dispensing

15 Organization License, a Conditional Adult Use Dispensing

16 Organization License, an Adult Use Dispensing Organization

17 License, or a medical cannabis dispensing organization license

18 issued under the Compassionate Use of Medical Cannabis Pilot

19 Program Act to obtain preferential placement within the

20 dispensing organization, including, without limitation, on

21 shelves and in display cases where purchasers can view

22 products, or on the dispensing organization's website.

23 (o) A cultivation center must comply with any other

24 requirements or prohibitions set by administrative rule of the

25 Department of Agriculture.

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1 Section 20-35. Cultivation center agent identification

2 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 cultivation center

19 where the 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

26 electronic means.

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1 (b) An agent must keep his or her identification card

2 visible at all times when on the property of the cultivation

3 center at which the agent is employed.

4 (c) The agent identification cards shall contain the

5 following:

6 (1) the name of the cardholder;

7 (2) the date of issuance and expiration date of the

8 identification card;

9 (3) a random 10-digit alphanumeric identification

10 number containing at least 4 numbers and at least 4 letters

11 that is unique to the holder;

12 (4) a photograph of the cardholder; and

13 (5) the legal name of the cultivation center employing

14 the agent.

15 (d) An agent identification card shall be immediately

16 returned to the cultivation center of the agent upon

17 termination of his or her employment.

18 (e) Any agent identification card lost by a cultivation

19 center agent shall be reported to the Department of State

20 Police and the Department of Agriculture immediately upon

21 discovery of the loss.

22 (f) The Department of Agriculture shall not issue an agent

23 identification card if the applicant is delinquent in filing

24 any required tax returns or paying any amounts owed to the

25 State of Illinois.

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1 Section 20-40. Cultivation center background checks.

2 (a) Through the Department of State Police, the Department

3 of Agriculture shall conduct a background check of the

4 prospective principal officers, board members, and agents of a

5 cultivation center applying for a license or identification

6 card under this Act. The Department of State Police shall

7 charge a fee set by rule for conducting the criminal history

8 record check, which shall be deposited into the State Police

9 Services Fund and shall not exceed the actual cost of the

10 record check. In order to carry out this provision, each

11 cultivation center prospective principal officer, board

12 member, or agent shall submit a full set of fingerprints to the

13 Department of State Police for the purpose of obtaining a State

14 and federal criminal records check. These fingerprints shall be

15 checked against the fingerprint records now and hereafter, to

16 the extent allowed by law, filed in the Department of State

17 Police and Federal Bureau of Investigation criminal history

18 records databases. The Department of State Police shall

19 furnish, following positive identification, all conviction

20 information to the Department of Agriculture.

21 (b) When applying for the initial license or identification

22 card, the background checks for all prospective principal

23 officers, board members, and agents shall be completed before

24 submitting the application to the licensing or issuing agency.

25 Section 20-45. Renewal of cultivation center licenses and

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1 agent identification cards.

2 (a) Licenses and identification cards issued under this Act

3 shall be renewed annually. A cultivation center shall receive

4 written or electronic notice 90 days before the expiration of

5 its current license that the license will expire. The

6 Department of Agriculture shall grant a renewal within 45 days

7 of submission of a renewal application if:

8 (1) the cultivation center submits a renewal

9 application and the required nonrefundable renewal fee of

10 $100,000, or another amount as the Department of

11 Agriculture may set by rule after January 1, 2021, to be

12 deposited into the Cannabis Regulation Fund.

13 (2) the Department of Agriculture has not suspended the

14 license of the cultivation center or suspended or revoked

15 the license for violating this Act or rules adopted under

16 this Act;

17 (3) the cultivation center has continued to operate in

18 accordance with all plans submitted as part of its

19 application and approved by the Department of Agriculture

20 or any amendments thereto that have been approved by the

21 Department of Agriculture;

22 (4) the cultivation center has submitted an agent,

23 employee, contracting, and subcontracting diversity report

24 as required by the Department; and

25 (5) the cultivation center has submitted an

26 environmental impact report.

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1 (b) If a cultivation center fails to renew its license

2 before expiration, it shall cease operations until its license

3 is renewed.

4 (c) If a cultivation center agent fails to renew his or her

5 identification card before its expiration, he or she shall

6 cease to work as an agent of the cultivation center until his

7 or her identification card is renewed.

8 (d) Any cultivation center that continues to operate, or

9 any cultivation center agent who continues to work as an agent,

10 after the applicable license or identification card has expired

11 without renewal is subject to the penalties provided under

12 Section 45-5.

13 Section 20-50. Cultivator taxes; returns.

14 (a) A tax is imposed upon the privilege of cultivating and

15 processing adult use cannabis at the rate of 7% of the gross

16 receipts from the sale of cannabis by a cultivator to a

17 dispensing organization. The sale of any adult use product that

18 contains any amount of cannabis or any derivative thereof is

19 subject to the tax under this Section on the full selling price

20 of the product. The proceeds from this tax shall be deposited

21 into the Cannabis Regulation Fund. This tax shall be paid by

22 the cultivator who makes the first sale and is not the

23 responsibility of a dispensing organization, qualifying

24 patient, or purchaser.

25 (b)In the administration of and compliance with this

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1 Section, the Department of Revenue and persons who are subject

2 to this Section: (i) have the same rights, remedies,

3 privileges, immunities, powers, and duties, (ii) are subject to

4 the same conditions, restrictions, limitations, penalties, and

5 definitions of terms, and (iii) shall employ the same modes of

6 procedure as are set forth in the Cannabis Cultivation

7 Privilege Tax Law and the Uniform Penalty and Interest Act as

8 if those provisions were set forth in this Section.

9 (c)The tax imposed under this Act shall be in addition to

10 all other occupation or privilege taxes imposed by the State of

11 Illinois or by any municipal corporation or political

12 subdivision thereof.

13 ARTICLE 25.

14 COMMUNITY COLLEGE CANNABIS VOCATIONAL PILOT PROGRAM

15 Section 25-1. Definitions In this Article:

16 "Board" means the Illinois Community College Board.

17 "Career in Cannabis Certificate" or "Certificate" means

18 the certification awarded to a community college student who

19 completes a prescribed course of study in cannabis and cannabis

20 business industry related classes and curriculum at a community

21 college awarded a Community College Cannabis Vocational Pilot

22 Program license.

23 "Community college" means a public community college

24 organized under the Public Community College Act.

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1 "Department" means the Department of Agriculture.

2 "Licensee" means a community college awarded a Community

3 College Cannabis Vocational Pilot Program license under this

4 Article.

5 "Program" means the Community College Cannabis Vocational

6 Pilot Program.

7 "Program license" means a Community College Cannabis

8 Vocational Pilot Program license issued to a community college

9 under this Article.

10 Section 25-5. Administration.

11 (a) The Department shall establish and administer the

12 Program in coordination with the Illinois Community College

13 Board. The Department may issue up to 8 Program licenses by

14 September 1, 2020.

15 (b) Beginning with the 2021-2022 academic year, and subject

16 to subsection (h) of Section 2-12 of the Public Community

17 College Act, community colleges awarded Program licenses may

18 offer qualifying students a Career in Cannabis Certificate,

19 which includes, but is not limited to, courses that allow

20 participating students to work with, study, and grow live

21 cannabis plants so as to prepare students for a career in the

22 legal cannabis industry, and to instruct participating

23 students on the best business practices, professional

24 responsibility, and legal compliance of the cannabis business

25 industry.

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1 (c) The Board may issue rules pertaining to the provisions

2 in this Act.

3 (d) Notwithstanding any other provision of this Act,

4 students shall be at least 18 years old in order to enroll in a

5 licensee's Career in Cannabis Certificate's prescribed course

6 of study.

7 Section 25-10. Issuance of Community College Cannabis

8 Vocational Pilot Program licenses.

9 (a) The Department shall issue rules regulating the

10 selection criteria for applicants by January 1, 2020. The

11 Department shall make the application for a Program license

12 available no later than February 1, 2020, and shall require

13 that applicants submit the completed application no later than

14 July 1, 2020.

15 (b) The Department shall by rule develop a system to score

16 Program licenses to administratively rank applications based

17 on the clarity, organization, and quality of the applicant's

18 responses to required information. Applicants shall be awarded

19 points that are based on or that meet the following categories:

20 (1) Geographic diversity of the applicants;

21 (2) Experience and credentials of the applicant's

22 faculty;

23 (3) At least 5 Program license awardees must have a

24 student population that is more than 50% low-income in each

25 of the past 4 years;

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1 (4) Security plan, including a requirement that all

2 cannabis plants be in an enclosed, locked facility;

3 (5) Curriculum plan, including processing and testing

4 curriculum for the Career in Cannabis Certificate;

5 (6) Career advising and placement plan for

6 participating students; and

7 (7) Any other criteria the Department may set by rule.

8 Section 25-15. Community College Cannabis Vocational Pilot

9 Program requirements and prohibitions.

10 (a) Licensees shall not have more than 50 flowering

11 cannabis plants at any one time.

12 (b) The agent-in-charge shall keep a vault log of the

13 licensee's enclosed, locked facility or facilities, including

14 but not limited to, the person entering the site location, the

15 time of entrance, the time of exit, and any other information

16 the Department may set by rule.

17 (c) Cannabis shall not be removed from the licensee's

18 facility, except for the limited purpose of shipping a sample

19 to a laboratory registered under this Act.

20 (d) The licensee shall limit keys, access cards, or an

21 access code to the licensee's enclosed, locked facility, or

22 facilities, to cannabis curriculum faculty and college

23 security personnel with a bona fide need to access the facility

24 for emergency purposes.

25 (e) A transporting organization may transport cannabis

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1 produced pursuant to this Article to a laboratory registered

2 under this Act. All other cannabis produced by the licensee

3 that was not shipped to a registered laboratory shall be

4 destroyed within 5 weeks of being harvested.

5 (f) Licensees shall subscribe to the Department of

6 Agriculture's cannabis plant monitoring system.

7 (g) Licensees shall maintain a weekly inventory system.

8 (h) No student participating in the cannabis curriculum

9 necessary to obtain a Certificate may be in the licensee's

10 facility unless a faculty agent-in-charge is also physically

11 present in the facility.

12 (i) Licensees shall conduct post-certificate follow up

13 surveys and record participating students' job placements

14 within the cannabis business industry within a year of the

15 student's completion.

16 (j) The Illinois Community College Board shall report

17 annually to the Department on the race, ethnicity, and gender

18 of all students participating in the cannabis curriculum

19 necessary to obtain a Certificate, and of those students who

20 obtain a Certificate.

21 Section 25-20. Faculty.

22 (a) All faculty members shall be required to maintain

23 registration as an agent-in-charge and have a valid agent

24 identification card prior to teaching or participating in the

25 licensee's cannabis curriculum that involves instruction

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1 offered in the enclosed, locked facility or facilities.

2 (b) All faculty receiving an agent-in-charge or agent

3 identification card must successfully pass a background check

4 required by Section 5-20 prior to participating in a licensee's

5 cannabis curriculum that involves instruction offered in the

6 enclosed, locked facility.

7 Section 25-25. Enforcement.

8 (a) The Department has the authority to suspend or revoke

9 any faculty agent-in-charge or agent identification card for

10 any violation found under this Article.

11 (b) The Department has the authority to suspend or revoke

12 any Program license for any violation found under this Article.

13 (c) The Board shall revoke the authority to offer the

14 Certificate of any community college that has had its license

15 revoked by the Department.

16 Section 25-30. Inspection rights.

17 (a) A licensee's enclosed, locked facilities are subject to

18 random inspections by the Department and the Department of

19 State Police.

20 (b) Nothing in this Section shall be construed to give the

21 Department or the Department of State Police a right of

22 inspection or access to any location on the licensee's premises

23 beyond the facilities licensed under this Article.

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1 Section 25-35. Community College Cannabis Vocational

2 Training Pilot Program faculty participant agent

3 identification card.

4 (a) The Department shall:

5 (1) establish by rule the information required in an

6 initial application or renewal application for an agent

7 identification card submitted under this Article and the

8 nonrefundable fee to accompany the initial application or

9 renewal application;

10 (2) verify the information contained in an initial

11 application or renewal application for an agent

12 identification card submitted under this Article, and

13 approve or deny an application within 30 days of receiving

14 a completed initial application or renewal application and

15 all supporting documentation required by rule;

16 (3) issue an agent identification card to a qualifying

17 agent within 15 business days of approving the initial

18 application or renewal application;

19 (4) enter the license number of the community college

20 where the agent works; and

21 (5) allow for an electronic initial application and

22 renewal application process, and provide a confirmation by

23 electronic or other methods that an application has been

24 submitted. Each Department may by rule require prospective

25 agents to file their applications by electronic means and

26 to provide notices to the agents by electronic means.

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1 (b) An agent must keep his or her identification card

2 visible at all times when in the enclosed, locked facility, or

3 facilities for which he or she is an agent.

4 (c) The agent identification cards shall contain the

5 following:

6 (1) the name of the cardholder;

7 (2) the date of issuance and expiration date of the

8 identification card;

9 (3) a random 10-digit alphanumeric identification

10 number containing at least 4 numbers and at least 4 letters

11 that is unique to the holder;

12 (4) a photograph of the cardholder; and

13 (5) the legal name of the community college employing

14 the agent.

15 (d) An agent identification card shall be immediately

16 returned to the community college of the agent upon termination

17 of his or her employment.

18 (e) Any agent identification card lost shall be reported to

19 the Department of State Police and the Department of

20 Agriculture immediately upon discovery of the loss.

21 Section 25-40. Study. By December 31, 2025, the Illinois

22 Cannabis Regulation Oversight Officer, in coordination with

23 the Board, must issue a report to the Governor and the General

24 Assembly which includes, but is not limited to, the following:

25 (1) Number of security incidents or infractions at each

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1 licensee and any action taken or not taken;

2 (2) Statistics, based on race, ethnicity, gender, and

3 participating community college of:

4 (A) students enrolled in career in cannabis

5 classes;

6 (B) successful completion rates by community

7 college students for the Certificate;

8 (C) postgraduate job placement of students who

9 obtained a Certificate, including both cannabis

10 business establishment jobs and non-cannabis business

11 establishment jobs; and

12 (3) Any other relevant information.

13 Section 25-45. Repeal. This Article is repealed on July 1,

14 2026.

15 ARTICLE 30.

16 CRAFT GROWERS

17 Section 30-3. Definition. In this Article, "Department"

18 means the Department of Agriculture.

19 Section 30-5. Issuance of licenses.

20 (a) The Department of Agriculture shall issue up to 40

21 craft grower licenses by July 1, 2020. Any person or entity

22 awarded a license pursuant to this subsection shall only hold

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1 one craft grower license and may not sell that license until

2 after December 21, 2021.

3 (b) By December 21, 2021, the Department of Agriculture

4 shall issue up to 60 additional craft grower licenses. Any

5 person or entity awarded a license pursuant to this subsection

6 shall not hold more than 2 craft grower licenses. The person or

7 entity awarded a license pursuant to this subsection or

8 subsection (a) of this Section may sell its craft grower

9 license subject to the restrictions of this Act or as

10 determined by administrative rule. Prior to issuing such

11 licenses, the Department may adopt rules through emergency

12 rulemaking in accordance with subsection (gg) of Section 5-45

13 of the Illinois Administrative Procedure Act, to modify or

14 raise the number of craft grower licenses assigned to each

15 region and modify or change the licensing application process

16 to reduce or eliminate barriers. The General Assembly finds

17 that the adoption of rules to regulate cannabis use is deemed

18 an emergency and necessary for the public interest, safety, and

19 welfare. In determining whether to exercise the authority

20 granted by this subsection, the Department of Agriculture must

21 consider the following factors:

22 (1) The percentage of cannabis sales occurring in

23 Illinois not in the regulated market using data from the

24 Substance Abuse and Mental Health Services Administration,

25 National Survey on Drug Use and Health, Illinois Behavioral

26 Risk Factor Surveillance System, and tourism data from the

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1 Illinois Office of Tourism to ascertain total cannabis

2 consumption in Illinois compared to the amount of sales in

3 licensed dispensing organizations;

4 (2) Whether there is an adequate supply of cannabis and

5 cannabis-infused products to serve registered medical

6 cannabis patients;

7 (3) Whether there is an adequate supply of cannabis and

8 cannabis-infused products to serve purchasers;

9 (4) Whether there is an oversupply of cannabis in

10 Illinois leading to trafficking of cannabis to states where

11 the sale of cannabis is not permitted by law;

12 (5) Population increases or shifts;

13 (6) The density of craft growers in any area of the

14 State;

15 (7) Perceived security risks of increasing the number

16 or location of craft growers;

17 (8) The past safety record of craft growers;

18 (9) The Department of Agriculture's capacity to

19 appropriately regulate additional licensees;

20 (10) The findings and recommendations from the

21 disparity and availability study commissioned by the

22 Illinois Cannabis Regulation Oversight Officer to reduce

23 or eliminate any identified barriers to entry in the

24 cannabis industry; and

25 (11) Any other criteria the Department of Agriculture

26 deems relevant.

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1 (c) After January 1, 2022, the Department of Agriculture

2 may by rule modify or raise the number of craft grower licenses

3 assigned to each region, and modify or change the licensing

4 application process to reduce or eliminate barriers based on

5 the criteria in subsection (b). At no time may the number of

6 craft grower licenses exceed 150. Any person or entity awarded

7 a license pursuant to this subsection shall not hold more than

8 3 craft grower licenses. A person or entity awarded a license

9 pursuant to this subsection or subsection (a) or subsection (b)

10 of this Section may sell its craft grower license or licenses

11 subject to the restrictions of this Act or as determined by

12 administrative rule.

13 Section 30-10. Application.

14 (a) When applying for a license, the applicant shall

15 electronically submit the following in such form as the

16 Department of Agriculture may direct:

17 (1) the nonrefundable application fee of $5,000 to be

18 deposited into the Cannabis Regulation Fund, or another

19 amount as the Department of Agriculture may set by rule

20 after January 1, 2021;

21 (2) the legal name of the craft grower;

22 (3) the proposed physical address of the craft grower;

23 (4) the name, address, social security number, and date

24 of birth of each principal officer and board member of the

25 craft grower; each principal officer and board member shall

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1 be at least 21 years of age;

2 (5) the details of any administrative or judicial

3 proceeding in which any of the principal officers or board

4 members of the craft grower (i) pled guilty, were

5 convicted, fined, or had a registration or license

6 suspended or revoked or (ii) managed or served on the board

7 of a business or non-profit organization that pled guilty,

8 was convicted, fined, or had a registration or license

9 suspended or revoked;

10 (6) proposed operating bylaws that include procedures

11 for the oversight of the craft grower, including the

12 development and implementation of a plant monitoring

13 system, accurate recordkeeping, staffing plan, and

14 security plan approved by the Department of State Police

15 that are in accordance with the rules issued by the

16 Department of Agriculture under this Act; a physical

17 inventory shall be performed of all plants and on a weekly

18 basis by the craft grower;

19 (7) verification from the Department of State Police

20 that all background checks of the prospective principal

21 officers, board members, and agents of the cannabis

22 business establishment have been conducted;

23 (8) a copy of the current local zoning ordinance or

24 permit and verification that the proposed craft grower is

25 in compliance with the local zoning rules and distance

26 limitations established by the local jurisdiction;

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1 (9) proposed employment practices, in which the

2 applicant must demonstrate a plan of action to inform,

3 hire, and educate minorities, women, veterans, and persons

4 with disabilities, engage in fair labor practices, and

5 provide worker protections;

6 (10) whether an applicant can demonstrate experience

7 in or business practices that promote economic empowerment

8 in Disproportionately Impacted Areas;

9 (11) experience with the cultivation of agricultural

10 or horticultural products, operating an agriculturally

11 related business, or operating a horticultural business;

12 (12) a description of the enclosed, locked facility

13 where cannabis will be grown, harvested, manufactured,

14 packaged, or otherwise prepared for distribution to a

15 dispensing organization or other cannabis business

16 establishment;

17 (13) a survey of the enclosed, locked facility,

18 including the space used for cultivation;

19 (14) cultivation, processing, inventory, and packaging

20 plans;

21 (15) a description of the applicant's experience with

22 agricultural cultivation techniques and industry

23 standards;

24 (16) a list of any academic degrees, certifications, or

25 relevant experience of all prospective principal officers,

26 board members, and agents of the related business;

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1 (17) the identity of every person having a financial or

2 voting interest of 5% or greater in the craft grower

3 operation, whether a trust, corporation, partnership,

4 limited liability company, or sole proprietorship,

5 including the name and address of each person;

6 (18) a plan describing how the craft grower will

7 address each of the following:

8 (i) energy needs, including estimates of monthly

9 electricity and gas usage, to what extent it will

10 procure energy from a local utility or from on-site

11 generation, and if it has or will adopt a sustainable

12 energy use and energy conservation policy;

13 (ii) water needs, including estimated water draw

14 and if it has or will adopt a sustainable water use and

15 water conservation policy; and

16 (iii) waste management, including if it has or will

17 adopt a waste reduction policy;

18 (19) a recycling plan:

19 (A) Purchaser packaging, including cartridges,

20 shall be accepted by the applicant and recycled.

21 (B) Any recyclable waste generated by the craft

22 grower facility shall be recycled per applicable State

23 and local laws, ordinances, and rules.

24 (C) Any cannabis waste, liquid waste, or hazardous

25 waste shall be disposed of in accordance with 8 Ill.

26 Adm. Code 1000.460, except, to the greatest extent

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1 feasible, all cannabis plant waste will be rendered

2 unusable by grinding and incorporating the cannabis

3 plant waste with compostable mixed waste to be disposed

4 of in accordance with 8 Ill Adm. Code 1000.460(g)(1).

5 (20) a commitment to comply with local waste

6 provisions: a craft grower facility must remain in

7 compliance with applicable State and federal environmental

8 requirements, including, but not limited to:

9 (A) storing, securing, and managing all

10 recyclables and waste, including organic waste

11 composed of or containing finished cannabis and

12 cannabis products, in accordance with applicable State

13 and local laws, ordinances, and rules; and

14 (B) Disposing liquid waste containing cannabis or

15 byproducts of cannabis processing in compliance with

16 all applicable State and federal requirements,

17 including, but not limited to, the cannabis

18 cultivation facility's permits under Title X of the

19 Environmental Protection Act.

20 (21) a commitment to a technology standard for resource

21 efficiency of the craft grower facility.

22 (A) A craft grower facility commits to use

23 resources efficiently, including energy and water. For

24 the following, a cannabis cultivation facility commits

25 to meet or exceed the technology standard identified in

26 paragraphs (i), (ii), (iii), and (iv), which may be

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1 modified by rule:

2 (i) lighting systems, including light bulbs;

3 (ii) HVAC system;

4 (iii) water application system to the crop;

5 and

6 (iv) filtration system for removing

7 contaminants from wastewater.

8 (B) Lighting. The Lighting Power Densities (LPD)

9 for cultivation space commits to not exceed an average

10 of 36 watts per gross square foot of active and growing

11 space canopy, or all installed lighting technology

12 shall meet a photosynthetic photon efficacy (PPE) of no

13 less than 2.2 micromoles per joule fixture and shall be

14 featured on the DesignLights Consortium (DLC)

15 Horticultural Specification Qualified Products List

16 (QPL). In the event that DLC requirement for minimum

17 efficacy exceeds 2.2 micromoles per joule fixture,

18 that PPE shall become the new standard.

19 (C) HVAC.

20 (i) For cannabis grow operations with less

21 than 6,000 square feet of canopy, the licensee

22 commits that all HVAC units will be

23 high-efficiency ductless split HVAC units, or

24 other more energy efficient equipment.

25 (ii) For cannabis grow operations with 6,000

26 square feet of canopy or more, the licensee commits

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1 that all HVAC units will be variable refrigerant

2 flow HVAC units, or other more energy efficient

3 equipment.

4 (D) Water application.

5 (i) The craft grower facility commits to use

6 automated watering systems, including, but not

7 limited to, drip irrigation and flood tables, to

8 irrigate cannabis crop.

9 (ii) The craft grower facility commits to

10 measure runoff from watering events and report

11 this volume in its water usage plan, and that on

12 average, watering events shall have no more than

13 20% of runoff of water.

14 (E) Filtration. The craft grower commits that HVAC

15 condensate, dehumidification water, excess runoff, and

16 other wastewater produced by the craft grower facility

17 shall be captured and filtered to the best of the

18 facility's ability to achieve the quality needed to be

19 reused in subsequent watering rounds.

20 (F) Reporting energy use and efficiency as

21 required by rule; and

22 (22) any other information required by rule.

23 (b) Applicants must submit all required information,

24 including the information required in Section 30-15, to the

25 Department of Agriculture. Failure by an applicant to submit

26 all required information may result in the application being

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1 disqualified.

2 (c) If the Department of Agriculture receives an

3 application with missing information, the Department of

4 Agriculture may issue a deficiency notice to the applicant. The

5 applicant shall have 10 calendar days from the date of the

6 deficiency notice to resubmit the incomplete information.

7 Applications that are still incomplete after this opportunity

8 to cure will not be scored and will be disqualified.

9 Section 30-15. Scoring applications.

10 (a) The Department of Agriculture shall by rule develop a

11 system to score craft grower applications to administratively

12 rank applications based on the clarity, organization, and

13 quality of the applicant's responses to required information.

14 Applicants shall be awarded points based on the following

15 categories:

16 (1) Suitability of the proposed facility;

17 (2) Suitability of the employee training plan;

18 (3) Security and recordkeeping;

19 (4) Cultivation plan;

20 (5) Product safety and labeling plan;

21 (6) Business plan;

22 (7) The applicant's status as a Social Equity

23 Applicant, which shall constitute no less than 20% of total

24 available points;

25 (8) Labor and employment practices, which shall

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1 constitute no less than 2% of total available points;

2 (9) Environmental plan as described in paragraphs

3 (18), (19), (20), and (21) of subsection (a) of Section

4 30-10;

5 (10) The applicant is 51% or more owned and controlled

6 by an individual or individuals who have been an Illinois

7 resident for the past 5 years as proved by tax records;

8 (11) The applicant is 51% or more controlled and owned

9 by an individual or individuals who meet the qualifications

10 of a veteran as defined in Section 45-57 of the Illinois

11 Procurement Code;

12 (12) A diversity plan that includes a narrative of not

13 more than 2,500 words that establishes a goal of diversity

14 in ownership, management, employment, and contracting to

15 ensure that diverse participants and groups are afforded

16 equality of opportunity; and

17 (13) Any other criteria the Department of Agriculture

18 may set by rule for points.

19 (b) The Department may also award up to 2 bonus points for

20 the applicant's plan to engage with the community. The

21 applicant may demonstrate a desire to engage with its community

22 by participating in one or more of, but not limited to, the

23 following actions: (i) establishment of an incubator program

24 designed to increase participation in the cannabis industry by

25 persons who would qualify as Social Equity Applicants; (ii)

26 providing financial assistance to substance abuse treatment

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1 centers; (iii) educating children and teens about the potential

2 harms of cannabis use; or (iv) other measures demonstrating a

3 commitment to the applicant's community. Bonus points will only

4 be awarded if the Department receives applications that receive

5 an equal score for a particular region.

6 (c) Should the applicant be awarded a craft grower license,

7 the information and plans that an applicant provided in its

8 application, including any plans submitted for the acquiring of

9 bonus points, shall be a mandatory condition of the license.

10 Any variation from or failure to perform such plans may result

11 in discipline, including the revocation or nonrenewal of a

12 license.

13 (d) Should the applicant be awarded a craft grower license,

14 the applicant shall pay a prorated fee of $40,000 prior to

15 receiving the license, to be deposited into the Cannabis

16 Regulation Fund. The Department of Agriculture may by rule

17 adjust the fee in this Section after January 1, 2021.

18 Section 30-20. Issuance of license to certain persons

19 prohibited.

20 (a) No craft grower license issued by the Department of

21 Agriculture shall be issued to a person who is licensed by any

22 licensing authority as a cultivation center, or to any

23 partnership, corporation, limited liability company, or trust

24 or any subsidiary, affiliate, or any other form of business

25 enterprise having more than 10% legal, equitable, or beneficial

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1 interest, directly or indirectly, in a person licensed in this

2 State as a cultivation center, or to any principal officer,

3 agent, employee, or human being with any form of ownership or

4 control over a cultivation center except for a person who owns

5 no more than 5% of the outstanding shares of a cultivation

6 center whose shares are publicly traded on an exchange within

7 the meaning of the Securities Exchange Act of 1934.

8 (b) A person who is licensed in this State as a craft

9 grower, or any partnership, corporation, limited liability

10 company, or trust or any subsidiary, affiliate, or agent

11 thereof, or any other form of business enterprise licensed in

12 this State as a craft grower shall not have more than 10%

13 legal, equitable, or beneficial interest, directly or

14 indirectly, in a person licensed as a cultivation center, nor

15 shall any partnership, corporation, limited liability company,

16 or trust or any subsidiary, affiliate, or any other form of

17 business enterprise having any legal, equitable, or beneficial

18 interest, directly or indirectly, in a person licensed in this

19 State as a craft grower or a craft grower agent be a principal

20 officer, agent, employee, or human being with any form of

21 ownership or control over a cultivation center except for a

22 person who owns no more than 5% of the outstanding shares of a

23 cultivation center whose shares are publicly traded on an

24 exchange within the meaning of the Securities Exchange Act of

25 1934.

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1 Section 30-25. Denial of application. An application for a

2 craft grower license must be denied if any of the following

3 conditions are met:

4 (1) the applicant failed to submit the materials

5 required by this Article;

6 (2) the applicant would not be in compliance with local

7 zoning rules;

8 (3) one or more of the prospective principal officers

9 or board members causes a violation of Section 30-20 of

10 this Article;

11 (4) one or more of the principal officers or board

12 members is under 21 years of age;

13 (5) the person has submitted an application for a

14 license under this Act that contains false information; or

15 (6) the licensee; principal officer, board member, or

16 person having a financial or voting interest of 5% or

17 greater in the licensee; or agent is delinquent in filing

18 any required tax returns or paying any amounts owed to the

19 State of Illinois.

20 Section 30-30. Craft grower requirements; prohibitions.

21 (a) The operating documents of a craft grower shall include

22 procedures for the oversight of the craft grower, a cannabis

23 plant monitoring system including a physical inventory

24 recorded weekly, accurate recordkeeping, and a staffing plan.

25 (b) A craft grower shall implement a security plan reviewed

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1 by the Department of State Police that includes, but is not

2 limited to: facility access controls, perimeter intrusion

3 detection systems, personnel identification systems, and a

4 24-hour surveillance system to monitor the interior and

5 exterior of the craft grower facility and that is accessible to

6 authorized law enforcement and the Department of Agriculture in

7 real time.

8 (c) All cultivation of cannabis by a craft grower must take

9 place in an enclosed, locked facility at the physical address

10 provided to the Department of Agriculture during the licensing

11 process. The craft grower location shall only be accessed by

12 the agents working for the craft grower, the Department of

13 Agriculture staff performing inspections, the Department of

14 Public Health staff performing inspections, State and local law

15 enforcement or other emergency personnel, contractors working

16 on jobs unrelated to cannabis, such as installing or

17 maintaining security devices or performing electrical wiring,

18 transporting organization agents as provided in this Act, or

19 participants in the incubator program, individuals in a

20 mentoring or educational program approved by the State, or

21 other individuals as provided by rule. However, if a craft

22 grower shares a premises with an infuser or dispensing

23 organization, agents from those other licensees may access the

24 craft grower portion of the premises if that is the location of

25 common bathrooms, lunchrooms, locker rooms, or other areas of

26 the building where work or cultivation of cannabis is not

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1 performed. At no time may an infuser or dispensing organization

2 agent perform work at a craft grower without being a registered

3 agent of the craft grower.

4 (d) A craft grower may not sell or distribute any cannabis

5 to any person other than a cultivation center, a craft grower,

6 an infuser organization, a dispensing organization, or as

7 otherwise authorized by rule.

8 (e) A craft grower may not be located in an area zoned for

9 residential use.

10 (f) A craft grower may not either directly or indirectly

11 discriminate in price between different cannabis business

12 establishments that are purchasing a like grade, strain, brand,

13 and quality of cannabis or cannabis-infused product. Nothing in

14 this subsection (f) prevents a craft grower from pricing

15 cannabis differently based on differences in the cost of

16 manufacturing or processing, the quantities sold, such as

17 volume discounts, or the way the products are delivered.

18 (g) All cannabis harvested by a craft grower and intended

19 for distribution to a dispensing organization must be entered

20 into a data collection system, packaged and labeled under

21 Section 55-21, and, if distribution is to a dispensing

22 organization that does not share a premises with the dispensing

23 organization receiving the cannabis, placed into a cannabis

24 container for transport. All cannabis harvested by a craft

25 grower and intended for distribution to a cultivation center,

26 to an infuser organization, or to a craft grower with which it

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1 does not share a premises, must be packaged in a labeled

2 cannabis container and entered into a data collection system

3 before transport.

4 (h) Craft growers are subject to random inspections by the

5 Department of Agriculture, local safety or health inspectors,

6 and the Department of State Police.

7 (i) A craft grower agent shall notify local law

8 enforcement, the Department of State Police, and the Department

9 of Agriculture within 24 hours of the discovery of any loss or

10 theft. Notification shall be made by phone, in person, or

11 written or electronic communication.

12 (j) A craft grower shall comply with all State and any

13 applicable federal rules and regulations regarding the use of

14 pesticides.

15 (k) A craft grower or craft grower agent shall not

16 transport cannabis or cannabis-infused products to any other

17 cannabis business establishment without a transport

18 organization license unless:

19 (i) If the craft grower is located in a county with a

20 population of 3,000,000 or more, the cannabis business

21 establishment receiving the cannabis is within 2,000 feet

22 of the property line of the craft grower;

23 (ii) If the craft grower is located in a county with a

24 population of more than 700,000 but fewer than 3,000,000,

25 the cannabis business establishment receiving the cannabis

26 is within 2 miles of the craft grower; or

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1 (iii) If the craft grower is located in a county with a

2 population of fewer the 700,000, the cannabis business

3 establishment receiving the cannabis is within 15 miles of

4 the craft grower.

5 (l) A craft grower may enter into a contract with a

6 transporting organization to transport cannabis to a

7 cultivation center, a craft grower, an infuser organization, a

8 dispensing organization, or a laboratory.

9 (m) No person or entity shall hold any legal, equitable,

10 ownership, or beneficial interest, directly or indirectly, of

11 more than 3 craft grower licenses. Further, no person or entity

12 that is employed by, an agent of, or has a contract to receive

13 payment from or participate in the management of a craft

14 grower, is a principal officer of a craft grower, or entity

15 controlled by or affiliated with a principal officer of a craft

16 grower shall hold any legal, equitable, ownership, or

17 beneficial interest, directly or indirectly, in a craft grower

18 license that would result in the person or entity owning or

19 controlling in combination with any craft grower, principal

20 officer of a craft grower, or entity controlled or affiliated

21 with a principal officer of a craft grower by which he, she, or

22 it is employed, is an agent of, or participates in the

23 management of more than 3 craft grower licenses.

24 (n) It is unlawful for any person having a craft grower

25 license or any officer, associate, member, representative, or

26 agent of the licensee to offer or deliver money, or anything

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1 else of value, directly or indirectly, to any person having an

2 Early Approval Adult Use Dispensing Organization License, a

3 Conditional Adult Use Dispensing Organization License, an

4 Adult Use Dispensing Organization License, or a medical

5 cannabis dispensing organization license issued under the

6 Compassionate Use of Medical Cannabis Pilot Program Act, or to

7 any person connected with or in any way representing, or to any

8 member of the family of, the person holding an Early Approval

9 Adult Use Dispensing Organization License, a Conditional Adult

10 Use Dispensing Organization License, an Adult Use Dispensing

11 Organization License, or a medical cannabis dispensing

12 organization license issued under the Compassionate Use of

13 Medical Cannabis Pilot Program Act, or to any stockholders in

14 any corporation engaged in the retail sale of cannabis, or to

15 any officer, manager, agent, or representative of the Early

16 Approval Adult Use Dispensing Organization License, a

17 Conditional Adult Use Dispensing Organization License, an

18 Adult Use Dispensing Organization License, or a medical

19 cannabis dispensing organization license issued under the

20 Compassionate Use of Medical Cannabis Pilot Program Act to

21 obtain preferential placement within the dispensing

22 organization, including, without limitation, on shelves and in

23 display cases where purchasers can view products, or on the

24 dispensing organization's website.

25 (o) A craft grower shall not be located within 1,500 feet

26 of another craft grower or a cultivation center.

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1 (p) A graft grower may process cannabis, cannabis

2 concentrates, and cannabis-infused products.

3 (q) A craft grower must comply with any other requirements

4 or prohibitions set by administrative rule of the Department of

5 Agriculture.

6 Section 30-35. Craft grower agent identification card.

7 (a) The Department of Agriculture shall:

8 (1) establish by rule the information required in an

9 initial application or renewal application for an agent

10 identification card submitted under this Act and the

11 nonrefundable fee to accompany the initial application or

12 renewal application;

13 (2) verify the information contained in an initial

14 application or renewal application for an agent

15 identification card submitted under this Act and approve or

16 deny an application within 30 days of receiving a completed

17 initial application or renewal application and all

18 supporting documentation required by rule;

19 (3) issue an agent identification card to a qualifying

20 agent within 15 business days of approving the initial

21 application or renewal application;

22 (4) enter the license number of the craft grower where

23 the agent works; and

24 (5) allow for an electronic initial application and

25 renewal application process, and provide a confirmation by

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1 electronic or other methods that an application has been

2 submitted. The Department of Agriculture may by rule

3 require prospective agents to file their applications by

4 electronic means and provide notices to the agents by

5 electronic means.

6 (b) An agent must keep his or her identification card

7 visible at all times when on the property of a cannabis

8 business establishment, including the craft grower

9 organization for which he or she is an agent.

10 (c) The agent identification cards shall contain the

11 following:

12 (1) the name of the cardholder;

13 (2) the date of issuance and expiration date of the

14 identification card;

15 (3) a random 10-digit alphanumeric identification

16 number containing at least 4 numbers and at least 4 letters

17 that is unique to the holder;

18 (4) a photograph of the cardholder; and

19 (5) the legal name of the craft grower organization

20 employing the agent.

21 (d) An agent identification card shall be immediately

22 returned to the cannabis business establishment of the agent

23 upon termination of his or her employment.

24 (e) Any agent identification card lost by a craft grower

25 agent shall be reported to the Department of State Police and

26 the Department of Agriculture immediately upon discovery of the

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1 loss.

2 Section 30-40. Craft grower background checks.

3 (a) Through the Department of State Police, the Department

4 of Agriculture shall conduct a background check of the

5 prospective principal officers, board members, and agents of a

6 craft grower applying for a license or identification card

7 under this Act. The Department of State Police shall charge a

8 fee set by rule for conducting the criminal history record

9 check, which shall be deposited into the State Police Services

10 Fund and shall not exceed the actual cost of the record check.

11 In order to carry out this Section, each craft grower

12 organization's prospective principal officer, board member, or

13 agent shall submit a full set of fingerprints to the Department

14 of State Police for the purpose of obtaining a State and

15 federal criminal records check. These fingerprints shall be

16 checked against the fingerprint records now and hereafter, to

17 the extent allowed by law, filed in the Department of State

18 Police and Federal Bureau of Investigation criminal history

19 records databases. The Department of State Police shall

20 furnish, following positive identification, all conviction

21 information to the Department of Agriculture.

22 (b) When applying for the initial license or identification

23 card, the background checks for all prospective principal

24 officers, board members, and agents shall be completed before

25 submitting the application to the licensing or issuing agency.

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1 Section 30-45. Renewal of craft grower licenses and agent

2 identification cards.

3 (a) Licenses and identification cards issued under this Act

4 shall be renewed annually. A craft grower shall receive written

5 or electronic notice 90 days before the expiration of its

6 current license that the license will expire. The Department of

7 Agriculture shall grant a renewal within 45 days of submission

8 of a renewal application if:

9 (1) the craft grower submits a renewal application and

10 the required nonrefundable renewal fee of $40,000, or

11 another amount as the Department of Agriculture may set by

12 rule after January 1, 2021;

13 (2) the Department of Agriculture has not suspended the

14 license of the craft grower or suspended or revoked the

15 license for violating this Act or rules adopted under this

16 Act;

17 (3) the craft grower has continued to operate in

18 accordance with all plans submitted as part of its

19 application and approved by the Department of Agriculture

20 or any amendments thereto that have been approved by the

21 Department of Agriculture;

22 (4) the craft grower has submitted an agent, employee,

23 contracting, and subcontracting diversity report as

24 required by the Department; and

25 (5) the craft grower has submitted an environmental

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1 impact report.

