101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5527

 

Introduced , by Rep. Arthur Turner

 

SYNOPSIS AS INTRODUCED:
 
410 ILCS 705/1-10
410 ILCS 705/20-30

    Amends the Cannabis Regulation and Tax Act. Provides that a cultivation center may sell or distribute cannabis or cannabis-infused products to an independent dispensing organization. Provides that at least half of all cannabis and cannabis-infused products sold by a cultivation center must be sold to independent dispensing organizations. Defines "independent dispensing organization".


LRB101 17605 CPF 67026 b

 

 

A BILL FOR

 

HB5527LRB101 17605 CPF 67026 b

1    AN ACT concerning health.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Cannabis Regulation and Tax Act is amended
5by changing Sections 1-10 and 20-30 as follows:
 
6    (410 ILCS 705/1-10)
7    Sec. 1-10. Definitions. In this Act:
8    "Adult Use Cultivation Center License" means a license
9issued by the Department of Agriculture that permits a person
10to act as a cultivation center under this Act and any
11administrative rule made in furtherance of this Act.
12    "Adult Use Dispensing Organization License" means a
13license issued by the Department of Financial and Professional
14Regulation that permits a person to act as a dispensing
15organization under this Act and any administrative rule made in
16furtherance of this Act.
17    "Advertise" means to engage in promotional activities
18including, but not limited to: newspaper, radio, Internet and
19electronic media, and television advertising; the distribution
20of fliers and circulars; billboard advertising; and the display
21of window and interior signs. "Advertise" does not mean
22exterior signage displaying only the name of the licensed
23cannabis business establishment.

 

 

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1    "BLS Region" means a region in Illinois used by the United
2States Bureau of Labor Statistics to gather and categorize
3certain employment and wage data. The 17 such regions in
4Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
5Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
6Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
7Rockford, St. Louis, Springfield, Northwest Illinois
8nonmetropolitan area, West Central Illinois nonmetropolitan
9area, East Central Illinois nonmetropolitan area, and South
10Illinois nonmetropolitan area.
11    "Cannabis" means marijuana, hashish, and other substances
12that are identified as including any parts of the plant
13Cannabis sativa and including derivatives or subspecies, such
14as indica, of all strains of cannabis, whether growing or not;
15the seeds thereof, the resin extracted from any part of the
16plant; and any compound, manufacture, salt, derivative,
17mixture, or preparation of the plant, its seeds, or resin,
18including tetrahydrocannabinol (THC) and all other naturally
19produced cannabinol derivatives, whether produced directly or
20indirectly by extraction; however, "cannabis" does not include
21the mature stalks of the plant, fiber produced from the stalks,
22oil or cake made from the seeds of the plant, any other
23compound, manufacture, salt, derivative, mixture, or
24preparation of the mature stalks (except the resin extracted
25from it), fiber, oil or cake, or the sterilized seed of the
26plant that is incapable of germination. "Cannabis" does not

 

 

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1include industrial hemp as defined and authorized under the
2Industrial Hemp Act. "Cannabis" also means cannabis flower,
3concentrate, and cannabis-infused products.
4    "Cannabis business establishment" means a cultivation
5center, craft grower, processing organization, infuser
6organization, dispensing organization, or transporting
7organization.
8    "Cannabis concentrate" means a product derived from
9cannabis that is produced by extracting cannabinoids,
10including tetrahydrocannabinol (THC), from the plant through
11the use of propylene glycol, glycerin, butter, olive oil or
12other typical cooking fats; water, ice, or dry ice; or butane,
13propane, CO2, ethanol, or isopropanol and with the intended use
14of smoking or making a cannabis-infused product. The use of any
15other solvent is expressly prohibited unless and until it is
16approved by the Department of Agriculture.
17    "Cannabis container" means a sealed, traceable, container,
18or package used for the purpose of containment of cannabis or
19cannabis-infused product during transportation.
20    "Cannabis flower" means marijuana, hashish, and other
21substances that are identified as including any parts of the
22plant Cannabis sativa and including derivatives or subspecies,
23such as indica, of all strains of cannabis; including raw kief,
24leaves, and buds, but not resin that has been extracted from
25any part of such plant; nor any compound, manufacture, salt,
26derivative, mixture, or preparation of such plant, its seeds,