2 (b) If a craft grower fails to renew its license before

3 expiration, it shall cease operations until its license is

4 renewed.

5 (c) If a craft grower agent fails to renew his or her

6 identification card before its expiration, he or she shall

7 cease to work as an agent of the craft grower organization

8 until his or her identification card is renewed.

9 (d) Any craft grower that continues to operate, or any

10 craft grower agent who continues to work as an agent, after the

11 applicable license or identification card has expired without

12 renewal is subject to the penalties provided under Section

13 45-5.

14 (e) All fees or fines collected from the renewal of a craft

15 grower license shall be deposited into the Cannabis Regulation

16 Fund.

17 Section 30-50. Craft grower taxes; returns.

18 (a) A tax is imposed upon the privilege of cultivating and

19 processing adult use cannabis at the rate of 7% of the gross

20 receipts from the sale of cannabis by a craft grower to a

21 dispensing organization. The sale of any adult use product that

22 contains any amount of cannabis or any derivative thereof is

23 subject to the tax under this Section on the full selling price

24 of the product. The proceeds from this tax shall be deposited

25 into the Cannabis Regulation Fund. This tax shall be paid by

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1 the craft grower who makes the first sale and is not the

2 responsibility of a dispensing organization, qualifying

3 patient, or purchaser.

4 (b)In the administration of and compliance with this

5 Section, the Department of Revenue and persons who are subject

6 to this Section: (i) have the same rights, remedies,

7 privileges, immunities, powers, and duties, (ii) are subject to

8 the same conditions, restrictions, limitations, penalties, and

9 definitions of terms, and (iii) shall employ the same modes of

10 procedure as are set forth in the Cannabis Cultivation

11 Privilege Tax Law and the Uniform Penalty and Interest Act as

12 if those provisions were set forth in this Section.

13 (c)The tax imposed under this Act shall be in addition to

14 all other occupation or privilege taxes imposed by the State of

15 Illinois or by any municipal corporation or political

16 subdivision thereof.

17 ARTICLE 35.

18 INFUSER ORGANIZATIONS

19 Section 35-3. Definitions. In this Article:

20 "Department" means the Department of Agriculture.

21 Section 35-5. Issuance of licenses.

22 (a) The Department of Agriculture shall issue up to 40

23 infuser licenses through a process provided for in this Article

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1 no later than July 1, 2020.

2 (b) The Department of Agriculture shall make the

3 application for infuser licenses available on January 7, 2020,

4 or if that date falls on a weekend or holiday, the business day

5 immediately succeeding the weekend or holiday and every January

6 7 or succeeding business day thereafter, and shall receive such

7 applications no later than March 15, 2020, or, if that date

8 falls on a weekend or holiday, the business day immediately

9 succeeding the weekend or holiday and every March 15 or

10 succeeding business day thereafter.

11 (c) By December 21, 2021, the Department of Agriculture may

12 issue up to 60 additional infuser licenses. Prior to issuing

13 such licenses, the Department may adopt rules through emergency

14 rulemaking in accordance with subsection (gg) of Section 5-45

15 of the Illinois Administrative Procedure Act, to modify or

16 raise the number of infuser licenses and modify or change the

17 licensing application process to reduce or eliminate barriers.

18 The General Assembly finds that the adoption of rules to

19 regulate cannabis use is deemed an emergency and necessary for

20 the public interest, safety, and welfare.

21 In determining whether to exercise the authority granted by

22 this subsection, the Department of Agriculture must consider

23 the following factors:

24 (1) the percentage of cannabis sales occurring in

25 Illinois not in the regulated market using data from the

26 Substance Abuse and Mental Health Services Administration,

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1 National Survey on Drug Use and Health, Illinois Behavioral

2 Risk Factor Surveillance System, and tourism data from the

3 Illinois Office of Tourism to ascertain total cannabis

4 consumption in Illinois compared to the amount of sales in

5 licensed dispensing organizations;

6 (2) whether there is an adequate supply of cannabis and

7 cannabis-infused products to serve registered medical

8 cannabis patients;

9 (3) whether there is an adequate supply of cannabis and

10 cannabis-infused products to sere purchasers:

11 (4) whether there is an oversupply of cannabis in

12 Illinois leading to trafficking of cannabis to any other

13 state;

14 (5) population increases or shifts;

15 (6) changes to federal law;

16 (7) perceived security risks of increasing the number

17 or location of infuser organizations;

18 (8) the past security records of infuser

19 organizations;

20 (9) the Department of Agriculture's capacity to

21 appropriately regulate additional licenses;

22 (10) the findings and recommendations from the

23 disparity and availability study commissioned by the

24 Illinois Cannabis Regulation Oversight Officer to reduce

25 or eliminate any identified barriers to entry in the

26 cannabis industry; and

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1 (11) any other criteria the Department of Agriculture

2 deems relevant.

3 (d) After January 1, 2022, the Department of Agriculture

4 may by rule modify or raise the number of infuser licenses, and

5 modify or change the licensing application process to reduce or

6 eliminate barriers based on the criteria in subsection (c).

7 Section 35-10. Application.

8 (a) When applying for a license, the applicant shall

9 electronically submit the following in such form as the

10 Department of Agriculture may direct:

11 (1) the nonrefundable application fee of $5,000 or,

12 after January 1, 2021, another amount as set by rule by the

13 Department of Agriculture, to be deposited into the

14 Cannabis Regulation Fund;

15 (2) the legal name of the infuser;

16 (3) the proposed physical address of the infuser;

17 (4) the name, address, social security number, and date

18 of birth of each principal officer and board member of the

19 infuser; each principal officer and board member shall be

20 at least 21 years of age;

21 (5) the details of any administrative or judicial

22 proceeding in which any of the principal officers or board

23 members of the infuser (i) pled guilty, were convicted,

24 fined, or had a registration or license suspended or

25 revoked, or (ii) managed or served on the board of a

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1 business or non-profit organization that pled guilty, was

2 convicted, fined, or had a registration or license

3 suspended or revoked;

4 (6) proposed operating bylaws that include procedures

5 for the oversight of the infuser, including the development

6 and implementation of a plant monitoring system, accurate

7 recordkeeping, staffing plan, and security plan approved

8 by the Department of State Police that are in accordance

9 with the rules issued by the Department of Agriculture

10 under this Act; a physical inventory of all cannabis shall

11 be performed on a weekly basis by the infuser;

12 (7) verification from the Department of State Police

13 that all background checks of the prospective principal

14 officers, board members, and agents of the infuser

15 organization have been conducted;

16 (8) a copy of the current local zoning ordinance and

17 verification that the proposed infuser is in compliance

18 with the local zoning rules and distance limitations

19 established by the local jurisdiction;

20 (9) proposed employment practices, in which the

21 applicant must demonstrate a plan of action to inform,

22 hire, and educate minorities, women, veterans, and persons

23 with disabilities, engage in fair labor practices, and

24 provide worker protections;

25 (10) whether an applicant can demonstrate experience

26 in or business practices that promote economic empowerment

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1 in Disproportionately Impacted Areas;

2 (11) experience with infusing products with cannabis

3 concentrate;

4 (12) a description of the enclosed, locked facility

5 where cannabis will be infused, packaged, or otherwise

6 prepared for distribution to a dispensing organization or

7 other infuser;

8 (13) processing, inventory, and packaging plans;

9 (14) a description of the applicant's experience with

10 operating a commercial kitchen or laboratory preparing

11 products for human consumption;

12 (15) a list of any academic degrees, certifications, or

13 relevant experience of all prospective principal officers,

14 board members, and agents of the related business;

15 (16) the identity of every person having a financial or

16 voting interest of 5% or greater in the infuser operation

17 with respect to which the license is sought, whether a

18 trust, corporation, partnership, limited liability

19 company, or sole proprietorship, including the name and

20 address of each person;

21 (17) a plan describing how the infuser will address

22 each of the following:

23 (i) energy needs, including estimates of monthly

24 electricity and gas usage, to what extent it will

25 procure energy from a local utility or from on-site

26 generation, and if it has or will adopt a sustainable

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1 energy use and energy conservation policy;

2 (ii) water needs, including estimated water draw,

3 and if it has or will adopt a sustainable water use and

4 water conservation policy; and

5 (iii) waste management, including if it has or will

6 adopt a waste reduction policy;

7 (18) a recycling plan:

8 (A) a commitment that any recyclable waste

9 generated by the infuser shall be recycled per

10 applicable State and local laws, ordinances, and

11 rules; and

12 (B) a commitment to comply with local waste

13 provisions. An infuser commits to remain in compliance

14 with applicable State and federal environmental

15 requirements, including, but not limited to, storing,

16 securing, and managing all recyclables and waste,

17 including organic waste composed of or containing

18 finished cannabis and cannabis products, in accordance

19 with applicable State and local laws, ordinances, and

20 rules; and

21 (19) any other information required by rule.

22 (b) Applicants must submit all required information,

23 including the information required in Section 35-15, to the

24 Department of Agriculture. Failure by an applicant to submit

25 all required information may result in the application being

26 disqualified.

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1 (c) If the Department of Agriculture receives an

2 application with missing information, the Department of

3 Agriculture may issue a deficiency notice to the applicant. The

4 applicant shall have 10 calendar days from the date of the

5 deficiency notice to resubmit the incomplete information.

6 Applications that are still incomplete after this opportunity

7 to cure will not be scored and will be disqualified.

8 Section 35-15. Issuing licenses.

9 (a) The Department of Agriculture shall by rule develop a

10 system to score infuser applications to administratively rank

11 applications based on the clarity, organization, and quality of

12 the applicant's responses to required information. Applicants

13 shall be awarded points based on the following categories:

14 (1) Suitability of the proposed facility;

15 (2) Suitability of the employee training plan;

16 (3) Security and recordkeeping plan;

17 (4) Infusing plan;

18 (5) Product safety and labeling plan;

19 (6) Business plan;

20 (7) The applicant's status as a Social Equity

21 Applicant, which shall constitute no less than 20% of total

22 available points;

23 (8) Labor and employment practices, which shall

24 constitute no less than 2% of total available points;

25 (9) Environmental plan as described in paragraphs (17)

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1 and (18) of subsection (a) of Section 35-10;

2 (10) The applicant is 51% or more owned and controlled

3 by an individual or individuals who have been an Illinois

4 resident for the past 5 years as proved by tax records;

5 (11) The applicant is 51% or more controlled and owned

6 by an individual or individuals who meet the qualifications

7 of a veteran as defined by Section 45-57 of the Illinois

8 Procurement Code; and

9 (12) A diversity plan that includes a narrative of not

10 more than 2,500 words that establishes a goal of diversity

11 in ownership, management, employment, and contracting to

12 ensure that diverse participants and groups are afforded

13 equality of opportunity; and

14 (13) Any other criteria the Department of Agriculture

15 may set by rule for points.

16 (b) The Department may also award up to 2 bonus points for

17 the applicant's plan to engage with the community. The

18 applicant may demonstrate a desire to engage with its community

19 by participating in one or more of, but not limited to, the

20 following actions: (i) establishment of an incubator program

21 designed to increase participation in the cannabis industry by

22 persons who would qualify as Social Equity Applicants; (ii)

23 providing financial assistance to substance abuse treatment

24 centers; (iii) educating children and teens about the potential

25 harms of cannabis use; or (iv) other measures demonstrating a

26 commitment to the applicant's community. Bonus points will only

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1 be awarded if the Department receives applications that receive

2 an equal score for a particular region.

3 (c) Should the applicant be awarded an infuser license, the

4 information and plans that an applicant provided in its

5 application, including any plans submitted for the acquiring of

6 bonus points, becomes a mandatory condition of the permit. Any

7 variation from or failure to perform such plans may result in

8 discipline, including the revocation or nonrenewal of a

9 license.

10 (d) Should the applicant be awarded an infuser organization

11 license, it shall pay a fee of $5,000 prior to receiving the

12 license, to be deposited into the Cannabis Regulation Fund. The

13 Department of Agriculture may by rule adjust the fee in this

14 Section after January 1, 2021.

15 Section 35-20. Denial of application. An application for an

16 infuser license shall be denied if any of the following

17 conditions are met:

18 (1) the applicant failed to submit the materials

19 required by this Article;

20 (2) the applicant would not be in compliance with local

21 zoning rules or permit requirements;

22 (3) one or more of the prospective principal officers

23 or board members causes a violation of Section 35-25.

24 (4) one or more of the principal officers or board

25 members is under 21 years of age;

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1 (5) the person has submitted an application for a

2 license under this Act or this Article that contains false

3 information; or

4 (6) if the licensee; principal officer, board member,

5 or person having a financial or voting interest of 5% or

6 greater in the licensee; or agent is delinquent in filing

7 any required tax returns or paying any amounts owed to the

8 State of Illinois.

9 Section 35-25. Infuser organization requirements;

10 prohibitions.

11 (a) The operating documents of an infuser shall include

12 procedures for the oversight of the infuser, an inventory

13 monitoring system including a physical inventory recorded

14 weekly, accurate recordkeeping, and a staffing plan.

15 (b) An infuser shall implement a security plan reviewed by

16 the Department of State Police that includes, but is not

17 limited to: facility access controls, perimeter intrusion

18 detection systems, personnel identification systems, and a

19 24-hour surveillance system to monitor the interior and

20 exterior of the infuser facility and that is accessible to

21 authorized law enforcement, the Department of Public Health,

22 and the Department of Agriculture in real time.

23 (c) All processing of cannabis by an infuser must take

24 place in an enclosed, locked facility at the physical address

25 provided to the Department of Agriculture during the licensing

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1 process. The infuser location shall only be accessed by the

2 agents working for the infuser, the Department of Agriculture

3 staff performing inspections, the Department of Public Health

4 staff performing inspections, State and local law enforcement

5 or other emergency personnel, contractors working on jobs

6 unrelated to cannabis, such as installing or maintaining

7 security devices or performing electrical wiring, transporting

8 organization agents as provided in this Act, participants in

9 the incubator program, individuals in a mentoring or

10 educational program approved by the State, local safety or

11 health inspectors, or other individuals as provided by rule.

12 However, if an infuser shares a premises with a craft grower or

13 dispensing organization, agents from these other licensees may

14 access the infuser portion of the premises if that is the

15 location of common bathrooms, lunchrooms, locker rooms, or

16 other areas of the building where processing of cannabis is not

17 performed. At no time may a craft grower or dispensing

18 organization agent perform work at an infuser without being a

19 registered agent of the infuser.

20 (d) An infuser may not sell or distribute any cannabis to

21 any person other than a dispensing organization, or as

22 otherwise authorized by rule.

23 (e) An infuser may not either directly or indirectly

24 discriminate in price between different cannabis business

25 establishments that are purchasing a like grade, strain, brand,

26 and quality of cannabis or cannabis-infused product. Nothing in

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1 this subsection (e) prevents an infuser from pricing cannabis

2 differently based on differences in the cost of manufacturing

3 or processing, the quantities sold, such volume discounts, or

4 the way the products are delivered.

5 (f) All cannabis infused by an infuser and intended for

6 distribution to a dispensing organization must be entered into

7 a data collection system, packaged and labeled under Section

8 55-21, and, if distribution is to a dispensing organization

9 that does not share a premises with the infuser, placed into a

10 cannabis container for transport. All cannabis produced by an

11 infuser and intended for distribution to a cultivation center,

12 infuser organization, or craft grower with which it does not

13 share a premises, must be packaged in a labeled cannabis

14 container and entered into a data collection system before

15 transport.

16 (g) Infusers are subject to random inspections by the

17 Department of Agriculture, the Department of Public Health, the

18 Department of State Police, and local law enforcement.

19 (h) An infuser agent shall notify local law enforcement,

20 the Department of State Police, and the Department of

21 Agriculture within 24 hours of the discovery of any loss or

22 theft. Notification shall be made by phone, in person, or by

23 written or electronic communication.

24 (i) An infuser organization may not be located in an area

25 zoned for residential use.

26 (j) An infuser or infuser agent shall not transport

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1 cannabis or cannabis-infused products to any other cannabis

2 business establishment without a transport organization

3 license unless:

4 (i) If the infuser is located in a county with a

5 population of 3,000,000 or more, the cannabis business

6 establishment receiving the cannabis or cannabis-infused

7 product is within 2,000 feet of the property line of the

8 infuser;

9 (ii) If the infuser is located in a county with a

10 population of more than 700,000 but fewer than 3,000,000,

11 the cannabis business establishment receiving the cannabis

12 or cannabis-infused product is within 2 miles of the

13 infuser; or

14 (iii) If the infuser is located in a county with a

15 population of fewer than 700,000, the cannabis business

16 establishment receiving the cannabis or cannabis-infused

17 product is within 15 miles of the infuser.

18 (k) An infuser may enter into a contract with a

19 transporting organization to transport cannabis to a

20 dispensing organization or a laboratory.

21 (l) An infuser organization may share premises with a craft

22 grower or a dispensing organization, or both, provided each

23 licensee stores currency and cannabis or cannabis-infused

24 products in a separate secured vault to which the other

25 licensee does not have access or all licensees sharing a vault

26 share more than 50% of the same ownership.

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1 (m) It is unlawful for any person or entity having an

2 infuser organization license or any officer, associate,

3 member, representative or agent of such licensee to offer or

4 deliver money, or anything else of value, directly or

5 indirectly to any person having an Early Approval Adult Use

6 Dispensing Organization License, a Conditional 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 Pilot Program Act, or to any person connected

11 with or in any way representing, or to any member of the family

12 of, such person holding an Early Approval Adult Use Dispensing

13 Organization License, a Conditional Adult Use Dispensing

14 Organization License, an Adult Use Dispensing Organization

15 License, or a medical cannabis dispensing organization license

16 issued under the Compassionate Use of Medical Cannabis Pilot

17 Program Act, or to any stockholders in any corporation engaged

18 the retail sales of cannabis, or to any officer, manager,

19 agent, or representative of the Early Approval Adult Use

20 Dispensing Organization License, a Conditional Adult Use

21 Dispensing Organization License, an Adult Use Dispensing

22 Organization License, or a medical cannabis dispensing

23 organization license issued under the Compassionate Use of

24 Medical Cannabis Pilot Program Act to obtain preferential

25 placement within the dispensing organization, including,

26 without limitation, on shelves and in display cases where

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1 purchasers can view products, or on the dispensing

2 organization's website.

3 (n) At no time shall an infuser organization or an infuser

4 agent perform the extraction of cannabis concentrate from

5 cannabis flower.

6 Section 35-30. Infuser agent identification card.

7 (a) The Department of Agriculture shall:

8 (1) establish by rule the information required in an

9 initial application or renewal application for an agent

10 identification card submitted under this Act and the

11 nonrefundable fee to accompany the initial application or

12 renewal application;

13 (2) verify the information contained in an initial

14 application or renewal application for an agent

15 identification card submitted under this Act, and approve

16 or deny an application within 30 days of receiving a

17 completed initial application or renewal application and

18 all supporting documentation required by rule;

19 (3) issue an agent identification card to a qualifying

20 agent within 15 business days of approving the initial

21 application or renewal application;

22 (4) enter the license number of the infuser where the

23 agent works; and

24 (5) allow for an electronic initial application and

25 renewal application process, and provide a confirmation by

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1 electronic or other methods that an application has been

2 submitted. The Department of Agriculture may by rule

3 require prospective agents to file their applications by

4 electronic means and provide notices to the agents by

5 electronic means.

6 (b) An agent must keep his or her identification card

7 visible at all times when on the property of a cannabis

8 business establishment including the cannabis business

9 establishment for which he or she is an agent.

10 (c) The agent identification cards shall contain the

11 following:

12 (1) the name of the cardholder;

13 (2) the date of issuance and expiration date of the

14 identification card;

15 (3) a random 10-digit alphanumeric identification

16 number containing at least 4 numbers and at least 4 letters

17 that is unique to the holder;

18 (4) a photograph of the cardholder; and

19 (5) the legal name of the infuser organization

20 employing the agent.

21 (d) An agent identification card shall be immediately

22 returned to the infuser organization of the agent upon

23 termination of his or her employment.

24 (e) Any agent identification card lost by a transporting

25 agent shall be reported to the Department of State Police and

26 the Department of Agriculture immediately upon discovery of the

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1 loss.

2 Section 35-31. Ensuring an adequate supply of raw materials

3 to serve infusers.

4 (a) As used in this Section, "raw materials" includes, but

5 is not limited to, CO₂ hash oil, "crude", "distillate", or any

6 other cannabis concentrate extracted from cannabis flower by

7 use of a solvent or a mechanical process.

8 (b) The Department of Agriculture may by rule design a

9 method for assessing whether licensed infusers have access to

10 an adequate supply of reasonably affordable raw materials,

11 which may include but not be limited to: (i) a survey of

12 infusers; (ii) a market study on the sales trends of

13 cannabis-infused products manufactured by infusers; and (iii)

14 the costs cultivation centers and craft growers assume for the

15 raw materials they use in any cannabis-infused products they

16 manufacture.

17 (c) The Department of Agriculture shall perform an

18 assessment of whether infusers have access to an adequate

19 supply of reasonably affordable raw materials that shall start

20 no sooner than January 1, 2022 and shall conclude no later than

21 April 1, 2022. The Department of Agriculture may rely on data

22 from the Illinois Cannabis Regulation Oversight Officer as part

23 of this assessment.

24 (d) The Department of Agriculture shall perform an

25 assessment of whether infusers have access to an adequate

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1 supply of reasonably affordable raw materials that shall start

2 no sooner than January 1, 2023 and shall conclude no later than

3 April 1, 2023. The Department of Agriculture may rely on data

4 from the Cannabis Regulation Oversight Officer as part of this

5 assessment.

6 (e) The Department of Agriculture may by rule adopt

7 measures to ensure infusers have access to an adequate supply

8 of reasonably affordable raw materials necessary for the

9 manufacture of cannabis-infused products. Such measures may

10 include, but not be limited to (i) requiring cultivation

11 centers and craft growers to set aside a minimum amount of raw

12 materials for the wholesale market or (ii) enabling infusers to

13 apply for a processor license to extract raw materials from

14 cannabis flower.

15 (f) If the Department of Agriculture determines processor

16 licenses may be available to infusing organizations based upon

17 findings made pursuant to subsection (e), infuser

18 organizations may submit to the Department of Agriculture on

19 forms provided by the Department of Agriculture the following

20 information as part of an application to receive a processor

21 license:

22 (1) experience with the extraction, processing, or

23 infusing of oils similar to those derived from cannabis, or

24 other business practices to be performed by the infuser;

25 (2) a description of the applicant's experience with

26 manufacturing equipment and chemicals to be used in

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1 processing;

2 (3) expertise in relevant scientific fields;

3 (4) a commitment that any cannabis waste, liquid waste,

4 or hazardous waste shall be disposed of in accordance with

5 8 Ill. Adm. Code 1000.460, except, to the greatest extent

6 feasible, all cannabis plant waste will be rendered

7 unusable by grinding and incorporating the cannabis plant

8 waste with compostable mixed waste to be disposed of in

9 accordance with Ill. Adm. Code 1000.460(g)(1); and

10 (5) any other information the Department of

11 Agriculture deems relevant.

12 (g) The Department of Agriculture may only issue an

13 infusing organization a processor license if, based on the

14 information pursuant to subsection (f) and any other criteria

15 set by the Department of Agriculture, which may include but not

16 be limited an inspection of the site where processing would

17 occur, the Department of Agriculture is reasonably certain the

18 infusing organization will process cannabis in a safe and

19 compliant manner.

20 Section 35-35. Infuser organization background checks.

21 (a) Through the Department of State Police, the Department

22 of Agriculture shall conduct a background check of the

23 prospective principal officers, board members, and agents of an

24 infuser applying for a license or identification card under

25 this Act. The Department of State Police shall charge a fee set

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1 by rule for conducting the criminal history record check, which

2 shall be deposited into the State Police Services Fund and

3 shall not exceed the actual cost of the record check. In order

4 to carry out this provision, each infuser organization's

5 prospective principal officer, board member, or agent shall

6 submit a full set of fingerprints to the Department of State

7 Police for the purpose of obtaining a State and federal

8 criminal records check. These fingerprints shall be checked

9 against the fingerprint records now and hereafter, to the

10 extent allowed by law, filed in the Department of State Police

11 and Federal Bureau of Investigation criminal history records

12 databases. The Department of State Police shall furnish,

13 following positive identification, all conviction information

14 to the Department of Agriculture.

15 (b) When applying for the initial license or identification

16 card, the background checks for all prospective principal

17 officers, board members, and agents shall be completed before

18 submitting the application to the licensing or issuing agency.

19 Section 35-40. Renewal of infuser organization licenses

20 and agent identification cards.

21 (a) Licenses and identification cards issued under this Act

22 shall be renewed annually. An infuser organization shall

23 receive written or electronic notice 90 days before the

24 expiration of its current license that the license will expire.

25 The Department of Agriculture shall grant a renewal within 45

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1 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 into

6 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

21 before expiration, it shall cease operations until its license

22 is renewed.

23 (c) If an infuser organization agent fails to renew his or

24 her identification card before its expiration, he or she shall

25 cease to work as an agent of the infuser organization until his

26 or her identification card is renewed.

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1 (d) Any infuser organization that continues to operate, or

2 any infuser organization agent who continues to work as an

3 agent, after the applicable license or identification card has

4 expired without renewal is subject to the penalties provided

5 under Section 35-25.

6 (e) The Department shall not renew a license or an agent

7 identification card if the applicant is delinquent in filing

8 any required tax returns or paying any amounts owed to the

9 State of Illinois.

10 ARTICLE 40.

11 TRANSPORTING ORGANIZATIONS

12 Section 40-1. Definition. In this Article, "Department"

13 means the Department of Agriculture.

14 Section 40-5. Issuance of licenses.

15 (a) The Department shall issue transporting licenses

16 through a process provided for in this Article no later than

17 July 1, 2020.

18 (b) The Department shall make the application for

19 transporting organization licenses available on January 7,

20 2020 and shall receive such applications no later than March

21 15, 2020. Thereafter, the Department of Agriculture shall make

22 available such applications on every January 7 thereafter or if

23 that date falls on a weekend or holiday, the business day

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1 immediately succeeding the weekend or holiday and shall receive

2 such applications no later than March 15 or the succeeding

3 business day thereafter.

4 Section 40-10. Application.

5 (a) When applying for a transporting organization license,

6 the applicant shall electronically submit the following in such

7 form as the Department of Agriculture may direct:

8 (1) the nonrefundable application fee of $5,000 or,

9 after January 1, 2021, another amount as set by rule by the

10 Department of Agriculture, to be deposited into the

11 Cannabis Regulation Fund;

12 (2) the legal name of the transporting organization;

13 (3) the proposed physical address of the transporting

14 organization, if one is proposed;

15 (4) the name, address, social security number, and date

16 of birth of each principal officer and board member of the

17 transporting organization; each principal officer and

18 board member shall be at least 21 years of age;

19 (5) the details of any administrative or judicial

20 proceeding in which any of the principal officers or board

21 members of the transporting organization (i) pled guilty,

22 were convicted, fined, or had a registration or license

23 suspended or revoked, or (ii) managed or served on the

24 board of a business or non-profit organization that pled

25 guilty, was convicted, fined, or had a registration or

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1 license suspended or revoked;

2 (6) proposed operating bylaws that include procedures

3 for the oversight of the transporting organization,

4 including the development and implementation of an

5 accurate recordkeeping plan, staffing plan, and security

6 plan approved by the Department of State Police that are in

7 accordance with the rules issued by the Department of

8 Agriculture under this Act; a physical inventory shall be

9 performed of all cannabis on a weekly basis by the

10 transporting organization;

11 (7) verification from the Department of State Police

12 that all background checks of the prospective principal

13 officers, board members, and agents of the transporting

14 organization have been conducted;

15 (8) a copy of the current local zoning ordinance or

16 permit and verification that the proposed transporting

17 organization is in compliance with the local zoning rules

18 and distance limitations established by the local

19 jurisdiction, if the transporting organization has a

20 business address;

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

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1 in or business practices that promote economic empowerment

2 in Disproportionately Impacted Areas;

3 (11) the number and type of equipment the transporting

4 organization will use to transport cannabis and

5 cannabis-infused products;

6 (12) loading, transporting, and unloading plans;

7 (13) a description of the applicant's experience in the

8 distribution or security business;

9 (14) the identity of every person having a financial or

10 voting interest of 5% or more in the transporting

11 organization with respect to which the license is sought,

12 whether a trust, corporation, partnership, limited

13 liability company, or sole proprietorship, including the

14 name and address of each person; and

15 (15) any other information required by rule.

16 (b) Applicants must submit all required information,

17 including the information required in Section 40-35 to the

18 Department. Failure by an applicant to submit all required

19 information may result in the application being disqualified.

20 (c) If the Department receives an application with missing

21 information, the Department of Agriculture may issue a

22 deficiency notice to the applicant. The applicant shall have 10

23 calendar days from the date of the deficiency notice to

24 resubmit the incomplete information. Applications that are

25 still incomplete after this opportunity to cure will not be

26 scored and will be disqualified.

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1 Section 40-15. Issuing licenses.

2 (a) The Department of Agriculture shall by rule develop a

3 system to score transporter applications to administratively

4 rank applications based on the clarity, organization, and

5 quality of the applicant's responses to required information.

6 Applicants shall be awarded points based on the following

7 categories:

8 (1) Suitability of employee training plan;

9 (2) Security and recordkeeping plan;

10 (3) Business plan;

11 (4) The applicant's status as a Social Equity

12 Applicant, which shall constitute no less than 20% of total

13 available points;

14 (5) Labor and employment practices, which shall

15 constitute no less than 2% of total available points;

16 (6) Environmental plan that demonstrates an

17 environmental plan of action to minimize the carbon

18 footprint, environmental impact, and resource needs for

19 the transporter, which may include, without limitation,

20 recycling cannabis product packaging;

21 (7) the applicant is 51% or more owned and controlled

22 by an individual or individuals who have been an Illinois

23 resident for the past 5 years as proved by tax records;

24 (8) The applicant is 51% or more controlled and owned

25 by an individual or individuals who meet the qualifications

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1 of a veteran as defined by Section 45-57 of the Illinois

2 Procurement Code;

3 (9) a diversity plan that includes a narrative of not

4 more than 2,500 words that establishes a goal of diversity

5 in ownership, management, employment, and contracting to

6 ensure that diverse participants and groups are afforded

7 equality of opportunity; and

8 (10) Any other criteria the Department of Agriculture

9 may set by rule for points.

10 (b) The Department may also award up to 2 bonus points for

11 the applicant's plan to engage with the community. The

12 applicant may demonstrate a desire to engage with its community

13 by participating in one or more of, but not limited to, the

14 following actions: (i) establishment of an incubator program

15 designed to increase participation in the cannabis industry by

16 persons who would qualify as Social Equity Applicants; (ii)

17 providing financial assistance to substance abuse treatment

18 centers; (iii) educating children and teens about the potential

19 harms of cannabis use; or (iv) other measures demonstrating a

20 commitment to the applicant's community. Bonus points will only

21 be awarded if the Department receives applications that receive

22 an equal score for a particular region.

23 (c) Applicants for transportation organization licenses

24 that score at least 85% of available points according to the

25 system developed by rule and meet all other requirements for a

26 transporter license shall be issued a license by the Department

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1 of Agriculture within 60 days of receiving the application.

2 Applicants that were registered as medical cannabis

3 cultivation centers prior to January 1, 2020 and who meet all

4 other requirements for a transporter license shall be issued a

5 license by the Department of Agriculture within 60 days of

6 receiving the application.

7 (d) Should the applicant be awarded a transportation

8 organization license, the information and plans that an

9 applicant provided in its application, including any plans

10 submitted for the acquiring of bonus points, shall be a

11 mandatory condition of the permit. Any variation from or

12 failure to perform such plans may result in discipline,

13 including the revocation or nonrenewal of a license.

14 (e) Should the applicant be awarded a transporting

15 organization license, the applicant shall pay a prorated fee of

16 $10,000 prior to receiving the license, to be deposited into

17 the Cannabis Regulation Fund. The Department of Agriculture may

18 by rule adjust the fee in this Section after January 1, 2021.

19 Section 40-20. Denial of application. An application for a

20 transportation organization license shall be denied if any of

21 the following conditions are met:

22 (1) the applicant failed to submit the materials

23 required by this Article;

24 (2) the applicant would not be in compliance with local

25 zoning rules or permit requirements;

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1 (3) one or more of the prospective principal officers

2 or board members causes a violation of Section 40-25;

3 (4) one or more of the principal officers or board

4 members is under 21 years of age;

5 (5) the person has submitted an application for a

6 license under this Act that contains false information; or

7 (6) the licensee, principal officer, board member, or

8 person having a financial or voting interest of 5% or

9 greater in the licensee is delinquent in filing any

10 required tax returns or paying any amounts owed to the

11 State of Illinois.

12 Section 40-25. Transporting organization requirements;

13 prohibitions.

14 (a) The operating documents of a transporting organization

15 shall include procedures for the oversight of the transporter,

16 an inventory monitoring system including a physical inventory

17 recorded weekly, accurate recordkeeping, and a staffing plan.

18 (b) A transporting organization may not transport cannabis

19 or cannabis-infused products to any person other than a

20 cultivation center, a craft grower, an infuser organization, a

21 dispensing organization, a testing facility, or as otherwise

22 authorized by rule.

23 (c) All cannabis transported by a transporting

24 organization must be entered into a data collection system and

25 placed into a cannabis container for transport.

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1 (d) Transporters are subject to random inspections by the

2 Department of Agriculture, the Department of Public Health, and

3 the Department of State Police.

4 (e) A transporting organization agent shall notify local

5 law enforcement, the Department of State Police, and the

6 Department of Agriculture within 24 hours of the discovery of

7 any loss or theft. Notification shall be made by phone, in

8 person, or by written or electronic communication.

9 (f) No person under the age of 21 years shall be in a

10 commercial vehicle or trailer transporting cannabis goods.

11 (g) No person or individual who is not a transporting

12 organization agent shall be in a vehicle while transporting

13 cannabis goods.

14 (h) Transporters may not use commercial motor vehicles with

15 a weight rating of over 10,001 pounds.

16 (i) It is unlawful for any person to offer or deliver

17 money, or anything else of value, directly or indirectly, to

18 any of the following persons to obtain preferential placement

19 within the dispensing organization, including, without

20 limitation, on shelves and in display cases where purchasers

21 can view products, or on the dispensing organization's website:

22 (1) a person having a transporting organization

23 license, or any officer, associate, member,

24 representative, or agent of the licensee;

25 (2) a person having an Early Applicant Adult Use

26 Dispensing Organization License, an Adult Use Dispensing

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1 Organization License, or a medical cannabis dispensing

2 organization license issued under the Compassionate Use of

3 Medical Cannabis Pilot Program Act;

4 (3) a person connected with or in any way representing,

5 or a member of the family of, a person holding an Early

6 Applicant Adult Use Dispensing Organization License, an

7 Adult Use Dispensing Organization License, or a medical

8 cannabis dispensing organization license issued under the

9 Compassionate Use of Medical Cannabis Pilot Program Act; or

10 (4) a stockholder, officer, manager, agent, or

11 representative of a corporation engaged in the retail sale

12 of cannabis, an Early Applicant Adult Use Dispensing

13 Organization License, an Adult Use Dispensing Organization

14 License, or a medical cannabis dispensing organization

15 license issued under the Compassionate Use of Medical

16 Cannabis Pilot Program Act.

17 (j) A transportation organization agent must keep his or

18 her identification card visible at all times when on the

19 property of a cannabis business establishment and during the

20 transportation of cannabis when acting under his or her duties

21 as a transportation organization agent. During these times, the

22 transporter organization agent must also provide the

23 identification card upon request of any law enforcement officer

24 engaged in his or her official duties.

25 (k) A copy of the transporting organization's registration

26 and a manifest for the delivery shall be present in any vehicle

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1 transporting cannabis.

2 (l) Cannabis shall be transported so it is not visible or

3 recognizable from outside the vehicle.

4 (m) A vehicle transporting cannabis must not bear any

5 markings to indicate the vehicle contains cannabis or bear the

6 name or logo of the cannabis business establishment.

7 (n) Cannabis must be transported in an enclosed, locked

8 storage compartment that is secured or affixed to the vehicle.

9 (o) The Department of Agriculture may, by rule, impose any

10 other requirements or prohibitions on the transportation of

11 cannabis.

12 Section 40-30. Transporting agent identification card.

13 (a) The Department of Agriculture shall:

14 (1) establish by rule the information required in an

15 initial application or renewal application for an agent

16 identification card submitted under this Act and the

17 nonrefundable fee to accompany the initial application or

18 renewal application;

19 (2) verify the information contained in an initial

20 application or renewal application for an agent

21 identification card submitted under this Act and approve or

22 deny an application within 30 days of receiving a completed

23 initial application or renewal application and all

24 supporting documentation required by rule;

25 (3) issue an agent identification card to a qualifying

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1 agent within 15 business days of approving the initial

2 application or renewal application;

3 (4) enter the license number of the transporting

4 organization where the agent works; and

5 (5) allow for an electronic initial application and

6 renewal application process, and provide a confirmation by

7 electronic or other methods that an application has been

8 submitted. The Department of Agriculture may by rule

9 require prospective agents to file their applications by

10 electronic means and provide notices to the agents by

11 electronic means.

12 (b) An agent must keep his or her identification card

13 visible at all times when on the property of a cannabis

14 business establishment, including the cannabis business

15 establishment for which he or she is an agent.

16 (c) The agent identification cards shall contain the

17 following:

18 (1) the name of the cardholder;

19 (2) the date of issuance and expiration date of the

20 identification card;

21 (3) a random 10-digit alphanumeric identification

22 number containing at least 4 numbers and at least 4 letters

23 that is unique to the holder;

24 (4) a photograph of the cardholder; and

25 (5) the legal name of the transporter organization

26 employing the agent.

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1 (d) An agent identification card shall be immediately

2 returned to the transporter organization of the agent upon

3 termination of his or her employment.

4 (e) Any agent identification card lost by a transporting

5 agent shall be reported to the Department of State Police and

6 the Department of Agriculture immediately upon discovery of the

7 loss.

8 (f) An application for an agent identification card shall

9 be denied if the applicant is delinquent in filing any required

10 tax returns or paying any amounts owed to the State of

11 Illinois.

12 Section 40-35. Transporting organization background

13 checks.

14 (a) Through the Department of State Police, the Department

15 of Agriculture shall conduct a background check of the

16 prospective principal officers, board members, and agents of a

17 transporter applying for a license or identification card under

18 this Act. The Department of State Police shall charge a fee set

19 by rule for conducting the criminal history record check, which

20 shall be deposited into the State Police Services Fund and

21 shall not exceed the actual cost of the record check. In order

22 to carry out this provision, each transporter organization's

23 prospective principal officer, board member, or agent shall

24 submit a full set of fingerprints to the Department of State

25 Police for the purpose of obtaining a State and federal

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1 criminal records check. These fingerprints shall be checked

2 against the fingerprint records now and hereafter, to the

3 extent allowed by law, filed in the Department of State Police

4 and Federal Bureau of Investigation criminal history records

5 databases. The Department of State Police shall furnish,

6 following positive identification, all conviction information

7 to the Department of Agriculture.

8 (b) When applying for the initial license or identification

9 card, the background checks for all prospective principal

10 officers, board members, and agents shall be completed before

11 submitting the application to the Department of Agriculture.

12 Section 40-40. Renewal of transporting organization

13 licenses and agent identification cards.

14 (a) Licenses and identification cards issued under this Act

15 shall be renewed annually. A transporting organization shall

16 receive written or electronic notice 90 days before the

17 expiration of its current license that the license will expire.

18 The Department of Agriculture shall grant a renewal within 45

19 days of submission of a renewal application if:

20 (1) the transporting organization submits a renewal

21 application and the required nonrefundable renewal fee of

22 $10,000, or after January 1, 2021, another amount set by

23 rule by the Department of Agriculture, to be deposited into

24 the Cannabis Regulation Fund;

25 (2) the Department of Agriculture has not suspended or

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1 revoked the license of the transporting organization for

2 violating this Act or rules adopted under this Act;

3 (3) the transporting organization has continued to

4 operate in accordance with all plans submitted as part of

5 its application and approved by the Department of

6 Agriculture or any amendments thereto that have been

7 approved by the Department of Agriculture; and

8 (4) the transporter has submitted an agent, employee,

9 contracting, and subcontracting diversity report as

10 required by the Department.

11 (b) If a transporting organization fails to renew its

12 license before expiration, it shall cease operations until its

13 license is renewed.

14 (c) If a transporting organization agent fails to renew his

15 or her identification card before its expiration, he or she

16 shall cease to work as an agent of the transporter organization

17 until his or her identification card is renewed.

18 (d) Any transporting organization that continues to

19 operate, or any transporting organization agent who continues

20 to work as an agent, after the applicable license or

21 identification card has expired without renewal is subject to

22 the penalties provided under Section 45-5.

23 (e) The Department shall not renew a license or an agent

24 identification card if the applicant is delinquent in filing

25 any required tax returns or paying any amounts owed to the

26 State of Illinois.

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1 ARTICLE 45.

2 ENFORCEMENT AND IMMUNITIES

3 Section 45-5. License suspension; revocation; other

4 penalties.

5 (a) Notwithstanding any other criminal penalties related

6 to the unlawful possession of cannabis, the Department of

7 Financial and Professional Regulation and the Department of

8 Agriculture may revoke, suspend, place on probation,

9 reprimand, issue cease and desist orders, refuse to issue or

10 renew a license, or take any other disciplinary or

11 nondisciplinary action as each department may deem proper with

12 regard to a cannabis business establishment or cannabis

13 business establishment agent, including fines not to exceed:

14 (1) $50,000 for each violation of this Act or rules

15 adopted under this Act by a cultivation center or

16 cultivation center agent;

17 (2) $10,000 for each violation of this Act or rules

18 adopted under this Act by a dispensing organization or

19 dispensing organization agent;

20 (3) $15,000 for each violation of this Act or rules

21 adopted under this Act by a craft grower or craft grower

22 agent;

23 (4) $10,000 for each violation of this Act or rules

24 adopted under this Act by an infuser organization or

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1 infuser organization agent; and

2 (5) $10,000 for each violation of this Act or rules

3 adopted under this Act by a transporting organization or

4 transporting organization agent.

5 (b) The Department of Financial and Professional

6 Regulation and the Department of Agriculture, as the case may

7 be, shall consider licensee cooperation in any agency or other

8 investigation in its determination of penalties imposed under

9 this Section.

10 (c) The procedures for disciplining a cannabis business

11 establishment or cannabis business establishment agent and for

12 administrative hearings shall be determined by rule, and shall

13 provide for the review of final decisions under the

14 Administrative Review Law.

15 (d) The Attorney General may also enforce a violation of

16 Section 55-20, Section 55-21, and Section 15-155 as an unlawful

17 practice under the Consumer Fraud and Deceptive Business

18 Practices Act.

19 Section 45-10. Immunities and presumptions related to the

20 handling of cannabis by cannabis business establishments and

21 their agents.

22 (a) A cultivation center, craft grower, infuser

23 organization, or transporting organization is not subject to:

24 (i) prosecution; (ii) search or inspection, except by the

25 Department of Agriculture, the Department of Public Health, or

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1 State or local law enforcement under this Act; (iii) seizure;

2 (iv) penalty in any manner, including, but not limited to,

3 civil penalty; (v) denial of any right or privilege; or (vi)

4 disciplinary action by a business licensing board or entity for

5 acting under this Act and rules adopted under this Act to

6 acquire, possess, cultivate, manufacture, process, deliver,

7 transfer, transport, supply, or sell cannabis or cannabis

8 paraphernalia under this Act.

9 (b) A licensed cultivation center agent, licensed craft

10 grower agent, licensed infuser organization agent, or licensed

11 transporting organization agent is not subject to: (i)

12 prosecution; (ii) search; (iii) penalty in any manner,

13 including, but not limited to, civil penalty; (iv) denial of

14 any right or privilege; or (v) disciplinary action by a

15 business licensing board or entity, for engaging in

16 cannabis-related activities authorized under this Act and

17 rules adopted under this Act.

18 (c) A dispensing organization is not subject to: (i)

19 prosecution; (ii) search or inspection, except by the

20 Department of Financial and Professional Regulation, or State

21 or local law enforcement under this Act; (iii) seizure; (iv)

22 penalty in any manner, including, but not limited to, civil

23 penalty; (v) denial of any right or privilege; or (vi)

24 disciplinary action by a business licensing board or entity,

25 for acting under this Act and rules adopted under this Act to

26 acquire, possess, or dispense cannabis, cannabis-infused

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1 products, cannabis paraphernalia, or related supplies, and

2 educational materials under this Act.

3 (d) A licensed dispensing organization agent is not subject

4 to: (i) prosecution; (ii) search; or (iii) penalty in any

5 manner, or denial of any right or privilege, including, but not

6 limited to, civil penalty or disciplinary action by a business

7 licensing board or entity, for working for a dispensing

8 organization under this Act and rules adopted under this Act.

9 (e) Any cannabis, cannabis-infused product, cannabis

10 paraphernalia, legal property, or interest in legal property

11 that is possessed, owned, or used in connection with the use of

12 cannabis as allowed under this Act, or acts incidental to that

13 use, may not be seized or forfeited. This Act does not prevent

14 the seizure or forfeiture of cannabis exceeding the amounts

15 allowed under this Act, nor does it prevent seizure or

16 forfeiture if the basis for the action is unrelated to the

17 cannabis that is possessed, manufactured, transferred, or used

18 under this Act.

19 (f) Nothing in this Act shall preclude local or State law

20 enforcement agencies from searching a cultivation center,

21 craft grower, infuser organization, transporting organization,

22 or dispensing organization if there is probable cause to

23 believe that the criminal laws of this State have been violated

24 and the search is conducted in conformity with the Illinois

25 Constitution, the Constitution of the United States, and

26 applicable law.

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1 (g) Nothing in this Act shall preclude the Attorney General

2 or other authorized government agency from investigating or

3 bringing a civil action against a cannabis business

4 establishment, or an agent thereof, for a violation of State

5 law, including, but not limited to, civil rights violations and

6 violations of the Consumer Fraud and Deceptive Business

7 Practices Act.

8 Section 45-15. State standards and requirements. Any

9 standards, requirements, and rules regarding the health and

10 safety, environmental protection, testing, security, food

11 safety, and worker protections established by the State shall

12 be the minimum standards for all licensees under this Act

13 statewide, where applicable. Knowing violations of any State or

14 local law, ordinance, or rule conferring worker protections or

15 legal rights on the employees of a licensee may be grounds for

16 disciplinary action under this Act, in addition to penalties

17 established elsewhere.

18 Section 45-20. Violation of tax Acts; refusal, revocation,

19 or suspension of license or agent identification card.

20 (a) In addition to other grounds specified in this Act, the

21 Department of Agriculture and Department of Financial and

22 Professional Regulation, upon notification by the Department

23 of Revenue, shall refuse the issuance or renewal of a license

24 or agent identification card, or suspend or revoke the license

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1 or agent identification card, of any person, for any of the

2 following violations of any tax Act administered by the

3 Department of Revenue:

4 (1) Failure to file a tax return.

5 (2) The filing of a fraudulent return.

6 (3) Failure to pay all or part of any tax or penalty

7 finally determined to be due.

8 (4) Failure to keep books and records.

9 (5) Failure to secure and display a certificate or

10 sub-certificate of registration, if required.

11 (6) Willful violation of any rule or regulation of the

12 Department relating to the administration and enforcement

13 of tax liability.

14 (b) After all violations of any of items (1) through (6) of

15 subsection (a) have been corrected or resolved, the Department

16 shall, upon request of the applicant or, if not requested, may

17 notify the entities listed in subsection (a) that the

18 violations have been corrected or resolved. Upon receiving

19 notice from the Department that a violation of any of items (1)

20 through (6) of subsection (a) have been corrected or otherwise

21 resolved to the Department of Revenue's satisfaction, the

22 Department of Agriculture and the Department of Financial and

23 Professional Regulation may issue or renew the license or agent

24 identification card, or vacate an order of suspension or

25 revocation.

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1 ARTICLE 50.

2 LABORATORY TESTING

3 Section 50-5. Laboratory testing.

4 (a) Notwithstanding any other provision of law, the

5 following acts, when performed by a cannabis testing facility

6 with a current, valid registration, or a person 21 years of age

7 or older who is acting in his or her capacity as an owner,

8 employee, or agent of a cannabis testing facility, are not

9 unlawful and shall not be an offense under Illinois law or be a

10 basis for seizure or forfeiture of assets under Illinois law:

11 (1) possessing, repackaging, transporting, storing, or

12 displaying cannabis or cannabis-infused products;

13 (2) receiving or transporting cannabis or

14 cannabis-infused products from a cannabis business

15 establishment, a community college licensed under the

16 Community College Cannabis Vocational Training Pilot

17 Program, or a person 21 years of age or older; and

18 (3) returning or transporting cannabis or

19 cannabis-infused products to a cannabis business

20 establishment, a community college licensed under the

21 Community College Cannabis Vocational Training Pilot

22 Program, or a person 21 years of age or older.

23 (b)(1) No laboratory shall handle, test, or analyze

24 cannabis unless approved by the Department of Agriculture in

25 accordance with this Section.

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1 (2) No laboratory shall be approved to handle, test, or

2 analyze cannabis unless the laboratory:

3 (A) is accredited by a private laboratory accrediting

4 organization;

5 (B) is independent from all other persons involved in

6 the cannabis industry in Illinois and no person with a

7 direct or indirect interest in the laboratory has a direct

8 or indirect financial, management, or other interest in an

9 Illinois cultivation center, craft grower, dispensary,

10 infuser, transporter, certifying physician, or any other

11 entity in the State that may benefit from the production,

12 manufacture, dispensing, sale, purchase, or use of

13 cannabis; and

14 (C) has employed at least one person to oversee and be

15 responsible for the laboratory testing who has earned, from

16 a college or university accredited by a national or

17 regional certifying authority, at least:

18 (i) a master's level degree in chemical or

19 biological sciences and a minimum of 2 years'

20 post-degree laboratory experience; or

21 (ii) a bachelor's degree in chemical or biological

22 sciences and a minimum of 4 years' post-degree

23 laboratory experience.

24 (3) Each independent testing laboratory that claims to be

25 accredited must provide the Department of Agriculture with a

26 copy of the most recent annual inspection report granting

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1 accreditation and every annual report thereafter.

2 (c) Immediately before manufacturing or natural processing

3 of any cannabis or cannabis-infused product or packaging

4 cannabis for sale to a dispensary, each batch shall be made

5 available by the cultivation center, craft grower, or infuser

6 for an employee of an approved laboratory to select a random

7 sample, which shall be tested by the approved laboratory for:

8 (1) microbiological contaminants;

9 (2) mycotoxins;

10 (3) pesticide active ingredients;

11 (4) residual solvent; and

12 (5) an active ingredient analysis.

13 (d) The Department of Agriculture may select a random

14 sample that shall, for the purposes of conducting an active

15 ingredient analysis, be tested by the Department of Agriculture

16 for verification of label information.

17 (e) A laboratory shall immediately return or dispose of any

18 cannabis upon the completion of any testing, use, or research.

19 If cannabis is disposed of, it shall be done in compliance with

20 Department of Agriculture rule.

21 (f) If a sample of cannabis does not pass the

22 microbiological, mycotoxin, pesticide chemical residue, or

23 solvent residue test, based on the standards established by the

24 Department of Agriculture, the following shall apply:

25 (1) If the sample failed the pesticide chemical residue

26 test, the entire batch from which the sample was taken

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1 shall, if applicable, be recalled as provided by rule.

2 (2) If the sample failed any other test, the batch may

3 be used to make a CO₂-based or solvent based extract. After

4 processing, the CO₂-based or solvent based extract must

5 still pass all required tests.

6 (g) The Department of Agriculture shall establish

7 standards for microbial, mycotoxin, pesticide residue, solvent

8 residue, or other standards for the presence of possible

9 contaminants, in addition to labeling requirements for

10 contents and potency.

11 (h) The laboratory shall file with the Department of

12 Agriculture an electronic copy of each laboratory test result

13 for any batch that does not pass the microbiological,

14 mycotoxin, or pesticide chemical residue test, at the same time

15 that it transmits those results to the cultivation center. In

16 addition, the laboratory shall maintain the laboratory test

17 results for at least 5 years and make them available at the

18 Department of Agriculture's request.

19 (i) A cultivation center, craft grower, and infuser shall

20 provide to a dispensing organization the laboratory test

21 results for each batch of cannabis product purchased by the

22 dispensing organization, if sampled. Each dispensary

23 organization must have those laboratory results available upon

24 request to purchasers.

25 (j) The Department of Agriculture may adopt rules related

26 to testing in furtherance of this Act.

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1 ARTICLE 55.

2 GENERAL PROVISIONS

3 Section 55-5. Preparation of cannabis-infused products.

4 (a) The Department of Agriculture may regulate the

5 production of cannabis-infused products by a cultivation

6 center, a craft grower, an infuser organization, or a

7 dispensing organization and establish rules related to

8 refrigeration, hot-holding, and handling of cannabis-infused

9 products. All cannabis-infused products shall meet the

10 packaging and labeling requirements contained in Section

11 55-21.

12 (b) Cannabis-infused products for sale or distribution at a

13 dispensing organization must be prepared by an approved agent

14 of a cultivation center or infuser organization.

15 (c) A cultivation center or infuser organization that

16 prepares cannabis-infused products for sale or distribution by

17 a dispensing organization shall be under the operational

18 supervision of a Department of Public Health certified food

19 service sanitation manager.

20 (d) Dispensing organizations may not manufacture, process,

21 or produce cannabis-infused products.

22 (e) The Department of Public Health shall adopt and enforce

23 rules for the manufacture and processing of cannabis-infused

24 products, and for that purpose it may at all times enter every

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1 building, room, basement, enclosure, or premises occupied or

2 used, or suspected of being occupied or used, for the

3 production, preparation, manufacture for sale, storage, sale,

4 processing, distribution, or transportation of

5 cannabis-infused products, and to inspect the premises

6 together with all utensils, fixtures, furniture, and machinery

7 used for the preparation of these products.

8 (f) The Department of Agriculture shall by rule establish a

9 maximum level of THC that may be contained in each serving of

10 cannabis-infused product, and within the product package.

11 (g) If a local public health agency has a reasonable belief

12 that a cannabis-infused product poses a public health hazard,

13 it may refer the cultivation center, craft grower, or infuser

14 that manufactured or processed the cannabis-infused product to

15 the Department of Public Health. If the Department of Public

16 Health finds that a cannabis-infused product poses a health

17 hazard, it may bring an action for immediate injunctive relief

18 to require that action be taken as the court may deem necessary

19 to meet the hazard of the cultivation facility or seek other

20 relief as provided by rule.

21 Section 55-10. Maintenance of inventory. All dispensing

22 organizations authorized to serve both registered qualifying

23 patients and caregivers and purchasers are required to report

24 which cannabis and cannabis-infused products are purchased for

25 sale under the Compassionate Use of Medical Cannabis Pilot

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1 Program Act, and which cannabis and cannabis-infused products

2 are purchased under this Act. Nothing in this Section prohibits

3 a registered qualifying patient under the Compassionate Use of

4 Medical Cannabis Pilot Program Act from purchasing cannabis as

5 a purchaser under this Act.

6 Section 55-15. Destruction of cannabis.

7 (a) All cannabis byproduct, scrap, and harvested cannabis

8 not intended for distribution to a dispensing organization must

9 be destroyed and disposed of under rules adopted by the

10 Department of Agriculture under this Act. Documentation of

11 destruction and disposal shall be retained at the cultivation

12 center, craft grower, infuser organization, transporter, or

13 testing facility as applicable for a period of not less than 5

14 years.

15 (b) A cultivation center, craft grower, or infuser

16 organization shall, before destruction, notify the Department

17 of Agriculture and the Department of State Police. A dispensing

18 organization shall, before destruction, notify the Department

19 of Financial and Professional Regulation and the Department of

20 State Police. The Department of Agriculture may by rule require

21 that an employee of the Department of Agriculture or the

22 Department of Financial and Professional Regulation be present

23 during the destruction of any cannabis byproduct, scrap, and

24 harvested cannabis, as applicable.

25 (c) The cultivation center, craft grower, infuser

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1 organization, or dispensing organization shall keep a record of

2 the date of destruction and how much was destroyed.

3 (d) A dispensing organization shall destroy all cannabis,

4 including cannabis-infused products, not sold to purchasers.

5 Documentation of destruction and disposal shall be retained at

6 the dispensing organization for a period of not less than 5

7 years.

8 Section 55-20. Advertising and promotions.

9 (a) No cannabis business establishment nor any other person

10 or entity shall engage in advertising that contains any

11 statement or illustration that:

12 (1) is false or misleading;

13 (2) promotes overconsumption of cannabis or cannabis

14 products;

15 (3) depicts the actual consumption of cannabis or

16 cannabis products;

17 (4) depicts a person under 21 years of age consuming

18 cannabis;

19 (5) makes any health, medicinal, or therapeutic claims

20 about cannabis or cannabis-infused products;

21 (6) includes the image of a cannabis leaf or bud; or

22 (7) includes any image designed or likely to appeal to

23 minors, including cartoons, toys, animals, or children, or

24 any other likeness to images, characters, or phrases that

25 is designed in any manner to be appealing to or encourage

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1 consumption of persons under 21 years of age.

2 (b) No cannabis business establishment nor any other person

3 or entity shall place or maintain, or cause to be placed or

4 maintained, an advertisement of cannabis or a cannabis-infused

5 product in any form or through any medium:

6 (1) within 1,000 feet of the perimeter of school

7 grounds, a playground, a recreation center or facility, a

8 child care center, a public park or public library, or a

9 game arcade to which admission is not restricted to persons

10 21 years of age or older;

11 (2) on or in a public transit vehicle or public transit

12 shelter;

13 (3) on or in publicly owned or publicly operated

14 property; or

15 (4) that contains information that:

16 (A) is false or misleading;

17 (B) promotes excessive consumption;

18 (C) depicts a person under 21 years of age

19 consuming cannabis;

20 (D) includes the image of a cannabis leaf; or

21 (E) includes any image designed or likely to appeal

22 to minors, including cartoons, toys, animals, or

23 children, or any other likeness to images, characters,

24 or phrases that are popularly used to advertise to

25 children, or any imitation of candy packaging or

26 labeling, or that promotes consumption of cannabis.

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1 (c) Subsections (a) and (b) do not apply to an educational

2 message.

3 (d) Sales promotions. No cannabis business establishment

4 nor any other person or entity may encourage the sale of

5 cannabis or cannabis products by giving away cannabis or

6 cannabis products, by conducting games or competitions related

7 to the consumption of cannabis or cannabis products, or by

8 providing promotional materials or activities of a manner or

9 type that would be appealing to children.

10 Section 55-21. Cannabis product packaging and labeling.

11 (a) Each cannabis product produced for sale shall be

12 registered with the Department of Agriculture on forms provided

13 by the Department of Agriculture. Each product registration

14 shall include a label and the required registration fee at the

15 rate established by the Department of Agriculture for a

16 comparable medical cannabis product, or as established by rule.

17 The registration fee is for the name of the product offered for

18 sale and one fee shall be sufficient for all package sizes.

19 (b) All harvested cannabis intended for distribution to a

20 cannabis enterprise must be packaged in a sealed, labeled

21 container.

22 (c) Any product containing cannabis shall be packaged in a

23 sealed, odor-proof, and child-resistant cannabis container

24 consistent with current standards, including the Consumer

25 Product Safety Commission standards referenced by the Poison

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1 Prevention Act.

2 (d) All cannabis-infused products shall be individually

3 wrapped or packaged at the original point of preparation. The

4 packaging of the cannabis-infused product shall conform to the

5 labeling requirements of the Illinois Food, Drug and Cosmetic

6 Act, in addition to the other requirements set forth in this

7 Section.

8 (e) Each cannabis product shall be labeled before sale and

9 each label shall be securely affixed to the package and shall

10 state in legible English and any languages required by the

11 Department of Agriculture:

12 (1) The name and post office box of the registered

13 cultivation center or craft grower where the item was

14 manufactured;

15 (2) The common or usual name of the item and the

16 registered name of the cannabis product that was registered

17 with the Department of Agriculture under subsection (a);

18 (3) A unique serial number that will match the product

19 with a cultivation center or craft grower batch and lot

20 number to facilitate any warnings or recalls the Department

21 of Agriculture, cultivation center, or craft grower deems

22 appropriate;

23 (4) The date of final testing and packaging, if

24 sampled, and the identification of the independent testing

25 laboratory;

26 (5) The date of harvest and "use by" date;

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1 (6) The quantity (in ounces or grams) of cannabis

2 contained in the product;

3 (7) A pass/fail rating based on the laboratory's

4 microbiological, mycotoxins, and pesticide and solvent

5 residue analyses, if sampled.

6 (8) Content list.

7 (A) A list of the following, including the minimum

8 and maximum percentage content by weight for

9 subdivisions (d)(8)(A)(i) through (iv):

10 (i) delta-9-tetrahydrocannabinol (THC);

11 (ii) tetrahydrocannabinolic acid (THCA);

12 (iii) cannabidiol (CBD);

13 (iv) cannabidiolic acid (CBDA); and

14 (v) all other ingredients of the item,

15 including any colors, artificial flavors, and

16 preservatives, listed in descending order by

17 predominance of weight shown with common or usual

18 names.

19 (B) The acceptable tolerances for the minimum

20 percentage printed on the label for any of subdivisions

21 (d)(8)(A)(i) through (iv) shall not be below 85% or

22 above 115% of the labeled amount;

23 (f) Packaging must not contain information that:

24 (1) is false or misleading;

25 (2) promotes excessive consumption;

26 (3) depicts a person under 21 years of age consuming

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1 cannabis;

2 (4) includes the image of a cannabis leaf;

3 (5) includes any image designed or likely to appeal to

4 minors, including cartoons, toys, animals, or children, or

5 any other likeness to images, characters, or phrases that

6 are popularly used to advertise to children, or any

7 packaging or labeling that bears reasonable resemblance to

8 any product available for consumption as a commercially

9 available candy, or that promotes consumption of cannabis;

10 (6) contains any seal, flag, crest, coat of arms, or

11 other insignia likely to mislead the purchaser to believe

12 that the product has been endorsed, made, or used by the

13 State of Illinois or any of its representatives except

14 where authorized by this Act.

15 (g) Cannabis products produced by concentrating or

16 extracting ingredients from the cannabis plant shall contain

17 the following information, where applicable:

18 (1) If solvents were used to create the concentrate or

19 extract, a statement that discloses the type of extraction

20 method, including any solvents or gases used to create the

21 concentrate or extract; and

22 (2) Any other chemicals or compounds used to produce or

23 were added to the concentrate or extract.

24 (h) All cannabis products must contain warning statements

25 established for purchasers, of a size that is legible and

26 readily visible to a consumer inspecting a package, which may

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1 not be covered or obscured in any way. The Department of Public

2 Health shall define and update appropriate health warnings for

3 packages including specific labeling or warning requirements

4 for specific cannabis products.

5 (i) Unless modified by rule to strengthen or respond to new

6 evidence and science, the following warnings shall apply to all

7 cannabis products unless modified by rule: "This product

8 contains cannabis and is intended for use by adults 21 and

9 over. Its use can impair cognition and may be habit forming.

10 This product should not be used by pregnant or breastfeeding

11 women. It is unlawful to sell or provide this item to any

12 individual, and it may not be transported outside the State of

13 Illinois. It is illegal to operate a motor vehicle while under

14 the influence of cannabis. Possession or use of this product

15 may carry significant legal penalties in some jurisdictions and

16 under federal law.".

17 (j) Warnings for each of the following product types must

18 be present on labels when offered for sale to a purchaser:

19 (1) Cannabis that may be smoked must contain a

20 statement that "Smoking is hazardous to your health.".

21 (2) Cannabis-infused products (other than those

22 intended for topical application) must contain a statement

23 "CAUTION: This product contains cannabis, and intoxication

24 following use may be delayed 2 or more hours. This product

25 was produced in a facility that cultivates cannabis, and

26 that may also process common food allergens.".

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1 (3) Cannabis-infused products intended for topical

2 application must contain a statement "DO NOT EAT" in bold,

3 capital letters.

4 (k) Each cannabis-infused product intended for consumption

5 must be individually packaged, must include the total milligram

6 content of THC and CBD, and may not include more than a total

7 of 100 milligrams of THC per package. A package may contain

8 multiple servings of 10 milligrams of THC, and indicated by

9 scoring, wrapping, or by other indicators designating

10 individual serving sizes. The Department of Agriculture may

11 change the total amount of THC allowed for each package, or the

12 total amount of THC allowed for each serving size, by rule.

13 (l) No individual other than the purchaser may alter or

14 destroy any labeling affixed to the primary packaging of

15 cannabis or cannabis-infused products.

16 (m) For each commercial weighing and measuring device used

17 at a facility, the cultivation center or craft grower must:

18 (1) Ensure that the commercial device is licensed under

19 the Weights and Measures Act and the associated

20 administrative rules (8 Ill. Adm. Code 600);

21 (2) Maintain documentation of the licensure of the

22 commercial device; and

23 (3) Provide a copy of the license of the commercial

24 device to the Department of Agriculture for review upon

25 request.

26 (n) It is the responsibility of the Department to ensure

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1 that packaging and labeling requirements, including product

2 warnings, are enforced at all times for products provided to

3 purchasers. Product registration requirements and container

4 requirements may be modified by rule by the Department of

5 Agriculture.

6 (o) Labeling, including warning labels, may be modified by

7 rule by the Department of Agriculture.

8 Section 55-25. Local ordinances. Unless otherwise provided

9 under this Act or otherwise in accordance with State law:

10 (1) A unit of local government, including a home rule

11 unit or any non-home rule county within the unincorporated

12 territory of the county, may enact reasonable zoning

13 ordinances or resolutions, not in conflict with this Act or

14 rules adopted pursuant to this Act, regulating cannabis

15 business establishments. No unit of local government,

16 including a home rule unit or any non-home rule county

17 within the unincorporated territory of the county, may

18 prohibit home cultivation or unreasonably prohibit use of

19 cannabis authorized by this Act.

20 (2) A unit of local government, including a home rule

21 unit or any non-home rule county within the unincorporated

22 territory of the county, may enact ordinances or rules not

23 in conflict with this Act or with rules adopted pursuant to

24 this Act governing the time, place, manner, and number of

25 cannabis business establishment operations, including

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1 minimum distance limitations between cannabis business

2 establishments and locations it deems sensitive, including

3 colleges and universities, through the use of conditional

4 use permits. A unit of local government, including a home

5 rule unit, may establish civil penalties for violation of

6 an ordinance or rules governing the time, place, and manner

7 of operation of a cannabis business establishment or a

8 conditional use permit in the jurisdiction of the unit of

9 local government. No unit of local government, including a

10 home rule unit or non-home rule county within an

11 unincorporated territory of the county, may unreasonably

12 restrict the time, place, manner, and number of cannabis

13 business establishment operations authorized by this Act.

14 (3) A unit of local government, including a home rule

15 unit, or any non-home rule county within the unincorporated

16 territory of the county may regulate the on-premises

17 consumption of cannabis at or in a cannabis business

18 establishment within its jurisdiction in a manner

19 consistent with this Act. A cannabis business

20 establishment or other entity authorized or permitted by a

21 unit of local government to allow on-site consumption shall

22 not be deemed a public place within the meaning of the

23 Smoke Free Illinois Act.

24 (4) A unit of local government, including a home rule

25 unit or any non-home rule county within the unincorporated

26 territory of the county, may not regulate the activities

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1 described in paragraph (1), (2), or (3) in a manner more

2 restrictive than the regulation of those activities by the

3 State under this Act. This Section is a limitation under

4 subsection (i) of Section 6 of Article VII of the Illinois

5 Constitution on the concurrent exercise by home rule units

6 of powers and functions exercised by the State.

7 (5) A unit of local government, including a home rule

8 unit or any non-home rule county within the unincorporated

9 territory of the county, may enact ordinances to prohibit

10 or significantly limit a cannabis business establishment's

11 location.

12 Section 55-28. Restricted cannabis zones.

13 (a) As used in this Section:

14 "Legal voter" means a person:

15 (1) who is duly registered to vote in a municipality

16 with a population of over 500,000;

17 (2) whose name appears on a poll list compiled by the

18 city board of election commissioners since the last

19 preceding election, regardless of whether the election was

20 a primary, general, or special election;

21 (3) who, at the relevant time, is a resident of the

22 address at which he or she is registered to vote; and

23 (4) whose address, at the relevant time, is located in

24 the precinct where such person seeks to circulate or sign a

25 petition under this Section.

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1 As used in the definition of "legal voter", "relevant time"

2 means any time that:

3 (i) a notice of intent is filed, pursuant to subsection

4 (c) of this Section, to initiate the petition process under

5 this Section;

6 (ii) the petition is circulated for signature in the

7 applicable precinct; or

8 (iii) the petition is signed by registered voters in

9 the applicable precinct.

10 "Petition" means the petition described in this Section.

11 "Precinct" means the smallest constituent territory within

12 a municipality with a population of over 500,000 in which

13 electors vote as a unit at the same polling place in any

14 election governed by the Election Code.

15 "Restricted cannabis zone" means a precinct within which

16 home cultivation, one or more types of cannabis business

17 establishments, or both has been prohibited pursuant to an

18 ordinance initiated by a petition under this Section.

19 (b) The legal voters of any precinct within a municipality

20 with a population of over 500,000 may petition their local

21 alderman, using a petition form made available online by the

22 city clerk, to introduce an ordinance establishing the precinct

23 as a restricted zone. Such petition shall specify whether it

24 seeks an ordinance to prohibit, within the precinct: (i) home

25 cultivation; (ii) one or more types of cannabis business

26 establishments; or (iii) home cultivation and one or more types

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1 of cannabis business establishments.

2 Upon receiving a petition containing the signatures of at

3 least 25% of the registered voters of the precinct, and

4 concluding that the petition is legally sufficient following

5 the posting and review process in subsection (c) of this

6 Section, the city clerk shall notify the local alderman of the

7 ward in which the precinct is located. Upon being notified,

8 that alderman, following an assessment of relevant factors

9 within the precinct, including but not limited to, its

10 geography, density and character, the prevalence of

11 residentially zoned property, current licensed cannabis

12 business establishments in the precinct, the current amount of

13 home cultivation in the precinct, and the prevailing viewpoint

14 with regard to the issue raised in the petition, may introduce

15 an ordinance to the municipality's governing body creating a

16 restricted cannabis zone in that precinct.

17 (c) A person seeking to initiate the petition process

18 described in this Section shall first submit to the city clerk

19 notice of intent to do so, on a form made available online by

20 the city clerk. That notice shall include a description of the

21 potentially affected area and the scope of the restriction

22 sought. The city clerk shall publicly post the submitted notice

23 online.

24 To be legally sufficient, a petition must contain the

25 requisite number of valid signatures and all such signatures

26 must be obtained within 90 days of the date that the city clerk

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1 publicly posts the notice of intent. Upon receipt, the city

2 clerk shall post the petition on the municipality's website for

3 a 30-day comment period. The city clerk is authorized to take

4 all necessary and appropriate steps to verify the legal

5 sufficiency of a submitted petition. Following the petition

6 review and comment period, the city clerk shall publicly post

7 online the status of the petition as accepted or rejected, and

8 if rejected, the reasons therefor. If the city clerk rejects a

9 petition as legally insufficient, a minimum of 12 months must

10 elapse from the time the city clerk posts the rejection notice

11 before a new notice of intent for that same precinct may be

12 submitted.

13 (d) Notwithstanding any law to the contrary, the

14 municipality may enact an ordinance creating a restricted

15 cannabis zone. The ordinance shall:

16 (1) identify the applicable precinct boundaries as of

17 the date of the petition;

18 (2) state whether the ordinance prohibits within the

19 defined boundaries of the precinct, and in what

20 combination: (A) one or more types of cannabis business

21 establishments; or (B) home cultivation;

22 (3) be in effect for 4 years, unless repealed earlier;

23 and

24 (4) once in effect, be subject to renewal by ordinance

25 at the expiration of the 4-year period without the need for

26 another supporting petition.

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1 Section 55-30. Confidentiality.

2 (a) Information provided by the cannabis business

3 establishment licensees or applicants to the Department of

4 Agriculture, the Department of Public Health, the Department of

5 Financial and Professional Regulation, the Department of

6 Commerce and Economic Opportunity, or other agency shall be

7 limited to information necessary for the purposes of

8 administering this Act. The information is subject to the

9 provisions and limitations contained in the Freedom of

10 Information Act and may be disclosed in accordance with Section

11 55-65.

12 (b) The following information received and records kept by

13 the Department of Agriculture, the Department of Public Health,

14 the Department of State Police, and the Department of Financial

15 and Professional Regulation for purposes of administering this

16 Article are subject to all applicable federal privacy laws, are

17 confidential and exempt from disclosure under the Freedom of

18 Information Act, except as provided in this Act, and not

19 subject to disclosure to any individual or public or private

20 entity, except to the Department of Financial and Professional

21 Regulation, the Department of Agriculture, the Department of

22 Public Health, and the Department of State Police as necessary

23 to perform official duties under this Article. The following

24 information received and kept by the Department of Financial

25 and Professional Regulation or the Department of Agriculture,

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1 excluding any existing or non-existing Illinois or national

2 criminal history record information, may be disclosed to the

3 Department of Public Health, the Department of Agriculture, the

4 Department of Revenue, or the Department of State Police upon

5 request:

6 (1) Applications and renewals, their contents, and

7 supporting information submitted by or on behalf of

8 dispensing organizations in compliance with this Article,

9 including their physical addresses;

10 (2) Any plans, procedures, policies, or other records

11 relating to dispensing organization security;

12 (3) Information otherwise exempt from disclosure by

13 State or federal law.

14 (c) The name and address of a dispensing organization

15 licensed under this Act shall be subject to disclosure under

16 the Freedom of Information Act. The name and cannabis business

17 establishment address of the person or entity holding each

18 cannabis business establishment license shall be subject to

19 disclosure.

20 (d) All information collected by the Department of

21 Financial and Professional Regulation in the course of an

22 examination, inspection, or investigation of a licensee or

23 applicant, including, but not limited to, any complaint against

24 a licensee or applicant filed with the Department and

25 information collected to investigate any such complaint, shall

26 be maintained for the confidential use of the Department and

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1 shall not be disclosed, except as otherwise provided in the

2 Act. A formal complaint against a licensee by the Department or

3 any disciplinary order issued by the Department against a

4 licensee or applicant shall be a public record, except as

5 otherwise prohibited by law, as required by law, or as

6 necessary to enforce the provisions of this Act. Complaints

7 from consumers or members of the general public received

8 regarding a specific, named licensee or complaints regarding

9 conduct by unlicensed entities shall be subject to disclosure

10 under the Freedom of Information Act

11 (e) The Department of Agriculture, the Department of State

12 Police, and the Department of Financial and Professional

13 Regulation shall not share or disclose any existing or

14 non-existing Illinois or national criminal history record

15 information to any person or entity not expressly authorized by

16 this Act. As used in this Section, "any existing or

17 non-existing Illinois or national criminal history record

18 information" means any Illinois or national criminal history

19 record information, including but not limited to the lack of or

20 non-existence of these records.

21 (f) Each Department responsible for licensure under this

22 Act shall publish on the Department's website a list of the

23 ownership information of cannabis business establishment

24 licensees under the Department's jurisdiction. The list shall

25 include, but is not limited to: the name of the person or

26 entity holding each cannabis business establishment license;

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1 and the address at which the entity is operating under this

2 Act. This list shall be published and updated monthly.

3 Section 55-35. Administrative rulemaking.

4 (a) No later than 180 days after the effective date of this

5 Act, the Department of Agriculture, the Department of State

6 Police, the Department of Financial and Professional

7 Regulation, the Department of Revenue, the Department of

8 Commerce and Economic Opportunity, and the Treasurer's Office

9 shall adopt permanent rules in accordance with their

10 responsibilities under this Act. The Department of

11 Agriculture, the Department of State Police, the Department of

12 Financial and Professional Regulation, the Department of

13 Revenue, and the Department of Commerce and Economic

14 Opportunity may adopt rules necessary to regulate personal

15 cannabis use through the use of emergency rulemaking in

16 accordance with subsection (gg) of Section 5-45 of the Illinois

17 Administrative Procedure Act. The General Assembly finds that

18 the adoption of rules to regulate cannabis use is deemed an

19 emergency and necessary for the public interest, safety, and

20 welfare.

21 (b) The Department of Agriculture rules may address, but

22 are not limited to, the following matters related to

23 cultivation centers, craft growers, infuser organizations, and

24 transporting organizations with the goal of protecting against

25 diversion and theft, without imposing an undue burden on the

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1 cultivation centers, craft growers, infuser organizations, or

2 transporting organizations:

3 (1) oversight requirements for cultivation centers,

4 craft growers, infuser organizations, and transporting

5 organizations;

6 (2) recordkeeping requirements for cultivation

7 centers, craft growers, infuser organizations, and

8 transporting organizations;

9 (3) security requirements for cultivation centers,

10 craft growers, infuser organizations, and transporting

11 organizations, which shall include that each cultivation

12 center, craft grower, infuser organization, and

13 transporting organization location must be protected by a

14 fully operational security alarm system;

15 (4) standards for enclosed, locked facilities under

16 this Act;

17 (5) procedures for suspending or revoking the

18 identification cards of agents of cultivation centers,

19 craft growers, infuser organizations, and transporting

20 organizations that commit violations of this Act or the

21 rules adopted under this Section;

22 (6) rules concerning the intrastate transportation of

23 cannabis from a cultivation center, craft grower, infuser

24 organization, and transporting organization to a

25 dispensing organization;

26 (7) standards concerning the testing, quality,

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1 cultivation, and processing of cannabis; and

2 (8) any other matters under oversight by the Department

3 of Agriculture as are necessary for the fair, impartial,

4 stringent, and comprehensive administration of this Act.

5 (c) The Department of Financial and Professional

6 Regulation rules may address, but are not limited to, the

7 following matters related to dispensing organizations, with

8 the goal of protecting against diversion and theft, without

9 imposing an undue burden on the dispensing organizations:

10 (1) oversight requirements for dispensing

11 organizations;

12 (2) recordkeeping requirements for dispensing

13 organizations;

14 (3) security requirements for dispensing

15 organizations, which shall include that each dispensing

16 organization location must be protected by a fully

17 operational security alarm system;

18 (4) procedures for suspending or revoking the licenses

19 of dispensing organization agents that commit violations

20 of this Act or the rules adopted under this Act;

21 (5) any other matters under oversight by the Department

22 of Financial and Professional Regulation that are

23 necessary for the fair, impartial, stringent, and

24 comprehensive administration of this Act.

25 (d) The Department of Revenue rules may address, but are

26 not limited to, the following matters related to the payment of

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1 taxes by cannabis business establishments:

2 (1) recording of sales;

3 (2) documentation of taxable income and expenses;

4 (3) transfer of funds for the payment of taxes; or

5 (4) any other matter under the oversight of the

6 Department of Revenue.

7 (e) The Department of Commerce and Economic Opportunity

8 rules may address, but are not limited to, a loan program or

9 grant program to assist Social Equity Applicants access the

10 capital needed to start a cannabis business establishment. The

11 names of recipients and the amounts of any moneys received

12 through a loan program or grant program shall be a public

13 record.

14 (f) The Department of State Police rules may address

15 enforcement of its authority under this Act. The Department of

16 State Police shall not make rules that infringe on the

17 exclusive authority of the Department of Financial and

18 Professional Regulation or the Department of Agriculture over

19 licensees under this Act.

20 (g) The Department of Public Health shall develop and

21 disseminate:

22 (1) educational information about the health risks

23 associated with the use of cannabis; and

24 (2) one or more public education campaigns in

25 coordination with local health departments and community

26 organizations, including one or more prevention campaigns

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1 directed at children, adolescents, parents, and pregnant

2 or breastfeeding women, to inform them of the potential

3 health risks associated with intentional or unintentional

4 cannabis use.

5 Section 55-40. Enforcement.

6 (a) If the Department of Agriculture, Department of State

7 Police, Department of Financial and Professional Regulation,

8 Department of Commerce and Economic Opportunity, or Department

9 of Revenue fails to adopt rules to implement this Act within

10 the times provided in this Act, any citizen may commence a

11 mandamus action in the circuit court to compel the agencies to

12 perform the actions mandated under Section 55-35.

13 (b) If the Department of Agriculture or the Department of

14 Financial and Professional Regulation fails to issue a valid

15 agent identification card in response to a valid initial

16 application or renewal application submitted under this Act or

17 fails to issue a verbal or written notice of denial of the

18 application within 30 days of its submission, the agent

19 identification card is deemed granted and a copy of the agent

20 identification initial application or renewal application

21 shall be deemed a valid agent identification card.

22 (c) Authorized employees of State or local law enforcement

23 agencies shall immediately notify the Department of

24 Agriculture and the Department of Financial and Professional

25 Regulation when any person in possession of an agent

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1 identification card has been convicted of or pled guilty to

2 violating this Act.

3 Section 55-45. Administrative hearings.

4 (a) Administrative hearings related to the duties and

5 responsibilities assigned to the Department of Public Health

6 shall be conducted under the Department of Public Health's

7 rules governing administrative hearings.