 

 

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1or resin.
2    "Cannabis-infused product" means a beverage, food, oil,
3ointment, tincture, topical formulation, or another product
4containing cannabis or cannabis concentrate that is not
5intended to be smoked.
6    "Cannabis paraphernalia" means equipment, products, or
7materials intended to be used for planting, propagating,
8cultivating, growing, harvesting, manufacturing, producing,
9processing, preparing, testing, analyzing, packaging,
10repackaging, storing, containing, concealing, ingesting, or
11otherwise introducing cannabis into the human body.
12    "Cannabis plant monitoring system" or "plant monitoring
13system" means a system that includes, but is not limited to,
14testing and data collection established and maintained by the
15cultivation center, craft grower, or processing organization
16and that is available to the Department of Revenue, the
17Department of Agriculture, the Department of Financial and
18Professional Regulation, and the Department of State Police for
19the purposes of documenting each cannabis plant and monitoring
20plant development throughout the life cycle of a cannabis plant
21cultivated for the intended use by a customer from seed
22planting to final packaging.
23    "Cannabis testing facility" means an entity registered by
24the Department of Agriculture to test cannabis for potency and
25contaminants.
26    "Clone" means a plant section from a female cannabis plant

 

 

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

 

 

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1rule, but does not entitle the recipient to begin growing,
2processing, or selling cannabis or cannabis-infused products.
3    "Craft grower" means a facility operated by an organization
4or business that is licensed by the Department of Agriculture
5to cultivate, dry, cure, and package cannabis and perform other
6necessary activities to make cannabis available for sale at a
7dispensing organization or use at a processing organization. A
8craft grower may contain up to 5,000 square feet of canopy
9space on its premises for plants in the flowering state. The
10Department of Agriculture may authorize an increase or decrease
11of flowering stage cultivation space in increments of 3,000
12square feet by rule based on market need, craft grower
13capacity, and the licensee's history of compliance or
14noncompliance, with a maximum space of 14,000 square feet for
15cultivating plants in the flowering stage, which must be
16cultivated in all stages of growth in an enclosed and secure
17area. A craft grower may share premises with a processing
18organization or a dispensing organization, or both, provided
19each licensee stores currency and cannabis or cannabis-infused
20products in a separate secured vault to which the other
21licensee does not have access or all licensees sharing a vault
22share more than 50% of the same ownership.
23    "Craft grower agent" means a principal officer, board
24member, employee, or other agent of a craft grower who is 21
25years of age or older.
26    "Craft Grower Agent Identification Card" means a document

 

 

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1issued by the Department of Agriculture that identifies a
2person as a craft grower agent.
3    "Cultivation center" means a facility operated by an
4organization or business that is licensed by the Department of
5Agriculture to cultivate, process, transport (unless otherwise
6limited by this Act), and perform other necessary activities to
7provide cannabis and cannabis-infused products to cannabis
8business establishments.
9    "Cultivation center agent" means a principal officer,
10board member, employee, or other agent of a cultivation center
11who is 21 years of age or older.
12    "Cultivation Center Agent Identification Card" means a
13document issued by the Department of Agriculture that
14identifies a person as a cultivation center agent.
15    "Currency" means currency and coin of the United States.
16    "Dispensary" means a facility operated by a dispensing
17organization at which activities licensed by this Act may
18occur.
19    "Dispensing organization" means a facility operated by an
20organization or business that is licensed by the Department of
21Financial and Professional Regulation to acquire cannabis from
22a cultivation center, craft grower, processing organization,
23or another dispensary for the purpose of selling or dispensing
24cannabis, cannabis-infused products, cannabis seeds,
25paraphernalia, or related supplies under this Act to purchasers
26or to qualified registered medical cannabis patients and