8 (b) Administrative hearings related to the duties and

9 responsibilities assigned to the Department of Financial and

10 Professional Regulation and dispensing organization agents

11 shall be conducted under the Department of Financial and

12 Professional Regulation's rules governing administrative

13 hearings.

14 (c) Administrative hearings related to the duties and

15 responsibilities assigned to the Department of Agriculture,

16 cultivation centers, or cultivation center agents shall be

17 conducted under the Department of Agriculture's rules

18 governing administrative hearings.

19 Section 55-50. Petition for rehearing. Within 20 days after

20 the service of any order or decision of the Department of

21 Public Health, the Department of Agriculture, the Department of

22 Financial and Professional Regulation, or the Department of

23 State Police upon any party to the proceeding, the party may

24 apply for a rehearing in respect to any matters determined by

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1 them under this Act, except for decisions made under the

2 Cannabis Cultivation Privilege Tax Law, the Cannabis Purchaser

3 Excise Tax Law, the County Cannabis Retailers' Occupation Tax

4 Law, and the Municipal Cannabis Retailers' Occupation Tax Law,

5 which shall be governed by the provisions of those Laws. If a

6 rehearing is granted, an agency shall hold the rehearing and

7 render a decision within 30 days from the filing of the

8 application for rehearing with the agency. The time for holding

9 such rehearing and rendering a decision may be extended for a

10 period not to exceed 30 days, for good cause shown, and by

11 notice in writing to all parties of interest. If an agency

12 fails to act on the application for rehearing within 30 days,

13 or the date the time for rendering a decision was extended for

14 good cause shown, the order or decision of the agency is final.

15 No action for the judicial review of any order or decision of

16 an agency shall be allowed unless the party commencing such

17 action has first filed an application for a rehearing and the

18 agency has acted or failed to act upon the application. Only

19 one rehearing may be granted by an agency on application of any

20 one party.

21 Section 55-55. Review of administrative decisions. All

22 final administrative decisions of the Department of Public

23 Health, the Department of Agriculture, the Department of

24 Financial and Professional Regulation, and the Department of

25 State Police are subject to judicial review under the

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1 Administrative Review Law and the rules adopted under that Law.

2 The term "administrative decision" is defined as in Section

3 3-101 of the Code of Civil Procedure.

4 Section 55-60. Suspension or revocation of a license.

5 (a) The Department of Financial and Professional

6 Regulation or the Department of Agriculture may suspend or

7 revoke a license for a violation of this Act or a rule adopted

8 in accordance with this Act by the Department of Agriculture

9 and the Department of Financial and Professional Regulation.

10 (b) The Department of Agriculture and the Department of

11 Financial and Professional Regulation may suspend or revoke an

12 agent identification card for a violation of this Act or a rule

13 adopted in accordance with this Act.

14 Section 55-65. Financial institutions.

15 (a) A financial institution that provides financial

16 services customarily provided by financial institutions to a

17 cannabis business establishment authorized under this Act or

18 the Compassionate Use of Medical Cannabis Pilot Program Act, or

19 to a person that is affiliated with such cannabis business

20 establishment, is exempt from any criminal law of this State as

21 it relates to cannabis-related conduct authorized under State

22 law.

23 (b) Upon request of a financial institution, a cannabis

24 business establishment or proposed cannabis business

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1 establishment may provide to the financial institution the

2 following information:

3 (1) Whether a cannabis business establishment with

4 which the financial institution is doing or is considering

5 doing business holds a license under this Act or the

6 Compassionate Use of Medical Cannabis Pilot Program Act;

7 (2) The name of any other business or individual

8 affiliate with the cannabis business establishment;

9 (3) A copy of the application, and any supporting

10 documentation submitted with the application, for a

11 license or a permit submitted on behalf of the proposed

12 cannabis business establishment;

13 (4) If applicable, data relating to sales and the

14 volume of product sold by the cannabis business

15 establishment;

16 (5) Any past or pending violation by the person of this

17 Act, the Compassionate Use of Medical Cannabis Pilot

18 Program Act, or the rules adopted under these Acts where

19 applicable; and

20 (6) Any penalty imposed upon the person for violating

21 this Act, the Compassionate Use of Medical Cannabis Pilot

22 Program Act, or the rules adopted under these Acts.

23 (c) (Blank).

24 (d) (Blank).

25 (e) Information received by a financial institution under

26 this Section is confidential. Except as otherwise required or

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1 permitted by this Act, State law or rule, or federal law or

2 regulation, a financial institution may not make the

3 information available to any person other than:

4 (1) the customer to whom the information applies;

5 (2) a trustee, conservator, guardian, personal

6 representative, or agent of the customer to whom the

7 information applies; a federal or State regulator when

8 requested in connection with an examination of the

9 financial institution or if otherwise necessary for

10 complying with federal or State law;

11 (3) a federal or State regulator when requested in

12 connection with an examination of the financial

13 institution or if otherwise necessary for complying with

14 federal or State law; and

15 (4) a third party performing services for the financial

16 institution, provided the third party is performing such

17 services under a written agreement that expressly or by

18 operation of law prohibits the third party's sharing and

19 use of such confidential information for any purpose other

20 than as provided in its agreement to provide services to

21 the financial institution.

22 Section 55-75. Contracts enforceable. It is the public

23 policy of this State that contracts related to the operation of

24 a lawful cannabis business establishment under this Act are

25 enforceable. It is the public policy of this State that no

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1 contract entered into by a lawful cannabis business

2 establishment or its agents on behalf of a cannabis business

3 establishment, or by those who allow property to be used by a

4 cannabis business establishment, shall be unenforceable on the

5 basis that cultivating, obtaining, manufacturing, processing,

6 distributing, dispensing, transporting, selling, possessing,

7 or using cannabis or hemp is prohibited by federal law.

8 Section 55-80. Annual reports.

9 (a) The Department of Financial and Professional

10 Regulation shall submit to the General Assembly and Governor a

11 report, by September 30 of each year, that does not disclose

12 any information identifying information about cultivation

13 centers, craft growers, infuser organizations, transporting

14 organizations, or dispensing organizations, but does contain,

15 at a minimum, all of the following information for the previous

16 fiscal year:

17 (1) The number of licenses issued to dispensing

18 organizations by county, or, in counties with greater than

19 3,000,000 residents, by zip code;

20 (2) The total number of dispensing organization owners

21 that are Social Equity Applicants or minority persons,

22 women, or persons with disabilities as those terms are

23 defined in the Business Enterprise for Minorities, Women,

24 and Persons with Disabilities Act;

25 (3) The total number of revenues received from

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1 dispensing organizations, segregated from revenues

2 received from dispensing organizations under the

3 Compassionate Use of Medical Cannabis Pilot Program Act by

4 county, separated by source of revenue;

5 (4) The total amount of revenue received from

6 dispensing organizations that share a premises or majority

7 ownership with a craft grower;

8 (5) The total amount of revenue received from

9 dispensing organizations that share a premises or majority

10 ownership with an infuser; and

11 (6) An analysis of revenue generated from taxation,

12 licensing, and other fees for the State, including

13 recommendations to change the tax rate applied.

14 (b) The Department of Agriculture shall submit to the

15 General Assembly and Governor a report, by September 30 of each

16 year, that does not disclose any information identifying

17 information about cultivation centers, craft growers, infuser

18 organizations, transporting organizations, or dispensing

19 organizations, but does contain, at a minimum, all of the

20 following information for the previous fiscal year:

21 (1) The number of licenses issued to cultivation

22 centers, craft growers, infusers, and transporters by

23 license type, and, in counties with more than 3,000,000

24 residents, by zip code;

25 (2) The total number of cultivation centers, craft

26 growers, infusers, and transporters by license type that

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1 are Social Equity Applicants or minority persons, women, or

2 persons with disabilities as those terms are defined in the

3 Business Enterprise for Minorities, Women, and Persons

4 with Disabilities Act;

5 (3) The total amount of revenue received from

6 cultivation centers, craft growers, infusers, and

7 transporters, separated by license types and source of

8 revenue;

9 (4) The total amount of revenue received from craft

10 growers and infusers that share a premises or majority

11 ownership with a dispensing organization;

12 (5) The total amount of revenue received from craft

13 growers that share a premises or majority ownership with an

14 infuser, but do not share a premises or ownership with a

15 dispensary;

16 (6) The total amount of revenue received from infusers

17 that share a premises or majority ownership with a craft

18 grower, but do not share a premises or ownership with a

19 dispensary;

20 (7) The total amount of revenue received from craft

21 growers that share a premises or majority ownership with a

22 dispensing organization, but do not share a premises or

23 ownership with an infuser;

24 (8) The total amount of revenue received from infusers

25 that share a premises or majority ownership with a

26 dispensing organization, but do not share a premises or

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1 ownership with a craft grower;

2 (9) The total amount of revenue received from

3 transporters; and

4 (10) An analysis of revenue generated from taxation,

5 licensing, and other fees for the State, including

6 recommendations to change the tax rate applied.

7 (c) The Department of State Police shall submit to the

8 General Assembly and Governor a report, by September 30 of each

9 year that contains, at a minimum, all of the following

10 information for the previous fiscal year:

11 (1) The effect of regulation and taxation of cannabis

12 on law enforcement resources;

13 (2) The impact of regulation and taxation of cannabis

14 on highway safety and rates of impaired driving, where

15 impairment was determined based on failure of a field

16 sobriety test;

17 (3) The available and emerging methods for detecting

18 the metabolites for delta-9-tetrahydrocannabinol in bodily

19 fluids, including, without limitation, blood and saliva;

20 (4) The effectiveness of current DUI laws and

21 recommendations for improvements to policy to better

22 ensure safe highways and fair laws.

23 (d) The Adult Use Cannabis Health Advisory Committee shall

24 submit to the General Assembly and Governor a report, by

25 September 30 of each year, that does not disclose any

26 identifying information about any individuals, but does

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1 contain, at a minimum:

2 (1) Self-reported youth cannabis use, as published in

3 the most recent Illinois Youth Survey available;

4 (2) Self-reported adult cannabis use, as published in

5 the most recent Behavioral Risk Factor Surveillance Survey

6 available;

7 (3) Hospital room admissions and hospital utilization

8 rates caused by cannabis consumption, including the

9 presence or detection of other drugs;

10 (4) Overdoses of cannabis and poison control data,

11 including the presence of other drugs that may have

12 contributed;

13 (5) Incidents of impaired driving caused by the

14 consumption of cannabis or cannabis products, including

15 the presence of other drugs or alcohol that may have

16 contributed to the impaired driving;

17 (6) Prevalence of infants born testing positive for

18 cannabis or delta-9-tetrahydrocannabinol, including

19 demographic and racial information on which infants are

20 tested;

21 (7) Public perceptions of use and risk of harm;

22 (8) Revenue collected from cannabis taxation and how

23 that revenue was used;

24 (9) Cannabis retail licenses granted and locations;

25 (10) Cannabis-related arrests; and

26 (11) The number of individuals completing required bud

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1 tender training.

2 (e) Each agency or committee submitting reports under this

3 Section may consult with one another in the preparation of each

4 report.

5 Section 55-85. Medical cannabis.

6 (a) Nothing in this Act shall be construed to limit any

7 privileges or rights of a medical cannabis patient including

8 minor patients, primary caregiver, medical cannabis

9 cultivation center, or medical cannabis dispensing

10 organization under the Compassionate Use of Medical Cannabis

11 Pilot Program Act, and where there is conflict between this Act

12 and the Compassionate Use of Medical Cannabis Pilot Program Act

13 as they relate to medical cannabis patients, the Compassionate

14 Use of Medical Cannabis Pilot Program Act shall prevail.

15 (b) Dispensary locations that obtain an Early Approval

16 Adult Use Dispensary Organization License or an Adult Use

17 Dispensary Organization License in accordance with this Act at

18 the same location as a medical cannabis dispensing organization

19 registered under the Compassionate Use of Medical Cannabis

20 Pilot Program Act shall maintain an inventory of medical

21 cannabis and medical cannabis products on a monthly basis that

22 is substantially similar in variety and quantity to the

23 products offered at the dispensary during the 6-month period

24 immediately before the effective date of this Act.

25 (c) Beginning June 30, 2020, the Department of Agriculture

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1 shall make a quarterly determination whether inventory

2 requirements established for dispensaries in subsection (b)

3 should be adjusted due to changing patient need.

4 Section 55-90. Home rule preemption. Except as otherwise

5 provided in this Act, the regulation and licensing of the

6 activities described in this Act are exclusive powers and

7 functions of the State. Except as otherwise provided in this

8 Act, a unit of local government, including a home rule unit,

9 may not regulate or license the activities described in this

10 Act. This Section is a denial and limitation of home rule

11 powers and functions under subsection (h) of Section 6 of

12 Article VII of the Illinois Constitution.

13 Section 55-95. Conflict of interest. A person is ineligible

14 to apply for, hold, or own financial or voting interest in any

15 cannabis business license under this Act if, within a 2-year

16 period from the effective date of this Act, the person or his

17 or her spouse or immediately family member was a member of the

18 General Assembly or a State employee at an agency that

19 regulates cannabis business establishment license holders who

20 participated personally and substantially in the award of

21 licenses under this Act. A person who violates this Section

22 shall be guilty under subsection (b) of Section 50-5 of the

23 State Officials and Employees Ethics Act.

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1 ARTICLE 60.

2 CANNABIS CULTIVATION PRIVILEGE TAX

3 Section 60-1. Short title. This Article may be referred to

4 as the Cannabis Cultivation Privilege Tax Law.

5 Section 60-5. Definitions. In this Article:

6 "Cannabis" has the meaning given to that term in Article 1

7 of this Act, except that it does not include cannabis that is

8 subject to tax under the Compassionate Use of Medical Cannabis

9 Pilot Program Act.

10 "Craft grower" has the meaning given to that term in

11 Article 1 of this Act.

12 "Cultivation center" has the meaning given to that term in

13 Article 1 of this Act.

14 "Cultivator" or "taxpayer" means a cultivation center or

15 craft grower who is subject to tax under this Article.

16 "Department" means the Department of Revenue.

17 "Director" means the Director of Revenue.

18 "Dispensing organization" or "dispensary" has the meaning

19 given to that term in Article 1 of this Act.

20 "Gross receipts" from the sales of cannabis by a cultivator

21 means the total selling price or the amount of such sales, as

22 defined in this Article. In the case of charges and time sales,

23 the amount thereof shall be included only when payments are

24 received by the cultivator.

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1 "Person" means a natural individual, firm, partnership,

2 association, joint stock company, joint adventure, public or

3 private corporation, limited liability company, or a receiver,

4 executor, trustee, guardian, or other representative appointed

5 by order of any court.

6 "Infuser" means "infuser organization" or "infuser" as

7 defined in Article 1 of this Act.

8 "Selling price" or "amount of sale" means the consideration

9 for a sale valued in money whether received in money or

10 otherwise, including cash, credits, property, and services,

11 and shall be determined without any deduction on account of the

12 cost of the property sold, the cost of materials used, labor or

13 service cost, or any other expense whatsoever, but does not

14 include separately stated charges identified on the invoice by

15 cultivators to reimburse themselves for their tax liability

16 under this Article.

17 Section 60-10. Tax imposed.

18 (a) Beginning September 1, 2019, a tax is imposed upon the

19 privilege of cultivating cannabis at the rate of 7% of the

20 gross receipts from the first sale of cannabis by a cultivator.

21 The sale of any product that contains any amount of cannabis or

22 any derivative thereof is subject to the tax under this Section

23 on the full selling price of the product. The Department may

24 determine the selling price of the cannabis when the seller and

25 purchaser are affiliated persons, when the sale and purchase of

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1 cannabis is not an arm's length transaction, or when cannabis

2 is transferred by a craft grower to the craft grower's

3 dispensing organization or infuser or processing organization

4 and a value is not established for the cannabis. The value

5 determined by the Department shall be commensurate with the

6 actual price received for products of like quality, character,

7 and use in the area. If there are no sales of cannabis of like

8 quality, character, and use in the same area, then the

9 Department shall establish a reasonable value based on sales of

10 products of like quality, character, and use in other areas of

11 the State, taking into consideration any other relevant

12 factors.

13 (b) The Cannabis Cultivation Privilege Tax imposed under

14 this Article is solely the responsibility of the cultivator who

15 makes the first sale and is not the responsibility of a

16 subsequent purchaser, a dispensing organization, or an

17 infuser. Persons subject to the tax imposed under this Article

18 may, however, reimburse themselves for their tax liability

19 hereunder by separately stating reimbursement for their tax

20 liability as an additional charge.

21 (c) The tax imposed under this Article shall be in addition

22 to all other occupation, privilege, or excise taxes imposed by

23 the State of Illinois or by any unit of local government.

24 Section 60-15. Registration of cultivators. Every

25 cultivator and craft grower subject to the tax under this

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1 Article shall apply to the Department of Revenue for a

2 certificate of registration under this Article. All

3 applications for registration under this Article shall be made

4 by electronic means in the form and manner required by the

5 Department. For that purpose, the provisions of Section 2a of

6 the Retailers' Occupation Tax Act are incorporated into this

7 Article to the extent not inconsistent with this Article. In

8 addition, no certificate of registration shall be issued under

9 this Article unless the applicant is licensed under this Act.

10 Section 60-20. Return and payment of cannabis cultivation

11 privilege tax. Each person who is required to pay the tax

12 imposed by this Article shall make a return to the Department

13 on or before the 20th day of each month for the preceding

14 calendar month stating the following:

15 (1) the taxpayer's name;

16 (2) the address of the taxpayer's principal place of

17 business and the address of the principal place of business

18 (if that is a different address) from which the taxpayer is

19 engaged in the business of cultivating cannabis subject to

20 tax under this Article;

21 (3) the total amount of receipts received by the

22 taxpayer during the preceding calendar month from sales of

23 cannabis subject to tax under this Article by the taxpayer

24 during the preceding calendar month;

25 (4) the total amount received by the taxpayer during

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1 the preceding calendar month on charge and time sales of

2 cannabis subject to tax imposed under this Article by the

3 taxpayer before the month for which the return is filed;

4 (5) deductions allowed by law;

5 (6) gross receipts that were received by the taxpayer

6 during the preceding calendar month and upon the basis of

7 which the tax is imposed;

8 (7) the amount of tax due;

9 (8) the signature of the taxpayer; and

10 (9) any other information as the Department may

11 reasonably require.

12 All returns required to be filed and payments required to

13 be made under this Article shall be by electronic means.

14 Taxpayers who demonstrate hardship in paying electronically

15 may petition the Department to waive the electronic payment

16 requirement. The Department may require a separate return for

17 the tax under this Article or combine the return for the tax

18 under this Article with the return for the tax under the

19 Compassionate Use of Medical Cannabis Pilot Program Act. If the

20 return for the tax under this Article is combined with the

21 return for tax under the Compassionate Use of Medical Cannabis

22 Pilot Program Act, then the vendor's discount allowed under

23 this Section and any cap on that discount shall apply to the

24 combined return. The taxpayer making the return provided for in

25 this Section shall also pay to the Department, in accordance

26 with this Section, the amount of tax imposed by this Article,

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1 less a discount of 1.75%, but not to exceed $1,000 per return

2 period, which is allowed to reimburse the taxpayer for the

3 expenses incurred in keeping records, collecting tax,

4 preparing and filing returns, remitting the tax, and supplying

5 data to the Department upon request. No discount may be claimed

6 by a taxpayer on returns not timely filed and for taxes not

7 timely remitted. No discount may be claimed by a taxpayer for

8 any return that is not filed electronically. No discount may be

9 claimed by a taxpayer for any payment that is not made

10 electronically, unless a waiver has been granted under this

11 Section. Any amount that is required to be shown or reported on

12 any return or other document under this Article shall, if the

13 amount is not a whole-dollar amount, be increased to the

14 nearest whole-dollar amount if the fractional part of a dollar

15 is $0.50 or more and decreased to the nearest whole-dollar

16 amount if the fractional part of a dollar is less than $0.50.

17 If a total amount of less than $1 is payable, refundable, or

18 creditable, the amount shall be disregarded if it is less than

19 $0.50 and shall be increased to $1 if it is $0.50 or more.

20 Notwithstanding any other provision of this Article concerning

21 the time within which a taxpayer may file a return, any such

22 taxpayer who ceases to engage in the kind of business that

23 makes the person responsible for filing returns under this

24 Article shall file a final return under this Article with the

25 Department within one month after discontinuing such business.

26 Each taxpayer under this Article shall make estimated

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1 payments to the Department on or before the 7th, 15th, 22nd,

2 and last day of the month during which tax liability to the

3 Department is incurred. The payments shall be in an amount not

4 less than the lower of either 22.5% of the taxpayer's actual

5 tax liability for the month or 25% of the taxpayer's actual tax

6 liability for the same calendar month of the preceding year.

7 The amount of the quarter-monthly payments shall be credited

8 against the final tax liability of the taxpayer's return for

9 that month. If any quarter-monthly payment is not paid at the

10 time or in the amount required by this Section, then the

11 taxpayer shall be liable for penalties and interest on the

12 difference between the minimum amount due as a payment and the

13 amount of the quarter-monthly payment actually and timely paid,

14 except insofar as the taxpayer has previously made payments for

15 that month to the Department in excess of the minimum payments

16 previously due as provided in this Section.

17 If any payment provided for in this Section exceeds the

18 taxpayer's liabilities under this Article, as shown on an

19 original monthly return, the Department shall, if requested by

20 the taxpayer, issue to the taxpayer a credit memorandum no

21 later than 30 days after the date of payment. The credit

22 evidenced by the credit memorandum may be assigned by the

23 taxpayer to a similar taxpayer under this Act, in accordance

24 with reasonable rules to be prescribed by the Department. If no

25 such request is made, the taxpayer may credit the excess

26 payment against tax liability subsequently to be remitted to

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1 the Department under this Act, in accordance with reasonable

2 rules prescribed by the Department. If the Department

3 subsequently determines that all or any part of the credit

4 taken was not actually due to the taxpayer, the taxpayer's

5 discount shall be reduced, if necessary, to reflect the

6 difference between the credit taken and that actually due, and

7 that taxpayer shall be liable for penalties and interest on the

8 difference.

9 If a taxpayer fails to sign a return within 30 days after

10 the proper notice and demand for signature by the Department is

11 received by the taxpayer, the return shall be considered valid

12 and any amount shown to be due on the return shall be deemed

13 assessed.

14 Section 60-25. Infuser information returns. If it is deemed

15 necessary for the administration of this Article, the

16 Department may adopt rules that require infusers to file

17 information returns regarding the sale of cannabis by infusers

18 to dispensaries. The Department may require infusers to file

19 all information returns by electronic means.

20 Section 60-30. Deposit of proceeds. All moneys received by

21 the Department under this Article shall be deposited into the

22 Cannabis Regulation Fund.

23 Section 60-35. Department administration and enforcement.

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1 The Department shall have full power to administer and enforce

2 this Article, to collect all taxes, penalties, and interest due

3 hereunder, to dispose of taxes, penalties and interest so

4 collected in the manner hereinafter provided, and to determine

5 all rights to credit memoranda, arising on account of the

6 erroneous payment of tax, penalty, or interest hereunder. In

7 the administration of, and compliance with, this Article, the

8 Department and persons who are subject to this Article shall

9 have the same rights, remedies, privileges, immunities,

10 powers, and duties, and be subject to the same conditions,

11 restrictions, limitations, penalties, and definitions of

12 terms, and employ the same modes of procedure, as are

13 prescribed in Sections 1, 2-40, 2a, 2b, 2i, 4, 5, 5a, 5b, 5c,

14 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a,

15 12, and 13 of the Retailers' Occupation Tax Act and all of the

16 provisions of the Uniform Penalty and Interest Act, which are

17 not inconsistent with this Article, as fully as if those

18 provisions were set forth herein. For purposes of this Section,

19 references in the Retailers' Occupation Tax Act to a "sale of

20 tangible personal property at retail" mean the "sale of

21 cannabis by a cultivator".

22 Section 60-40. Invoices. Every sales invoice for cannabis

23 issued by a cultivator to a cannabis business establishment

24 shall contain the cultivator's certificate of registration

25 number assigned under this Article, date, invoice number,

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1 purchaser's name and address, selling price, amount of

2 cannabis, concentrate, or cannabis-infused product, and any

3 other reasonable information as the Department may provide by

4 rule is necessary for the administration of this Article.

5 Cultivators shall retain the invoices for inspection by the

6 Department.

7 Section 60-45. Rules. The Department may adopt rules

8 related to the enforcement of this Article.

9 ARTICLE 65.

10 CANNABIS PURCHASER EXCISE TAX

11 Section 65-1. Short title. This Article may be referred to

12 as the Cannabis Purchaser Excise Tax Law.

13 Section 65-5. Definitions. In this Article:

14 "Adjusted delta-9-tetrahydrocannabinol level" means, for a

15 delta-9-tetrahydrocannabinol dominant product, the sum of the

16 percentage of delta-9-tetrahydrocannabinol plus .877

17 multiplied by the percentage of tetrahydrocannabinolic acid.

18 "Cannabis" has the meaning given to that term in Article 1

19 of this Act, except that it does not include cannabis that is

20 subject to tax under the Compassionate Use of Medical Cannabis

21 Pilot Program Act.

22 "Cannabis-infused product" means beverage food, oils,

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1 ointments, tincture, topical formulation, or another product

2 containing cannabis that is not intended to be smoked.

3 "Cannabis retailer" means a dispensing organization that

4 sells cannabis for use and not for resale.

5 "Craft grower" has the meaning given to that term in

6 Article 1 of this Act.

7 "Department" means the Department of Revenue.

8 "Director" means the Director of Revenue.

9 "Dispensing organization" or "dispensary" has the meaning

10 given to that term in Article 1 of this Act.

11 "Person" means a natural individual, firm, partnership,

12 association, joint stock company, joint adventure, public or

13 private corporation, limited liability company, or a receiver,

14 executor, trustee, guardian, or other representative appointed

15 by order of any court.

16 "Infuser organization" or "infuser" means a facility

17 operated by an organization or business that is licensed by the

18 Department of Agriculture to directly incorporate cannabis or

19 cannabis concentrate into a product formulation to produce a

20 cannabis-infused product.

21 "Purchase price" means the consideration paid for a

22 purchase of cannabis, valued in money, whether received in

23 money or otherwise, including cash, gift cards, credits, and

24 property and shall be determined without any deduction on

25 account of the cost of materials used, labor or service costs,

26 or any other expense whatsoever. However, "purchase price" does

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1 not include consideration paid for:

2 (1) any charge for a payment that is not honored by a

3 financial institution;

4 (2) any finance or credit charge, penalty or charge for

5 delayed payment, or discount for prompt payment; and

6 (3) any amounts added to a purchaser's bill because of

7 charges made under the tax imposed by this Article, the

8 Municipal Cannabis Retailers' Occupation Tax Law, the

9 County Cannabis Retailers' Occupation Tax Law, the

10 Retailers' Occupation Tax Act, the Use Tax Act, the Service

11 Occupation Tax Act, the Service Use Tax Act, or any locally

12 imposed occupation or use tax.

13 "Purchaser" means a person who acquires cannabis for a

14 valuable consideration.

15 "Taxpayer" means a cannabis retailer who is required to

16 collect the tax imposed under this Article.

17 Section 65-10. Tax imposed.

18 (a) Beginning January 1, 2020, a tax is imposed upon

19 purchasers for the privilege of using cannabis at the following

20 rates:

21 (1) Any cannabis, other than a cannabis-infused

22 product, with an adjusted delta-9-tetrahydrocannabinol

23 level at or below 35% shall be taxed at a rate of 10% of the

24 purchase price;

25 (2) Any cannabis, other than a cannabis-infused

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1 product, with an adjusted delta-9-tetrahydrocannabinol

2 level above 35% shall be taxed at a rate of 25% of the

3 purchase price; and

4 (3) A cannabis-infused product shall be taxed at a rate

5 of 20% of the purchase price.

6 (b) The purchase of any product that contains any amount of

7 cannabis or any derivative thereof is subject to the tax under

8 subsection (a) of this Section on the full purchase price of

9 the product.

10 (c) The tax imposed under this Section is not imposed on

11 cannabis that is subject to tax under the Compassionate Use of

12 Medical Cannabis Pilot Program Act. The tax imposed by this

13 Section is not imposed with respect to any transaction in

14 interstate commerce, to the extent the transaction may not,

15 under the Constitution and statutes of the United States, be

16 made the subject of taxation by this State.

17 (d) The tax imposed under this Article shall be in addition

18 to all other occupation, privilege, or excise taxes imposed by

19 the State of Illinois or by any municipal corporation or

20 political subdivision thereof.

21 (e) The tax imposed under this Article shall not be imposed

22 on any purchase by a purchaser if the cannabis retailer is

23 prohibited by federal or State Constitution, treaty,

24 convention, statute, or court decision from collecting the tax

25 from the purchaser.

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1 Section 65-11. Bundling of taxable and nontaxable items;

2 prohibition; taxation. If a cannabis retailer sells cannabis,

3 concentrate, or cannabis-infused products in combination or

4 bundled with items that are not subject to tax under this Act

5 for one price in violation of the prohibition on this activity

6 under Section 15-70, then the tax under this Act is imposed on

7 the purchase price of the entire bundled product.

8 Section 65-15. Collection of tax.

9 (a) The tax imposed by this Article shall be collected from

10 the purchaser by the cannabis retailer at the rate stated in

11 Section 65-10 with respect to cannabis sold by the cannabis

12 retailer to the purchaser, and shall be remitted to the

13 Department as provided in Section 65-30. All sales to a

14 purchaser who is not a cardholder under the Compassionate Use

15 of Medical Cannabis Pilot Program Act are presumed subject to

16 tax collection. Cannabis retailers shall collect the tax from

17 purchasers by adding the tax to the amount of the purchase

18 price received from the purchaser for selling cannabis to the

19 purchaser. The tax imposed by this Article shall, when

20 collected, be stated as a distinct item separate and apart from

21 the purchase price of the cannabis.

22 (b) If a cannabis retailer collects Cannabis Purchaser

23 Excise Tax measured by a purchase price that is not subject to

24 Cannabis Purchaser Excise Tax, or if a cannabis retailer, in

25 collecting Cannabis Purchaser Excise Tax measured by a purchase

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1 price that is subject to tax under this Act, collects more from

2 the purchaser than the required amount of the Cannabis

3 Purchaser Excise Tax on the transaction, the purchaser shall

4 have a legal right to claim a refund of that amount from the

5 cannabis retailer. If, however, that amount is not refunded to

6 the purchaser for any reason, the cannabis retailer is liable

7 to pay that amount to the Department.

8 (c) Any person purchasing cannabis subject to tax under

9 this Article as to which there has been no charge made to him

10 or her of the tax imposed by Section 65-10 shall make payment

11 of the tax imposed by Section 65-10 in the form and manner

12 provided by the Department not later than the 20th day of the

13 month following the month of purchase of the cannabis.

14 Section 65-20. Registration of cannabis retailers. Every

15 cannabis retailer required to collect the tax under this

16 Article shall apply to the Department for a certificate of

17 registration under this Article. All applications for

18 registration under this Article shall be made by electronic

19 means in the form and manner required by the Department. For

20 that purpose, the provisions of Section 2a of the Retailers'

21 Occupation Tax Act are incorporated into this Article to the

22 extent not inconsistent with this Article. In addition, no

23 certificate of registration shall be issued under this Article

24 unless the applicant is licensed under this Act.

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1 Section 65-25. Tax collected as debt owed to State. Any

2 cannabis retailer required to collect the tax imposed by this

3 Article shall be liable to the Department for the tax, whether

4 or not the tax has been collected by the cannabis retailer, and

5 any such tax shall constitute a debt owed by the cannabis

6 retailer to this State. To the extent that a cannabis retailer

7 required to collect the tax imposed by this Act has actually

8 collected that tax, the tax is held in trust for the benefit of

9 the Department.

10 Section 65-30. Return and payment of tax by cannabis

11 retailer. Each cannabis retailer that is required or authorized

12 to collect the tax imposed by this Article shall make a return

13 to the Department, by electronic means, on or before the 20th

14 day of each month for the preceding calendar month stating the

15 following:

16 (1) the cannabis retailer's name;

17 (2) the address of the cannabis retailer's principal

18 place of business and the address of the principal place of

19 business (if that is a different address) from which the

20 cannabis retailer engaged in the business of selling

21 cannabis subject to tax under this Article;

22 (3) the total purchase price received by the cannabis

23 retailer for cannabis subject to tax under this Article;

24 (4) the amount of tax due at each rate;

25 (5) the signature of the cannabis retailer; and

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1 (6) any other information as the Department may

2 reasonably require.

3 All returns required to be filed and payments required to

4 be made under this Article shall be by electronic means.

5 Cannabis retailers who demonstrate hardship in paying

6 electronically may petition the Department to waive the

7 electronic payment requirement.

8 Any amount that is required to be shown or reported on any

9 return or other document under this Article shall, if the

10 amount is not a whole-dollar amount, be increased to the

11 nearest whole-dollar amount if the fractional part of a dollar

12 is $0.50 or more and decreased to the nearest whole-dollar

13 amount if the fractional part of a dollar is less than $0.50.

14 If a total amount of less than $1 is payable, refundable, or

15 creditable, the amount shall be disregarded if it is less than

16 $0.50 and shall be increased to $1 if it is $0.50 or more.

17 The cannabis retailer making the return provided for in

18 this Section shall also pay to the Department, in accordance

19 with this Section, the amount of tax imposed by this Article,

20 less a discount of 1.75%, but not to exceed $1,000 per return

21 period, which is allowed to reimburse the cannabis retailer for

22 the expenses incurred in keeping records, collecting tax,

23 preparing and filing returns, remitting the tax, and supplying

24 data to the Department upon request. No discount may be claimed

25 by a cannabis retailer on returns not timely filed and for

26 taxes not timely remitted. No discount may be claimed by a

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1 taxpayer for any return that is not filed electronically. No

2 discount may be claimed by a taxpayer for any payment that is

3 not made electronically, unless a waiver has been granted under

4 this Section.

5 Notwithstanding any other provision of this Article

6 concerning the time within which a cannabis retailer may file a

7 return, any such cannabis retailer who ceases to engage in the

8 kind of business that makes the person responsible for filing

9 returns under this Article shall file a final return under this

10 Article with the Department within one month after

11 discontinuing the business.

12 Each cannabis retailer shall make estimated payments to the

13 Department on or before the 7th, 15th, 22nd, and last day of

14 the month during which tax liability to the Department is

15 incurred. The payments shall be in an amount not less than the

16 lower of either 22.5% of the cannabis retailer's actual tax

17 liability for the month or 25% of the cannabis retailer's

18 actual tax liability for the same calendar month of the

19 preceding year. The amount of the quarter-monthly payments

20 shall be credited against the final tax liability of the

21 cannabis retailer's return for that month. If any such

22 quarter-monthly payment is not paid at the time or in the

23 amount required by this Section, then the cannabis retailer

24 shall be liable for penalties and interest on the difference

25 between the minimum amount due as a payment and the amount of

26 the quarter-monthly payment actually and timely paid, except

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1 insofar as the cannabis retailer has previously made payments

2 for that month to the Department in excess of the minimum

3 payments previously due as provided in this Section.

4 If any payment provided for in this Section exceeds the

5 taxpayer's liabilities under this Article, as shown on an

6 original monthly return, the Department shall, if requested by

7 the taxpayer, issue to the taxpayer a credit memorandum no

8 later than 30 days after the date of payment. The credit

9 evidenced by the credit memorandum may be assigned by the

10 taxpayer to a similar taxpayer under this Article, in

11 accordance with reasonable rules to be prescribed by the

12 Department. If no such request is made, the taxpayer may credit

13 the excess payment against tax liability subsequently to be

14 remitted to the Department under this Article, in accordance

15 with reasonable rules prescribed by the Department. If the

16 Department subsequently determines that all or any part of the

17 credit taken was not actually due to the taxpayer, the

18 taxpayer's discount shall be reduced, if necessary, to reflect

19 the difference between the credit taken and that actually due,

20 and that taxpayer shall be liable for penalties and interest on

21 the difference. If a cannabis retailer fails to sign a return

22 within 30 days after the proper notice and demand for signature

23 by the Department is received by the cannabis retailer, the

24 return shall be considered valid and any amount shown to be due

25 on the return shall be deemed assessed.

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1 Section 65-35. Deposit of proceeds. All moneys received by

2 the Department under this Article shall be paid into the

3 Cannabis Regulation Fund.

4 Section 65-36. Recordkeeping; books and records.

5 (a) Every retailer of cannabis, whether or not the retailer

6 has obtained a certificate of registration under Section 65-20,

7 shall keep complete and accurate records of cannabis held,

8 purchased, sold, or otherwise disposed of, and shall preserve

9 and keep all invoices, bills of lading, sales records, and

10 copies of bills of sale, returns, and other pertinent papers

11 and documents relating to the purchase, sale, or disposition of

12 cannabis. Such records need not be maintained on the licensed

13 premises but must be maintained in the State of Illinois.

14 However, all original invoices or copies thereof covering

15 purchases of cannabis must be retained on the licensed premises

16 for a period of 90 days after such purchase, unless the

17 Department has granted a waiver in response to a written

18 request in cases where records are kept at a central business

19 location within the State of Illinois. The Department shall

20 adopt rules regarding the eligibility for a waiver, revocation

21 of a waiver, and requirements and standards for maintenance and

22 accessibility of records located at a central location under a

23 waiver provided under this Section.

24 (b) Books, records, papers, and documents that are required

25 by this Article to be kept shall, at all times during the usual

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1 business hours of the day, be subject to inspection by the

2 Department or its duly authorized agents and employees. The

3 books, records, papers, and documents for any period with

4 respect to which the Department is authorized to issue a notice

5 of tax liability shall be preserved until the expiration of

6 that period.

7 Section 65-38. Violations and penalties.

8 (a) When the amount due is under $300, any retailer of

9 cannabis who fails to file a return, willfully fails or refuses

10 to make any payment to the Department of the tax imposed by

11 this Article, or files a fraudulent return, or any officer or

12 agent of a corporation engaged in the business of selling

13 cannabis to purchasers located in this State who signs a

14 fraudulent return filed on behalf of the corporation, or any

15 accountant or other agent who knowingly enters false

16 information on the return of any taxpayer under this Article is

17 guilty of a Class 4 felony.

18 (b) When the amount due is $300 or more, any retailer of

19 cannabis who files, or causes to be filed, a fraudulent return,

20 or any officer or agent of a corporation engaged in the

21 business of selling cannabis to purchasers located in this

22 State who files or causes to be filed or signs or causes to be

23 signed a fraudulent return filed on behalf of the corporation,

24 or any accountant or other agent who knowingly enters false

25 information on the return of any taxpayer under this Article is

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1 guilty of a Class 3 felony.

2 (c) Any person who violates any provision of Section 65-20,

3 fails to keep books and records as required under this Article,

4 or willfully violates a rule of the Department for the

5 administration and enforcement of this Article is guilty of a

6 Class 4 felony. A person commits a separate offense on each day

7 that he or she engages in business in violation of Section

8 65-20 or a rule of the Department for the administration and

9 enforcement of this Article. If a person fails to produce the

10 books and records for inspection by the Department upon

11 request, a prima facie presumption shall arise that the person

12 has failed to keep books and records as required under this

13 Article. A person who is unable to rebut this presumption is in

14 violation of this Article and is subject to the penalties

15 provided in this Section.

16 (d) Any person who violates any provision of Sections

17 65-20, fails to keep books and records as required under this

18 Article, or willfully violates a rule of the Department for the

19 administration and enforcement of this Article, is guilty of a

20 business offense and may be fined up to $5,000. If a person

21 fails to produce books and records for inspection by the

22 Department upon request, a prima facie presumption shall arise

23 that the person has failed to keep books and records as

24 required under this Article. A person who is unable to rebut

25 this presumption is in violation of this Article and is subject

26 to the penalties provided in this Section. A person commits a

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1 separate offense on each day that he or she engages in business

2 in violation of Section 65-20.

3 (e) Any taxpayer or agent of a taxpayer who with the intent

4 to defraud purports to make a payment due to the Department by

5 issuing or delivering a check or other order upon a real or

6 fictitious depository for the payment of money, knowing that it

7 will not be paid by the depository, is guilty of a deceptive

8 practice in violation of Section 17-1 of the Criminal Code of

9 2012.

10 (f) Any person who fails to keep books and records or fails

11 to produce books and records for inspection, as required by

12 Section 65-36, is liable to pay to the Department, for deposit

13 in the Tax Compliance and Administration Fund, a penalty of

14 $1,000 for the first failure to keep books and records or

15 failure to produce books and records for inspection, as

16 required by Section 65-36, and $3,000 for each subsequent

17 failure to keep books and records or failure to produce books

18 and records for inspection, as required by Section 65-36.

19 (g) Any person who knowingly acts as a retailer of cannabis

20 in this State without first having obtained a certificate of

21 registration to do so in compliance with Section 65-20 of this

22 Article shall be guilty of a Class 4 felony.

23 (h) A person commits the offense of tax evasion under this

24 Article when he or she knowingly attempts in any manner to

25 evade or defeat the tax imposed on him or her or on any other

26 person, or the payment thereof, and he or she commits an

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1 affirmative act in furtherance of the evasion. As used in this

2 Section, "affirmative act in furtherance of the evasion" means

3 an act designed in whole or in part to (i) conceal,

4 misrepresent, falsify, or manipulate any material fact or (ii)

5 tamper with or destroy documents or materials related to a

6 person's tax liability under this Article. Two or more acts of

7 sales tax evasion may be charged as a single count in any

8 indictment, information, or complaint and the amount of tax

9 deficiency may be aggregated for purposes of determining the

10 amount of tax that is attempted to be or is evaded and the

11 period between the first and last acts may be alleged as the

12 date of the offense.

13 (1) When the amount of tax, the assessment or payment

14 of which is attempted to be or is evaded is less than $500,

15 a person is guilty of a Class 4 felony.

16 (2) When the amount of tax, the assessment or payment

17 of which is attempted to be or is evaded is $500 or more

18 but less than $10,000, a person is guilty of a Class 3

19 felony.

20 (3) When the amount of tax, the assessment or payment

21 of which is attempted to be or is evaded is $10,000 or more

22 but less than $100,000, a person is guilty of a Class 2

23 felony.

24 (4) When the amount of tax, the assessment or payment

25 of which is attempted to be or is evaded is $100,000 or

26 more, a person is guilty of a Class 1 felony.

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1 Any person who knowingly sells, purchases, installs,

2 transfers, possesses, uses, or accesses any automated sales

3 suppression device, zapper, or phantom-ware in this State is

4 guilty of a Class 3 felony.

5 As used in this Section:

6 "Automated sales suppression device" or "zapper" means a

7 software program that falsifies the electronic records of an

8 electronic cash register or other point-of-sale system,

9 including, but not limited to, transaction data and transaction

10 reports. The term includes the software program, any device

11 that carries the software program, or an Internet link to the

12 software program.

13 "Phantom-ware" means a hidden programming option embedded

14 in the operating system of an electronic cash register or

15 hardwired into an electronic cash register that can be used to

16 create a second set of records or that can eliminate or

17 manipulate transaction records in an electronic cash register.

18 "Electronic cash register" means a device that keeps a

19 register or supporting documents through the use of an

20 electronic device or computer system designed to record

21 transaction data for the purpose of computing, compiling, or

22 processing retail sales transaction data in any manner.

23 "Transaction data" includes: items purchased by a

24 purchaser; the price of each item; a taxability determination

25 for each item; a segregated tax amount for each taxed item; the

26 amount of cash or credit tendered; the net amount returned to

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1 the customer in change; the date and time of the purchase; the

2 name, address, and identification number of the vendor; and the

3 receipt or invoice number of the transaction.

4 "Transaction report" means a report that documents,

5 without limitation, the sales, taxes, or fees collected, media

6 totals, and discount voids at an electronic cash register and

7 that is printed on a cash register tape at the end of a day or

8 shift, or a report that documents every action at an electronic

9 cash register and is stored electronically.

10 A prosecution for any act in violation of this Section may

11 be commenced at any time within 5 years of the commission of

12 that act.

13 (i) The Department may adopt rules to administer the

14 penalties under this Section.

15 (j) Any person whose principal place of business is in this

16 State and who is charged with a violation under this Section

17 shall be tried in the county where his or her principal place

18 of business is located unless he or she asserts a right to be

19 tried in another venue.

20 (k) Except as otherwise provided in subsection (h), a

21 prosecution for a violation described in this Section may be

22 commenced within 3 years after the commission of the act

23 constituting the violation.

24 Section 65-40. Department administration and enforcement.

25 The Department shall have full power to administer and enforce

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1 this Article, to collect all taxes and penalties due hereunder,

2 to dispose of taxes and penalties so collected in the manner

3 hereinafter provided, and to determine all rights to credit

4 memoranda, arising on account of the erroneous payment of tax

5 or penalty hereunder.

6 In the administration of, and compliance with, this

7 Article, the Department and persons who are subject to this

8 Article shall have the same rights, remedies, privileges,

9 immunities, powers, and duties, and be subject to the same

10 conditions, restrictions, limitations, penalties, and

11 definitions of terms, and employ the same modes of procedure,

12 as are prescribed in Sections 2, 3-55, 3a, 4, 5, 7, 10a, 11,

13 12a, 12b, 14, 15, 19, 20, 21, and 22 of the Use Tax Act and

14 Sections 1, 2-12, 2b, 4 (except that the time limitation

15 provisions shall run from the date when the tax is due rather

16 than from the date when gross receipts are received), 5 (except

17 that the time limitation provisions on the issuance of notices

18 of tax liability shall run from the date when the tax is due

19 rather than from the date when gross receipts are received and

20 except that in the case of a failure to file a return required

21 by this Act, no notice of tax liability shall be issued on and

22 after each July 1 and January 1 covering tax due with that

23 return during any month or period more than 6 years before that

24 July 1 or January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g,

25 5h, 5j, 6d, 7, 8, 9, 10, 11, and 12 of the Retailers'

26 Occupation Tax Act and all of the provisions of the Uniform

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1 Penalty and Interest Act, which are not inconsistent with this

2 Article, as fully as if those provisions were set forth herein.

3 References in the incorporated Sections of the Retailers'

4 Occupation Tax Act and the Use Tax Act to retailers, to

5 sellers, or to persons engaged in the business of selling

6 tangible personal property mean cannabis retailers when used in

7 this Article. References in the incorporated Sections to sales

8 of tangible personal property mean sales of cannabis subject to

9 tax under this Article when used in this Article.

10 Section 65-41. Arrest; search and seizure without warrant.

11 Any duly authorized employee of the Department: (i) may arrest

12 without warrant any person committing in his or her presence a

13 violation of any of the provisions of this Article; (ii) may

14 without a search warrant inspect all cannabis located in any

15 place of business; (iii) may seize any cannabis in the

16 possession of the retailer in violation of this Act; and (iv)

17 may seize any cannabis on which the tax imposed by Article 60

18 of this Act has not been paid. The cannabis so seized is

19 subject to confiscation and forfeiture as provided in Sections

20 65-42 and 65-43.

21 Section 65-42. Seizure and forfeiture. After seizing any

22 cannabis as provided in Section 65-41, the Department must hold

23 a hearing and determine whether the retailer was properly

24 registered to sell the cannabis at the time of its seizure by

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1 the Department. The Department shall give not less than 20

2 days' notice of the time and place of the hearing to the owner

3 of the cannabis, if the owner is known, and also to the person

4 in whose possession the cannabis was found, if that person is

5 known and if the person in possession is not the owner of the

6 cannabis. If neither the owner nor the person in possession of

7 the cannabis is known, the Department must cause publication of

8 the time and place of the hearing to be made at least once in

9 each week for 3 weeks successively in a newspaper of general

10 circulation in the county where the hearing is to be held.

11 If, as the result of the hearing, the Department determines

12 that the retailer was not properly registered at the time the

13 cannabis was seized, the Department must enter an order

14 declaring the cannabis confiscated and forfeited to the State,

15 to be held by the Department for disposal by it as provided in

16 Section 65-43. The Department must give notice of the order to

17 the owner of the cannabis, if the owner is known, and also to

18 the person in whose possession the cannabis was found, if that

19 person is known and if the person in possession is not the

20 owner of the cannabis. If neither the owner nor the person in

21 possession of the cannabis is known, the Department must cause

22 publication of the order to be made at least once in each week

23 for 3 weeks successively in a newspaper of general circulation

24 in the county where the hearing was held.

25 Section 65-43. Search warrant; issuance and return;

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1 process; confiscation of cannabis; forfeitures.

2 (a) If a peace officer of this State or any duly authorized

3 officer or employee of the Department has reason to believe

4 that any violation of this Article or a rule of the Department

5 for the administration and enforcement of this Article has

6 occurred and that the person violating this Article or rule has

7 in that person's possession any cannabis in violation of this

8 Article or a rule of the Department for the administration and

9 enforcement of this Article, that peace officer or officer or

10 employee of the Department may file or cause to be filed his or

11 her complaint in writing, verified by affidavit, with any court

12 within whose jurisdiction the premises to be searched are

13 situated, stating the facts upon which the belief is founded,

14 the premises to be searched, and the property to be seized, and

15 procure a search warrant and execute that warrant. Upon the

16 execution of the search warrant, the peace officer, or officer

17 or employee of the Department, executing the search warrant

18 shall make due return of the warrant to the court issuing the

19 warrant, together with an inventory of the property taken under

20 the warrant. The court must then issue process against the

21 owner of the property if the owner is known; otherwise, process

22 must be issued against the person in whose possession the

23 property is found, if that person is known. In case of

24 inability to serve process upon the owner or the person in

25 possession of the property at the time of its seizure, notice

26 of the proceedings before the court must be given in the same

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1 manner as required by the law governing cases of attachment.

2 Upon the return of the process duly served or upon the posting

3 or publishing of notice made, as appropriate, the court or

4 jury, if a jury is demanded, shall proceed to determine whether

5 the property so seized was held or possessed in violation of

6 this Article or a rule of the Department for the administration

7 and enforcement of this Article. If a violation is found,

8 judgment shall be entered confiscating the property and

9 forfeiting it to the State and ordering its delivery to the

10 Department. In addition, the court may tax and assess the costs

11 of the proceedings.

12 (b) When any cannabis has been declared forfeited to the

13 State by the Department, as provided in Section 65-42 and this

14 Section, and when all proceedings for the judicial review of

15 the Department's decision have terminated, the Department

16 shall, to the extent that its decision is sustained on review,

17 destroy or maintain and use such cannabis in an undercover

18 capacity.

19 (c) The Department may, before any destruction of cannabis,

20 permit the true holder of trademark rights in the cannabis to

21 inspect such cannabis in order to assist the Department in any

22 investigation regarding such cannabis.

23 Section 65-45. Cannabis retailers; purchase and possession

24 of cannabis. Cannabis retailers shall purchase cannabis for

25 resale only from cannabis business establishments as

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1 authorized by this Act.

2 Section 65-50. Rulemaking. The Department may adopt rules

3 in accordance with the Illinois Administrative Procedure Act

4 and prescribe forms relating to the administration and

5 enforcement of this Article as it deems appropriate.

6 ARTICLE 900.

7 AMENDATORY PROVISIONS

8 Section 900-5. The Illinois Administrative Procedure Act

9 is amended by changing Section 5-45 as follows:

10 (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)

11 Sec. 5-45. Emergency rulemaking.

12 (a) "Emergency" means the existence of any situation that

13 any agency finds reasonably constitutes a threat to the public

14 interest, safety, or welfare.

15 (b) If any agency finds that an emergency exists that

16 requires adoption of a rule upon fewer days than is required by

17 Section 5-40 and states in writing its reasons for that

18 finding, the agency may adopt an emergency rule without prior

19 notice or hearing upon filing a notice of emergency rulemaking

20 with the Secretary of State under Section 5-70. The notice

21 shall include the text of the emergency rule and shall be

22 published in the Illinois Register. Consent orders or other

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1 court orders adopting settlements negotiated by an agency may

2 be adopted under this Section. Subject to applicable

3 constitutional or statutory provisions, an emergency rule

4 becomes effective immediately upon filing under Section 5-65 or

5 at a stated date less than 10 days thereafter. The agency's

6 finding and a statement of the specific reasons for the finding

7 shall be filed with the rule. The agency shall take reasonable

8 and appropriate measures to make emergency rules known to the

9 persons who may be affected by them.

10 (c) An emergency rule may be effective for a period of not

11 longer than 150 days, but the agency's authority to adopt an

12 identical rule under Section 5-40 is not precluded. No

13 emergency rule may be adopted more than once in any 24-month

14 period, except that this limitation on the number of emergency

15 rules that may be adopted in a 24-month period does not apply

16 to (i) emergency rules that make additions to and deletions

17 from the Drug Manual under Section 5-5.16 of the Illinois

18 Public Aid Code or the generic drug formulary under Section

19 3.14 of the Illinois Food, Drug and Cosmetic Act, (ii)

20 emergency rules adopted by the Pollution Control Board before

21 July 1, 1997 to implement portions of the Livestock Management

22 Facilities Act, (iii) emergency rules adopted by the Illinois

23 Department of Public Health under subsections (a) through (i)

24 of Section 2 of the Department of Public Health Act when

25 necessary to protect the public's health, (iv) emergency rules

26 adopted pursuant to subsection (n) of this Section, (v)

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1 emergency rules adopted pursuant to subsection (o) of this

2 Section, or (vi) emergency rules adopted pursuant to subsection

3 (c-5) of this Section. Two or more emergency rules having

4 substantially the same purpose and effect shall be deemed to be

5 a single rule for purposes of this Section.

6 (c-5) To facilitate the maintenance of the program of group

7 health benefits provided to annuitants, survivors, and retired

8 employees under the State Employees Group Insurance Act of

9 1971, rules to alter the contributions to be paid by the State,

10 annuitants, survivors, retired employees, or any combination

11 of those entities, for that program of group health benefits,

12 shall be adopted as emergency rules. The adoption of those

13 rules shall be considered an emergency and necessary for the

14 public interest, safety, and welfare.

15 (d) In order to provide for the expeditious and timely

16 implementation of the State's fiscal year 1999 budget,

17 emergency rules to implement any provision of Public Act 90-587

18 or 90-588 or any other budget initiative for fiscal year 1999

19 may be adopted in accordance with this Section by the agency

20 charged with administering that provision or initiative,

21 except that the 24-month limitation on the adoption of

22 emergency rules and the provisions of Sections 5-115 and 5-125

23 do not apply to rules adopted under this subsection (d). The

24 adoption of emergency rules authorized by this subsection (d)

25 shall be deemed to be necessary for the public interest,

26 safety, and welfare.

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1 (e) In order to provide for the expeditious and timely

2 implementation of the State's fiscal year 2000 budget,

3 emergency rules to implement any provision of Public Act 91-24

4 or any other budget initiative for fiscal year 2000 may be

5 adopted in accordance with this Section by the agency charged

6 with administering that provision or initiative, except that

7 the 24-month limitation on the adoption of emergency rules and

8 the provisions of Sections 5-115 and 5-125 do not apply to

9 rules adopted under this subsection (e). The adoption of

10 emergency rules authorized by this subsection (e) shall be

11 deemed to be necessary for the public interest, safety, and

12 welfare.

13 (f) In order to provide for the expeditious and timely

14 implementation of the State's fiscal year 2001 budget,

15 emergency rules to implement any provision of Public Act 91-712

16 or any other budget initiative for fiscal year 2001 may be

17 adopted in accordance with this Section by the agency charged

18 with administering that provision or initiative, except that

19 the 24-month limitation on the adoption of emergency rules and

20 the provisions of Sections 5-115 and 5-125 do not apply to

21 rules adopted under this subsection (f). The adoption of

22 emergency rules authorized by this subsection (f) shall be

23 deemed to be necessary for the public interest, safety, and

24 welfare.

25 (g) In order to provide for the expeditious and timely

26 implementation of the State's fiscal year 2002 budget,

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1 emergency rules to implement any provision of Public Act 92-10

2 or any other budget initiative for fiscal year 2002 may be

3 adopted in accordance with this Section by the agency charged

4 with administering that provision or initiative, except that

5 the 24-month limitation on the adoption of emergency rules and

6 the provisions of Sections 5-115 and 5-125 do not apply to

7 rules adopted under this subsection (g). The adoption of

8 emergency rules authorized by this subsection (g) shall be

9 deemed to be necessary for the public interest, safety, and

10 welfare.

11 (h) In order to provide for the expeditious and timely

12 implementation of the State's fiscal year 2003 budget,

13 emergency rules to implement any provision of Public Act 92-597

14 or any other budget initiative for fiscal year 2003 may be

15 adopted in accordance with this Section by the agency charged

16 with administering that provision or initiative, except that

17 the 24-month limitation on the adoption of emergency rules and

18 the provisions of Sections 5-115 and 5-125 do not apply to

19 rules adopted under this subsection (h). The adoption of

20 emergency rules authorized by this subsection (h) shall be

21 deemed to be necessary for the public interest, safety, and

22 welfare.

23 (i) In order to provide for the expeditious and timely

24 implementation of the State's fiscal year 2004 budget,

25 emergency rules to implement any provision of Public Act 93-20

26 or any other budget initiative for fiscal year 2004 may be

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1 adopted in accordance with this Section by the agency charged

2 with administering that provision or initiative, except that

3 the 24-month limitation on the adoption of emergency rules and

4 the provisions of Sections 5-115 and 5-125 do not apply to

5 rules adopted under this subsection (i). The adoption of

6 emergency rules authorized by this subsection (i) shall be

7 deemed to be necessary for the public interest, safety, and

8 welfare.

9 (j) In order to provide for the expeditious and timely

10 implementation of the provisions of the State's fiscal year

11 2005 budget as provided under the Fiscal Year 2005 Budget

12 Implementation (Human Services) Act, emergency rules to

13 implement any provision of the Fiscal Year 2005 Budget

14 Implementation (Human Services) Act may be adopted in

15 accordance with this Section by the agency charged with

16 administering that provision, except that the 24-month

17 limitation on the adoption of emergency rules and the

18 provisions of Sections 5-115 and 5-125 do not apply to rules

19 adopted under this subsection (j). The Department of Public Aid

20 may also adopt rules under this subsection (j) necessary to

21 administer the Illinois Public Aid Code and the Children's

22 Health Insurance Program Act. The adoption of emergency rules

23 authorized by this subsection (j) shall be deemed to be

24 necessary for the public interest, safety, and welfare.

25 (k) In order to provide for the expeditious and timely

26 implementation of the provisions of the State's fiscal year

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1 2006 budget, emergency rules to implement any provision of

2 Public Act 94-48 or any other budget initiative for fiscal year

3 2006 may be adopted in accordance with this Section by the

4 agency charged with administering that provision or

5 initiative, except that the 24-month limitation on the adoption

6 of emergency rules and the provisions of Sections 5-115 and

7 5-125 do not apply to rules adopted under this subsection (k).

8 The Department of Healthcare and Family Services may also adopt

9 rules under this subsection (k) necessary to administer the

10 Illinois Public Aid Code, the Senior Citizens and Persons with

11 Disabilities Property Tax Relief Act, the Senior Citizens and

12 Disabled Persons Prescription Drug Discount Program Act (now

13 the Illinois Prescription Drug Discount Program Act), and the

14 Children's Health Insurance Program Act. The adoption of

15 emergency rules authorized by this subsection (k) shall be

16 deemed to be necessary for the public interest, safety, and

17 welfare.

18 (l) In order to provide for the expeditious and timely

19 implementation of the provisions of the State's fiscal year

20 2007 budget, the Department of Healthcare and Family Services

21 may adopt emergency rules during fiscal year 2007, including

22 rules effective July 1, 2007, in accordance with this

23 subsection to the extent necessary to administer the

24 Department's responsibilities with respect to amendments to

25 the State plans and Illinois waivers approved by the federal

26 Centers for Medicare and Medicaid Services necessitated by the

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1 requirements of Title XIX and Title XXI of the federal Social

2 Security Act. The adoption of emergency rules authorized by

3 this subsection (l) shall be deemed to be necessary for the

4 public interest, safety, and welfare.

5 (m) In order to provide for the expeditious and timely

6 implementation of the provisions of the State's fiscal year

7 2008 budget, the Department of Healthcare and Family Services

8 may adopt emergency rules during fiscal year 2008, including

9 rules effective July 1, 2008, in accordance with this

10 subsection to the extent necessary to administer the

11 Department's responsibilities with respect to amendments to

12 the State plans and Illinois waivers approved by the federal

13 Centers for Medicare and Medicaid Services necessitated by the

14 requirements of Title XIX and Title XXI of the federal Social

15 Security Act. The adoption of emergency rules authorized by

16 this subsection (m) shall be deemed to be necessary for the

17 public interest, safety, and welfare.

18 (n) In order to provide for the expeditious and timely

19 implementation of the provisions of the State's fiscal year

20 2010 budget, emergency rules to implement any provision of

21 Public Act 96-45 or any other budget initiative authorized by

22 the 96th General Assembly for fiscal year 2010 may be adopted

23 in accordance with this Section by the agency charged with

24 administering that provision or initiative. The adoption of

25 emergency rules authorized by this subsection (n) shall be

26 deemed to be necessary for the public interest, safety, and

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1 welfare. The rulemaking authority granted in this subsection

2 (n) shall apply only to rules promulgated during Fiscal Year

3 2010.

4 (o) In order to provide for the expeditious and timely

5 implementation of the provisions of the State's fiscal year

6 2011 budget, emergency rules to implement any provision of

7 Public Act 96-958 or any other budget initiative authorized by

8 the 96th General Assembly for fiscal year 2011 may be adopted

9 in accordance with this Section by the agency charged with

10 administering that provision or initiative. The adoption of

11 emergency rules authorized by this subsection (o) is deemed to

12 be necessary for the public interest, safety, and welfare. The

13 rulemaking authority granted in this subsection (o) applies

14 only to rules promulgated on or after July 1, 2010 (the

15 effective date of Public Act 96-958) through June 30, 2011.

16 (p) In order to provide for the expeditious and timely

17 implementation of the provisions of Public Act 97-689,

18 emergency rules to implement any provision of Public Act 97-689

19 may be adopted in accordance with this subsection (p) by the

20 agency charged with administering that provision or

21 initiative. The 150-day limitation of the effective period of

22 emergency rules does not apply to rules adopted under this

23 subsection (p), and the effective period may continue through

24 June 30, 2013. The 24-month limitation on the adoption of

25 emergency rules does not apply to rules adopted under this

26 subsection (p). The adoption of emergency rules authorized by

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1 this subsection (p) is deemed to be necessary for the public

2 interest, safety, and welfare.

3 (q) In order to provide for the expeditious and timely

4 implementation of the provisions of Articles 7, 8, 9, 11, and

5 12 of Public Act 98-104, emergency rules to implement any

6 provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104

7 may be adopted in accordance with this subsection (q) by the

8 agency charged with administering that provision or

9 initiative. The 24-month limitation on the adoption of

10 emergency rules does not apply to rules adopted under this

11 subsection (q). The adoption of emergency rules authorized by

12 this subsection (q) is deemed to be necessary for the public

13 interest, safety, and welfare.

14 (r) In order to provide for the expeditious and timely

15 implementation of the provisions of Public Act 98-651,

16 emergency rules to implement Public Act 98-651 may be adopted

17 in accordance with this subsection (r) by the Department of

18 Healthcare and Family Services. The 24-month limitation on the

19 adoption of emergency rules does not apply to rules adopted

20 under this subsection (r). The adoption of emergency rules

21 authorized by this subsection (r) is deemed to be necessary for

22 the public interest, safety, and welfare.

23 (s) In order to provide for the expeditious and timely

24 implementation of the provisions of Sections 5-5b.1 and 5A-2 of

25 the Illinois Public Aid Code, emergency rules to implement any

26 provision of Section 5-5b.1 or Section 5A-2 of the Illinois

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1 Public Aid Code may be adopted in accordance with this

2 subsection (s) by the Department of Healthcare and Family

3 Services. The rulemaking authority granted in this subsection

4 (s) shall apply only to those rules adopted prior to July 1,

5 2015. Notwithstanding any other provision of this Section, any

6 emergency rule adopted under this subsection (s) shall only

7 apply to payments made for State fiscal year 2015. The adoption

8 of emergency rules authorized by this subsection (s) is deemed

9 to be necessary for the public interest, safety, and welfare.

10 (t) In order to provide for the expeditious and timely

11 implementation of the provisions of Article II of Public Act

12 99-6, emergency rules to implement the changes made by Article

13 II of Public Act 99-6 to the Emergency Telephone System Act may

14 be adopted in accordance with this subsection (t) by the

15 Department of State Police. The rulemaking authority granted in

16 this subsection (t) shall apply only to those rules adopted

17 prior to July 1, 2016. The 24-month limitation on the adoption

18 of emergency rules does not apply to rules adopted under this

19 subsection (t). The adoption of emergency rules authorized by

20 this subsection (t) is deemed to be necessary for the public

21 interest, safety, and welfare.

22 (u) In order to provide for the expeditious and timely

23 implementation of the provisions of the Burn Victims Relief

24 Act, emergency rules to implement any provision of the Act may

25 be adopted in accordance with this subsection (u) by the

26 Department of Insurance. The rulemaking authority granted in

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1 this subsection (u) shall apply only to those rules adopted

2 prior to December 31, 2015. The adoption of emergency rules

3 authorized by this subsection (u) is deemed to be necessary for

4 the public interest, safety, and welfare.

5 (v) In order to provide for the expeditious and timely

6 implementation of the provisions of Public Act 99-516,

7 emergency rules to implement Public Act 99-516 may be adopted

8 in accordance with this subsection (v) by the Department of

9 Healthcare and Family Services. The 24-month limitation on the

10 adoption of emergency rules does not apply to rules adopted

11 under this subsection (v). The adoption of emergency rules

12 authorized by this subsection (v) is deemed to be necessary for

13 the public interest, safety, and welfare.

14 (w) In order to provide for the expeditious and timely

15 implementation of the provisions of Public Act 99-796,

16 emergency rules to implement the changes made by Public Act

17 99-796 may be adopted in accordance with this subsection (w) by

18 the Adjutant General. The adoption of emergency rules

19 authorized by this subsection (w) is deemed to be necessary for

20 the public interest, safety, and welfare.

21 (x) In order to provide for the expeditious and timely

22 implementation of the provisions of Public Act 99-906,

23 emergency rules to implement subsection (i) of Section 16-115D,

24 subsection (g) of Section 16-128A, and subsection (a) of

25 Section 16-128B of the Public Utilities Act may be adopted in

26 accordance with this subsection (x) by the Illinois Commerce

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1 Commission. The rulemaking authority granted in this

2 subsection (x) shall apply only to those rules adopted within

3 180 days after June 1, 2017 (the effective date of Public Act

4 99-906). The adoption of emergency rules authorized by this

5 subsection (x) is deemed to be necessary for the public

6 interest, safety, and welfare.

7 (y) In order to provide for the expeditious and timely

8 implementation of the provisions of Public Act 100-23,

9 emergency rules to implement the changes made by Public Act

10 100-23 to Section 4.02 of the Illinois Act on the Aging,

11 Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,

12 Section 55-30 of the Alcoholism and Other Drug Abuse and

13 Dependency Act, and Sections 74 and 75 of the Mental Health and

14 Developmental Disabilities Administrative Act may be adopted

15 in accordance with this subsection (y) by the respective

16 Department. The adoption of emergency rules authorized by this

17 subsection (y) is deemed to be necessary for the public

18 interest, safety, and welfare.

19 (z) In order to provide for the expeditious and timely

20 implementation of the provisions of Public Act 100-554,

21 emergency rules to implement the changes made by Public Act

22 100-554 to Section 4.7 of the Lobbyist Registration Act may be

23 adopted in accordance with this subsection (z) by the Secretary

24 of State. The adoption of emergency rules authorized by this

25 subsection (z) is deemed to be necessary for the public

26 interest, safety, and welfare.

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1 (aa) In order to provide for the expeditious and timely

2 initial implementation of the changes made to Articles 5, 5A,

3 12, and 14 of the Illinois Public Aid Code under the provisions

4 of Public Act 100-581, the Department of Healthcare and Family

5 Services may adopt emergency rules in accordance with this

6 subsection (aa). The 24-month limitation on the adoption of

7 emergency rules does not apply to rules to initially implement

8 the changes made to Articles 5, 5A, 12, and 14 of the Illinois

9 Public Aid Code adopted under this subsection (aa). The

10 adoption of emergency rules authorized by this subsection (aa)

11 is deemed to be necessary for the public interest, safety, and

12 welfare.

13 (bb) In order to provide for the expeditious and timely

14 implementation of the provisions of Public Act 100-587,

15 emergency rules to implement the changes made by Public Act

16 100-587 to Section 4.02 of the Illinois Act on the Aging,

17 Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,

18 subsection (b) of Section 55-30 of the Alcoholism and Other

19 Drug Abuse and Dependency Act, Section 5-104 of the Specialized

20 Mental Health Rehabilitation Act of 2013, and Section 75 and

21 subsection (b) of Section 74 of the Mental Health and

22 Developmental Disabilities Administrative Act may be adopted

23 in accordance with this subsection (bb) by the respective

24 Department. The adoption of emergency rules authorized by this

25 subsection (bb) is deemed to be necessary for the public

26 interest, safety, and welfare.

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1 (cc) In order to provide for the expeditious and timely

2 implementation of the provisions of Public Act 100-587,

3 emergency rules may be adopted in accordance with this

4 subsection (cc) to implement the changes made by Public Act

5 100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois

6 Pension Code by the Board created under Article 14 of the Code;

7 Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by

8 the Board created under Article 15 of the Code; and Sections

9 16-190.5 and 16-190.6 of the Illinois Pension Code by the Board

10 created under Article 16 of the Code. The adoption of emergency

11 rules authorized by this subsection (cc) is deemed to be

12 necessary for the public interest, safety, and welfare.

13 (dd) In order to provide for the expeditious and timely

14 implementation of the provisions of Public Act 100-864,

15 emergency rules to implement the changes made by Public Act

16 100-864 to Section 3.35 of the Newborn Metabolic Screening Act

17 may be adopted in accordance with this subsection (dd) by the

18 Secretary of State. The adoption of emergency rules authorized

19 by this subsection (dd) is deemed to be necessary for the

20 public interest, safety, and welfare.

21 (ee) In order to provide for the expeditious and timely

22 implementation of the provisions of this amendatory Act of the

23 100th General Assembly, emergency rules implementing the

24 Illinois Underground Natural Gas Storage Safety Act may be

25 adopted in accordance with this subsection by the Department of

26 Natural Resources. The adoption of emergency rules authorized

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1 by this subsection is deemed to be necessary for the public

2 interest, safety, and welfare.

3 (ff) In order to provide for the expeditious and timely

4 implementation of the provisions of this amendatory Act of the

5 101st General Assembly, emergency rules may be adopted by the

6 Department of Labor in accordance with this subsection (ff) to

7 implement the changes made by this amendatory Act of the 101st

8 General Assembly to the Minimum Wage Law. The adoption of

9 emergency rules authorized by this subsection (ff) is deemed to

10 be necessary for the public interest, safety, and welfare.

11 (gg) In order to provide for the expeditious and timely

12 implementation of the Cannabis Regulation and Tax Act and this

13 amendatory Act of the 101st General Assembly, the Department of

14 Revenue, the Department of Public Health, the Department of

15 Agriculture, the Department of State Police, and the Department

16 of Financial and Professional Regulation may adopt emergency

17 rules in accordance with this subsection (gg). The rulemaking

18 authority granted in this subsection (gg) shall apply only to

19 rules adopted before December 31, 2021. Notwithstanding the

20 provisions of subsection (c), emergency rules adopted under

21 this subsection (gg) shall be effective for 180 days. The

22 adoption of emergency rules authorized by this subsection (gg)

23 is deemed to be necessary for the public interest, safety, and

24 welfare.

25 (Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;

26 100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.

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1 6-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;

2 100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 101-1, eff.

3 2-19-19.)

4 Section 900-8. The Freedom of Information Act is amended by

5 changing Section 7.5 as follows:

6 (5 ILCS 140/7.5)

7 Sec. 7.5. Statutory exemptions. To the extent provided for

8 by the statutes referenced below, the following shall be exempt

9 from inspection and copying:

10 (a) All information determined to be confidential

11 under Section 4002 of the Technology Advancement and

12 Development Act.

13 (b) Library circulation and order records identifying

14 library users with specific materials under the Library

15 Records Confidentiality Act.

16 (c) Applications, related documents, and medical

17 records received by the Experimental Organ Transplantation

18 Procedures Board and any and all documents or other records

19 prepared by the Experimental Organ Transplantation

20 Procedures Board or its staff relating to applications it

21 has received.

22 (d) Information and records held by the Department of

23 Public Health and its authorized representatives relating

24 to known or suspected cases of sexually transmissible

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1 disease or any information the disclosure of which is

2 restricted under the Illinois Sexually Transmissible

3 Disease Control Act.

4 (e) Information the disclosure of which is exempted

5 under Section 30 of the Radon Industry Licensing Act.

6 (f) Firm performance evaluations under Section 55 of

7 the Architectural, Engineering, and Land Surveying

8 Qualifications Based Selection Act.

9 (g) Information the disclosure of which is restricted

10 and exempted under Section 50 of the Illinois Prepaid

11 Tuition Act.

12 (h) Information the disclosure of which is exempted

13 under the State Officials and Employees Ethics Act, and

14 records of any lawfully created State or local inspector

15 general's office that would be exempt if created or

16 obtained by an Executive Inspector General's office under

17 that Act.

18 (i) Information contained in a local emergency energy

19 plan submitted to a municipality in accordance with a local

20 emergency energy plan ordinance that is adopted under

21 Section 11-21.5-5 of the Illinois Municipal Code.

22 (j) Information and data concerning the distribution

23 of surcharge moneys collected and remitted by carriers

24 under the Emergency Telephone System Act.

25 (k) Law enforcement officer identification information

26 or driver identification information compiled by a law

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1 enforcement agency or the Department of Transportation

2 under Section 11-212 of the Illinois Vehicle Code.

3 (l) Records and information provided to a residential

4 health care facility resident sexual assault and death

5 review team or the Executive Council under the Abuse

6 Prevention Review Team Act.

7 (m) Information provided to the predatory lending

8 database created pursuant to Article 3 of the Residential

9 Real Property Disclosure Act, except to the extent

10 authorized under that Article.

11 (n) Defense budgets and petitions for certification of

12 compensation and expenses for court appointed trial

13 counsel as provided under Sections 10 and 15 of the Capital

14 Crimes Litigation Act. This subsection (n) shall apply

15 until the conclusion of the trial of the case, even if the

16 prosecution chooses not to pursue the death penalty prior

17 to trial or sentencing.

18 (o) Information that is prohibited from being

19 disclosed under Section 4 of the Illinois Health and

20 Hazardous Substances Registry Act.

21 (p) Security portions of system safety program plans,

22 investigation reports, surveys, schedules, lists, data, or

23 information compiled, collected, or prepared by or for the

24 Regional Transportation Authority under Section 2.11 of

25 the Regional Transportation Authority Act or the St. Clair

26 County Transit District under the Bi-State Transit Safety

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1 Act.

2 (q) Information prohibited from being disclosed by the

3 Personnel Record ~~Records~~ Review Act.

4 (r) Information prohibited from being disclosed by the

5 Illinois School Student Records Act.

6 (s) Information the disclosure of which is restricted

7 under Section 5-108 of the Public Utilities Act.

8 (t) All identified or deidentified health information

9 in the form of health data or medical records contained in,

10 stored in, submitted to, transferred by, or released from

11 the Illinois Health Information Exchange, and identified

12 or deidentified health information in the form of health

13 data and medical records of the Illinois Health Information

14 Exchange in the possession of the Illinois Health

15 Information Exchange Authority due to its administration

16 of the Illinois Health Information Exchange. The terms

17 "identified" and "deidentified" shall be given the same

18 meaning as in the Health Insurance Portability and

19 Accountability Act of 1996, Public Law 104-191, or any

20 subsequent amendments thereto, and any regulations

21 promulgated thereunder.

22 (u) Records and information provided to an independent

23 team of experts under the Developmental Disability and

24 Mental Health Safety Act (also known as Brian's Law).

25 (v) Names and information of people who have applied

26 for or received Firearm Owner's Identification Cards under

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1 the Firearm Owners Identification Card Act or applied for

2 or received a concealed carry license under the Firearm

3 Concealed Carry Act, unless otherwise authorized by the

4 Firearm Concealed Carry Act; and databases under the

5 Firearm Concealed Carry Act, records of the Concealed Carry

6 Licensing Review Board under the Firearm Concealed Carry

7 Act, and law enforcement agency objections under the

8 Firearm Concealed Carry Act.

9 (w) Personally identifiable information which is

10 exempted from disclosure under subsection (g) of Section

11 19.1 of the Toll Highway Act.

12 (x) Information which is exempted from disclosure

13 under Section 5-1014.3 of the Counties Code or Section

14 8-11-21 of the Illinois Municipal Code.

15 (y) Confidential information under the Adult

16 Protective Services Act and its predecessor enabling

17 statute, the Elder Abuse and Neglect Act, including

18 information about the identity and administrative finding

19 against any caregiver of a verified and substantiated

20 decision of abuse, neglect, or financial exploitation of an

21 eligible adult maintained in the Registry established

22 under Section 7.5 of the Adult Protective Services Act.

23 (z) Records and information provided to a fatality

24 review team or the Illinois Fatality Review Team Advisory

25 Council under Section 15 of the Adult Protective Services

26 Act.

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1 (aa) Information which is exempted from disclosure

2 under Section 2.37 of the Wildlife Code.

3 (bb) Information which is or was prohibited from

4 disclosure by the Juvenile Court Act of 1987.

5 (cc) Recordings made under the Law Enforcement

6 Officer-Worn Body Camera Act, except to the extent

7 authorized under that Act.

8 (dd) Information that is prohibited from being

9 disclosed under Section 45 of the Condominium and Common

10 Interest Community Ombudsperson Act.

11 (ee) Information that is exempted from disclosure

12 under Section 30.1 of the Pharmacy Practice Act.

13 (ff) Information that is exempted from disclosure

14 under the Revised Uniform Unclaimed Property Act.

15 (gg) Information that is prohibited from being

16 disclosed under Section 7-603.5 of the Illinois Vehicle

17 Code.

18 (hh) Records that are exempt from disclosure under

19 Section 1A-16.7 of the Election Code.

20 (ii) Information which is exempted from disclosure

21 under Section 2505-800 of the Department of Revenue Law of

22 the Civil Administrative Code of Illinois.

23 (jj) Information and reports that are required to be

24 submitted to the Department of Labor by registering day and

25 temporary labor service agencies but are exempt from

26 disclosure under subsection (a-1) of Section 45 of the Day

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1 and Temporary Labor Services Act.

2 (kk) Information prohibited from disclosure under the

3 Seizure and Forfeiture Reporting Act.

4 (ll) Information the disclosure of which is restricted

5 and exempted under Section 5-30.8 of the Illinois Public

6 Aid Code.

7 (mm) ~~(ll)~~ Records that are exempt from disclosure under

8 Section 4.2 of the Crime Victims Compensation Act.

9 (nn) ~~(ll)~~ Information that is exempt from disclosure

10 under Section 70 of the Higher Education Student Assistance

11 Act.

12 (oo) Information that is exempt from disclosure under

13 the Cannabis Regulation and Tax Act.

14 (Source: P.A. 99-78, eff. 7-20-15; 99-298, eff. 8-6-15; 99-352,

15 eff. 1-1-16; 99-642, eff. 7-28-16; 99-776, eff. 8-12-16;

16 99-863, eff. 8-19-16; 100-20, eff. 7-1-17; 100-22, eff. 1-1-18;

17 100-201, eff. 8-18-17; 100-373, eff. 1-1-18; 100-464, eff.

18 8-28-17; 100-465, eff. 8-31-17; 100-512, eff. 7-1-18; 100-517,

19 eff. 6-1-18; 100-646, eff. 7-27-18; 100-690, eff. 1-1-19;

20 100-863, eff. 8-14-18; 100-887, eff. 8-14-18; revised

21 10-12-18.)

22 Section 900-10. The Department of Revenue Law of the Civil

23 Administrative Code of Illinois is amended by changing Section

24 2505-210 as follows:

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1 (20 ILCS 2505/2505-210) (was 20 ILCS 2505/39c-1)

2 Sec. 2505-210. Electronic funds transfer.

3 (a) The Department may provide means by which persons

4 having a tax liability under any Act administered by the

5 Department may use electronic funds transfer to pay the tax

6 liability.