 

 

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1caregivers. As used in this Act, "dispensing organization"
2includes a registered medical cannabis organization as defined
3in the Compassionate Use of Medical Cannabis Program Act or its
4successor Act that has obtained an Early Approval Adult Use
5Dispensing Organization License.
6    "Dispensing organization agent" means a principal officer,
7employee, or agent of a dispensing organization who is 21 years
8of age or older.
9    "Dispensing organization agent identification card" means
10a document issued by the Department of Financial and
11Professional Regulation that identifies a person as a
12dispensing organization agent.
13    "Disproportionately Impacted Area" means a census tract or
14comparable geographic area that satisfies the following
15criteria as determined by the Department of Commerce and
16Economic Opportunity, that:
17        (1) meets at least one of the following criteria:
18            (A) the area has a poverty rate of at least 20%
19        according to the latest federal decennial census; or
20            (B) 75% or more of the children in the area
21        participate in the federal free lunch program
22        according to reported statistics from the State Board
23        of Education; or
24            (C) at least 20% of the households in the area
25        receive assistance under the Supplemental Nutrition
26        Assistance Program; or

 

 

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1            (D) the area has an average unemployment rate, as
2        determined by the Illinois Department of Employment
3        Security, that is more than 120% of the national
4        unemployment average, as determined by the United
5        States Department of Labor, for a period of at least 2
6        consecutive calendar years preceding the date of the
7        application; and
8        (2) has high rates of arrest, conviction, and
9    incarceration related to the sale, possession, use,
10    cultivation, manufacture, or transport of cannabis.
11    "Early Approval Adult Use Cultivation Center License"
12means a license that permits a medical cannabis cultivation
13center licensed under the Compassionate Use of Medical Cannabis
14Program Act as of the effective date of this Act to begin
15cultivating, infusing, packaging, transporting (unless
16otherwise provided in this Act), processing and selling
17cannabis or cannabis-infused product to cannabis business
18establishments for resale to purchasers as permitted by this
19Act as of January 1, 2020.
20    "Early Approval Adult Use Dispensing Organization License"
21means a license that permits a medical cannabis dispensing
22organization licensed under the Compassionate Use of Medical
23Cannabis Program Act as of the effective date of this Act to
24begin selling cannabis or cannabis-infused product to
25purchasers as permitted by this Act as of January 1, 2020.
26    "Early Approval Adult Use Dispensing Organization at a

 

 

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1secondary site" means a license that permits a medical cannabis
2dispensing organization licensed under the Compassionate Use
3of Medical Cannabis Program Act as of the effective date of
4this Act to begin selling cannabis or cannabis-infused product
5to purchasers as permitted by this Act on January 1, 2020 at a
6different dispensary location from its existing registered
7medical dispensary location.
8    "Enclosed, locked facility" means a room, greenhouse,
9building, or other enclosed area equipped with locks or other
10security devices that permit access only by cannabis business
11establishment agents working for the licensed cannabis
12business establishment or acting pursuant to this Act to
13cultivate, process, store, or distribute cannabis.
14    "Enclosed, locked space" means a closet, room, greenhouse,
15building or other enclosed area equipped with locks or other
16security devices that permit access only by authorized
17individuals under this Act. "Enclosed, locked space" may
18include:
19        (1) a space within a residential building that (i) is
20    the primary residence of the individual cultivating 5 or
21    fewer cannabis plants that are more than 5 inches tall and
22    (ii) includes sleeping quarters and indoor plumbing. The
23    space must only be accessible by a key or code that is
24    different from any key or code that can be used to access
25    the residential building from the exterior; or
26        (2) a structure, such as a shed or greenhouse, that

 

 