7 (b) Mandatory payment by electronic funds transfer. Except

8 as otherwise provided in a tax Act administered by the

9 Department ~~Beginning on October 1, 2002, and through September~~

10 ~~30, 2010, a taxpayer who has an annual tax liability of~~

11 ~~$200,000 or more shall make all payments of that tax to the~~

12 ~~Department by electronic funds transfer. Beginning October 1,~~

13 ~~2010~~, a taxpayer (other than an individual taxpayer) who has an

14 annual tax liability of $20,000 or more and an individual

15 taxpayer who has an annual tax liability of $200,000 or more

16 shall make all payments of that tax to the Department by

17 electronic funds transfer. Before August 1 of each year,

18 beginning in 2002, the Department shall notify all taxpayers

19 required to make payments by electronic funds transfer. All

20 taxpayers required to make payments by electronic funds

21 transfer shall make those payments for a minimum of one year

22 beginning on October 1. For purposes of this subsection (b),

23 the term "annual tax liability" means, except as provided in

24 subsections (c) and (d) of this Section, the sum of the

25 taxpayer's liabilities under a tax Act administered by the

26 Department for the immediately preceding calendar year.

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1 (c) For purposes of subsection (b), the term "annual tax

2 liability" means, for a taxpayer that incurs a tax liability

3 under the Retailers' Occupation Tax Act, Service Occupation Tax

4 Act, Use Tax Act, Service Use Tax Act, or any other State or

5 local occupation or use tax law that is administered by the

6 Department, the sum of the taxpayer's liabilities under the

7 Retailers' Occupation Tax Act, Service Occupation Tax Act, Use

8 Tax Act, Service Use Tax Act, and all other State and local

9 occupation and use tax laws administered by the Department for

10 the immediately preceding calendar year.

11 (d) For purposes of subsection (b), the term "annual tax

12 liability" means, for a taxpayer that incurs an Illinois income

13 tax liability, the greater of:

14 (1) the amount of the taxpayer's tax liability under

15 Article 7 of the Illinois Income Tax Act for the

16 immediately preceding calendar year; or

17 (2) the taxpayer's estimated tax payment obligation

18 under Article 8 of the Illinois Income Tax Act for the

19 immediately preceding calendar year.

20 (e) The Department shall adopt such rules as are necessary

21 to effectuate a program of electronic funds transfer and the

22 requirements of this Section.

23 (Source: P.A. 100-1171, eff. 1-4-19.)

24 Section 900-12. The Criminal Identification Act is amended

25 by changing Section 5.2 as follows:

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1 (20 ILCS 2630/5.2)

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

3 (a) General Provisions.

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

5 the meanings set forth in this subsection, except when a

6 particular context clearly requires a different meaning.

7 (A) The following terms shall have the meanings

8 ascribed to them in the Unified Code of Corrections,

9 730 ILCS 5/5-1-2 through 5/5-1-22:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2 5/5-1-3) brought against a defendant where the

3 defendant is not arrested prior to or as a direct

4 result of the charge.

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

6 sentence entered upon a plea of guilty or upon a

7 verdict or finding of guilty of an offense, rendered by

8 a legally constituted jury or by a court of competent

9 jurisdiction authorized to try the case without a jury.

10 An order of supervision successfully completed by the

11 petitioner is not a conviction. An order of qualified

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

13 successfully completed by the petitioner is not a

14 conviction. An order of supervision or an order of

15 qualified probation that is terminated

16 unsatisfactorily is a conviction, unless the

17 unsatisfactory termination is reversed, vacated, or

18 modified and the judgment of conviction, if any, is

19 reversed or vacated.

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

21 business offense, misdemeanor, felony, or municipal

22 ordinance violation (as defined in subsection

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

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

25 be considered a criminal offense.

26 (E) "Expunge" means to physically destroy the

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1 records or return them to the petitioner and to

2 obliterate the petitioner's name from any official

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

4 shall require the physical destruction of the circuit

5 court file, but such records relating to arrests or

6 charges, or both, ordered expunged shall be impounded

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

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

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

10 the sentence, order of supervision, or order of

11 qualified probation (as defined by subsection

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

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

14 any jurisdiction, regardless of whether the petitioner

15 has included the criminal offense for which the

16 sentence or order of supervision or qualified

17 probation was imposed in his or her petition. If

18 multiple sentences, orders of supervision, or orders

19 of qualified probation terminate on the same day and

20 are last in time, they shall be collectively considered

21 the "last sentence" regardless of whether they were

22 ordered to run concurrently.

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

24 business offense, or Class C misdemeanor under the

25 Illinois Vehicle Code or a similar provision of a

26 municipal or local ordinance.

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

2 of Section 4 or 5 of the Cannabis Control Act

3 concerning not more than 30 grams of any substance

4 containing cannabis, provided the violation did not

5 include a penalty enhancement under Section 7 of the

6 Cannabis Control Act and is not associated with an

7 arrest, conviction or other disposition for a violent

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

9 Rights of Crime Victims and Witnesses Act.

10 (H) "Municipal ordinance violation" means an

11 offense defined by a municipal or local ordinance that

12 is criminal in nature and with which the petitioner was

13 charged or for which the petitioner was arrested and

14 released without charging.

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

16 prosecuted as an adult who has applied for relief under

17 this Section.

18 (J) "Qualified probation" means an order of

19 probation under Section 10 of the Cannabis Control Act,

20 Section 410 of the Illinois Controlled Substances Act,

21 Section 70 of the Methamphetamine Control and

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

23 of the Unified Code of Corrections, Section

24 12-4.3(b)(1) and (2) of the Criminal Code of 1961 (as

25 those provisions existed before their deletion by

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

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1 Alcoholism and Other Drug Dependency Act, Section

2 40-10 of the Substance Use Disorder Act, or Section 10

3 of the Steroid Control Act. For the purpose of this

4 Section, "successful completion" of an order of

5 qualified probation under Section 10-102 of the

6 Illinois Alcoholism and Other Drug Dependency Act and

7 Section 40-10 of the Substance Use Disorder Act means

8 that the probation was terminated satisfactorily and

9 the judgment of conviction was vacated.

10 (K) "Seal" means to physically and electronically

11 maintain the records, unless the records would

12 otherwise be destroyed due to age, but to make the

13 records unavailable without a court order, subject to

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

15 petitioner's name shall also be obliterated from the

16 official index required to be kept by the circuit court

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

18 any index issued by the circuit court clerk before the

19 entry of the order to seal shall not be affected.

20 (L) "Sexual offense committed against a minor"

21 includes but is not limited to the offenses of indecent

22 solicitation of a child or criminal sexual abuse when

23 the victim of such offense is under 18 years of age.

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

25 order of supervision or qualified probation includes

26 either satisfactory or unsatisfactory termination of

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1 the sentence, unless otherwise specified in this

2 Section. A sentence is terminated notwithstanding any

3 outstanding financial legal obligation.

4 (2) Minor Traffic Offenses. Orders of supervision or

5 convictions for minor traffic offenses shall not affect a

6 petitioner's eligibility to expunge or seal records

7 pursuant to this Section.

8 (2.5) Commencing 180 days after July 29, 2016 (the

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

10 agency issuing the citation shall automatically expunge,

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

12 enforcement records of a person found to have committed a

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

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

15 the Drug Paraphernalia Control Act in the law enforcement

16 agency's possession or control and which contains the final

17 satisfactory disposition which pertain to the person

18 issued a citation for that offense. The law enforcement

19 agency shall provide by rule the process for access,

20 review, and to confirm the automatic expungement by the law

21 enforcement agency issuing the citation. Commencing 180

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

23 99-697), the clerk of the circuit court shall expunge, upon

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

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

26 records of a person found in the circuit court to have

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1 committed a civil law violation of subsection (a) of

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

3 Section 3.5 of the Drug Paraphernalia Control Act in the

4 clerk's possession or control and which contains the final

5 satisfactory disposition which pertain to the person

6 issued a citation for any of those offenses.

7 (3) Exclusions. Except as otherwise provided in

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

9 of this Section, the court shall not order:

10 (A) the sealing or expungement of the records of

11 arrests or charges not initiated by arrest that result

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

13 any sexual offense committed against a minor; (ii)

14 Section 11-501 of the Illinois Vehicle Code or a

15 similar provision of a local ordinance; or (iii)

16 Section 11-503 of the Illinois Vehicle Code or a

17 similar provision of a local ordinance, unless the

18 arrest or charge is for a misdemeanor violation of

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

20 of a local ordinance, that occurred prior to the

21 offender reaching the age of 25 years and the offender

22 has no other conviction for violating Section 11-501 or

23 11-503 of the Illinois Vehicle Code or a similar

24 provision of a local ordinance.

25 (B) the sealing or expungement of records of minor

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

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1 unless the petitioner was arrested and released

2 without charging.

3 (C) the sealing of the records of arrests or

4 charges not initiated by arrest which result in an

5 order of supervision or a conviction for the following

6 offenses:

7 (i) offenses included in Article 11 of the

8 Criminal Code of 1961 or the Criminal Code of 2012

9 or a similar provision of a local ordinance, except

10 Section 11-14 and a misdemeanor violation of

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

12 Criminal Code of 2012, or a similar provision of a

13 local ordinance;

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

15 26-5, or 48-1 of the Criminal Code of 1961 or the

16 Criminal Code of 2012, or a similar provision of a

17 local ordinance;

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

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

20 or Section 125 of the Stalking No Contact Order

21 Act, or Section 219 of the Civil No Contact Order

22 Act, or a similar provision of a local ordinance;

23 (iv) Class A misdemeanors or felony offenses

24 under the Humane Care for Animals Act; or

25 (v) any offense or attempted offense that

26 would subject a person to registration under the

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1 Sex Offender Registration Act.

2 (D) (blank).

3 (b) Expungement.

4 (1) A petitioner may petition the circuit court to

5 expunge the records of his or her arrests and charges not

6 initiated by arrest when each arrest or charge not

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

8 acquittal, dismissal, or the petitioner's release without

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

10 conviction which was vacated or reversed, unless excluded

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

12 such supervision was successfully completed by the

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

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

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

16 successfully completed by the petitioner.

17 (1.5) When a petitioner seeks to have a record of

18 arrest expunged under this Section, and the offender has

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

20 may object to the expungement on the grounds that the

21 records contain specific relevant information aside from

22 the mere fact of the arrest.

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

24 (A) When the arrest or charge not initiated by

25 arrest sought to be expunged resulted in an acquittal,

26 dismissal, the petitioner's release without charging,

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1 or the reversal or vacation of a conviction, there is

2 no waiting period to petition for the expungement of

3 such records.

4 (B) When the arrest or charge not initiated by

5 arrest sought to be expunged resulted in an order of

6 supervision, successfully completed by the petitioner,

7 the following time frames will apply:

8 (i) Those arrests or charges that resulted in

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

10 3-710, or 5-401.3 of the Illinois Vehicle Code or a

11 similar provision of a local ordinance, or under

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

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

14 similar provision of a local ordinance, shall not

15 be eligible for expungement until 5 years have

16 passed following the satisfactory termination of

17 the supervision.

18 (i-5) Those arrests or charges that resulted

19 in orders of supervision for a misdemeanor

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

21 the Illinois Vehicle Code or a similar provision of

22 a local ordinance, that occurred prior to the

23 offender reaching the age of 25 years and the

24 offender has no other conviction for violating

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

26 Code or a similar provision of a local ordinance

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1 shall not be eligible for expungement until the

2 petitioner has reached the age of 25 years.

3 (ii) Those arrests or charges that resulted in

4 orders of supervision for any other offenses shall

5 not be eligible for expungement until 2 years have

6 passed following the satisfactory termination of

7 the supervision.

8 (C) When the arrest or charge not initiated by

9 arrest sought to be expunged resulted in an order of

10 qualified probation, successfully completed by the

11 petitioner, such records shall not be eligible for

12 expungement until 5 years have passed following the

13 satisfactory termination of the probation.

14 (3) Those records maintained by the Department for

15 persons arrested prior to their 17th birthday shall be

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

17 Act of 1987.

18 (4) Whenever a person has been arrested for or

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

20 identity he or she has stolen or otherwise come into

21 possession of, the aggrieved person from whom the identity

22 was stolen or otherwise obtained without authorization,

23 upon learning of the person having been arrested using his

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

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

26 court order entered nunc pro tunc by the Chief Judge to

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

2 all official records of the arresting authority, the

3 Department, other criminal justice agencies, the

4 prosecutor, and the trial court concerning such arrest, if

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

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

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

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

9 records of the circuit court clerk shall be sealed until

10 further order of the court upon good cause shown and the

11 name of the aggrieved person obliterated on the official

12 index required to be kept by the circuit court clerk under

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

14 not affect any index issued by the circuit court clerk

15 before the entry of the order. Nothing in this Section

16 shall limit the Department of State Police or other

17 criminal justice agencies or prosecutors from listing

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

19 used.

20 (5) Whenever a person has been convicted of criminal

21 sexual assault, aggravated criminal sexual assault,

22 predatory criminal sexual assault of a child, criminal

23 sexual abuse, or aggravated criminal sexual abuse, the

24 victim of that offense may request that the State's

25 Attorney of the county in which the conviction occurred

26 file a verified petition with the presiding trial judge at

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

2 seal the records of the circuit court clerk in connection

3 with the proceedings of the trial court concerning that

4 offense. However, the records of the arresting authority

5 and the Department of State Police concerning the offense

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

7 shall make the records of the circuit court clerk in

8 connection with the proceedings of the trial court

9 concerning the offense available for public inspection.

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

11 or on collateral attack and the court determines by clear

12 and convincing evidence that the petitioner was factually

13 innocent of the charge, the court that finds the petitioner

14 factually innocent of the charge shall enter an expungement

15 order for the conviction for which the petitioner has been

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

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

18 (7) Nothing in this Section shall prevent the

19 Department of State Police from maintaining all records of

20 any person who is admitted to probation upon terms and

21 conditions and who fulfills those terms and conditions

22 pursuant to Section 10 of the Cannabis Control Act, Section

23 410 of the Illinois Controlled Substances Act, Section 70

24 of the Methamphetamine Control and Community Protection

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

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

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

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

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

4 the Substance Use Disorder Act, or Section 10 of the

5 Steroid Control Act.

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

7 innocence under Section 2-702 of the Code of Civil

8 Procedure, the court that grants the certificate of

9 innocence shall also enter an order expunging the

10 conviction for which the petitioner has been determined to

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

12 of the Code of Civil Procedure.

13 (c) Sealing.

14 (1) Applicability. Notwithstanding any other provision

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

16 to expungement of criminal records, this subsection

17 authorizes the sealing of criminal records of adults and of

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

19 provides for immediate sealing of certain records.

20 (2) Eligible Records. The following records may be

21 sealed:

22 (A) All arrests resulting in release without

23 charging;

24 (B) Arrests or charges not initiated by arrest

25 resulting in acquittal, dismissal, or conviction when

26 the conviction was reversed or vacated, except as

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

2 (C) Arrests or charges not initiated by arrest

3 resulting in orders of supervision, including orders

4 of supervision for municipal ordinance violations,

5 successfully completed by the petitioner, unless

6 excluded by subsection (a)(3);

7 (D) Arrests or charges not initiated by arrest

8 resulting in convictions, including convictions on

9 municipal ordinance violations, unless excluded by

10 subsection (a)(3);

11 (E) Arrests or charges not initiated by arrest

12 resulting in orders of first offender probation under

13 Section 10 of the Cannabis Control Act, Section 410 of

14 the Illinois Controlled Substances Act, Section 70 of

15 the Methamphetamine Control and Community Protection

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

17 Corrections; and

18 (F) Arrests or charges not initiated by arrest

19 resulting in felony convictions unless otherwise

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

21 Section.

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

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

24 sealed as follows:

25 (A) Records identified as eligible under

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

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1 time.

2 (B) Except as otherwise provided in subparagraph

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

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

5 years after the termination of petitioner's last

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

7 (C) Except as otherwise provided in subparagraph

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

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

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

11 of the petitioner's last sentence (as defined in

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

13 registration under the Arsonist Registration Act, the

14 Sex Offender Registration Act, or the Murderer and

15 Violent Offender Against Youth Registration Act may

16 not be sealed until the petitioner is no longer

17 required to register under that relevant Act.

18 (D) Records identified in subsection

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

20 reached the age of 25 years.

21 (E) Records identified as eligible under

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

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

24 petitioner's last sentence if the petitioner earned a

25 high school diploma, associate's degree, career

26 certificate, vocational technical certification, or

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

2 of General Educational Development, during the period

3 of his or her sentence, aftercare release, or mandatory

4 supervised release. This subparagraph shall apply only

5 to a petitioner who has not completed the same

6 educational goal prior to the period of his or her

7 sentence, aftercare release, or mandatory supervised

8 release. If a petition for sealing eligible records

9 filed under this subparagraph is denied by the court,

10 the time periods under subparagraph (B) or (C) shall

11 apply to any subsequent petition for sealing filed by

12 the petitioner.

13 (4) Subsequent felony convictions. A person may not

14 have subsequent felony conviction records sealed as

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

16 of any felony offense after the date of the sealing of

17 prior felony convictions as provided in this subsection

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

19 offense, order the unsealing of prior felony conviction

20 records previously ordered sealed by the court.

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

22 disposition for an eligible record under this subsection

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

24 right to have the records sealed and the procedures for the

25 sealing of the records.

26 (d) Procedure. The following procedures apply to

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

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

3 (1) Filing the petition. Upon becoming eligible to

4 petition for the expungement or sealing of records under

5 this Section, the petitioner shall file a petition

6 requesting the expungement or sealing of records with the

7 clerk of the court where the arrests occurred or the

8 charges were brought, or both. If arrests occurred or

9 charges were brought in multiple jurisdictions, a petition

10 must be filed in each such jurisdiction. The petitioner

11 shall pay the applicable fee, except no fee shall be

12 required if the petitioner has obtained a court order

13 waiving fees under Supreme Court Rule 298 or it is

14 otherwise waived.

15 (1.5) County fee waiver pilot program. In a county of

16 3,000,000 or more inhabitants, no fee shall be required to

17 be paid by a petitioner if the records sought to be

18 expunged or sealed were arrests resulting in release

19 without charging or arrests or charges not initiated by

20 arrest resulting in acquittal, dismissal, or conviction

21 when the conviction was reversed or vacated, unless

22 excluded by subsection (a)(3)(B). The provisions of this

23 paragraph (1.5), other than this sentence, are inoperative

24 on and after January 1, 2019.

25 (2) Contents of petition. The petition shall be

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

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

2 initiated by arrest sought to be sealed or expunged, the

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

4 the arresting authority, and such other information as the

5 court may require. During the pendency of the proceeding,

6 the petitioner shall promptly notify the circuit court

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

8 petitioner has received a certificate of eligibility for

9 sealing from the Prisoner Review Board under paragraph (10)

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

11 Corrections, the certificate shall be attached to the

12 petition.

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

14 petition proof that the petitioner has passed a test taken

15 within 30 days before the filing of the petition showing

16 the absence within his or her body of all illegal

17 substances as defined by the Illinois Controlled

18 Substances Act, the Methamphetamine Control and Community

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

20 is petitioning to:

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

22 (B) seal felony records for a violation of the

23 Illinois Controlled Substances Act, the

24 Methamphetamine Control and Community Protection Act,

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

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

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1 (D) expunge felony records of a qualified

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

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

4 promptly serve a copy of the petition and documentation to

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

6 State's Attorney or prosecutor charged with the duty of

7 prosecuting the offense, the Department of State Police,

8 the arresting agency and the chief legal officer of the

9 unit of local government effecting the arrest.

10 (5) Objections.

11 (A) Any party entitled to notice of the petition

12 may file an objection to the petition. All objections

13 shall be in writing, shall be filed with the circuit

14 court clerk, and shall state with specificity the basis

15 of the objection. Whenever a person who has been

16 convicted of an offense is granted a pardon by the

17 Governor which specifically authorizes expungement, an

18 objection to the petition may not be filed.

19 (B) Objections to a petition to expunge or seal

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

21 the petition.

22 (6) Entry of order.

23 (A) The Chief Judge of the circuit wherein the

24 charge was brought, any judge of that circuit

25 designated by the Chief Judge, or in counties of less

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

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

2 petition to expunge or seal as set forth in this

3 subsection (d)(6).

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

5 Department of State Police, the arresting agency, or

6 the chief legal officer files an objection to the

7 petition to expunge or seal within 60 days from the

8 date of service of the petition, the court shall enter

9 an order granting or denying the petition.

10 (C) Notwithstanding any other provision of law,

11 the court shall not deny a petition for sealing under

12 this Section because the petitioner has not satisfied

13 an outstanding legal financial obligation established,

14 imposed, or originated by a court, law enforcement

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

16 local government, including, but not limited to, any

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

18 financial obligation does not include any court

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

20 the Unified Code of Corrections, unless the

21 restitution has been converted to a civil judgment.

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

23 abrogates a legal financial obligation or otherwise

24 eliminates or affects the right of the holder of any

25 financial obligation to pursue collection under

26 applicable federal, State, or local law.

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

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

3 parties entitled to notice of the petition of the hearing

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

5 hearing, the State's Attorney shall consult with the

6 Department as to the appropriateness of the relief sought

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

8 court shall hear evidence on whether the petition should or

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

10 to expunge or seal the records based on the evidence

11 presented at the hearing. The court may consider the

12 following:

13 (A) the strength of the evidence supporting the

14 defendant's conviction;

15 (B) the reasons for retention of the conviction

16 records by the State;

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

18 and employment history;

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

20 arrest on the charge resulting in the conviction and

21 the filing of the petition under this Section; and

22 (E) the specific adverse consequences the

23 petitioner may be subject to if the petition is 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 Department, in a form and manner

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1 prescribed by the Department, to the petitioner, to the

2 State's Attorney or prosecutor charged with the duty of

3 prosecuting the offense, to the arresting agency, to the

4 chief legal officer of the unit of local government

5 effecting the arrest, and to such other criminal justice

6 agencies as may be ordered by the court.

7 (9) Implementation of order.

8 (A) Upon entry of an order to expunge records

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

10 (i) the records shall be expunged (as defined

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

12 the Department, and any other agency as ordered by

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

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

15 reconsider the order is filed pursuant to

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

17 (ii) the records of the circuit court clerk

18 shall be impounded until further order of the court

19 upon good cause shown and the name of the

20 petitioner obliterated on the official index

21 required to be kept by the circuit court clerk

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

23 the order shall not affect any index issued by the

24 circuit court clerk before the entry of the order;

25 and

26 (iii) in response to an inquiry for expunged

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1 records, the court, the Department, or the agency

2 receiving such inquiry, shall reply as it does in

3 response to inquiries when no records ever

4 existed.

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

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

7 (i) the records shall be expunged (as defined

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

9 and any other agency as ordered by the court,

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

11 unless a motion to vacate, modify, or reconsider

12 the order is filed pursuant to paragraph (12) of

13 subsection (d) of this Section;

14 (ii) the records of the circuit court clerk

15 shall be impounded until further order of the court

16 upon good cause shown and the name of the

17 petitioner obliterated on the official index

18 required to be kept by the circuit court clerk

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

20 the order shall not affect any index issued by the

21 circuit court clerk before the entry of the order;

22 (iii) the records shall be impounded by the

23 Department within 60 days of the date of service of

24 the order as ordered by the court, unless a motion

25 to vacate, modify, or reconsider the order is filed

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

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1 this Section;

2 (iv) records impounded by the Department may

3 be disseminated by the Department only as required

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

5 Attorney, and the court upon a later arrest for the

6 same or a similar offense or for the purpose of

7 sentencing for any subsequent felony, and to the

8 Department of Corrections upon conviction for any

9 offense; and

10 (v) in response to an inquiry for such records

11 from anyone not authorized by law to access such

12 records, the court, the Department, or the agency

13 receiving such inquiry shall reply as it does in

14 response to inquiries when no records ever

15 existed.

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

17 under subsection (e-6):

18 (i) the records shall be expunged (as defined

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

20 and any other agency as ordered by the court,

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

22 unless a motion to vacate, modify, or reconsider

23 the order is filed under paragraph (12) of

24 subsection (d) of this Section;

25 (ii) the records of the circuit court clerk

26 shall be impounded until further order of the court

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1 upon good cause shown and the name of the

2 petitioner obliterated on the official index

3 required to be kept by the circuit court clerk

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

5 the order shall not affect any index issued by the

6 circuit court clerk before the entry of the order;

7 (iii) the records shall be impounded by the

8 Department within 60 days of the date of service of

9 the order as ordered by the court, unless a motion

10 to vacate, modify, or reconsider the order is filed

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

12 Section;

13 (iv) records impounded by the Department may

14 be disseminated by the Department only as required

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

16 Attorney, and the court upon a later arrest for the

17 same or a similar offense or for the purpose of

18 sentencing for any subsequent felony, and to the

19 Department of Corrections upon conviction for any

20 offense; and

21 (v) in response to an inquiry for these records

22 from anyone not authorized by law to access the

23 records, the court, the Department, or the agency

24 receiving the inquiry shall reply as it does in

25 response to inquiries when no records ever

26 existed.

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

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

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

4 shall seal the records (as defined in subsection

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

6 from anyone not authorized by law to access such

7 records, the court, the Department, or the agency

8 receiving such inquiry shall reply as it does in

9 response to inquiries when no records ever existed.

10 (D) The Department shall send written notice to the

11 petitioner of its compliance with each order to expunge

12 or seal records within 60 days of the date of service

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

14 reconsider is filed, within 60 days of service of the

15 order resolving the motion, if that order requires the

16 Department to expunge or seal records. In the event of

17 an appeal from the circuit court order, the Department

18 shall send written notice to the petitioner of its

19 compliance with an Appellate Court or Supreme Court

20 judgment to expunge or seal records within 60 days of

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

22 required while any motion to vacate, modify, or

23 reconsider, or any appeal or petition for

24 discretionary appellate review, is pending.

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

26 judgment or other court record necessary to

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1 demonstrate the amount of any legal financial

2 obligation due and owing be made available for the

3 limited purpose of collecting any legal financial

4 obligations owed by the petitioner that were

5 established, imposed, or originated in the criminal

6 proceeding for which those records have been sealed.

7 The records made available under this subparagraph (E)

8 shall not be entered into the official index required

9 to be kept by the circuit court clerk under Section 16

10 of the Clerks of Courts Act and shall be immediately

11 re-impounded upon the collection of the outstanding

12 financial obligations.

13 (F) Notwithstanding any other provision of this

14 Section, a circuit court clerk may access a sealed

15 record for the limited purpose of collecting payment

16 for any legal financial obligations that were

17 established, imposed, or originated in the criminal

18 proceedings for which those records have been sealed.

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

20 fee equivalent to the cost of processing any order to

21 expunge or seal records. Notwithstanding any provision of

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

23 clerk may charge a fee equivalent to the cost associated

24 with the sealing or expungement of records by the circuit

25 court clerk. From the total filing fee collected for the

26 petition to seal or expunge, the circuit court clerk shall

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1 deposit $10 into the Circuit Court Clerk Operation and

2 Administrative Fund, to be used to offset the costs

3 incurred by the circuit court clerk in performing the

4 additional duties required to serve the petition to seal or

5 expunge on all parties. The circuit court clerk shall

6 collect and forward the Department of State Police portion

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

8 the State Police Services Fund. If the record brought under

9 an expungement petition was previously sealed under this

10 Section, the fee for the expungement petition for that same

11 record shall be waived.

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

13 expungement or sealing provisions of this Section shall

14 become final for purposes of appeal until 30 days after

15 service of the order on the petitioner and all parties

16 entitled to notice of the petition.

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

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

19 petitioner or any party entitled to notice may file a

20 motion to vacate, modify, or reconsider the order granting

21 or denying the petition to expunge or seal within 60 days

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

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

24 reconsider shall comply with subsection (c) of Section

25 2-1401 of the Code of Civil Procedure. Upon filing of a

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

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1 motion shall be served upon the petitioner and all parties

2 entitled to notice of the petition.

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

4 under the expungement or sealing provisions of this Section

5 shall not be considered void because it fails to comply

6 with the provisions of this Section or because of any error

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

8 circuit court retains jurisdiction to determine whether

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

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

11 this subsection (d).

12 (14) Compliance with Order Granting Petition to Seal

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

14 granting a petition to seal, all parties entitled to notice

15 of the petition must fully comply with the terms of the

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

17 party is seeking relief from the order through a motion

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

19 appealing the order.

20 (15) Compliance with Order Granting Petition to

21 Expunge Records. While a party is seeking relief from the

22 order granting the petition to expunge through a motion

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

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

25 of that order, the parties entitled to notice of the

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

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

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

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

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

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

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

7 5, 2013 (the effective date of Public Act 98-163).

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

9 is granted a pardon by the Governor which specifically

10 authorizes expungement, he or she may, upon verified petition

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

12 convicted, any judge of the circuit designated by the Chief

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

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

15 order entered expunging the record of arrest from the official

16 records of the arresting authority and order that the records

17 of the circuit court clerk and the Department be sealed until

18 further order of the court upon good cause shown or as

19 otherwise provided herein, and the name of the defendant

20 obliterated from the official index requested to be kept by the

21 circuit court clerk under Section 16 of the Clerks of Courts

22 Act in connection with the arrest and conviction for the

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

24 shall not affect any index issued by the circuit court clerk

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

26 Department may be disseminated by the Department only to the

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

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

3 of sentencing for any subsequent felony. Upon conviction for

4 any subsequent offense, the Department of Corrections shall

5 have access to all sealed records of the Department pertaining

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

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

8 the person who was pardoned.

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

10 offense is granted a certificate of eligibility for sealing by

11 the Prisoner Review Board which specifically authorizes

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

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

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

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

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

17 entered sealing the record of arrest from the official records

18 of the arresting authority and order that the records of the

19 circuit court clerk and the Department be sealed until further

20 order of the court upon good cause shown or as otherwise

21 provided herein, and the name of the petitioner obliterated

22 from the official index requested to be kept by the circuit

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

24 connection with the arrest and conviction for the offense for

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

26 shall not affect any index issued by the circuit court clerk

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

2 Department may be disseminated by the Department only as

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

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

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

6 of sentencing for any subsequent felony. Upon conviction for

7 any subsequent offense, the Department of Corrections shall

8 have access to all sealed records of the Department pertaining

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

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

11 the person who was granted the certificate of eligibility for

12 sealing.

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

14 offense is granted a certificate of eligibility for expungement

15 by the Prisoner Review Board which specifically authorizes

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

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

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

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

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

21 entered expunging the record of arrest from the official

22 records of the arresting authority and order that the records

23 of the circuit court clerk and the Department be sealed until

24 further order of the court upon good cause shown or as

25 otherwise provided herein, and the name of the petitioner

26 obliterated from the official index requested to be kept by the

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1 circuit court clerk under Section 16 of the Clerks of Courts

2 Act in connection with the arrest and conviction for the

3 offense for which he or she had been granted the certificate

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

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

6 by the Department may be disseminated by the Department only as

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

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

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

10 of sentencing for any subsequent felony. Upon conviction for

11 any subsequent offense, the Department of Corrections shall

12 have access to all expunged records of the Department

13 pertaining to that individual. Upon entry of the order of

14 expungement, the circuit court clerk shall promptly mail a copy

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

16 eligibility for expungement.

17 (f) Subject to available funding, the Illinois Department

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

19 especially on employment and recidivism rates, utilizing a

20 random sample of those who apply for the sealing of their

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

22 Illinois Department of Corrections, records of the Illinois

23 Department of Employment Security shall be utilized as

24 appropriate to assist in the study. The study shall not

25 disclose any data in a manner that would allow the

26 identification of any particular individual or employing unit.

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1 The study shall be made available to the General Assembly no

2 later than September 1, 2010.

3 (g) Immediate Sealing.

4 (1) Applicability. Notwithstanding any other provision

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

6 to expungement or sealing of criminal records, this

7 subsection authorizes the immediate sealing of criminal

8 records of adults and of minors prosecuted as adults.

9 (2) Eligible Records. Arrests or charges not initiated

10 by arrest resulting in acquittal or dismissal with

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

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

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

14 petition is filed with the circuit court clerk on the same

15 day and during the same hearing in which the case is

16 disposed.

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

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

19 may be sealed immediately after entry of the final

20 disposition of a case, notwithstanding the disposition of

21 other charges in the same case.

22 (4) Notice of Eligibility for Immediate Sealing. Upon

23 entry of a disposition for an eligible record under this

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

25 court of his or her right to have eligible records

26 immediately sealed and the procedure for the immediate

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1 sealing of these records.

2 (5) Procedure. The following procedures apply to

3 immediate sealing under this subsection (g).

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

5 disposition of the case, the defendant's attorney may

6 immediately petition the court, on behalf of the

7 defendant, for immediate sealing of eligible records

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

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

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

11 may be filed with the circuit court clerk during the

12 hearing in which the final disposition of the case is

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

14 petition for immediate sealing during the hearing, the

15 defendant may file a petition for sealing at any time

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

17 (B) Contents of Petition. The immediate sealing

18 petition shall be verified and shall contain the

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

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

21 arrest if applicable, the identity of the arresting

22 authority if applicable, and other information as the

23 court may require.

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

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

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

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

2 The petitioner shall not be required to serve a copy of

3 the petition on any other agency.

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

5 enter an order granting or denying the petition for

6 immediate sealing during the hearing in which it is

7 filed. Petitions for immediate sealing shall be ruled

8 on in the same hearing in which the final disposition

9 of the case is entered.

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

11 immediate sealing on the same day and during the same

12 hearing in which the disposition is rendered.

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

14 eligible records shall be served in conformance with

15 subsection (d)(8).

16 (H) Implementation of Order. An order to

17 immediately seal records shall be implemented in

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

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

20 clerk and the Department of State Police shall comply

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

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

23 subsection (g) shall become final for purposes of

24 appeal until 30 days after service of the order on the

25 petitioner and all parties entitled to service of the

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

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

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

3 petitioner, State's Attorney, or the Department of

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

5 reconsider the order denying the petition to

6 immediately seal within 60 days of service of the

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

8 order, a petition to vacate, modify, or reconsider

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

10 the Code of Civil Procedure.

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

12 sealing petition shall not be considered void because

13 it fails to comply with the provisions of this Section

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

15 modify, or reconsider. The circuit court retains

16 jurisdiction to determine whether the order is

17 voidable, and to vacate, modify, or reconsider its

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

19 this subsection (g).

20 (M) Compliance with Order Granting Petition to

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

22 order granting a petition to immediately seal, all

23 parties entitled to service of the order must fully

24 comply with the terms of the order within 60 days of

25 service of the order.

26 (h) Sealing; trafficking victims.

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

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

3 2012 shall be eligible to petition for immediate sealing of

4 his or her criminal record upon the completion of his or

5 her last sentence if his or her participation in the

6 underlying offense was a direct result of human trafficking

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

8 form of trafficking under the federal Trafficking Victims

9 Protection Act.

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

11 to the requirements provided under paragraph (4) of

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

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

14 was a victim of human trafficking at the time of the

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

16 offense was a direct result of human trafficking under

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

18 of trafficking under the federal Trafficking Victims

19 Protection Act.

20 (3) If an objection is filed alleging that the

21 petitioner is not entitled to immediate sealing under this

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

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

24 court shall determine whether the petitioner is entitled to

25 immediate sealing under this subsection (h). A petitioner

26 is eligible for immediate relief under this subsection (h)

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

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

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

4 participation in the offense was a direct result of human

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

6 or a severe form of trafficking under the federal

7 Trafficking Victims Protection Act.

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

9 (1) Expungement of Arrest Records of Minor Cannabis

10 Offenses.

11 (A) The Department of State Police and all law

12 enforcement agencies within the State shall

13 automatically expunge all criminal history records of

14 an arrest, charge not initiated by arrest, order of

15 supervision, or order of qualified probation for a

16 Minor Cannabis Offense committed prior to the

17 effective date of this amendatory Act of the 101st

18 General Assembly if:

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

20 of the arrest or law enforcement interaction

21 documented in the records; and

22 (ii) No criminal charges were filed relating

23 to the arrest or law enforcement interaction or

24 criminal charges were filed and subsequently

25 dismissed or vacated or the arrestee was

26 acquitted.

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1 (B) If the law enforcement agency is unable to

2 verify satisfaction of condition (ii) in paragraph

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

4 (A) shall be automatically expunged.

5 (C) Records shall be expunged pursuant to the

6 procedures set forth in subdivision (d)(9)(A) under

7 the following timelines:

8 (i) Records created prior to the effective

9 date of this amendatory Act of the 101st General

10 Assembly, but on or after January 1, 2013, shall be

11 automatically expunged prior to January 1, 2021;

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

13 but on or after January 1, 2000, shall be

14 automatically expunged prior to January 1, 2023;

15 (iii) Records created prior to January 1, 2000

16 shall be automatically expunged prior to January

17 1, 2025.

18 (D) Nothing in this Section shall be construed to

19 restrict or modify an individual's right to have that

20 individual's records expunged except as otherwise may

21 be provided in this Act, or diminish or abrogate any

22 rights or remedies otherwise available to the

23 individual.

24 (2) Pardons Authorizing Expungement of Minor Cannabis

25 Offenses.

26 (A) Upon the effective date of this amendatory Act

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1 of the 101st General Assembly, the Department of State

2 Police shall review all criminal history record

3 information and identify all records that meet all of

4 the following criteria:

5 (i) one or more convictions for a Minor

6 Cannabis Offense;

7 (ii) the conviction identified in paragraph

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

9 under Section 7 of the Cannabis Control Act; and

10 (iii) The conviction identified in paragraph

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

12 conviction or other disposition for a violent

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

14 the Rights of Crime Victims and Witnesses Act.

15 (B) Within 180 days after the effective date of

16 this amendatory Act of the 101st General Assembly, the

17 Department of State Police shall notify the Prisoner

18 Review Board of all such records that meet the criteria

19 established in paragraph (2)(A).

20 (i) The Prisoner Review Board shall notify the

21 State's Attorney of the county of conviction of

22 each record identified by State Police in

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

24 felony. The State's Attorney may provide a written

25 objection to the Prisoner Review Board on the sole

26 basis that the record identified does not meet the

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

2 objection must be filed within 60 days or by such

3 later date set by Prisoner Review Board in the

4 notice after the State's Attorney received notice

5 from the Prisoner Review Board.

6 (ii) In response to a written objection from a

7 State's Attorney, the Prisoner Review Board is

8 authorized to conduct a non-public hearing to

9 evaluate the information provided in the

10 objection.

11 (iii) The Prisoner Review Board shall make a

12 confidential and privileged recommendation to the

13 Governor as to whether to grant a pardon

14 authorizing expungement for each of the records

15 identified by the Department of State Police as

16 described in paragraph (2)(A).

17 (C) If an individual has been granted a pardon

18 authorizing expungement as described in this Section,

19 the Prisoner Review Board, through the Attorney

20 General, shall file a petition for expungement with the

21 Chief Judge of the circuit or any judge of the circuit

22 designated by the Chief Judge where the individual had

23 been convicted. Such petition may include more than one

24 individual. Whenever an individual who has been

25 convicted of an offense is granted a pardon by the

26 Governor that specifically authorizes expungement, an

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1 objection to the petition may not be filed. Petitions

2 to expunge under this subsection (i) may include more

3 than one individual. Within 90 days of the filing of

4 such a petition, the court shall enter an order

5 expunging the records of arrest from the official

6 records of the arresting authority and order that the

7 records of the circuit court clerk and the Department

8 of State Police be expunged and the name of the

9 defendant obliterated from the official index

10 requested to be kept by the circuit court clerk under

11 Section 16 of the Clerks of Courts Act in connection

12 with the arrest and conviction for the offense for

13 which the individual had received a pardon but the

14 order shall not affect any index issued by the circuit

15 court clerk before the entry of the order. Upon entry

16 of the order of expungement, the circuit court clerk

17 shall promptly provide a copy of the order to the

18 individual who was pardoned to the individual's last

19 known address or otherwise make available to the

20 individual upon request.

21 (D) Nothing in this Section is intended to diminish

22 or abrogate any rights or remedies otherwise available

23 to the individual.

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

25 expunge a conviction for a misdemeanor or Class 4 felony

26 violation of Section 4 or Section 5 of the Cannabis Control

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1 Act. Motions to vacate and expunge under this subsection

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

3 judicial circuit or any judge of the circuit designated by

4 the Chief Judge. When considering such a motion to vacate

5 and expunge, a court shall consider the following: the

6 reasons to retain the records provided by law enforcement,

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

8 offense, the time since the conviction, and the specific

9 adverse consequences if denied. An individual may file such

10 a petition after the completion of any sentence or

11 condition imposed by the conviction. Within 60 days of the

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

13 objection to such a petition along with supporting

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

15 records shall be expunged in accordance with subparagraph

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

17 aid, as defined by Section 15 of the Public Interest

18 Attorney Assistance Act, assisting individuals seeking to

19 file a motion to vacate and expunge under this subsection

20 may file motions to vacate and expunge with the Chief Judge

21 of a judicial circuit or any judge of the circuit

22 designated by the Chief Judge, and the motion may include

23 more than one individual.

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

25 and expunge a conviction for a misdemeanor or Class 4

26 felony violation of Section 4 or Section 5 of the Cannabis

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1 Control Act. Motions to vacate and expunge under this

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

3 Judge of a judicial circuit or any judge of the circuit

4 designated by the Chief Judge, and may include more than

5 one individual. When considering such a motion to vacate

6 and expunge, a court shall consider the following: the

7 reasons to retain the records provided by law enforcement,

8 the individual's age, the individual's age at the time of

9 offense, the time since the conviction, and the specific

10 adverse consequences if denied. If the State's Attorney

11 files a motion to vacate and expunge records for Minor

12 Cannabis Offenses pursuant to this Section, the State's

13 Attorney shall notify the Prisoner Review Board within 30

14 days of such filing. If a motion to vacate and expunge is

15 granted, the records shall be expunged in accordance with

16 subparagraph (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 the effective

23 date of this amendatory Act of the 101st General Assembly

24 and the person's case is still pending but a sentence has

25 not been imposed, the person may petition the court in

26 which the charges are pending for an order to summarily

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1 dismiss those charges against him or her, and expunge all

2 official records of his or her arrest, plea, trial,

3 conviction, incarceration, supervision, or expungement. If

4 the court determines, upon review, that: (A) the person was

5 arrested before the effective date of this amendatory Act

6 of the 101st General Assembly for an offense that has been

7 made eligible for expungement; (B) the case is pending at

8 the time; and (C) the person has not been sentenced of the

9 minor cannabis violation eligible for expungement under

10 this subsection, the court shall consider the following:

11 the reasons to retain the records provided by law

12 enforcement, the petitioner's age, the petitioner's age at

13 the time of offense, the time since the conviction, and the

14 specific adverse consequences if denied. If a motion to

15 dismiss and expunge is granted, the records shall be

16 expunged in accordance with subparagraph (d)(9)(A) of this

17 Section.

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

19 more convictions for Minor Cannabis Offenses under this

20 subsection (i) shall be released from incarceration upon

21 the issuance of an order under this subsection.

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

23 to use the access and review process, established in the

24 Department of State Police, for verifying that his or her

25 records relating to Minor Cannabis Offenses of the Cannabis

26 Control Act eligible under this Section have been 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 expunge

5 an expungeable offense shall not be limited under this

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

7 restore the person to the status he or she occupied before

8 the arrest, charge, or conviction.

9 (11) Information. The Department of State Police shall

10 post general information on its website about the

11 expungement process described in this subsection (i).

12 (Source: P.A. 99-78, eff. 7-20-15; 99-378, eff. 1-1-16; 99-385,

13 eff. 1-1-16; 99-642, eff. 7-28-16; 99-697, eff. 7-29-16;

14 99-881, eff. 1-1-17; 100-201, eff. 8-18-17; 100-282, eff.

15 1-1-18; 100-284, eff. 8-24-17; 100-287, eff. 8-24-17; 100-692,

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

17 100-863, eff. 8-14-18; revised 8-30-18.)

18 Section 900-15. The State Finance Act is amended by adding

19 Sections 5.891, 5.892, 5.893, 5.894, and 6z-107 as follows:

20 (30 ILCS 105/5.891 new)

21 Sec. 5.891. The Cannabis Regulation Fund.

22 (30 ILCS 105/5.892 new)

23 Sec. 5.892. The Cannabis Business Development Fund.

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1 (30 ILCS 105/5.893 new)

2 Sec. 5.893. Local Cannabis Consumer Excise Tax Trust Fund.

3 (30 ILCS 105/5.894 new)

4 Sec. 5.894. Cannabis Expungement Fund.

5 (30 ILCS 105/6z-107 new)

6 Sec. 6z-107. The Cannabis Regulation Fund.

7 (a) There is created the Cannabis Regulation Fund in the

8 State treasury, subject to appropriations unless otherwise

9 provided in this Section. All moneys collected under the

10 Cannabis Regulation and Tax Act shall be deposited into the

11 Cannabis Regulation Fund, consisting of taxes, license fees,

12 other fees, and any other amounts required to be deposited or

13 transferred into the Fund.

14 (b) Whenever the Department of Revenue determines that a

15 refund should be made under the Cannabis Regulation and Tax Act

16 to a claimant, the Department of Revenue shall submit a voucher

17 for payment to the State Comptroller, who shall cause the order

18 to be drawn for the amount specified and to the person named in

19 the notification from the Department of Revenue. This

20 subsection (b) shall constitute an irrevocable and continuing

21 appropriation of all amounts necessary for the payment of

22 refunds out of the Fund as authorized under this subsection

23 (b).

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1 (c) On or before the 25th day of each calendar month, the

2 Department of Revenue shall prepare and certify to the State

3 Comptroller the transfer and allocations of stated sums of

4 money from the Cannabis Regulation Fund to other named funds in

5 the State treasury. The amount subject to transfer shall be the

6 amount of the taxes, license fees, other fees, and any other

7 amounts paid into the Fund during the second preceding calendar

8 month, minus the refunds made under subsection (b) during the

9 second preceding calendar month by the Department. The

10 transfers shall be certified as follows:

11 (1) The Department of Revenue shall first determine the

12 allocations which shall remain in the Cannabis Regulation

13 Fund, subject to appropriations, to pay for the direct and

14 indirect costs associated with the implementation,

15 administration, and enforcement of the Cannabis Regulation

16 and Tax Act by the Department of Revenue, the Department of

17 State Police, the Department of Financial and Professional

18 Regulation, the Department of Agriculture, the Department

19 of Public Health, the Department of Commerce and Economic

20 Opportunity, and the Illinois Criminal Justice Information

21 Authority.

22 (2) After the allocations have been made as provided in

23 paragraph (1) of this subsection (c), of the remainder of

24 the amount subject to transfer for the month as determined

25 in this subsection (c), the Department shall certify the

26 transfer into the Cannabis Expungement Fund 1/12 of the

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1 fiscal year amount appropriated from the Cannabis

2 Expungement Fund for payment of costs incurred by State

3 courts, the Attorney General, State's Attorneys, civil

4 legal aid, as defined by Section 15 of the Public Interest

5 Attorney Assistance Act, and the Department of State Police

6 to facilitate petitions for expungement of Minor Cannabis

7 Offenses pursuant to this amendatory Act of the 101st

8 General Assembly, as adjusted by any supplemental

9 appropriation, plus cumulative deficiencies in such

10 transfers for prior months.

11 (3) After the allocations have been made as provided in

12 paragraphs (1) and (2) of this subsection (c), the

13 Department of Revenue shall certify to the State

14 Comptroller and the State Treasurer shall transfer the

15 amounts that the Department of Revenue determines shall be

16 transferred into the following named funds according to the

17 following:

18 (A) 2% shall be transferred to the Drug Treatment

19 Fund to be used by the Department of Human Services

20 for: (i) developing and administering a scientifically

21 and medically accurate public education campaign

22 educating youth and adults about the health and safety

23 risks of alcohol, tobacco, illegal drug use (including

24 prescription drugs), and cannabis, including use by

25 pregnant women; and (ii) data collection and analysis

26 of the public health impacts of legalizing the

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1 recreational use of cannabis. Expenditures for these

2 purposes shall be subject to appropriations.

3 (B) 8% shall be transferred to the Local Government

4 Distributive Fund and allocated as provided in Section

5 2 of the State Revenue Sharing Act. The moneys shall be

6 used to fund crime prevention programs, training, and

7 interdiction efforts, including detection,

8 enforcement, and prevention efforts, relating to the

9 illegal cannabis market and driving under the

10 influence of cannabis.

11 (C) 25% shall be transferred to the Criminal

12 Justice Information Projects Fund to be used for the

13 purposes of the Restore, Reinvest, and Renew Program to

14 address economic development, violence prevention

15 services, re-entry services, youth development, and

16 civil legal aid, as defined by Section 15 of the Public

17 Interest Attorney Assistance Act. The Restore,

18 Reinvest, and Renew Program shall address these issues

19 through targeted investments and intervention programs

20 and promotion of an employment infrastructure and

21 capacity building related to the social determinants

22 of health in impacted community areas. Expenditures

23 for these purposes shall be subject to appropriations.

24 (D) 20% shall be transferred to the Department of

25 Human Services Community Services Fund, to be used to

26 address substance abuse and prevention and mental

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1 health concerns, including treatment, education, and

2 prevention to address the negative impacts of

3 substance abuse and mental health issues, including

4 concentrated poverty, violence, and the historical

5 overuse of criminal justice responses in certain

6 communities, on the individual, family, and community,

7 including federal, State, and local governments,

8 health care institutions and providers, and

9 correctional facilities. Expenditures for these

10 purposes shall be subject to appropriations.

11 (E) 10% shall be transferred to the Budget

12 Stabilization Fund.

13 (F) 35%, or any remaining balance, shall be

14 transferred to the General Revenue Fund.

15 As soon as may be practical, but no later than 10 days

16 after receipt, by the State Comptroller of the transfer

17 certification provided for in this subsection (c) to be given

18 to the State Comptroller by the Department of Revenue, the

19 State Comptroller shall direct and the State Treasurer shall

20 transfer the respective amounts in accordance with the

21 directions contained in such certification.

22 (d) On July 1, 2019 the Department of Revenue shall certify

23 to the State Comptroller and the State Treasurer shall transfer

24 $5,000,000 from the Compassionate Use of Medical Cannabis Fund

25 to the Cannabis Regulation Fund.

26 (e) Notwithstanding any other law to the contrary and

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1 except as otherwise provided in this Section, this Fund is not

2 subject to sweeps, administrative charge-backs, or any other

3 fiscal or budgetary maneuver that would in any way transfer any

4 amounts from this Fund into any other fund of the State.

5 (f) The Cannabis Regulation Fund shall retain a balance of

6 $1,000,000 for the purposes of administrative costs.

7 (g) In Fiscal Year 2024 the allocations in subsection (c)

8 of this Section shall be reviewed and adjusted if the General

9 Assembly finds there is a greater need for funding for a

10 specific purpose in the State as it relates to this amendatory

11 Act of the 101st General Assembly.

12 Section 900-15.5. The Illinois Procurement Code is amended

13 by changing Section 1-10 as follows:

14 (30 ILCS 500/1-10)

15 Sec. 1-10. Application.

16 (a) This Code applies only to procurements for which

17 bidders, offerors, potential contractors, or contractors were

18 first solicited on or after July 1, 1998. This Code shall not

19 be construed to affect or impair any contract, or any provision

20 of a contract, entered into based on a solicitation prior to

21 the implementation date of this Code as described in Article

22 99, including but not limited to any covenant entered into with

23 respect to any revenue bonds or similar instruments. All

24 procurements for which contracts are solicited between the

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1 effective date of Articles 50 and 99 and July 1, 1998 shall be

2 substantially in accordance with this Code and its intent.

3 (b) This Code shall apply regardless of the source of the

4 funds with which the contracts are paid, including federal

5 assistance moneys. This Code shall not apply to:

6 (1) Contracts between the State and its political

7 subdivisions or other governments, or between State

8 governmental bodies, except as specifically provided in

9 this Code.

10 (2) Grants, except for the filing requirements of

11 Section 20-80.

12 (3) Purchase of care, except as provided in Section

13 5-30.6 of the Illinois Public Aid Code and this Section.

14 (4) Hiring of an individual as employee and not as an

15 independent contractor, whether pursuant to an employment

16 code or policy or by contract directly with that

17 individual.

18 (5) Collective bargaining contracts.

19 (6) Purchase of real estate, except that notice of this

20 type of contract with a value of more than $25,000 must be

21 published in the Procurement Bulletin within 10 calendar

22 days after the deed is recorded in the county of

23 jurisdiction. The notice shall identify the real estate

24 purchased, the names of all parties to the contract, the

25 value of the contract, and the effective date of the

26 contract.

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1 (7) Contracts necessary to prepare for anticipated

2 litigation, enforcement actions, or investigations,

3 provided that the chief legal counsel to the Governor shall

4 give his or her prior approval when the procuring agency is

5 one subject to the jurisdiction of the Governor, and

6 provided that the chief legal counsel of any other

7 procuring entity subject to this Code shall give his or her

8 prior approval when the procuring entity is not one subject

9 to the jurisdiction of the Governor.

10 (8) (Blank).

11 (9) Procurement expenditures by the Illinois

12 Conservation Foundation when only private funds are used.

13 (10) (Blank).

14 (11) Public-private agreements entered into according

15 to the procurement requirements of Section 20 of the

16 Public-Private Partnerships for Transportation Act and

17 design-build agreements entered into according to the

18 procurement requirements of Section 25 of the

19 Public-Private Partnerships for Transportation Act.

20 (12) Contracts for legal, financial, and other

21 professional and artistic services entered into on or

22 before December 31, 2018 by the Illinois Finance Authority

23 in which the State of Illinois is not obligated. Such

24 contracts shall be awarded through a competitive process

25 authorized by the Board of the Illinois Finance Authority

26 and are subject to Sections 5-30, 20-160, 50-13, 50-20,

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1 50-35, and 50-37 of this Code, as well as the final

2 approval by the Board of the Illinois Finance Authority of

3 the terms of the contract.

4 (13) Contracts for services, commodities, and

5 equipment to support the delivery of timely forensic

6 science services in consultation with and subject to the

7 approval of the Chief Procurement Officer as provided in

8 subsection (d) of Section 5-4-3a of the Unified Code of

9 Corrections, except for the requirements of Sections

10 20-60, 20-65, 20-70, and 20-160 and Article 50 of this

11 Code; however, the Chief Procurement Officer may, in

12 writing with justification, waive any certification

13 required under Article 50 of this Code. For any contracts

14 for services which are currently provided by members of a

15 collective bargaining agreement, the applicable terms of

16 the collective bargaining agreement concerning

17 subcontracting shall be followed.

18 On and after January 1, 2019, this paragraph (13),

19 except for this sentence, is inoperative.

20 (14) Contracts for participation expenditures required

21 by a domestic or international trade show or exhibition of

22 an exhibitor, member, or sponsor.

23 (15) Contracts with a railroad or utility that requires

24 the State to reimburse the railroad or utilities for the

25 relocation of utilities for construction or other public

26 purpose. Contracts included within this paragraph (15)

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1 shall include, but not be limited to, those associated

2 with: relocations, crossings, installations, and

3 maintenance. For the purposes of this paragraph (15),

4 "railroad" means any form of non-highway ground

5 transportation that runs on rails or electromagnetic

6 guideways and "utility" means: (1) public utilities as

7 defined in Section 3-105 of the Public Utilities Act, (2)

8 telecommunications carriers as defined in Section 13-202

9 of the Public Utilities Act, (3) electric cooperatives as

10 defined in Section 3.4 of the Electric Supplier Act, (4)

11 telephone or telecommunications cooperatives as defined in

12 Section 13-212 of the Public Utilities Act, (5) rural water

13 or waste water systems with 10,000 connections or less, (6)

14 a holder as defined in Section 21-201 of the Public

15 Utilities Act, and (7) municipalities owning or operating

16 utility systems consisting of public utilities as that term

17 is defined in Section 11-117-2 of the Illinois Municipal

18 Code.

19 (16) Procurement expenditures necessary for the

20 Department of Public Health to provide the delivery of

21 timely newborn screening services in accordance with the

22 Newborn Metabolic Screening Act.

23 (17) ~~(16)~~ Procurement expenditures necessary for the

24 Department of Agriculture, the Department of Financial and

25 Professional Regulation, the Department of Human Services,

26 and the Department of Public Health to implement the

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1 Compassionate Use of Medical Cannabis Pilot Program and

2 Opioid Alternative Pilot Program requirements and ensure

3 access to medical cannabis for patients with debilitating

4 medical conditions in accordance with the Compassionate

5 Use of Medical Cannabis Pilot Program Act.

6 (18) This Code does not apply to any procurements

7 necessary for the Department of Agriculture, the

8 Department of Financial and Professional Regulation, the

9 Department of Human Services, the Department of Commerce

10 and Economic Opportunity, and the Department of Public

11 Health to implement the Cannabis Regulation and Tax Act if

12 the applicable agency has made a good faith determination

13 that it is necessary and appropriate for the expenditure to

14 fall within this exemption and if the process is conducted

15 in a manner substantially in accordance with the

16 requirements of Sections 20-160, 25-60, 30-22, 50-5,

17 50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35,

18 50-36, 50-37, 50-38, and 50-50 of this Code; however, for

19 Section 50-35, compliance applies only to contracts or

20 subcontracts over $100,000. Notice of each contract

21 entered into under this paragraph (18) that is related to

22 the procurement of goods and services identified in

23 paragraph (1) through (9) of this subsection shall be

24 published in the Procurement Bulletin within 14 calendar

25 days after contract execution. The Chief Procurement

26 Officer shall prescribe the form and content of the notice.

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1 Each agency shall provide the Chief Procurement Officer, on

2 a monthly basis, in the form and content prescribed by the

3 Chief Procurement Officer, a report of contracts that are

4 related to the procurement of goods and services identified

5 in this subsection. At a minimum, this report shall include

6 the name of the contractor, a description of the supply or

7 service provided, the total amount of the contract, the

8 term of the contract, and the exception to this Code

9 utilized. A copy of any or all of these contracts shall be

10 made available to the Chief Procurement Officer

11 immediately upon request. The Chief Procurement Officer

12 shall submit a report to the Governor and General Assembly

13 no later than November 1 of each year that includes, at a

14 minimum, an annual summary of the monthly information

15 reported to the Chief Procurement Officer. This exemption

16 becomes inoperative 5 years after the effective date of

17 this amendatory Act of the 101st General Assembly.

18 Notwithstanding any other provision of law, for contracts

19 entered into on or after October 1, 2017 under an exemption

20 provided in any paragraph of this subsection (b), except

21 paragraph (1), (2), or (5), each State agency shall post to the

22 appropriate procurement bulletin the name of the contractor, a

23 description of the supply or service provided, the total amount

24 of the contract, the term of the contract, and the exception to

25 the Code utilized. 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 shall include, at a minimum, an

2 annual summary of the monthly information reported to the chief

3 procurement officer.

4 (c) This Code does not apply to the electric power

5 procurement process provided for under Section 1-75 of the

6 Illinois Power Agency Act and Section 16-111.5 of the Public

7 Utilities Act.

8 (d) Except for Section 20-160 and Article 50 of this Code,

9 and as expressly required by Section 9.1 of the Illinois

10 Lottery Law, the provisions of this Code do not apply to the

11 procurement process provided for under Section 9.1 of the

12 Illinois Lottery Law.

13 (e) This Code does not apply to the process used by the

14 Capital Development Board to retain a person or entity to

15 assist the Capital Development Board with its duties related to

16 the determination of costs of a clean coal SNG brownfield

17 facility, as defined by Section 1-10 of the Illinois Power

18 Agency Act, as required in subsection (h-3) of Section 9-220 of

19 the Public Utilities Act, including calculating the range of

20 capital costs, the range of operating and maintenance costs, or

21 the sequestration costs or monitoring the construction of clean

22 coal SNG brownfield facility for the full duration of

23 construction.

24 (f) (Blank).

25 (g) (Blank).

26 (h) This Code does not apply to the process to procure or

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1 contracts entered into in accordance with Sections 11-5.2 and

2 11-5.3 of the Illinois Public Aid Code.

3 (i) Each chief procurement officer may access records

4 necessary to review whether a contract, purchase, or other

5 expenditure is or is not subject to the provisions of this

6 Code, unless such records would be subject to attorney-client

7 privilege.

8 (j) This Code does not apply to the process used by the

9 Capital Development Board to retain an artist or work or works

10 of art as required in Section 14 of the Capital Development

11 Board Act.

12 (k) This Code does not apply to the process to procure

13 contracts, or contracts entered into, by the State Board of

14 Elections or the State Electoral Board for hearing officers

15 appointed pursuant to the Election Code.

16 (l) This Code does not apply to the processes used by the

17 Illinois Student Assistance Commission to procure supplies and

18 services paid for from the private funds of the Illinois

19 Prepaid Tuition Fund. As used in this subsection (l), "private

20 funds" means funds derived from deposits paid into the Illinois

21 Prepaid Tuition Trust Fund and the earnings thereon.

22 (Source: P.A. 99-801, eff. 1-1-17; 100-43, eff. 8-9-17;

23 100-580, eff. 3-12-18; 100-757, eff. 8-10-18; 100-1114, eff.

24 8-28-18; revised 10-18-18.)

25 Section 900-16. The Use Tax Act is amended by changing

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1 Section 9 as follows:

2 (35 ILCS 105/9) (from Ch. 120, par. 439.9)

3 Sec. 9. Except as to motor vehicles, watercraft, aircraft,

4 and trailers that are required to be registered with an agency

5 of this State, each retailer required or authorized to collect

6 the tax imposed by this Act shall pay to the Department the

7 amount of such tax (except as otherwise provided) at the time

8 when he is required to file his return for the period during

9 which such tax was collected, less a discount of 2.1% prior to

10 January 1, 1990, and 1.75% on and after January 1, 1990, or $5

11 per calendar year, whichever is greater, which is allowed to

12 reimburse the retailer for expenses incurred in collecting the

13 tax, keeping records, preparing and filing returns, remitting

14 the tax and supplying data to the Department on request. In the

15 case of retailers who report and pay the tax on a transaction

16 by transaction basis, as provided in this Section, such

17 discount shall be taken with each such tax remittance instead

18 of when such retailer files his periodic return. The discount

19 allowed under this Section is allowed only for returns that are

20 filed in the manner required by this Act. The Department may

21 disallow the discount for retailers whose certificate of

22 registration is revoked at the time the return is filed, but

23 only if the Department's decision to revoke the certificate of

24 registration has become final. A retailer need not remit that

25 part of any tax collected by him to the extent that he is

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1 required to remit and does remit the tax imposed by the

2 Retailers' Occupation Tax Act, with respect to the sale of the

3 same property.

4 Where such tangible personal property is sold under a

5 conditional sales contract, or under any other form of sale

6 wherein the payment of the principal sum, or a part thereof, is

7 extended beyond the close of the period for which the return is

8 filed, the retailer, in collecting the tax (except as to motor

9 vehicles, watercraft, aircraft, and trailers that are required

10 to be registered with an agency of this State), may collect for

11 each tax return period, only the tax applicable to that part of

12 the selling price actually received during such tax return

13 period.

14 Except as provided in this Section, on or before the

15 twentieth day of each calendar month, such retailer shall file

16 a return for the preceding calendar month. Such return shall be

17 filed on forms prescribed by the Department and shall furnish

18 such information as the Department may reasonably require. On

19 and after January 1, 2018, except for returns for motor

20 vehicles, watercraft, aircraft, and trailers that are required

21 to be registered with an agency of this State, with respect to

22 retailers whose annual gross receipts average $20,000 or more,

23 all returns required to be filed pursuant to this Act shall be

24 filed electronically. Retailers who demonstrate that they do

25 not have access to the Internet or demonstrate hardship in

26 filing electronically may petition the Department to waive the

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1 electronic filing requirement.

2 The Department may require returns to be filed on a

3 quarterly basis. If so required, a return for each calendar

4 quarter shall be filed on or before the twentieth day of the

5 calendar month following the end of such calendar quarter. The

6 taxpayer shall also file a return with the Department for each

7 of the first two months of each calendar quarter, on or before

8 the twentieth day of the following calendar month, stating:

9 1. The name of the seller;

10 2. The address of the principal place of business from

11 which he engages in the business of selling tangible

12 personal property at retail in this State;

13 3. The total amount of taxable receipts received by him

14 during the preceding calendar month from sales of tangible

15 personal property by him during such preceding calendar

16 month, including receipts from charge and time sales, but

17 less all deductions allowed by law;

18 4. The amount of credit provided in Section 2d of this

19 Act;

20 5. The amount of tax due;

21 5-5. The signature of the taxpayer; and

22 6. Such other reasonable information as the Department

23 may require.

24 If a taxpayer fails to sign a return within 30 days after

25 the proper notice and demand for signature by the Department,

26 the return shall be considered valid and any amount shown to be

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1 due on the return shall be deemed assessed.

2 Notwithstanding any other provision of this Act to the

3 contrary, retailers subject to tax on cannabis shall file all

4 cannabis tax returns and shall make all cannabis tax payments

5 by electronic means in the manner and form required by the

6 Department.

7 Beginning October 1, 1993, a taxpayer who has an average

8 monthly tax liability of $150,000 or more shall make all

9 payments required by rules of the Department by electronic

10 funds transfer. Beginning October 1, 1994, a taxpayer who has

11 an average monthly tax liability of $100,000 or more shall make

12 all payments required by rules of the Department by electronic

13 funds transfer. Beginning October 1, 1995, a taxpayer who has

14 an average monthly tax liability of $50,000 or more shall make

15 all payments required by rules of the Department by electronic

16 funds transfer. Beginning October 1, 2000, a taxpayer who has

17 an annual tax liability of $200,000 or more shall make all

18 payments required by rules of the Department by electronic

19 funds transfer. The term "annual tax liability" shall be the

20 sum of the taxpayer's liabilities under this Act, and under all

21 other State and local occupation and use tax laws administered

22 by the Department, for the immediately preceding calendar year.

23 The term "average monthly tax liability" means the sum of the

24 taxpayer's liabilities under this Act, and under all other

25 State and local occupation and use tax laws administered by the

26 Department, for the immediately preceding calendar year

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1 divided by 12. Beginning on October 1, 2002, a taxpayer who has

2 a tax liability in the amount set forth in subsection (b) of

3 Section 2505-210 of the Department of Revenue Law shall make

4 all payments required by rules of the Department by electronic

5 funds transfer.

6 Before August 1 of each year beginning in 1993, the

7 Department shall notify all taxpayers required to make payments

8 by electronic funds transfer. All taxpayers required to make

9 payments by electronic funds transfer shall make those payments

10 for a minimum of one year beginning on October 1.

11 Any taxpayer not required to make payments by electronic

12 funds transfer may make payments by electronic funds transfer

13 with the permission of the Department.

14 All taxpayers required to make payment by electronic funds

15 transfer and any taxpayers authorized to voluntarily make

16 payments by electronic funds transfer shall make those payments

17 in the manner authorized by the Department.

18 The Department shall adopt such rules as are necessary to

19 effectuate a program of electronic funds transfer and the

20 requirements of this Section.

21 Before October 1, 2000, if the taxpayer's average monthly

22 tax liability to the Department under this Act, the Retailers'

23 Occupation Tax Act, the Service Occupation Tax Act, the Service

24 Use Tax Act was $10,000 or more during the preceding 4 complete

25 calendar quarters, he shall file a return with the Department

26 each month by the 20th day of the month next following the

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1 month during which such tax liability is incurred and shall

2 make payments to the Department on or before the 7th, 15th,

3 22nd and last day of the month during which such liability is

4 incurred. On and after October 1, 2000, if the taxpayer's

5 average monthly tax liability to the Department under this Act,

6 the Retailers' Occupation Tax Act, the Service Occupation Tax

7 Act, and the Service Use Tax Act was $20,000 or more during the

8 preceding 4 complete calendar quarters, he shall file a return

9 with the Department each month by the 20th day of the month

10 next following the month during which such tax liability is

11 incurred and shall make payment to the Department on or before

12 the 7th, 15th, 22nd and last day of the month during which such

13 liability is incurred. If the month during which such tax

14 liability is incurred began prior to January 1, 1985, each

15 payment shall be in an amount equal to 1/4 of the taxpayer's

16 actual liability for the month or an amount set by the

17 Department not to exceed 1/4 of the average monthly liability

18 of the taxpayer to the Department for the preceding 4 complete

19 calendar quarters (excluding the month of highest liability and

20 the month of lowest liability in such 4 quarter period). If the

21 month during which such tax liability is incurred begins on or

22 after January 1, 1985, and prior to January 1, 1987, each

23 payment shall be in an amount equal to 22.5% of the taxpayer's

24 actual liability for the month or 27.5% of the taxpayer's

25 liability for the same calendar month of the preceding year. If

26 the month during which such tax liability is incurred begins on

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1 or after January 1, 1987, and prior to January 1, 1988, each

2 payment shall be in an amount equal to 22.5% of the taxpayer's

3 actual liability for the month or 26.25% of the taxpayer's

4 liability for the same calendar month of the preceding year. If

5 the month during which such tax liability is incurred begins on

6 or after January 1, 1988, and prior to January 1, 1989, or

7 begins on or after January 1, 1996, each payment shall be in an

8 amount equal to 22.5% of the taxpayer's actual liability for

9 the month or 25% of the taxpayer's liability for the same

10 calendar month of the preceding year. If the month during which

11 such tax liability is incurred begins on or after January 1,

12 1989, and prior to January 1, 1996, each payment shall be in an

13 amount equal to 22.5% of the taxpayer's actual liability for

14 the month or 25% of the taxpayer's liability for the same

15 calendar month of the preceding year or 100% of the taxpayer's

16 actual liability for the quarter monthly reporting period. The

17 amount of such quarter monthly payments shall be credited

18 against the final tax liability of the taxpayer's return for

19 that month. Before October 1, 2000, once applicable, the

20 requirement of the making of quarter monthly payments to the

21 Department shall continue until such taxpayer's average

22 monthly liability to the Department during the preceding 4

23 complete calendar quarters (excluding the month of highest

24 liability and the month of lowest liability) is less than

25 $9,000, or until such taxpayer's average monthly liability to

26 the Department as computed for each calendar quarter of the 4

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1 preceding complete calendar quarter period is less than

2 $10,000. However, if a taxpayer can show the Department that a

3 substantial change in the taxpayer's business has occurred

4 which causes the taxpayer to anticipate that his average

5 monthly tax liability for the reasonably foreseeable future

6 will fall below the $10,000 threshold stated above, then such

7 taxpayer may petition the Department for change in such

8 taxpayer's reporting status. On and after October 1, 2000, once

9 applicable, the requirement of the making of quarter monthly

10 payments to the Department shall continue until such taxpayer's

11 average monthly liability to the Department during the

12 preceding 4 complete calendar quarters (excluding the month of

13 highest liability and the month of lowest liability) is less

14 than $19,000 or until such taxpayer's average monthly liability

15 to the Department as computed for each calendar quarter of the

16 4 preceding complete calendar quarter period is less than

17 $20,000. However, if a taxpayer can show the Department that a

18 substantial change in the taxpayer's business has occurred

19 which causes the taxpayer to anticipate that his average

20 monthly tax liability for the reasonably foreseeable future

21 will fall below the $20,000 threshold stated above, then such

22 taxpayer may petition the Department for a change in such

23 taxpayer's reporting status. The Department shall change such

24 taxpayer's reporting status unless it finds that such change is

25 seasonal in nature and not likely to be long term. If any such

26 quarter monthly payment is not paid at the time or in the

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1 amount required by this Section, then the taxpayer shall be

2 liable for penalties and interest on the difference between the

3 minimum amount due and the amount of such quarter monthly

4 payment actually and timely paid, except insofar as the

5 taxpayer has previously made payments for that month to the

6 Department in excess of the minimum payments previously due as

7 provided in this Section. The Department shall make reasonable

8 rules and regulations to govern the quarter monthly payment

9 amount and quarter monthly payment dates for taxpayers who file

10 on other than a calendar monthly basis.

11 If any such payment provided for in this Section exceeds

12 the taxpayer's liabilities under this Act, the Retailers'

13 Occupation Tax Act, the Service Occupation Tax Act and the

14 Service Use Tax Act, as shown by an original monthly return,

15 the Department shall issue to the taxpayer a credit memorandum

16 no later than 30 days after the date of payment, which

17 memorandum may be submitted by the taxpayer to the Department

18 in payment of tax liability subsequently to be remitted by the

19 taxpayer to the Department or be assigned by the taxpayer to a

20 similar taxpayer under this Act, the Retailers' Occupation Tax

21 Act, the Service Occupation Tax Act or the Service Use Tax Act,

22 in accordance with reasonable rules and regulations to be

23 prescribed by the Department, except that if such excess

24 payment is shown on an original monthly return and is made

25 after December 31, 1986, no credit memorandum shall be issued,

26 unless requested by the taxpayer. If no such request is made,

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1 the taxpayer may credit such excess payment against tax

2 liability subsequently to be remitted by the taxpayer to the

3 Department under this Act, the Retailers' Occupation Tax Act,

4 the Service Occupation Tax Act or the Service Use Tax Act, in

5 accordance with reasonable rules and regulations prescribed by

6 the Department. If the Department subsequently determines that

7 all or any part of the credit taken was not actually due to the

8 taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall

9 be reduced by 2.1% or 1.75% of the difference between the

10 credit taken and that actually due, and the taxpayer shall be

11 liable for penalties and interest on such difference.

12 If the retailer is otherwise required to file a monthly

13 return and if the retailer's average monthly tax liability to

14 the Department does not exceed $200, the Department may

15 authorize his returns to be filed on a quarter annual basis,

16 with the return for January, February, and March of a given

17 year being due by April 20 of such year; with the return for

18 April, May and June of a given year being due by July 20 of such

19 year; with the return for July, August and September of a given

20 year being due by October 20 of such year, and with the return

21 for October, November and December of a given year being due by

22 January 20 of the following year.

23 If the retailer is otherwise required to file a monthly or

24 quarterly return and if the retailer's average monthly tax

25 liability to the Department does not exceed $50, the Department

26 may authorize his returns to be filed on an annual basis, with

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1 the return for a given year being due by January 20 of the

2 following year.

3 Such quarter annual and annual returns, as to form and

4 substance, shall be subject to the same requirements as monthly

5 returns.

6 Notwithstanding any other provision in this Act concerning

7 the time within which a retailer may file his return, in the

8 case of any retailer who ceases to engage in a kind of business

9 which makes him responsible for filing returns under this Act,

10 such retailer shall file a final return under this Act with the

11 Department not more than one month after discontinuing such

12 business.

13 In addition, with respect to motor vehicles, watercraft,

14 aircraft, and trailers that are required to be registered with

15 an agency of this State, except as otherwise provided in this

16 Section, every retailer selling this kind of tangible personal

17 property shall file, with the Department, upon a form to be

18 prescribed and supplied by the Department, a separate return

19 for each such item of tangible personal property which the

20 retailer sells, except that if, in the same transaction, (i) a

21 retailer of aircraft, watercraft, motor vehicles or trailers

22 transfers more than one aircraft, watercraft, motor vehicle or

23 trailer to another aircraft, watercraft, motor vehicle or

24 trailer retailer for the purpose of resale or (ii) a retailer

25 of aircraft, watercraft, motor vehicles, or trailers transfers

26 more than one aircraft, watercraft, motor vehicle, or trailer

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1 to a purchaser for use as a qualifying rolling stock as

2 provided in Section 3-55 of this Act, then that seller may

3 report the transfer of all the aircraft, watercraft, motor

4 vehicles or trailers involved in that transaction to the

5 Department on the same uniform invoice-transaction reporting

6 return form. For purposes of this Section, "watercraft" means a

7 Class 2, Class 3, or Class 4 watercraft as defined in Section

8 3-2 of the Boat Registration and Safety Act, a personal

9 watercraft, or any boat equipped with an inboard motor.

10 In addition, with respect to motor vehicles, watercraft,

11 aircraft, and trailers that are required to be registered with

12 an agency of this State, every person who is engaged in the

13 business of leasing or renting such items and who, in

14 connection with such business, sells any such item to a

15 retailer for the purpose of resale is, notwithstanding any

16 other provision of this Section to the contrary, authorized to

17 meet the return-filing requirement of this Act by reporting the

18 transfer of all the aircraft, watercraft, motor vehicles, or

19 trailers transferred for resale during a month to the

20 Department on the same uniform invoice-transaction reporting

21 return form on or before the 20th of the month following the

22 month in which the transfer takes place. Notwithstanding any

23 other provision of this Act to the contrary, all returns filed

24 under this paragraph must be filed by electronic means in the

25 manner and form as required by the Department.

26 The transaction reporting return in the case of motor

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1 vehicles or trailers that are required to be registered with an

2 agency of this State, shall be the same document as the Uniform

3 Invoice referred to in Section 5-402 of the Illinois Vehicle

4 Code and must show the name and address of the seller; the name

5 and address of the purchaser; the amount of the selling price

6 including the amount allowed by the retailer for traded-in

7 property, if any; the amount allowed by the retailer for the

8 traded-in tangible personal property, if any, to the extent to

9 which Section 2 of this Act allows an exemption for the value

10 of traded-in property; the balance payable after deducting such

11 trade-in allowance from the total selling price; the amount of

12 tax due from the retailer with respect to such transaction; the

13 amount of tax collected from the purchaser by the retailer on

14 such transaction (or satisfactory evidence that such tax is not

15 due in that particular instance, if that is claimed to be the

16 fact); the place and date of the sale; a sufficient

17 identification of the property sold; such other information as

18 is required in Section 5-402 of the Illinois Vehicle Code, and

19 such other information as the Department may reasonably

20 require.

21 The transaction reporting return in the case of watercraft

22 and aircraft must show the name and address of the seller; the

23 name and address of the purchaser; the amount of the selling

24 price including the amount allowed by the retailer for

25 traded-in property, if any; the amount allowed by the retailer

26 for the traded-in tangible personal property, if any, to the

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1 extent to which Section 2 of this Act allows an exemption for

2 the value of traded-in property; the balance payable after

3 deducting such trade-in allowance from the total selling price;

4 the amount of tax due from the retailer with respect to such

5 transaction; the amount of tax collected from the purchaser by

6 the retailer on such transaction (or satisfactory evidence that

7 such tax is not due in that particular instance, if that is

8 claimed to be the fact); the place and date of the sale, a

9 sufficient identification of the property sold, and such other

10 information as the Department may reasonably require.

11 Such transaction reporting return shall be filed not later

12 than 20 days after the date of delivery of the item that is

13 being sold, but may be filed by the retailer at any time sooner

14 than that if he chooses to do so. The transaction reporting

15 return and tax remittance or proof of exemption from the tax

16 that is imposed by this Act may be transmitted to the

17 Department by way of the State agency with which, or State

18 officer with whom, the tangible personal property must be

19 titled or registered (if titling or registration is required)

20 if the Department and such agency or State officer determine

21 that this procedure will expedite the processing of

22 applications for title or registration.

23 With each such transaction reporting return, the retailer

24 shall remit the proper amount of tax due (or shall submit

25 satisfactory evidence that the sale is not taxable if that is

26 the case), to the Department or its agents, whereupon the

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1 Department shall issue, in the purchaser's name, a tax receipt

2 (or a certificate of exemption if the Department is satisfied

3 that the particular sale is tax exempt) which such purchaser

4 may submit to the agency with which, or State officer with

5 whom, he must title or register the tangible personal property

6 that is involved (if titling or registration is required) in

7 support of such purchaser's application for an Illinois

8 certificate or other evidence of title or registration to such

9 tangible personal property.

10 No retailer's failure or refusal to remit tax under this

11 Act precludes a user, who has paid the proper tax to the

12 retailer, from obtaining his certificate of title or other

13 evidence of title or registration (if titling or registration

14 is required) upon satisfying the Department that such user has

15 paid the proper tax (if tax is due) to the retailer. The

16 Department shall adopt appropriate rules to carry out the

17 mandate of this paragraph.

18 If the user who would otherwise pay tax to the retailer

19 wants the transaction reporting return filed and the payment of

20 tax or proof of exemption made to the Department before the

21 retailer is willing to take these actions and such user has not

22 paid the tax to the retailer, such user may certify to the fact

23 of such delay by the retailer, and may (upon the Department

24 being satisfied of the truth of such certification) transmit

25 the information required by the transaction reporting return

26 and the remittance for tax or proof of exemption directly to

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1 the Department and obtain his tax receipt or exemption

2 determination, in which event the transaction reporting return

3 and tax remittance (if a tax payment was required) shall be

4 credited by the Department to the proper retailer's account

5 with the Department, but without the 2.1% or 1.75% discount

6 provided for in this Section being allowed. When the user pays

7 the tax directly to the Department, he shall pay the tax in the

8 same amount and in the same form in which it would be remitted

9 if the tax had been remitted to the Department by the retailer.

10 Where a retailer collects the tax with respect to the

11 selling price of tangible personal property which he sells and

12 the purchaser thereafter returns such tangible personal

13 property and the retailer refunds the selling price thereof to

14 the purchaser, such retailer shall also refund, to the

15 purchaser, the tax so collected from the purchaser. When filing

16 his return for the period in which he refunds such tax to the

17 purchaser, the retailer may deduct the amount of the tax so

18 refunded by him to the purchaser from any other use tax which

19 such retailer may be required to pay or remit to the

20 Department, as shown by such return, if the amount of the tax

21 to be deducted was previously remitted to the Department by

22 such retailer. If the retailer has not previously remitted the

23 amount of such tax to the Department, he is entitled to no

24 deduction under this Act upon refunding such tax to the

25 purchaser.

26 Any retailer filing a return under this Section shall also

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1 include (for the purpose of paying tax thereon) the total tax

2 covered by such return upon the selling price of tangible

3 personal property purchased by him at retail from a retailer,

4 but as to which the tax imposed by this Act was not collected

5 from the retailer filing such return, and such retailer shall

6 remit the amount of such tax to the Department when filing such

7 return.