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1    lies on the same plot of land as a residential building
2    that (i) includes sleeping quarters and indoor plumbing and
3    (ii) is used as a primary residence by the person
4    cultivating 5 or fewer cannabis plants that are more than 5
5    inches tall, such as a shed or greenhouse. The structure
6    must remain locked when it is unoccupied by people.
7    "Financial institution" has the same meaning as "financial
8organization" as defined in Section 1501 of the Illinois Income
9Tax Act, and also includes the holding companies, subsidiaries,
10and affiliates of such financial organizations.
11    "Flowering stage" means the stage of cultivation where and
12when a cannabis plant is cultivated to produce plant material
13for cannabis products. This includes mature plants as follows:
14        (1) if greater than 2 stigmas are visible at each
15    internode of the plant; or
16        (2) if the cannabis plant is in an area that has been
17    intentionally deprived of light for a period of time
18    intended to produce flower buds and induce maturation, from
19    the moment the light deprivation began through the
20    remainder of the marijuana plant growth cycle.
21    "Independent dispensing organization" means a licensed
22dispensing organization whose principal officers and owners
23are not principal officers of a licensed cultivation center and
24do not own more than 1% of a licensed cultivation center.
25    "Individual" means a natural person.
26    "Infuser organization" or "infuser" means a facility

 

 

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

 

 

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1    "Limited access area" means a room or other area under the
2control of a cannabis dispensing organization licensed under
3this Act and upon the licensed premises where cannabis sales
4occur with access limited to purchasers, dispensing
5organization owners and other dispensing organization agents,
6or service professionals conducting business with the
7dispensing organization, or, if sales to registered qualifying
8patients, caregivers, provisional patients, and Opioid
9Alternative Pilot Program participants licensed pursuant to
10the Compassionate Use of Medical Cannabis Program Act are also
11permitted at the dispensary, registered qualifying patients,
12caregivers, provisional patients, and Opioid Alternative Pilot
13Program participants.
14    "Member of an impacted family" means an individual who has
15a parent, legal guardian, child, spouse, or dependent, or was a
16dependent of an individual who, prior to the effective date of
17this Act, was arrested for, convicted of, or adjudicated
18delinquent for any offense that is eligible for expungement
19under this Act.
20    "Mother plant" means a cannabis plant that is cultivated or
21maintained for the purpose of generating clones, and that will
22not be used to produce plant material for sale to an infuser or
23dispensing organization.
24    "Ordinary public view" means within the sight line with
25normal visual range of a person, unassisted by visual aids,
26from a public street or sidewalk adjacent to real property, or

 

 

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1from within an adjacent property.
2    "Ownership and control" means ownership of at least 51% of
3the business, including corporate stock if a corporation, and
4control over the management and day-to-day operations of the
5business and an interest in the capital, assets, and profits
6and losses of the business proportionate to percentage of
7ownership.
8    "Person" means a natural individual, firm, partnership,
9association, joint stock company, joint venture, public or
10private corporation, limited liability company, or a receiver,
11executor, trustee, guardian, or other representative appointed
12by order of any court.
13    "Possession limit" means the amount of cannabis under
14Section 10-10 that may be possessed at any one time by a person
1521 years of age or older or who is a registered qualifying
16medical cannabis patient or caregiver under the Compassionate
17Use of Medical Cannabis Program Act.
18    "Principal officer" includes a cannabis business
19establishment applicant or licensed cannabis business
20establishment's board member, owner with more than 1% interest
21of the total cannabis business establishment or more than 5%
22interest of the total cannabis business establishment of a
23publicly traded company, president, vice president, secretary,
24treasurer, partner, officer, member, manager member, or person
25with a profit sharing, financial interest, or revenue sharing
26arrangement. The definition includes a person with authority to

 

 

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1control the cannabis business establishment, a person who
2assumes responsibility for the debts of the cannabis business
3establishment and who is further defined in this Act.
4    "Primary residence" means a dwelling where a person usually
5stays or stays more often than other locations. It may be
6determined by, without limitation, presence, tax filings;
7address on an Illinois driver's license, an Illinois
8Identification Card, or an Illinois Person with a Disability
9Identification Card; or voter registration. No person may have
10more than one primary residence.
11    "Processing organization" or "processor" means a facility
12operated by an organization or business that is licensed by the
13Department of Agriculture to either extract constituent
14chemicals or compounds to produce cannabis concentrate or
15incorporate cannabis or cannabis concentrate into a product
16formulation to produce a cannabis product.
17    "Processing organization agent" means a principal officer,
18board member, employee, or agent of a processing organization.
19    "Processing organization agent identification card" means
20a document issued by the Department of Agriculture that
21identifies a person as a processing organization agent.
22    "Purchaser" means a person 21 years of age or older who
23acquires cannabis for a valuable consideration. "Purchaser"
24does not include a cardholder under the Compassionate Use of
25Medical Cannabis Program Act.
26    "Qualified Social Equity Applicant" means a Social Equity

 

 

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

 

 

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1        (2) an applicant with at least 51% ownership and
2    control by one or more individuals who:
3            (i) have been arrested for, convicted of, or
4        adjudicated delinquent for any offense that is
5        eligible for expungement under this Act; or
6            (ii) is a member of an impacted family;
7        (3) for applicants with a minimum of 10 full-time
8    employees, an applicant with at least 51% of current
9    employees who:
10            (i) currently reside in a Disproportionately
11        Impacted Area; or
12            (ii) have been arrested for, convicted of, or
13        adjudicated delinquent for any offense that is
14        eligible for expungement under this Act or member of an
15        impacted family.
16    Nothing in this Act shall be construed to preempt or limit
17the duties of any employer under the Job Opportunities for
18Qualified Applicants Act. Nothing in this Act shall permit an
19employer to require an employee to disclose sealed or expunged
20offenses, unless otherwise required by law.
21    "Tincture" means a cannabis-infused solution, typically
22comprised of alcohol, glycerin, or vegetable oils, derived
23either directly from the cannabis plant or from a processed
24cannabis extract. A tincture is not an alcoholic liquor as
25defined in the Liquor Control Act of 1934. A tincture shall
26include a calibrated dropper or other similar device capable of

 

 

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

 

 

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1    the purpose of propagating clones and is never used to
2    produce cannabis.
3(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
4    (410 ILCS 705/20-30)
5    Sec. 20-30. Cultivation center requirements; prohibitions.
6    (a) The operating documents of a cultivation center shall
7include procedures for the oversight of the cultivation center
8a cannabis plant monitoring system including a physical
9inventory recorded weekly, accurate recordkeeping, and a
10staffing plan.
11    (b) A cultivation center shall implement a security plan
12reviewed by the Department of State Police that includes, but
13is not limited to: facility access controls, perimeter
14intrusion detection systems, personnel identification systems,
1524-hour surveillance system to monitor the interior and
16exterior of the cultivation center facility and accessibility
17to authorized law enforcement, the Department of Public Health
18where processing takes place, and the Department of Agriculture
19in real time.
20    (c) All cultivation of cannabis by a cultivation center
21must take place in an enclosed, locked facility at the physical
22address provided to the Department of Agriculture during the
23licensing process. The cultivation center location shall only
24be accessed by the agents working for the cultivation center,
25the Department of Agriculture staff performing inspections,

 

 

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1the Department of Public Health staff performing inspections,
2local and State law enforcement or other emergency personnel,
3contractors working on jobs unrelated to cannabis, such as
4installing or maintaining security devices or performing
5electrical wiring, transporting organization agents as
6provided in this Act, individuals in a mentoring or educational
7program approved by the State, or other individuals as provided
8by rule.
9    (d) A cultivation center may not sell or distribute any
10cannabis or cannabis-infused products to any person other than
11a dispensing organization, craft grower, infuser organization,
12transporter, or as otherwise authorized by rule. At least half
13of all cannabis and cannabis-infused products sold by a
14cultivation center must be sold to independent dispensing
15organizations.
16    (e) A cultivation center may not either directly or
17indirectly discriminate in price between different dispensing
18organizations, craft growers, or infuser organizations that
19are purchasing a like grade, strain, brand, and quality of
20cannabis or cannabis-infused product. Nothing in this
21subsection (e) prevents a cultivation centers from pricing
22cannabis differently based on differences in the cost of
23manufacturing or processing, the quantities sold, such as
24volume discounts, or the way the products are delivered.
25    (f) All cannabis harvested by a cultivation center and
26intended for distribution to a dispensing organization must be