8 If experience indicates such action to be practicable, the

9 Department may prescribe and furnish a combination or joint

10 return which will enable retailers, who are required to file

11 returns hereunder and also under the Retailers' Occupation Tax

12 Act, to furnish all the return information required by both

13 Acts on the one form.

14 Where the retailer has more than one business registered

15 with the Department under separate registration under this Act,

16 such retailer may not file each return that is due as a single

17 return covering all such registered businesses, but shall file

18 separate returns for each such registered business.

19 Beginning January 1, 1990, each month the Department shall

20 pay into the State and Local Sales Tax Reform Fund, a special

21 fund in the State Treasury which is hereby created, the net

22 revenue realized for the preceding month from the 1% tax

23 imposed under this Act.

24 Beginning January 1, 1990, each month the Department shall

25 pay into the County and Mass Transit District Fund 4% of the

26 net revenue realized for the preceding month from the 6.25%

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1 general rate on the selling price of tangible personal property

2 which is purchased outside Illinois at retail from a retailer

3 and which is titled or registered by an agency of this State's

4 government.

5 Beginning January 1, 1990, each month the Department shall

6 pay into the State and Local Sales Tax Reform Fund, a special

7 fund in the State Treasury, 20% of the net revenue realized for

8 the preceding month from the 6.25% general rate on the selling

9 price of tangible personal property, other than tangible

10 personal property which is purchased outside Illinois at retail

11 from a retailer and which is titled or registered by an agency

12 of this State's government.

13 Beginning August 1, 2000, each month the Department shall

14 pay into the State and Local Sales Tax Reform Fund 100% of the

15 net revenue realized for the preceding month from the 1.25%

16 rate on the selling price of motor fuel and gasohol. Beginning

17 September 1, 2010, each month the Department shall pay into the

18 State and Local Sales Tax Reform Fund 100% of the net revenue

19 realized for the preceding month from the 1.25% rate on the

20 selling price of sales tax holiday items.

21 Beginning January 1, 1990, each month the Department shall

22 pay into the Local Government Tax Fund 16% of the net revenue

23 realized for the preceding month from the 6.25% general rate on

24 the selling price of tangible personal property which is

25 purchased outside Illinois at retail from a retailer and which

26 is titled or registered by an agency of this State's

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1 government.

2 Beginning October 1, 2009, each month the Department shall

3 pay into the Capital Projects Fund an amount that is equal to

4 an amount estimated by the Department to represent 80% of the

5 net revenue realized for the preceding month from the sale of

6 candy, grooming and hygiene products, and soft drinks that had

7 been taxed at a rate of 1% prior to September 1, 2009 but that

8 are now taxed at 6.25%.

9 Beginning July 1, 2011, each month the Department shall pay

10 into the Clean Air Act Permit Fund 80% of the net revenue

11 realized for the preceding month from the 6.25% general rate on

12 the selling price of sorbents used in Illinois in the process

13 of sorbent injection as used to comply with the Environmental

14 Protection Act or the federal Clean Air Act, but the total

15 payment into the Clean Air Act Permit Fund under this Act and

16 the Retailers' Occupation Tax Act shall not exceed $2,000,000

17 in any fiscal year.

18 Beginning July 1, 2013, each month the Department shall pay

19 into the Underground Storage Tank Fund from the proceeds

20 collected under this Act, the Service Use Tax Act, the Service

21 Occupation Tax Act, and the Retailers' Occupation Tax Act an

22 amount equal to the average monthly deficit in the Underground

23 Storage Tank Fund during the prior year, as certified annually

24 by the Illinois Environmental Protection Agency, but the total

25 payment into the Underground Storage Tank Fund under this Act,

26 the Service Use Tax Act, the Service Occupation Tax Act, and

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1 the Retailers' Occupation Tax Act shall not exceed $18,000,000

2 in any State fiscal year. As used in this paragraph, the

3 "average monthly deficit" shall be equal to the difference

4 between the average monthly claims for payment by the fund and

5 the average monthly revenues deposited into the fund, excluding

6 payments made pursuant to this paragraph.

7 Beginning July 1, 2015, of the remainder of the moneys

8 received by the Department under this Act, the Service Use Tax

9 Act, the Service Occupation Tax Act, and the Retailers'

10 Occupation Tax Act, each month the Department shall deposit

11 $500,000 into the State Crime Laboratory Fund.

12 Of the remainder of the moneys received by the Department

13 pursuant to this Act, (a) 1.75% thereof shall be paid into the

14 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on

15 and after July 1, 1989, 3.8% thereof shall be paid into the

16 Build Illinois Fund; provided, however, that if in any fiscal

17 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case

18 may be, of the moneys received by the Department and required

19 to be paid into the Build Illinois Fund pursuant to Section 3

20 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax

21 Act, Section 9 of the Service Use Tax Act, and Section 9 of the

22 Service Occupation Tax Act, such Acts being hereinafter called

23 the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case

24 may be, of moneys being hereinafter called the "Tax Act

25 Amount", and (2) the amount transferred to the Build Illinois

26 Fund from the State and Local Sales Tax Reform Fund shall be

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1 less than the Annual Specified Amount (as defined in Section 3

2 of the Retailers' Occupation Tax Act), an amount equal to the

3 difference shall be immediately paid into the Build Illinois

4 Fund from other moneys received by the Department pursuant to

5 the Tax Acts; and further provided, that if on the last

6 business day of any month the sum of (1) the Tax Act Amount

7 required to be deposited into the Build Illinois Bond Account

8 in the Build Illinois Fund during such month and (2) the amount

9 transferred during such month to the Build Illinois Fund from

10 the State and Local Sales Tax Reform Fund shall have been less

11 than 1/12 of the Annual Specified Amount, an amount equal to

12 the difference shall be immediately paid into the Build

13 Illinois Fund from other moneys received by the Department

14 pursuant to the Tax Acts; and, further provided, that in no

15 event shall the payments required under the preceding proviso

16 result in aggregate payments into the Build Illinois Fund

17 pursuant to this clause (b) for any fiscal year in excess of

18 the greater of (i) the Tax Act Amount or (ii) the Annual

19 Specified Amount for such fiscal year; and, further provided,

20 that the amounts payable into the Build Illinois Fund under

21 this clause (b) shall be payable only until such time as the

22 aggregate amount on deposit under each trust indenture securing

23 Bonds issued and outstanding pursuant to the Build Illinois

24 Bond Act is sufficient, taking into account any future

25 investment income, to fully provide, in accordance with such

26 indenture, for the defeasance of or the payment of the

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1 principal of, premium, if any, and interest on the Bonds

2 secured by such indenture and on any Bonds expected to be

3 issued thereafter and all fees and costs payable with respect

4 thereto, all as certified by the Director of the Bureau of the

5 Budget (now Governor's Office of Management and Budget). If on

6 the last business day of any month in which Bonds are

7 outstanding pursuant to the Build Illinois Bond Act, the

8 aggregate of the moneys deposited in the Build Illinois Bond

9 Account in the Build Illinois Fund in such month shall be less

10 than the amount required to be transferred in such month from

11 the Build Illinois Bond Account to the Build Illinois Bond

12 Retirement and Interest Fund pursuant to Section 13 of the

13 Build Illinois Bond Act, an amount equal to such deficiency

14 shall be immediately paid from other moneys received by the

15 Department pursuant to the Tax Acts to the Build Illinois Fund;

16 provided, however, that any amounts paid to the Build Illinois

17 Fund in any fiscal year pursuant to this sentence shall be

18 deemed to constitute payments pursuant to clause (b) of the

19 preceding sentence and shall reduce the amount otherwise

20 payable for such fiscal year pursuant to clause (b) of the

21 preceding sentence. The moneys received by the Department

22 pursuant to this Act and required to be deposited into the

23 Build Illinois Fund are subject to the pledge, claim and charge

24 set forth in Section 12 of the Build Illinois Bond Act.

25 Subject to payment of amounts into the Build Illinois Fund

26 as provided in the preceding paragraph or in any amendment

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1 thereto hereafter enacted, the following specified monthly

2 installment of the amount requested in the certificate of the

3 Chairman of the Metropolitan Pier and Exposition Authority

4 provided under Section 8.25f of the State Finance Act, but not

5 in excess of the sums designated as "Total Deposit", shall be

6 deposited in the aggregate from collections under Section 9 of

7 the Use Tax Act, Section 9 of the Service Use Tax Act, Section

8 9 of the Service Occupation Tax Act, and Section 3 of the

9 Retailers' Occupation Tax Act into the McCormick Place

10 Expansion Project Fund in the specified fiscal years.

11	`Fiscal Year`	`Total Deposit`
12	`1993`	`$0`
13	`1994`	`53,000,000`
14	`1995`	`58,000,000`
15	`1996`	`61,000,000`
16	`1997`	`64,000,000`
17	`1998`	`68,000,000`
18	`1999`	`71,000,000`
19	`2000`	`75,000,000`
20	`2001`	`80,000,000`
21	`2002`	`93,000,000`
22	`2003`	`99,000,000`
23	`2004`	`103,000,000`
24	`2005`	`108,000,000`
25	`2006`	`113,000,000`
26	`2007`	`119,000,000`

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1	`2008`	`126,000,000`
2	`2009`	`132,000,000`
3	`2010`	`139,000,000`
4	`2011`	`146,000,000`
5	`2012`	`153,000,000`
6	`2013`	`161,000,000`
7	`2014`	`170,000,000`
8	`2015`	`179,000,000`
9	`2016`	`189,000,000`
10	`2017`	`199,000,000`
11	`2018`	`210,000,000`
12	`2019`	`221,000,000`
13	`2020`	`233,000,000`
14	`2021`	`246,000,000`
15	`2022`	`260,000,000`
16	`2023`	`275,000,000`
17	`2024`	`275,000,000`
18	`2025`	`275,000,000`
19	`2026`	`279,000,000`
20	`2027`	`292,000,000`
21	`2028`	`307,000,000`
22	`2029`	`322,000,000`
23	`2030`	`338,000,000`
24	`2031`	`350,000,000`
25	`2032`	`350,000,000`
26	`and`

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1		`each fiscal year`
2		`thereafter that bonds`
3		`are outstanding under`
4		`Section 13.2 of the`
5		`Metropolitan Pier and`
6		`Exposition Authority Act,`
7		`but not after fiscal year 2060.`

8 Beginning July 20, 1993 and in each month of each fiscal

9 year thereafter, one-eighth of the amount requested in the

10 certificate of the Chairman of the Metropolitan Pier and

11 Exposition Authority for that fiscal year, less the amount

12 deposited into the McCormick Place Expansion Project Fund by

13 the State Treasurer in the respective month under subsection

14 (g) of Section 13 of the Metropolitan Pier and Exposition

15 Authority Act, plus cumulative deficiencies in the deposits

16 required under this Section for previous months and years,

17 shall be deposited into the McCormick Place Expansion Project

18 Fund, until the full amount requested for the fiscal year, but

19 not in excess of the amount specified above as "Total Deposit",

20 has been deposited.

21 Subject to payment of amounts into the Build Illinois Fund

22 and the McCormick Place Expansion Project Fund pursuant to the

23 preceding paragraphs or in any amendments thereto hereafter

24 enacted, beginning July 1, 1993 and ending on September 30,

25 2013, the Department shall each month pay into the Illinois Tax

26 Increment Fund 0.27% of 80% of the net revenue realized for the

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1 preceding month from the 6.25% general rate on the selling

2 price of tangible personal property.

3 Subject to payment of amounts into the Build Illinois Fund

4 and the McCormick Place Expansion Project Fund pursuant to the

5 preceding paragraphs or in any amendments thereto hereafter

6 enacted, beginning with the receipt of the first report of

7 taxes paid by an eligible business and continuing for a 25-year

8 period, the Department shall each month pay into the Energy

9 Infrastructure Fund 80% of the net revenue realized from the

10 6.25% general rate on the selling price of Illinois-mined coal

11 that was sold to an eligible business. For purposes of this

12 paragraph, the term "eligible business" means a new electric

13 generating facility certified pursuant to Section 605-332 of

14 the Department of Commerce and Economic Opportunity Law of the

15 Civil Administrative Code of Illinois.

16 Subject to payment of amounts into the Build Illinois Fund,

17 the McCormick Place Expansion Project Fund, the Illinois Tax

18 Increment Fund, and the Energy Infrastructure Fund pursuant to

19 the preceding paragraphs or in any amendments to this Section

20 hereafter enacted, beginning on the first day of the first

21 calendar month to occur on or after August 26, 2014 (the

22 effective date of Public Act 98-1098), each month, from the

23 collections made under Section 9 of the Use Tax Act, Section 9

24 of the Service Use Tax Act, Section 9 of the Service Occupation

25 Tax Act, and Section 3 of the Retailers' Occupation Tax Act,

26 the Department shall pay into the Tax Compliance and

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1 Administration Fund, to be used, subject to appropriation, to

2 fund additional auditors and compliance personnel at the

3 Department of Revenue, an amount equal to 1/12 of 5% of 80% of

4 the cash receipts collected during the preceding fiscal year by

5 the Audit Bureau of the Department under the Use Tax Act, the

6 Service Use Tax Act, the Service Occupation Tax Act, the

7 Retailers' Occupation Tax Act, and associated local occupation

8 and use taxes administered by the Department.

9 Subject to payments of amounts into the Build Illinois

10 Fund, the McCormick Place Expansion Project Fund, the Illinois

11 Tax Increment Fund, the Energy Infrastructure Fund, and the Tax

12 Compliance and Administration Fund as provided in this Section,

13 beginning on July 1, 2018 the Department shall pay each month

14 into the Downstate Public Transportation Fund the moneys

15 required to be so paid under Section 2-3 of the Downstate

16 Public Transportation Act.

17 Of the remainder of the moneys received by the Department

18 pursuant to this Act, 75% thereof shall be paid into the State

19 Treasury and 25% shall be reserved in a special account and

20 used only for the transfer to the Common School Fund as part of

21 the monthly transfer from the General Revenue Fund in

22 accordance with Section 8a of the State Finance Act.

23 As soon as possible after the first day of each month, upon

24 certification of the Department of Revenue, the Comptroller

25 shall order transferred and the Treasurer shall transfer from

26 the General Revenue Fund to the Motor Fuel Tax Fund an amount

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1 equal to 1.7% of 80% of the net revenue realized under this Act

2 for the second preceding month. Beginning April 1, 2000, this

3 transfer is no longer required and shall not be made.

4 Net revenue realized for a month shall be the revenue

5 collected by the State pursuant to this Act, less the amount

6 paid out during that month as refunds to taxpayers for

7 overpayment of liability.

8 For greater simplicity of administration, manufacturers,

9 importers and wholesalers whose products are sold at retail in

10 Illinois by numerous retailers, and who wish to do so, may

11 assume the responsibility for accounting and paying to the

12 Department all tax accruing under this Act with respect to such

13 sales, if the retailers who are affected do not make written

14 objection to the Department to this arrangement.

15 (Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;

16 99-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff.

17 7-1-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19.)

18 Section 900-17. The Service Use Tax Act is amended by

19 changing Section 9 as follows:

20 (35 ILCS 110/9) (from Ch. 120, par. 439.39)

21 Sec. 9. Each serviceman required or authorized to collect

22 the tax herein imposed shall pay to the Department the amount

23 of such tax (except as otherwise provided) at the time when he

24 is required to file his return for the period during which such

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1 tax was collected, less a discount of 2.1% prior to January 1,

2 1990 and 1.75% on and after January 1, 1990, or $5 per calendar

3 year, whichever is greater, which is allowed to reimburse the

4 serviceman for expenses incurred in collecting the tax, keeping

5 records, preparing and filing returns, remitting the tax and

6 supplying data to the Department on request. The discount

7 allowed under this Section is allowed only for returns that are

8 filed in the manner required by this Act. The Department may

9 disallow the discount for servicemen whose certificate of

10 registration is revoked at the time the return is filed, but

11 only if the Department's decision to revoke the certificate of

12 registration has become final. A serviceman need not remit that

13 part of any tax collected by him to the extent that he is

14 required to pay and does pay the tax imposed by the Service

15 Occupation Tax Act with respect to his sale of service

16 involving the incidental transfer by him of the same property.

17 Except as provided hereinafter in this Section, on or

18 before the twentieth day of each calendar month, such

19 serviceman shall file a return for the preceding calendar month

20 in accordance with reasonable Rules and Regulations to be

21 promulgated by the Department. Such return shall be filed on a

22 form prescribed by the Department and shall contain such

23 information as the Department may reasonably require. On and

24 after January 1, 2018, with respect to servicemen whose annual

25 gross receipts average $20,000 or more, all returns required to

26 be filed pursuant to this Act shall be filed electronically.

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1 Servicemen who demonstrate that they do not have access to the

2 Internet or demonstrate hardship in filing electronically may

3 petition the Department to waive the electronic filing

4 requirement.

5 The Department may require returns to be filed on a

6 quarterly basis. If so required, a return for each calendar

7 quarter shall be filed on or before the twentieth day of the

8 calendar month following the end of such calendar quarter. The

9 taxpayer shall also file a return with the Department for each

10 of the first two months of each calendar quarter, on or before

11 the twentieth day of the following calendar month, stating:

12 1. The name of the seller;

13 2. The address of the principal place of business from

14 which he engages in business as a serviceman in this State;

15 3. The total amount of taxable receipts received by him

16 during the preceding calendar month, including receipts

17 from charge and time sales, but less all deductions allowed

18 by law;

19 4. The amount of credit provided in Section 2d of this

20 Act;

21 5. The amount of tax due;

22 5-5. The signature of the taxpayer; and

23 6. Such other reasonable information as the Department

24 may require.

25 If a taxpayer fails to sign a return within 30 days after

26 the proper notice and demand for signature by the Department,

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1 the return shall be considered valid and any amount shown to be

2 due on the return shall be deemed assessed.

3 Notwithstanding any other provision of this Act to the

4 contrary, servicemen subject to tax on cannabis shall file all

5 cannabis tax returns and shall make all cannabis tax payments

6 by electronic means in the manner and form required by the

7 Department.

8 Beginning October 1, 1993, a taxpayer who has an average

9 monthly tax liability of $150,000 or more shall make all

10 payments required by rules of the Department by electronic

11 funds transfer. Beginning October 1, 1994, a taxpayer who has

12 an average monthly tax liability of $100,000 or more shall make

13 all payments required by rules of the Department by electronic

14 funds transfer. Beginning October 1, 1995, a taxpayer who has

15 an average monthly tax liability of $50,000 or more shall make

16 all payments required by rules of the Department by electronic

17 funds transfer. Beginning October 1, 2000, a taxpayer who has

18 an annual tax liability of $200,000 or more shall make all

19 payments required by rules of the Department by electronic

20 funds transfer. The term "annual tax liability" shall be the

21 sum of the taxpayer's liabilities under this Act, and under all

22 other State and local occupation and use tax laws administered

23 by the Department, for the immediately preceding calendar year.

24 The term "average monthly tax liability" means the sum of the

25 taxpayer's liabilities under this Act, and under all other

26 State and local occupation and use tax laws administered by the

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1 Department, for the immediately preceding calendar year

2 divided by 12. Beginning on October 1, 2002, a taxpayer who has

3 a tax liability in the amount set forth in subsection (b) of

4 Section 2505-210 of the Department of Revenue Law shall make

5 all payments required by rules of the Department by electronic

6 funds transfer.

7 Before August 1 of each year beginning in 1993, the

8 Department shall notify all taxpayers required to make payments

9 by electronic funds transfer. All taxpayers required to make

10 payments by electronic funds transfer shall make those payments

11 for a minimum of one year beginning on October 1.

12 Any taxpayer not required to make payments by electronic

13 funds transfer may make payments by electronic funds transfer

14 with the permission of the Department.

15 All taxpayers required to make payment by electronic funds

16 transfer and any taxpayers authorized to voluntarily make

17 payments by electronic funds transfer shall make those payments

18 in the manner authorized by the Department.

19 The Department shall adopt such rules as are necessary to

20 effectuate a program of electronic funds transfer and the

21 requirements of this Section.

22 If the serviceman is otherwise required to file a monthly

23 return and if the serviceman's average monthly tax liability to

24 the Department does not exceed $200, the Department may

25 authorize his returns to be filed on a quarter annual basis,

26 with the return for January, February and March of a given year

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1 being due by April 20 of such year; with the return for April,

2 May and June of a given year being due by July 20 of such year;

3 with the return for July, August and September of a given year

4 being due by October 20 of such year, and with the return for

5 October, November and December of a given year being due by

6 January 20 of the following year.

7 If the serviceman is otherwise required to file a monthly

8 or quarterly return and if the serviceman's average monthly tax

9 liability to the Department does not exceed $50, the Department

10 may authorize his returns to be filed on an annual basis, with

11 the return for a given year being due by January 20 of the

12 following year.

13 Such quarter annual and annual returns, as to form and

14 substance, shall be subject to the same requirements as monthly

15 returns.

16 Notwithstanding any other provision in this Act concerning

17 the time within which a serviceman may file his return, in the

18 case of any serviceman who ceases to engage in a kind of

19 business which makes him responsible for filing returns under

20 this Act, such serviceman shall file a final return under this

21 Act with the Department not more than 1 month after

22 discontinuing such business.

23 Where a serviceman collects the tax with respect to the

24 selling price of property which he sells and the purchaser

25 thereafter returns such property and the serviceman refunds the

26 selling price thereof to the purchaser, such serviceman shall

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1 also refund, to the purchaser, the tax so collected from the

2 purchaser. When filing his return for the period in which he

3 refunds such tax to the purchaser, the serviceman may deduct

4 the amount of the tax so refunded by him to the purchaser from

5 any other Service Use Tax, Service Occupation Tax, retailers'

6 occupation tax or use tax which such serviceman may be required

7 to pay or remit to the Department, as shown by such return,

8 provided that the amount of the tax to be deducted shall

9 previously have been remitted to the Department by such

10 serviceman. If the serviceman shall not previously have

11 remitted the amount of such tax to the Department, he shall be

12 entitled to no deduction hereunder upon refunding such tax to

13 the purchaser.

14 Any serviceman filing a return hereunder shall also include

15 the total tax upon the selling price of tangible personal

16 property purchased for use by him as an incident to a sale of

17 service, and such serviceman shall remit the amount of such tax

18 to the Department when filing such return.

19 If experience indicates such action to be practicable, the

20 Department may prescribe and furnish a combination or joint

21 return which will enable servicemen, who are required to file

22 returns hereunder and also under the Service Occupation Tax

23 Act, to furnish all the return information required by both

24 Acts on the one form.

25 Where the serviceman has more than one business registered

26 with the Department under separate registration hereunder,

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1 such serviceman shall not file each return that is due as a

2 single return covering all such registered businesses, but

3 shall file separate returns for each such registered business.

4 Beginning January 1, 1990, each month the Department shall

5 pay into the State and Local Tax Reform Fund, a special fund in

6 the State Treasury, the net revenue realized for the preceding

7 month from the 1% tax imposed under this Act.

8 Beginning January 1, 1990, each month the Department shall

9 pay into the State and Local Sales Tax Reform Fund 20% of the

10 net revenue realized for the preceding month from the 6.25%

11 general rate on transfers of tangible personal property, other

12 than tangible personal property which is purchased outside

13 Illinois at retail from a retailer and which is titled or

14 registered by an agency of this State's government.

15 Beginning August 1, 2000, each month the Department shall

16 pay into the State and Local Sales Tax Reform Fund 100% of the

17 net revenue realized for the preceding month from the 1.25%

18 rate on the selling price of motor fuel and gasohol.

19 Beginning October 1, 2009, each month the Department shall

20 pay into the Capital Projects Fund an amount that is equal to

21 an amount estimated by the Department to represent 80% of the

22 net revenue realized for the preceding month from the sale of

23 candy, grooming and hygiene products, and soft drinks that had

24 been taxed at a rate of 1% prior to September 1, 2009 but that

25 are now taxed at 6.25%.

26 Beginning July 1, 2013, each month the Department shall pay

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1 into the Underground Storage Tank Fund from the proceeds

2 collected under this Act, the Use Tax Act, the Service

3 Occupation Tax Act, and the Retailers' Occupation Tax Act an

4 amount equal to the average monthly deficit in the Underground

5 Storage Tank Fund during the prior year, as certified annually

6 by the Illinois Environmental Protection Agency, but the total

7 payment into the Underground Storage Tank Fund under this Act,

8 the Use Tax Act, the Service Occupation Tax Act, and the

9 Retailers' Occupation Tax Act shall not exceed $18,000,000 in

10 any State fiscal year. As used in this paragraph, the "average

11 monthly deficit" shall be equal to the difference between the

12 average monthly claims for payment by the fund and the average

13 monthly revenues deposited into the fund, excluding payments

14 made pursuant to this paragraph.

15 Beginning July 1, 2015, of the remainder of the moneys

16 received by the Department under the Use Tax Act, this Act, the

17 Service Occupation Tax Act, and the Retailers' Occupation Tax

18 Act, each month the Department shall deposit $500,000 into the

19 State Crime Laboratory Fund.

20 Of the remainder of the moneys received by the Department

21 pursuant to this Act, (a) 1.75% thereof shall be paid into the

22 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on

23 and after July 1, 1989, 3.8% thereof shall be paid into the

24 Build Illinois Fund; provided, however, that if in any fiscal

25 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case

26 may be, of the moneys received by the Department and required

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1 to be paid into the Build Illinois Fund pursuant to Section 3

2 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax

3 Act, Section 9 of the Service Use Tax Act, and Section 9 of the

4 Service Occupation Tax Act, such Acts being hereinafter called

5 the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case

6 may be, of moneys being hereinafter called the "Tax Act

7 Amount", and (2) the amount transferred to the Build Illinois

8 Fund from the State and Local Sales Tax Reform Fund shall be

9 less than the Annual Specified Amount (as defined in Section 3

10 of the Retailers' Occupation Tax Act), an amount equal to the

11 difference shall be immediately paid into the Build Illinois

12 Fund from other moneys received by the Department pursuant to

13 the Tax Acts; and further provided, that if on the last

14 business day of any month the sum of (1) the Tax Act Amount

15 required to be deposited into the Build Illinois Bond Account

16 in the Build Illinois Fund during such month and (2) the amount

17 transferred during such month to the Build Illinois Fund from

18 the State and Local Sales Tax Reform Fund shall have been less

19 than 1/12 of the Annual Specified Amount, an amount equal to

20 the difference shall be immediately paid into the Build

21 Illinois Fund from other moneys received by the Department

22 pursuant to the Tax Acts; and, further provided, that in no

23 event shall the payments required under the preceding proviso

24 result in aggregate payments into the Build Illinois Fund

25 pursuant to this clause (b) for any fiscal year in excess of

26 the greater of (i) the Tax Act Amount or (ii) the Annual

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1 Specified Amount for such fiscal year; and, further provided,

2 that the amounts payable into the Build Illinois Fund under

3 this clause (b) shall be payable only until such time as the

4 aggregate amount on deposit under each trust indenture securing

5 Bonds issued and outstanding pursuant to the Build Illinois

6 Bond Act is sufficient, taking into account any future

7 investment income, to fully provide, in accordance with such

8 indenture, for the defeasance of or the payment of the

9 principal of, premium, if any, and interest on the Bonds

10 secured by such indenture and on any Bonds expected to be

11 issued thereafter and all fees and costs payable with respect

12 thereto, all as certified by the Director of the Bureau of the

13 Budget (now Governor's Office of Management and Budget). If on

14 the last business day of any month in which Bonds are

15 outstanding pursuant to the Build Illinois Bond Act, the

16 aggregate of the moneys deposited in the Build Illinois Bond

17 Account in the Build Illinois Fund in such month shall be less

18 than the amount required to be transferred in such month from

19 the Build Illinois Bond Account to the Build Illinois Bond

20 Retirement and Interest Fund pursuant to Section 13 of the

21 Build Illinois Bond Act, an amount equal to such deficiency

22 shall be immediately paid from other moneys received by the

23 Department pursuant to the Tax Acts to the Build Illinois Fund;

24 provided, however, that any amounts paid to the Build Illinois

25 Fund in any fiscal year pursuant to this sentence shall be

26 deemed to constitute payments pursuant to clause (b) of the

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1 preceding sentence and shall reduce the amount otherwise

2 payable for such fiscal year pursuant to clause (b) of the

3 preceding sentence. The moneys received by the Department

4 pursuant to this Act and required to be deposited into the

5 Build Illinois Fund are subject to the pledge, claim and charge

6 set forth in Section 12 of the Build Illinois Bond Act.

7 Subject to payment of amounts into the Build Illinois Fund

8 as provided in the preceding paragraph or in any amendment

9 thereto hereafter enacted, the following specified monthly

10 installment of the amount requested in the certificate of the

11 Chairman of the Metropolitan Pier and Exposition Authority

12 provided under Section 8.25f of the State Finance Act, but not

13 in excess of the sums designated as "Total Deposit", shall be

14 deposited in the aggregate from collections under Section 9 of

15 the Use Tax Act, Section 9 of the Service Use Tax Act, Section

16 9 of the Service Occupation Tax Act, and Section 3 of the

17 Retailers' Occupation Tax Act into the McCormick Place

18 Expansion Project Fund in the specified fiscal years.

19	`Fiscal Year`	`Total Deposit`
20	`1993`	`$0`
21	`1994`	`53,000,000`
22	`1995`	`58,000,000`
23	`1996`	`61,000,000`
24	`1997`	`64,000,000`
25	`1998`	`68,000,000`

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1	`1999`	`71,000,000`
2	`2000`	`75,000,000`
3	`2001`	`80,000,000`
4	`2002`	`93,000,000`
5	`2003`	`99,000,000`
6	`2004`	`103,000,000`
7	`2005`	`108,000,000`
8	`2006`	`113,000,000`
9	`2007`	`119,000,000`
10	`2008`	`126,000,000`
11	`2009`	`132,000,000`
12	`2010`	`139,000,000`
13	`2011`	`146,000,000`
14	`2012`	`153,000,000`
15	`2013`	`161,000,000`
16	`2014`	`170,000,000`
17	`2015`	`179,000,000`
18	`2016`	`189,000,000`
19	`2017`	`199,000,000`
20	`2018`	`210,000,000`
21	`2019`	`221,000,000`
22	`2020`	`233,000,000`
23	`2021`	`246,000,000`
24	`2022`	`260,000,000`
25	`2023`	`275,000,000`
26	`2024`	`275,000,000`

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1	`2025`	`275,000,000`
2	`2026`	`279,000,000`
3	`2027`	`292,000,000`
4	`2028`	`307,000,000`
5	`2029`	`322,000,000`
6	`2030`	`338,000,000`
7	`2031`	`350,000,000`
8	`2032`	`350,000,000`
9	`and`
10	`each fiscal year`
11	`thereafter that bonds`
12	`are outstanding under`
13	`Section 13.2 of the`
14	`Metropolitan Pier and`
15	`Exposition Authority Act,`
16	`but not after fiscal year 2060.`

17 Beginning July 20, 1993 and in each month of each fiscal

18 year thereafter, one-eighth of the amount requested in the

19 certificate of the Chairman of the Metropolitan Pier and

20 Exposition Authority for that fiscal year, less the amount

21 deposited into the McCormick Place Expansion Project Fund by

22 the State Treasurer in the respective month under subsection

23 (g) of Section 13 of the Metropolitan Pier and Exposition

24 Authority Act, plus cumulative deficiencies in the deposits

25 required under this Section for previous months and years,

26 shall be deposited into the McCormick Place Expansion Project

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1 Fund, until the full amount requested for the fiscal year, but

2 not in excess of the amount specified above as "Total Deposit",

3 has been deposited.

4 Subject to payment of amounts into the Build Illinois Fund

5 and the McCormick Place Expansion Project Fund pursuant to the

6 preceding paragraphs or in any amendments thereto hereafter

7 enacted, beginning July 1, 1993 and ending on September 30,

8 2013, the Department shall each month pay into the Illinois Tax

9 Increment Fund 0.27% of 80% of the net revenue realized for the

10 preceding month from the 6.25% general rate on the selling

11 price of tangible personal property.

12 Subject to payment of amounts into the Build Illinois Fund

13 and the McCormick Place Expansion Project Fund pursuant to the

14 preceding paragraphs or in any amendments thereto hereafter

15 enacted, beginning with the receipt of the first report of

16 taxes paid by an eligible business and continuing for a 25-year

17 period, the Department shall each month pay into the Energy

18 Infrastructure Fund 80% of the net revenue realized from the

19 6.25% general rate on the selling price of Illinois-mined coal

20 that was sold to an eligible business. For purposes of this

21 paragraph, the term "eligible business" means a new electric

22 generating facility certified pursuant to Section 605-332 of

23 the Department of Commerce and Economic Opportunity Law of the

24 Civil Administrative Code of Illinois.

25 Subject to payment of amounts into the Build Illinois Fund,

26 the McCormick Place Expansion Project Fund, the Illinois Tax

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1 Increment Fund, and the Energy Infrastructure Fund pursuant to

2 the preceding paragraphs or in any amendments to this Section

3 hereafter enacted, beginning on the first day of the first

4 calendar month to occur on or after August 26, 2014 (the

5 effective date of Public Act 98-1098), each month, from the

6 collections made under Section 9 of the Use Tax Act, Section 9

7 of the Service Use Tax Act, Section 9 of the Service Occupation

8 Tax Act, and Section 3 of the Retailers' Occupation Tax Act,

9 the Department shall pay into the Tax Compliance and

10 Administration Fund, to be used, subject to appropriation, to

11 fund additional auditors and compliance personnel at the

12 Department of Revenue, an amount equal to 1/12 of 5% of 80% of

13 the cash receipts collected during the preceding fiscal year by

14 the Audit Bureau of the Department under the Use Tax Act, the

15 Service Use Tax Act, the Service Occupation Tax Act, the

16 Retailers' Occupation Tax Act, and associated local occupation

17 and use taxes administered by the Department.

18 Subject to payments of amounts into the Build Illinois

19 Fund, the McCormick Place Expansion Project Fund, the Illinois

20 Tax Increment Fund, the Energy Infrastructure Fund, and the Tax

21 Compliance and Administration Fund as provided in this Section,

22 beginning on July 1, 2018 the Department shall pay each month

23 into the Downstate Public Transportation Fund the moneys

24 required to be so paid under Section 2-3 of the Downstate

25 Public Transportation Act.

26 Of the remainder of the moneys received by the Department

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1 pursuant to this Act, 75% thereof shall be paid into the

2 General Revenue Fund of the State Treasury and 25% shall be

3 reserved in a special account and used only for the transfer to

4 the Common School Fund as part of the monthly transfer from the

5 General Revenue Fund in accordance with Section 8a of the State

6 Finance Act.

7 As soon as possible after the first day of each month, upon

8 certification of the Department of Revenue, the Comptroller

9 shall order transferred and the Treasurer shall transfer from

10 the General Revenue Fund to the Motor Fuel Tax Fund an amount

11 equal to 1.7% of 80% of the net revenue realized under this Act

12 for the second preceding month. Beginning April 1, 2000, this

13 transfer is no longer required and shall not be made.

14 Net revenue realized for a month shall be the revenue

15 collected by the State pursuant to this Act, less the amount

16 paid out during that month as refunds to taxpayers for

17 overpayment of liability.

18 (Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;

19 100-303, eff. 8-24-17; 100-363, eff. 7-1-18; 100-863, eff.

20 8-14-18; 100-1171, eff. 1-4-19.)

21 Section 900-18. The Service Occupation Tax Act is amended

22 by changing Section 9 as follows:

23 (35 ILCS 115/9) (from Ch. 120, par. 439.109)

24 Sec. 9. Each serviceman required or authorized to collect

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1 the tax herein imposed shall pay to the Department the amount

2 of such tax at the time when he is required to file his return

3 for the period during which such tax was collectible, less a

4 discount of 2.1% prior to January 1, 1990, and 1.75% on and

5 after January 1, 1990, or $5 per calendar year, whichever is

6 greater, which is allowed to reimburse the serviceman for

7 expenses incurred in collecting the tax, keeping records,

8 preparing and filing returns, remitting the tax and supplying

9 data to the Department on request. The discount allowed under

10 this Section is allowed only for returns that are filed in the

11 manner required by this Act. The Department may disallow the

12 discount for servicemen whose certificate of registration is

13 revoked at the time the return is filed, but only if the

14 Department's decision to revoke the certificate of

15 registration has become final.

16 Where such tangible personal property is sold under a

17 conditional sales contract, or under any other form of sale

18 wherein the payment of the principal sum, or a part thereof, is

19 extended beyond the close of the period for which the return is

20 filed, the serviceman, in collecting the tax may collect, for

21 each tax return period, only the tax applicable to the part of

22 the selling price actually received during such tax return

23 period.

24 Except as provided hereinafter in this Section, on or

25 before the twentieth day of each calendar month, such

26 serviceman shall file a return for the preceding calendar month

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1 in accordance with reasonable rules and regulations to be

2 promulgated by the Department of Revenue. Such return shall be

3 filed on a form prescribed by the Department and shall contain

4 such information as the Department may reasonably require. On

5 and after January 1, 2018, with respect to servicemen whose

6 annual gross receipts average $20,000 or more, all returns

7 required to be filed pursuant to this Act shall be filed

8 electronically. Servicemen who demonstrate that they do not

9 have access to the Internet or demonstrate hardship in filing

10 electronically may petition the Department to waive the

11 electronic filing requirement.

12 The Department may require returns to be filed on a

13 quarterly basis. If so required, a return for each calendar

14 quarter shall be filed on or before the twentieth day of the

15 calendar month following the end of such calendar quarter. The

16 taxpayer shall also file a return with the Department for each

17 of the first two months of each calendar quarter, on or before

18 the twentieth day of the following calendar month, stating:

19 1. The name of the seller;

20 2. The address of the principal place of business from

21 which he engages in business as a serviceman in this State;

22 3. The total amount of taxable receipts received by him

23 during the preceding calendar month, including receipts

24 from charge and time sales, but less all deductions allowed

25 by law;

26 4. The amount of credit provided in Section 2d of this

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1 Act;

2 5. The amount of tax due;

3 5-5. The signature of the taxpayer; and

4 6. Such other reasonable information as the Department

5 may require.

6 If a taxpayer fails to sign a return within 30 days after

7 the proper notice and demand for signature by the Department,

8 the return shall be considered valid and any amount shown to be

9 due on the return shall be deemed assessed.

10 Notwithstanding any other provision of this Act to the

11 contrary, servicemen subject to tax on cannabis shall file all

12 cannabis tax returns and shall make all cannabis tax payments

13 by electronic means in the manner and form required by the

14 Department.

15 Prior to October 1, 2003, and on and after September 1,

16 2004 a serviceman may accept a Manufacturer's Purchase Credit

17 certification from a purchaser in satisfaction of Service Use

18 Tax as provided in Section 3-70 of the Service Use Tax Act if

19 the purchaser provides the appropriate documentation as

20 required by Section 3-70 of the Service Use Tax Act. A

21 Manufacturer's Purchase Credit certification, accepted prior

22 to October 1, 2003 or on or after September 1, 2004 by a

23 serviceman as provided in Section 3-70 of the Service Use Tax

24 Act, may be used by that serviceman to satisfy Service

25 Occupation Tax liability in the amount claimed in the

26 certification, not to exceed 6.25% of the receipts subject to

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1 tax from a qualifying purchase. A Manufacturer's Purchase

2 Credit reported on any original or amended return filed under

3 this Act after October 20, 2003 for reporting periods prior to

4 September 1, 2004 shall be disallowed. Manufacturer's Purchase

5 Credit reported on annual returns due on or after January 1,

6 2005 will be disallowed for periods prior to September 1, 2004.

7 No Manufacturer's Purchase Credit may be used after September

8 30, 2003 through August 31, 2004 to satisfy any tax liability

9 imposed under this Act, including any audit liability.

10 If the serviceman's average monthly tax liability to the

11 Department does not exceed $200, the Department may authorize

12 his returns to be filed on a quarter annual basis, with the

13 return for January, February and March of a given year being

14 due by April 20 of such year; with the return for April, May

15 and June of a given year being due by July 20 of such year; with

16 the return for July, August and September of a given year being

17 due by October 20 of such year, and with the return for

18 October, November and December of a given year being due by

19 January 20 of the following year.

20 If the serviceman's average monthly tax liability to the

21 Department does not exceed $50, the Department may authorize

22 his returns to be filed on an annual basis, with the return for

23 a given year being due by January 20 of the following year.

24 Such quarter annual and annual returns, as to form and

25 substance, shall be subject to the same requirements as monthly

26 returns.

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1 Notwithstanding any other provision in this Act concerning

2 the time within which a serviceman may file his return, in the

3 case of any serviceman who ceases to engage in a kind of

4 business which makes him responsible for filing returns under

5 this Act, such serviceman shall file a final return under this

6 Act with the Department not more than 1 month after

7 discontinuing such business.