 

 

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1entered into a data collection system, packaged and labeled
2under Section 55-21, and placed into a cannabis container for
3transport. All cannabis harvested by a cultivation center and
4intended for distribution to a craft grower or infuser
5organization must be packaged in a labeled cannabis container
6and entered into a data collection system before transport.
7    (g) Cultivation centers are subject to random inspections
8by the Department of Agriculture, the Department of Public
9Health, local safety or health inspectors, and the Department
10of State Police.
11    (h) A cultivation center agent shall notify local law
12enforcement, the Department of State Police, and the Department
13of Agriculture within 24 hours of the discovery of any loss or
14theft. Notification shall be made by phone or in person, or by
15written or electronic communication.
16    (i) A cultivation center shall comply with all State and
17any applicable federal rules and regulations regarding the use
18of pesticides on cannabis plants.
19    (j) No person or entity shall hold any legal, equitable,
20ownership, or beneficial interest, directly or indirectly, of
21more than 3 cultivation centers licensed under this Article.
22Further, no person or entity that is employed by, an agent of,
23has a contract to receive payment in any form from a
24cultivation center, is a principal officer of a cultivation
25center, or entity controlled by or affiliated with a principal
26officer of a cultivation shall hold any legal, equitable,

 

 

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1ownership, or beneficial interest, directly or indirectly, in a
2cultivation that would result in the person or entity owning or
3controlling in combination with any cultivation center,
4principal officer of a cultivation center, or entity controlled
5or affiliated with a principal officer of a cultivation center
6by which he, she, or it is employed, is an agent of, or
7participates in the management of, more than 3 cultivation
8center licenses.
9    (k) A cultivation center may not contain more than 210,000
10square feet of canopy space for plants in the flowering stage
11for cultivation of adult use cannabis as provided in this Act.
12    (l) A cultivation center may process cannabis, cannabis
13concentrates, and cannabis-infused products.
14    (m) Beginning July 1, 2020, a cultivation center shall not
15transport cannabis or cannabis-infused products to a craft
16grower, dispensing organization, infuser organization, or
17laboratory licensed under this Act, unless it has obtained a
18transporting organization license.
19    (n) It is unlawful for any person having a cultivation
20center license or any officer, associate, member,
21representative, or agent of such licensee to offer or deliver
22money, or anything else of value, directly or indirectly to any
23person having an Early Approval Adult Use Dispensing
24Organization License, a Conditional Adult Use Dispensing
25Organization License, an Adult Use Dispensing Organization
26License, or a medical cannabis dispensing organization license

 

 

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1issued under the Compassionate Use of Medical Cannabis Program
2Act, or to any person connected with or in any way
3representing, or to any member of the family of, such person
4holding an Early Approval Adult Use Dispensing Organization
5License, a Conditional Adult Use Dispensing Organization
6License, an Adult Use Dispensing Organization License, or a
7medical cannabis dispensing organization license issued under
8the Compassionate Use of Medical Cannabis Program Act, or to
9any stockholders in any corporation engaged in the retail sale
10of cannabis, or to any officer, manager, agent, or
11representative of the Early Approval Adult Use Dispensing
12Organization License, a Conditional Adult Use Dispensing
13Organization License, an Adult Use Dispensing Organization
14License, or a medical cannabis dispensing organization license
15issued under the Compassionate Use of Medical Cannabis Program
16Act to obtain preferential placement within the dispensing
17organization, including, without limitation, on shelves and in
18display cases where purchasers can view products, or on the
19dispensing organization's website.
20    (o) A cultivation center must comply with any other
21requirements or prohibitions set by administrative rule of the
22Department of Agriculture.
23(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)